Petaling Jaya, Thursday, 10 June 2010: UEM Land Holdings Berhad is committed to building a sustainable development and delivering excellence to achieve its quest as the leading global community builder in the region.

UEM Land Holdings Berhad Chairman, Tan Sri Dr Ahmad Tajuddin Ali said, “We are expecting a much better year for UEM Land with significant development progress taking place in 2010, through the introduction of new projects and more aggressive launching of new phases for our existing projects in line with the recovering economy”.

“Our goal is to continue with our current and planned development initiatives in Nusajaya and ensure that it achieves the “Tipping Point” by 2012,” Tan Sri Dr Ahmad Tajuddin said during UEM Land Holdings Berhad’s 2nd Annual General Meeting at Persada PLUS today.

Notwithstanding the economic challenges last year, UEM Land performed credibly as it continued to capitalize on Nusajaya’s strategic location and unique selling propositions, while at the same time leveraging on the growth potential of Iskandar Malaysia.

For Financial Year 2009 (FY2009), the Group achieved total revenue of RM403.1 million and a Profit After Tax and Minority Interest (PATAMI) of RM114.6 million compared with RM511.6 million and RM74.2 million respectively in Financial Year 2008 (FY2008). The decline in revenue was expected in view of the dampened market and economic conditions, particularly in the 1st half of 2009. Nevertheless, the Group was able to mitigate the impact of the lower revenue on the bottom line by improving product margin and focusing on higher margin products resulting in overall PATAMI for FY2009 improving by RM20.5 million against the previous financial year.

The higher profits achieved for the year has allowed the Group to record a Return on Equity (ROE) of 8.3%, surpassing the ROE target of 6.0% announced in February 2009. For Financial Year 2010 (FY2010), the Group will maintain the Headline KPI of Revenue Growth and ROE with the following new targets: Revenue Growth of 35 % and ROE of 6.0%.

In view of the actual contraction in revenue for FY2009, a higher target of 35 % had been set in FY2010 to bring the Group back on track with its initial targets. Although profits are expected to increase in line with the targeted revenue growth, the ROE target is maintained at 6.0% to reflect the short-term effects of the enlarged share capital base of the Company following the completion of the Rights Issue on 29 April 2010 which will help repay the company’s borrowings, reduce interest payments and improve cash flows.

Tan Sri Dr Ahmad Tajuddin said various milestones took place that contributed to the growing momentum of Nusajaya. They include the relocation of the State Government departments to Kota Iskandar which will provide major boost in the pushing the project forward and the completion of the Puteri Harbour clubhouse, promenade and public marina.

Another milestone was achieved when Puteri Harbour waterfront development won the prestigious Real Estate Federation (FIABCI) Malaysia Award for the Best Master Plan category in 2009. Puteri Harbour was also recently selected as the runner-up in the Master Plan category for the 2010 International FIABCI Prix d’Excellence Award while Horizon Hills, a mixed residential golf development project by a joint venture between UEM Land and Gamuda Berhad, won the Best Golf Development with a five-star rating for Malaysia and Asia Pacific at the CNBC Asia Pacific Residential Property Awards in 2009.

Besides that, 2009 also saw commendable progress being made for UEM Land’s other projects in Nusajaya such as SiLC, Afiat Healthpark, East Ledang and Nusa Idaman.

With this progress, the Nusajaya vision to become a world-class city is well into execution and as the key catalyst for growth in Iskandar Malaysia, Nusajaya’s continued development is critical to the successful transformation of the economic region into a strong, sustainable metropolis of international standing.

Whilst Nusajaya remains as UEM Land’s key focus, the company continues to look out for opportunities to diversify its income stream and geographical location. This progress has been initiated with the acquisition of the 98-acre land, adjacent to the Central Business District in Cyberjaya in 2008, for a high-end gated community residential development called Symphony Hills which will be launched in June.

Moving forward, UEM Land will continue to spread its risks and improve its earnings generation potential including working with strategic partners to fast-track the development of the land banks as well as explore opportunities both locally and internationally.