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Sunway Construction Annual Report 2017

BUILDING ON TODAY'S mOmENTUm TO SECURE TOmORROW'S SUCCESS

Our guiding principles and strength in structural stability ensure we sustain our current momentum, while constantly striving towards optimum performance by innovating new winning formulas. By meticulously creating a legacy built on sustainability, we are united in standing firm against any obstacles along the way. This is our path. This is our resolve.

Mass Rapid Transit (MRT) Project Ð Sg Buloh Ð Kajang Package V4: Semantan Station

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Sunway Construction Annual Report 2017

VISION

MISSION

To be the leading regional construction and engineering group.

Innovating to deliver value underpins our relentless efforts to drive positive and sustainable change in the way we work and operate to create values for all our stakeholders.

Sunway Construction Group Berhad (SunCon) is driven by a full range of integrated services which include building, civil engineering/infrastructural works, foundation and geotechnical engineering, mechanical, electrical and plumbing services works, industrial building systems/precast component, machinery and logistics with design & build capabilities to provide end-to-end construction solutions. With a vision of becoming the region's leading pure play construction group, we constantly innovate to deliver value, build synergistic and sustainable relationships and achieve the highest standards of quality, safety and excellence.

Building synergistic and sustainable relationship is the bedrock of the company's ethos of nurturing our people and developing meaningful relationships with external parties including our business partners and customers towards achieving business objectives, while keeping the interests of our stakeholders. Achieving the highest standards in quality, environmental, safety and health, remains our founding value that we uphold with great passion. We make individual and collective efforts in aiming higher to achieve strategic business goals with a commitment to excellence.

VALUES INTEGRITY We believe in doing the right thing at all times. ฀ We conduct ourselves in an honest and trustworthy manner ฀ We act professionally, ethically and honorably ฀ We ensure our actions are consistent with our words

hUmILITY We believe in being humble.

ExCELLENCE We take pride in all that we do.

฀ We never stop learning ฀ We care for and respect people and the environment

฀ We strike to deliver high quality products and services ฀ We continuously innovate and improve for greater progress

฀ We seek first to understand, then to be understood

฀ We seek to inspire others to excel

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Sunway Construction Annual Report 2017

CORPORATE INfORmATION BOARD OF DIRECTORS

REGISTERED OFFICE

Chairman/Independent Non-Executive Director Dato' Ir Goh Chye Koon

Level 16, Menara Sunway Jalan Lagoon Timur Bandar Sunway, 47500 Subang Jaya Selangor Darul Ehsan, Malaysia T (603) 5639 8889 f (603) 5639 9507

Senior Independent Non-Executive Director Dato' Dr Ir Johari Bin Basri Independent Non-Executive Director Dato' Siow Kim Lun Dr Sarinder Kumari (Appointed on 1 March 2018) Non-Independent Non-Executive Director Dato' Chew Chee Kin Evan Cheah Yean Shin managing Director Non-Independent Executive Director Chung Soo Kiong

AUDIT COMMITTEE

SHARE REGISTRAR Sunway Management Sdn Bhd (50661-X) Level 16, Menara Sunway Jalan Lagoon Timur Bandar Sunway, 47500 Subang Jaya Selangor Darul Ehsan, Malaysia T (603) 5639 8889 f (603) 5639 9507

AUDITORS BDO (AF : 0206) Chartered Accountants

Dato' Siow Kim Lun (Chairman) Dato' Ir Goh Chye Koon Dato' Dr Ir Johari Bin Basri Dr Sarinder Kumari (Appointed on 1 March 2018)

SOLICITORS

NOMINATION AND REMUNERATION COMMITTEE

HSBC Bank Malaysia Berhad Standard Chartered Bank Malaysia Berhad

Dato' Dr Ir Johari Bin Basri (Chairman) Dato' Ir Goh Chye Koon Dato' Siow Kim Lun Dato' Chew Chee Kin Dr Sarinder Kumari (Appointed on 1 March 2018)

RISK MANAGEMENT COMMITTEE Dr Sarinder Kumari (Chairperson) (Appointed on 1 March 2018) Dato' Ir Goh Chye Koon Dato' Siow Kim Lun Dato' Dr Ir Johari Bin Basri Evan Cheah Yean Shin

Azman Davidson & Co Wong Kian Kheong Advocates & Solicitors

PRINCIPAL BANKERS

STOCK EXCHANGE LISTING Main Market of Bursa Malaysia Securities Berhad Stock Name SUNCON Stock Code 5263

WEBSITE ADDRESS W www.sunwayconstruction.com.my E [email protected]

INVESTOR RELATIONS NG BEE LIEN T (603) 5639 9645

ELAINE LAI T (603) 5639 9793 E [email protected] f (603) 5639 9530

COMPANY SECRETARIES Tan Kim Aun (MAICSA 7002988) Soh Ke Yi (MAICSA 7060456) We are also available through our mobile application. The application can be downloaded from : · iTunes Apple Store · Google Play Store

Sunway Construction Annual Report 2017

fINANCIAL CALENDAR ANNOUNCEMENT OF QUARTERLY RESULT 2017 25 may 2017 Announcement of the unaudited consolidated results for the 1st quarter ended 31 March 2017 24 August 2017 Announcement of the unaudited consolidated results for the 2nd quarter ended 30 June 2017 20 November 2017 Announcement of the unaudited consolidated results for the 3rd quarter ended 30 September 2017 26 february 2018 Announcement of the unaudited consolidated results for the 4th quarter ended 31 December 2017

PROPOSED ANNOUNCEMENT OF QUARTERLY RESULT 2018 17 may 2018 Announcement of the unaudited consolidated results for the 1st quarter ended 31 March 2018 16 August 2018 Announcement of the unaudited consolidated results for the 2nd quarter ending 30 June 2018 19 November 2018 Announcement of the unaudited consolidated results for the 3rd quarter ending 30 September 2018 To Be Confirmed Announcement of the unaudited consolidated results for the 4th quarter ending 31 December 2018

DIVIDEND 1st Interim Dividend of 3.0 Sen Per Share First interim single tier dividend of 3.0 sen per ordinary share for the financial year ended 31 December 2017 29 August 2017 Announcement of the notice of entitlement and payment 18 September 2017 Date of entitlement 28 September 2017 Date of payment 2nd Interim Dividend of 4.0 Sen Per Share Second interim single tier dividend of 4.0 sen per ordinary share for the financial year ended 31 December 2017 26 february 2018 Announcement of the notice of entitlement and payment 23 march 2018 Date of entitlement 19 April 2018 Date of payment

ANNUAL REPORT & ANNUAL GENERAL MEETING 30 April 2018 Date of notice of 4th Annual General Meeting and date of issuance of Annual Report 2017 20 June 2018 Date of 4th Annual General Meeting

SUNCON AT A GLANCE built on more than three decades of leadership and a relentless SunCon believes that delivering landmark projects adherence to our values, the core of which are Integrity, Humility begins with a vision that eventually becomes reality and Excellence. These values are the one driving our delivery. through passion and determination. With every construction project we undertake, we enrich the lives of people, fostering long-term progress and economic growth. Since 1981, we have undertaken more than RM25 billion worth of projects across six countries. Our company and culture are

This annual report describes our responsibilities as a sustainable builder, how we build our projects, and more importantly, how we are as a socially responsible organisation. Diagram below depicts how SunCon's growth which can be categorised in 6 phases.

Malaysia’s Largest Pure Play Construction Company

1981 - CURRENT

2015 Ð CURRENT Cultivating Infrastructure Expertise

2011 Ð 2014 Committing to Sustainability

2010 International Expansion

2005 Ð 2009 Growth

1997 Ð 2004 Foundation Years

1981 Ð 1996

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Sunway Construction Annual Report 2017

A TRACK RECORD Of

36

years

Of ExCELLENCE

2,097

No.1 pure play contractor ted on Bursa Malaysia

including direct workers

880 direct workers quota aproved

Completed construction projects in 6 countries

Top 1 Fleet of machinery include:

Rigs Cranes Cranes lic/Wheeled Excavators ng Girders Formwork System

5 core services end-to-end construction solutions provider

:

Trinidad and Tobago, Taiwan, Singapore, United Arab Emirates, India and Malaysia.

RM25 billion turnover recorded to-date

Invested in cutting-edge technology Virtual Design Construction since 2010 with RM31 million invested to-date

1st construction company to be included in the FTSE4Good Index

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Sunway Construction Annual Report 2017

CORPORATE PROfILE FOUNDATION YEARS 1981 - 1996 We commenced operations as Sungei Way Quarry & Construction Sdn Bhd in March 1981 with our first project being a carpark and road resurfacing works for a shoplot owned by Selangor Properties Berhad in Bukit Damansara. The project was valued at RM21,000 and was completed in two days. Subsequently, we undertook smaller infrastructure projects, and grew our portfolio with residential and commercial projects in Bandar Sunway. In 1992, we had established our precast division in Malaysia and following that, we had set-up our precast division in Singapore in 1994. We also established our engineering, plant and machinery, and geotechnical divisions. Early Days of the Group : Laying the Foundation for Future Growth

GROWTH 1997 - 2004 On 12 June 1997, we listed Sungei Way Construction Sdn Bhd on the Main Board of the then Kuala Lumpur Stock Exchange, which was then renamed as Sunway Construction Berhad in 1999. The listing was an important milestone for the Group, signifying a period of growth, although we were subsequently privatised in August 2004. During this time, we established quality systems for health and safety standards within the organisation. In 2003, we were awarded our first Builder of the Year award by the Malaysian Construction Industry Excellence Award, our first of three. Awards and Accolades from The Malaysian Construction Industry Excellence Awards

INTERNATIONAL EXPANSION 2005-2009 Having built our reputation nationwide, we had then undertaken international projects to gain international exposure in four countries over a short span of four years. In Trinidad and Tobago, we undertook works for constructing a tower for the Ministry of Legal Affairs; in India we worked to construct roadworks for the National Highway Authority of India and the Cochin Port Connectivity Vallapadam; in Singapore we constructed a public housing development project with the Singapore Housing Development Board; in the United Arab Emirates, we constructed two projects, namely Al-Reem Island and Rihan Heights.

Rihan Heights, Abu Dhabi 8

Sunway Construction Annual Report 2017

COMMITTING TO SUSTAINABILITY 2010 Moving to digitalise the construction process for Total Quality Management (TQM) to further improve the sustainability of our processes and business operations, we implemented Virtual Design Construction (VDC) in 2010 and launched our journey towards Total Quality Management in 2010. We were the first in Malaysia to integrated VDC technology into our construction processes. SunCon now embraces 3D (design), 4D (time), 5D (costing) and latest 6D (project life management cycle) to ensure seamless transfer of information and data between project partners. Building Information Modelling (BIM) Integration

CULTIVATING INFRASTRUCTURE EXPERTISE 2011 - 2014 Enhancing on our expertise and experience from constructing the Kajang SILK Highway and seven highways in India, we have continued to foster our proficiency in infrastructure projects by undertaking rail projects. We were awarded our first rail project, the Kelana Jaya Line Light Rail Transit (LRT) Extension in 2011. In 2012 we secured our first Mass Rapid Transit (MRT) Project Sg Buloh - Kajang Package V4 from Section 17 Petaling Jaya to Semantan Portal. In 2013, we were contracted to construct Malaysia's first Bus Rapid Transit (BRT) Sunway Line. Mass Rapid Transit (MRT) Project - Sg Buloh - Kajang Package V4 from Section 17 Petaling Jaya to Semantan Portal

MALAYSIA'S LARGEST PURE PLAY CONSTRUCTION COMPANY 2015 - CURRENT

Iskandar Precast Plant

We are now an integrated construction service Group with capabilities to provide integrated services and products across different phases of construction, from design to completion. Our provision of foundation and geotechnical engineering services; mechanical, electrical and plumbing services; and manufacturing and sale of precast concrete products business complete our service offering as an end to end total construction solution provider. We are also supported by a large fleet of construction machinery and equipment under the machinery and logistics unit. In 2015, the listing of SunCon further enhance Sunway's brand recognition and visibility among existing and potential customers, and will hopefully propel us in winning more contracts locally and abroad. Our share prices have steadily increased, with investors being impartial to our pure play feature, strong order book and net cash balance sheet. In October 2017, SunCon is proud to be awarded our second Light Rail Transit project, LRT 3 which was our biggest contract obtained since incorporation. 9

Sunway Construction Annual Report 2017

PROJECT mILESTONES FOUNDATION YEARS

GROWTH

INTERNATIONAL EXPANSION

1981 - 1996

1997 - 2004

2005 - 2009

1981 · JUNE Carpark and road resurfacing for shoplot complex owned by Selangor Properties Bhd in Bukit Damansara

1997 · SEPTEmBER Completed our first design & build project utilising precast technology - Short Term Car Park, KLIA (RM171 million)

2005 · mARCh Completed our first iconic design & build project - Kuala Lumpur Convention Centre (RM549 million)

1985 Construction of Highway Centre, Petaling Jaya

1999 · JUNE Completed our first medical centre Sunway Medical Centre

Construction of Subang Interchange from Federal Highway to Subang Jaya

1999 · JULY Completed our first international project - Provision of Construction Management Services for The Combined Cycle Power Plant (960 MW) Project, Hai-Fu, Taiwan

2005 · mAY First venture into Trinidad & Tobago Ministry of Legal Affairs Tower (TT369 million)

1989 Infrastructure works in Section 6, 11, 12 and 13, Shah Alam 1989 · 31 JULY Single-storey medium cost houses, Phase 1A, Bandar Sunway 1989 · 30 SEPTEmBER Construction of earlier abandoned Jetty and Public Amenities, Kuah, Langkawi 1991 · NOvEmBER Commenced construction of Menara Sunway, Sunway Construction's corporate HQ (RM56 million for Phase 1 and Phase 2) 1992 · NOvEmBER Completed the access road to Pulau Lumut & South Connection, Port Klang 1996 · JANUARY Completed our first hotel development Sunway Lagoon Resort Hotel (RM161 million) 1996 · NOvEmBER Completed our first mall development - Sunway Pyramid Shopping and Convention Centre (RM209 million)

2001 · JUNE First venture into India - Belgaum Bypass, for the National Highways Authority of India (97.6 crores)

2005 · JULY Simultaneous award by ASEAN Development Bank aided projects by National Highway Authority of India East-West Corridor roadworks, Rajasthan, India (287 crores) East-West Corridor roadworks, Uttar Pradesh, India (415 crores)

2002 · 30 SEPTEmBER 2006 · OCTOBER Completed the Ministry of Finance First venture into the Middle East Building, our first government building in Putrajaya (design & build) (RM139 million) Al-Reem Island Development, Abu Dhabi, on a joint venture with a Malaysian 2004 · 11 JUNE consortium (AED1.33 billion) Completed our first turnkey project 2007 · JUNE Kajang-SILK Highway (RM1.05 billion) Awarded our first public housing development project with Singapore Housing Development Board, City View at Boon Keng (SGD23 million) Completed our first education institution - Monash University Malaysia Campus (RM119 million) 2007 · AUGUST Seventh and final project in India. Cochin Port Connectivity Vallapadam, Cochin, India (330 crores) 2007 · SEPTEmBER Awarded Ministry of Housing and Local Government & Ministry of Women, Family and Community Development Building in Putrajaya (RM520 million) 2008 · NOvEmBER Awarded our single largest overseas contract to date - Rihan Heights, Abu Dhabi (AED1.88 billion) Completed our first high-tech manufacturing facility on a fasttrack design & build approach - Spirit Aerosystems Facility, Subang (RM120 million, completed in 11 months)

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Sunway Construction Annual Report 2017

COMMITTING TO SUSTAINABILITY

CULTIVATING INFRASTRUCTURE EXPERTISE

MALAYSIA'S LARGEST PURE PLAY CONSTRUCTION COMPANY

2010

2011 - 2014

2015 - CURRENT

2010 First construction company in Malaysia to implement Virtual Design and Construction (VDC)

2011 · OCTOBER First Light Rail Transit project - LRT Package B, Kelana Jaya Line Extension (RM569 million)

2015 · SEPTEmBER Parcel F in Putrajaya (RM1.60 billion)

2010 · mAY Piling for Sunway Pinnacle, Bandar Sunway (RM88 million)

2011 · DECEmBER Largest piling works by Sunway Geotechnics - Sunway Velocity Phase 3 (RM291 million) 2012 · fEBRUARY Piling works by Sunway Geotechnics Sunway Velocity Mall (RM179 million) 2012 · JUNE First Mass Rapid Transit Line 1 : Sungai Buloh - Kajang (SBK) Package V4 from Section 17 Petaling Jaya to Semantan Portal (RM1.18 billion) 2013 · mARCh Awarded Malaysia's first elevated Bus Rapid Transit - BRT Sunway Line (RM452 million) 2014 Precast division, Sunway Concrete Products (S) Pte Ltd produced its first 3D Precast Bathroom Units (PBU) and had subsequently secured 3 PBUs project in 2015 2014 · OCTOBER Mechanical, Electrical and Plumbing works for Pasar Seni MRT Station, Kuala Lumpur (RM23 million)

2016 · APRIL Mass Rapid Transit Line 2 : Sungai Buloh Serdang - Putrajaya (SSP) Package V201 from Sungai Buloh to Persiaran Dagang (RM1.18 billion) 2016 · DECEmBER Completed and Opening of new Sunway Velocity Mall, Cheras, Kuala Lumpur (RM330 million) 2017 · mAY Completed and Opening Sunway Medical Centre Tower C (RM167 million) 2017 · SEPTEmBER Awarded first east coast project at Kelantan - PPA1M apartment (RM581 million) Completed and Opening of Sunway Velocity Hotel, Kuala Lumpur (RM78 million) 2017 · OCTOBER Second Light Rail Transit project and largest local project - Package GS07-08 for Light Rail Transit Line 3 from Bandar Utama to Johan Setia (RM2.18 billion) 2017 · NOvEmBER Handover and obtained CPC for Sunway Citrine at Iskandar (RM213 million) 2017 · DECEmBER Opening of Coastal Highway Southern Link (RM170 million)

The Opening of Coastal Highway Southern Link (CHSL) (From left) · Anwar Syahr bin Abdul Ajib Ð UEM Sunrise Berhad Managing Director · Puteri Adib Azhari Daud Ð Iskandar City Council Mayor · Datuk Ir Hasni Mohammad Ð State Public Works Committee, State Rural and Regional Development Committee · Tan Sri Dr Jeffery Cheah AO Ð Founder and Chairman of Sunway Group · Eric Lee Ð Executive Director of Mulpha International Bhd. 11

Sunway Construction Annual Report 2017

This year, the design f...