RISE

a

our vision We aim to be a premium global building and infrastructure provider known for shaping townships and cities.

our mission We deliver building and infrastructure solutions that make a meaningful difference to our clients, our society, our stakeholders and ourselves.

our shared values integrity We are professionals who promise utmost reliability and responsibility in our conduct. insightful We are knowledge seekers who consider all perspectives before making informed decisions. intuitive We are visionaries who instinctively know and creatively adapt to our clients’ needs. collaborative We are team-players who integrate our individual abilities to achieve business excellence.

b

“RISE” is a continuing story of resilient growth. SURBANA has prevailed. It has thrived especially in adverse operating conditions.

This lends testimony to the stakeholders’ expectations of a strategic concern rooted in Singapore and capable of springboarding to the world. In so doing, it adds to Singapore as a preferred global city open to partnerships and synergistic progress.

contents Chairman’s Message 2 • Board of Directors 6 • Senior Management 10 • Our Global Presence 16 • Consultancy 18 • Township Development 32 • Fund Management 40 • Corporate Governance 44 • Human Resource 50 • Risk Governance Structure 52 • Corporate Social Responsibility 53 • Financial Statements 54

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chairman’s message

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Rising to the occasion In a year which saw the onset of a crippling recession, Surbana bucked the trend and achieved its best performance yet, capping six years of operations. This impressive achievement is not surprising given that FY08/09 also marks the end of our Master Services Agreement (MSA) with the Housing and Development Board (HDB).

With that chapter coming to a close, we have now entered our next phase of development where we will focus on our three core businesses — consultancy, township development and fund management.

To streamline and strengthen our consultancy business, the operations in Singapore, which primarily focused on HDB’s work, have now merged with that of the international division which has ventured into 24 countries and secured 367 projects amounting in total fees of S$322 million over the six year period. The challenge ahead is to marshal our resources and expertise to expand outside HDB’s sphere of activities.

Our township development projects in the People’s Republic of China covering the four initial cities of Chengdu, Wuxi, Xi’an and Shenyang now boast 52,000 dwelling units and other supporting facilities like retail and F&B outlets, kindergartens, parks, social and recreational facilities. We will also be building commercial malls, schools and even a hospital. This should place us in a unique position for further expansion and enable us to transfer our experience and knowhow in this aspect of property developmental work.

To further enhance our township development efforts, fund management has to be stepped up.

This is our newest business which we hope can be expanded in the years ahead as we gather our momentum and build on our track record.

As we prepare ourselves for the challenges that lie ahead, much needs to be done. Manpower has to be developed, nurtured and retained. Appropriate compensation packages have to be formulated to reward those who can contribute to the Group’s vision and mission. There is an urgent need to change the mindset from a local governmental entity to one that is highly commercial in a multicultural and multi-country setting. Both the corporatisation as well as the ownership transfer to Temasek were moves to achieve this intended goal.

I am pleased to report that for FY08/09, we had a turnover of about S$267 million. This is 21% higher than that of the previous year. Profit after tax peaked at about S$60 million which is close to 61% more than the preceding year. These are attractive performances but they were achieved when the MSA was in existence.

Having said that, I am pleased to report that revenue from international consultancy in FY 08/09 represented about 27% of our total consultancy revenue. For the Group as a whole, overseas revenue in FY08/09 was about 22% of our total revenue. Our target is to attain the figure of 50% when we celebrate our 10th anniversary in FY12/13.

“In a year which saw the onset of a crippling recession, Surbana bucked the trend and achieved its best performance yet, capping six years of operations.”

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While the quantitative figures are impressive, we also have accomplishments by winning major awards as follows: BCI Top 10 Award recipient • the award affirms Surbana’s standing as among the top 10 architecture firms designing the greatest volume of buildings in Singapore, designs that are also socially responsible.

Two FuturARC Prizes • Launched in 2007 by the BCI’s publication arm, FuturArc Journal, the competition has two objectives: first, to create a platform for talented individuals who are keen on environmental issues; second, to encourage the construction industry as a whole to move towards sustainable design.

Seven BCA 2009 Awards including the inaugural multi disciplinary award Built Environment Leadership Award (Gold Class) • The inaugural Built Environment Leadership Award recognises outstanding industry firms that have demonstrated excellence and leadership in shaping a safe, high quality, sustainable and friendly built environment in Singapore.

• Surbana International Consultants was among one of the top three multi-disciplinary consultants to win the award.

“...the evolving culture of excellence cements Surbana’s operational niches and drives us ahead.”

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Four wins in the inaugural Singapore Institute of Planners’ Awards • Three of our master planning projects won the `Best Overseas Planning Project Award’; the Al Salam City master plan was also awarded the `Best Urban Design Project’.

Four wins in the HDB Design Awards • Through the awards, HDB accords recognition to deserving projects for quality architectural designs. Surbana has been a regular winner since corporatisation.

We have also not forgotten our corporate social responsibility roles. We participated in various causes associated with the community and the environment. In June 2008, apart from a corporate donation to aid relief efforts in the earthquakeaffected Sichuan, our staff in Chengdu office also distributed food and aid to the families affected by the earthquake.

I mentioned that the evolving culture of excellence cements Surbana’s operational niches and drives us ahead. For this I owe my thanks to the management, my fellow directors, the shareholder and our partners for their guidance, patience and above all, trust.

I urge everyone in the Surbana family to indulge in a moment of reflection. Let us reflect on the great fortunes that Surbana has inherited, humongous responsibilities that it shoulders and the thunderous frontier that beckons our conquest.

Let this reflective moment be brief, for the road ahead is long. Our deliberations will need to ripen and our actions will need to be swift.

Lim Jit Poh Chairman

Sino-Singapore Tianjin Eco-city. The second joint project between Singapore and China since the Suzhou Industrial Park. Having master planned the Suzhou Industrial Park, Surbana Urban Planning Group (SUPG) is once again honoured to be involved in the master planning of this highly publicised project. Tianjin EcoCity will be a socially harmonious, environmentally friendly and resource-efficient city, a model for other cities in China.

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board of directors The Board of Surbana Corporation comprises a diverse mix of people, each specially selected for their ability to steer Surbana’s business forward. Accomplished professionals and business leaders, they proffer a spectrum of experience, energy and enthusiasm. The Board provides an independent oversight of the business and is involved in guiding the strategic decisions for the Group.

Standing from left to right: Liu Thai Ker, Susan Kong Yim Pui, Wong Heng Tew Sitting from left to right: Edmund Tie Nyuk Siong, Tow Heng Tan, Lim Jit Poh, Tan Thai Hong, Fong Heng Boo

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LIM JIT POH Chairman - Chairman of Executive Committee - Chairman of Establishment & Compensation Committee

LIU THAI KER Board Member - Member of Establishment & Compensation Committee

TAN THAI HONG Board Member - Member of Executive Committee

Lim Jit Poh joined the Board of Surbana Corp on 15 August 2005. He was appointed Deputy Chairman on 28 February 2006 and became Chairman on 1 April 2008.

Liu Thai Ker was with the Board since corporatisation on 1 July 2003. Mr Liu is a renowned architect-planner. Since 1992, he has been Director of RSP Architects Planners & Engineers (Pte) Ltd. He is the planning advisor to over a dozen major cities in China. He is also the Adjunct Professor of the Lee Kuan Yew School of Public Policy, National University of Singapore, as well as a member of several governmental bodies in Singapore.

Tan Thai Hong is the Group CEO of Surbana Corporation. He was appointed to the Board since corporatisation on 1 July 2003 as an Executive Director. He also sits on the Board of several companies with the Surbana Corp group.

Mr Lim brings with him a wealth of experience gained in his extensive illustrious career.

He is the Group Chairman of ComfortDelGro Corporation Limited, the world’s second largest land transport group and Ascott Residence Trust Management Limited, as well as a Director of several other listed companies. He is also a director of several unlisted companies under the ownership of the Singapore Labour Foundation.

Mr Lim, a former top civil servant and a Fulbright scholar, is a Trustee of the Singapore National Employers Federation and a Fellow Member of the Singapore Institute of Directors.

He was awarded the Public Administration Medal by the Government of Singapore in 1972 and three awards by the National Trades Union Congress, namely, Friend of Labour Award in 1986, Meritorious Service Award in 1990 and Distinguished Service Award in 2000. In 2006, he was one of the recipients of the Distinguished Science Alumni Award from the National University of Singapore.

Mr Liu was Chief Executive Officer of Singapore’s Housing & Development Board, 1969 to 1989. Under him, HDB completed over half a million dwelling units. In 1989, he became the Chief Executive Officer and Chief Planner of Urban Redevelopment Authority for which he spearheaded the major revision of the Singapore Concept Plan 1991. In the cultural arena, he served as the Chairman of the National Arts Council from 1996 to June 2005 and Singapore Tyler Print Institute since 2000.

Mr Tan started his career with the Housing & Development Board (HDB). HDB is Singapore’s public housing authority since 1960.

Prior to the corporatisation, Mr Tan was the Chief Contracts Manager of HDB. At Surbana, Mr Tan is responsible for the overall strategic and business directions of the Group and its subsidiaries to ensure optimal growth and expansion of the Group, and maximise returns on investment for all stakeholders.

He was also a recipient of several awards. They include the Gold Medal of the Singapore Institute of Architects in 2001 and the Medal of the City of Paris, France in 2001.

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board of directors TOW HENG TAN Board Member

WONG HENG TEW Board Member - Member of Executive Committee - Member of Audit Committee - Member of Establishment & Compensation Committee

EDMUND TIE NYUK SIONG Board Member - Member of Executive Committee

Tow Heng Tan was appointed to the Surbana Corp Board on 16 September 2004. He is the Chief Investment Officer in Temasek Holdings (Private) Limited.

He is also a Board Director of ComfortDelGro Corporation Limited and Keppel Corporation Limited.

Wong Heng Tew has been a Board Member since 16 September 2004. He joined Temasek Holdings in 1980. His portfolio included stewardship of the Temasek companies, direct investments, investments in private equity funds, mergers and acquisitions, privatisations, divestments, corporate governance and human resources. Before his retirement in April 2008, he was Managing Director (Investments), and concurrently the Chief Representative of Temasek Holdings in Vietnam.

Edmund Tie was appointed to the Board on 15 August 2005. He is the Executive Chairman of DTZ Debenham Tie Leung (SEA) Pte Ltd and Vice Chairman of DTZ Asia Pacific. Mr Tie also holds directorships in several companies including New Horizon Holdings Pte Ltd, Ayarapuri Company Limited and related companies of DTZ. He is also a Board Member of LaSalle Foundation, The Philippine Bayanihan Society (Singapore) and Vice Chairman of Community Chest, National Council of Social Service.

Mr Tow started his career with the then Coopers & Lybrand. He was later an investment banker with Schroders Singapore and Managing Director of Lum Chang Securities. He was Senior Director of DBS Vickers Securities, after Lum Chang Securities was folded into Vickers Ballas, which then merged with DBS Securities to form DBS Vickers.

Mr Tow is a Fellow of the Association of Chartered Certified Accountants (UK), a Fellow of the Chartered Institute of Management Accountants (UK) and is a member of the Institute of Certified Public Accountants of Singapore.

Mr Wong is now Advisory Director for Temasek Holdings.

His other directorships include Certis Cisco Security Pte Ltd, Olam International Limited, Orchard Energy Pte Ltd, HOPU Management Co. Ltd, NTUC Fairprice and Vietnam Growth Fund Limited.

Mr Wong graduated from the University of Singapore in 1975 with a degree in Engineering (Industrial & Systems). He attended the Program for Management Development at Harvard Business School in 1989.

Mr Tie has extensive experience in real estate consultancy. He is regarded as one of Asia’s leading property consultants.

He established Edmund Tie & Company in May 1995 with 12 founding partners and successfully expanded it to Southeast Asia five years later. He was also instrumental in forging the resultant new global entity DTZ Debenham Tie Leung in 2000.

Mr Tie was awarded the Public Service Medal (PBM) in 2001 and Public Service Star Award (BBM) in 2006 in recognition of his extensive social and community services.

Mr Tie who has been active in the local arts scene as well, has received several Arts Supporter Award from the National Arts Council.

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SUSAN KONG YIM PUI Board Member - Member of Executive Committee - Member of Audit Committee

FONG HENG BOO Board Member - Chairman of Audit Committee

Susan Kong joined the Board of Surbana Corp on 15 August 2005.

Fong Heng Boo joined the Board on 6 May 2008. He is presently the Director (Special Duties) with the Singapore Totalisator Board.

Currently, he is an independent director of Colex Holdings Limited.

She is a Director at Stamford Law Corporation and heads its Banking & Finance, and Corporate Real Estate Practice Groups. Ms Kong has extensive working experience in banking & finance, corporate finance, foreign investments particularly in China, Indonesia and Thailand; mergers & acquisitions, restructuring and real estate investments. She was listed in several credible publications as a leading lawyer in Banking.

Ms Kong is also a director of the Singapore Tyler Print Institute.

An Accountant by profession, Mr Fong started his career with the Auditor-General’s Office and left in 1993 as the Assistant Auditor-General. He was also General Manager (Corporate Development) of a listed company in Singapore as well as the Chief Financial Officer of a listed company in Australia. His other professional experience included membership of Audit Committees of Statutory Boards and Advisory Committees of the School of Accountancy of Nanyang Technological University and Ngee Ann Polytechnic.

Mr Fong is a Fellow of the Institute of Certified Public Accountants of Singapore (ICPAS). He was a council member of ICPAS and he was awarded a Silver Medal by the Institute in 1999.

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senior management

From left to right:

TAN KIANG HWEE Chief Executive Officer Surbana Land

3

CHUA KENG CHAY Chief Executive Officer Surbana International Consultants Regional Director China

4

1

TAN THAI HONG Group Chief Executive Officer Surbana Corporation

TONY TAN KENG JOO Senior Advisor 5

LOW SENG POH Senior Advisor 6

2

10

WONG HENG TEW Executive Director Surbana Corporation

corporate directors

From left to right:

JOHN CHAN YORK LEE Senior Director Human Resource

3

CHONG-QUEK LEE CHOO Director Human Resource

4

1

2

CHIA CHAY YEOW Group Chief Financial Officer Finance & Legal NG BENG ENG Company Secretary/Director Corporate Planning & Branding

5

PHUA SEOW ANN Chief Information Officer Information Technology Acting Director (Corporate Research and Risk Management)

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senior management

business heads (consultancy)

From left to right:

KOH BENG THONG Executive Vice President Development Projects 1

TITUS M ALEXANDER Executive Vice President Estate Renewal 2

3

CHUA KENG CHAY Chief Executive Officer Surbana International Consultants Regional Director China

LOH YAN HUI Executive Vice President Reclamation and Infrastructure 4

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SOH WAH MENG Executive Director Singapore 5

JEFFREY HO Executive Vice President Surbana Urban Planning Group

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senior management

technical/regional directors (consultancy)

From left to right:

LOW CHER EK Director Architecture

Not in picture:

ALFRED NEO Director Mechanical & Electrical Engineering

1

4

CHUA CHIOW CHYE Director Civil & Structural Engineering

5

LIM CHONG SIT Director Precast Technology

6

2

MICHAEL VONG YEE YAN Regional Director South East Asia

STEPHEN HO Regional Director Middle East/Africa/Latin America CHRISTOPHER YAP Director Cost and Contracts Management

3

CHRISTOPHER JOHN SHUGG Regional Director South Asia

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senior management

related business (consultancy)

From left to right: 1

GAN PENG HONG Managing Director Surbana Construction Resources

3

DESMOND WONG HONG KIONG Managing Director Surbana Facilities Management

4

2

14

HAROLD HO TECK LIM Managing Director Surbana Site Supervisors LOUIS TAY HENG HOCK Managing Director Surbana Technologies

TAN JOO CHUAH Managing Director SIPM Consultants 5

senior management township development/ fund management

From left to right: 1

TEO KIAN GUAN Senior Director Fund Management

4

HENG HUA JEE Senior Vice President (Project Management) Surbana Land

5

2

LIM BUEY SHYAN Senior Vice President (Property Investments) Surbana Land

TAN KIANG HWEE Chief Executive Officer Surbana Land PUAH TZE SHYANG Senior Vice President (Marketing) Surbana Land

KENNETH LIM KIAN SWEE Senior Vice President (Property Investments) Surbana Land 6

CHONG CHIN QUEE Director Fund Management 7

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our global presence To support our business, we have grown from one Singapore office in 2003, to 17 offices in key cities across Asia and Middle East.

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Shenyang Tianjin

Xi’an

Doha Abu Dhabi

Chengdu

Dubai

Wuxi Wuhan

Shanghai

Kolkata Hanoi

Hyderabad Chennai

Ho Chi Minh City

Kuala Lumpur SINGAPORE Jakarta

Headquarters Overseas Offices (17)

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CONSULTANCY OPERATIONS REVIEW

excellence ground up Leaving no stones unturned is how we uncover best value for our partners and clients.

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OPERATIONS REVIEW

SINGAPORE MARKET

Since the 1960s, we have been at the forefront of redefining affordable, high quality, high density housing and town environments for the world.

Our experiences have hardwired us with some key principles in how we approach our work. We seek to:

HDB Projects

• Make a meaningful difference to our clients, the community and the environment.

• Embrace a challenge no matter how daunting.

• Nurture lateral thinking, ground up experience and constant improvement.

• Strive for legacy solutions, learning from our nation building experience to make every solution an enduring one.

Proven Resilience We believe these principles have allowed us to remain resilient and relevant during the uncertain economic backdrop marked by eroded business confidence. Inevitably, not all our businesses emerged unscathed, but on the whole, the Group stood its ground and rose against the recession.

“The Group stood its ground and rose against the recession.”

channeling experience into new solutions Surbana sustained its fine support of HDB’s work to provide Singaporeans with better quality public housing. Revenue from new developments for the full suite of architectural, engineering design services and contracts management increased by 26% year-on-year to S$61 million. These projects were spread across the towns of Bedok, Jurong West, Punggol and Sengkang.

Upgrading of older estates continued at a steady pace, achieving revenue of $42 million or 18% increase year-on-year. The Lift Upgrading Programme (LUP) scheme proved challenging. It reached its peak of 160 precincts on the ground during the year. Yet the construction industry was facing a shortage, with resources devoted to the hike in projects from 2007’s private property boom on top of major projects such as the Integrated Resorts. Nevertheless, Surbana remained committed to delivering. The LUP projects saw no major interruption and were well-received by the client.

Surbana’s unique concept for Punggol’s waterway landscape topped the Punggol Waterway Landscape Masterplan Design Competition. We were awarded full suite consultancy for the region’s first man-made waterway, which runs for 4.2km across the Punggol precinct.

Tivela, Sengkang These four 16-storey point blocks are located near the MRT station and shopping malls, giving residents convenience and easy access to leisure amenitiesy.

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Atrina, Sengkang Communal facilities such as the children’s playground are situated on the landscape decks within residential blocks to support interaction and bonding among residents.

Straits Vista, Woodlands In line with the concept of Woodlands being a forest town, this tree-inspired residential development will boast 382 dwelling units when completed.

“In spite of the construction industry shortage, Surbana remained committed to delivering.”

Customer feedback Surbana receives feedback twice a year from HDB. This constant assessment serves as a useful check and balance on our service delivery. In FY08/09, Surbana was rewarded for its quality work with a “very good” rating for all our functional areas.

Winners at the HDB Design Award 2008 Clementi Meadows (MUP Batch 18), Singapore Based on geometries and ellipsoidal motifs, the dynamic design is softened by lush greenery and landscaped gardens.

Edgedale Green (Punggol East C31), Singapore Symmetric, clean geometric lines govern the building’s design while amenities are placed conveniently at the heart of the precinct.

Montreal Green (Sembawang N5 Neighbourhood Park), Singapore Inspired by the natural terrain, this precinct is marked by tropical plants, manmade dry streams and timber trails.

Central Horizon (Toa Payoh RC34), Singapore With barrierfree accessibility and a host of communal facilities, what makes this precinct distinctive is the curvilinear sky garden.

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WINNING PROJECTS BCA Awards 2009 CENTRAL HORIZON BCA Universal Design Award for the Built Environment (Silver) The unique feature of Central Horizon is the sky garden built above the HDB residential blocks and multi-storey carpark to optimise open spaces and to add variety and interest to the built environment with lush greenery.

SENGKANG N2 C36 (ASPELLA) BCA Universal Design Award for the Built Environment (Bronze) The seamless connection for various amenities and facilities makes for barrier-free accessibility , while the pro-family design fosters interaction and bonding for families across generations.

BEDOK RESERVOIR GARDEN BCA Universal Design Award for the Built Environment (Bronze) A new central plaza space with communal facilities, a multi-storey carpark and roof garden made accessible by ramps help to revitalise the existing surface carpark into a vibrant space for the community.

BISHOPGATE RESIDENCES BCA Green Mark Platinum Award (M&E Services) Technology and sustainable design are harmoniously integrated to minimise energy consumption and to improve the indoor condition of the apartments.

MARINA SOUTH PIER BCA Design & Engineering Safety Excellence Award (Merit) BCA Construction Excellence Award (Principal Consultant) A highly artistic and complex wavelike roof structure creates a triple volume pavilion space, supported on a highly modular and repetitive space truss system.

Modularisation, Prefabrication and Precast Technology were used to increase buildability, efficiency and site safety.

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Built Environment Leadership Award (Gold Class) Surbana won the inaugural multi-disciplinary award for having demonstrated excellence and leadership in shaping a safe, high quality, sustainable and friendly built environment in Singapore.

BCI Asia Top 10 Awards The BCI Asia Top 10 Awards are among the most coveted prizes in architecture in Asia. It recognises market leaders in architecture designing the greatest volume of buildings. Director (Architecture) Low Cher Ek received the BCI Asia Award for Surbana on 29 May 2009.

FuturArc Prize 2009 Professional category – Second Prize Concept design of a future community centre - Land ARK Conceptual design that aims to transform a defunct building into a vibrant, eco-friendly community landmark that stands as an emblem of innovative green building design.

Professional category – Citation Concept design of an “Office in the park” – “Plug+Play” Office@ Puri Botanical Design of an office development in an urban park promotes sustainability and increase public awareness on environmental issues.

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Proposal for tertiary institute, Singapore The use of vibrant colors in the design of the sports complex enlivens the building facade and gives it a distinct presence within the campus.

Non-HDB Projects

standing in the face of new challenges Apart from HDB projects, Surbana has been competing for other public sector and private sector projects since 2007. In the last FY, a laudable 81 non-HDB projects worth around $32.5 million were secured and eleven of these projects have since been completed.

Several projects clinched last year engaged our full-suite of consultancy services. These ranged from a commercial complex at Dawson Place, a 5-storey private residential development, a sports hall and even a Centre for Aquatic Science Research. Such diversity in project scope is clear evidence that our inherited holistic township knowledge continues to be a competitive advantage.

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Our experience thus far has been challenging as these non-HDB projects bring with them a new set of demands and obstacles. However, as we consistently deliver meaningful value to our projects, we believe that we will win confidence and secure clients’ loyalty. This focus will put us in good stead especially with the completion of the master services agreement with HDB in July 2009.

“However, as we consistently deliver meaningful value to our projects, we believe that we will win confidence and secure clients’ loyalty.”

INTERNATIONAL MARKET Reaching Beyond The international consultancy business completed 17 projects during the financial year and has 131 ongoing projects spread across 8 countries.

The Vietnam market witnessed strong growth, with several new projects clinched. Surbana’s excellent service delivery was recognised with a mall and hospital project from an existing client, Citra Westlake. We also secured a large residential project right in the heart of Ho Chi Minh’s CBD district 1, for which the full suite of services will be rendered. The last FY also marked our first hotel project in Hanoi.

Sitting on a 2.3ha site, the luxurious Phung Khoang 5-star hotel will boast 350 rooms.

Surbana continued to grow its China presence with three prominent projects clinched. These included the design of a unique commercial village in Kunming, Yunnan province, as well as the design of a 1.4 ha mixed development in Xiangfan, the second largest city in Hubei province. We also proposed a conceptual design for an office development in Chongqing City where we experimented with the concept of the loft office space in a dense urban setting.

“Surbana continued to grow its overseas presence, particularly in China and Vietnam.”

The global economic meltdown has affected some of our projects in the overseas markets.

But the management team remained focused on the strategic directions for the newly integrated Surbana International Consultants (SIC). Short term plans have already been made, with some effected, to bring the company closer to its vision of being a premium international consultant.

The broad strategies include: • Strengthen and expand market share across all market sectors, local and overseas.

• Hone competencies, recruit and retain talents for the long-term.

• Integrate operations of Business Development (BD) and technical teams to improve effectiveness of BD efforts.

• Align actual manpower to business operating needs.

• Develop sustainable planning/design capabilities, technology and products.

• Implement new branding initiative to make actionable brand value and brand promise.

As these plans roll out and take form, it will ready SIC for the expected upturn in the global economy.

Du Jiang Yan Jiang He Residential Development, Sichuan Located within the UNESCO site of Qing Cheng mountain, this residential development harnesses the water resources from the nearby drainage to create an eco-environment. A terraced layout helps to facilitate ventilation and encourage multi functionalities.

Bis 1 Kep, Ho Chin Minh City Inspired by the lights of the city, flowing waters from the adjacent waterway and the surrounding greens, this 36-storey mixed development aims to set a new standard in living, working and relaxation.

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SPECIALISTS BUSINESSES Land Reclamation and Infrastructure championing maritime and coastal engineering Land Reclamation took a greater stake in the Group’s business, reaping total revenue of $19 million in FY08/09. This was approximately 18% higher than the previous year.

On the whole, ongoing projects saw good progress. Details of these projects are as follows: • Pulau Tekong Reclamation: Land reclaimed will be for long-term urban developments.

Surbana’s work for this project was rewarded with a Singapore Ministry of Transport Minister’s Innovation Award 2008 (Distinguished Award).

• Pasir Panjang Terminal Phases 3 & 4: Land reclaimed enables the expansion of the existing Pasir Panjang Terminal to increase capacity for container berths and cater for future mega container ships.

• Punggol Waterway: Appointed developer of the Punggol Waterway and related major infrastructures. The waterway is integral to the new Punggol 21 Plus, the face of Singapore in the future. Construction will take 3 to 4 years due to the extensive engineering works involved.

• Pulau Muara Besar, Brunei: Together with its partner, GMAPS, Surbana will transform this area into a port based trading hub and industrial area.

Our land reclamation works have always met the varying standards from the different government agencies, the Singapore Government as well as international experts. For its fine contribution to Singapore’s land reclamation, Surbana received the Singapore Ministry of National Development Minister’s Award (Team).

We remained at the forefront of maritime and coastal engineering innovation, pioneering several developments. One project featured the eco-friendly use of alternative materials such as construction waste soils in land reclamation, thus reducing reliance on sand fill and saved on costs.

Punggol Waterway The Punggol Waterway allows a range of recreational activities to take place along both sides of the waterway promenade, as well as serves as an interesting avenue for learning the history and heritage of Punggol town.

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Zayed Global City, Abu Dhabi A new city that embraces global dynamism and urban vibrancy. This project bagged the award for Best Overseas Planning Project at the inaugural Singapore Institute of Planners (SIP) Planning Awards 2008.

The reclamation team is looking forward to embarking on its latest project, Singapore’s first Aquatic Science Centre in Clementi. Surbana joined forces with Singapore-Delft Water Alliance to secure the contract. Led by Reclamation and Infrastructure, with concept design by Architecture and inputs from M & E Engineering, this project not only builds our knowledge in urban waterways but also signals an inroad into PUB’s water-related industry.

“We remained at the forefront of maritime and coastal engineering innovation, pioneering several developments.”

Surbana Urban Planning Group drawing up plans for a robust future

The last FY saw market opportunities remain positive in Middle East, Vietnam and China.

However due to some slowdown in the progress of some projects, SUPG’s revenue of $9.4 million fell slightly short of its targeted $10.4 million.

First presented to the Qatari Government in March 2008, the master plans of Al Khor and Al Wakra, two municipalities of Qatar, were subsequently launched at the Doha Exhibition Centre in May 2008. The grand occasion was graced by the Minister of Municipal Affairs and Agriculture, HE Sheikh Abdul Rahman bin Khalifa Al Thani.

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TDIC, Abu Dhabi The extensive use of Energy and Environmental initiatives in the design concept of the TDIC HQ positions it as the benchmark for sustainable design in Abu Dhabi and other Middle Eastern states.

Strategically located near to Qatar’s industrial hubs, both municipalities are poised to flourish into vibrant cities devoted to the arts, heritage, fishing and marina. Upon completion, the two municipalities will house a population of 170,000 and 600,000 for Al Khor (1552 sq km) and Al Wakra (2483 sq km) respectively. This Qatar experience has sharpened our proficiency in G-to-G projects, which will be in future pitches and projects.

SUPG recognises that master plans have a compounding impact on the long-term. As responsible master planners, SUPG is determined to deliver planning solutions that catalyse planning challenges into a livable future.

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Surbana Technologies

holistic approaches to sustainable innovation Surbana Technologies achieved a turnover of $18 million, a high 52% increase compared to the previous financial year. The team’s tested business approach in providing innovative yet relevant solutions continues to enhance value and asset protection for its clients. FY08/09 was punctuated by a more diversified project scope particularly for overseas ventures, and a greater commitment towards sustainability.

In October 2008, our Estate Enterprise Resource Planning (E2RP) System was given a Merit Award

by Singapore’s Infocom Technology Federation (SiTF). Surbana Technologies also represented Singapore in the Asia Pacific Infocom Technology Award (APICTA) Competition, held in Jakarta in November 2008.

Another milestone for the year was clinching the TDIC’s Saadiyat Island Approval Process project.

Other notable jobs secured include Logistic & Distribution Hub in Maldives, Al Qudra Riveria and TDIC HQ in Abu Dhabi and project feasibility study of AZ Township in Vietnam, as well as a system design for PSG Asia CMMS in Singapore.

“Our holistic and integrated approach towards sustainable design stood out from other international players.”

Green Consultancy Surbana Technologies also drives Surbana’s green design and sustainability efforts. For the FY, about 80% of our new design projects have been designed and earmarked for official Green certification. In the 2009 BCA awards, 15 of our projects have been given the BCA Green Mark (for Buildings) Award.

In June 2008, Surbana’s Tourism Development & Investment Company project overcame stiff competition to garner the ‘Best Commercial/ Office Project’ Award at the Cityscape Abu Dhabi awards. Our holistic and integrated approach towards sustainable design stood out from other international players.

Going forward, Surbana Technologies will reinforce its position amongst Singapore Town Councils.

More importantly, it will ride on green initiatives and sustainable design to become the choice technology solutions provider in the construction/ real estate arena.

Project Management

keeping up appearances and performance SIPM successfully delivered 60 major HDB projects last year and continued to stamp its quality contribution visibly on our clients’ projects. The business had revenue of $20 million, a 7% increase year-on-year. SIPM’s reliable and quality distinction honed from decades of practical experience has propelled SIPM ahead of other project management consultants. The company secured the *SCAPE at Orchard Link, a 5-storey MCYS building for youth activities, which will hold the 3-on-3 basketball games at the 2010 Youth Olympics.

Other projects clinched include the Indoor Sports Halls project involving the construction of 22 school sports halls, several schools and a hostel.

To further raise the profile of this young company, SIPM participated in various events organised by the industry and was represented in professional bodies as well as international conferences such as PM Asia and PMI Global Conference (Asia Pacific).

The challenge ahead will be to instil in all staff SIPM’s core quality values, ensuring its relevance in local and overseas projects and to continually push its value-edge above the competition.

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Surbana Site Supervisors

Surbana Facilities Management

Surbana Site Supervisors, as quality controllers of construction, are indispensable. During the year of review, Surbana Site Supervisors managed the deployment of some 700 plus site supervisors to various public housing, upgrading, commercial, industrial, infrastructure and private sector projects, ensuring that construction on each site is carried out according to specifications. It contributed $47 million to the Group’s revenue, a 28% jump from the previous year.

Surbana Facilities Management’s (FM) mix of projects included three HDB shopping complexes at Admiralty Place, Tampines Central Community Complex and Sembawang Mart as well as a threeyear integrated facilities management contract with James Cook University. We also penetrated the bio-medical industry, securing an integrated facilities management contract with Duke-NUS Graduate Medical School. Overseas, we are now in Mauritius providing facilities and property management consultancy services to the Phoenix Les Halle shopping mall.

safeguarding quality and safety

To guard against stagnancy, the site supervisors hone their technical proficiency through training.

They are also exposed to projects differing in type and complexity. These measures ensure their relevancy and ability to contribute to projects, local and overseas.

The immediate future will see the company actively market its services to private consultants, developers, statutory and government bodies through various collaboration efforts.

finding a place in the overseas market

With its ISO 9001:2000 certification for facilities management of commercial buildings as well ISO 14000 certification for Environment Management System (EMS), FM has the credentials to now offer a spectrum of audit and appraisal solutions, energy conservation, environmental and asset management. This expanded repertoire of services will no doubt help build up our repute as a frontrunning integrated facilities management agency.

Surbana Construction Resources manages the stockpiling and release of national strategic construction materials to meet the emergency needs of the construction industry.

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Land Survey

breaking into specialised areas For the year in review, Land Survey stepped out of its current Singapore scope to venture further into the overseas market. The successful completion of the Qatar National Survey and Mapping Manual for the Qatar government, was a useful referral for us. The Centre for Information Organisation in Bahrain has since engaged us to improve their National Spatial Data Infrastructure. This is clearly a breakthrough into the specialised area of spatial data management.

Breaking new ground: Digital image of hydrographic survey of underwater terrain.

Surbana Construction Resources managing and meting out the best

The hike in HDB Building Programme in FY08/09 saw a greater demand of resources from projects on the ground. With professionalism and diligence, Surbana Construction Resources kept up with this increase in demand without impeding on schedule or quality.

We will persist in enhancing our service to HDB as well as exploit other business opportunities.

Notable achievements: • Secured thirteen supply contracts totalling $167.2 million during the year.

cxSurbana Pte Ltd

serving as a platform for exchange cxSurbana provides an on-line platform for different members of a construction project to evaluate monthly progress payment claims. In addition, we conduct high-value auctions to create value for both procurements and sales.

For the year in review, total revenue rose by 4%. Our progress payment modules and tender duplication services supported 90 project sites at anytime. Through our auction engine, $51million worth of cement supply and $63 million worth of petrol station sites were transacted. This is indeed a remarkable achievement for a sevenman company. cxSurbana will look to growth in its auction services and expand its non-traditional client base.

• Attained ISO 14000 re-certification in minimising environmental impact at HDB’s materials stockyards.

• Provided consultancy services to HDB for national strategic stockpiling as well as the relocation of aggregate strategic stockpile via direct appointment.

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TOWNSHIP DEVELOPMENT OPERATIONS REVIEW

up where we belong Transcending time and space, we roll out townships for people and posterity.

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Township Development Sales Chart No.of units 60,000 49,297 50,000

51,659

45,283 41,375

40,000

35,787 28,603

30,000

23,656

20,000

15,908

10,000 970

2,446

2005

2006

3,962

5,001

2007

2008

6,639

9,487

0 2009

2010

2011

2012

2013

Project 2005 2006 2007 2008 1Q 2009

Chengdu 970 1,476 788 681 189

Wuxi 728 270 180

Xi’an 88 -

Total 970 1,476 1,516 1,039 369

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2014

2015

2016

2017

2018

Total Launched

Total Sold

Percentage Sold

4,104 1,178 88 5,370

3,371 775 23 4,169

82% 66% 26% 78%

The Botanica, Chengdu A joint development with Keppel Land, our maiden township stretches across 42-ha and will yield about 9,500 residential units.

18 February 2009 marked the official MOU signing for Yandao Jie Primary School, which will certainly appeal to younger homebuyers.

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Central Park City, Wuxi Sited on a 35-ha land, Central Park City steps up our township development efforts, yielding about 5,000 homes for upper-middle income earners.

Central Park City, Wuxi

pacing operations for robust growth Another JV project with Keppel Land, Central Park City steps up our township development efforts in Chinese cities with good growth potential. It will be completed over four phases and eventually yield about 5,000 homes for upper-middle income earners. The 35-ha site is located within the Wuxi’s Binhu Economic Development District, about 15km from the city centre.

Central Park City has launched 1,178 units under Phase 1, with 66% take-up rate by end March 2009. Phase 2, comprising close to 3,000 units, has been divided into two sub-phases to better pace construction and sale to match demand.

The Wuxi market is largely driven by local endusers with strong purchasing power. Its economy is expected to remain robust, fuelled by foreign

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investment and strong domestic consumption.

Various preferential policies and supportive measures introduced by the Wuxi government at the end of 2008 have already led to a steady rise in transactions. These include a further relaxation of the provident fund regulations on second time purchases, a reduction in deed taxes and a waiver of sales tax for certain owner-occupied apartments and stamp duties.

Good connectivity and convenience are key selling points of Central Park City. Supporting amenities as well as commercial and office buildings are strategically placed for maximum synergy. Based on the Municipal Government’s development plan, the future sub-city centre and the municipal government office will be sited next to this township. This will undoubtedly bring about more commercial, recreational and leisure activities, which will greatly enhance CPC’s property value.

A proposed rapid transit station at the site’s southeastern end will further enhance the appeal of this township and viability of the commercial mall development.

La Botanica, Xi’an Playing up the site’s river frontage and naturally lush landscape, the township’s Chinese courtyard concept features residential clusters to bring the community together.

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Lake Botanica, Shenyang

giving us better traction in the marketplace as we target a wider consumer profile.

Strategically situated between the city centre and the Western Industrial Corridor, this 58-ha residential township is master planned around an existing 25-ha lake. The entire township will be developed over seven phases and will eventually be home to 12,700 households. It is also approximately 1.5km away from a future subway station which greatly enhances its accessibility.

To bolster the property market, the Shenyang government has also stepped in with various incentives. These include relaxed regulations on pledging of existing properties, the flexibility to use loans to make down payments for the purchase of new properties, the use of provident funds to purchase second properties if existing provident loan had been paid up, and reducing management fees by 25%. With these in place, buying activity within the local property scene will no doubt increase.

steady start to a strong finish

Careful to match supply to demand, rollout of Phase 1 will be paced accordingly as Lake Botanica makes its maiden entry later in 2009. The initial sale slated for August 2009 targets locals working and staying in the vicinity. Eventually, we will also reach out to those staying nearer to the city centre as the project offers a tranquil peaceful environment away from the hustle and bustle of city-living. Progress in this initial phase is key to

The fast-growing Shenyang Western Industrial Corridor covers a total planned area of 850 sq km and includes the existing Shenyang Economic and Technological Development Zone. There is a shortage of quality yet affordable residences in the vicinity and Lake Botanica will readily meet the demand from the surrounding working community.

Lake Botanica, Shenyang Strategically situated between the city centre and the Western Industrial Corridor, this 58-ha residential township is master planned around an existing 25-ha lake.

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VVIP guests at the opening of our sales gallery in Lake Botanica, Shenyang. Tian Jia, Deputy Secretary General of the Shenyang Municipal Government and Chen Jia Biao, Deputy District Party Secretary of Yuhong District with Chairman Lim Jit Poh, Group CEO Tan Thai Hong and CEO Surbana Land Tan Kiang Hwee.

Gearing up for Future Growth Township development is a long haul business.

To capitalise on the upswing when it comes and sustain business growth for the longer term, we will adopt the following key thrusts: • Leverage our legacy and strengths in planning and designing integrated townships to create meaningful value for residents.

• Develop strategic partnership with local governments and JVs with creditable partners for long-term benefits.

• Ensure good quality and successful delivery of our projects.

• Look out for opportunities to secure good land deals in China as well as in other emerging markets.

• Aim to have a consistent flow of workload and long-term revenue stream.

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FUND MANAGEMENT OPERATIONS REVIEW

realm of leverage

This is where we tap financial edge and industry insights to stay ahead of the curve.

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During the period in review, the fund remained as US$250 million under management, unchanged from the previous year-end. No new investments were made to contain exposure and preserve strength. Investments (excluding commitments) in the two existing projects -- Xi’an Township Project (La Botanica) and Shenyang Township Project (Lake Botanica) -- totalled US$134 million, approximately 54% of the Fund’s final commitments. An estimated US$27 million was injected into the two projects in the year.

Against the sales slowdown, several major developers were facing a funding squeeze. Many lowered selling prices to stimulate sales, while some were even forced to sell stakes in existing projects to raise capital. We took stock of the current challenges. A comprehensive review of the sales and marketing strategy revealed a need to continue building and keep the sales momentum going. The gloom of recession was a chance to showcase our collective strengths and entrench our brand in the competitive field.

The Chinese Government has vested interest in the property market as it contributes to 15% of China’s GDP and is a crucial source of revenue. For the near future, the Chinese Government’s progressive policies will continue to guide the economy on a sustained growth trajectory. Demand and supply policies share a common objective - to improve affordability for homebuyers.

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China’s property market is set to revive. Although prices are still falling, results have confirmed that transaction volume had grown by a median level of 104% year on year. The developmental projects are well-positioned to gain from the upturn, with demand expected to exceed supply. After all, China’s urbanisation rate at 45% promises tremendous real estate opportunities.

While these active and close portfolio management of the existing projects will no doubt deliver value to our shareholders, efforts are being made to seek growth outside of the China market.

Due diligence on preliminary leads have been conducted in Vietnam. This is a plausible new market for the business.

“The gloom of recession was a chance to showcase our collective strengths and entrench our brand in the competitive field.“

La Botanica, Xi’an Construction for Phase 1A is set to complete in January 2010 as originally scheduled.

Lake Botanica, Shenyang Exterior view of Sales Gallery. Construction for Phase 1A which started in April 2009 is progressing as scheduled.

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corporate governance The Board of Surbana Corporation comprises a diverse mix of people, each specially selected for their ability to steer Surbana’s business forward. Accomplished professionals and business leaders, they proffer a spectrum of experience, energy and enthusiasm. The Board provides an independent oversight of the business and is involved in guiding the strategic decisions for the Group.

The Board and Management of Surbana Corporation believe that the practice of good corporate governance is essential for the sustainability of the Group’s businesses and performance. Although the Group is not listed in any securities exchange, it operates in accordance with the revised Code of Corporate Governance 2005 (“Code”) in the discharge of its responsibilities.

Set out below is our corporate governance policies and practices with specific reference to the Code.

Board’s Conduct of its Affairs Principle 1: Effective Board to lead and control the company Our Policy and Practices The Board of Directors has oversight for the overall management and corporate governance of the Group. The principal functions of the Board are: • To decide on matters in relation to the Group’s activities which are of a significant nature, including strategic directions and financial objectives, major investments and divestments.

• To oversee the business and affairs of the Group. These include the Group’s budget, business performance and key performance indicators.

• To oversee the processes for evaluating the adequacy of internal controls, risk management, financial reporting and compliance; and • To assume responsibility for corporate governance.

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To assist the Board in the discharge of its oversight function, three Board Committees, namely the Executive Committee, the Audit Committee and the Establishment and Compensation Committee, have been constituted with specific terms of reference.

All the Board Committees are actively engaged and play an important role in ensuring good corporate governance within the Group. Membership of the committees is carefully constituted to ensure there is diversity of experience and appropriate skills to maximise the effectiveness of each Board Committee.

Board Committees

Committee Members

Executive Committee

Mr Lim Jit Poh Mr Tan Thai Hong Mr Wong Heng Tew Mr Edmund Tie Ms Susan Kong

Chairman Member Member Member Member

Audit Committee

Mr Fong Heng Boo Ms Susan Kong Mr Wong Heng Tew

Chairman Member Member

Establishment and Compensation Committee

Mr Lim Jit Poh Mr Liu Thai Ker Mr Wong Heng Tew

Chairman Member Member

Board meetings are held quarterly. Additional Board meetings are convened when warranted by particular circumstances. During the year, there were five Board meetings held. Another three special Board meetings were held for in-depth discussion on specific issues. The average attendance for Board meetings was above 75%. Apart from Board meetings, approvals from the Board were also sought by way of circulating resolutions.

September 2008 Board and Management Retreat: Briefing at the site of La Botanica, Xian.

The Group has a set of financial guidelines setting forth matters that require the Board’s approval.

Under these guidelines, new investments or divestments exceeding $50 million by any Group company, and all commitments to term loans and lines of credit from banks and financial institutions by the Group require the approval of the Board.

Each Board member has equal responsibility to oversee the business and affairs of the Group.

Management, on the other hand, is responsible for the day-to-day operations and administration of the Group in accordance with the policies and strategies set by the Board.

All newly appointed Directors are briefed by Management on the business activities of the Group and its strategic direction.

All Directors are also provided with relevant information that they may require in the discharge of their duty.

Board Composition and Guidance Principle 2: Strong and independent element on the Board

Our Policy and Practices The Board presently has a total of eight Directors, of whom five are independent. The nonindependent Directors are the Group CEO Tan Thai Hong and Board Member Wong Heng Tew who was appointed Executive Director on a part-time basis on 1 Jan 2009 to assist the Chairman and the Board of Directors in reviewing the Group’s business directions and operations, systems and processes.

Board Member Tow Heng Tan, Senior Managing Director/Chief Investment Officer, Temasek Holdings, is also considered non-independent as Temasek is the only shareholder of the Group.

However, such a relationship has not been expressly adopted in the 2005 Code as one that would deem a Director not to be independent. The Directors are business leaders who bring with them a wealth of experience and expertise in diverse areas such as the real estate, financial and legal sectors that are essential to steer the Group’s businesses forward.

The Board and Management appreciate that fundamental to good corporate governance is an effective and robust Board whose members engage in open and constructive debate and challenge Management on its assumptions and

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proposals. For this to happen, the Board, in particular the non-executive Directors, must be kept well informed of the Group’s businesses and affairs and be knowledgeable about the industry in which the businesses operate. The Group has adopted initiatives to ensure that the non-executive Directors are provided with detailed and complete information to discharge their oversight function effectively. These initiatives include a comprehensive monthly management and financial report, a detailed budget report, briefings on prospective deals, briefings on industry developments by experts in relevant fields, circulation of relevant information on business performance and initiatives, and press commentaries on matters in relation to the Group. An offsite Board Strategy meeting is organised every two years for a site visit and for focused discussions on strategic issues. This gives the non-executive Directors a better understanding of the Group and its businesses, and provides an opportunity for the non-executive Directors to familiarise themselves with the management team.

Exco’s objective for the year was to help grow the Group. To give non-executive Exco members a more complete picture of the Group’s businesses and operations so that they can better contribute to Exco’s discussions, a framework was put in place for relevant detailed information to be provided regularly.

The Board also meets when necessary without the presence of Management to discuss matters such as succession planning and leadership development.

The roles and responsibilities of the Chairman and Group CEO are defined distinctively. The Chairman, Lim Jit Poh, sets guidelines on and monitors the flow of information from Management to the Board to ensure that all material information are provided to the Board to make good decisions. He also ensures that relevant information on business initiatives, industry developments and press commentaries on matters in relation to the Group or to the industry in which it operates are circulated to Board Members so as to enable them to be updated and thereby enhance the effectiveness of the non-executive directors and the Board as a whole.

Executive Committee (“Exco”) Exco was established by the Board of Directors to review and approve or recommend to the Board for approval the Group’s investment and divestment project proposals. Exco is guided by specific terms of reference set out as follows: a. To review with Management and recommend to the Board for approval the Group’s annual budget and budget revision. b. To consider and recommend to the Board for concurrence the proposed Directors’ fees for the Financial Year, before these are tabled at the AGM for approval by the shareholder. c. To review project or business progress from time to time. d. To carry out other functions as delegated by the Board.

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Except when there is a Board meeting in that particular month, Exco meetings are held monthly to discuss business performance, strategies and investment projects. There were eight Exco meetings held in the year with an attendance rate averaging 97%.

Chairman and Group Chief Executive Officer Principle 3: Chairman and Chief Executive Officer to be two separate persons to ensure a clear division of responsibilities and balance of power and authority Our Policy and Practices

The Chairman also ensures effective communication with the shareholder.

The Group CEO Tan Thai Hong is a Board Member and has full executive responsibilities over the business and operational decisions of the Group both locally and overseas.

The Company Secretary, in consultation with the Chairman and Management, schedules Board and Committee meetings on a regular basis and finalises the preparation of the meeting agenda.

She ensures the quality and timeliness of the flow of information between the Management and the Board. She also undertakes all administrative matters for the Board that includes ensuring the smooth functioning of the proceedings at Board meetings and compliance with the Group’s corporate governance guidelines.

Board Membership Principle 4: Formal and transparent process for the appointment of new Directors to the Board.

Our Policy and Practices The Articles of Association makes provision for retirement of the Board Members and re-election by the shareholder as part of Board’s renewal. At every AGM, one-third of the Board Members shall retire from office and are eligible for re-election.

Board Members who are due for retirement will henceforth be consulted if they wish to be considered for re-election.

Board Performance Principle 5: Formal assessment of the effectiveness of the Board as a whole and the contribution by each director to the effectiveness of the Board Our Policy and Practices While we currently do not have a formal process of assessment of the members of the Board, the Chairman meets with the shareholder regularly for exchange of views and for feedback on the effectiveness of the Board as a whole.

Access to Information Principle 6: Board Members to have complete, adequate and timely information

Our Policy and Practices For Board and Committee meetings, in respect of all substantive items in the agenda, Board papers are sent to Directors at least three working days before the meeting so that discussion at the meeting is efficient and constructive. However, sensitive matters may be tabled at the meeting itself or discussed without any papers being distributed. Management staff with additional insight into the matters at hand would be present at the relevant time during the Board meeting.

Management also provides the Board Members with management and financial reports on a monthly basis. Such reports keep the Board informed of the Group’s performance, financial position, prospects and consist of the consolidated profit and loss accounts, analysis of projects secured and in pursuit, operating profit, revenue and profit by markets compared against budgets, together with explanation for significant variances.

Remuneration Matters Principle 7: The procedure for developing policy on executive remuneration and for fixing remuneration packages of individual directors should be formal and transparent Principle 8: Remuneration of directors should be adequate but not excessive Principle 9: There should be clear disclosure of remuneration policy, level and mix of remuneration and procedure for setting remuneration Our Policy and Practices Remuneration policy in respect of executive directors and other key executives of the Establishment and Compensation Committee (“ECC”) was established to ensure that the level of remuneration paid by the Group is sufficient to recruit, retain the best talents and commensurate with performance.

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The objectives of the ECC are to carry out the following: a. To consider and approve the staff establishment. b. To determine specific remuneration packages to attract, retain and motivate employees. c. To approve the performance bonus and incentive payments for staff that are linked to the performance of the Group as well as the individual incumbent. d. To recommend key positions of management. e. To recommend to the Board a framework of remuneration for the executive management.

Principle 11: Establishment of Audit Committee with specific terms of reference Our Policy and Practices The Board strives to give our shareholder maximum sustainable value by engaging in good business practices and compliance. Prompt fulfillment of statutory reporting requirements is but one way to maintain our shareholder’s confidence and trust in our capability and integrity.

Audit Committee (“AC”)

During the financial year, ECC reviewed the Group’s manpower requirements, key appointments, remuneration of key positions, the reward structure and succession planning. ECC also reviewed the performance-linked remuneration framework. The remuneration package has been structured so that a portion of the total remuneration of the Senior Executives which includes the Group CEO, is based on the Economic Value Added principle. While the Company adopted a wage freeze policy for the year because of the economic recession, ECC approved Management’s recommendation for promotion to be given selectively to high performance deserving staff.

A total of five ECC meetings was held in the Financial Year, with 100% attendance by all members.

Directors’ Fees The guidelines for Directors’ fees are drawn up based on the framework recommended by shareholder and moderated based on the Group’s financial position. The proposed Directors’ fees are reviewed by the Exco and circulated to Board for concurrence.

Directors’ fees are approved by the shareholder at the Group’s Annual General Meeting (“AGM”).

Accountability and Audit Principle 10: The Board is accountable to the shareholder while the Management is accountable to the Board

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The Group’s internal policy stipulates that the AC shall have at least three non-executive members; the majority including the Chairman must be independent. At least two members of the AC shall have financial, legal and management expertise.

Fong Heng Boo and Susan Kong are non-executive directors. Wong Heng Tew was appointed parttime Executive Director on 1 Jan 2009. Although the Audit Commitee now comprises only two non-executive members, we ensure that for every Audit Committee meeting, all 3 Audit Committee members are present even though the quorum stipulates 2 members, including at least one independent director. To ensure independence, on an annual basis, every member completes a return declaring his or her independence. All the AC members possess the requisite financial, legal and management expertise.

The AC is guided by specific terms of reference.

The roles of the AC include: a. To review the annual audit plans for both external and internal auditors and adequacy of internal controls including financial, operational and compliance controls, risk management. b. To review the financial statements of the Group before submission to the Board, together with the external auditor’s report. c. To review Internal Audit findings to ensure the proper conduct of the Group’s business. d. To recommend to the Board the appointment of the auditors. e. To consider and recommend the audit and other fees of external auditors to the Board for approval.

f.

g.

To consider and approve the Risk Management Report to ensure that there is a proper framework to manage key business risks.

To commission investigations into any matter within AC’s terms of reference. AC has full access to Management’s co-operation, as well as discretion to invite any Director or Executive Officer to attend its meeting and reasonable resources to enable it to discharge its functions properly.

During the financial year, AC reviewed the external and internal auditors’ audit plan, audit findings, recommendations and the audited Group financial statements. Based on these reports and findings, the AC reviewed the internal control framework to identify weaknesses for follow-up action and require Management to report on such actions. A risk management report is submitted quarterly where internal control processes from risk management perspectives are evaluated.

The AC has also met the internal and external auditors at least once annually in the absence of Management.

AC meetings are held quarterly. During the financial year, four AC meetings were held with a 100% attendance. In addition, there were three special meetings for AC to investigate a whistle blowing complaint.

The Internal Auditor reports to the AC. In the financial year, AC reviewed internal audit findings and recommendations covering the various operations such as project management, payroll and staff claims, IT security, revenue, capital and operational expenses, the internal control processes for township development fund, cash management and the internal control processes in the Abu Dhabi office. A system was implemented where all the internal audit findings and recommendations for Management’s follow-up are tabulated together with the timeline for completion. This information is available for reference by key staff to facilitate cross divisional learning in effective internal controls.

Communication with Shareholder Principle 14: Regular, effective and fair communication with shareholder Principle 15: Greater shareholder participation at the Annual General Meeting Our Policy and Practices We practise regular and timely communications with the shareholder as and when the need arises.

The Corporate Planning and Branding Department (“CPB”) and Finance Department regularly attend to the shareholder’s queries and requests. The Directors and the Management meet with our shareholder on all shareholder issues.

Internal Controls Principle 12: Sound system of Internal Controls Principle 13: Independent Internal Audit Function Our Policy and Practices The role of the Internal Auditor is to assist the Audit Committee to ensure that the Group maintains a sound system of internal controls by undertaking regular audit of significant areas as approved by the Audit Committee. To maintain independence, the Group outsourced its internal audit function. However, audit of overseas offices for the consultancy business is still carried out by Corporate Finance.

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human resource Surbana is a knowledge-intensive company operating in a knowledge-driven economy. Its comparative advantage therefore rests on the capabilities of its people, who possess both the knowledge from its inherited legacy as well as new acquistions. In FY08/09, the Human Resource (HR) strategies were geared at aligning organisational capability with the Group’s rapidly growing business.

The matching of capabilities with business needs demanded organisational change.The HR team played a pivitol role in driving this transformation, effecting several change processes and other tools to improve corporate education and performance management. They also strived to instil a culture that was competitive, yet nurturing.

coherent team, and in forging stronger bonds. The session also provided time for senior management to review feedback from staff on the culture of the company, and to develop plans for bringing about transformation.

A summary of the key initiatives launched is as follows:

As part of greater ambit of Building the Future, the organisation restructuring exercise brought about the integration of the Singapore and International consultancy businesses. This was to achieve a nimbler and more flexible structure that could respond to market demands and conditions. The restructure would also tighten resource allocation and improve efficiency within the technical functions.

An effective and united leadership The senior management team participated in a Building the Future workshop to revisit the vision, mission and future goals for the Group. They also explored critical features of building a more

A nimbler organisation structure

Celebrate 5 - Staff enjoying Surbana’s 5th year anniversary dinner on 1 July 2008.

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Active Day 2009 was part of Surbana’s continuous drive to push for a healthy lifestyle and better work-life balance for staff.

With no clear demarcation between overseas and local businesses, professionals now have opportunity to be exposed to different projects in scale, scope and location. This translates into a wider range of challenges and in the long run, enhances professional development.

Throughout the year, regular meetings, discussions and dialogue sessions were held with project teams and task force groups. Not only were they aimed at greater staff participation by giving them a stake in decision-making, they also served as feedback channels from the ground.

Growing competency

A more conducive working environment

The year saw a thorough review of job competencies and a profiling for all professionals.

With a clearer picture in mind, the HR team could therefore work with management to draw up a more focused and refined approach to bridging gaps through structured learning, job exposure or targeted recruitment of talents.

The HR team continued to promote a healthy work-life balance during FY08/09. They organised activities for physical development of strength and endurance, regular health talks and screening, as well as the annual ACTIVE Day that saw many enthusiastic participants. These efforts were recognised with a HEALTH Silver Award from HDB.

Engaging and retaining talents

Fostering Labour-Management relations

With the emergence of an increasingly complex business environment and changing employee mindset, engaging and retaining talents see greater challenges. Planning for developmental activities that go beyond the present needs such as development of talents and succession planning become all the more pertinent. These activities must be accomplished in a purposeful manner and realised through structured training, on-the-job learning and coaching.

Surbana Corp continued to enjoy harmonious labour–management relations with our union partner (BATU). As part of our continual efforts to strengthen these relations, the team has been working closely with the BATU-Surbana Corp Branch in many staff related matters.

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risk governance structure A Risk Management Committee (“RMC”) was formed in 2006, comprising key members of the management team. The RMC formulates the Group’s risk management policies, monitors identified risks and supervises the mitigation and treatment of risks. The RMC is supported by the Risk Management Department and reports to the Audit Committee (“AC”), comprising three members of the Board, on key risk indicators and key risk issues on a quarterly basis.

Risk Management Framework

Compliance Review

A risk management framework has been implemented, under which risks are identified, evaluated and monitored on a regular basis. All business units, operating units and corporate divisions are involved in identifying, evaluating and monitoring risks. The Group’s risk management strategy adopts a holistic top-down and bottomup approach:

The Risk Management Department conducts compliance reviews on new and existing investments by the Township Development Funds according to investment criteria and policy and regulatory requirements.

•

•

The top-down approach is used to identify key strategic, financial and operational risks across business units and operating divisions in the Group.

The bottom-up approach is adopted by the business units and operating divisions to identify, analyse, evaluate and treat risks within their units. The key principle is to manage risks where it lies – business units and operational divisions assume primary responsibility for managing risks within their responsible areas.

Risk Monitoring The Risk Management Committee measures and monitors the Group’s identified risks systematically and periodically. These include investment risk, project risk, country risk, foreign exchange risk, customer risk, business concentration risk and human resource risk. The measured risks are reviewed against market conditions and trends, quantified and reported to the Audit Committee quarterly.

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Whistle Blowing The Group has put in place a whistle-blowing procedure since 2007, which provides employees a proper channel to raise concerns on frauds or other business or financial improprieties to the Audit Committee in confidence.

Business Continuity Plan Since 2007, the Surbana Crisis Management Plan, a comprehensive Business Continuity Management programme involving both Singapore and overseas offices has been set up and enhanced continually.

It currently includes Pandemic Business Continuity Plan, H1N1 Business Continuity Plan, IT Disaster Recovery Plan, Overseas Evacuation Plan, Fire Emergency Plan and Crisis Communication Plan.

corporate social responsibility Surbana is not driven by profit alone, but is committed to fulfilling its responsibilities to the community and the environment. An ongoing CSR programme maps out the annual activities to support such causes.

With a global presence in 24 countries, we are looking into ramping up our talent capacity particularly in the developing countries. In this way, Surbana serves as an access to knowledge, creating opportunities for individuals within these less privileged communities.

Environment

Surbana seeks to improve the living conditions of the underprivileged. Staff are engaged in various causes to better the lives of the less fortunate.

One of the cornerstones of our business philosophy is to carry out urbanisation with a sensitivity to the environment. Business operational decisions are made with environmental sustainability outcomes in mind. In all our projects, we align our practices to meet ISO14000 environmental standards. This minimises the adverse impact on the natural environments and eco-systems. Surbana’s team of architects and engineers also continually look for ways to harness green and clean technology to design and develop sustainable developments.

One key area stems from our involvement in HDB’s projects in Singapore. We work with grassroots organisations and government agencies to improve the living conditions of the underprivileged households in these estates.

To help raise awareness of climate change, Surbana participated in Earth Hour 2009, a global initiative by the World Wide Fund for Nature. All staff were encouraged to switch off their lights for an hour to reduce electricity consumption.

When disaster strikes unexpectedly, Surbana also steps in to aid relief efforts. In June 2008, donation boxes were set up at the reception area to collect contributions for the Sichuan earthquake and Myanmar cyclone victims. Apart from monetary donations, our staff in Chengdu office gave their time to distribute food and lend aid to the affected families.

Such efforts to reduce energy consumption are ongoing. Surbana closely monitors its electricity and water consumption to ensure these are within reasonable proportions. We are also cutting down on unnecessary vehicle and air travel, encouraging staff to make the best of the public transport system.

Group CEO with some staff at the site of the Sichuan earthquake.

Surbana was a sponsor of the ‘One-Love Charity Concert’ in aid of the victims of the Sichuan earthquake.

Making A Difference To The Community

Plans are also underway for the follow-up to the “Habitat for Humanity” programme, an international mission to eliminate poverty housing worldwide by building basic, decent houses with the help of volunteers. Surbana will help fund and support the building programme in Sichuan.

This is but a start to more meaningful activities in the making. Surbana’s social responsibilities will no doubt grow with its increasing business profile and global presence.

53

FINANCIAL STATEMENTS Surbana Annual Report 2008/2009

contents Surbana’s Growth 55 • Financial Review 56 • Consolidated Income Statement 58 • Balance Sheet 59 • Consolidated Cashflow Statement 60 • Group Financial Highlights 62 • Listing of Companies in the Group 66

54

Surbana’s Growth in the last 5 years

REVENUE

PAT (before exceptional items)

95% Increase in Revenue

234% Increase in PAT

266.7

60

250 200 150

10

FY06

FY07

0

FY08

37.0

59.5

FY04

FY05

FY06

FY07

FY08

30

50 FY05

28.9

40

20

FY04

20.7

50

100

0

17.8

CAGR 35.2%

136.8 140.1 161.7 220.8

CAGR 18.1%

$’M 300

SHAREHOLDERS’ FUNDS

TOTAL ASSETS

99% Increase in Shareholders’ Funds

212% Increase in Total Assets 261.2

$’M 600

250 200 150

500 400 300

100

200

50

100

0

FY04

FY05

FY06

FY07

0

FY08

187.5 178.8 230.8 425.6 584.8

CAGR 32.9%

131.1 110.3 138.8 177.6

CAGR 18.8%

$’M 300

FY04

FY05

FY06

FY07

FY08

ROE & AVERAGE SHAREHOLDERS’ FUNDS

ROTA & AVERAGE TOTAL ASSETS

Return on Equity doubled from 12.6% in FY04 to 28.7% in FY08

Return on Total Assets improved from 9.5% in FY04 to 11.8% in FY08

$’M 250

140.9 120.7 124.6 158.3

28.7

200

23.2 150 100

219.4

24.6

17.1

600

25

500

20

400

15

300

10

200

5

100

0

0

187.5 183.2 204.8 328.2 505.2

FY04

FY05

FY06

Average Shareholders’

FY07

FY08 ROE (%)

% 15

14.1 11.3

11.8

11.3

9.5

12 9

12.6

50 0

$’M

% 30

6 3

FY04

FY05 Average Total

FY06

FY07

FY08

0

ROTA (%)

55

Financial Review

PERFORMANCE SCORECARD ($’million) FOR THE FINANCIAL YEAR ENDED 31 MARCH

2009 FY08

Revenue EBIT PBT PAT PATMI EPS (cents) ROE

266.7 220.8 74.8 44.1 74.2 46.4 59.5 37.0 62.9 39.0 59.3 36.7 28.7% 24.6%

2008 FY07

% Increase/ (Decrease) 20.8% 69.6% 59.9% 60.8% 61.4% 61.4% 16.4%

Revenue The Group registered a significant double digit growth in revenue for FY08 compared to FY07. Revenue grew 21% on the strength of Singapore and international consultancy as well as related businesses.

Singapore consultancy’s growth was contributed by both HDB and non-HDB segments. The increase in HDB revenue was fuelled by a higher volume of Rental Flats Upgrading, Selective En Bloc Redevelopment and Built-to-order projects.

According to the phased liberalisation of the public housing building programme, 50% of the programme has been opened up to other private consultants. Along with the phased liberalisation, the restriction for Surbana to compete in Singapore was lifted on 1 July 07. Revenue from this non-HDB segment has tripled in the current year as we compete in this relatively new market segment.

Despite a challenging global environment, international consultancy managed to increase revenue by 7% over the previous year, with strong performance from the Middle East and South East Asia regions. Since the Group’s venture into the global arena in FY04, the proportion of Group revenue contributed from overseas has increased from $4.7 million or 3% of Group revenue in FY04 to $59.3 million or 22% of Group revenue in FY08.

In related businesses, revenue from site supervision, facilities management, management of procurement and supply of construction materials and integrated estate management services have also turned in sterling results with a 35% revenue growth.

56

Financial Review (Continued) Earnings The Group achieved a record PAT of $59.5 million in the current year, an increase of $22.5 million or 61% from $37.0 million in the previous year.

The strong performance was boosted by favourable exchange gains of $4.1 million and jobs credit of $1.5 million.

Excluding these, the Group achieved a 46% growth in PAT. Singapore consultancy continued to shine with a 64% increase in profits over the preceding year. This was largely attributed to the higher revenue recorded and stringent costs control.

In our diversification into a global consultancy, we have not been spared the effects of the global financial crisis. Our international consultancy’s profits have been affected by impairments in trade receivables as well as provision for forseeable losses on contracts.

Related businesses turned in with strong profits improvements from site supervision, management of procurement and supply of construction materials and integrated estate management services. Profits generated by this business segment have doubled the previous year.

Shareholder Returns The Group’s return on equity stood at 28.7% and earnings per share was 59.3 cents in FY08. For FY07, return on equity was 24.6% and earnings per share was 36.7 cents.

The directors have recommended a final dividend of 9.4 cents per share, amounting to $10 million to be paid to our shareholder.

57

Consolidated Income Statement For the financial year ended 31 March 2009

The Group

2009 2008

$ $

Revenue 266,748,152 220,801,285 Cost of sales (157,923,679) (140,370,114) Gross profit 108,824,473 80,431,171

Other income 6,776,967 3,229,642

Other gains/(losses) - net 3,971,870 (1,626,757)

Expenses - Administrative (44,637,264) (37,819,429) - Others (103,839) (24,350)

Share of results of associated companies 339 165,266 Share of results of joint ventures (557,334) 2,058,564

Profit before tax 74,275,212 46,414,107

Income tax expense (14,741,794) (9,428,320) Profit after tax 59,533,418 36,985,787

Attributable to: - Equity holders of the company 62,905,454 38,965,799 - Minority interests (3,372,036) (1,980,012)

59,533,418 36,985,787

58

Balance Sheet As at 31 March 2009

The Group The Company

2009 2008 2009 2008

$ $ $ $

ASSETS Current assets Cash and cash equivalents 139,596,081 104,854,821 26,157,225 8,612,340 Available-for-sale financial assets 2,407,500 - - Trade and other receivables 96,530,929 76,500,546 36,866,366 32,269,684 Development properties held for sale 102,977,772 92,820,556 - Other current assets 1,824,961 1,122,537 - 66,769

343,337,243 275,298,460 63,023,591 40,948,793 Non-current assets Available-for–sale financial assets 1,313,810 3,926,310 - Loans to joint ventures 205,859,245 118,310,079 14,905,473 13,283,799 Other non-current assets 104,800 104,800 - Investments in associated companies 656,017 697,414 - Investments in joint ventures 28,692,106 23,294,098 8,560,747 8,560,747 Investments in subsidiaries - - 164,049,444 164,049,444 Property, plant and equipment 4,103,609 3,407,190 265,977 159,800 Deferred income tax assets 657,314 662,648 -

241,386,901 150,402,539 187,781,641 186,053,790

Total assets 584,724,144 425,700,999 250,805,232 227,002,583

LIABILITIES Current liabilities Trade and other payables 188,030,703 145,267,558 50,219,260 76,273,929 Current income tax liabilities 15,886,770 9,703,245 3,596 21,679

203,917,473 154,970,803 50,222,856 76,295,608 Non-current liabilities Deferred income 714,617 - - Other payables 7,789,871 4,930,060 - Deferred tax liabilities 38,014 43,149 -

8,542,502 4,973,209 -

Total liabilities 212,459,975 159,944,012 50,222,856 76,295,608

NET ASSETS 372,264,169 265,756,987 200,582,376 150,706,975

EQUITY Share capital 106,107,076 106,107,076 106,107,076 106,107,076 Foreign currency translation reserve 20,103,753 (442,913) - Fair value reserve 81,697 86,100 - Retained earnings 134,855,313 71,949,859 94,475,300 44,599,899

261,147,839 177,700,122 200,582,376 150,706,975 Minority interests 111,116,330 88,056,865 - Total equity 372,264,169 265,756,987 200,582,376 150,706,975

59

Consolidated Cashflow Statement For the financial year ended 31 March 2009

2009

$

Cash flows from operating activities Total profit 59,533,418 Adjustments for: - Taxation 14,741,794 - Depreciation of property, plant and equipment 1,636,582 - Interest income (1,368,160) - Impairment of goodwill in joint venture 46,230 - Dividend income from investments - - Share of results of associated companies after tax (339) - Share of results of joint ventures after tax 557,334 - Loss on disposal of property, plant and equipment 294 - Fair value gain on available-for-sale financial assets - - Impairment loss on available-for-sale financial assets 100,000 - Net exchange (gain)/ loss (2,132,359) Operating cash flow before working capital changes 73,114,794

Change in operating assets and liabilities - Financial assets at fair value through profit or loss - - Trade and other receivables (17,269,273) - Development properties held for sale (7,350,969) - Other current assets (702,423) - Trade and other payables 50,531,632 - Deferred income 714,617 Cash generated from operations 99,038,378

Income tax paid (8,545,024) Net cash provided by operating activities 90,493,354

Cash flows from investing activities Acquisition of a subsidiary, net of cash acquired - Funds released from/ (placed in) escrow account 10,408,874 Purchase of property, plant and equipment (2,061,097) Proceed from disposal of available-for-sale financial asset - Proceeds from disposal of property, plant and equipment 206,883 Investments in joint ventures (20,005) Loans to joint ventures (75,587,894) Dividends received from financial assets at fair value through profit or loss - Dividends received from associated companies 41,736 Interest received 1,368,160 Net cash used in investing activities (65,643,343)

60

2008 $

36,985,787 9,428,320 1,513,275 (1,738,662) (49,514) (165,266) (2,058,564) 2,289 (1,319,902) 1,341,140 43,938,903

8,250,183 (19,285,579) (6,694,487) 281,852 21,327,150 47,818,022 (7,301,151) 40,516,871

(26,941,002) (10,408,874) (1,734,274) 21,319,902 89,428 (1,184,000) (51,380,855) 49,514 107,876 1,738,662 (68,343,623)

Consolidated Cashflow Statement (Continued) For the financial year ended 31 March 2009

2009

$

Cash flows from financing activities Proceeds from issuance of shares in a subsidiary to minority shareholders 18,167,764 Fixed deposits pledged (999,919) Net cash provided by financing activities 17,167,845

Net change in cash and cash equivalents 42,017,856 Cash and cash equivalents at the beginning of the financial year 91,466,740 Effects of exchange rate changes on cash and cash equivalents 2,132,359 Cash and cash equivalents at the end of the financial year 135,616,955

The above comprises the following: Cash and cash equivalents 139,596,081 Less: Funds placed in escrow account - Fixed deposits pledged as security (3,979,126) Total cash and cash equivalents as per the cash flow statement 135,616,955

2008 $

74,268,200 (751,538) 73,516,662 45,689,910 47,117,970 (1,341,140) 91,466,740

104,854,821 (10,408,874) (2,979,207) 91,466,740

61

Group Financial Highlights 5-Year Financials

2005 FY04

2006 FY05

2007 FY06

2008 FY07

2009 FY08

136.8

140.1

161.7

220.8

266.7

Earnings before interest and tax (excludes share of associates

& joint ventures)

22.8

26.7

34.2

44.1

74.8

Profit before income tax expense and exceptional items

24.3

26.9

35.0

46.4

74.2

Profit/(loss) after tax and before minority interest - before exceptional items - after exceptional items

17.8 (18.2)

20.7 31.3

28.9 28.9

37.0 37.0

59.5 59.5

Profit/(loss) after tax and minority interest - before exceptional items - after exceptional items

17.8 (18.2)

20.7 31.3

28.9 28.9

39.0 39.0

62.9 62.9

131.1 187.5 -

110.3 178.8 -

138.8 230.8 -

177.6 425.6 88.1

261.2 584.8 111.1

14.3 (14.6) 113.3

19.5 29.5 113.8

27.2 27.2 117.4

36.7 36.7 190.6

59.3 59.3 300.7

FOR THE FINANCIAL YEAR ENDED 31 MARCH (S$’million) Revenue

AT YEAR END (S$’million) Shareholders fund Total assets Minority interests PER SHARE (in cents) Earnings - before exceptional items - after exceptional items Net assets FINANCIAL RATIOS Return on shareholders equity - before exceptional items - after exceptional items Return on total assets - before exceptional items - after exceptional items

12.6% -12.9%

17.1% 25.9%

23.2% 23.2%

24.6% 24.6%

28.7% 28.7%

9.5% -9.7%

11.3% 17.1%

14.1% 14.1%

11.3% 11.3%

11.8% 11.8%

16.8

19.0

29.3

50.4

59.8

PRODUCTIVITY DATA (S$’million) Economic value added

62

Group Financial Highlights (Continued) 5-Year Financials

•

Consistently grew and almost doubled revenue from $136.8 million in FY04 to $266.7 million in FY08.

•

Achieved strong growth in profit after tax and before minority interests (“PAT”) at a compound growth rate of 35% per annum, from $17.8 million in FY04 to $59.5 million in FY08.

•

Earnings per share has quadrupled from 14.3 cents in FY04 to 59.3 cents in FY08.

•

Shareholders’ funds and total assets increased at compound growth rates of 19% and 33% per annum respectively.

•

Return on equity has more than doubled from 12.6% in FY04 to 28.7% in FY08.

•

Generated positive economic value added (EVA) for the past 5 years, with FY08 EVA of $59.8 million more than triple that of FY04 EVA of $16.8 million.

•

Diversified revenue sources from a Singapore based consultancy to a global consultancy cum developer with businesses spanning 24 countries.

•

Invested in 4 townships in Chengdu, Wuxi, Xian and Shenyang in China, PRC since our first foray into township development in FY03.

•

Launched a US$250m Surbana Township Development Fund in Sep 07 with a total of US$141.83m drawndown from the investors up to end FY08.

63

Group Financial Highlights (Continued) 5-Year Financials

Financial Position SOURCES OF FINANCE $’M

131.1

110.3

138.8

265.7

372.3

400

111.1 350 300

88.1

250

261.2

200

177.6 150

138.8

131.1

110.3

100 50 0

FY04

FY05

FY06

Shareholders’ Funds

FY07

FY08

Minority Interests

At end FY08, group shareholders’ funds comprising share capital and reserves increased by $83.6 million from $177.6 million in FY07 to $261.2 million in FY08. The increase was contributed by the profit for the year and increase in foreign currency translation reserves mainly as a result of the strengthening of the Chinese renminbi.

Minority interests increased from $88.1 million to $111.1 million mainly due to injections of capital by minority shareholders of Surbana Township Development Fund Pte Ltd.

64

Group Financial Highlights (Continued) 5-Year Financials

Financial Position ASSETS EMPLOYED $’M

131.1

110.3

138.8

265.7

372.3

400

103.0 350 300

26.1 7.9 235.3

92.8

250 200 150

32.9 100

38.3

90.2

23.2 7.4 142.3

14.4 35.5 88.9

56.8

50 0

8.0 FY04

15.2 FY05

FY06

FY07

Investments & loans to joint ventures

Development properties held for sale

Fixed assets & other short term investments

Other net current assets

FY08

Assets employed at end FY08 were $372.3 million compared with $265.7 million at end FY07.

This was mainly attributed to higher loans made to joint ventures for investment in the Xian township and higher development property held for sale for the Shenyang township.

Over the past 5 years, as we diversified from a mainly consultancy-based business to a consultancy cum township development company, assets relating to the latter which include investments and loans in joint ventures as well as development properties held for sale have also surged from a mere 4% in FY04 to 58% in FY08 of the Group’s assets.

65

Listing of companies in the Group

Name of company Principal activities

(i)

Country of Group’s incorporation effective holding 2009 2008 % %

Subsidiaries held by the Group are as follows :

Held by the Company

Surbana Consultants Pte Ltd Provision of architectural, Singapore 100

engineering, quantity surveying and

land survey consultancies and project

management services

100

Surbana Technologies Pte Ltd

Provision of integrated estate Singapore 100 100 management services

Surbana Site Supervisors Pte Ltd

Surbana Construction Resources Pte Ltd

Surbana Facilities Management Pte Ltd

Surbana International Consultants Pte Ltd

Surbana Land Pte Ltd

SIPM Consultants Pte Ltd

Provision of site supervision Singapore 100 services

Provision of procurement and Singapore 100 100 supply of construction materials Property maintenance of Singapore 100 commercial properties

100

Provision of feasibility studies, Singapore 100 planning and architectural engineering consultancy services, contract administration services project management and property consultancy services

100

Investment holding

Singapore

100

100

Provision of project management services

Singapore

100

100

Held by subsidiaries of the Company

CESMA International Pte Ltd Provision of architectural and Singapore 100

engineering consultancy services,

contract administration services,

project management and property

consultancy services.

cxSurbana Pte Ltd Provision of e-commerce and Singapore 100

e-project management services for

building and construction industry

Surbana International Consultants Planning architectural interior India 100 (India) Pvt Ltd engineering design services, project

management and consultancy services.

66

100

100

100

100

Listing of companies in the Group (Continued)

Name of company Principal activities

Country of Group’s incorporation effective holding 2009 2008 % %

Held by subsidiaries of the Company (continued)

Surbana (Shanghai) Consultants Ltd Provision of feasibility studies, People’s 100

planning, architectural and Republic

engineering consultancy services, of China

contract administration, project

management and property

consultancy services.

100

Surbana International Consultants (Malaysia) Sdn. Bhd

Provision of feasibility studies, planning, architectural and engineering consultancy services, contract administration, project management and property consultancy services.

Malaysia

100

100

Surbana International Consultants (Vietnam) Co Ltd

Dormant

Vietnam

100

-

Surbana Property Management and Consultancy Pte Ltd

Investment holding

Singapore

100

100

Surbana Property Management (China) Pte Ltd

Investment holding

Singapore

100

100

CNE-Surbana Facilities Management Co. Ltd

Provide facility management, property management and project management

People’s Republic of China

70

70

Surbana International Investment Investment holding Singapore (Xian) Pte Ltd

76

76

Surbana Land International (India) Pte Ltd

Singapore

100

100

Surbana Land International (China) Pte Ltd Provision of management services

Singapore

100

100

Surbana Land International (Vietnam) Pte Ltd

Dormant

Singapore

100

-

Surbana Township Development Fund Pte Ltd

Private Township Development Equity Fund

Singapore

60

60

Dormant

Surbana International Investment Investment holding Singapore 60 60 (Shenyang) Pte Ltd Surbana Fund Management Pte Ltd

Fund Management

Singapore

100

100

67

Listing of companies in the Group (Continued)

Country of Group’s Name of company Principal activities incorporation effective holding

2009 2008

% %

Held by subsidiaries of the Company (continued)

Well Talent Resources Limited Investment holding Hong Kong 42 42

Shenyang Aoyuan Real Estate Township development People’s 42 42 Development Co. Ltd Republic of China

Surbana International Investment Dormant Singapore 100 100 (Hangzhou) Pte Ltd

Surbana (Hangzhou) Dormant People’s 100 100 Development Co. Ltd Republic of China

Surbana II (Hangzhou) Dormant People’s 100 100 Development Co. Ltd Republic of China

Surbana International Investment Dormant Singapore 100 (Jinan) Pte Ltd

(ii) Associated companies of the Group are as follows :

Held by subsidiaries

Sindia Consortium Pte Ltd Provide construction and Singapore 25 25

development services for building

and construction Industry

CESMA - Hua Kok - Tiong Provide construction and India 25 25 Seng - Neo Construction (India) Pvt Ltd services for building

and construction industry

(ii) Joint ventures of the Group are as follows :

Yihe Holding Pte Ltd Investment holding Singapore 50 40

Surbana Property Investment Pte Ltd Investment holding Singapore 38 38

Surbana-Henderson (Xian) Property Township development People’s 38 38 Development Co., Ltd Republic of China

Surbana-Henderson II (Xian) Township development People’s 38 38 Property Development Co., Ltd Republic of China

S2 Project Management Project management United Arab 50 50

Emirates

Surbana Land (China) Pte Ltd Investment Singapore 30 30

holding Company

68

Listing of companies in the Group (Continued)

Country of Group’s Name of company Principal activities incorporation effective holding

2009 2008

% %

SLC (Wuxi) Pte Ltd Investment Holding Singapore 30 30

Plein Essor Property Services Provide facility management, People’s 50 40 (Shanghai) Co. Ltd property management and Republic of China

project management

Plein Essor Property Services Provide facility management, People’s 50 40 (Chengdu) Co. Ltd property management and Republic of China

project management

Plein Essor Property Services (Wuxi) Co. Ltd Provide facility management, People’s 50 40

property management and Republic of China

project management

Cityone Township Development Pte Ltd Investment Holding Singapore 15 15

Chengdu Century Development Co Ltd Township Development People’s 15.3 15.3

Republic of China

CityOne Development (Wuxi) Co. Ltd Township Development People’s 15 15

Republic of China

69

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70

71

Surbana Corporation Pte Ltd Company Reg No. 200302561C

168 Jalan Bukit Merah, Surbana One, Singapore 150168 Tel: 65 6248 1288 Fax: 65 6273 9090 Email: mails@surbana.com www.surbana.com

72