Fuelled by passion to be one of the premier property ... - insage

Fuelled by passion to be one of the premier property developers,

we will continue to deliver to our customers products that

are intrinsically linked with our Tropicana brand.

Back in 2013, we changed our name to

Tropicana Corporation Berhad – a name

synonymous with the prestigious Tropicana Golf

& Country Resort. This sets a clear direction

for the Group and with it, we began to redefine

both ourselves and our integrated developments

by leveraging on the iconic ‘T’ branding.

After more than two decades in the

property industry, and having pioneered

residential resort-style living with the

advent of Tropicana Golf & Country Resort

and Tropicana Indah Resort Homes, we

established a unique DNA that sets us

apart. This DNA focuses on accessibility,

connectivity, innovative concepts and

designs, generous open spaces, amenities,

facilities, multi-tiered security and quality.

It is said that home is where the heart is. This rings especially true as we have always believed

in building homes that not only appeal to the eyes and minds of our consumers,

but to their hearts as well.

Embodied by the core essence

of innovation, creativity, quality

and excellence, we strive to

redefine the art of living.

GROWTH ROADMAP AT A GLANCE

Creating Value, To Build

3 INTERNATIONAL SCHOOLSat 3 main townships

Group Net Gearing improved from 0.55x in FY2013 to

0.27x in FY2017

Total Revenue

RM4.72 BILLIONover the past 3 years

Total Development Properties Sales

RM1.0 BILLIONin FY2017

Completed Developments

49 with

15 IN PROGRESS in FY2017

Group Shareholders’ Funds

rose 27% from RM2.60 billion in FY2013 to


Tapping into current remaining

Landbank of 889 Acres

with potential GDV of

RM42.1 BILLION

Total Assets


Net Assets Per Share

RM2.25in FY2017

Unbilled Sales


CONTENTSThis annual report is available at

www.tropicanacorp.com.my

SEC 1ABOUT TROPICANA

4 Vision & Business Principles5 Tropicana Corporation Berhad6 Significant Milestones8 Corporate Information9 Corporate Structure10 Signature Developments12 Awards & Accolades14 A Commitment to Excellence16 Event Highlights18 Tropicana In the News

SEC 2STRATEGIC PERFORMANCE

22 Management Discussion & Analysis30 Performance at a Glance32 Financial Highlights & Insights34 Value Added Statement35 Investor Relations36 Quality Assurance

SEC 3LEADERSHIP

40 Profile of Founder & Advisor 40 Profile of Directors45 Profile of Senior Management

SEC 4SUSTAINABILITY

48 Introduction to Sustainability 52 Economic Contributions 53 Social Engagement58 Environmental Conscientiousness

SEC 5GOVERNANCE

62 Corporate Governance Overview Statement72 Additional Compliance Information73 Statement on Risk Management & Internal Control75 Audit Committee Report

SEC 6FINANCIAL STATEMENTS

80 Directors’ Report85 Statement by Directors85 Statutory Declaration86 Independent Auditors’ Report90 Statements of Comprehensive Income91 Statements of Financial Position - Group93 Statement of Financial Position - Company94 Statements of Changes in Equity - Group 95 Statement of Changes in Equity - Company96 Statements of Cash Flows - Group98 Statement of Cash Flows - Company99 Notes to the Financial Statements

OTHER INFORMATION

185 Analysis of Shareholdings187 Analysis of Warrant Holdings189 List of Properties195 Corporate Directory197 Notice of Annual General Meeting

• Proxy Form

Fun Run, Tropicana Heights

Walk & Ride Yellow Event, Tropicana AmanPaisley Serviced Residences, Tropicana Metropark Dalia Residences, Tropicana Aman

Poised to be the desired address for modern families, Tropicana Aman is a self-contained township that has clearly defined the ability for man and nature to coexist in harmony.

The largest self-contained township development by Tropicana that spreads across 863 acres, Tropicana Aman comes with its very own 85-acre Central Park, a community hub and four residential phases, ringed by a 100-foot wide, tree-lined boulevard. Exuding the feeling of living in a park and peppered with the Yellow Bicycle sign, the overall development beckons residents to slow down from the stresses of

modern life, breath in the fresh air and enjoy the beauty of nature.

For more info, please log on to www.tropicanaaman.com.my

C U LT I VAT I N G A B A L A N C E D L I F E S T Y L E

ABOUT TROPICANA> SEC 1 < SEC 2 • SEC 3 • SEC 4 • SEC 5 • SEC 6

4 TROPICANA CORPORATION BERHAD / Annual Report 2017

VISION & BUSINESS PRINCIPLES

OUR VISIONWe strive to be the leading property group that delivers innovative and

quality products that enhance stakeholders’ value.

OUR BUSINESSPRINCIPLES

OUR TEAMWORK

We have built a nurturing organisation, with shared values and culture, and we are motivated to think

and deliver as One Team and One Organisation with One Vision.

OUR COMMITMENT TO OUR SHAREHOLDERS

In practicing the principles of good governance, we endeavour to create shareholder value through

our sustainable strategies, full accountability, business continuity and profitability.

OUR PEOPLE ARE OUR GREATEST ASSETS

As a performance-driven organisation, our greatest assets are our people and their dedication to deliver the best. We are not only committed to the growth of our human capital, but we also encourage a culture

of excellence and leadership towards greater successes.

OUR CUSTOMERS COME FIRST

In delivering innovative products and services, we work towards optimum customer satisfaction.

We recognise and reward our loyal customers, who are our pillars of strength and a driving force behind

the success of our Company.

The chic and sleek architecture of The Residences at Kuala Lumpur City Centre


5TROPICANA CORPORATION BERHAD / Annual Report 2017

TROPICANA CORPORATION BERHAD

Incorporated in 1979, Tropicana Corporation Berhad (“Tropicana” or “Group” or “Company”) is a rapidly evolving company with diversified business interests including property and resort development,

property investment, manufacturing and investment holding.

Following the strong performance shown across its principal business segments, the Company was listed on the Main Board of Bursa Malaysia in 1992. Today, 90% of the Group revenue is generated by property development.

Since its rebranding exercise in 2013, Tropicana continued to build on its reputation of excellence by building quality homes and integrated developments that reflect the growing aspirations of a broad range of home purchasers across Malaysia.

Guided by its unique Tropicana DNA and brand values, Tropicana remains focused on delivering long-term sustainable growth and maximising shareholders’ value. Fuelled by the Tropicana transformation plan and its unique development DNA, the Group has achieved many memorable milestones as it moves towards realising its vision of becoming a premier property group in Malaysia.

Tropicana Aman in Kota Kemuning incorporates luxuriant greenery to create an inviting and cosy environment



SIGNIFICANT MILESTONES

Achieved record revenue of RM1.48 billion and record sales of RM2.16 billion

Changed its corporate name from Dijaya Corporation Berhad to Tropicana Corporation Berhad

Officially launched Tropicana Metropark in Subang Jaya and conducted the signing ceremony to build the direct flyover from Tropicana Metropark to the Federal Highway

Entered into a strategic partnership with Marriot International to develop Courtyard by Marriot, the first Courtyard Hotel in Malaysia

Won seven prestigious awards for projects and its continuous efforts as a community builder in Malaysia

Ground breaking ceremony of Penang WorldCity by Tropicana and Ivory Properties Group Berhad

2013

2014Entered into a joint-venture with HK-listed Agile Property Holdings Ltd to develop Jalan Bukit Bintang land

1992Listed on the Main Market of Bursa Malaysia Securities Berhad

Pioneered the resort-themed development concept in Malaysia with the introduction of its 624-acre Tropicana Golf & Country Resort (“TGCR”) which houses a 380,000 square feet award-winning clubhouse

1995TGCR won the Best Leisure Development in Malaysia by FIABCI Malaysia Chapter

Developed the 409-acre Tropicana Indah Resort Homes

Built its first integrated development, Sri Desa condominium with shop offices in Taman Desa

Unveiled its first commercial development, Damansara Intan e-Business Park in Petaling Jaya

Won multiple awards and accolades for its outstanding developments across TGCR and Tropicana Indah townships

Unveiled the nine-acre Tropicana City integrated development encompassing Tropicana City Mall, Tropicana City Office Tower and Tropics Serviced Apartments

1996-

2009

Achieved record revenue of RM1.97 billion and unbilled sales of RM2.7 billion

Ground breaking ceremony of St. Joseph’sInstitution International School Malaysia (“SJIIM”) (Tropicana PJ Campus), Tropicana’s first education project

2012Conducted the Tropicana amalgamation exercise to consolidate all property development and investment activities into the Tropicana Group

Officially launched Phase 1 of Tropicana Gardens and sold out within two days

2010First entry into Johor to build a 37-acre mixed-use development known as Tropicana Danga Bay, a joint-venture project with Iskandar Waterfront Sdn Bhd

2011Achieved a five-fold increase in Company assets from RM500 million to RM2.5 billion, with unbilled sales in excess of RM500 million

Entered into an agreement with Starwood Hotels & Resorts Worldwide to build the first five-star W Hotel within Kuala Lumpur City Centre

Entered into a joint-venture (“JV”) agreement with Ivory Properties Group Berhad to develop mixed residential and commercial properties in Bayan Mutiara, Penang

Acquired 227 acres of freehold land in Iskandar Malaysia to build a mixed-use development known as Tropicana Danga Cove

Unveiled its first property membership card in Malaysia known as the Tropicana Privilege Card

Incorporated Tropicana Foundation, a charity organisation dedicated to improve the lives of under-privileged communities

Tropicana Group was incorporated and has since become one of the fastest growing property developers in Malaysia

1979



SIGNIFICANT MILESTONES

2016Entered into a sales and purchase agreement with Tiarn Oversea Group Sdn Bhd to dispose its land in Pulai, Johor Bahru for RM569.8 million

Tropicana’s Founder and Advisor, Tan Sri Dato’ Tan Chee Sing was recognised as the FIABCI Property Man of the Year at the FIABCI Malaysian Chapter Property Awards 2016

Honoured with various property awards such as BCI Top 10 Developers’ Award 2016, Pioneer Development Award at The Edge Property Excellence Awards 2016, Best Mixed-development Award at the iProperty.com People’s Choice Award 2016 and Asia Pacific Property Awards 2016

2017Made good progress on its strategic transformation roadmap, reducing its net gearing ratio from 0.55x in 2013 to 0.27x in 2017

Introduced the Tropicana Urban Homes concept that is targeted towards the middle-income community, namely first-time home buyers and new families

2017Won a string of property awards and recognitions at various awards ceremonies. Amongst others, Tropicana was honoured as one of the Top Ten Property Developer at The Edge Property Excellence Award 2017

Tropicana’s Founder and Advisor, Tan Sri Dato’ Tan Chee Sing was honoured with the Malaysian Fujian Outstanding Entrepreneur Award

2016Tropicana Foundation donated RM1.5 million to SJIIM International Baccalaureate

Entered into an agreement with Kenanga Investment Bank to sell Dijaya Plaza tower for RM140 million

Won 17 prestigious awards for its projects and continuous efforts as a community builder in Malaysia

Tan Sri Dato’ Tan Chee Sing was honoured for his outstanding achievements in the property industry by Tatler Malaysia, Asia Pacific Entrepreneur Awards and the Chinese Chamber of Commerce & Industry of Kuala Lumpur and Selangor

2014

2015Company assets increased more than two-fold from RM2.5 billion in 2011 to RM6.0 billion in 2015

Possessed a land bank size of more than 1,600 acres with an Gross Development Value (“GDV”) of more than RM50 billion

Achieved total sales of RM1.55 billion, with record high unbilled sales of RM3.13 billion

Entered into an agreement with GEMS Education to develop a school campus at Tropicana Metropark in Subang Jaya

Entered into an agreement with Tenby Schools to develop an international school campus at Tropicana Aman in Kota Kemuning

Continued to win prestigious property awards, namely the BCI Asia Top 10 Developers’ Award, Highest Profit Growth Company by The Edge Billion Ringgit Club Award 2015 and Asia Pacific Property Awards 2015



CORPORATE INFORMATION

BOARD OF DIRECTORS

AUDIT COMMITTEE Mohd Najib Bin Abdul Aziz (Chairman)Datuk Michael Tang Vee Mun Datuk Lim Thean Shiang

RISK MANAGEMENT COMMITTEEDatuk Lim Thean Shiang (Chairman)Mohd Najib Bin Abdul AzizDato’ Dickson Tan Yong LoongDion Tan Yong ChienDatuk Michael Tang Vee Mun

NOMINATION COMMITTEEDatuk Lim Thean Shiang (Chairman)Datuk Michael Tang Vee MunMohd Najib Bin Abdul Aziz

REMUNERATION COMMITTEEDatuk Lim Thean Shiang (Chairman)Datuk Michael Tang Vee MunDato’ Dickson Tan Yong Loong

PRICING COMMITTEEDatuk Michael Tang Vee MunDato’ Dickson Tan Yong Loong Dion Tan Yong ChienMohd Najib Bin Abdul Aziz

INVESTMENT COMMITTEEDatuk Michael Tang Vee Mun (Chairman)Dato’ Dickson Tan Yong Loong Dion Tan Yong ChienTan Sri Dato’ Tan Chee SingTan Sri Dr Lim Wee Chai

HEAD OFFICELevel 2, 7, 9, 10, 11 & 12Tropicana City Office TowerNo. 3, Jalan SS 20/2747400 Petaling Jaya Selangor Darul Ehsan, MalaysiaTelephone : +603 7710 1018Facsimile : +603 7725 3035

REGISTERED OFFICELot LG-A1, Lower Ground Floor Tropicana City Mall No. 3, Jalan SS 20/27 47400 Petaling JayaSelangor Darul Ehsan, MalaysiaTelephone : +603 7713 8288Facsimile : +603 7713 8228

AUDITORSErnst & YoungChartered Accountants Level 23A, Menara Milenium Jalan DamanlelaPusat Bandar Damansara50490 Kuala Lumpur, Malaysia Telephone : +603 7495 8000Facsimile : +603 2095 9076

SHARE REGISTRARSymphony Share Registrars Sdn BhdLevel 6, Symphony HousePusat Dagangan Dana 1Jalan PJU 1A/4647301 Petaling JayaSelangor Darul Ehsan, Malaysia Telephone : +603-7841 8000Facsimile : +603-7841 8151/8152Helpdesk : +603-7849 0777

COMPANY SECRETARY Chua Siew Chuan (MAICSA 0777689)Mak Chooi Peng (MAICSA 7017931)Chin Soo Ching @ Chen Soo Ching (MAICSA 7042265)

PRINCIPAL BANKERS Affin Bank BerhadAlliance Bank Malaysia Berhad Alliance Islamic Bank BerhadAl Rajhi Banking & Investment Corporation (Malaysia) BerhadAmBank BerhadAmIslamic Bank BerhadAsian Finance Bank BerhadBank of China (M) BerhadBank of East Asia, LtdBank Kerjasama Rakyat Malaysia BerhadCIMB Bank BerhadHong Leong Bank BerhadHSBC Bank (M) BerhadMaybank BerhadOCBC Bank (M) BerhadOCBC Islamic BerhadPublic Bank BerhadStandard Chartered Bank (M) Berhad

WEBSITEwww.tropicanacorp.com.my

EMAIL [email protected]

STOCK EXCHANGE LISTINGMain Market Bursa Malaysia Securities Berhad Stock name : TROPStock code : 5401

Tan Sri Othman Bin Abd Razak (Chairman, Independent Non-Executive Director)

Tan Sri Dr Lim Wee Chai (Deputy Chairman, Non-Independent

Non-Executive Director)

Dato’ Dickson Tan Yong Loong (Deputy Group Chief Executive Officer)

Dion Tan Yong Chien (Group Managing Director)

Dillon Tan Yong Chin (Executive Director)

Datuk Michael Tang Vee Mun (Independent Non-Executive Director)

Mohd Najib Bin Abdul Aziz(Independent Non-Executive Director)

Datuk Lim Thean Shiang (Independent Non-Executive Director)

Kang Ai Lin(Independent Non-Executive Director)



CORPORATE STRUCTURE

OTHER INVESTMENTS

Definition : “fka” – formerly known asAs at 30 March 2018

PROPERTY DEVELOPMENT, PROPERTY MANAGEMENT, PROPERTY INVESTMENT, RECREATION AND RESORT OPERATIONS

Advent Nexus Sdn Bhd 100%

Arah Pelangi Sdn Bhd 100%

Bakat Rampai Sdn Bhd 100%• Dicorp Land Sdn Bhd 100%• Tropicana City Sdn Bhd 100%

• Dicasa Management Services Sdn Bhd 100%• Tropicana City Management Sdn Bhd 100%• Tropicana Parking Sdn Bhd 100%• Tropicana Kajang Hill Sdn Bhd 100%

• Tropicana Indah Realty Sdn Bhd 100%• Tropicana Indah Sdn Bhd 70%

Daya Petaling Sdn Bhd 100%

Myxon (M) Sdn Bhd 100%

Tropicana Aman Sdn Bhd 100%• Sapphire Step Sdn Bhd 100%

Tropicana Bukit Bintang Development Sdn Bhd 100%

Tropicana Coliseum (Ipoh) Sdn Bhd 100%

Tropicana Cheras Sdn Bhd 100%

Tropicana Danga Bay Land Sdn Bhd 100%• Tropicana Danga Bay Sdn Bhd 60%

• Tropicana Danga Bay Pte Ltd 100%• Desiran Realiti Sdn Bhd 100%

Tropicana Danga Cove Holding Sdn Bhd 100%• Tropicana Danga Cove Sdn Bhd 50%

Tropicana Danga Lagoon Sdn Bhd 80%• Tropicana Lagoon Sdn Bhd 100%

Tropicana Development (Johor Bahru) Sdn Bhd 100%

Tropicana Development (Penang) Sdn Bhd 100%• Tropicana Ivory Sdn Bhd 55%

• Tropicana Ivory Realty Sdn Bhd 100%

Tropicana Development (Sabah) Sdn Bhd 100%

Tropicana Education Management Sdn Bhd 85%

Tropicana Golf & Country Resort Berhad 100%• Tropicana Desa Mentari Sdn Bhd 100%• Tropicana Management Services Sdn Bhd 100%• Tropicana Sungai Buloh Sdn Bhd 100%

Tropicana Harapan Sdn Bhd 100%

Tropicana Jaya Sdn Bhd 100%

Tropicana KL Development Sdn Bhd 100%

Tropicana Lahad Datu Development Sdn Bhd 100%

Tropicana Land Sdn Bhd 100%

Tropicana Land (Sandakan) Sdn Bhd 100%

Tropicana Landmark Sdn Bhd 100%

Tropicana Lido Development Sdn Bhd 100%

Tropicana Macalister Avenue (Penang) Sdn Bhd 100%

Tropicana Metro Sdn Bhd 100%

Tropicana Metropark Sdn Bhd 100%• Noble Kinetic Sdn Bhd 100%• Tropicana Paisley Sdn Bhd 100%

Tropicana Mentari Development Sdn Bhd 100%

Tropicana Plaza Sdn Bhd 100%

Tropicana Properties (Keningau) Sdn Bhd 100%

Tropicana Properties (Klang) Sdn Bhd 100%

Tropicana Properties (Sabah) Sdn Bhd 100%

Tropicana Properties (Sandakan) Sdn Bhd 100%

Tropicana Property Management Sdn Bhd 100%

Tropicana Rahang Development Sdn Bhd 100%

Tropicana Residences Sdn Bhd 100%

Tropicana Resort Holding Sdn Bhd 100%• Tropicana Danga Bay Resort Sdn Bhd 60%

Tropicana Serdang Suria Sdn Bhd 100%

Tropicana Senibong Sdn Bhd 100%

Tropicana Tawau Development Sdn Bhd 100%

Tropicana Wisma TT Sdn Bhd 100%

Kuasa Cekapmas Sdn Bhd 100%

Sumber Saujana Sdn Bhd 100%• Tropicana Saujana Sdn Bhd 100%

Supreme Converge Sdn Bhd 100%• Agile Tropicana Development Sdn Bhd 30%

Tropicana Building Materials Sdn Bhd 100%

Tropicana Credit & Leasing Sdn Bhd 100%

Tropicana Collections (MM2H) Sdn Bhd 100%

Tropicana Construction Management Sdn Bhd 100% (fka Tropicana Properties Ampang Sdn Bhd)

Tropicana Corporate Solutions Sdn Bhd 100%

Tropicana Danga Senibong Holding Sdn Bhd 100%• Tropicana Danga Senibong Sdn Bhd 70%

Tropicana Development (Sg Besi) Sdn Bhd 100%

Tropicana Global Development Sdn Bhd 100%

Tropicana Innovative Landscape Sdn Bhd 100%

Tropicana Investment Consulting Pte Ltd 100%

Tropicana Jalan Selangor Development Sdn Bhd 100%

Tropicana Kemayan Development Sdn Bhd 100%

Tropicana Kia Peng Sdn Bhd 100%

Tropicana KK City Sdn Bhd 100%

Tropicana Lintas Development Sdn Bhd 100%

Tropicana Marketplace Sdn Bhd 100%

Tropicana Properties (Puchong) Sdn Bhd 100%

Tropicana Sadong Jaya Development Sdn Bhd 100%

Tropicana Shared Services Sdn Bhd 100%

Tropicana SJII Education Management Sdn Bhd 51%

Tropicana Subang South Development Sdn Bhd 100%

Tropicana Technology Sdn Bhd 100%

Tropicana Urban Homes Sdn Bhd 49%

Ultimate Support Sdn Bhd 100%



SIGNATURE DEVELOPMENTS

TROPICANA GOLF & COUNTRY RESORTPetaling Jaya, Selangor

Residential• Ana and Bella linked houses

• Casa Tropicana condominiums

• Cora and Dora semi-detached houses

• Green Acres 1 Gloria and Floria semi-detached houses

• Green Acres 2 linked houses, semi-detached houses,

bungalows and prime bungalow lots

• Eva townhouses

• Tropicana Grande golf-fronted condominiums

Mixed-use Development and Commercial• Merchant Square shop offices

• Tropicana Avenue retail, offices and serviced

apartments

TROPICANA INDAHRESORT HOMESPetaling Jaya, Selangor

Residential• Adam and Eve linked houses

• Casa Indah 1 and 2 condominiums

• Grand Villas bungalows

• Green Haven bungalow lots

• Green Haven 1 resort villas

• Golf Villas bungalows

• Link Villas linked houses

• Mustika and Persona linked houses

• Pool Villas semi-detached houses

• Romeo and Juliet linked houses

• Villa Green 1 linked bungalows

• Villa Green 2 semi-detached houses

• Villa Green semi-detached houses

Mixed-use Development, Commercial and Education • St. Joseph’s Institution International School Malaysia

(Tropicana PJ Campus)

• Tropicana Gardens mixed-use development, Kota

Damansara

TROPICANA CITYPetaling Jaya, Selangor

Residential• Casa Damansara 1 and 2 condominiums

• Tropicana City Tropics serviced apartments

Retail and Commercial• Damansara Intan e-Business Park

• Tropicana City Mall

• Tropicana City Office Tower

1. TROPICANA GOLF & COUNTRY RESORT

2. TROPICANA INDAH RESORT HOMES

3. TROPICANA CITY

4. OTHER KLANG VALLEY DEVELOPMENTS

5. PENANG, JOHOR AND SABAH DEVELOPMENTS

Note:* Project Manager** Joint-venture project with Aliran Firasat Sdn Bhd *** Joint-venture project with Ivory Properties Group Berhad **** A joint-venture between Tropicana Corporation Berhad

and Iskandar Waterfront Sdn Bhd

THE RESIDENCES

TROPICANA DANGA BAY



SIGNATURE DEVELOPMENTS

OTHER KLANG VALLEY DEVELOPMENTS

Residential• Casa Kiara 1 and 2 condominiums, Mont Kiara,

Kuala Lumpur*

• Casa Suites apartments, Petaling Jaya

• Fortune Park apartments, Kuala Lumpur

• Tropicana Cheras linked houses, semi-detached houses

and bungalows, Cheras

Mixed-use Development, Commercial, Hospitality and Education• Arena Mentari shop offices, Dataran Mentari,

Petaling Jaya**

• GEMS International School, Tropicana Metropark,

Subang Jaya

• Tenby International School, Tropicana Aman,

Kota Kemuning, Shah Alam

• The Residences and W Kuala Lumpur Hotel,

Kuala Lumpur

• Tropicana Aman mixed-use development,

Kota Kemuning, Shah Alam

• Tropicana Heights mixed-use development, Kajang

• Tropicana Metropark mixed-use development,

Subang Jaya

• TSB Commercial Centre, Sungai Buloh

PENANG, JOHOR AND SABAH DEVELOPMENTS

Residential• 10 Island Resort condominiums, Batu Ferringhi, Penang*

• Aston Villa linked houses, semi-detached houses and

shop offices, Bukit Mertajam, Penang

• Tropicana Landmark condominiums, Kota Kinabalu,

Sabah

Mixed-use Development• Penang WorldCity mixed-use development,

Bayan Mutiara, Penang***

• Tropicana 218 Macalister integrated mixed-use

development, Penang

• Tropicana Danga Bay mixed-use development,

Iskandar Malaysia, Johor****

• Tropicana Danga Cove mixed-use development,

Iskandar Malaysia, Johor****

TROPICANA AMAN

TROPICANA DANGA COVE

TROPICANA METROPARKTROPICANA GARDENS



1992

Tropicana Golf & Country Resort: Best Leisure Development in

Malaysia by FIABCI Malaysia Chapter

1995, 2003-2006

Tropicana Golf & Country Club: Best Golf Course in Malaysia

by Golf Malaysia

1997Tropicana Golf & Country Club: Best Landscape in Selangor by

Selangor State Government

1997,1999-2006

Tropicana Golf & Country Club: Best Clubhouse/Facilities in

Malaysia by Golf Malaysia

2005-2006

Tropicana Golf & Country Club: Best Customer Service Club in

Malaysia by Golf Malaysia

2009

Villa Green Semi-detached Homes: Best Residential

Development in Malaysia, Best Residential Development in

Asia Pacific, and Best Residential Development in the World by

International Property Awards 2009

2010

Tropicana Golf & Country Resort: Best Golf Development

in Malaysia and Best Golf Development in Asia Pacific by

International Property Awards 2010

AWARDS & ACCOLADES

2011

DREAM HOME AWARDS 2011

• Casa Indah 1 Condominium: Best Medium-high Cost

Apartment

INTERNATIONAL PROPERTY AWARDS 2011

• Tropicana Grande: Best Residential High-rise Development

in Malaysia and Best Residential High-rise Development in

Asia Pacific

2012

ASIA PACIFIC PROPERTY AWARDS 2014

• Pool Villas three-storey Semi-detached Homes: Highly

Commended for Best Multiple Units Development in

Malaysia

BCI ASIA TOP 10 DEVELOPERS’ AWARDS 2012

• Tropicana Corporation Berhad: Top 10 Developers

PROPERTYTALK & LIFESTYLE GROUP MALAYSIA 2012

• Arnica Serviced Residences, Tropicana Gardens: Property of

the Year

• Tropicana Metropark: Best Development Masterplan of

the Year

2013


• Tropicana Metropark: Best Mixed-use Development in

Malaysia



MALAYSIA POWER BRAND 2013

• Tropicana Corporation Berhad: Power Brand Award for

Organisation, Management and Brand Management

SUPER EXCELLENT BRAND AWARDS 2013

• Tropicana Corporation Berhad: Super Excellent Brand

2014


• Tropicana 218 Macalister: Best Commercial High-rise

Development

• Tropicana Danga Bay: Highly Commended for Mixed-use

Development in Malaysia

• Tropicana Gardens: Best Retail Development

• Tropicana Metropark: Highly Commended for Commercial

Landscape Architectural in Malaysia



iPROPERTY PEOPLE’S CHOICE AWARDS 2014

• Paloma Serviced Residences: Best High-rise Development

• Pandora Serviced Residences: Best High-rise Development

MALAYSIA INSTITUTE OF ARCHITECT AWARDS 2014

• Tropicana Metropark Property Gallery: Silver Award for

Adaptive Re-use

SOUTH EAST ASIA PROPERTY AWARDS 2014

• Tropicana Avenue: Best Commercial Architectural Design

• Tropicana Avenue: Highly Commended for Best Luxury

Condo Development (Central Malaysia)

• Tropicana Corporation Berhad: Special Recognition in CSR

• Tropicana Heights: Best Housing Landscape Architectural

Design

• Tropicana Heights: Highly Commended for Best Housing

Development (Central Malaysia)

THE EDGE BILLION RINGGIT CLUB AWARDS 2014

• Tropicana Corporation Berhad: Highest Profit Growth

Company (Property and REIT)

THE EDGE MALAYSIA PROPERTY EXCELLENCE

AWARDS 2014

• Tropicana Corporation Berhad: Most Notable Achievement

• Tropicana Corporation Berhad: Top Property Developer

(ranked 6th)



AWARDS & ACCOLADES

2015


• Tropicana Corporation Berhad: Best Developer Website in

Malaysia

• Tropicana Gardens: Best Mixed-use Development in

Malaysia



BRANDLAUREATE SPECIAL EDITION WORLD AWARDS 2015

• Tan Sri Dato’ Tan Chee Sing: Brandpreneur Life Inspired

Achievement

• Tropicana Corporation Berhad: Brand Excellence for Best

Property

GREENRE AWARDS 2015

• Tropicana Avenue: Gold GreenRe Award (Residential)

• The Residences: Gold GreenRe Award (Residential)

NATIONAL ANNUAL CORPORATE REPORT AWARDS 2015

• Tropicana Corporation Berhad: 2014 Annual Report (Merit)

PROPERTY INSIGHT PRESTIGIOUS DEVELOPER

AWARDS 2015

• Tropicana Corporation Berhad: Top 10 Developer

PUTRA BRAND AWARDS 2015

• Tropicana Corporation Berhad: People’s Choice

THE EDGE BILLION RINGGIT CLUB AWARDS 2015

• Tropicana Corporation Berhad: Highest Profit Growth

Company (Property and REIT)


AWARDS 2015

• Tan Sri Dato’ Tan Chee Sing: The Edge Malaysia Outstanding

Property Entrepreneur

2016


• Tropicana Aman Sales Gallery: Commercial Landscape

Architecture in Malaysia




FIABCI MALAYSIAN CHAPTER PROPERTY AWARDS 2016

• Tan Sri Dato’ Danny Tan Chee Sing: FIABCI Property Man

of the Year

iPROPERTY PEOPLE’S CHOICE AWARDS 2016

• Tropicana Gardens: Best Mixed-use Development

NATIONAL ANNUAL CORPORATE REPORT AWARDS 2016

• Tropicana Corporation Berhad: 2015 Annual Report (Merit)

THE EDGE PROPERTY EXCELLENCE AWARDS 2016

• Tropicana Golf & Country Resort: Pioneer Development

2017


• Tropicana Aman: Best Residential Development



FROST & SULLIVAN’S BEST PRACTICES AWARDS 2017

• Tropicana Corporation Berhad: New Product Innovation

iPROPERTY DEVELOPMENT EXCELLENCE AWARDS 2017

• Tropicana Aman: Best Township Development

• Tropicana Corporation Berhad: People’s Choice

• Ridgefield Residences, Tropicana Heights: Best Residential

Landed Development

• Tropicana Metropark: Best Mixed-use Development

PROPERTYGURU ASIA PACIFIC PROPERTY AWARDS 2017

• Tropicana Aman: Best Housing Development (KL)

• Tropicana Corporation Berhad: Best Developer (Malaysia),

Special Recognition in Sustainable Development,

and Special Recognition in Corporate Social Responsibility

• Tropicana Gardens: Best Green Development

• Tropicana Metropark: Best Mixed-use Development

• The Residences: Best Luxury Condo Development (KL),

and Best Condo Development (KL)

PROPERTY INSIGHT PRESTIGIOUS DEVELOPER

AWARDS 2017

• Tropicana Aman: Distinctive Lifestyle Township Development

• Tropicana Corporation Berhad: Top 10 Property Developer of

the Year

• Tropicana Gardens: Best Transit-oriented Development

• Tropicana Heights: Best Township Development

• Tropicana Metropark: Best Urban Lifestyle Development


AWARDS 2017

• Tropicana Corporation Berhad: Top 10 Property Developer

THE MALAYSIAN FUJIAN OUTSTANDING ENTREPRENEUR

AWARD 2017

• Tan Sri Dato’ Danny Tan Chee Sing: Malaysian Fujian

Outstanding Entrepreneur

THE STAR PROPERTY AWARDS 2017

• Tropicana Corporation Berhad: The All Star Award:

Top Ranked Developer of the Year

• Tropicana Metropark: The Neighbourhood Award:

Best Boutique Township, Below 500 Acres (Merit)

• The Residences: The Niche & Unique Award: Best Boutique

Development (Excellence)



A COMMITMENT TO EXCELLENCE

BCI ASIA TOP 10 DEVELOPERS’ AWARD 2017

Tropicana bagged the BCI Asia Top 10 Developers for the fifth consecutive year. The award cemented Tropicana’s dedication in creating innovative integrated developments that cater to market needs. Since 2005, the British Construction Industry (“BCI”) Asia Awards continues to be one of the most coveted awards for the Asian building and design industry.

THE STAR PROPERTY AWARDS 2017

Tropicana’s ability to redefine the art of living for Malaysians saw the Company earning multiple accolades at The Star Property Awards 2017. The Group was ranked as one of the top 10 local developers while Tropicana Metropark received merit recognition for ‘The Neighbourhood Award’ (Township below 500 acres) and The Residences received recognition for excellence with ‘The Niche & Unique Award’ (Boutique Development). The annual event organised by the Star Media Group Berhad was graced by the Sultan of Selangor, Sultan Sharafuddin Idris Shah.

MALAYSIAN FUJIAN OUTSTANDING ENTREPRENEUR AWARD 2017

Tan Sri Dato’ Danny Tan Chee Sing was honoured by the Federation of Hokkien Association Malaysia (“FHAM”) for his outstanding contribution to the community and country. He was awarded the Malaysian Fujian Outstanding Entrepreneur Award in conjunction with the 60th Anniversary of the FHAM.

29 JUNE

12 MAY21 MAR

13 APR

05 MAY

PROPERTY INSIGHT PRESTIGIOUS AWARDS 2017

Tropicana dominated the Property Insight Prestigious Developer’s Awards (“PIPDA”) 2017 by winning five key awards, namely Top 10 Property Developer of the Year, Distinctive Lifestyle Township Development for Tropicana Aman, Best Transit-oriented Development for Tropicana Gardens, Best Township Development for Tropicana Heights, and Best Urban Lifestyle Development for Tropicana Metropark.

FROST & SULLIVAN’S BEST PRACTICES AWARDS

Frost & Sullivan honoured Tropicana Corporation Berhad for demonstrating outstanding achievement as the 2017 Malaysia Property Development New Product Innovation Award. Frost & Sullivan’s Best Practices Awards recognises companies throughout a range of regional and global markets for superior leadership, technological innovation, customer service, and strategic product development.

25 MAY


Tropicana Aman, Tropicana’s biggest township in Kota Kemuning won the Best Residential Development at the Asia Pacific Property Awards 2017 held in Bangkok, Thailand. Spread across 863 acres, this township which has been positioned as a walking and biking community, clinched the 5-star rating and is a regional nominee to represent the Asia Pacific region at the international stage.



A COMMITMENT TO EXCELLENCE

PROPERTY GURU ASIA PACIFIC PROPERTY AWARDS 2017

Tropicana’s signature developments clinched eight golden trophies at the PropertyGuru Asia Property Awards (Malaysia) 2017 − Asia’s biggest and most respected real estate awards. Tropicana clinched the year’s highest honours for Best Developer in Malaysia, Special Recognition in Sustainable Development, Special Recognition in Corporate Social Responsibility; Best Luxury Condo Development (KL) and Best Condo Development for The Residences; Best Housing Development for Tropicana Aman, Best Mixed-use Development for Tropicana Metropark, and Best Green Development for Tropicana Gardens.

17 AUG

iPROPERTY DEVELOPMENT EXCELLENCE AWARDS 2017

Tropicana swept four awards at the iProperty Development Excellence Award 2017, namely the much-sought after People’s Choice Award, Best Mixed-use Development for Tropicana Metropark, Best Township Development for Tropicana Aman, and Best Residential Landed Development for Tropicana Heights Ridgefield Residences. iDEA is the most prestigious real estate award for the property industry as it recognises industry leaders who are creating new benchmarks in Malaysia.

16 NOV

THE EDGE MALAYSIA PROPERTY EXCELLENCE AWARDS 2017

Tropicana Corporation Berhad was ranked 10th Top Property Developer in Malaysia at The Edge Malaysia Property Excellence Awards 2017. The Edge Malaysia Top Property Developers’ Awards, the anchor of The Edge Property Excellence Awards recognises Malaysia’s best property players in the industry from the consumers’ perspective based on their quantitative and qualitative attributes.

30 OCT



15 January 2017Tropicana Golf & Country Resort (“TGCR”) hosted a family carnival at its clubhouse where families were entertained to various performances including magical clowns, a Ninja demonstration, belly dancing, lucky draws and a colouring competition.

11 & 12 March 2017 Tropicana launched the first-of-its-kind talk series, “Property for Everyone” that was specially designed for millenials, investors and home owners at Tropicana Metropark, Subang Jaya. The talks were conducted by renowned property speakers, entrepreneurs and celebrities.

13 March 2017 Tropicana donated RM40,000 to the Lions Club International Everest Expedition to help facilitate 69-year old James Lee’s attempt to climb Mount Everest.

21 March 2017 Tropicana received three awards at The Star Property Awards 2017 for its ability to build quality homes and integrated developments.

26 March 2017 The fourth “Walk & Ride Yellow Event” continued to attract the local community as more than 800 participants of all ages took their time to enjoy the natural beauty of Tropicana’s largest township, Tropicana Aman at Kota Kemuning.

13 April 2017 Tropicana received the Property Development New Product Innovation Award 2017 at the Frost & Sullivan Best Practices Awards 2017.

22 & 23 April 2017 Official opening of the Paisley Serviced Residences Show Units at Tropicana Metropark, Subang Jaya.

5 May 2017 Tropicana won five key awards at the Property Insight Prestigious Developer’s Awards 2017.

12 May 2017 Tropicana unveiled two brand new show houses for its third residential phase, Cheria Residences at Tropicana Aman, Kota Kemuning.

Tropicana bagged the BCI Asia Top 10 Developers for the fifth consecutive year.

15 May 2017 St. Joseph’s Institution International School Malaysia (Tropicana PJ Campus) celebrated its first year of operations. The event was graced by the Minister of Education Malaysia, Datuk Seri Mahdzir Khalid.

25 May 2017 Tropicana Aman, Tropicana’s largest township in Kota Kemuning won Best Residential Development at the Asia Pacific Property Awards 2017 in Bangkok, Thailand.

24 July 2017TGCR hosted a Hari Raya Open House for 150 children from three underprivileged homes, namely Pusat Jagaan Kasih Ilahi, Rumah Jagaan Nur Ekhwanku, and Rumah Al Yatama Syuhada. A donation of RM10,000 was contributed to each home.

25 July 2017Tropicana participated in the The Edge Rat Race 2017 for the 11th year.

28 July 2017Aman 1, the first phase of Tropicana Urban Homes at Tropicana Aman, Kota Kemuning was launched to tap the market demand for modern yet quality homes.

EVENT HIGHLIGHTS

29 JUNE 2017Tropicana’s Founder & Advisor, Tan Sri Dato’ Tan Chee Sing was honoured with the Malaysian Fujian Outstanding Entrepreneur Award.



17 August 2017Tropicana won eight awards at the prestigious Property Guru Asia Pacific Property Awards (Malaysia) 2017.

7 October 2017The eighth TGCR Nite Race saw hundreds of participants running around the 8.5km route in the golf course.

15 October 2017The Metropark Fitness Fest at Tropicana Metropark attracted 700 participants who joined in the various workout sessions.

30 October 2017Tropicana clinched the 10th position at the at The Edge Malaysia Property Excellence Awards 2017’s Top Ten Property Developers.

11 November 2017 Tropicana launched the “Tropicana Surprize Upsize” from 11 November to 22 December 2017 which offered home buyers the opportunity to win a free upsize house across any of Tropicana’s four signature townships and developments in the Klang Valley.

Both children and adults had fun splashing around using mermaid fins in a demonstration organised by TGCR, in partnership with Dolphinee Aquatics Sdn Bhd.

20 September 2017A Fun Run organised at Tropicana Heights, Kajang saw more than 600 participants dash their way through the 199-acre development.

16 November 2017 Tropicana won four key awards at the iProperty Development ExcellenceAwards 2017.

28 December 2017The grand prize winner of the‘Tropicana Surprize Upsize’ campaign walked away with a free upsized home while four other winners went home with a RM80,000 interior design package each.

22 September 2017 Tropicana’s Founder and Advisor, Tan Sri Dato’ Tan Chee Sing was bestowed with the Malaysian Fujian Outstanding Entrepreneur Award at the Federation of Hokkien Association Malaysia’s 60th Hokkien Exemplary and Outstanding Entrepreneur Award 2017.

30 September 2017TGCR celebrated the Mid-Autumn Festival with a unique buffet spread while families strolled and lit the golf course with their colourful lanterns.

EVENT HIGHLIGHTS



TROPICANA IN THE NEWS

R E S T O R I N G T H E N AT U R A L E CO S Y S T EM

What was once a 199-acre golf course, Tropicana’s deep-rooted expertise as a master planner resulted in a sprawling township that consists of a 16-acre Central Park, a 750-metre linear lake, tree-lined pedestrian walkways, commercial hubs and residential precincts that promote a healthier and greener living environment. Not only were all elements built using the existing topography, the preservation efforts harnessed the precious resources of the land whereby native matured tree species were replanted into the Central Park to enhance the greenery in Tropicana Heights’ central park and streetscapes. Pocket parks have also been created to allow residents to discover the

hidden delights of this tranquil environment that nurtures a strong community spirit.

For more info, please log on to www.tropicanaheights.com.my

At Tropicana Heights, it was not just the case of building a township, but bringing to life the natural ecosystem of the land.

STRATEGIC PERFORMANCESEC 1 > SEC 2 < SEC 3 • SEC 4 • SEC 5 • SEC 6


MANAGEMENT DISCUSSION & ANALYSIS

Dato’ Dickson Tan Yong Loong

Deputy Group Chief Executive Officer

For the financial year (“FY”) 2017, Tropicana made significant strides in strengthening its position in the property development industry as the Group reinforced its market position and introduced new products to Malaysians from all walks of life.

The Malaysian economy continued to experience robust growth in 2017 as the Gross Domestic Product (“GDP”) grew between 5.5 % and 6.0%, the most in three years supported by healthy domestic demand and strong exports. Despite the rising economic confidence, the property sector remained challenging given the imbalance in demand and supply as well as the tightened lending environment. Though the industry experienced lower rate of transactions, this sector was adjusting well to the changing economic environment and consumer spending habits.

Given Tropicana’s long-standing experience in the property industry, the Group is cognisant of the cyclical nature of the property landscape and have already established plans for the long-term. Through the transformation strategy, Tropicana has made good progress in strengthening its balance sheet despite market conditions. The Group has seen improvement in its Compound Annual Growth Rate (“CAGR”) of 7.22% and 8.63% on shareholders’ funds and total assets between 2013 and 2017 while its net gearing ratio reduced from 0.55x in 2013 to 0.27x in 2017 following the Group’s drive to unlock the value of its landbank and non-core assets.

The progress made thus far demonstrates the high level of foresight and resilience the Group has when it comes to designing sustainable homes that meet the current and future needs of customers, driving performance as well as its focus on delivering long-term shareholder value.

THROUGH THE TRANSFORMATION STRATEGY, TROPICANA HAS MADE GOOD PROGRESS IN STRENGTHENING ITS BALANCE SHEET DESPITE MARKET CONDITIONS.




‘‘ Tropicana’s strategic approach has always been centred on creating expansive living spaces and homes that fulfil the needs of its customers. ”

FINANCIAL REVIEW

For the year under review, the Group’s revenue increased strongly by 26.7%, registering RM1.9 billion compared to RM1.5 billion in the preceding year. This is mainly fuelled by higher revenue recognition across key projects in the Central and Northern regions.

The Group’s Profit Before Tax (“PBT”) increased by 71.8% from RM168.1 million in 2016 to RM288.8 million in 2017, and net profit rose 71.3% to RM197.0 million from RM115.0 million recorded in 2016.

In line with the Group’s transformation strategy, the Group’s drive to unlock the value of its landbank continued to demonstrate strong results, as its net gearing improved to 0.27x from 0.31x previously.

Whilst the overall short-term prospects for the industry are expected to remain challenging, the Group believes that there will still be demand for properties in prime locations with attractive pricing. Given the strong response received from its signature developments, the Group achieved unbilled sales of RM1.52 billion as at 31 December 2017, which is expected to continue to contribute positively to the Group’s earnings in the near future.

DELIVERING ON STRATEGY

Tropicana’s strategic approach has always been centred on creating expansive living spaces and homes that fulfil the needs of its customers. Looking back to when the

Group built the first ever resort-themed development, it was an idea that became an industry trend. This has not changed as Tropicana continues to be an industry trendsetter today.

With its experience, insights and constant listening to consumer feedback, today the Group has achieved enduring success in introducing townships and integrated developments that enhance the overall well-being of its residents as well as its ability to create thriving communities. The extensive level of planning and forethought allow residents to fulfil their many needs within the same environment and thus, increasing their quality of life.

Designing Value-based Service Quality

Throughout 2017, customer service has been a clear focus for Tropicana as its customers are at the heart of all its actions and decisions. To create meaningful experiences for each customer, the Group continually engages with its customers as this provides Tropicana with a platform to find out what matters most to them.

To support the need for more levels of contact and improve customer satisfaction, the Group introduced a dedicated Customer Care department that provides effective and efficient services on matters pertaining to the various developments’ units, houses as well as general enquiries. The staff are trained to be efficient, effective, armed with the right knowledge and able to provide professional service that allow customers to make informed decisions.

Cheria Residences in Tropicana Aman offers spacious interiors with built-in innovative, smart technology

Ridgefield Residences within the award-winning Tropicana Heights offers a wholesome lifestyle within a green environment



The property development landscape is undergoing rapid transformation with evolving market dynamics. The younger generation today who are more inclined to make property purchases are making quicker and better-informed decisions. In order to maximise the value of their purchases, be it for their own use or investment, these younger purchasers are doing more research online, seeking reviews and feedback from their friends and even viewing the units online.

However, with Tropicana’s extensive experience in the industry, the Group understands that its customers still value the importance of viewing properties physically, even though the digital platform is a key factor in the whole purchase process. These show units and galleries enable them to physically walk through the various living spaces, review the finishing touches, ask questions and most importantly, understand the added value that the Group brings to its customers. During the year in review, Tropicana unveiled two brand new show units for Paisley Serviced Residences, its third residential phase at Tropicana Metropark and Cheria Residences at Tropicana Aman, respectively. As at 31 December 2017, Tropicana has 10 galleries across its signature developments nationwide.

In addition to this, the Group worked at increasing its digital footprint in order to increase awareness of its various townships and integrated developments. The Group introduced the “Tropicana Surprize Upsize” campaign that gave customers the opportunity to win a range of quality prizes, namely a free upsized home and interior design packages.

This campaign allowed Tropicana to raise the number of its customer touch points, build awareness on the Group’s signature developments and most importantly, kickstart a long-term relationship with them. Through this campaign, the Group also successfully reached out to its targeted demographic group, those aged 25 to 40 years old, who were more inclined to use digital platforms.

Tropicana understands that its products cater to a wide segment of society, consisting of people from all walks of life. Working closely with an experienced team who bring different ideas and perspectives to the table, they worked tirelessly to design the right mix of amenities and facilities that fulfil the needs of each individual within the respective communities. Taking it a step further, the Group also took the necessary steps to ensure that all of its buildings at Tropicana Heights, including the Recreational Hub complied to the requirements for

people with physical disabilities, in line with MS 1184 (Malaysian Standards). This demonstrated Tropicana’s commitment to design townships that is accessible to all, now and in the future.

Communicating Our Brand Values through Meaningful Engagements

Through its years of experience in the property development industry, Tropicana recognised that changing market demographics, evolving consumer demands and the Malaysian economy had an impact not only on the developers, but also on consumer-purchasing habits in general. In response to these shifting conditions, Tropicana conducted various initiatives and events to strengthen its relationship with its communities and loyal customers.

Property For Everyone

Held over two weekends in March 2017 at Tropicana Metropark, the first-of-its-kind talk was specially designed for its key target groups, namely the Millennials, Executives, Investors and Homeowners. Attended by more than 500 people, the talks were conducted by a stellar line-up of renowned property speakers, investors, entrepreneurs, celebrities and educators to help address their concerns in the area of property purchase.

“Walk & Ride Yellow Event” at Tropicana Aman

The fourth installation of the “Walk & Ride Yellow Event”, a synonymous annual event for the community at Tropicana Aman, witnessed more than 800 participants of all ages who pedalled 16km and walked 2km across the Central Park. Participants were also given a special preview of the work currently in progress at the 863-acre self-contained township and its 85-acre Central Park.

Fun Run at Tropicana Heights

To further strengthen family and community bonds, the 8km Fun Run was held at Tropicana Heights Central Park. The event saw over 600 participants dashing through the development, taking on the various inflatable challenges which not only tested their vitality but also teamwork to finish the race. The participants were also given the opportunity to run along the newly-opened Bandar Baru Bangi – Kajang 2 – Bandar Teknologi Kajang flyover which not only increases accessibility to Tropicana Heights but also reduces commute time to and from the development.

Fitness Fest at Tropicana Metropark

Tropicana Metropark hosted an active weekend on 15 October 2017 for people of all ages as it held a fitness extravaganza that included workout sessions such as Body Combat, yoga and Zumba. Conducted in partnership with Celebrity Fitness and touted as the largest outdoor fitness fest in Subang Jaya, the Tropicana Metropark Fitness Fest was held to promote a healthy lifestyle among the residents as well as those in the surrounding communities.

Tropicana Surprize Upsize

Following the successful “Just Bid It” campaign in 2016, Tropicana introduced the “Tropicana Surprize Upsize” campaign, making it the first property developer to offer its purchasers the opportunity of winning a free upsized property across four of its signature townships and developments in Klang Valley. Properties include high-rise apartments, serviced residences, and landed homes at Tropicana Gardens in Kota Damansara, Tropicana Heights in Kajang, Tropicana Aman in Kota Kemuning and Tropicana Metropark in Subang Jaya. In addition, purchasers who booked a unit during the campaign period stood a chance to win an interior design package worth RM80,000 each.

As it was the first-of-its-kind campaign, the campaign achieved a record-breaking digital engagement of over 4.38 million views for the campaign video and 105,857 unique visits to the campaign website within six weeks. The winner of the campaign was 27-year old Lim Yew Ming who walked away with an upsized unit of 1,000 square feet at Aman 1, Tropicana Aman while the four remaining winners went home with interior design packages worth RM80,000 each.

Delivering Quality Homes with a Difference

Over the last 20 years, Tropicana has delivered quality homes at strategic locations in the central, northern, and southern region of Malaysia, infused with its unique development DNA that focuses on accessibility, connectivity, amenities, facilities, innovative concepts and designs, generous open spaces, multi-tiered security and quality.

As part of its strategy to be market driven and unlock the value of its prime landbank, Tropicana continued to introduce new and innovative living spaces in FY2017 which were well-received. They are as follows:




Tropicana Urban Homes collection offers first-time home buyers and new families who aspire to own accessibly-priced modern homes with holistic township and amenities. This new collection will be built using the Industrialised Building System (“IBS”), an ideal building system that promotes environmental sustainability for better quality homes.

Purchasers will have access to generous open spaces, good amenities, the development’s 85-acre Central Park and also the 10-acre Tenby International School. In short, new home owners will obtain the same value-added enhancements as those living in the high-end property segments, consistent with the Group’s strategy to deliver exceptional value to its customers.

TO ADDRESS THE UNDERLYING NEEDS OF THE MIDDLE-INCOME COMMUNITY AND THE GOVERNMENT’S AGENDA OF BUILDING MORE QUALITY HOMES, TROPICANA CONDUCTED THE MAIDEN LAUNCH OF TROPICANA URBAN HOMES AT ITS AWARD-WINING TOWNSHIP, TROPICANA AMAN.

Aman 1 at Tropicana Aman

GDV of Aman 1

RM326 milLaunched in

December 2017

Aman 1, the first phase of Tropicana Urban Homes is set within the sprawling township of Tropicana Aman with a GDV of RM326 million was launched in December 2017. With its prices starting from RM350,000, it comprises 766 modern apartment units with two different layouts, Type A (870 square feet) and Type B (1,000 square feet). As at 31 December 2017, more than 24% have been taken up.

Dalia Residences at Tropicana Aman

GDV of Dalia Residences

Launched in

RM342 mil

Following the success of its earlier launches, Arahsia, Bayan, and Cheria, for FY2017, Tropicana introduced its most recent precinct, Dalia Residences during the year in review.

Dalia Residences consist of 207 semi-detached homes, zero-lot bungalows and bungalows spanning 38.37 acres. With a GDV of RM342 million and built-up ranging from 3,976 square feet to 4,803 square feet, the units come with highly functional interiors, top quality fittings and finishes as well as smart-home security systems. Since its launch in November 2017, Dalia Residences has experienced positive response from consumers.

TROPICANA’S LARGEST SELF-CONTAINED TOWNSHIP DEVELOPMENT, TROPICANA AMAN, WHICH SPANS A TOTAL 863 ACRES AND COMPLETE WITH ITS 85-ACRE CENTRAL PARK, HAS SUCCESSFULLY SET THE STANDARD FOR MODERN FAMILY LIVING WITH ITS SECURED, INNOVATIVE HOMES THAT ARE ENVELOPED BY ITS NATURAL SURROUNDINGS.

November 2017




Paisley Serviced Residences at Tropicana Metropark

During the year in review, Tropicana launched Paisley Serviced Residences, the third residential phase of Tropicana Metropark with a GDV of RM479 million. Set across 4.29 acres in Tropicana Metropark, Paisley Serviced Residences consist of two towers – 28-storey Tower A with 329 units and a 27-storey Tower B with 258 units. Both towers have a built-up of between 601 square feet to 1,491 square feet.

Residents will also be able to enjoy over 40 resort-themed facilities including three sky terraces, a multi-level gym and an Olympic-sized swimming pool. Residents will have easy access to a 9.2-acre Central Park, commercial phases as well as the GEMS International School which opened its doors in September 2017. Given its strategic location within Tropicana Metropark, Paisley has been designed to suit

SET AMIDST THE BUSTLING SUBANG JAYA TOWNSHIP, TROPICANA METROPARK IS AN 88-ACRE INTEGRATED DEVELOPMENT THAT HAS SUCCESSFULLY PERFECTED THE BALANCE BETWEEN METROPOLITAN VIBRANCY AND NATURE.

GDV of Paisley Serviced Residences

RM479 mil

the lifestyles of millennials, young professionals and modern families. Since its launch in February 2017 and the opening of its show units two months later, this development has received strong response.

Oasis 3 at Tropicana Danga Cove

GDV of Oasis 3

RM129 mil

In FY2017, Tropicana launched the third and final phase of its commercial hub, Oasis 3 at Tropicana Danga Cove, featuring 62 units of spacious contemporary three-and four-storey offices with built-up area between 5,040 square feet and 9,627 square feet.

Built over 11.63 acres and a GDV of RM129 million, these upmarket commercial shop lots will be able to cater to the needs of the ready population cache of over 500,000 people from the surrounding neighbourhoods. Other amenities include private lifts for the front row units, ample parking space, 66-feet wide service roads, spacious seven-feet shopfront walkways and vast window display area. Oasis 3 is strategically located between the two economic backbones of Iskandar region, namely Johor Bahru City and Eastern Gate Development.

SET ACROSS 227 ACRES OF FREEHOLD LAND WITH A TOTAL GDV OF RM6.8 BILLION, TROPICANA DANGA COVE IS AN INTEGRATED DEVELOPMENT CONSISTING OF COMMERCIAL SHOP LOTS BUILT OVER THREE PHASES.

Launched in

Launched in

February 2017

August 2017




Tropicana Aman at Kota Kemuning

The school, with is set across five acres of land comes with excellent facilities such as a full-size elevated, artificial turf football field, a sports hall, a swimming pool, numerous specialist classrooms and labs, a dance studio, a black box theatre and various shared learning spaces to stimulate students. As at 31 December 2017, over 200 students have enrolled in this school, which is able to take up to 2,400 students.

Situated next to the affluent Kota Kemuning neighbourhood, it features an 85-acre Central Park which acts as the development’s green lung, a linear lake and a centrally-located Recreational Hub, ringed by a 100-feet wide tree boulevard, which essentially demonstrates Tropicana’s commitment to sustainability and green living, a key feature across Tropicana’s townships and developments.

THIS SELF-CONTAINED MIXED TOWNSHIP IS SET ACROSS 863 ACRES OF PRIME LAND.

Despite the softening of the property market, Tropicana’s ongoing projects have also continued to perform well since they were launched in the last few years. To date, Tropicana has 49 completed and 15 on-going developments at key growth corridors nationwide, all anchored on its unique development DNA. Some of the best performing products are as follows:

Tropicana Gardens at Kota Damansara

Easily accessible to major highways and established neighbourhoods with multi-tiered security in place, some of the residential phases that have been launched include Arahsia Residences, Bayan Residences, Cheria Residences, Dalia Residences and Aman 1. Meanwhile, the first commercial phase Sinaria Shop Lots, was also launched.

Tropicana’s ability to design this transit-oriented development essentially contributes towards the creation of sustainable urban communities where its residents have ease of connectivity, reduced travel time and a better quality of life.

A FIRST-OF-ITS-KIND INTEGRATED DEVELOPMENT, TROPICANA GARDENS IS POISED TO EMERGE AS KOTA DAMANSARA’S NEXT URBAN HUB AS IT IS CONNECTED DIRECTLY TO THE ELEVATED SURIAN MASS RAPID TRANSIT (“MRT”) STATION.

The Residences at Kuala Lumpur City Centre

BUILT ON 1.28 ACRES OF FREEHOLD LAND, THE RESIDENCES OFFERS 353 UNITS OF LUXURIOUS SERVICED RESIDENCES.

As at December 2017, 90% were sold. The 55-storey tower will be anchored by Malaysia’s first W Hotel, which is expected to begin operations in the second half of 2018.




Tropicana Gardens consists of four residential towers, a shopping mall and office tower. To date, the phases that have been launched are Arnica Serviced Residences, Bayberry Serviced Residences, Cyperus Serviced Residences and Dianthus Serviced Residences.

At Tropicana, the focus has always been centred on designing, creating and building living spaces where residents will be able to enjoy a good quality of life – from spacious houses, sprawling greens, good schools, easily accessible to good security systems for the safety of everyone. Tropicana’s integrated developments are all strategically located with good amenities, facilities, well-connected and easily accessible. The Group has strengthened its competitive advantage as it has not only created thriving townships but also revitalised the surrounding communities.

For instance, residents at Tropicana Metropark will be able to use the flyover that connects the development directly to the Federal Highway once it is completed in 2018 while at Tropicana Heights, the newly-opened Bandar Baru Bangi – Kajang 2 – Bandar Teknologi Kajang flyover will reduce travel time. There will also be a direct, elevated connection that links the Surian MRT station to Tropicana Gardens.

Tropicana’s ability to think ahead, innovate and meet the needs of its customers enabled the Group to achieve sales of RM1 billion for FY2017, with the main contribution coming from the Central region (80%), Southern (12%), Northern (7%) and East Malaysia (1%).

Unlocking the Value of Landbank

As part of the Group’s strategy to deliver long-term value to its shareholders and stakeholders, Tropicana continued its focus on unlocking the value of its landbank in the Central, Northern and Southern regions of Malaysia through development and land sales, accelerating its de-gearing activities to strengthen the balance sheet and conducting successful rebranding activities to further enhance its strong brand value.

Investing in Quality Education

In FY2017, Tropicana witnessed strong performance from St. Joseph’s Institution International School Malaysia (“SJIIM”) (Tropicana PJ Campus) which celebrated its first year of operations in May 2017. SJIIM marked Tropicana’s first foray into the education sector as the Group believes in the importance of education in today’s nation-building roadmap. SJIIM was introduced

Sited on 38.5 acres of land, Cheria Residences comprises spacious double-storey semi-detached homes with wide porches

to ensure the communities in the vicinity would have access to quality education at schools and state-of-the-art facilities. Set across 6.06 acres, SJIIM currently has around 700 students from nursery to Year 12 and targets to achieve full capacity of 1,770 students by year 2020.

Awards

In FY2017, Tropicana’s efforts to continuously innovate and deliver quality living spaces that meet the needs of its customers have gained several notable awards, which include strengthening its position as one of The Edge’s Top Ten Property Developers in 2017 as well as made clean sweeps at the Property Guru Asia Pacific Property Awards and Property Insight Prestigious Developers’ Awards 2017 among other prestigious awards. In fact, its Founder and Adviser, Tan Sri Dato’ Danny Tan was recognised for his legacy in the property sector where he was awarded the Malaysian Fujian Outstanding Entrepreneur Award 2017 by the Federation of Hokkien Associations Malaysia during its 60th Anniversary celebration.

2018 OUTLOOK

In the last 12 months, the property development sector has experienced changes and challenges such as stringent lending policies, increase in unsold property units, approval freeze on selected commercial developments and expectations of an interest rate hike in 2018. Nevertheless, Tropicana believes that this industry will continue to experience growth in 2018.

To deliver sustainable long-term shareholder value and better manage industry perception on its developments, Tropicana’s Investor Relations department will be further strengthened to ensure greater transparency and openness across its operations. With the amplified focus on governance, transparency and best practices by the regulatory authorities, Tropicana will strive to actively communicate more openly with the various investors on its upcoming strategic goals using multiple platforms and most importantly, use these dialogues and discussions to listen to its shareholders and stakeholders.

At Tropicana, understanding market needs are paramount. Given the economic outlook in 2018 and property trends, there is a growing need for more homes in the mid-range segment as the Government continues to introduce initiatives that focus on the middle-income segment. Heeding this call, Tropicana is expected to introduce new residential phases under its Tropicana Urban Homes concept as this allows the Group to cater to the broader market segment. In fact, these homeowners will also benefit as they will be able to own quality homes given the strategic location of Tropicana’s landbank, ease of accessibility, quality educational institutions and well-planned




neighbourhood commercial hubs. The Group aims to build around 15,000 units over the next five years.

In addition to introducing more quality homes, Tropicana will also continue to focus on the introduction of new phases across its signature developments, namely at Tropicana Heights, Tropicana Aman, Tropicana Metropark and Tropicana Danga Cove, which will help deliver strong financial performance in the next 12 months.

Moving into 2018, Tropicana will continue to focus on being market-driven and unlock the value of its 889 acres of landbank with a potential GDV of RM42.1 billion, at strategic locations across the Klang Valley, Northern and Southern regions. However, in the Southern region, Tropicana will focus on changing its product mix to better meet the needs of the consumers here. For non-strategic properties, the Group will also look into divesting as this will assist in achieving its de-gearing initiatives, manage costs more efficiently as well as enhance cash flow for future strategic land bank acquisitions.

Tropicana is also confident of registering steady recurring income stream from its property investment portfolio that includes:• International schools namely St. Joseph’s

Institution International School Malaysia, GEMS International School and the latest addition, Tenby International School which is expected to have its first intake of students in September 2018;

• 150-room W Hotel at Kuala Lumpur City Centre which is targeted to be operational in 2018;

• One million square feet Tropicana Gardens Mall and Tropicana Gardens Office Tower which is targeted to start operations in 2019; and

• 199-room Courtyard by Marriott in Penang which is targeted to begin operations in 2019.

PROTECTING SHAREHOLDER VALUE

Throughout the years, Tropicana has maintained its focus on strengthening its position as one of the top property developers in the country. Apart from the unique Tropicana DNA, the Group has the right ingredients in place – strategically located landbank, attractive design plans, dedicated and motivated workforce – that will ultimately help deliver value to its stakeholders and shareholders.

While Tropicana remained resilient and demonstrated sustainable growth in FY2017, the Group acknowledges that there are various opportunities that abound despite the challenging market conditions. In FY2017, the Group

worked hard to realise several milestones that is aligned to the transformation strategy – being market-driven by launching products that meet the needs of consumers and unlocking the value of its landbank. Tropicana remains committed to protect and realise long-term shareholder value.

NEW BOARD MEMBERS

Tropicana would like to take this opportunity to congratulate Tan Sri Othman bin Abd Razak who has taken on the position of Chairman of Tropicana effective August 2017, and Mr Dion Tan who has taken on the position of Group Managing Director. The Group also welcomes three board members Tan Sri Dr Lim Wee Chai, Deputy Chairman of Tropicana, effective October 2017; Datuk Lim Thean Shiang and Ms Kang Ai Lin, Independent Non-Executive Directors, effective October 2017 and April 2018, respectively.

The Group would also like to thank Dato’ Yau Kok Seng who served as Group Chief Executive Officer from January 2013 to November 2017; and Dato’ Gan Nyap Liou @ Gan Nyap Liow, who served as Senior Independent Non-Executive Director from 18 June 2015 to 9 April 2018, for their contributions that have proven invaluable to Tropicana.

APPRECIATION

I would like to express my appreciation to the Board of Directors and Senior Management Team for their wisdom and commitment to Tropicana through the years. To my colleagues and employees of Tropicana, I would like to extend my heartfelt gratitude for your dedication, passion and perseverance in realising the many projects at Tropicana. I would also like to thank our business partners, business associates, stakeholders and shareholders for your unceasing loyalty and support.

At Tropicana, we will remain focused on seeking growth opportunities as well as create living spaces and communities that meet needs of consumers as we continue to redefine the art of living of Malaysians, now and in the future.

Thank you.

Dato’ Dickson Tan Yong LoongDeputy Group Chief Executive Officer

SJIIM currently has around

Moving into 2018

Given the economic outlook in 2018 and property trends

there is a growing need for more homes in the mid-range segment as the Government continues to introduce initiatives that focus on the middle-income segment

700 studentsfrom nursery to Year 12 and targets to achieve

full capacity of

1,770 students by year 2020

Tropicana will continue to focus on being market-driven and unlock the value of its

889 acres of landbank with a potential GDV of

RM42.1 bil at strategic locations across the Klang Valley, Northern and Southern regions




2017

2017

2016

2016

SEGMENTAL REVENUE

1,459,405

168,053

288,767

1,908,768

SEGMENTAL OPERATING PROFITS

PERFORMANCE AT A GLANCE

Property Development and Property Management

Property Development and Property Management

1,739,369 1,331,194

91%91%

287,065 139,356

99% 83%

27,528 31,721

10% 19%

(25,826) (3,024)

-9% -2%

Property Investment, Recreation and Resort

Property Investment, Recreation and Resort

73,105 72,237

4% 5%

Investment Holding and Others

Investment Holding and Others

96,294 55,974

5% 4% 100%

100%

Segmental Revenue Segmental Operating Profits

2017RM’000

2016RM’000

2017RM’000

2016RM’000

Property Development and Property Management 1,739,369 1,331,194 287,065 139,356

Property Investment, Recreation and Resort 73,105 72,237 27,528 31,721

Investment Holding and Others 96,294 55,974 (25,826) (3,024)

1,908,768 1,459,405 288,767 168,053



PERFORMANCE AT A GLANCE

REVENUE (RM’000)

PROFIT AFTER TAX AND MINORITY INTERESTS (RM’000)

TOTAL ASSETS (RM’000)

1,47

5,50

3

13

1,97

2,35

8

14

1,35

1,70

4

15 17

1,90

8,76

8

1,45

9,40

5

16

362,

308

13

333,

936

14

223,

302

15 17

187,

476

112,

537

16

5,42

5,71

6

13

7,21

4,99

6

14

6,74

0,96

4

15 17

7,55

3,37

8

7,32

5,50

6

16

SHAREHOLDERS’ EQUITY (RM’000)

EARNINGS PER SHARE (SEN) (BASIC)

NET ASSETS PER SHARE (RM)

2,57

0,25

6

13

2,93

2,96

9

14

3,08

6,82

2

15 17

3,30

3,62

8

3,12

6,90

0

16

34.3

1

13

24.8

5

14

15.5

3

15 17

12.8

9

7.87

16

2.32

13

2.14

14

2.15

15 17

2.25

2.19

16

2017 2016 2015 2014 2013

Revenue (RM’000) 1,908,768 1,459,405 1,351,704 1,972,358 1,475,503

Profit after tax and minority interests (RM’000) 187,476 112,537 223,302 333,936 362,308

Total assets (RM’000) 7,553,378 7,325,506 6,740,964 7,214,996 5,425,716

Shareholders’ equity (RM’000) 3,303,628 3,126,900 3,086,822 2,932,969 2,570,256

Earnings per share (sen) (basic) 12.89 7.87 15.53 24.85 34.31

Net assets per share (RM) 2.25 2.19 2.15 2.14 2.32



FINANCIAL HIGHLIGHTS & INSIGHTS

Key Financial Highlights for Financial Year Ended 31 December 2017

• Total sales RM1 billion and high unbilled sales of RM1.52 billion • Net gearing decreased from 0.31x (2016) to 0.27x (2017)

Group Financial Review

RM’000 2017 2016

Revenue 1,908,768 1,459,405

Profit before tax (“PBT”) 288,767 168,053

Profit attributable to owners of the parent (“PATMI”) 187,476 112,537

The Group achieved total development properties sales of RM1 billion for the fiscal year 2017. The strong sales performance has sustained the Group’s unbilled sales at RM1.52 billion, where such unbilled sales level placed the Group in a comfortable position to deliver sustainable earnings performance in the current year.

Group revenue in the full financial year (“FY”) ended 31 December 2017 stood at RM1.91 billion compared to RM1.46 billion in FY2016. The performance was in line with expectations with revenue contribution driven by steady construction progress from the Group’s on-going developments.

For the year, Group PBT increased to RM288.8 million from RM168.1 million in FY2016, whilst profit attributable to owners of the parent in FY2017 was RM187.5 million compared to RM112.5 million in FY2016. The higher PBT was mainly attributable to strong sales performance and cost savings for a few on-going development projects. Besides that, the Group has recognised fair value gain on investment properties amounting to RM36.3 million in FY2017 whereby it was a fair value loss on investment properties of RM1.5 million in FY2016.

The Group PATMI was contributed by strong performance in the Property Development segment of our on-going development projects.

In FY2017, Tropicana’s developments in the Central region continue to draw healthy interest. New launches such as Sinaria, the first commercial phase of the 440-acre Tropicana Aman, Kota Kemuning has attracted a good take-up rate of 61% from buyers while Aman 1, also in Tropicana Aman, attracted a take-up rate of more than 24% within a month of its launch. The existing developments are also continuing to show strong response such as Paisley Serviced Residences in Tropicana Metropark, Subang Jaya and The Residences in the heart of Kuala Lumpur’s city centre which recorded an impressive take up rate of 90%.

With unbilled sales of RM1.52 billion and strategic approaches to unlock the value of 889 acres of prime land with potential gross development value in excess of RM42.1 billion, the Group is expected to be on track to register positive earnings in FY18.

In FY18, Tropicana’s strategy will remain to be market driven and adapted to market demands whilst focusing on unlocking value of its sizeable land bank in strategic locations in Klang Valley, Northern and Southern Regions. Coupled with the Group’s relentless efforts in delivering exceptional values to its customers and convincing track record, Tropicana remains well positioned on delivering sustainable growth.

Detailed analysis of the various business segments are as follows:

PROPERTY DEVELOPMENT & PROPERTY MANAGEMENT

Group’s revenue from property development and property management segment increased by 30.7% or RM408.2 million to RM1,739.4 million from RM1,331.2 million in FY16. The segment operating profit was higher by 106.0% or RM147.7 million to RM287.1 million from RM139.4 million in FY16. The higher performance was contributed by higher profit recognition across key projects within the Klang Valley and Northern Region such as Tropicana Aman in Kota Kemuning, The Residences in the heart of Kuala Lumpur City Centre, Tropicana 218 Macalister in Penang and Tropicana Metropark in Subang Jaya.



FINANCIAL HIGHLIGHTS & INSIGHTS

PROPERTY INVESTMENT, RECREATION & RESORT

Group’s revenue from Property Investment, Recreation & Resort segment recorded at RM73.1 million as compared to RM72.3 million in FY16, increased by RM0.8 million or 1.1%. The segmental profit was 13.2% lower at RM27.5 million compared to RM31.7 million in FY16. The lower segmental profit was attributed to increase in other operating expenses from various investment properties of RM6.2 million during the financial year.

Overall, the earnings from this segment continue to remain at sustainable levels through recurring incomes of its investment properties.

INVESTMENT HOLDING & OTHERS

Group’s revenue from this segment stood at RM96.3 million in FY17 as compared to RM56.0 million in FY16; an increase of RM40.3 million or 72.0%. The revenue from this segment continue to remain at sustainable levels which are contributed by a few subsidiaries namely Tropicana Building Materials Sdn. Bhd., Tropicana Innovative Landscape Sdn. Bhd. and Tropicana SJII Education Management Sdn. Bhd.. Group Capital Structure

RM’000 FY2017 FY2016

Shareholders’ Fund 3,303,628 3,126,900

Gross Borrowings 1,847,774 1,813,264

Cash and Bank Balances 941,410 841,265

Net Borrowing 906,364 971,999

Gross Gearing ratio 0.56 0.58

Net Gearing ratio 0.27 0.31

Net Assets Per Share (RM) 2.25 2.19

The shareholders’ equity of the Group improved by 5.7% or RM176.7 million to RM3,303.6 million as at 31 December 2017. The improvement was mainly due to better operational performance and higher retention of the current profit.

The Group’s financial position has strengthened considerably, with net gearing at the end of December 2017 slightly decreased to 0.27 times, as compared to 0.31 times registered as at the end of December 2016.

The Group is expected to continue its satisfactory performance in year 2018 amid a more challenging business environment driven by the momentum created from the Group’s stellar performance in FY2017 and the various pipelines of on-going projects. While prospects for the property sector remains challenging in the short-term, the Group believes that there will still be demand for properties in prime locations that have accessibility to superb amenities and competitive pricing.



VALUE ADDED STATEMENT

2017 RM’000

2016 RM’000

Value Added

Total turnover 1,908,768 1,459,405

Purchases of goods and services (1,460,166) (1,182,230)

Value Added by the Group 448,602 277,175

Share of results of an associate (1,121) (2,184)

Share of results of joint ventures 29,651 43,854

Total Value Added 477,132 318,845

Reconciliation :

Profit for the year 187,476 112,537

Add: Depreciation and amortisation 23,715 26,448

Finance costs 62,478 40,447

Salaries and other staff costs 102,172 83,897

Taxation 91,778 53,052

Non-controlling interests 9,513 2,464

Total Value Added 477,132 318,845

VALUE DISTRIBUTED

Employees

Salaries and other staff costs 102,172 83,897

Government

Corporate taxation 91,778 53,052

Providers of capital

Dividends 46,533 64,292

Finance costs 62,478 40,447

Non-controlling interests 9,513 2,464

Reinvestment and growth

Depreciation and amortisation 23,715 26,448

Income retained by the Group 140,943 48,245

Total Distributed 477,132 318,845



INVESTOR RELATIONS

STRENGTHENING RELATIONSHIPS, BUILDING CONFIDENCE

At Tropicana, our ability to introduce new and innovative concepts at our townships and integrated developments has allowed us to continuously capture new opportunities and drive performance to sustain long-term shareholder value.

As part of the strategy to sustain business growth and good corporate governance, one of Tropicana’s key priorities is to develop and maintain open, consistent and constructive dialogues with its shareholders, the financial and investing community as well as other stakeholders; through a well-structured Investor Relations programme.

During these engagements sessions, Tropicana proactively communicates the value of the company, both from a financial and non-financial perspective, its current best practices, updates on its transformation strategy, governance, best practices and also long-term growth goals in an effort to provide with timely, accurate, objective, tangible and comprehensive communication. This was done primarily to ensure that our stakeholders

and shareholders will be able to make a fair, balanced, credible and understandable assessment on the Group’s position and prospects, in addition to making an accurate valuation of Tropicana.

Through these dialogues and discussions, Tropicana also takes time to listen to feedback, expectations and views in order to gain deeper insights on how we can do better and strengthen shareholder confidence in the Group. The on-going engagements were conducted via multiple platforms, including briefings, one-on-one meetings, investor-related events and media presentations.

Throughout FY2017, Tropicana provided continuous updates on the Group’s developments as well as held regular dialogues and discussions with shareholders, fund managers and financial analysts. There were two face-to-face Analysts’ Group Meetings that were held, namely the 2017 Analyst Group Meeting held on 7 September 2017 (secondquarter) and 13 March 2018 (fourth quarter). The AGM which was held on 30th May 2017 provided us a platform to interact and update the shareholders on our performance progress. In addition, more than 10 meetings were conducted to enlighten the various analysts, institutional investors and fund managers on Tropicana’s financial and non-financial performance.

To further strengthen shareholder and stakeholder engagement, the Tropicana Investor Relations section on the Group’s corporate website acts as an additional communication platform for stakeholders, shareholders and the general public to obtain information about the Group. This comprehensive site hosts a plethora of information such as the Group’s annual reports, disclosures to Bursa Malaysia, share information, financial results and more.

Tropicana is a member of the Malaysian Investor Relations Association (“MIRA”) that keeps us well-informed on the industry’s best practices and to establish relationships with the investing community through constructive conversations.

CONTACT OUR IR TEAM

Analysts, current and potential investors who have any questions or would like to provide feedback on the Company are encouraged to contact our IR Team:

We will respond to all received questions,

promptly.

For latest updates on the Company,

shareholders and interested parties are also

encouraged to access the Tropicana corporate

website at www.tropicanacorp.com.my as

well as through the Bursa Malaysia Securities

website, www.bursamalaysia.com

Email : [email protected]

Tel : 03-7710 1018

Fax : 03-7725 5392

Tropicana provides updates on the Group’s developments and holds regular dialogues and discussions with shareholders, fund managers and financial analysts.



QUALITY ASSURANCE

We believe that sustaining high-quality standards is a continuous process that involves building and sustaining relationships as this allows us to assess, anticipate and fulfil stated and implied needs of our stakeholders. It sets the foundation for efficient management of operations across the various departments, units and divisions as well as defines the improvements needed, more so with the advent of technology across all processes and procedures.

One of the key elements of Tropicana’s internal control system is that all departments and/or operating units must have clearly documented standard policies and procedures, which are subjected to regular reviews and improvements.

Guided by our quality philosophy, Tropicana will continue to:• Review the effectiveness of the Quality Management System and strive to meet customers’ expectations;• Comply with statutory, regulatory and MS ISO 9001 requirements and seek continuous improvements with regard to Tropicana’s Quality Management System;• Enhance the skill and knowledge of Tropicana staff through continuous coaching and training; and• Ensure a safe, healthy and conducive work environment at all times.

CONTINUOUS IMPROVEMENT PROCESSES

Sustaining our quality levels is a never-ending quest. A whole-of-organisation approach is needed to identify and eliminate the root cause for each problem or issue.

IMPROVEMENTCYCLE

IDENTIFYOPPORTUNITIES FOR IMPROVEMENT

IMPLEMENTCHANGES

MONITORRESULTS

AUDIT

Tropicana Gardens in Kota Damansara is a Green Building Index (“GBI”) certified development

QUALITY MANAGEMENT SYSTEM

Based on our unceasing commitment towards enhancing quality standards, we have established a strong foundation for our Quality Management Systems (“QMS”) which outlines the appropriate controls for processes and interactions, internally and externally.

These quality management principles, as per those stated in MS ISO 9001 and recognised best practices, have been taken into consideration during the development of Tropicana’s processes. These stringent processes have also been through rigorous reviews in an effort to enhance internal and external customer expectations and requirements.

To ensure our staff across all departments and levels are kept updated on these advances, they are required to undergo continuous training and awareness sessions to inculcate better understanding of Tropicana’s quality management systems and enhanced knowledge on specific matters.

At Tropicana, our uncompromising adherence to quality standards and the strong pursuit of continuous improvements has helped build our reputation as a premier quality developer in Malaysia. Towards this end, achieving quality excellence has emerged as a core focus of our business operations and a tool to achieve total customer satisfaction.



INTERNAL QUALITY AUDIT

Internal Quality Audit is fundamental to our quality management system as it verifies the suitability and effectiveness of company’s inherent systems. Through the assessment of inputs, outputs and controls within a process, as well as interactions with other processes, internal quality auditing has been able to single out the weak links between processes and identify opportunities for further improvement.

As part of our on-going staff development programme, 112 employees from various departments have been selected to be trained as Internal Quality Auditors. The enlarged pool of auditors will provide an opportunity for more effective and efficient auditing and planning.

CUSTOMER SATISFACTION SURVEY

Understanding customer perception is central in developing and improving Tropicana’s processes, products and services. For every successful vacant possession, the valuable and constructive feedback received from our customers via the Customer Satisfaction Survey (“CSS”) are systematically collected and assessed for review and improvements. The CSS is based on five key perspectives, as shown below:

During the year under review, our efforts to retain our quality standards bore fruit as we achieved 97% and 82% in our CSS ratings for Arnica Serviced Residences in Tropicana Gardens and Pandora Serviced Residences in Tropicana Metropark, respectively.

CONTROL OF OUTSOURCED SERVICES

Control of outsourced services was established during the year under review to ensure the services provided by third parties were monitored and reviewed.

The outsourced services controlled within the quality scope included:

• Consultancy services;• Construction works; and • Materials procurement/Supply services.

Regular discussions and annual performance evaluations were held to ensure services and products met internal and external customer needs and expectations.

Recognising the importance of quality workmanship, Tropicana also put strong emphasis in advancing the capabilities and skills of our contractors. In this regard, a series of Quality Benchmark Training (“QBT”) sessions were provided regularly to ensure the quality of our end-product remained on par with the standards set.

PRODUCT QUALITY

Our product quality monitoring and reviews have been conducted based on recognised models from QLASSIC by CIDB Malaysia.

Across all our developments, progressive assessments were conducted to ensure we adhered to our quality standards. For areas that did not meet market expectations or met benchmarks, further analysis was carried out. This was done to study the need for further capacity and utility upgrades to enhance the performance of the building.

A series of quality assessments were also executed at defined stages, comprising structural, architectural as well as mechanical and electrical (“M&E”) works. For check and balance purposes, we also performed in-progress assessments with the respective project teams to ensure the projects were completed within the specified quality levels. A final architectural assessment was also done as an independent evaluation on Tropicana’s product quality.

During the year under review, we conducted six training programmes to enhance the knowledge and skills levels of our staff, contractors, consultants and other service providers. These training sessions promoted self-assessment practices throughout Tropicana developments to ensure continuous monitoring of product quality.

PRODUCT QUALITY ASSESSMENT

Projects in Tropicana are subjected to Independent quality assessments by QLASSIC quality standards.

Latest assessed projects by CIDB (QLASSIC) are as follows:

• GEMS International School at Tropicana Metropark, Subang Jaya Score: 82.00% • Parkfield Residences at Tropicana Heights, Kajang Score: 78.00%

ENVIRONMENT& COMMUNITY

MATERIALQUALITY

DESIGNQUALITY

WORKMANSHIPQUALITY

DEVELOPMENTCONCEPT

QUALITY ASSURANCE

Fuelled by passion to be one of the premier property ... - insage

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