annual report 2013

Celebrating

The pearl symbolises the creation of something rare, admirable and of distinct value

catalysed by organic action over many years of incremental formation.

Similarly, the IJM Group, through its outstanding performance over the last three decades,

has built a distinctive sheen of assured quality and delivery. We have grown exponentially

since 1983, becoming a reputed brand, backed by an excellent track record attested by

numerous awards and landmark projects. The IJM Group today is a leading conglomerate

with strong international presence.

Celebrating

The pearl symbolises the creation of something rare, admirable and of distinct value

catalysed by organic action over many years of incremental formation.

Similarly, the IJM Group, through its outstanding performance over the last three decades,

has built a distinctive sheen of assured quality and delivery. We have grown exponentially

since 1983, becoming a reputed brand, backed by an excellent track record attested by

numerous awards and landmark projects. The IJM Group today is a leading conglomerate

with strong international presence.

annual report 2013

Celebrating

The pearl symbolises the creation of something rare, admirable and of distinct value

catalysed by organic action over many years of incremental formation.

Similarly, the IJM Group, through its outstanding performance over the last three decades,

has built a distinctive sheen of assured quality and delivery. We have grown exponentially

since 1983, becoming a reputed brand, backed by an excellent track record attested by

numerous awards and landmark projects. The IJM Group today is a leading conglomerate

with strong international presence.

SINCE 1983, WE HAVE GROWN FROM STRENGTH TO STRENGTH AS A HOMEGROWN DEVELOPER,

PIONEERING AN ARRAY OF LANDMARK PROJECTS

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1983-1987

1983Incorporated as Solidstate Sdn Bhd on 16 July 1983.

1984Renamed as IJM Engineering & Construction Sdn Bhd with paid-up capital of RM31 million following acquisitions of IGB Construction Sdn Bhd, Jurutama Sdn Bhd and Mudajaya Construction Sdn Bhd in a bid to compete more effectively. Expanded into quarrying and property development, and invested into Singapore. Paid a maiden dividend of 10% gross.

1985Secured first project in Sydney, Australia and built residential units in Florida, USA. Ventured into oil palm cultivation in Sabah. Acquired Sharidal Complex (now Wisma IJM), Petaling Jaya for use as Head Office.

1986Listed on Main Board of KLSE (now Bursa Malaysia) with issued capital of RM50 million. Completed Kuala Lumpur-Seremban Toll Expressway and Kelab Darul Ehsan.

1987Established IJM International Limited as a vehicle for overseas investments. Completed the Santubong Bridge, Kuching and 548-bed turnkey hospital project, Teluk Intan.

Mudajaya Construction Sdn BhdJurutama Sdn Bhd

IGB Construction Sdn Bhd

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5

1. Santubong Bridge, Sarawak

2. Wisma IJM (after refurbishment), Petaling Jaya

3. Residential units at Southfork, USA

4. KL-Seremban Highway

5. First Oil Palm Nursery in Desa Talisai Estate, Sabah

6. Kelab Darul Ehsan

OVER THE YEARS, WE HAVE REFINED A DIVERSE ARRAY OF EXPERTISE AND CAPABILITIES WHICH BRING SYNERGY

AND ADDED VALUE TO OUR PROJECTS

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1988-1992

1988 Secured first road project in Bangladesh. Awarded the New Klang Valley Expressway (Bukit Raja to Subang) and the first package of North South Expressway in Malaysia and redevelopment of Gleneagles Hospital in Singapore.

1989Renamed as IJM Corporation Berhad with a new logo to reflect the Group’s diverse business activities. Awarded the construction of Sarawak Shell Head Office Complex, Lutong and completed 1,100 units of privatised housing scheme at Batu Lanchang, Penang.

1990Completed rights issue and raised share capital to RM71 million. Awarded the turnkey construction of National Heart Institute and construction of a resort hotel in Mauritius. Completed the New Klang Valley Expressway and St George Building Society Building in Sydney, Australia.

1991Further expansion into quarrying with the acquisition of Malaysian Rock Products Sdn Bhd.

1992Issued RM63 million nominal loan stocks to finance plantation and property projects. Implemented the first Employee Share Option Scheme (ESOS).

1. Further expansion into quarrying

2. Gleneagles Hospital, Singapore

3. St George Building Society Building, Sydney

4. Sarawak Shell Headquarters, Lutong

5. New Klang Valley Expressway (Bukit Raja to Subang)

6. National Heart Institute

7. North-South Expressway

7

4IJM

CORPORATIONBERHAD

(104131-A)

SHAPING LANDMARKS OF DISTINCTION THE WORLD OVER, IJM’S CULTURE OF INTEGRITY AND RELIABILITY GAINS IT A

SUSTAINABLE PORTFOLIO OF PROJECTS

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1993-1997

1993Share price hit an all-time high of RM11.80. Ventured into Vietnam to develop a water treatment plant in Ho Chi Minh City. Completed three major highway packages of the North-South Expressway. Commissioned the first palm oil mill in Sabah.

199470% owned Nilai Cipta Sdn Bhd undertook the first government building complex privatisation in Malaysia. Major projects secured included the Ministry of Works Building and Renaissance and New World Hotels in Kuala Lumpur. The education division, Kolej Antarabangsa commenced its maiden intake of students for the matriculation and undergraduate programmes.

1995Share capital exceeded RM300 million with bonus issue, ICULS conversion and ESOS. Total assets breached RM1 billion. Adopted “Excellence Through Quality” as the corporate motto.

1996Invested 20% in Guangdong Provincial Expressway and 25.5% in Yangzhong Changjiang Great Bridge in China and 25% in Western Access Tollway in Buenos Aires, Argentina. Industrial Concrete Products Berhad (ICP) was listed on the Main Board of Bursa Malaysia. Awarded the internationally recognised ISO 9001 certification.

1997Secured Putrajaya Hospital and Health Clinic projects as the turnkey contractor. Awarded the contract to build the Jelutong Expressway. Initial foray into India via 60% interest in the Gautami power plant concession.

1. Ministry of Works Building, Kuala Lumpur

2. First Palm Oil Mill in Sabah

3. Western Access Tollway, Argentina

4. Industrial Concrete Products’ Piles

5. Guangdong Provincial Expressway, China

6. Renaissance Hotel, Kuala Lumpur

7. Gautami Power Plant, India

8. Water Treatment Plant, Vietnam

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IN THE LAST THREE DECADES WE HAVE CULTIVATED AN INTERNATIONAL REPUTE FOR

RELIABILITY AND QUALITY

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1998-2002

1998Despite the Asian financial crisis, IJM completed projects such as the National Theatre and 455-room Avilion Hotel in Australia. Secured the Mumbai-Pune Expressway and Chennai By-pass projects in India.

1999Shareholders’ funds and total assets topped RM1 billion and RM2 billion respectively. Major projects completed were the Mid Valley Megamall in Kuala Lumpur and 278-unit Horden Towers in Sydney, Australia.

2000First local construction company awarded the OHSAS 18001 on Occupational Health and Safety and the Malaysian International Contractor of the Year Award. Divested the education division to refocus on core operations. Issued RM150 million bonds with warrants.

2001Secured RM1.77 billion construction contracts – highest ever in a single year since incorporation, including the prestigious Putrajaya Convention Centre and Putrajaya Primary Distributor Road. Invested in the first toll road concession in India, the Swarna Tollway in Andhra Pradesh. Awarded the Malaysian Builder of the Year.

2002Won the Malaysian Business Corporate Governance and KLSE Corporate Merit Awards. First Malaysian company to develop an Integrated Township in Hyderabad, India. IJM Building Systems Sdn Bhd was accredited by the Malaysian Book of Records for the production of the first lightweight oil palm fibre reinforced cement composite panels.

1. Avilion Hotel, Australia

2. Rain Tree Park, India

3. Horden Towers, Sydney

4. Putrajaya Convention Centre

5. Mid Valley Megamall

6. National Theatre

7. Mumbai Pune Expressway, India

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REDEFINING EXCELLENCE THROUGH INNOVATION, IJM HAS EVOLVED WITH RESILIENCE AND CONTINUE TO

MEET EMERGING DEMANDS AND EXPECTATIONS

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2003-2007

2003Received the CIDB Project and MITI Industry Excellence Awards. IJM Plantations Berhad (IJMP) was listed on Bursa Malaysia’s Main Board. Invested in the Second Vivekananda Bridge in Kolkata, India.

2004/2005*ICP became an IJM subsidiary. Secured the first Middle East project – Fortune Tower. Issued RM300 million CP/MTN papers. Awarded the construction of Kajang-Seremban Highway, Menara Commerce-Asset and Islamic Art Museum Extension projects.

* Represented 15 months ended 31 March 2005

2006More than 50% construction order book consisted of overseas jobs. Achieved MS ISO 14001:2004 on Environmental Management Systems. Introduced tallest building development, PJ8 Development in Selangor. Completed notable projects like the cable-stayed bridge over Sungai Prai and Butterworth Outer Ring Road (Packages 3 & 4) in Penang and the Impiana Hotel, Kuala Lumpur.

2007Secured our first Malaysian toll road concession through Lebuhraya Kajang-Seremban. Overseas, the Group’s successes included the Al’ Reem Island Development in the Gulf States, Delhi Metro and Jhansi-Sagar road projects in India.

1. Kajang-Seremban Highway

2. Butterworth Outer Ring Road Project

3. IJM Plantations Berhad listed on

Bursa Malaysia’s Main Board

4. Second Vivekananda Bridge, India

5. PJ8 Development

6. Al Reem Island, Abu Dhabi

7. Fortune Tower, Dubai

8. Menara Commerce-Asset

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DELIVERING SUSTAINABLE VALUE, IJM RESPONSIBLY MEETS INDUSTRY STANDARDS AND SEEKS OPPORTUNITIES TO

CONTRIBUTE TO A BETTER FUTURE FOR ALL

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1. The Light Waterfront, Penang

2. Grand Hyatt, Kuala Lumpur

3. Planting in Kalimantan

4. New Pantai Expressway

5. Kuantan Port

2008-2013

2008Acquired the Road Builder (RBH) Group and expanded the concession assets portfolio with Kuantan Port, Kemaman Port, New Pantai Expressway and Besraya Highway. Construction order book soared to RM6 billion. Commenced the DxP oil palm seed production. Unveiled the prestigious ‘The Light’ waterfront development in Penang. Total assets exceeded RM11 billion for the first time.

2009Secured major projects including Grand Hyatt Hotel in Kuala Lumpur, Electrified Double Track from Seremban to Gemas (Package 1) and Six Laning of Chilkaluripet-Vijayawada Section in India. ICP was delisted and became a wholly owned subsidiary. Commenced oil palm planting in Kalimantan, Indonesia.

2010Completed various rights and bonus issues by IJM, IJM Land and IJMP. Received the NACRA Industry Excellence Awards (Construction and Infrastructure) for the sixth consecutive year and the Contractor of the Year Award.

2011IJM Land was the first developer in Penang to be awarded the Green Building Index certification for high-rise properties. Secured sizeable jobs including Second Penang Bridge-Batu Kawan Expressway (Package 3B), National Cancer Institute and Pahang-Selangor Raw Water Transfer Project.

2012Secured the first aboveground Klang Valley Mass Rapid Transit Package and Perkeso Rehabilitation Centre in Melaka. Awarded the Malaysian Investor Relations Association Award for Best Investor Relations Website (Mid Cap).

2013Achieved our highest ever pre-tax profit of RM836 million and total assets in excess of RM15 billion. Acquired 9% stake in Scomi Group Berhad. Associate company, Kumpulan Europlus Bhd, secured the 233km West Coast Expressway concession.

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Having turned 30 on 16 July 2013, IJM attributes its decades of growth to strong fundamentals, strategic foresight,

professionalism, performance and good governance. These attributes continue to sustain the Group’s momentum

into the future.

ContentsORGANISATION & STEWARDSHIP018 Board of Directors & Secretary020 Profile of Directors026 Group Organisation Chart028 Profile of Senior Management

018

FRAMEWORK & COMMITMENTS004 IJM Charter005 Our Vision, Mission and Values006 Corporate Profile008 Awards & Accolades009 IJM in the News010 Group Structure012 Corporate Diary

004BUSINESS REVIEW & REPORTS054 Chairman’s Statement060 CEO’s Review of Operations084 Corporate Governance Statement094 Audit Committee Report097 Statement on Risk Management

and Internal Control 102 Quality Report105 Health, Safety and

Environment Report 054

29th Annual General Meeting

IJM CORPORATION BERHAD (104131-A)

Venue : Victorian Ballroom, Level 1, Holiday Villa Hotel & Suites Subang 9 Jalan SS12/1, 47500 Subang Jaya Selangor Darul Ehsan

Date : Tuesday, 27 August 2013

Time : 3.00 p.m.

SHAREHOLDER SUMMARY OF INFORMATION036 Group Financial Highlights038 Group Quarterly Performance040 Statement of Value Added

& Distribution041 Information for Investors043 Analysis of Shareholdings

& Warrantholdings051 Employees &

Productivity 036 Y. Bhg. Tan Sri Abdul Halim bin AliChairman

Dato’ Teh Kean MingCEO & Managing Director

FINANCIAL STATEMENTS & OTHERS130 Financial Statements279 List of Material Properties281 Notice of Annual General

Meeting283 Form of Proxy285 Corporate Information

CORPORATE RESPONSIBILITY117 Marketplace119 Environment121 Community125 Workplace

117 130

FY2013 COMPLETED PROJECTS

• Three New Container Berths in Kuantan Port • Kolej Universiti Insaniah in Kedah • The Light Linear and Light Point condominiums in Penang • Bukit Mandarina Phase 5 - Semi Detached Homes in Cheras • Persada Green Clubhouse in Puchong

BUILdING oN STRENGTHS

CONSTRUCTION

to Group Revenue in FY2013 and an average of

CoNTrIBUTed

37%

37% in the last 5 years

PROFIT BEFORE TAx

+86%

from last year on the back of effective execution of major

local projects

Framework & Commitments

004 IJM Charter

005 Our Vision, Mission and Values

006 Corporate Profile

008 Awards & Accolades

009 IJM in the News

010 Group Structure

012 Corporate Diary