ANNUAL REPORT 2017 - Welcome to GuocoLand …

1 ANNUAL REPORT 2017 Tanjong Pagar Centre, SingaporeListed on the Singapore Exchange Securities Trading Limited since 1978, GuocoLand Limited ( GuocoLand ) is a premier property company with operations in the geographical markets of Singapore, China, Malaysia and Vietnam. In 2017, GuocoLand marked its expansion beyond Asia into the new markets of the United Kingdom and Australia through a strategic partnership with Eco World Development Group Berhad in Eco World International Berhad. Headquartered in Singapore, the principal business activities of GuocoLand and its subsidiaries ( the Group ) are property development, property investment, hotel operations and property management, and it is focused on achieving scalability, sustainability and growth in its core markets. The Group s portfolio comprises residential, hospitality, commercial, retail, mixed-use and integrated developments spanning across the region.

2 In recognition of its portfolio of quality, innovative developments and commitment to business excellence, the Group has been honoured with numerous awards and accolades both in Singapore and internationally. As at 30 June 2017, the Group s total assets amounted to S$ billion. corporate profiLecontents01 Corporate Profile02 Chairman s Statement04 Financial Highlights06 Business Review08 Board of Directors11 Key Senior Management12 Country Portfolio: Singapore20 Country Portfolio: China26 Country Portfolio: Malaysia32 Country Portfolio: Vietnam34 Corporate Social Responsibility38 Corporate Governance54 Financial Section150 Shareholding Statistics152 Notice of ANNUAL General Meeting Corporate Informationa premier property company with operations in singapore, china, malaysia and Vietnam, GuocoLand expanded beyond asia into the uK and australia in 2017.

3 GuocoLand s total assets amounted to s$ billion as at 30 June s statementas a result of profit recorded for the Year, equity attributable to shareholders grew 8% to $ billion. the Board is pleased to propose a first and final one-tier tax exempt ordinary dividend of 7 cents per share for the Year. Dear Shareholders,On behalf of the Board of Directors, I am pleased to present the ANNUAL REPORT of GuocoLand Limited and its subsidiaries ( the Group ) for the financial year ended 30 June 2017 ( the Year ).financiaL performanceFor the Year, the Group reported revenue of $ billion, an increase of 5% as compared to the previous year on the back of higher sales and progressive revenue recognition from our residential projects in Singapore. Profit attributable to shareholders was $ million as compared to $ million recorded in the previous year, due to a one-time gain from the disposal of the Dongzhimen project in Beijing which was recognised in the previous year.

4 This Year s profit was boosted by other income of $ million, mainly from fair value gains from investment properties of $ million, contributed largely by Tanjong Pagar Centre s Guoco Tower. As a result of profit recorded for the Year, equity attributable to shareholders grew 8% to $ billion. The increase was partially offset by close to $100 million of dividends paid to shareholders in November 2016. Net asset value per share grew 8% to $ as at 30 June 2017. diVidendThe Board is pleased to propose a first and final one-tier tax exempt ordinary dividend of 7 cents per share for the Year. This is higher than the ordinary dividend of 5 cents per share in the previous year, excluding the special dividend distributed due to the one-time gain from the disposal of the Dongzhimen project in Beijing.

5 The proposed higher dividend takes into consideration the Group s financial performance, working capital requirements and future investment plans. The dividend will be paid to shareholders on 21 November 2017, subject to shareholders approval at the ANNUAL General Meeting to be held on 19 October the Year, the Group continued to execute on its strategic plans for sustainable growth and to diversify its income stream. With selective land acquisitions made in Singapore, Chongqing in China and Malaysia s 1 MTI Narrows 2017 GDP Growth Forecast to to Per Cent , Ministry of Trade and Industry, 11 August International Monetary Fund, World Economic Outlook Update, July 2017. 3 Economic and Financial Developments in Malaysia in the Second Quarter of 2017 , bank Negara Malaysia, 18 August LIMITED2 Klang Valley, the Group has built a substantial land bank for its property development business.

6 To diversify income stream, the Group has expanded beyond Asia into new markets in the United Kingdom and Australia. The Group has formed a strategic partnership with Eco World Development Group Berhad, whereby both parties hold an equal equity stake in Eco World International Berhad, which currently has four development projects under construction in London and capitaL manaGementMainly due to the partial financing of new investments with loans and borrowings during the Year, the Group s total debt increased by 13% to $ billion, compared to a year ago. As at 30 June 2017, the Group s gearing was at times. The Group will continue its prudent capital management approach, and will seek to maintain an optimal level of gearing while balancing the capital needs for funding future growth. Besides drawing on bank borrowings, the Group diversified its funding sources with four fixed rate medium term note issuances in the past Year, which were well-received by the market.

7 The Group has sufficient financial resources to capitalise on investment opportunities when they arise. outLooKThe Ministry of Trade and Industry expects Singapore s GDP growth for the full year to be around barring unexpected outcomes in the global economy and key sectors in the domestic economy for the rest of the year 1. This is slightly higher than the growth recorded for 2016. According to the International Monetary Fund, China is expected to grow at in 2017, the same rate as in 20162. According to the bank Negara Malaysia, the Malaysian economy is expected to expand by more than in 2017 3, which is higher than the growth recorded in 2016. Notwithstanding the more positive outlook, downside risks remain amidst global uncertainties and the Group expects business conditions in the countries in which it operates to continue to be challenging.

8 While there have been some positive signs in the property market in Singapore, the government has announced its intention to keep cooling measures largely in place. In China, the property market has also showed signs of moderating in some of the larger cities. Land tenders in both Singapore and China continue to be highly competitive. We will remain focused on delivering our pipeline of new development projects and monetising our development inventory. The Group will also remain selective in its search for suitable investment opportunities to add value to the portfolio. a note of appreciationOn behalf of the Board, we would like to thank our valued shareholders, customers, business associates and investors, amongst others, for their continued support to the Group. I also wish to take this opportunity to thank my fellow Board members for their guidance and counsel.

9 Last but not least, I would like to express my appreciation to the management and staff of the Group for their contributions, commitment and Lee Kim pooChairman30 August 2017 ANNUAL REPORT 20173 Financial highlightsYEAR ENDED 30 JUNE20172016201520142013$ 000$ 000$ 000$ 000$ 000 STATEMENTS OF PROFIT OR LOSSR evenue by operating segmentsGuocoLand Singapore988,168651,319 714,682 717,337526,642 GuocoLand China27,638272,374 400,995 411,48852,896 GuocoLand Malaysia94,506131,082 39,799 122,17670,431 GuocoLand Vietnam2,8284,965 4,416 32627,455 Others5130 29 2318 Total revenue1,113,1911,059,770 1,159,921 1,251,350677,442 Profit before tax455,800773,158 318,661 410,01398,516 Profit attributable to equity holders of the Company3 5 7,1 8 5606,687 226,352 304,22540,490 Proposed dividends in respect of ordinary shares177,6849 9, 87 9 55,488 55,48855,488 STATEMENTS OF FINANCIAL POSITION Property, plant and equipment623,806494,780 435,227 405,551398,849 Investment properties3,053,2872,711,193 2,486,915 2,305,0352,056,102 Associates and joint ventures675,616427,945 461,540 496,425492,365 Inventories and deposits for land3,265,3972,410,452 4,711,235 4,287,1934,826,747 Cash and cash equivalents1,118,4831,430,249 663,073 716,006934,340 Other assets219,086431,986 753,768 509,249446,480 Total assets8,955,6757,906,605 9,511,758 8,719,4599,154,883 Total ordinary equity3,529,8623,276,147 2,936,448 2,620,7912,446,562 Perpetual securities 200,295 199,795199,4063,529,8623,276,147 3,136,743 2,820,5862,645,968 Non-controlling interests303,571166,059 159,502 152,945129,133 Loans and borrowings4,344,5083,830,296 5,280,009 5,066,7745,372,335 Other liabilities777,734634,103 935,504 679,1541 , 0 0 7.

10 4 4 7 Total equity and liabilities8,955,6757,906,605 9,511,758 8,719,4599,154,883 RATIOSNet asset value per share ($) earnings per share2 (cents) per ordinary share (cents)793 5 551 The amount is derived after deducting dividends to be paid in respect of ordinary shares of the Company which were held by the Trust for Executives Share Option Earnings is defined as profit attributable to ordinary equity holders of the Included a special dividend of 4 cents per ordinary share. GuocoLand LIMITED4 GROUP REVENUE ($ MILLION)GROUP TOTAL ASSETS ($ MILLION)BASIC EARNINGS PER ShARE6 (CENTS)GROUP PERFORMANCE ($ MILLION)TOTAL EQUITY4 AND NET DEBT5 ($ MILLION)NET ASSET VALUE PER ShARE ($)2013$9,155m2014$8,719m2015$9,512m2016 $7,907m2017$8,956m2,4112,7114954281,4304 327544,7112,4874354626634 Total equity is defined as total ordinary equity and perpetual securities.