STAYING THE COURSE Report to Shareholders 2004

STAYING THE COURSE Report to Shareholders 2004

CONTENTS Staying the Course Corporate Profile 4 CORPORATE STEWARDSHIP Chairman's Statement 6 Board of Directors 12 Senior Management 20 Profile of Directors and Senior Management 24 Interested Person Transactions 27 Group Financial Highlights 28 Simplified Balance Sheet 29 Five-year Financial Profile 30 Group Quarterly Results 31 Architect of Value Corporate Governance 34 Investor Relations 48 People in Review 52 Community Relations 57 Environmental Responsibility 62 Leverage for Edge Special Feature - Asia s Dynamic Economies 68 Choices for Courses OPERATING AND FINANCIAL REVIEW Structure of Keppel Land Group 80 Strategic Directions and Outlook 81 Financial Review 83 Segmental Reporting 88 Sensitivity Analysis 91 Property Portfolio Analysis 92 Value Added Statement 94 Productivity Analysis 96 Economic Value Added 98 Corporate Liquidity and Capital Resources 99 Risk Management 101 Business Dynamics and Risk Factors 104 Critical Accounting Policies 105 Asian Economic and Property Round-up 106 Operations and Market Review 112 Target on Ace Significant Events 160 Awards and Accolades 162 Regional Network 166 STATUTORY REPORTS AND ACCOUNTS Directors Report 170 Statement by the Directors 174 Auditors Report 175 Consolidated Profit and Loss Account 176 Balance Sheets 177 Consolidated Statements of Changes in Equity 178 Consolidated Cash Flow Statement 180 Summary of Significant Accounting Policies 182 Notes to the Financial Statements 187 Significant Subsidiary 209 and Associated Companies CORPORATE INFORMATION Corporate Directory 215 Calendar of Financial Events 215 Key Personnel 216 Corporate Structure 218 Property Portfolio 220 SHAREHOLDER INFORMATION Statistics of Shareholdings 231 Notice of Annual General Meeting 233 and Closure of Books Share Transaction Statistics 237

Staying the Course

We are staying the course to deliver continued earnings growth through building our brand equity with a holistic approach to creating an optimal living environment which epitomises quality, innovation and integrity

CORPORATE PROFILE Keppel Land Limited began in 1890 as Straits Steamship Company Limited, a ship operator and owner. In the 1970s, the Group went into new businesses such as property, warehousing and distribution, and leisure. In 1983, Straits Steamship Company became a subsidiary of Keppel Corporation Limited. As property became its core business, the Company was renamed Straits Steamship Land Limited in 1989. In 1997, in a Keppel Group-wide exercise to adopt a common identity, Straits Steamship Land was renamed Keppel Land, the property arm of Keppel Group, one of Singapore s largest multi-national groups with key businesses in offshore and marine, infrastructure and property. Today, Keppel Land is a leading property development company in Asia recognised for its award-winning premier residential projects and investment-grade offices, and its high standards of corporate transparency and disclosure. It is geographically diversified in Asia including Singapore, China, Thailand, Vietnam, India, Indonesia, Hongkong, Japan, South Korea, Malaysia, Philippines, Australia and Myanmar. The Company is one of the largest listed property companies by total assets on the Singapore Exchange. Keppel Land s return on equity is among the highest in the property industry in Singapore. Overseas earnings have grown to 43.1% of the Group s net profit in 2004 from 3% in 2002. The Company is on track towards achieving at least 50% of net profit from overseas by 2005. Keppel Land is currently focused on two core businesses of property development for sale and property fund management to achieve higher returns. The Company will divest low-yielding investment properties and re-deploy resources into higher-yielding businesses and assets. Keppel Land aims to be a leading developer of quality housing in the region. Riding on strong economic growth and homeownership aspirations, favourable demographics and urbanisation trends, it is presently focused on Singapore, China, Thailand, Vietnam, India and Indonesia. The Group has also embarked on residential township development to tap on the demand for quality housing from the growing middle class in the region. Keppel Land will grow its property fund management business for a recurring stream of fee-based incomes. The Group targets to build its fund management arm, Alpha Investment Partners Limited, into a successful manager of property funds, leveraging Keppel Land s reputation as a developer, owner and manager of premier properties, its extensive network and market knowledge in Asia, and its good corporate disclosure and investor relations. 05

CHAIRMAN S STATEMENT

Keppel Land has achieved a growth of 32.5% in net profit. Return on equity has improved to 8.6%. Overseas earnings have grown to 43.1% of total earnings from 32% in 2003 and 3% in 2002. The Company is on track towards achieving at least 50% of net profit from overseas by 2005. On behalf of the Board, I present the Keppel Land Group report for the year ended 31 December 2004. Financial Performance 2004 saw a vast improvement when compared to the previous year which was affected by the Severe Acute Respiratory Syndrome (SARS) outbreak, the US-Iraq war and terrorist attacks. Group turnover was lower at $476.2 million compared with $678.8 million for the previous year due to the completion of several projects in Singapore and overseas in 2003. However, new projects in China and Thailand have begun to contribute. Profit at both the pre-tax and after-tax levels was higher because of strong performance in the Group s trading projects. This came from the sale of four Cluny Hill bungalow plots in Singapore, and residential projects overseas, especially in China. The Group s tax expense at only $2.9 million was 75% lower than the previous year s figure of $11.4 million. This significant reduction can be attributed to benefits from group tax relief of $16.1 million, and a write back of deferred tax provisions of $3 million as a result of the reduction of Singapore corporate tax rate from 22% to 20%. Overseas operations continued to post higher contributions, especially from trading projects. The Group s hotels and resorts in the region also saw an improvement as business travel and tourism recovered post-sars. At the attributable level, overseas earnings increased by 44.1% to $57.5 million from $39.9 million for the previous year. With new acquisitions in Singapore and overseas, and investment in properties by the fund management business, the Group s net debt/equity ratio increased albeit slightly, to 0.96 from 0.95 a year ago. 07

Proposed Dividend The Board is recommending to shareholders a final gross dividend of 10% or 5 cents per share less tax. The dividend payout, amounting to $28.5 million is subject to shareholders approval at the Annual General Meeting scheduled on 29 April 2005. If approved, the dividend will be paid on 24 May 2005. Keppel Land continued to acquire land in Singapore selectively. After buying an adjoining piece of land to an existing site at Wee Nam Road in late 2003, the Group jointly purchased another site adjacent to its Devonshire Road project. The larger integrated plots will allow for the provision of a wider range of recreational facilities and enhancement of project value. Strategic Review Regionally, Keppel Land continued to make headway into new countries, new districts and new segments. The Group has entered into Bangalore, the Silicon Valley of India, with local developer Puravankara to jointly develop a 2,002-unit condominium project. The recovery of the office sector has become more visible with higher occupancies and rentals. Take-up for the whole year was 1.07 million sf, after two years of negative net demand of 1.13 million sf and 0.93 million sf respectively in 2003 and 2002. Island-wide occupancy has gone up to 84% from 82.1% at the end of 2003. Average prime office rentals rose by 10% to $4.40 psf over the same period. In China, the Group has ventured into the villa segment in the Qingpu district, Shanghai. To tap on the demand for good quality housing from the growing middle class, Keppel Land embarked on residential township development a few years ago to build a sustainable stream of earnings for the longer term. The Group recently gained a foothold in Indonesia, acquiring one of the last large plots of land available for township development in Jakarta. Internationally, Singapore s office rental rates are attractive vis-a-vis other major cities in the world. A global ranking of office locations by CB Richard Ellis puts Singapore in the 56 th position after Asian cities like Hongkong, Seoul, Mumbai, Shanghai and Beijing. Another survey of office accommodation costs (on a per work station basis) by DTZ Research ranked Singapore 92nd out of 113 locations in 44 countries. The competitive position will help to keep Singapore in the spotlight for businesses considering setting up operations in Asia to ride on the region s recovery. 08 Major Developments Singapore The Singapore economy staged a strong rebound with a GDP growth of 8.4% for 2004, compared with 1.4% in 2003. Both the residential and office markets saw an uptrend from the second quarter with improved take-up and modest price increases. The residential market saw the increased sale of good class bungalows, a revival of buying interest including from foreigners in selected projects, and the resurgence of en bloc collective sales for redevelopment. The take-up of new units rose to 5,785 units, up 12% from the previous year. For the full year, the URA price index rose 0.9% compared to a decline of 2% in 2003. The Group shared a similar experience with the projects it launched. Four Cluny Hill bungalow sites were sold. Caribbean at Keppel Bay saw 100% of the 135 units of its second release taken up while Urbana saw 79% of 96 units released taken up. One Raffles Quay, the Group s landmark joint venture office development secured two prized tenants ABN AMRO and Deutsche Bank. With ABN AMRO and Deutsche Bank taking 160,000 sf and 140,000 sf respectively, about 25% of the total office development has been pre-committed. When completed in 2006, One Raffles Quay s North and South towers will provide 1.3 million sf of prime office space. Affirming the Group s quality hallmark for its developments, Prudential Tower took the top prize in the office/industrial category of the FIABCI Prix d Excellence Awards, considered the Oscars of the real estate industry in the world. Two other office developments, HarbourFront Tower One and Keppel Bay Tower, received the Construction Excellence Award from the Building and Construction Authority. In February 2005, Keppel Land and Harrah s Entertainment of the United States jointly submitted concepts to the Singapore Tourism Board on the development of world-class integrated resorts at

Sentosa and Marina Bayfront. The government s decision on whether to proceed with the integrated resorts is expected by mid-april 2005. Overseas China Despite government measures to cool the property market, the Group s projects in Shanghai, Beijing and Chengdu continued to chalk up good sales. Like its successful predecessor One Park Avenue, 8 Park Avenue saw a 100% take-up of the three blocks (with 230 units) launched in the Shanghai market. Meanwhile in Beijing and Chengdu, more than 90% of the 541 and 582 units launched respectively at The Seasons and The Waterfront have been sold. Keppel Land took the opportunity to acquire a prime site for villa development in Shanghai by buying over a company which owned a 153,726 sm site in the Qingpu district. Located in the established villa enclave of Xujing town, the site will provide 186 landed homes. Demand is expected to come from well-to-do locals and expatriates. Apart from the gateway city of Shanghai, Keppel Land is continuing its inroads into China s secondary cities. Keppel Land has also taken a 15% stake in a residential development, with ancillary commercial elements in Fuzhou, the capital city of Fujian province. Vietnam In August 2004,Keppel Land s Ho Chi Minh City projects Villa Riviera and Saigon Sports City, received investment licences from the Ministry of Planning and Investment to proceed with construction and sale. see the launch of the 782 high-rise apartments in the first phase of Saigon Sports City. India During the year, Keppel Land entered into a joint venture to acquire and develop a 9.7-ha site in Bangalore, which has one of the fastest growing urban populations in India. The joint venture partner is ISO 9001-certified developer Puravankara with over 20 years of experience in residential development. The freehold site, situated in a locality popular for IT campuses, will be developed into an 18-storey condominium with more than 2,000 units. Demand is expected to come from IT professionals, non-resident Indians and middle-income families. Keppel Land will continue to monitor other growth cities like New Delhi, Hyderabad, Mumbai and Chennai. Thailand In Bangkok, the Group s subsidiary Keppel Thai Properties Public Company (KTP) launched the first phase of its 367-unit landed development, Villa Arcadia at Srinakarin. Srinakarin is a suburban centre close to the future new international airport as well as hypermarkets Carrefour and Makro. Being close to recreational amenities, it attracts young families. To-date, 31 out of the 50 two-storey detached homes launched for sale have been sold. KTP s second development, Villa Arcadia at Watcharapol, targeted at the upper-middle income group, is expected to be launched in the second half of the year. Watcharapol is an established residential enclave, north of Bangkok. Some 270 double-storey homes are being developed for sale. Located in the well-established residential area of An Phu Ward in District 2, Villa Riviera comprises 113 villas with sizes ranging between 300 sm and 550 sm. It is located close to International Grammar School, British International School and the Metro Hypermarket. Of the 25 villas launched, 14 have been sold at an average price of US$410,000 per unit. Indonesia In December 2004, Keppel Land tied up with PT Modernland Realty, a listed property developer on the Jakarta Stock Exchange, to purchase and develop a 270-ha site in Cakung, Jakarta. The proposed township is located in the vicinity of a successful mature residential township, Kelapa Gading. Saigon Sports City is a residential township with a fully-integrated commercial and recreational/sporting hub. Spread over 74 ha, it will be the first of its kind in Vietnam and will introduce locals to a healthy lifestyle development concept. The second half of 2005 will Targeted at middle to upper-middle income families, the entire township will be developed in phases over 10 to 15 years. The township will yield about 7,000 landed housing units with substantial space allocated to retail and entertainment malls, 09

international schools and other public facilities. In Surabaya, a retail complex known as BG Junction has secured Carrefour hypermarket as its anchor tenant. The French hypermarket has pre-committed to 11,940 sm for 25 years. The strata-titled development with total net lettable area of 37,836 sm, in which Keppel Land has an 80% stake, is currently under construction. The development will be ready in 2006. Pre-sale of the individual strata-titled units has commenced. Fund Management Keppel Land s fund management vehicle Alpha Investment Partners (Alpha), has set up a second fund called Alpha Core Plus Real Estate Fund to invest in institutional grade, income-producing properties in mature Asian markets. At its first closing, the fund raised a total of $275 million. Two cornerstone investors from Europe and Australia have committed a total of more than $100 million each, while Keppel Land will invest $41 million in the fund. Meanwhile, the first fund called the Asia No. 1 Property Fund, which was set up in joint venture with Henderson Global Investors, has invested some 60% of the $170 million raised. When the two funds are fully invested, assets under management will be about $1 billion. To be better positioned to tap on the deal-flow, Alpha recently opened new offices in Seoul and Tokyo. newly-reconstituted Business Times Corporate Transparency Index. Commitment to Shareholder Value Keppel Land has achieved a growth of 32.5% in net profit. Return on equity has improved to 8.6% from 8.5% in 2003 and 6.4% in 2002. Overseas earnings have grown to 43.1% of total earnings from 32% in 2003 and 3% in 2002. The Group is on track towards achieving at least 50% of net profit from overseas by 2005. The Company has also increased its dividends to shareholders to 5 cents per share, up from 4 cents per share in 2003, 3.5 cents per share in 2002 and 3 cents per share in 2001. As the Group grows its operations overseas, risk management continues to be an important area. Keppel Land has initiated an exercise to quantify risks and their impact on the Group s future earnings. The analysis covered key property projects and identified indicators that act as warning signals for timely review and corrective actions. Going Forward With its first foray into Bangalore, Keppel Land is now in the two dynamo economies of Asia - China and India. In these two countries as well as others in the region, strong economic growth and the thriving middle class will drive the demand for good quality housing. 10 Corporate Governance and Transparency With its commitment to good corporate governance practices, the Group continued to win several awards. A study of corporate disclosure of Singapore-listed companies by Standard & Poor s and National University of Singapore placed Keppel Land among the top five companies. Another survey by US-based Institutional Shareholders Service and Business Week which covered 1,785 non-us companies from Canada to Japan ranked Keppel Land top among Singapore real estate companies and 6 th among Singapore companies. The Group was runner-up for the Most Transparent Company (Properties) and also received a Merit Award for Corporate Governance at the Securities Investors Association (Singapore) Investors Choice Awards 2004. For good disclosure of its 2003 results, the Group ranked among the top 6% of 570 companies in the Keppel Land s residential townships will cater to this group. Based on current projects, the Group will be able to provide some 20,000 homes across the region. The first residential townships in China and Vietnam will be launched in 2005. In Chengdu, some 970 units in the first phase of The Botanica township, a joint venture with HDB Corp, will be launched in the first half, while in Ho Chi Minh City, some 782 units of the first phase of Saigon Sports City will be launched in the second half. Excluding townships, the Group will be launching about 7,000 homes in China, Vietnam, Thailand and Indonesia over the next few years. In 2004, it sold more than 1,100 homes in China, Thailand and Vietnam. Home sales are expected to increase as the Group expands further afield.

Keppel Land is diversifying its earnings base, and building up on sustainable stream of incomes from overseas. In Singapore, the Group has positioned itself to tap on the economic recovery with the launch of three new choice projects, Park Infinia at Wee Nam, The Belvedere and a residential development at Devonshire Road. Totalling more than 800 units, the projects are freehold and located in sought-after districts close to amenities and transportation nodes. The Group remains committed to the divestment of its low-yielding investment assets. With the office market showing firm signs of recovery, the Group will continue to monitor the market for the appropriate divestment options to maximise shareholders value, be it by real estate investment trusts (REITs), direct sale or securitisation. Increasingly, real estate is becoming an assets class that has greater institutional ownership. quality and excellence. As we scale up our operations, they continued to transplant the hallmark of quality in the region. This is evident from the many awards we have won from residential projects in China to serviced apartments in Vietnam. I would like to take this opportunity to welcome a new member to the Board. Mr Heng Chiang Meng, who is joining the Board on 1 March 2005, comes with many years of experience in the finance and property sectors. I am sure he will be able to contribute tremendously. I would also like to take this opportunity to thank shareholders, business partners and customers for their continued support. With the Board s guidance and the efforts of management and staff, Keppel Land will strive to achieve sustainable growth. The Group continues to grow its fee-based income through its fund management business. We expect Alpha s earnings to flow through as it grows in scale with more monies raised for existing funds and expansion in assets under management. Acknowledgements On 26 December 2004, more than 10 countries in the region were hit by the tsunami. Fortunately, the Group s operations in Indonesia, India, Thailand, Myanmar and Malaysia were not located in the affected areas. Keppel Land staff members responded quickly, spontaneously raising funds to support the relief efforts. I wish to thank our staff for their commitment to product LIM CHEE ONN Chairman 28 February 2005 11

BOARD OF DIRECTORS Khor Poh Hwa Member Nominating Committee Kevin Wong Kingcheung Managing Director Lim Chee Onn Chairman 12

Thai Chee Ken Chairman Audit Committee Member Nominating Committee Lim Ho Kee Chairman Nominating Committee Member Remuneration Committee Tsui Kai Chong Member Audit Committee Member Remuneration Committee 13

BOARD OF DIRECTORS Teo Soon Hoe Niam Chiang Meng Member Nominating Committee Lee Ai Meng Member Audit Committee 14

Tan Yam Pin Choo Chiau Beng Chairman Remuneration Committee 15

BOARD OF DIRECTORS Lim Chee Onn, 60 Bachelor of Science (First Class Honours) in Naval Architecture, Glasgow University; Masters in Public Administration, Kennedy School of Government, Harvard University; Member of Wharton Society of Fellows, University of Pennsylvania; Honorary Doctor of Engineering, Glasgow University. Executive Chairman of Keppel Corporation Limited. He is Chairman of Keppel Land Limited, MobileOne Ltd, and Singapore-Suzhou Township Development Pte Ltd and a Board Member of the Monetary Authority of Singapore and k1 Ventures Limited. Mr Lim is also the Honorary Chairman of the National Heritage Board. Mr Lim started his career in the Civil Service. He was Deputy Secretary, Ministry of Communications until elected as Member of Parliament for Bukit Merah in July 1977. He served as Political Secretary, Ministry of Science and Technology from August 1978 to September 1980. He was Secretary-General, National Trades Union Congress from May 1979 to June 1983 and concurrently Minister without Portfolio, Prime Minister's Office from September 1980 to July 1983, and remained as Member of Parliament, Bukit Merah Constituency until August 1991. He was then elected Member of Parliament for Marine Parade GRC from September 1991 to December 1992. In addition, Mr Lim is Co-Chairman of the Philippines-Singapore Business Council; consultant for the People's Government of Yunnan Province, PRC; Deputy Council President, China Foreign Trade Council, and Deputy Chairman of the Seoul International Business Advisory Council. He is a Member of the Suzhou Industrial Park (SIP) Development Advisory Committee, the Singapore-US Business Council and Singapore representative, ASEAN Business Advisory Council. Mr Lim is also Counsellor of The Conference Board's Global Advisory Council on Economic Issues and member of the INSEAD Singapore International Council. Kevin Wong Kingcheung, 49 Mr Wong has been Managing Director, Keppel Land Limited since January 2000. Prior to this appointment, he was Executive Director since November 1993. He is Chairman and Director of Keppel Philippines Properties, Inc., Chairman and Director of Keppel Thai Properties Public Co Limited, and Vice-Chairman and Director, Dragon Land Limited. He is also a Director of HDB Corporation Pte Ltd. Prior to joining Keppel Land Limited, Mr Wong had diverse experience in the industry working with companies in the UK, USA and Singapore. Mr Wong holds a Bachelor degree in Civil Engineering with First Class Honours from Imperial College, University of London, and a Master degree from the Massachausetts Institute of Technology, USA. Thai Chee Ken, 66 Mr Thai is currently Director, Keppel Land Limited. He is also Deputy Chairman of Dynasty Corporation (S) Pte Ltd, Director of United Engineers Limited, Prudential Assurance Company Singapore (Pte) Ltd and Schroder Investment Management (Singapore) Ltd. Mr Thai is a Certified Public Accountant. 16

Khor Poh Hwa, 55 Mr Khor is the President and Chief Executive Officer of CPG Corporation, Director of Keppel Land Limited since 1998 and China-Singapore Suzhou Industrial Park Pte Ltd. Mr Khor is a member of the Network China Steering Committee, Singapore-British Business Advisory Council. He is the President of the Singapore-Suzhou Club (since its formation in February 2002) and the immediate Past President of the Society of Project Managers. Mr Khor is a civil engineering graduate with Bachelor and Master degrees from the National University of Singapore. Lim Ho Kee, 60 Mr Lim is Director of Keppel Land Limited and a number of private and public companies including Cycle & Carriage Limited, MCL Land Limited, Singapore Post Limited and Vertex Venture Holdings Ltd. He was a Director of Singapore Telecommunications Limited from October 1986 till September 2000 as well as Chairman of its Finance and Investment Committee. He was also previously Chairman of UBS (East Asia) and member of the group executive board in Zurich. Mr Lim served on the Board of the Civil Service College as well as the Singapore Government's Public Sector Divestment Committee in 1987. He also sat on the Singapore Government's Economic Planning Committee from December 1989 to October 1991. He was a member of the Committee on Singapore's Competitiveness from May 1997 to October 1998. Mr Lim studied at the London School of Economics where he obtained his Bachelor of Science (Economics) Honours degree in 1968. Tsui Kai Chong, 49 Associate Professor Tsui is a Director of Keppel Land Limited since 2001. He was the founding Dean of the School of Business and the Vice Provost of Undergraduate and Graduate Education at the Singapore Management University. He was previously an Associate Professor in the Department of Finance and Accounting, Faculty of Business Administration, the National University of Singapore and Deputy Director of the Graduate School of Business. He is a member of the Board of Governors, IP Academy, Singapore. His current research interests include market microstructure and behavioural finance. He has studied and published papers on prediction of corporate financial distress, corporate capital structure, dividend policy, stock price behaviour and the Eurodollar futures market. He received his PhD in Finance from New York University in 1988 and his Certified Financial Analyst qualification in 1993. 17

Lee Ai Ming, 50 Mrs Lee was appointed to the Board in November 2002. She is currently the Deputy Managing Partner of the law firm of Rodyk & Davidson. She has practised law for more than 20 years in the areas of commercial litigation, real estate and intellectual property. Mrs Lee is also an independent Director and Chairperson of the Nomination Committee and member of the Audit Committee of HTL Holdings Limited. Mrs Lee has, over the years, served on various forums, including as Executive Committee Member of the Law Society; Vice-Chairperson, Asian Patent Attorney's Association - Singapore Group; member of the International Panel of Neutrals of the International Trade Marks Association; member, Advisory Panel of the Trade Development Board on Franchising, and member of the CEO's Round Table on Branding organised by the Trade Development Board. Mrs Lee holds a Bachelor of Laws (Honours) from the University of Singapore, and is an Advocate & Solicitor of the Supreme Court of Singapore. Niam Chiang Meng, 46 Mr Niam was appointed to the Board on 1 June 2003. He is the Permanent Secretary of the Ministry of Community Development, Youth and Sports. He is also a Director in several companies, namely SMRT Corporation Ltd, SMRT Trains Ltd, SMRT Road Holdings Ltd and Singapore Sports School Ltd. He is a member of the Singapore Totalisator Board and Council on Governance of Institutions of Public Character. Prior to his current appointment with the Ministry of Community Development, Youth and Sports, Mr Niam held various positions in other Government Ministries and Statutory Boards. He had served as Chief Executive Officer of the Housing & Development Board, Chairman of the Singapore Broadcasting Authority, Permanent Secretary with the Ministry of Information, Communications and the Arts, Permanent Secretary with the Ministry of Law, Deputy Secretary with the Ministry of Health and Vice-President (News) with the Television Corporation of Singapore. Mr Niam graduated from National University of Singapore with a Bachelor of Social Science degree in Economics. He obtained a Masters in Public Administration from Harvard University in 1991. Tan Yam Pin, 64 Mr Tan was appointed a Director on 1 June 2003. A Chartered Accountant by profession, he retired as Managing Director of the Fraser and Neave Group in October 2002. Mr Tan served as Chief Executive Officer of Asia Pacific Breweries Limited, a subsidiary of Fraser and Neave Group and in 1993 was appointed the Managing Director of the Fraser and Neave Group. Mr Tan has been a Member of the Public Service Commission of Singapore since 1990. Mr Tan currently holds non-executive directorships in BHP Steel Limited (Australia), The East Asiatic Company Limited A/S (Denmark), Great Eastern Holdings Limited, Singapore Post Limited and PowerSeraya Limited (as non-executive Chairman). He is also a Board member of International Enterprise Singapore. 18

Mr Tan holds a Bachelor of Arts in Economics, University of Singapore; Master of Business Administration, University of British Columbia and is a member of the Canadian Institute of Chartered Accountants. Choo Chiau Beng, 57 Mr Choo is a Director of Keppel Land Limited; Chairman and Chief Executive Officer of Keppel Offshore & Marine Ltd; Senior Executive Director of Keppel Corporation Limited, Chairman of Singapore Petroleum Company Limited; Singapore Refining Company Pte Ltd and SMRT Corporation Limited. He sits on the Board of Directors of k1 Ventures Limited, EDB Investments Pte Ltd and Singapore Maritime Foundations and is a board member of the Maritime and Port Authority of Singapore. He is member of the Nanyang MBA Advisory Committee. He is also Chairman of Det Norske Veritas South East Asia Committee, Council Member of the American Bureau of Shipping and member of its Asia Regional Committee and Special Committee on Mobile Offshore Drilling Units. Mr Choo is Singapore's Non-Resident Ambassador to Brazil. He was conferred the Public Service Star Award (BBM) in August 2004. Mr Choo obtained a Bachelor of Science (First Class Honours) from the University of Newcastle upon Tyne in 1970 (under a Colombo Plan Scholarship to study Naval Architecture) and a Master of Science degree in Naval Architecture from the same University in 1971. He attended the Programme for Management Development in Harvard Business School in 1982 and is a member of Wharton Society of Fellows. Teo Soon Hoe, 56 Mr Teo is a Director of Keppel Land Limited, Senior Executive Director and Group Finance Director of Keppel Corporation Limited, Chairman of Keppel Telecommunications and Transportation Limited and Keppel Philippines Holding, Inc. and Director of MobileOne Limited, k1 Ventures Limited and Singapore Petroleum Company Limited. In addition, Mr Teo is a Director of several companies within Keppel Group including Keppel Offshore and Marine Ltd. Mr Teo commenced his career with the Keppel Group when he joined Keppel Shipyard Pte Ltd in 1975. He rose through the ranks and was seconded several times to various subsidiaries of the Keppel Group before assuming the position of Group Finance Director in 1985. Mr Teo holds a Bachelor of Business Administration degree from the University of Singapore. He is a member of the Wharton Society of Fellows, University of Pennsylvania. 19

SENIOR MANAGEMENT 20 From left: Choo Chin Teck, Director, Corporate Services and Chief Financial Officer Loh Chin Hua, Managing Director, Alpha Investment Partners Limited Tan Swee Yiow, Director, Singapore Kevin Wong Kingcheung, Managing Director Yeo Kah Tiang, General Manager, Group Finance and Administration Ang Wee Gee, Director, Regional Investments

From left: Lim Seng Bin, General Manager, Indonesia Quah Kim Boon, President, Keppel Services Staff Union Tong Kok Wing, General Manager, Retail Management Augustine Tan, General Manager, Marketing Vincent Tan, Vice President, Sedona Hotels International Pte Ltd Lim Tow Fok, General Manager, Property Management 21

SENIOR MANAGEMENT Choo Chin Teck, 60 Mr Choo is concurrently Director, Corporate Services, Keppel Land International Limited and Chief Financial Officer and Company Secretary, Keppel Land Limited. He has held various senior positions in Keppel Land Group for about 32 years, and is presently also a Director of a number of subsidiaries and associated companies of Keppel Land Limited. Mr Choo is also a Fellow of the Institute Certified Public Accountants of Singapore and also of CPA Australia. He has many years of accounting, audit, taxation, corporate treasury, human resource management, investor relations and corporate secretaryship experience. He holds a Master of Business Administration from Brunel University, UK. As a Bachelor of Accountancy graduate from the University of Singapore, he received the gold medal for being the best all-round student. Mr Choo is also an associate member of the Chartered Institute of Management Accountants, UK. Tan Swee Yiow, 45 Mr Tan Swee Yiow joined Keppel Land Group in 1990 and is currently the Director overseeing the Group's investment and development operations in Singapore. He has held various positions within the Group, including Head of Project Development and Corporate Development before assuming his present appointment. Prior to joining Keppel Land Limited, Mr Tan was with a banking group, advising property valuation, taxation and investment. Mr Tan holds a Bachelor of Science Degree (First Class Honours) in Estate Management from the National University of Singapore and a Master of Business Administration in Accountancy from the Nanyang Technological University. He is currently a member of the Building Construction Authority's Construction Excellence Awards Committee and a member of the Management Committee of the Real Estate Developers' Association of Singapore. Ang Wee Gee, 43 Mr Ang is Director, Regional Investments, of Keppel Land International Limited in charge of Keppel Land Group's overseas investments. Prior to joining the Keppel Land Group in 1991, Mr Ang had many years of diversified experience in the property, hotel and management consultancy business in the USA, Hong Kong and Singapore. 22

Mr Ang is a Director of Dragon Land Limited, Keppel Philippines Properties, Inc and Keppel Thai Properties Public Co Limited, property companies listed on the Singapore Exchange, Philippines Stock Exchange and The Stock Exchange of Thailand respectively. He is also a Director of Sedona Hotels International Pte Ltd, the hotel management arm of Keppel Land Limited, and a number of other Keppel Land Group's subsidiaries and associated companies. Mr Ang holds a Master of Business Administration from Imperial College, University of London. He received his Bachelor of Science summa cum laude from the University of Denver, USA. Loh Chin Hua, 44 Mr Loh is the Managing Director of Alpha Investment Partners Limited (AIpha), the real estate fund management arm of the Keppel Land Group. He joined AIpha in September 2002 and has 20 years of experience in real estate investing and fund management. Prior to joining AIpha, Mr Loh was the Managing Director of GRA (Singapore) Pte Ltd (GRA), the Asian real estate fund management arm of the Prudential Insurance Company of America. During his eight years at GRA, Mr Loh was responsible for overseeing all investment and asset management activities for the funds that GRA managed. Mr Loh built up GRA into one of the more established fund managers in Asia. Mr Loh started his career in real estate investment with the Government of Singapore Investment Corporation (GIC). During his ten years with GIC, Mr Loh held appointments in the San Francisco office and was head of the European real estate group in London before returning to Singapore to head the Asian real estate group. Mr Loh, a Colombo Plan scholar, graduated from Auckland University with a Bachelor of Property Administration and Pepperdine University's Presidential/Key Executive MBA Programme. Mr Loh is a Chartered Financial Analyst and is also a registered valuer with the New Zealand Institute of Valuers. 23

PROFILE OF DIRECTORS AND SENIOR MANAGEMENT (a) Directors Details of the Directors' present responsibilities and qualifications are set out on pages 16 to 19. Principal directorships held by the Directors in the past five years are as follows: Lim Chee Onn China-Singapore Suzhou Industrial Park Development Co Ltd Glory Central Holdings Ltd K1 ebiz Holdings Pte Ltd K Investment Holdings Ltd Kepital Holdings Ltd Keppel Asia Ltd Keppel Capital Holdings Ltd Keppel Harbour Redevelopment Ltd Keppel Power Systems Pte Ltd Keppel TatLee Bank Ltd Keppel Telecoms Pte Ltd Myanmar Investment Fund (S) Pte Ltd Natsteel Ltd Parksville Development Pte Ltd PT Nongsa Point Marina Singapore Airlines Limited Temasek Holdings (Pte) Ltd Kevin Wong Kingcheung Keppel TatLee Finance Ltd TLB Land Ltd Various subsidiaries and associated companies of Keppel Land Limited Thai Chee Ken Inchcape Motors Limited Keppel Hitachi Zosen Limited Natsteel Broadway Ltd Natsteel Electronics Limited Natsteel Limited Schroder International Merchant Bankers Ltd Tuan Sing Holdings Limited Lindeteves-Jacoberg Ltd 24 Lim Ho Kee Singapore Telecommunication Limited Union Bank of Switzerland k1 Ventures Limited Keppel TatLee Bank Ltd Jardine Cycle & Carriage Ltd Singapore Post Limited Vertex Venture Holdings Ltd

Tsui Kai Chong Keppel Capital Holdings Ltd Keppel TatLee Bank Ltd Lee Ai Ming HTL Holdings Ltd Niam Chiang Meng Bioethics Advisory Committee Board of Trustees for the Community Assistance Fund Board of Trustees for the Sporting Singapore Fund Council on Governance of Institutions of Public Charter Housing and Development Board Inland Revenue Authority of Singapore National Arts Council National Heritage Board Singapore Broadcasting Authority SMRT Corporation Ltd SMRT Trains Ltd SMRT Road Holdings Ltd Singapore Pools (Pte) Ltd Singapore Sports School Ltd Singapore Totalisator Board Temasek Management Services Ltd The Esplanade Co Ltd Tan Yam Pin Centrepoint Properties Limited Fraser & Neave Limited Singapore Post Limited Choo Chiau Beng Hydro Asia Pacific Pte Ltd Pacven Walden Management Singapore Pte Ltd Pacven Investment Ltd TatLee Bank Ltd WIIG Global Venture Pte Ltd Various subsidiaries and associated companies in the Keppel Group 25

PROFILE OF DIRECTORS AND SENIOR MANAGEMENT Teo Soon Hoe DataOne Corporation Pte Ltd Echo Broadband (Singapore) Pte Ltd Indotel Ltd KAC Holdings Ltd Keppel Capital Holdings Ltd Keppel Factors Pte Ltd Keppel Insurance Pte Ltd Keppel Integrated Engineering Limited Keppel Philippines Marine, Inc Keppel Realty Pte Ltd Keppel-SPH Investment Pte Ltd Keppel TatLee Bank Limited Keppel TatLee Finance Limited KF Ltd Radiance Communications Pte Ltd Southern Bank Bhd Southern Finance Company Bhd Steamers Fortune Shipping Pte Ltd Steamers Kimanis Shipping Pte Ltd Steamers Perak Shipping Pte Ltd Various subsidiaries and associated companies in the Keppel Group (b) Senior Management Details of the Senior Management's present responsibilities and qualifications are set out on pages 22 and 23. Principal directorships held by the senior management in the past five years are as follows: Choo Chin Teck Various subsidiaries and associated companies of Keppel Land Limited Tan Swee Yiow Various subsidiaries and associated companies of Keppel Land Limited Ang Wee Gee Various subsidiaries and associated companies of Keppel Land Limited Loh Chin Hua GRA (Singapore) Pte Ltd InterRoller Engineering Limited Mapletree Investments Pte Ltd The HarbourFront Pte Ltd 26

INTERESTED PERSON TRANSACTIONS Aggregate Value of all Aggregate Interested Person Value of all Transactions during Interested Person the Financial Year Transactions under Review conducted under (excluding Transactions Shareholders' less than $100,000 Mandate Pursuant conducted under to Rule 920 Shareholders' Mandate of the SGX Name of Interested Person Pursuant to Rule 920) Listing Manual 2004 2003 2004 2003 $'000 $'000 $'000 $'000 (a) Property transactions Keppel Corporation Limited Group : Rental - - 52 1,331 Project management fees - - 505 755 Property management fees - - 304 334 Marketing commission - - 1,737 260 (b) Other services and products Keppel Corporation Limited Group : Treasury - interest income - - 2,137 2,291 Treasury - interest expense - - (19,979) (17,390) Management fees paid - - (464) (3,627) Other services - - (2,066) (1,391) Temasek Group - - (5,285) (4,502) (c) Transactions entered into by the Group with the Directors of the Company Consideration for the sale of one unit each to two Directors of the Company and one unit to an immediate family member of a Director in an overseas residential development 1,226 - - - 27

GROUP FINANCIAL HIGHLIGHTS 2004 2003 % Increase/ $'000 $'000 (Decrease) FOR THE YEAR Sales - excluding associated companies 476,165 678,781 (29.8) Profit Operating 111,644 127,971 (12.8) Before tax Before exceptional items 140,508 135,262 3.9 After exceptional items 140,508 109,462 28.4 After tax and minority interests 133,280 100,551 32.5 Funds (used in)/ generated from operations (154,674) 316,107 nm Development expenditure 376,655 251,691 49.6 Capital expenditure 1,409 2,230 (36.8) Dividends paid 22,742 19,347 17.5 Value added from operations 205,000 176,200 16.3 AT YEAR-END Share capital 355,975 354,946 0.3 Shareholders' funds 1,606,806 1,486,904 8.1 Minority interests 225,627 206,302 9.4 Short and long-term borrowings 2,154,633 2,100,945 2.6 Total funds invested 3,987,066 3,794,151 5.1 Debt-equity ratio (%) Excluding minority interests 110 108 1.9 Including minority interests 96 95 1.1 PER SHARE Profit before tax but after exceptional items (cents) 19.1 15.8 20.9 Profit after tax but before exceptional items (cents) 18.8 17.8 5.6 Profit after tax and exceptional items (cents) 18.8 14.2 32.4 Dividends Less tax (cents) 4.0 3.1 29.0 Gross equivalent (cents) 5.0 4.0 25.0 Cover (no. of times) 4.7 4.5 4.4 Net tangible assets ($) 2.26 2.09 8.1 RETURN ON SHAREHOLDERS' EQUITY (%) Before tax but after exceptional items 8.8 7.5 17.3 After tax but before exceptional items 8.6 8.5 1.2 After tax and exceptional items 8.6 6.8 26.5 EMPLOYEES Number (average) 1,975 1,835 7.6 Wages and salaries ($'000) 43,580 38,012 14.6 Pre-tax profit per employee ($'000) 56.8 61.5 (7.6) nm : not meaningful 28

SIMPLIFIED BALANCE SHEET Total Assets Owned Total Liabilities Owed and Capital Invested 5000 4500 4000 1,756 (38%) 1,735 (38%) 1,607 (35%) 1,487 (32%) 3500 3000 186 (4%) 195 (4%) 226 (5%) 64 (1%) 206 (4%) 61 (1%) 2500 924 (20%) 897 (19%) 523 (11%) 809 (17%) What We Owned Fixed Assets Properties Held for Development Investments 2000 Properties Held for Sale Trade Debtors Cash and Bank Balances 1500 Others Assets 1,124 (25%) 1,172 (25%) 1,829 (41%) 1,853 (41%) What Shareholders Invested Shareholders' Funds 1000 Minority Interests 500 49 (1%) 393 (9%) 17 (0%) 501 (11%) What We Owed Trade Creditors Other Liabilities Long-term External Borrowings 0 143 (3%) 2004 $4,575 m (100%) 147 (3%) 2003 $4,664 m (100%) 326 (7%) 2004 $4,575 m (100%) 248 (5%) 2003 $4,664 m (100%) Short-term External Borrowings 29

FIVE-YEAR FINANCIAL PROFILE 2000 2001 2002 2003 2004 Income Statement ($'000) Sales 500,492 300,537 298,968 678,781 476,165 Operating profit 171,220 123,874 119,215 127,971 111,644 Profit/(loss) before taxation Before exceptional items 161,600 112,180 129,189 135,262 140,508 After exceptional items 161,600 (371,514) 61,303 109,462 140,508 Profit / (loss) after taxation and exceptional items 132,238 (385,675) 28,523 98,030 137,627 Profit/ (loss) attributable to shareholders 122,114 (368,357) 26,373 100,551 133,280 Balance Sheet ($'000) Fixed assets and investment properties 2,972,897 2,622,603 1,876,296 1,734,728 1,755,983 Investments 683,366 808,882 784,636 897,032 924,346 Properties held for development 156,143 168,061 169,798 195,147 186,437 Net current assets (Note 1) 1,132,924 933,833 1,229,242 1,300,771 1,148,767 Proceeds from sale of residential receivables - - (302,000) (302,000) - Deferred liabilities - (35,059) (36,443) (31,527) (28,467) Assets employed 4,945,330 4,498,320 3,721,529 3,794,151 3,987,066 Shareholders' funds 2,252,660 1,582,349 1,480,288 1,486,904 1,606,806 Minority interests 363,719 277,904 189,604 206,302 225,627 Short and long-term borrowings 2,328,951 2,638,067 2,051,637 2,100,945 2,154,633 Total funds invested 4,945,330 4,498,320 3,721,529 3,794,151 3,987,066 Per Share Earnings (cents) (Note 2) Before tax but after exceptional items 21.1 (54.3) 7.7 15.8 19.1 After tax but before exceptional items 17.3 12.2 13.3 17.8 18.8 After tax and exceptional items 17.3 (52.0) 3.7 14.2 18.8 Dividends Less tax (cents) 2.3 2.3 2.7 3.1 4.0 Gross equivalent (cents) 3.0 3.0 3.5 4.0 5.0 Cover (no. of times) 7.6 (23.0) 1.4 4.5 4.7 Net tangible assets $3.18 $2.23 $2.09 $2.09 $2.26 Financial Ratios Return on shareholders' equity (%) (Note 3) Before tax but after exceptional items 6.8 (20.1) 3.6 7.5 8.8 After tax but before exceptional items 5.5 4.5 6.4 8.5 8.6 After tax and exceptional items 5.5 (19.2) 1.7 6.8 8.6 Interest cover (before exceptional items) 1.9 1.3 2.4 2.9 3.9 Debt-equity ratio (%) (Note 4) 83 130 109 95 96 Employees Number 2,008 1,840 1,831 1,835 1,975 Wages and salaries ($'000) 28,009 33,702 33,498 38,012 43,580 Pre-tax profit per employee ($'000) (Note 5) 74 56 62 62 57 30 Notes: 1. In arriving at net current assets, short-term borrowings have been excluded. 2. Earnings per share are calculated by reference to the weighted average number of shares in issue during the year. 3. In calculating returns on shareholders' equity, the simple average basis has been used. 4. In the calculation of the debt-equity ratio, debt includes borrowings net of cash and equity includes minority interests in subsidiary companies. 5. In the calculation of pre-tax profit per employee, the profit of associated companies and exceptional items are excluded.

GROUP QUARTERLY RESULTS Total Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year $'000 % $'000 % $'000 % $'000 % $'000 Sales 2004 112,141 24 173,131 36 96,026 20 94,867 20 476,165 2003 142,889 21 155,206 23 189,539 28 191,147 28 678,781 Operating profit 2004 22,874 20 33,300 30 33,679 30 21,791 20 111,644 2003 27,728 22 22,777 18 32,548 25 44,918 35 127,971 Profit before taxation and exceptional items 2004 29,581 21 36,167 26 41,819 30 32,941 23 140,508 2003 29,276 22 23,481 17 36,396 27 46,109 34 135,262 Profit/(loss) before taxation but after exceptional items 2004 29,581 21 36,167 26 41,819 30 32,941 23 140,508 2003 29,276 27 23,481 21 36,396 33 20,309 19 109,462 Profit / (loss) attributable to shareholders 2004 29,554 22 30,590 23 32,578 24 40,558 31 133,280 2003 21,511 21 25,933 26 31,102 31 22,005 22 100,551 Quarterly turnover was highest in the second quarter due to a higher progressive revenue recognition for One Park Avenue in Shanghai and two Singapore projects, namely Butterworth 8 and Amaranda Gardens, which received their Temporary Occupancy Permits (TOPs) in that quarter. Operating profit peaked at about $33 million for two consecutive quarters, contributed by higher profits from One Park Avenue. Contributions also came from the write-back of provisions for Butterworth 8 and Amaranda Gardens in the second quarter while the sale of one Cluny Hill land plot and new overseas projects launched contributed to the third quarter's earnings. However, profit before taxation and exceptional items was higher in the third quarter than the second quarter at $41.8 million due to the sale of one Cluny Hill land plot, lower losses sustained by the Group s hotels and resorts, and the benefit of group tax relief. At the attributable profit level, 2004 results were better in all quarters compared to 2003 with the fourth quarter reaching a peak of $40.6 million.the better performance for 2004 came on the back of the sale of four Cluny Hill land plots, write-back of provisions for Butterworth 8 and Amaranda Gardens which received their TOPs in June 2004, and profits from One Park Avenue. New profit streams also started to come in from overseas projects launched in China and Thailand, namely 8 Park Avenue, The Seasons, The Waterfront and Villa Arcadia at Srinakarin. A further boost to profits came from group tax relief of $16.1 million. 31

Architect of value

We drive for value by building on strong fundamentals and from vantage points to increase shareholder returns

CORPORATE GOVERNANCE Corporate Governance Structure Shareholders Audit Committee Board of Directors Nominating Committee Remunerating Committee Enterprise Risk Management Committee Group Internal Audit Management Property Development & Investment Property Services Hotels, Serviced Apartments & Resorts Property Fund Management The Company believes in having high standards of corporate governance and is fully committed to ensure that self-regulatory controls exist to protect shareholders' interests and maximise long-term shareholder value. Good corporate governance helps companies to be more open and transparent, less bureaucratic, forward-looking with fresh ideas, and more decisive in the execution of strategies and initiatives, and is an effective safeguard against frauds and dubious financial engineering. These standards include a Board of Directors comprising high calibre members, Board Committees, and enterprise risk management and internal audit functions. They aim to not only meet but also exceed the principles of Singapore's Code of Corporate Governance. The Company has received many awards for achieving high standards in its corporate governance. Information on these awards is set out under Communication with Shareholders on page 46. The principles, policies and practices of corporate governance which the Company has adopted are explained in the paragraphs which follow. 34

1 Board Matters Principle 1 : Every company should be headed by an effective Board to lead and control the Company. 1.1 The Board's Conduct of its Affairs The Board is responsible for the Company's system of corporate governance, and is ultimately accountable for the Company's activities, strategies and financial performance. Each Board member has equal responsibility to oversee the business and affairs of the Company. The responsibilities of the Board include the following: Review and approval of corporate strategies, and the objectives and directions of the Group; Approval of the annual budget and review of the financial performance of the Group; Oversight of the processes for evaluating the adequacy of internal controls, risk management, financial reporting and compliance; Supervision and appropriate remuneration of executive management; and Provision of advice to Management on significant issues facing the Group. Matters which are delegated to the Board Committees are reported to and monitored by the Board. The Company has in place internal guidelines setting forth matters that require Board approval. Under the guidelines, new investments or increases in investments in businesses or fixed assets, and any divestments or sales exceeding $10 million by any Group company, as well as all commitments to term loans and lines of credit from banks and financial institutions exceeding $10 million by any Group company, require the approval of the Board. The Board meets regularly on a quarterly basis and as warranted. Telephonic and video-conferencing meetings of the Board are allowed under Article 102 of the Company's Articles of Association. The Directors' attendances at the meetings of the Board and Board Committees are as shown below: Board Committees Board Committees Board Audit Remuneration Nominating No. of meetings held 5 5 3 1 Directors No. of meetings attended Lim Chee Onn 5 Kevin Wong Kingcheung 5 Thai Chee Ken 4 4 1 Khor Poh Hwa 4 1 Lim Ho Kee 4 3 1 Tsui Kai Chong 4 5 3 Lee Ai Ming 5 5 Tan Yam Pin 4 3 Niam Chiang Meng 3 1 Choo Chiau Beng 5 Teo Soon Hoe 5 One of the above Board meetings was held at an overseas location and was attended by six out of the 11 Directors. Those who did not attend the meeting were adequately briefed on the agenda and matters raised at the meeting. 35

Directors are given appropriate orientation when they are first appointed to the Board. They are updated regularly on accounting and regulatory changes, and are also given further appropriate training from time to time. During the year, three Directors attended an in-house forum on enterprise risk management, conducted by a leading consultant based in Boston, USA. 1.2 Board Composition and Balance Principle 2 : There should be a strong and independent element on the Board, which is able to exercise objective judgment on corporate affairs independently, in particular, from Management. No individual or small group of individuals should be allowed to dominate the Board's decision-making. Presently, there are 11 Directors, 10 of whom are non-executive Directors. Seven out of the 11 Board members are independent Directors. The nature of the Directors' appointments on the Board, and details of their memberships in the Board Committees are set out below: Committee Membership Director Board Membership Audit Nominating Remuneration Lim Chee Onn Non-executive Chairman Non-ID Kevin Wong Kingcheung Managing Director Non-ID Thai Chee Ken ID Chairman Member Khor Poh Hwa ID Member Lim Ho Kee ID Chairman Member Tsui Kai Chong ID Member Member Lee Ai Ming ID Member Tan Yam Pin ID Chairman Niam Chiang Meng ID Member Choo Chiau Beng Non-ID Teo Soon Hoe Non-ID ID: Independent Director Non-ID: Non-independent Director The Board comprises four non-independent Directors. Three of these Directors, namely Mr Lim Chee Onn, Mr Choo Chiau Beng and Mr Teo Soon Hoe are considered nominees of Keppel Corporation Limited, a substantial shareholder of the Company. Mr Heng Chiang Meng will be appointed as an additional Director on 1 March 2005. The independence of each Director is reviewed annually by the Nominating Committee, based on the definition of independence as stated in the Code. No individual or small group of individuals dominates the Board's decision-making. The Board is of the view that its size is appropriate, taking into account the scope and nature of the operations of the Company. 36 As a Group, the Directors possess all the necessary competencies to lead and govern the Company effectively. Brief details of the Directors' responsibilities and qualifications are set out on pages 16 to 19.

1.3 Chairman and Managing Director Principle 3 : There should be a clear division of responsibilities at the top of the company - the working of the Board and the executive responsibility of the company's business - which will ensure a balance of power and authority, such that no one individual represents a considerable concentration of power. To ensure an appropriate balance of power, increased accountability and a greater capacity of the Board for independent decision-making, the Company has a clear division of responsibilities at the top of the Company, with the non-executive Chairman and Managing Director having separate roles. The Chairman is responsible for the management of the Board, while the Managing Director is responsible for the day-to-day operation and administration of the Company. The Chairman's responsibilities include the following: (a) (b) (c) (d) Scheduling of meetings to enable the Board to perform its duties responsibly while not interfering with the flow of the Company's operations; Preparing meeting agenda in consultation with the Managing Director and Company Secretary; Exercising control over the quality, quantity and timeliness of the flow of information between Management and the Board; and Assisting in ensuring compliance with the Code. 1.4 Board Membership Principle 4 : There should be a formal and transparent process for the appointment of new directors to the Board. As a principle of good corporate governance, all directors should be required to submit themselves for re-nomination and re-election at regular intervals. The Company has in place a Nominating Committee, whose main role is to make the process of Board appointments and re-appointments transparent, and to assess the effectiveness of the Board as a whole and the contribution of individual Directors to the effectiveness of the Board. The Nominating Committee comprises four independent Directors, namely Mr Lim Ho Kee (Chairman), Mr Thai Chee Ken, Mr Khor Poh Hwa and Mr Niam Chiang Meng. The terms of reference of the Nominating Committee are as follows: (a) (b) (c) (d) (e) (f) (g) (h) Recommend appointment or re-appointment of Directors (having regard to their performance and contribution); Perform annual review of skills required by the Board, and the size of the Board; Perform annual review of independence of each Director, and ensure that the Board comprises at least one-third independent Directors; Decide, where a Director has multiple board representation, whether the Director is able to carry on and has been adequately carrying out his or her duties as Director of the Company; Decide how the Board's performance may be evaluated, and propose objective performance criteria, to assess the effectiveness of the Board as a whole and the contribution of each Director; Perform annual assessment of the effectiveness of the Board as a whole and the contribution of individual Directors; Formulate succession plan for Board positions; and Report to the Board. Internal guidelines have been established to address the issue of multiple board representation. 37

The Directors submit themselves for re-nomination and re-election at regular intervals of about once every three years. One-third of the Directors retires at the Company's Annual General Meeting each year. The year of initial appointment and re-election of the Directors are set out below: Director Position Age Date of Initial Date of Last Appointment Re-election Lim Chee Onn Non-executive 60 28 October 1983 16 May 2002 Chairman (Director) 1 January 1997 (Chairman) Kevin Wong Managing Director 49 1 November 1993 28 April 2004 Kingcheung (Executive Director) 1 January 2000 (Managing Director) Thai Chee Ken Director 66 1 June 1997 28 April 2004 Khor Poh Hwa Director 55 1 April 1998 28 April 2004 Lim Ho Kee Director 59 8 November 2001 16 May 2002 Tsui Kai Chong Director 49 8 November 2001 16 May 2002 Lee Ai Ming Director 50 1 November 2002 20 May 2003 Tan Yam Pin Director 64 1 June 2003 28 April 2004 Niam Chiang Meng Director 46 1 June 2003 28 April 2004 Choo Chiau Beng Director 57 21 January 1985 16 May 2002 Teo Soon Hoe Director 55 16 May 1991 20 May 2003 1.5 Board Performance Principle 5 : There should be a formal assessment of the effectiveness of the Board as a whole and the contribution by each director to the effectiveness of the Board. The Nominating Committee has implemented a process for evaluating the effectiveness of the Board as a whole and the contribution of each Director to the effectiveness of the Board, and has also implemented objective performance criteria for evaluation which allow comparison with the Company's peers. In addition, the performance evaluation includes a comparison of the Company's share price performance vis-à-vis Singapore Straits Times Index and a benchmark index of industry peers. Briefly, this evaluation process is as follows: (a) (b) (c) (d) The evaluation of the Board will be done once a year by each member of the Nominating Committee and sent to an Independent Co-ordinator. The Independent Co-ordinator will consolidate the evaluation returns and present a report to the members of the Committee for discussion. Thereafter, the Independent Co-ordinator will present the final consolidated report to the Board together with the recommendations of the Committee. The evaluation of individual Directors will be done once a year by Directors on a peer evaluation basis. The completed peer evaluation returns will also be sent to the Independent Co-ordinator. The Independent Co-ordinator will consolidate the returns and present a report to the members of the Committee for discussion. Thereafter, the Independent Co-ordinator will discuss the final consolidated report with the Chairman of the Committee and the Chairman of the Board so that they may provide the Board with the necessary feedback with a view to improving Board performance and shareholder value. 38

1.6 Access to Information Principle 6 : In order to fulfill their responsibilities, Board members should be provided with complete, adequate and timely information prior to Board meetings and on an on-going basis. As a general rule, Board papers are sent to Directors about seven days before Board meetings so that Directors may better understand the matters before the meetings, and the Board meeting time may be conserved and discussion time focused on questions that the Directors may have on the Board papers. Managers who can provide additional insight into the matters to be discussed will be present at the relevant time during the Board meetings. The Directors are also provided with the names and contact details of the Company's senior managers and the Company Secretary to facilitate direct access to Management and the Company Secretary. Management recognises its obligation to supply the Board with complete and adequate information in a timely manner. Information provided includes appropriate background, analyses and explanatory notes. Management provides the Board members with management accounts on a monthly basis. Such reports enable the Directors to keep abreast of the Group's financial performance and position, key issues and prospects. The Company Secretary is responsible to ensure that Board procedures are followed and that applicable rules and regulations, including requirements of the Companies Act, are complied with, with the assistance of the relevant senior managers. The Company Secretary attends all Board meetings. The Board takes independent professional advice as and when necessary to enable it or the independent Directors to discharge its or their responsibilities effectively. Subject to the approval of the Chairman, Directors may seek and obtain independent professional advice to assist them in their duties. The cost of such advice is borne by the Company. 2 Remuneration Matters 2.1 Remuneration Committee and Procedures for Developing Remuneration Policies Principle 7 : There should be a formal and transparent procedure for fixing the remuneration packages of individual directors. No director should be involved in deciding his own remuneration. The Remuneration Committee performs the role of reviewing the appropriateness, transparency and accountability to shareholders on remuneration issues of the Directors and senior managers in the Company. The Committee consists of three independent members, namely Mr Tan Yam Pin (Chairman), Mr Lim Ho Kee and Assoc Prof Tsui Kai Chong. In consultation with the Chairman of the Company, the Remuneration Committee: (a) (b) (c) (d) (e) (f) (g) Recommends to the Board a framework of remuneration for the Board members and executive management; Determines specific remuneration packages for each executive Director and the Chief Executive Officer (if the Chief Executive Officer is not an executive Director); Decides compensation for the early termination of Directors; Considers whether Directors should be eligible for benefits under long-term incentive schemes (including weighing the use of share schemes against the other types of long-term incentive scheme); Reviews the terms, conditions and remuneration of the senior managers of the Company; Administers the Company's employee share option scheme (the "KLL Share Option Scheme") in accordance with the rules of the scheme; and Grants share options under the KLL Share Option Scheme as this Committee may deem fit. 39

The aim of the Committee is to motivate and retain executives, and ensure that the Company is able to attract the best talent in the market in order to maximise shareholder value. No member of the Committee or any other Director will be involved in deliberations in respect of any remuneration, compensation, option or any form of benefits to be granted to him or her. 2.2 Level and Mix of Remuneration Principle 8 : The level of remuneration should be appropriate to attract, retain and motivate the directors needed to run the company successfully but companies should avoid paying more for this purpose. A proportion of the remuneration, especially that of executive directors, should be linked to performance. The Remuneration Committee has established a remuneration policy for Board members and executive management. Under this policy, the total remuneration mix for executives comprises three key components, namely annual fixed cash, annual performance incentive and long-term incentive. The annual fixed cash component comprises the annual basic salary plus any other fixed allowances; the annual performance incentive is tied to the Company's and individual executive's performances; and the long-term incentive is granted based on individual executive's performance and contribution. The compensation structure is designed such that the percentage of an executive's annual total remuneration at risk increases as he or she moves up the corporate ladder. However, to remain competitive and relevant, the Company aims to benchmark its annual fixed salary at market median with the variables being strictly performance-driven. To enable the Committee to carry out its duties, the Committee has access to expert advice in the field of executive compensation inside and / or outside the Company, where necessary. The executive Directors participate in a long-term incentive scheme in the form of the KLL Share Option Scheme. Directors' fees are established annually for the Chairman and the other Directors. Additional fees are paid, where applicable, for participation in Board Committees. The level of fees paid take into account the size and complexity of the Company's operations, and the responsibilities and workload requirements of Directors. 40

2.3 Disclosure of Remuneration Principle 9 : Each company should provide clear disclosure of its remuneration policy, level and mix of remuneration, and the procedure for setting remuneration, in the company's annual report. The level and mix of remuneration of Directors and the Company's top five senior managers for the year ended 31 December 2004 are as follows: (a) Directors Remuneration Band and Base/ Variable or Director's Share Options Others# Name of Director Fixed Salary Performance Fees Granted* Related Income/Bonuses Above $2,250,000 to $2,500,000 Kevin Wong Kingcheung 35% 40% - 7% 18% Below $250,000 Lim Chee Onn - - 100% - - Thai Chee Ken - - 100% - - Khor Poh Hwa - - 100% - - Tsui Kai Chong - - 100% - - Lim Ho Kee - - 100% - - Lee Ai Ming - - 100% - - Tan Yam Pin - - 100% - - Niam Chiang Meng - - 100% - - Choo Chiau Beng - - 100% - - Teo Soon Ho - - 100% - - (b) Top Five Senior Managers Remuneration Band and Base/ Variable or Share Options Others# Name of Manager Fixed Salary Performance Granted* Related Income/Bonuses Above $500,000 to $750,000 Choo Chin Teck 44% 24% 15% 17% Ang Wee Gee 42% 34% 15% 9% Tan Swee Yiow 43% 25% 18% 14% Loh Chin Hua 67% 33% - - Above $250,000 to $500,000 Augustine Tan Wee Kiong 48% 30% 19% 3% *The value of the share options granted is based on the Black-Scholes model with a 5-year maturity. #This represents a one-off encashment of leave which the Company implemented on a Group-wide basis during the year. No employee of the Company and its subsidiaries was an immediate family member of any Director and whose remuneration exceeded $150,000 during the financial year ended 31 December 2004. "Immediate family member" means the spouse, child, adopted child, stepchild, brother, sister and parent. Details of the KLL Share Option Scheme can be found on pages 171 to 173. 41

3 Accountability and Audit 3.1 Accountability Principle 10 : The Board is accountable to the shareholders while the Management is accountable to the Board. To provide shareholders with more timely information, the Company commenced quarterly reporting since 2002. In presenting the Company's annual financial statements and quarterly announcements to shareholders, it is the aim of the Board to provide the shareholders with a balanced and understandable assessment of the Company's financial performance and position, and prospects. Management provides the Board with relevant, accurate and timely management accounts on the Company's financial performance and position, and prospects on a monthly basis. 3.2 Audit Committee Principle 11 : The Board should establish an Audit Committee with written terms of reference which clearly set out its authority and duties. The Audit Committee consists of three independent members, namely Mr Thai Chee Ken (Chairman), Mrs Lee Ai Ming and Assoc Prof Tsui Kai Chong. All members of the Committee are appropriately qualified to discharge their responsibilities, and two members have accounting and related financial management expertise and experience. The terms of reference of the Audit Committee are as follows: (a) Review audit plans and reports of the external auditors and internal auditors, and consider the effectiveness of actions taken by Management on their recommendations and observations; (b) Perform independent review of financial statements and results (including monthly results, forecasts and annual budget); (c) Examine and report on the effectiveness of financial, operating and compliance controls; (d) Review risk policies as well as the risk profile of the Company; (e) Review the independence and objectivity of the external auditors annually; (f) Review the nature and extent of non-audit services performed by the external auditors; (g) Meet with external auditors and internal auditors, without the presence of Management, at least annually; (h) Ensure that the internal audit function is adequately resourced and has appropriate standing within the Company, at least annually; (i) Review interested party transactions; and (j) Investigate any matter within the Committee's terms of reference, whenever it deems necessary. The Committee has full access to and co-operation of Management, and full discretion to invite any Director or executive staff to attend its meetings. The Committee held five meetings during the year. The members' attendances at these meetings are disclosed on page 35. The external and internal auditors, the Director (Corporate Services) and the Managing Director were invited to attend the meetings of the Committee. The Director (Corporate Services), who is also the Company Secretary, is the secretary to the Committee. The Company's internal auditors and external auditors report their audit findings and recommendations independently to the Audit Committee. Separate meetings were held by the Committee with the external auditors and internal auditors, without the presence of Management. 42

During the year, the Committee performed independent reviews of the financial statements of the Company before announcements of the results. The reviews included an assessment of the quality of key accounting principles applied and management judgements which have major impact on the financial statements. On a quarterly basis, Management reported to the Committee all interested person transactions (IPTs) in accordance with the Company's shareholders' mandate for IPTs. The IPTs were audited by the internal auditors and their findings reported to the Committee. The Committee reviewed the internal auditors' and external auditors' plans to ensure they are sufficient for the review of the significant internal controls of the Company. The Committee also reviewed the independence and objectivity of the external auditors, which included the nature and extent of their non-audit services to the Company. 3.3 Internal Controls Principle 12 : The Board should ensure that the Management maintains a sound system of internal controls to safeguard the shareholders' investments and the company's assets. The Board believes that the Company's system of internal controls that was in place throughout the financial year and up to the date of this report is sufficient in meeting the needs of the Company in its business environment. The Company's system of internal controls is designed to manage, rather than to eliminate, the risk of failure in achieving Company's goals and objectives. There are clear policies and procedures in ensuring adequacy of controls and effective management of risks. However, it should be recognised that such system is designed to provide reasonable assurance, but is not an absolute guarantee, against material misstatement or loss. The Company implemented the whistle-blower protection policy during the year. The purpose of this policy is to encourage the reporting in good faith of suspected reportable conduct by establishing clearly defined processes through which such reports may be made with the confidence that employees and other persons making such reports will be treated fairly and, to the extent possible, protected from reprisal. Reportable conduct would include: Dishonest acts, including but is not limited to theft or misuse of the Company's resources; Fraudulent acts; Corruption; Illegal acts; Other serious improper conduct; An unsafe work practice; or Any other conduct which may cause financial or non-financial loss to or damage to the Company's reputation. To assist the Board in the effective discharge of its responsibilities in ensuring that Management maintains a sound system of internal controls, the Company has put in place a shareholder value-based internal control system in areas such as financial, operational and compliance controls, and risk management. The principal aim of the internal control system is the management of business risks with a view to safeguarding shareholders' investments and the Company's assets. The system includes, inter-alia, enterprise risk management and internal auditing. The Board monitors the Company's risks through the Enterprise Risk Management (ERM) Committee, Audit Committee and Group Internal Audit. 43

3.4 ERM Committee The structure of the ERM Committee as shown below comprises key members of senior management from investment, operational, financial and technical areas, to oversee matters relating to the management of risks: Board of Directors Audit Committee Champion Enterprise Risk Management Committee Singapore Projects Regional Investments Property Fund Management Marketing Group Finance and Accounts Human Resources Investor Relations and Research Finance and Administration Property Management E-business and IT Retail Management Special Projects The ERM Committee assists the Board and Management to: (a) (b) (c) (d) Establish risk management objectives, policies and tolerances for exposure to risks that have been identified; Assess risks within the management framework, and develop cost effective strategies and process to manage the risks; Implement, monitor, report, and improve on the risk management process; and Ensure there is adequate information and communication for decision-making. Risks which cannot be effectively managed will be ranked accordingly to the impact and likelihood. The ERM Committee meets quarterly to ensure that the actions to mitigate or reduce the risks that have been identified have been implemented, and to report on the effectiveness of the actions or improvements to the risk mitigating actions. The Committee updates the Audit Committee quarterly on the mitigating actions taken to control the top 11 risks of the Company. 3.5 Internal Audit Principle 13 : The company should establish an internal audit function that is independent of the activities it audits. 44 The Company has its own in-house Internal Audit Department (Group Internal Audit) that is independent of the activities it audits. Group Internal Audit reports directly to the Chairman of the Audit Committee and administratively to the Director (Corporate Services).

The key role of Group Internal Audit is to conduct independent appraisal of the adequacy of internal controls to ensure the safeguarding of assets, maintenance of proper accounting records, reliability of financial information, compliance with applicable legislation and regulation, economical and efficient use of resources, and best practices. Group Internal Audit is expected to meet or exceed the Standards for the Professional Practice of Internal Auditing set by The Institute of Internal Auditors Inc, which has its headquarters in USA, and has incorporated these standards into its audit practices. Group Internal Audit has developed a risk-based audit methodology. It plans its internal audit assignments annually in consultation with, but independent of, Management and its plan is submitted to and approved by the Audit Committee. Based on the risk assessment conducted by Group Internal Audit, activities within the Company are reviewed at appropriate intervals and with greater emphasis on higher risk activities. Internal audit plans are also aligned with the Company's risk management programme. The aim is to ensure that an effective and efficient control environment is in place to manage those risks exclusive to a particular business unit in addition to those that may be relevant on an enterprise-wide basis. A comprehensive progress report is presented by Group Internal Audit to the Audit Committee at each scheduled meeting. All audit reports are distributed to the Audit Committee, the Chairman of the Board, the Managing Director, the Director (Corporate Services) and other relevant senior management. The Audit Committee ensures that the internal audit function has adequate resources and appropriate standing within the Company. On an ongoing basis, it assesses the effectiveness of the internal auditors by examining: (a) (b) (c) (d) (e) The internal audit charter; The scope of Group Internal Audit's work; The quality of its reports; Its relationship with the external auditors; and Its independence of the areas reviewed. 3.6 Review of Effectiveness of Internal Controls The Company's internal and external auditors conduct an annual review, in accordance with their audit plans, of the effectiveness of the Company's material internal controls, including financial, operational and compliance controls, and risk management. Any material non-compliance or failures in internal controls and recommendations for improvements are reported to the Audit Committee. The Committee also reviews the effectiveness of the actions taken by Management on the recommendations made by the internal and external auditors in this respect. The Committee is satisfied that the Company's internal controls are adequate, based on reports from the internal and external auditors. Nevertheless, as part of its continuing drive to embed internal controls into its business processes, the Company has, as mentioned earlier, the support from the ERM Committee to review the management of risks in its business units and corporate functions. This system of risk management is integrated throughout the Company into the business planning and monitoring processes. 45

4 Communication with Shareholders Principle 14 : Companies should engage in regular, effective and fair communication with shareholders. In line with the continuous disclosure obligations of the Company, pursuant to the Listing Rules of the Singapore Exchange Securities Trading Limited and Singapore s Companies Act, the Board's policy is that shareholders are informed of all major developments that impact on the Company. The Company had in operation during the year, a continuous disclosure process to ensure compliance with the Company's continuing disclosure and reporting obligations. The Company believes that it should engage in regular, effective and fair communication with shareholders. For its efforts at disclosure and investor relations, the Company was the runner-up in the latest Annual Report Award Competition. The Company was also ranked among the top 6% out of 570 companies surveyed in the Business Times Corporate Transparency Index in December 2004 which measures the quality of disclosure by companies during the results announcement period. Additional recognition for the Company's efforts in corporate transparency included the following: Top five among all Singapore listed companies in a study by Standard and Poor's and the National University of Singapore; Runner-up for The Most Transparent Company (Properties) and Merit Award for Corporate Governance at SIAS Investors' Choice Awards 2004; and First among real estate companies and sixth among Singapore companies in a survey by Institutional Shareholder Services and Business Week. In addition, the Company's top management takes an active role in investor relations, meeting local and foreign fund managers regularly as well as participating in roadshows and conferences overseas. The Company has a dedicated Investor Relations and Research Department which meets key institutional investors on a regular basis, as well as answers queries from shareholders. Pertinent information is communicated to shareholders on a timely basis. Where there is inadvertent disclosure made to a selected group, the Company will make the same disclosure publicly to all others as soon as practicable. Communication is made through: (a) (b) (c) (d) (e) (f) The Company's summary financial reports and annual reports; Notices of and explanatory memoranda for annual general meetings and extraordinary general meetings; Press releases on major developments of the Company; Disclosures to the Singapore Exchange Securities Trading Limited; Other announcements, as appropriate; and The Company's web site at http://www.keppelland.com.sg from which shareholders can access information on the Company. The website provides, inter alia, corporate announcements, press releases, annual reports, and profiles of the Group. The Company's ten-year financial profile is also provided. Where appropriate, queries over the website are also addressed. Principle 15 : Companies should encourage greater shareholder participation at annual general meetings, and allow shareholders the opportunity to communicate their views on various matters affecting the company. 46 The annual general meeting is the principal forum for dialogue with shareholders. At each annual general meeting, the Board encourages shareholders to participate in the question and answer session. The Chairman and, where

appropriate, the Managing Director respond to shareholders' questions. The Chairmen of the Board Committees and the external auditors are required to be present at the meeting to assist in addressing any relevant query from the shareholders. Each item of special business included in the notice of the meeting is accompanied by an explanation for the proposed resolution. Separate resolutions are proposed for substantially separate issues at the meeting, and the Chairman declares the number of proxy votes received for and against the resolutions. 5 Security Transactions The Company has issued a policy on dealings in the securities of the Company and its listed subsidiaries to its Directors and senior executives, setting out the implications of insider trading and guidance on such dealings. It has adopted the Best Practices Guide on Dealings in Securities issued by the Singapore Exchange Securities Trading Limited. The Company prohibits its Directors and employees from trading in the Company's securities for the period commencing two weeks before the announcement of quarterly results, and the period commencing one month before the announcement of year-end results. 6 Interested Person Transactions Disclosure of interested person transactions is set out on page 27 in the annual report. When a potential conflict of interest arises, the Director concerned takes no part in discussions nor exercises any influence over other members of the Board. 47

INVESTOR RELATIONS Keppel Land was lauded for corporate transparency at the SIAS Investors Choice Awards 48 Fostering Effective Communication with Shareholders and the Investment Community The Group continues to adopt a pro-active approach in its communication with shareholders and the investment community at large. In maintaining a high standard of accountability and corporate transparency, focus remains on enhancing effective communication and building good relations with shareholders, investors, stock analysts and fund managers. Keppel Land's management has regular meetings with investment professionals from Singapore and abroad. Briefings are held with analysts and fund managers from Singapore and overseas through one-on-one meetings, group meetings and conference calls. Analysts and the media are invited to attend the Group's briefings for its full-year and interim results. Luncheon meetings with local fund managers and conference calls with foreign fund managers are also normally held after results announcements. Keppel Land's Annual General Meeting is an event that gathers Board members, senior management and shareholders together for a lively and open dialogue. The last event was held at InterContinental Singapore, on 28 April 2004 which allowed for greater attendance by shareholders and public observers. Identification of Shareholders for Better Focus During the year, Keppel Land commissioned a share register analysis which helped to identify its institutional shareholders worldwide. More than 180 institutions in 19 countries were identified. Out of the Company's free float of some 47%, about two-thirds are held by institutional shareholders. With a substantial shareholding coming from the United States, Europe and Singapore, Keppel Land will focus on building upon the current investor base. This diversification improves liquidity and helps ensure the shares are fairly valued. In 2004, Keppel Land worked with international stock broking houses to participate in roadshows in

Europe after the release of its full-year and interim results. Management visited Stockholm, Copenhagen, London, Glasgow, Edinburgh, Dublin, Rotterdam and Amsterdam. These efforts to retain as well as cultivate new investors have paid off as Keppel Land is on the radar screen of many global institutional investors. In November 2004, Keppel Land participated in Morgan Stanley's Asia-Pacific Summit in Singapore where it held one-on-one meetings with existing shareholders and potential investors from the US, Europe, Hong Kong and Singapore. This helped the analysts write with greater authority on the Group's projects in China, and in turn helped to convince the international investor community of the successful execution of the Group's China strategy. During the year, Keppel Land's showflats at Caribbean at Keppel Bay in Singapore as well as 8 Park Avenue in Shanghai, The Seasons in Beijing and The Waterfront in Chengdu saw many visits, almost on a monthly basis, from fund managers and analysts. Many went away impressed by the quality of the developments, and gave this as feedback at meetings with Management. During the year, Management continued to see local and foreign fund managers and analysts, chalking up more than 50 meetings and conference calls. Post-results lunch meetings with fund managers and analysts have become common practice. Increasingly, Keppel Land is seeing fixed income fund managers, who either join their equity counterparts or request for separate meetings with Management. In November, the Company met up with a group of fixed income fund managers at a dedicated meeting arranged by Citigroup. Site Visits for Better Understanding of Markets Following the positive feedback of its investors' visit of One Park Avenue's show gallery in Shanghai in 2003, Keppel Land organised a visit to the show gallery of 8 Park Avenue, the second phase of its development in the Park Avenue precinct, for investors who attended the Deutsche Bank s China conference in Shanghai in February 2004. The Company has made improvements to its corporate transparency practices over the past few years. All presentation slides and materials used during communication with investors at roadshows, investors' meetings and results briefings are masneted simultaneously to the Singapore Exchange for public dissemination and also made available on the Group's corporate website. During the year, the Company s popular website www.keppelland.com.sg was revamped to enhance its functionality and ease of navigation. Enhancements to the website, which is extensively used by the investment community, included useful features such as a share price ticker tape, more frequently asked questions detailing the Company's strategic directions and financial highlights, as well as in-house quarterly publication Across Borders. Increasingly, enquiries from analysts and fund managers are coming through the website, from as far as North America and Europe, as interest in property as an asset class grows. To familiarise analysts with less common destinations, Keppel Land also led a group of Singapore-based analysts to Chengdu and Beijing in late September 2004. These visits not only helped to showcase the Group's quality residential projects, but more importantly provided a better understanding of the micro-markets in China, which helped to address the issues of property bubbles in China. Analysts witnessed the strong levelling-up of the economies and how this serves to drive home-ownership aspirations in each of the cities. City heads from Shanghai, Beijing and Chengdu as well as a university academic and a property consultant gave presentations on the market dynamics and the state of the property markets in each city. A familiarisation trip to China was organised for Singapore-based analysts 49

Analysts and the media meet Keppel Land s management at the Group s results briefings 50 Commitment to Enhancing Shareholder Value Keppel Land has always been committed to creating and enhancing shareholder value. The Company has proposed a gross final dividend of 10% or 5 cents per share less tax for the year ended 31 December 2004. The Group has been raising its dividend payout to shareholders for three consecutive years, from 3 cents per share in 2001 to 3.5 cents in 2002 and 4 cents in 2003. In terms of returns on equity (ROE), Keppel Land is among the top-performing property companies in Singapore, achieving a ROE of 8.6% for 2004. The Group's ROE has been on a consistent uptrend over the last few years from 4.5% in 2001. Keppel Land's share price chalked up an impressive performance in 2004, appreciating by 39% to end the year at $2.25. Total shareholder return for the year, which includes the dividend payout, was 42%. Total shareholder returns is computed by adding dividends declared for the financial year to the increase/decrease in the share price for the year and dividing the sum by the share price at the beginning of the year. The strong appreciation in Keppel Land's share price during the year reflects rising investor confidence and renewed interest in the Company as Asian economies rebound and strong fund flows from global institutions into the region continue. Keppel Land is one of the components of Standard & Poor s Global Picks 2005 comprising 30 stocks diversified across 10 economic sectors that may produce the biggest gains for the year. Only 10 stocks were selected from Asia, and Keppel Land was one out of two from Singapore. Interest from North America and European institutions, including pension, insurance, mutual and hedge funds, remains strong as these institutions increasingly look towards Asia for better investment opportunities. Given its strong fundamentals and good growth potential, Keppel Land is one core stock that is favoured by both institutional and retail investors. Keppel Land is well represented on many stock indices. It is a key component stock on various major indices in Singapore and overseas such as the Morgan Stanley Singapore Free Index, the Straits Times Index, the All-Singapore Equities Index, All-Singapore Equities Property Index, Singapore Equities Mainboard Index, the UOB Blue Chip Index and the FTSE EPRA/NAREIT Global Real Estate Indices. Recognition for Good Corporate Governance, Social Responsibility and Investor Relations Efforts Keppel Land received several prestigious awards and recognition in 2004 for good corporate governance, social responsibility and investor relations. US-based Institutional Shareholders Services and Business Week, which covered 1,785 non-us

companies from Canada to Japan in a corporate governance survey, ranked Keppel Land top among real estate companies and sixth among Singapore companies. In a joint study by Standard & Poor's and the National University of Singapore on corporate governance disclosure of companies that make up the Straits Times Index, Keppel Land, together with its parent company, was rated among the top five. The Company also recently earned the "Best in Class" status for leading environment and social performance from Storebrand, one of the largest financial institutions in Norway, and can therefore be part of Storebrand's Socially Responsible investment mandate. Keppel Land is among the only two Singapore companies to make it to the list. The Group was the first runner-up in the last Annual Report Award Competition amid keen contest from 449 locally-listed companies being considered. For its disclosure of FY2003 results, Keppel Land was placed among the top 6% of the Business Times Corporate Transparency Index (CTI), which covered 570 listed companies in Singapore. The latest CTI edition is the largest and most inclusive survey covering twice the number of companies in the previous year, and includes listed companies with financial years ending between 31 December 2003 and 30 September 2004. Keppel Land is a member of the Investor Relations Association (Asia) and the European Public Real Estate Association (EPRA), which enables it to keep abreast of best practices in corporate governance and investor relations. 2005 is poised to be another active year for investor relations. There will be more challenges and demands as Keppel Land moves into new cities, new frontiers and new market segments. The investor relations function will continue to play a dynamic role in reinforcing communication and cordial relationships with shareholders, the financial community and the investing public. % Return on Equity * 10 10 Dividend Per Share (cts) 8.5 8.6 8 8 6.4 6 5.5 6 4.5 5.0 4 4.0 4 3.5 4.0 3.0 3.0 3.0 3.0 2 2 0.6 0 1998 1999 2000 2001 2002 2003 2004 0 1998 1999 2000 2001 2002 2003 2004 * before exceptional items 51

PEOPLE IN REVIEW Experience and knowledge sharing strengthens synergy at the Annual Regional Conference Training and Development for Enhanced Performance In line with the Company's focus on strengthening human capital to achieve corporate goals, Keppel Land continued to implement key training and development activities for its employees across the region in 2004. A series of courses and workshops was carried out throughout the year to enhance performance by developing employees' functional and people management skills. To empower regional employees in operating effectively in overseas environments, training on leadership skills and cross-cultural negotiation skills were conducted. These key competencies are recognised as critical for the Company to succeed in the regional front. them in managing customers during the handover process and the ensuing period after the developments obtain the temporary occupation permits. Orientation programmes were also run for new employees to familiarise them with the Company's business strategies and operations. In addition, employees were trained in the principles and methodology of enterprise risk management before being deployed on regional postings to ensure that the culture of sound risk management practices is instilled across the regional operations. In Kunming's Spring City Golf and Lake Resort and Bintan's Ria Bintan Golf Club, Keppel Land's hospitality outfits, new employees are also given specifically designed in-house training on their functional duties. 52 Functional skills training continues to be a primary development focus. For finance managers and executives, training on treasury instruments, derivatives and money market operations were conducted to broaden staff's technical competency and equip them with the knowledge to enhance their job performance. Property management employees attended service quality skills training to aid An outward bound training course was held for staff at Keppel Land s office in Chengdu, China in February 2005. Aimed at promoting teamwork and opening up communication channels among staff, the 2-day event covered topics ranging from organisational behaviour to leadership skills.

Looking ahead, the Company is working on defining a set of Group-wide competencies to better tailor development programmes for its employees. These will also be incorporated into the recruitment process 156 HQ Manpower at End-2004 to fine tune the selection process. Management Development With Keppel Land's rapid expansion overseas, there is a continuing need to grow its pool of human capital to Executive support growth. Besides the development of existing Non-executive talents through management development 224 programmes, project assignments and job rotation, much effort has also been put forth to recruit and increase the talent pool. Among the approaches adopted was a partnership with Ministry of Trade and Industry to launch the Asian Business Fellowship programme. A joint advertisement was placed in The Straits Times to recruit young executives who will undergo a one and a half years' training stint in the Group's overseas projects, during 203 which their performance will be monitored to assess suitability for employment. HQ Manpower at End-2003 Performance Management and Value Creation As the Company moved into the second year of adopting the balanced scorecard system, employees and their supervisors have become increasingly attuned to the Executive Non-executive 155 setting of performance targets which align with the Company s objectives. The achievement of performance targets has been closely monitored as they were tied with individual performance rewards. The new performance management system was also cascaded down to the overseas companies and adopted by the employees of these local offices. 21% 11% Strengthening Regional Synergies and Network Annual Regional Conference as a Platform to Enhance Synergy With Keppel Land establishing its brand name as a leading developer of quality homes across Asia, 1% Regional Manpower Distribution synergised efforts and knowledge sharing have become critical for the fulfilment of this vision. For this objective, the Company gathered close to a hundred of its key executives from Singapore and across 12 countries in 9% Singapore the region, including China, Thailand, Vietnam, India 1.6% 0.1% China Indonesia Australia and Indonesia, for its Annual Regional Conference in April 2004. 16.2% 40% Thailand Vietnam Held at the InterContinental Singapore, the conference Philippines Myanmar was preceded by an intensive two-day workshop on situational leadership and presentation skills. 53

1% 54% 14% 4% Qualification of Management and Executive Staff 27% Post Graduate Degree Undergraduate Degree Grad Diploma There was a dialogue session with the Management at the conference, when staff were not only updated on the Company's policies and directions, but were able to share their views with top management. Country heads presented the new development projects embarked upon by their respective units. As such, the Annual Regional Conference served as a forum for strategic collaboration and communication between overseas postees and their local counterparts. Diploma/ GCE A Level Others Overseas staff were also briefed by Keppel Group s Corporate Communications General Manager on how to handle the media in different situations. In addition, with greater investor interest in the Company, a detailed presentation on effective communication with analysts and fund managers was given. Besides gaining a clear understanding of the 6% 2% 9% 27% key elements of investor relations such as how and what to say when investors show up unexpectedly at showflats, participants also learnt about the key concerns and issues raised by analysts and fund managers. 56% Qualification of Non-Executive Staff Degree Industrial Certificate Diploma/ GCE A Level Secondary Primary Connecting through K2Portal With Keppel Land's focus on regional expansion, there is a need to cultivate a knowledge-sharing culture among employees by ensuring that information is readily available to all offices and employees across the region. In this respect, a web-based Kepland Knowledge Portal (K2Portal) was launched in 2004, allowing staff access across different time zones through the web browser. Overseas offices and mobile users have secured access to the portal through a virtual private network. 54 12% 10% 1% 2% Training Expenditure Distribution 49% 9% 17% Certification (including ITE Courses) Diploma/Degree (under Study Assistance Scheme) External Courses Skills Training Leadership Courses Language Courses The K2Portal, with its comprehensive set of document and management capabilities, enables departments, project teams and individuals in the local and regional offices to centralise data, exchange ideas and access relevant information from an online central depository. By contributing and managing shared content, staff can obtain relevant information across departments, extract data and news from websites and collate information for management reporting. The portal also acts as a gateway to many computerised systems available in the Company. At the same time, the portal is critical in ensuring timely communication of new initiatives and policies to staff, and serves as a source of reference and updates of existing procedures and processes. For instance,

Promotion of well-being amongst staff through exercise corporate governance policies on whistle-blower protection, insider trading and safeguarding of information were disseminated to employees via the K2Portal. Reaching Out with IT In line with the Company's direction to tap the regional markets for growth, the Information Technology (IT) Unit provides services and support to the Company's overseas subsidiaries and joint venture companies. In 2004, the IT Unit customised and implemented the property sales and marketing system for two residential projects in China - The Seasons in Beijing and The Waterfront in Chengdu. The system automates sales bookings, monitors progress payments and generates management and sales reports. This system will be further enhanced for The Botanica township in Chengdu, which is developed by the joint venture company, CityOne Township Development. Subsidiaries such as Spring City Golf and Lake Resort in Kunming, Sedona Hotels International and Ria Bintan Golf Club have harnessed the potential of the internet in their corporate websites. Besides information about the resort and hotel facilities, interactive features such as online reservations and virtual tours of facilities have been incorporated. Fostering a Healthy Work Environment With intellectual capital being identified as the backbone of any organisation, the health and wellbeing of employees is increasingly linked to the Company's productivity, performance and success. Recognising the importance of a healthy lifestyle, Keppel Land's commitment to the workplace health promotion programme has led to it being conferred the Singapore H.E.A.L.T.H (Helping Employees Achieve Life-Time Health) Bronze Award 2004 by the Health Promotion Board. The annual Singapore H.E.A.L.T.H award accords national recognition to organisations with commendable workplace health promotion programmes that look into the wellness of their employees. Workplace health promotion at Keppel Land is championed by its Staff Welfare Committee, a 16-member team comprising employees from all levels of the Company. The team puts together numerous activities such as health-related talks by external experts ranging from healthy eating and natural therapy to stress management. These talks, conducted during lunch hour, were very wellreceived by employees. To equip staff with skills that will allow them to deal with medical emergencies, the Staff Welfare Committee also organised a first aid talk. Held over two consecutive days in November 2004, each 55

session covered topics ranging from demonstrations on bandaging techniques and rescue methods to cardio-pulmonary resuscitation. readings taken, as well as urine and cholesterol levels tested. Staff also received detailed test reports and tips on leading healthier lifestyles. Employee Wellness The Staff Welfare Committee also distributes fruits, muesli bars and fruit juices once a month to encourage staff to adopt healthy food options. In addition, fitness activities like badminton and yoga lessons are held regularly to promote healthy living. Yoga lessons, which are conducted after work, are particularly popular with the female employees. The Company also participated in the A.C.T.I.V.E. Day, a nationwide event organised by the Health Promotion Board. In Ria Bintan Golf Club, a Ria Bintan Cup volleyball competition was organised to promote fitness as well as camaraderie among the staff. Fitness passes to the Clark Hatch Fitness Centre at InterContinental Singapore are also made available to staff looking to work out at the gym, swimming pool or jacuzzis. Conveniently located within Bugis Junction where Keppel Land's headquarters is situated, staff have the flexibility of using the facilities before or after work as well as during lunch breaks on weekdays and weekends. Due to good response from employees, 2004 marks the sixth year running that Keppel Land has continued its corporate membership at the fitness centre. Achieving Work and Family Harmony In line with the government's directives in promoting parenthood and achieving a better balance between work and family, the Company implemented several pro-family initiatives such as longer maternity leave and childcare leave. All female employees are entitled to 12 weeks of maternity leave up to the fourth child, an increase of four weeks from the previous entitlement. The Company will also absorb the difference in salaries for female employees who earn more than $10,000 per month with funding from the government. In addition, employees with children below seven years old have two days of paid childcare leave per year. In line with these measures, the Company organised talks on parenting skills and child development awareness to help working parents create a conducive home environment for the development of their children. In May 2004, the Company also celebrated the National Family Week by participating in the "Eat with Your Family" Day. Employees were released earlier from their work commitments and given dining discounts to encourage them to dine with their families. In September 2004, a health check exercise administered by the National Kidney Foundation was carried out at Keppel Land's premises. Staff had their Body Mass Index computed, blood sugar and blood pressure 56

COMMUNITY RELATIONS Regular excursions are organised by the Keppel volunteers to help integrate the APSN students with society Corporate Social Responsibility Keppel Land strongly believes in responsible corporate citizenry and encourages volunteerism amongst its staff. To this end, staff actively participate in the Keppel Volunteers Programme, a Group-wide movement which involves employees in community work. Since its inception in October 2000, more than 60 Keppel Land staff have committed their services and contributed their specialised skills and professional expertise to the programme. Volunteerism is supported wholeheartedly by Management. Staff are allowed two days off from work each year to participate in the programme that has touched the lives of the beneficiaries under its adopted charity, the Association for Persons with Special Needs (APSN). APSN runs - Jervois, Katong, Chao Yang and Tanglin special schools and APSN Delta Senior School - and APSN Centre for Adults. With a team of energetic Keppel volunteers, many activities are planned and carried out in these schools on a regular basis. These include helping out in the schools' extra curricular activities such as arts and craft, which develop the students' psychomotor abilities and equip them with practical skills. Excursions to the movies, the Newater Centre, East Coast Safety Park, the Heritage Experience at Suntec City and the National Day Parade were also organised to increase the children's integration with society. In September 2004, the volunteers joined 500 students from the Tanglin Special School in a road run at Sentosa. Customer Focus As a developer of quality homes, Keppel Land recognises the importance of cultivating good relations with its homebuyers. To foster good relations with homebuyers, Keppel Land has established a Customer Focus Unit to ensure that homebuyers' needs are well looked after. In September 2004, the Customer Focus Unit organised training sessions for residents of Caribbean at Keppel Bay to educate them on the smart home features available in their units and within the condominium's premises. Conducted by system integrator Hewlett Packard, the hands-on training helped residents to enjoy the state-of-the-art network infrastructure, home automation systems and the web-based condominium portal. Connected Homes Every home unit at Caribbean at Keppel Bay is wired to a data network with high-speed connection to the Internet, and features a home network with structured cabling, a network audio-video intercom system and Internet controls for home automation systems. Network cameras installed in common areas such as the playground, swimming pools and the drop-off point, enable residents to monitor their children as well as activities within the condominium. Each unit is equipped with a webpad that functions as a mobile intercom for the development's audiovideo intercom system to screen visitors and control the private lifts. The webpad is equipped for wireless connectivity, allowing residents to surf the web or 57

Keppel Land was sponsor for Min Lee s Asian tour in Shanghai and Beijing Parco Bugis Junction contributed $30,000 towards outreach events during the Singapore Arts Festival 58 receive an incoming intercom calls wirelessly at the vicinity of the pools and clubhouse. With the condominium portal, residents have easy access to a host of condominium and home management services. They can reserve condominium facilities, place classified advertisements, submit feedback to the management office, and form online special interest groups. Every unit has its own calendar, message board and address book to facilitate communication among family members. Some of these features are also accessible using a WAP-enabled mobile phone. Tenant Relations Besides homebuyers, Keppel Land as a premier office landlord takes effort to build rapport with tenants in its various office buildings through regular golf tournaments. These annual events provide ideal networking and interacting opportunities for tenants and business associates. Hosting Beijing Media Keppel Land hosted a group of 10 journalists from Beijing on a press visit to Singapore, Thailand and Shanghai for a week in June 2004. The group comprised opinion leaders from newspapers, magazines, television and the Internet. During their visit in Singapore, the Beijing media was introduced to a number of Keppel Land's quality properties such as Bugis Junction, Pebble Bay, Caribbean at Keppel Bay as well as several office buildings. Keppel Land also facilitated a tour to the Singapore Press Holdings to meet up with their counterparts from the local Chinese papers. In Thailand, Keppel Land's listed subsidiary, Keppel Thai Properties presented its projects, Villa Arcadia at Srinakarin and Villa Arcadia at Watcharapol to the media, and provided a comprehensive overview of Bangkok's property market to help them understand the Group's strategy and plans in Thailand. Similarly in China, the journalists witnessed the quality and innovation Keppel Land brings to its China properties during their visit to 8 Park Avenue's show gallery in Shanghai. The design, layout and luxurious fittings and finishes of each show unit, as well as the range of condominium facilities available at 8 Park Avenue impressed upon the Beijing media the superb level of quality that Keppel Land is offering at its properties. Supporting the Arts Promoting Singapore Artistes Keppel Land sponsored the Shanghai and Beijing leg of Singapore's classical violinist Min Lee in her Asian tour with the Russian National Orchestra in December 2004. The Group's support for the arts, both in and beyond Singapore's shores, is in line with its commitment to create a quality and holistic living environment in every community where it stamps the Keppel hallmark. In Singapore, Parco Bugis Junction played an active role supporting the arts in 2004. This included hosting the China Shanxi Troupe which held a series of cultural performances at the shopping mall, the M1 Theatre Connect 2004 - Festival Fringe Event, an annual festival of theatre and arts, and Heritage Expressions, Singapore HeritageFest 2004's inaugural event.

During the Singapore Arts Festival in June 2004, Parco Bugis Junction sponsored $30,000 towards the El Carillón, one of the Arts Festival's outreach events by the Compagnia La Tal group from Spain. Other events include exhibitions such as the LASALLE- SIA College of the Arts' You Paint! Creative Faces; New Expressions, a mask-painting exhibition and workshop as well as Fun with Comics, a colourful exhibit of Japanese manga, American comics, computer graphics and water-colour pieces by local artists. Contributing to the Community Tsunami Relief Efforts After the tsunami disaster in December 2004, Keppel Land together with the rest of the Keppel Group rallied support in cash and kind to relief efforts. Over $74,000 was raised for the Singapore Red Cross Asia Tidal Wave Fund by Keppel Land staff together with contributions from other employees in the Keppel Group. Keppel Land's overseas offices including Sedona Suites Royal Park in Hanoi and Keppel Thai Properties donated boxes of clothes, linen, blankets and dried food to the affected areas. In addition, a charity golf tournament was held at Ria Bintan in March 2005 to raise funds. A donation booth set up at Parco Bugis Junction in conjunction with the Salvation Army also helped raise more than $64,500 over 10 days. This went towards helping the affected areas of Indonesia, India and Sri Lanka. Parco Bugis Junction also provided poster panels and volunteers to man the booth during the weekdays. Over 200 messages penned at the booth were compiled and sent to the various foreign missions and embassies. At the same time, InterContinental Singapore also participated actively in efforts to drive donations for tsunami survivors. These include the "From the Heart" initiative launched during the Valentine's Day week in February 2005, where donations by hotel guests to UNICEF's tsunami relief funds were matched with an equivalent contribution from the hotel. Funds were also raised through voluntary payroll deduction within InterContinental Hotels' global network of staff to assist hotel employees and their families who were affected by the tragedy pay medical expenses and rebuild their homes. Nicoll Highway Incident Tribute Booth In May 2004, Parco Bugis Junction set up a Nicoll Highway Incident Tribute Booth at its premises so that the public can pen their thoughts, encouragement or appreciation to the various rescue teams and individuals who had selflessly put their safety at risk to save others. Messages collected were then presented to the Singapore Civil Defence Force. Bull-run Fund-raising In October 2004, One Raffles Quay contributed $100,000 as title sponsor for the Big Boss Challenge segment in the inaugural Bull Run fund-raising event for needy children and youths organised by the Singapore Exchange and supported by Singapore Sports Council. Besides monetary contributions, One Raffles Quay's team of 75 runners comprising its shareholders, architects, business associates and its managers participated actively in the run. Children First Keppel Land was one of the main sponsors for the Charity Walk for Cancer Kids held in March 2005 at Sentosa. Organised by the Women's and Children's Healthcare Foundation, funds were raised for the Children's Cancer Fund to help needy children with cancer cover their medical and educational expenses. Besides contributing funds, Keppel Land also provided spaces for registration booths at its buildings such as Bugis Junction, Ocean Towers and Ocean Building to generate public awareness and seek participation in the event. Keppel Land's staff also donated generously and volunteered their services at the event. For more than a decade, Keppel Land has faithfully set up Christmas trees every year bearing the wishes of children from various homes or special schools in the lobbies of its office towers. This was no exception in 2004, when the wishes of more than 600 children from the Jervois, Chao Yang and Katong special schools donned the trees at Ocean Building, Ocean Towers, Keppel Bay Tower, Prudential Tower and Keppel Towers, all of which were readily fulfilled by the tenants. Through fund-raising activities in all its food and beverage outlets, InterContinental Singapore raised a total of about $23,000 for its adopted charity, the Children's Aid Society during the year. The hotel also celebrated Children's Day and Christmas with the children with food and entertainment. Financial Support to Charities Keppel Land continued to provide financial support to charitable organisations, including the National Kidney Foundation, the Singapore Children's Society, the Handicaps Welfare Association and The Straits Times 59

Sedona Suites Ho Chi Minh City and Sedona Hotel Mandalay regularly organise activities for local orphanages in their respective cities School Pocket Money Fund. Sponsorships and donations were also made to the Securities Investors Association (Singapore), the Singapore Institute of Surveyors and Valuers, the Real Estate Developers Association of Singapore, the National University of Singapore Cancer Endowment Fund as well as fund-raising events organised by the China Exploration and Research Society, the Telok Blangah Community Club and the Tampines Rovers Football Club. Blind Children by organising a Charity Spring Fair. Held on 24 April 2004 at the children's playground at Sedona Suites, funds were raised from game stalls and handicraft sales. Sedona Suites Hanoi also regularly collects toys, clothing, food items and educational materials from staff and residents for donation to the School for People with Disabilities. Parco Bugis Junction lent its hand to charity during the New Year with Pockets of Wellness, where proceeds from the sale of unique perfumed tassels were donated towards the treatment of needy patients under the Kidney Dialysis Foundation. Similarly, Sedona Suites Ho Chi Minh City (HCMC) has been a patron of Dong Nai Orphanage for the past three years. At the annual Christmas luncheon held for about 180 children, staff and residents at Sedona Suites presented gifts and cash donations to the orphanage. 60 Overseas In line with its philosophy of giving back to the community in which it operates in, Keppel Land actively supported community projects overseas. In December 2004, it contributed towards the sponsorship of Raffles Junior College's community service project in Vietnam. During the 18-day trip, the college's students and teachers refurbished the Nguyen Phan Vinh Primary School in Dien Nam Village in Quang Nam province in Central Vietnam and converted it into a library and cultural centre to provide a focal point for community gathering. A mobile library serving five villages in the Quang Nam province was set up and lessons on basic Englishas well as hygiene were conducted for the locals. Such charitable spirit has filtered to Keppel Land's overseas offices. In Vietnam, residents at Sedona Suites Hanoi got together to raise funds for the School for Staff at Keppel Land's HCMC office also helped spread the Christmas cheer at Saigon Centre to 45 children from the May 15 School, with gifts of their choice. The May 15 School, an independent school which receives limited government funding for its operations, not only provides education and vocational training to underprivileged children from impoverished families but also gives shelter to about 30 orphans. During the outbreak of widespread floods on the Yangtze River in Sichuan province and the Chongqing municipality in China in September 2004, Keppel Land made a donation to the Sichuan government in aid of flood victims. In Myanmar, a charity lunch is organised every month for children from the School for the Blind and the local orphanages under the Ministry of Social Welfare in Yangon. Staff at Sedona Hotel Mandalay also donate old clothes and uniforms to the orphanages on a regular basis.

Contributing to the Community* Month Event In Support of Singapore Year-round Keppel Volunteers Programme The Association of Persons with Special Needs January Pockets of Wellness at National Kidney Foundation Parco Bugis Junction February Charity Gala for The Straits Times Straits Times School Pocket Money Fund School Pocket Money Fund May Nicoll Highway Incident Tribute Rescue workers and families of Booth at Parco Bugis Junction victims of the Nicoll Highway incident June El Carillón Singapore Arts Festival July Telok Blangah - Visa Charity Golf 2004 Telok Blangah Community Club Building Fund September Tampines Rovers Football Club Tampines Rovers Football Club Fund Raising Golf Tournament 2004 October Bull Run Fund Raising 2004 Needy children and youths InterContinental Singapore Children's Aid Society celebrates Children's Day November China Exploration and China Exploration and Research Society Research Society Fund-raising December Tsunami Disaster Relief Efforts Tidal Waves Asia Fund via and Fund-raising the Singapore Red Cross Christmas Wishing Trees at Keppel Land's Chao Yang, Jervois and office buildings Katong Special Schools InterContinental Singapore's Children's Aid Society Christmas celebrations December 2004/ Parco Bugis Junction's The Salvation Army's January 2005 Tsunami Disaster Fund Collection Tsunami Relief Efforts 'From the Heart' Survivors and families of at InterContinental Singapore victims of Tsunami disaster March 2005 Charity Walk for Cancer Kids Women s and Children s Healthcare Foundation Overseas Monthly Melia Purosani Hotel supports Various orphanages in Yogyakarta including orphanages in Yogyakarta the Wiloso Projo, Binawasi, Budi Bakti, House of Cacat Ganda, House of Sayap Ibu, Nurul Yasmin Orphanage for Girls, Santa Maria, Sinar Melati Orphanage for Boys, and Tunas Harapan orphanages Monthly Monthly donation to Baitulmaal Muammalat (BMM) Villages in Nanggulan, Yogyakarta through for development of villages in Nanggulan, Yogyakarta BMM Yogyakarta Monthly Donation for poor children Yogyakarta Lentera llmu School Monthly Lunch with Sedona Hotel Yangon School for the Blind and local orphanages under the Ministry of Social Welfare Quarterly Donation of old clothes by Sedona Hotel Mandalay Various orphanages in Mandalay Quarterly Caring and sharing at Sedona Suites Hanoi School for People with Disabilities April Charity Spring Fair at Sedona Suites Hanoi School for Blind Children September Donation in aid of flood victims Sichuan government, in aid of those affected by the floods in Sichuan province December Sponsorship of Raffles Junior College's Quang Nam province in Central Vietnam community service project in Vietnam Sedona Suites Hanoi's Tsunami Relief Efforts Survivors and families of victims of Tsunami disaster Christmas at Saigon Centre May 15 School for Orphans and Under-privileged Christmas at Sedona Suites, Ho Chi Minh City Dong Nai Orphanage March 2005 Ria Bintan Charity Golf Tournament Tsunami Relief Efforts via the Singapore International Foundation * Excludes financial contributions / sponsorships to Singapore Children's Society, Handicaps Welfare Association, Securities Investors Association (Singapore), Singapore Institute of Surveyors and Valuers, Real Estate Developers Association of Singapore and National University of Singapore Cancer Endowment Fund. 61

ENVIRONMENTAL RESPONSIBILITY One Raffles Quay, a 1.3 milllion sf office development, is poised to be the landmark in Singapore's New Downtown. Apart from state-of-the-art elements, it also features generous use of landscaping and lush open surrounds. In the heart of the development, a landscaped pedestrian plaza will serve as a sheltered public space. Energy efficiency features at One Raffles Quay include double-glazed glass that helps reduce sunlight from entering the building, energy-saving light bulbs and an intelligent passenger lift system that pools passengers by similar floor destinations to reduce waiting and travelling time. Unique water features and lush greenery add to the visual and aural experience of Caribbean at Keppel Bay Keppel Land is committed to creating a holistic, quality and creatively stimulating living environment in every community where it stamps the Keppel hallmark. Be they homes or offices, Keppel Land's developments are thoughtfully planned and designed, integrating form and function for an optimal environment. Comprehensive water and energy conservation programmes have also been introduced at Keppel Land s buildings. Recent participation by Ocean Building and Ocean Towers in the national water conservation programme resulted in an estimated 5% reduction in monthly water consumption. This was achieved through the reduced flow rate and flushing volume from the inclusion of thimbles from the Public Utilities Board. Prudential Tower s landscape park provides a refreshing green haven that can be enjoyed amidst quaint shelters in bustling Central Business District. It combines hard landscaping featuring polished granite planter boxes and flamed finished granite for all the walkways, and soft landscaping of wide canopy trees and palm trees. Prudential Tower won the prestigious FIABCI Prix d Excellence, the real estate Oscars under the office/industrial category. 62 Quality Work Spaces Keppel Land's stable of prime office buildings continues to set standards in the Central Business District. The Group's commercial developments are distinguished by efficient intelligent features geared towards housing the world's leading corporations while incorporating environmentally-friendly initiatives which include the creation of green havens amidst the concrete cityscape. Keppel Bay Tower, an office development located in Singapore's harbourfront precinct, is flanked on all sides by water, almost literally. Apart from the sea frontage, its surrounds are dotted with water features such as reflection pools and spouting fountains which add to aesthetics and provide welcomed relief. In Keppel Land's own offices, recycling, reusing and reducing wastage have become second nature to staff. Efforts to cut down unnecessary waste include the disposal of scrap paper, old newspapers and magazines at designated recycling bins.

Lush Residential Sanctuaries Redefining true waterfront living in Singapore is Caribbean at Keppel Bay where every detail is looked into to augment its homes by the sea. The landscape for Caribbean at Keppel Bay was designed to maximise the views of the sea from every possible angle. Trees were kept away from windows and main vistas to allow panoramic views of Sentosa Island. Special consideration was paid to the selection of the species of the trees, for their shape, size, flower, colour, character and tolerance to sea breezes. Altogether, a total of more than 65 species of shrubs and groundcovers feature in Caribbean at Keppel Bay to create a myriad of textures in the landscape. Cabbage palms, indigenous to the Caribbean islands, were planted along the promenade and lined up at the main entrance for a grand statement as one drives up to the clubhouse. Angsana trees were planted along the Telok Blangah Road frontage as they are fast growing, to screen off the highway from the development. To add vibrance and variety to the development, various flowering trees were planted to create different coloured zones in red, orange, purple and yellow. In the courtyards, the planting is lush and dense to create secluded oases of serenity with water features, completing the visual and aural experience. Another prestigious development, Park Infinia at Wee Nam, will be one of the largest condominium developments in the Newton area. Designed to be an urban sanctuary, the development will offer residents the sense of space and tranquility with its large open lawn, verdant surrounds and water features such as an eco-pond, a floating pavilion, a beach pool as well as gushing waterfalls and flowing streams. In the region, Keppel Land's holistic approach redefines quality homes and introduces new lifestyles. One Park Avenue, the first of the three residential projects forming the Park Avenue residential enclave spread over a sprawling 9.6-ha of prime land, took the Gold Award in the Environment Category of Top 10 Properties in Shanghai. Now hot on the heels of the sell-out success of One Park Avenue, 8 Park Avenue has become the next most sought-after residential address in the Jingan district in Shanghai. The property combines modern architecture, wide-ranging facilities, fine finishes and fittings nestled in a verdant sanctuary. These masterpiece residential developments bring together world-renowned architects, the Palmer and Turner Group and landscaping experts, Belt Collins International. They showcase luxuriant grounds adorned with flora, meandering streams, gushing fountains and waterfalls. Being environmentally-focused, 8 Park Avenue also contains numerous features for energy and water conservation such as solar-power landscape lamps, a rain-water recycling system and a heat recovery pump for its swimming pool. Keppel Land's other China properties, The Seasons in Beijing and The Waterfront in Chengdu, are also fast becoming household names in the property scene in China. The Seasons was presented the Best Landscaping Award, by local newspaper Xin Jing Bao. The inspiration behind the landscaping in this Beijing property is to capture the distinctive spirit of each season. The children's pool in the central garden is transformed into a rock garden in winter while the outdoor rollerblading rink changes into an ice-skating rink in winter. The Waterfront was conferred the Most Habitable Development in Chengdu by the Funan River Revitalisation Committee and local newspaper Chengdu Shang Bao and the Best Landscaping Concept and Design by the International Federation of Parks and Recreation in October 2004. Both award competitions were held under the auspices of the United Nations. 63

The Waterfront was conferred the Best Landscaping Concept and Design by the International Federation of Parks and Recreation Keppel Land s holistic approach is brought to bear in Park Infinia at Wee Nam, one of Newton s largest urban sanctuaries In Ho Chi Minh City, Villa Riviera, with its scenic riverfront location, is designed with a host of recreational facilities set in a tropical resort-themed garden. Also in Ho Chi Minh City, Saigon Sports City is the first of its kind in Vietnam to introduce a healthy lifestyle development concept. It will be a fully integrated residential, commercial and recreational/sporting hub set in lush surrounds, offering comprehensive and exciting facilities and activities for quality living. Closer home, Taman Sutera, Keppel Land's 500-ha residential township joint venture near the city centre of Johor Baru, was Runner-up in the Landscape Competition 2004 organised by the Landscape Department of Johor State. In line with providing a conducive, safe and friendly environment, its comprehensive amenities include a well-maintained park complete with a maze garden, shady footpaths and jogging tracks and a fitness corner. Eco-friendly Hospitality Everywhere in the region, Keppel Land's attention to the environment and eco-friendly practices contribute to the highly reputed quality in all its property developments. Spring City Golf and Lake Resort, Keppel Land's integrated resort development in Kunming, China, was singled out by Far Eastern Economic Review as a positive model for environmental preservation. Spring City's eco-friendly efforts include the use of biodegradable fertilisers, wastewater treatment and recycling, as well as re-greening of the surroundings. These measures have contributed to maintaining adjacent farmlands as well as reducing excessive chemical pollution to Lake Yang Zong Hai, the main reservoir of potable water for neighbouring region. Spring City has also contributed to the economy of nearby provinces by generating employment and promoting tourism. In Indonesia, Melia Purosani Hotel is the first hotel outside of Bali that has been awarded the prestigious GREEN GLOBE 21 Certificate, which recognises commitment to operating at the world's highest environmental standards. The hotel spends considerable time benchmarking its energy and water consumption, waste production and disposal as well as implementing an integrated environmental and social sustainability policy. Similar careful planning for the environment was applied at another integrated resort development, Ria Bintan 64

Golf Club in Bintan, Indonesia. Apart from expanding the turf nursery size and increasing the number of shrubs, flowering plants and trees, some lakes have been utilised to capture excess run-off water and to maintain the water level of other lakes for water conservation. Thoughtful recycling efforts are also adopted by Sedona Hotels in Yangon and Mandalay, where old towels are recycled as cleaning cloth for housekeeping and kitchen use, while old table cloths are given a new lease of life as placemats in restaurants and at functions. Only environmental-friendly cleaning products are used in Sedona Hotels. The general purpose cleaner used by Sedona Suites Hanoi, for example, also effectively purifies the drainage system and sewer treatment plant. On home shores, InterContinental Singapore in Bugis Junction continues to champion eco-friendly practices with water and energy conservation programmes. The hotel has embarked on installing heat pumps to produce hot water for guest rooms and other usage. Heat pump technology is the reverse of refrigeration. The technology taps heat from the environment and produces cold air which can be used to cool internal space. With the ceasing of the use of the boilers, there will be no more pollutant discharge into the environment. Coupled with the installation of the heat pumps, the general environment in the basement level will also be cooler. The cold air, which is a by-product of the heat pumps, will be used to lower the temperature of the current laundry space. This will result in further savings on energy. The quantum is four refrigeration tons per unit of heat pump. Other eco-efforts include a linen programme that reduces daily changes, use of biodegradable cleaning agents and an active recycling programme involving the re-use of paper, plastic and glass. Timer switches are installed so that lights are turned off when not needed and energy-saving fluorescent bulbs are used, where possible. Through careful planning, the environment is integrated into Ria Bintan s landscape 65

Leverage for edge

We integrate strengths of our partners, strong regional network and knowledge as well as brand equity to capitalise on opportunities

Special Feature Asia s Dynamic Economies C hina and India are two economic engines that will drive Asia's growth over the next decade. Strong gross domestic product (GDP) expansion, the active pursuit of economic reforms to attract foreign direct investments (FDIs) and the sheer size of their domestic markets, buying power and consumer demand have attracted significant attention from global investors and multinational corporations. Vietnam, although it is smaller than China and India in terms of economic prowess and market size, is another promising country for investment. China's economy has been growing rapidly over the last few years, with GDP growth hitting 9.5% in 2004. FDIs increased by 13.3% to reach US$60.6 billion during the year while the country's foreign exchange reserves reached US$609.9 billion at end-2004, some 51% more than the previous year. from 5.3% in July to 2.4% in December 2004 and to a further 1.9% in January 2005. While the current stabilising measures will likely tame economic growth in the short-term, the longer term outlook for China remains bright, especially for sectors such as property, information technology (IT), financial and healthcare services. Similarly, the Indian economy has rebounded strongly over the last decade, after emerging from the crisis period in early 1990s when its foreign reserves were almost depleted. GDP growth was a strong 6.5% for 2004, driven by continued industrial expansion and infrastructure spending which greatly benefited the construction sector. Its foreign exchange reserves have also risen to about US$130 billion as at end December 2004. However, China's phenomenal growth has raised fears of an economic hard landing. Stabilising policies were introduced in April 2004 to slow the pace of investment and production. These measures have been fairly effective in easing economic pressure. Growth in fixed asset investment has slowed down considerably from 30-50% in early 2004 to average 25.8% for the whole year. Inflation has also declined India's strong economic growth is expected to remain intact over the next few years. Sectors that are potential growth drivers include IT exports and business process outsourcing. India is ranked among the top four Asian investment destinations and the top 10 developing country recipients of FDIs in the 2004 World Investment Report of the UN Conference on Trade and Development (UNCTAD). Its share of global software application development, one of the largest businesses for IT companies, is 16.4%. With the global shift in FDI flows moving from manufacturing to the services sector, India is set to benefit from this trend. Vietnam, with half of its population of 80 million under 35 years of age and a literacy rate of 93%, is poised for an economic take-off. Already one of the fastest growing countries in Southeast Asia with GDP growth of 7.7% in 2004, Vietnam holds a wealth of business potential and opportunities. The country's investment climate is enhanced by the government's commitment to economic reforms, which creates a business environment conducive

for foreign investors. According to the Ministry of Planning and Investment, total FDIs increased by 35% to reach US$4.2 billion in 2004. Over 5,000 foreign invested companies are operating in Vietnam currently. Besides targeting to become a member of the World Trade Organisation and benefit from full realisation of Asean Free Trade Area in 2006, Vietnam plans to maintain an annual GDP growth of 7.5%- 8% and to create eight million jobs over the next five years. Per Capita GDP (US$) GDP Growth (%) 2000 10 1800 9 1600 8 1400 7 1200 6 1000 5 800 4 600 3 400 2 200 1 0 1998 1999 2000 2001 2002 2003 2004E 2005F 2006F 2007F 0 China's Per Capita GDP India's Per Capita GDP Vietnam's Per Capita GDP China's GDP Growth India's GDP Growth Vietnam's GDP Growth Market Focus China Emergence of the Private Housing Sector Since 1998, the Chinese government's efforts to promote home ownership with reforms such as abolition of welfare housing, easy access to mortgages, tax incentives and subsidies have caused a structural shift in local housing demand from state-owned homes to private homes. The merger of the local and foreign markets in gateway cities like Shanghai and Beijing also enlarged the pool of buyers and injected greater liquidity into the market. As affluence grew, buying activities spilled over from the coastal and major cities into the inner municipalities. With increasing affluence, expanding middle-class population, rapid urbanisation and growth of the expatriate community, the demand for quality housing soared over the last few years. Between 1999 and 2003, residential sales in terms of floor space sold rose by an annual average of 23%, while prices rose by an average 4.3% per annum. In 2004, China's housing market continued to exhibit strong growth. Total investment in residential 69

Special Feature India is ranked among the top four Asian investment destinations property development reached RMB883.7 billion (US$106.7 billion), an increase of 28.7% year-onyear. Average selling price increased by 15.2% during the year. Stabilising Measures With property being an important economic driver, the Chinese government has focused on the supply-side and credit controls instead of dampening demand to cool the overheating and promote long-term sustainable growth in the housing market. Supply-side controls include making land sales transparent through land auctions or public listing to eliminate private land transfers. Pre-sale permits for high-rise developments were given only when the superstructure construction is two-thirds completed. Developers who have obtained land-use rights through private negotiations with the government were required to pay the land transfer fee by 31 August 2004. A land registry was also set up to track transactions. Credit controls were imposed which require developers to put up 35% of capital for projects. Furthermore, four certificates - land-use, planning approval, construction approval and commencement of construction approval - were required before developers could receive project loans. At the same time, the mortgage quantum was capped at 80% of the value of the property and monthly repayment at 50% of the borrower's income. Banks also upped interest rates, with higher rates for second and third properties. In Shanghai, a 5.5% capital gains tax was introduced in March 2005 for re-sale of properties within the first year of purchase. More stringent checks were also imposed on buyers' financial standing. Since April 2004, the government has prohibited sub-sales of new units in Shanghai before completion of the project and issuance of the land title. Developers and homebuyers were also required to register home sales and purchase contracts through an online centralised property exchange system in Shanghai. These changes will improve market transparency and ensure healthy and sustainable growth of the property market. The playing field among developers will be levelled, eliminating those with poor financial standing and enable strong ones to gain greater market share. Opportunities will arise for them to acquire land for development from weak developers with inadequate financial muscle. At the same time, the measures will curb speculative buying activities. India Legislative Reforms to Drive Real Estate Sector The real estate sector is emerging as one of India's largest employment drivers. Still, it is at the infancy stage, characterised by numerous, fragmented small players and a handful of large players with international presence. Realising that restrictive legislation and lack of transparency were the main impediments to growth, the Indian government

decided to push forward with legislative and land-related reforms. In May 2001, the government allowed 100% FDI for the development of integrated townships. However, foreign developers would have to build roads and other basic infrastructure before project sales are permitted. Non-Resident Indians (NRIs) are now allowed to invest up to 100% equity in Indian companies engaged in real estate development. In early 2005, rules for foreign investment in the real estate sector were further relaxed. Foreign investors no longer need to seek approval from the Foreign Investment Promotion Board for the construction of apartment buildings, hotels or other projects. In addition, foreign companies need only buy a minimum of 25 acres (10 ha) of land, instead of 100 acres previously. Such a move will attract a greater inflow of foreign investments into the Indian property market. Shortage of Homes For the housing market, mortgage lending, low interest rates and fiscal incentives have made housing affordable to many middle-income professionals. Favourable demographics such as the growing working population, increases in income and urbanisation trends have also resulted in growing demand for homes and durable goods. Based on the Census 2001, teenagers made up about 20% of India's population. Crossing over the next decade when these teenagers become working adults, there will be greater demand for new housing. Vietnam Housing Demand is Well Supported Government reforms, strong economic growth and large annual remittances by Viet Kieus (overseas Vietnamese) estimated at US$3 billion per annum have resulted in a significant increase in new and secondary residential property transactions over the last five years. Rising affluence among the locals has translated into reported success of recently launched housing projects, a 30% annual increase in vehicle ownership and an annual increase of more than 20% for life insurance premia in the last few years. As part of its economic reforms, the Vietnamese government introduced policies to boost the real estate market and promote home ownership. The liberalisation of land laws allowing Viet Kieus to purchase and own houses and apartments has stimulated the local housing market. According to an annual foreign ministry report, some 700,000 Viet Kieus have returned in the last two years to purchase properties for investment and retirement. Many of the estimated 2.7 million overseas Vietnamese are also helping their relatives in Vietnam to purchase properties. The property market is further supported by the fact that investment opportunities for locals are limited. Most would prefer to invest in properties rather than the stock market, as the latter is still in its infancy stage. Many have also seen the value of their properties rise due to the government's infrastructure upgrading programme in key cities. According to the 10th Five-Year plan (2002-2007), there is a current shortage of about 30 million housing units in India, of which about 8.9 million units are urban housing. Bridging this gap will require another 22 million homes to be built in both rural and urban areas by 2007. None of the domestic players has the financial strength to invest in large-scale development projects. To meet this demand, the Indian government has to raise funds through the FDI route.

Special Feature With continued expansion of MNCs, the growing number of expatriates in Beijing will drive demand for quality homes The new Land Law, which came into effect on 1 July 2004, will curb land speculation and weed out developers lacking in financial and development expertise. The government has introduced measures to review land use and plans to put unused land for auction in the near future. Further revisions of the Land Law to give foreign investors access to land leases are in progress. City Focus According to the United Nations, China's population will reach 1.45 billion by 2030, of which 60% is expected to reside in urban areas. This works out to an annual increase in population of 5 million till 2030. As for India, its population is expected to increase at a much faster rate of 12.75 million annually, reaching 1.42 billion in 2030. About 40% of India's population is expected to comprise of urban inhabitants by then. Similarly, Vietnam's population will also increase at the rate of 1 million annually. By 2030, its total population is expected to increase to 108.4 million, with more than 40% of urban population. With increasing population and urbanisation, it is expected that the demand for housing and development opportunities in these cities will continue to be robust. Shanghai Shanghai's housing market enjoyed rapid growth in the last few years, underpinned by increasing household income, continued urbanisation and growing expatriate communities. Investment in Shanghai's real estate sector in 2004 totalled US$14.2 billion, up 30.4% as compared to 2003. A total 30.8 million sm of residential floor area was built, up 43.7% year-on-year, while approximately 32.3 million sm were sold, up 38.5% from 2003. Despite the increase in housing prices, there has been substantial local demand. According to the presale housing register, Shanghai local residents bought 20.7 million sm of housing in January to October 2004, accounting for 81% of the total sales area. With more infrastructure developments in the city centre and the outskirts, greater housing demand will be created in both prime and suburban areas. With high demand from foreign investors and local investors from other provinces, coupled with rising employment rates and wage growth, the outlook for Shanghai's residential property market is good. Beijing Demand for housing in Beijing has been good over the last few years. According to the Beijing Municipal Bureau of Statistics, total real estate investment in

2004 was RMB147.3 billion (US$17.8 billion), an increase of 22.5% from 2003. Residential property sales also rose 37.5% during the year to RMB108.5 billion (US$13.1 billion). A new urban blueprint ("Twin axis, Twin belt, Multiple centres" plan) is being developed to address the traffic congestion problem in Beijing. More satellite towns will be developed as the government services and businesses spread beyond the city centre. These towns will be in strategic locations, with an excellent industrial base and living environment to attract industries and population from the downtown areas, as well as migrants from the rural areas. With continued expansion of multinational companies in the automobile, telecommunication and banking sectors, it is expected that the number of expatriates in Beijing will also continue to grow. This will help to ensure continued demand for residential housing in Beijing in the next decade. Hence, the residential market outlook in Beijing remains stable, with housing demand expected to sustain at about 200,000 units per annum till 2010. Chengdu Demand for residential properties in Chengdu continued to be well supported by both local and foreign buyers, with a take-up of 6.9 million sm residential properties in the main city area during 2004, an increase of 40% year-on-year. With its strategic location in the west and the implementation of the "Go West" policy, Chengdu will continue to be an attractive place for investment and settlement. According to the Chief Planner, Chengdu's population is expected to grow to 14-15 million by 2020, up from 10.4 million in 2003. Demand for residential units is, therefore, expected to increase and Chengdu's property market should remain healthy for the next decade. With increasing affluence and expanding middle-class population, the demand for quality housing has risen companies and investors. The state government's efforts in attracting more investments in biotechnology and IT-enabled services, will help to sustain Bangalore's high population growth rate and residence rate, which will translate into a potentially large market for housing development. In particular, the residential market, especially in south and southeastern Bangalore, continues to experience strong investor and end-user demand. Rentals and capital values of luxury apartments in the suburban districts have also increased between 15% and 30% over the past one year. With rising incomes, a large influx of people and leasing opportunities in serviced apartments and residential units, the property market in Bangalore is fundamentally strong. Ho Chi Minh City Robust GDP growth of 11.6% in 2004 and aspirations for home ownership have fuelled strong demand for quality housing in Ho Chi Minh City. With growing investment interest from both the locals and overseas Bangalore Located in south India, Bangalore has the fifth largest urban population in the country. Hailed as the "Silicon Valley" of India, it has attracted many local and foreign

Special Feature residential property prices for prime addresses in Ho Chi Minh City, in particular within the CBD of District 1 and the An Phu area of District 2. Going forward, the city government plans to focus on key industries such as real estate, finance and banking, tourism, shipping and insurance to contribute to the national growth target of 8.5% for 2005. Foreign investors will also be encouraged to participate in the property market, in particular urban residential developments. In its urban development plan, more urban centres will be developed in the eastern and western regions of the city to create more housing space to alleviate overcrowding in the city centre. Efforts will also be put into the development of transport networks and public works. Vietnam s strong housing demand will continue to prevail with positive reforms and increasing affluence Vietnamese, and the opening up of the property market to foreign developers and investors, highquality new projects have seen high take-up rates. To differentiate their properties, developers are increasingly adding facilities and amenities such as swimming pools, kindergartens, convenience stores, more parking space and security to their developments. Strong demand from the growing middle class is expected to keep yields steady at around 15-20%. At the same time, scarcity of land in prime locations, lack of new supply and strong demand for well-planned residential estates will further boost Conclusion China, India and Vietnam have performed well since the late 1990s. The residential property sectors, which are important pillars to their respective economies, have also made much advancement with positive economic and housing reforms. Over the next decade, we foresee strong housing demand to continue to prevail and more exciting development opportunities for developers and investors in these Asia's dynamic economies. Given its headstart in these countries, Keppel Land is in good stead to benefit from the growing demand for quality residential properties in the different segments in various cities in these countries.

Keppel Land's Residential Projects in China, India and Vietnam China Park Avenue Park Avenue is a 2,771-unit residential development in Jingan District, central Shanghai, comprising One Park Avenue, 8 Park Avenue and Park Avenue Central. Villa Project at Xujing In December 2004, Keppel Land acquired a 15.3-ha site in Xujing Town, Qingpu District of Shanghai, to develop a 186-unit villa and landed homes development targeted at the local upper class and expatriate communities. The Seasons The Seasons is a 1,859-unit residential development located within Wang Jing Estate in Beijing. The Waterfront Keppel Land is developing a 1,143-unit condominium project named The Waterfront in southeastern Chengdu, the capital city of Sichuan province in China. The Botanica The Botanica is a 42-ha residential township development in Chengdu, developed by CityOne Township Development, a joint venture between Keppel Land and HDB Corporation. Targeted at Chengdu's middleincome group, this project will be developed in phases and will yield about 8,000 low- and high-rise apartment units, commercial buildings and supporting amenities. India Residential Development in Bangalore Keppel Land entered into a joint venture to develop a 9.7-ha site in Bangalore, the "Silicon Valley" of India. This project is located south of Bangalore's city centre, with easy access to the city centre and the Electric City. Targeting at the middle-income population, this township project will have around 2,000 units with comprehensive recreational facilities. Vietnam Villa Riviera Villa Riviera is a gated development of 113 quality villas, complete with resort-style facilities in Ho Chi Minh City (HCMC). It is located in the elite neighbourhood of An Phu Ward, an area highly popular among the expatriate community and high-income locals. Catering to the upper-income market, Villa Riviera will feature 4- and 5-bedroom units in eight different layouts. Saigon Sports City Saigon Sports City, also located in An Phu Ward in HCMC, is a fully integrated development comprising residential, retail, commercial and recreational facilities and amenities. Catering to the upper-income market and with proximity to many sports and recreational facilities, the development is poised to be the first to embark on a healthy lifestyle development concept in Vietnam.

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OPERATING & FINANCIAL REVIEW Structure of Keppel Land Group 80 Strategic Directions and Outlook 81 Financial Review 83 Segmental Reporting 88 Sensitivity Analysis 91 Property Portfolio Analysis 92 Value Added Statement 94 Productivity Analysis 96 Economic Value Added 98 Corporate Liquidity and Capital Resources 99 Risk Management 101 Business Dynamics and Risk Factors 104 Critical Accounting Policies 105 Asian Economic and Property Round-up 106 Operations and Market Review 112

STRUCTURE OF KEPPEL LAND GROUP Board of Directors Audit Committee Chairman Managing Director Group Company Secretary Director, Corporate Services Senior Manager, Group Internal Audit Finance and Tax Treasury and Administration Human Resources Corporate Secretariat Investor Relations Property Investment & Development Property Services Hospitality Property Fund Management Singapore Investments Regional Investments Corporate Planning and Development Asset Planning Development Management Property Marketing Property Management Retail Management Hotel, Club, Resort and Serviced Apartment Management Property Fund Management Asset Management Investor Relations and Research Information Technology Technology Infrastructure 80

STRATEGIC DIRECTIONS AND OUTLOOK Keppel Land s overseas expansion will provide a platform for broadening the Company s earnings base and generating better profit margins Keppel Land continues to pursue its strategy of focusing on property development for sale and property fund management in the region. The Group has expanded and deepened its presence in Asia's growth cities, and is now building its reputation as a developer of quality homes beyond Singapore. The Group's property fund management business is being groomed to provide streams of fee-based incomes to balance out the volatility of property development. Going forward, Keppel Land will continue its efforts at growing overseas earnings, making inroads into new markets and new segments in the region. In Singapore, the Company will progressively launch its residential projects and actively lease out space at One Raffles Quay. the risks of projects and their impact on the Group's earnings, cash flows and balance sheet. Grow Overseas Earnings Overseas expansion provides the Group with a platform for broadening its earnings base and generating good profit margins. Keppel Land's move into residential development in growth markets like China, Thailand and Vietnam has made a significant impact on earnings, and is likely to continue to do so. Its share of earnings from overseas has grown from a mere 3% of net profit before exceptional items in 2002 to 43.1% in 2004. The Group is on track towards achieving at least 50% of net earnings from overseas by 2005. Keppel Land remains committed to divesting its lowyielding investment properties. With the recovery of the Singapore office market, the Group will continue to evaluate its options, be it by real estate investment trusts, direct sale or securitisation. In the area of financial management, the Group will continue to strengthen its balance sheet, exercising discipline in the use of debt and equity, as well as financial instruments such as interest rate caps and interest rate swaps. As the Company intensifies its operations overseas, it is also taking a more pro-active approach to risk management. It has undertaken an exercise to quantify Make Inroads into New Markets and Segments Recognising the potential in providing quality homes to the ever-increasing middle-class population, Keppel Land has embarked on residential township development in the region, which will provide a steady stream of earnings to the Group for the longer run. In 2004, Keppel Land took the opportunity to move into the Shanghai villa market by acquiring a company which owned a villa site. The Group has also ventured into India, where it will jointly develop a high-rise condominium project with more than 2,000 homes. 81

In Singapore, Keppel Land partnered Harrah's Entertainment to jointly submit concepts for the development of world-class Integrated Resorts (IR) at Sentosa and Marina Bayfront. The government's decision on whether or not to proceed with the IR is expected in mid-april 2005. Outlook There may be some uncertainty in markets where cooling-down policies are being implemented by governments who want a more stable development of their property markets. The continued weakening of the US dollar may cause volatility in some Asian economies. Step up Project Launches and Leasing Activity in Singapore With the rebound in Singapore's residential and office property markets, Keppel Land will capitalise on improving sentiments by launching more housing projects and actively leasing out its prime landmark office development One Raffles Quay. Three developments, with a total of about 800 units, which are located in popular districts and transportation nodes will be released for sale. One Raffles Quay, which is jointly-developed with Cheung Kong (Holdings) and Hongkong Land, will be coming onto the market in 2006 with net lettable space of 1.3 million sf in two office towers. However, demand for quality housing and residential townships is generally expected to be on an uptrend, supported by economic improvement, urbanisation and demographic trends. With a strong flow of funds flowing into Asian real estate from US and European pension, insurance and mutual funds, the prospects for property fund management are good. Despite the challenges ahead, with sound strategies, established market presence and good execution skills, Keppel Land will continue to ride on the growth of the regional property markets. Increase Fee-based Income Keppel Land will continue to grow its fee-based income through its property fund management arm, Alpha Investment Partners (Alpha). Alpha currently has two property funds, Asia No. 1 Property Fund and Alpha Core Plus Real Estate Fund, which when fully invested will achieve assets under management (AUM) of $1 billion. Asia No. 1 Property Fund has investments in a hybrid of office, retail and residential properties in Japan, South Korea, Hong Kong and Singapore. Earnings are expected to flow through to Keppel Land as Alpha grows in scale with more monies raised for existing funds and expansion in AUM. Country Focus Summary of Keppel Land's Achievements in 2004 : 1. Increased PATMI to $133 million, up 32.5% from 2003. 2. Grew overseas earnings to 43% of PATMI before exceptional items, up from 32% in 2003 and 3% in 2002. 3. Improved ROE (before exceptional items) to 8.6% from 8.5% in 2003 and 6.4% in 2002. 4. Increased gross dividend per share to 5 cents from 4 cents in 2003, 3.5 cents in 2002 and 3 cents in 2001. Focus Singapore, China, Thailand, Vietnam, India and Indonesia Selectively acquire land for development for sale 5. Entered into new markets and segments, such as a residential township in Cakung, Indonesia; a villa project in Shanghai, China; and a condominium project in Bangalore, India. Active Hong Kong, Japan, South Korea, Malaysia and Philippines Monitor markets for any future 6. Launched and sold more than 1,100 homes in China, Thailand and Vietnam. opportunities 7. Achieved first closing of about $275 million for Alpha 82 Monitor Australia and Myanmar Keep watching brief of the markets Core Plus Real Estate Fund, and invested over 60% of $170 million raised for the first fund, Asia No.1 Property Fund.

FINANCIAL REVIEW Overview 2004 2003 % Increase/ $'000 $'000 (Decrease) Sales 476,165 678,781 (29.8) Profit before tax and exceptional items 140,508 135,262 3.9 Profit before tax and after exceptional items 140,508 109,462 28.4 Profit after tax and minority interests (PATMI) 133,280 100,551 32.5 Shareholders' funds 1,606,806 1,486,904 8.1 Net borrowings 1,761,709 1,600,019 10.1 Debt-equity ratio (%) 96 95 1.1 Earnings per share (cents) 18.8 14.2 32.4 Return on equity before exceptional items (%) 8.6 8.5 1.2 Dividend per share (cents) 5.0 4.0 25.0 Net tangible assets per share ($) 2.26 2.09 8.1 Revenue at $476 million was lower compared to last year's of $679 million due to the completion of the Group's Singapore trading projects Butterworth 8 and Amaranda Gardens, and Botanic Cove in Sydney. However, the sale of four Cluny Hill land plots, progressive recognition from new projects launched, namely Urbana, 8 Park Avenue, The Seasons and The Waterfront, and improved turnover from the Group s hotels and resorts helped to offset the decline in revenue. PATMI rose 32% to $133 million in 2004 due to the sale of four Cluny Hill land plots and profit streams from new projects launched overseas. The Group also continued to benefit from the benign interest rate environment with interest cost kept below the 3% level for the year. The Group's tax expense was lower due to group tax relief benefits and a write-back of deferred tax provisions. Earnings from overseas rose to 43% of the Group's attributable profit from 32% in 2003 on the back of greater activities and focus on the region which are in line with the Group's expectation of growing overseas contributions to 50% of total earnings by 2005. Owing to funding of the Group's Singapore and overseas projects, and fund management activities, the Group's net debt went up by 10% to $1.8 billion. As a result, net debt/equity ratio for the Group increased to 0.96 from 0.95. Shareholders' funds increased to $1.6 billion from $1.49 billion a year ago owing to higher PATMI and no downward revaluation of the investment property portfolio which remained at about $1.55 billion. Net tangible asset per share increased to $2.26 from $2.09 at end-2003. The Group's return on equity (ROE) before exceptional items improved to 8.6% from 8.5% last year. For 2004, the final proposed dividend was increased to 10% or 5 cents per share less tax as compared with 8% or 4 cents per share less tax for 2003. 83

Revenue Revenue at $476.2 million was 29.8% lower compared with $678.8 million in 2003. Group Sales ($ million) 800 Revenue from property trading accounted for 700 678.8 $361.1 million compared with $563.6 million in 2003. The lower revenue was due to the completion of the 600 Group's trading projects in Singapore and overseas. However, the sale of four Cluny Hill land plots, and 500 500.5 476.2 progressive recognition from new projects launched helped to offset the decline in turnover. 400 Revenue from property investment was lower at 300 300.5 299.0 $71.3 million compared with $79.3 million last year due mainly to lower rent reversion rates compared to 200 three years ago. 100 The Group's hospitality, services and other sectors 0 recovered from the SARS outbreak in 2003, registering 2000 2001 2002 2003 2004 an 8% increase in revenue from $35.9 million in 2003 to $43.8 million in 2004. Earnings PATMI rose 32% to $133.3 million in 2004 due to the sale of four Cluny Hill land plots and profit streams from newly launched projects. The Group's associated companies also contributed to the higher earnings, Group Profit ($ million) 200 161.6 122.1 100 109.5 100.6 140.5 133.3 with an increase of 62% from $22.4 million in 2003 to 61.3 $36.4 million in 2004. 0 26.4-100 -200-300 -400 (371.5) (368.4) 2000 2001 2002 2003 2004 Profit before Tax but after Exceptional Items Attributable Profit 84

The Group continued to benefit from the benign interest rate environment with interest cost kept below 3% for the year. The Group's tax expense at $2.9 million was 75% lower compared with $11.4 million in 2003 due to benefits from group tax relief of $16.1 million and a write-back of deferred tax provisions of $3 million with the reduction in corporate tax rate from 22% to 20%. This represents an effective tax rate of 2% for the year. Earnings and Dividend Per Share (cents) 30 20 21.1 19.1 17.3 15.8 18.8 10 7.7 14.2 3.0 3.0 3.7 4.0 5.0 0 3.5-10 Returns to Shareholders -20 Earnings per share improved significantly with 18.8 cents achieved in 2004. It was 14.2 cents for 2003-30 and 3.5 cents for 2002. -40 Overseas earnings grew to 43% of Group attributable profit before exceptional items in 2004, up from 32% in 2003 and 3% in 2002. -50-60 2000 (54.3) 2001 (52.0) 2002 2003 2004 From 6.8% last year, ROE grew by 26% to 8.6% in 2004. ROE was 1.7% in 2002. A final dividend of 10% or 5 cents per share less tax amounting to $28.5 million for 2004 has been proposed by the Directors. This represents a gross dividend yield of 2.2% per share based on the share price of $2.25 as at 31 December 2004. The dividends for 2003 and 2002 were $22.7 million (or 4 cents per share less tax) and $19.3 million (or 3.5 cents per share less tax) respectively. Earning before Tax but after Exceptional Items Earning after Tax and Exceptional Items Gross Dividend Return on Shareholders Equity (%) 15 10 7.5 6.8 5 5.5 6.8 3.6 8.8 8.6 0 1.7-5 -10-15 -20 (19.2) (20.1) -25 2000 2001 2002 2003 2004 Return before Tax but after Exceptional Items Return after Tax and Exceptional Items 85

Financial Conditions Dividend Payout During the year, the Company issued 2.1 million shares for cash upon the exercise of options by certain full-time employees. 30 25 28.5 5.0 6 5 Share capital and reserves as at end-2004 amounted to $1.61 billion, up from $1.49 billion a year ago. 20 19.3 22.7 4.0 4 Gross borrowings increased by 2.5% from $2.1 billion in 2003 to $2.2 billion in 2004. In 2004, 15 16.6 16.0 3.0 3.0 3.5 3 short-term borrowings constituted 15% of total borrowings, versus 12% in 2003. 10 2 Minority interests increased by 9% from $206 million 5 1 in 2003 to $226 million in 2004. As a result, total assets went up $192.9 million to 0 2000 2001 2002 2003 2004 0 $4 billion at the end of 2004. Total Dividend Paid/Payable ($ million) Gross Dividend Per Share (cents) Five-year Financial Record (a) Profit 2004 Attributable profit at $133.3 million was contributed mainly by the sales of four Cluny Hill land plots, further profit recognition from One Park Avenue, write-back of provisions for Amaranda Gardens and Butterworth 8, and Caribbean at Keppel Bay. New profits from The Seasons in Beijing and The Waterfront in Chengdu also started to stream in. The Group benefitted from a group tax relief of $16.1 million as well. Sources of Finances ($ million) 6000 5000 4,945.3 4,498.3 961.5 129.1 4000 3,721.5 3,794.2 137.5 247.9 3,987.1 325.9 3000 1,367.5 363.7 2,509.0 1,914.1 1,853.1 1,828.8 2000 277.9 189.6 206.3 225.6 1000 2,252.6 1,582.3 1,480.3 1,486.9 1,606.8 0 2000 2001 2002 2003 2004 Short-term Borrowings Minority Interests Long-term Borrowings Shareholders Equity 86

2003 Strong sales of One Park Avenue, three Cluny Hill land plots and higher contributions from associated companies underpinned the improved performance in 2003. PATMI before exceptional items was $126.4 million. After taking into account the impairment loss of $25.8 million for its Myanmar hotels, Group attributable profit was $100.6 million. 2002 Attributable profit was $26.4 million after incurring an exceptional loss of $70.4 million on disposal of Capital Square. Excluding the exceptional item, PATMI was $94.3 million with maiden profits from One Park Avenue and write-back of provisions for Amaranda Gardens, Butterworth 8 and The Edgewater. Assets Employed ($ million) 6000 5000 4,945.3 4,498.3 1,132.9 4000 898.8 156.1 168.1 683.4 3000 808.9 2000 2,972.9 2,622.6 1000 3,987.1 3,721.5 3,794.2 890.8 967.3 1,120.4 169.8 195.2 186.4 784.6 897.0 924.0 1,876.3 1,734.7 1,756.0 2001 The Group incurred an attributable loss of $368.4 million 0 2000 2001 2002 2003 2004 after accounting for $455.1 million of provisions for the Group's trading properties and landbank in Singapore as an exceptional item. Net Current Assets / (Liabilities) Investments Development Properties Fixed Assets and Investment Properties 2000 Attributable profit was $122.1 million with main contributions from further profit recognition from Villa Verde and Pebble Bay, and maiden profit streams from Caribbean at Keppel Bay and Freesia Woods. Net Tangible Asset Per Share ($) 4 (b) Assets Over the five-year period, assets employed and net 3.18 tangible asset per share declined 19.4% and 28.9% to 3 $4 billion and $2.26 per share respectively due mainly to the effects of asset deflation in the region. However, the region has recovered and the Group has 2 2.23 2.09 2.09 2.26 benefitted from this recovery since 2002. 1 0 2000 2001 2002 2003 2004 Net Tangible Asset Per Share 87

SEGMENTAL REPORTING Property Trading Revenue for property trading at $361.1 million was 36% lower compared with $563.6 million for 2003 due to the completion of residential properties in Singapore and overseas. However, the reduction was partly offset by the sale of four Cluny Hill land plots and new contributions from overseas projects launched in China and Thailand, namely 8 Park Avenue, The Seasons, The Waterfront and Villa Arcadia at Srinakarin. Owing to the completion of the residential properties, EBITDA fell 25% from $109.4 million to $82 million in 2004. As a result of lower contributions from One Park Avenue and Caribbean at Keppel Bay, profit before tax fell from $124.2 million to $105.6 million while attributable profit fell from $103.3 million to $97.2 million. Sales Mix ($ million) 800 700 600 500 400 300 200 100 0 678.8 35.9 476.2 43.8 563.6 361.1 71.3 79.3 2004 2003 The main contributors to attributable profit were the four Cluny Hill land plots, the fully-sold One Park Avenue based on 97.3% completion, and the 100% completed Caribbean at Keppel Bay based on 45% sales at end-2004. Hospitality, Services and Others Property Investment Property Trading As at end-2004, capital employed was $1,383.6 million, constituting 35% of Group capital employed. Sales by Segment ($ million) 400 Property Investment Revenue for property investment at $71.3 million was lower than last year's $79.3 million due to lower rent reversion rates compared to three years ago. EBITDA was lower at $40.6 million compared with $50.8 million in 2003. 350 300 250 200 361.1 150 100 71.3 50 43.8 0 Property Investment Property Trading Hospitality, Services and Others 88

Despite a lower revenue, attributable profit was maintained at similar level as 2003 at $32 million due to a write-back of deferred tax provisions of $3 million resulting from the reduction in corporate tax rate from 22% to 20%. EBITDA and Capital Employed by Segment ($ million) 2500 2,152.2 2000 Capital employed in investment properties as at end-2004 were $2.12 billion, compared with $2.36 billion a year ago, constituting 54% of the Group's capital employed. 1500 1,383.6 1000 Hospitality, Services and Others In 2004, the Group recovered from the SARS outbreak suffered a year ago. Tourism picked up in the region 500 451.3 and hence, revenue for this segment was 22% higher at $43.8 million as compared with $35.9 million in 2003. 0 40.6 82.0 2.5 The Group managed to turn around at EBITDA level, Property Investment Property Trading Hospitality, Services and Others registering a gain of $2.5 million as compared to losses of $18.6 million suffered last year, due to higher EBITDA Capital Employed occupancies for the Group's hotels and resorts. At the attributable level, the Group made a profit of $3.4 million compared with $9 million loss for 2003. Capital employed as at end-2004 in hospitality, services and others was $451.3 million or 11% of Group s total. Pre-Tax Profit ($ million) 120 100 105.6 80 60 40 42.5 20 0 (7.6) -20 Property Investment Property Trading Hospitality, Services and Others 89

Exceptional Items There were no exceptional items for 2004. The exceptional item in 2003 was the impairment charge of $25.8 million against the Group s two hotels in Myanmar due to the continued uncertainty in the country. Attributable Profit ($ million) 120 100 80 97.2 60 40 32.4 20 0 Property Investment Property Trading 3.7 Hospitality, Services and Others Sales, Profits and Capital Employed by Segment Attributable Sales EBITDA Pre-tax Profit Profit Capital Employed 2004 2003 2004 2003 2004 2003 2004 2003 2004 2003 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Property investment 71,288 79,306 40,592 50,844 42,462 40,467 32,382 32,066 2,152,180 2,146,128 Property trading 361,138 563,620 81,963 109,448 105,645 124,214 97,223 103,311 1,383,600 1,165,160 Hospitality, services and others 43,739 35,855 2,516 (18,675 ) (7,599) (29,419) 3,675 (9,026 ) 451,286 482,863 Before exceptional items 476,165 678,781 125,071 141,617 140,508 135,262 133,280 126,351 3,987,066 3,794,151 Exceptional items - - - - - (25,800) - (25,800 ) - - After exceptional items 476,165 678,781 125,071 141,617 140,508 109,462 133,280 100,551 3,987,066 3,794,151 Group 476,165 678,781 104,151 87,052 103,759 84,274 Associates - - 36,357 22,410 29,521 16,277 476,165 678,781 140,508 109,462 133,280 100,551 90

SENSITIVITY ANALYSIS Investment Properties The Group's principal investment properties are Ocean Building, Ocean Towers, Keppel Towers, GE Tower and Prudential Tower in Singapore, Saigon Centre, International Centre and Royal Park in Vietnam and Wisma BCA in Indonesia. The rental income from these properties is sensitive to changes in their occupancies and the rental rates for lease renewals. Assuming that average rental rate is maintained, a full year's impact on rental income for every 1% change in the occupancies of the Group's investment properties is approximately $0.4 million. In respect of committed leases and lease renewals, a full year's impact on rental income for every 10% change in average rental rates resulting from new rates negotiated is about $5.6 million. Change in Rental Income Resulting from: $ million 1% change in occupancies (a) 0.4 10% change in average rental rates (b) 5.6 (a) Assuming current average rentals are maintained. (b) Based on committed leases and leases for renewal in 2005. Incremental Impact of Additional Sales and Completion of Trading Properties on Group Pre-tax Profit Resulting from: $ million For every 5% of physical completion (c) 5.0 For every 1% of additional sales (d) 3.8 Trading Properties The Group's profit from property trading is sensitive to actual sales achieved and the percentage of physical completion recognised during the year. (c) Based on actual sales contracts at 31 December 2004. (d) Based on physical completion projected and sales projected for the year, and completed properties available for sale at end-2004. Based on actual sales contracts signed as at 31 December 2004, the incremental impact on Group pre-tax profit for every 5% of physical completion is about $5 million. For every additional 1% of sales achieved for projects which have been launched, the additional contribution to Group pre-tax profit is an estimated $3.8 million. This is based on physical completion and sales projected for the year, and the completed properties available for sale which the Group had at end-2004. 91

PROPERTY PORTFOLIO ANALYSIS The Group's diversified property portfolio, comprising office buildings, residential properties, hotels and resorts, serviced apartments, shophouses and retail outlets, and industrial buildings are owned through subsidiaries and associated companies. Details of the Group's property portfolio are given on pages 220 to 230. The following analysis as at 31 December 2004 includes only the Company's effective interests. Singapore Properties (a) Analysis by Tenure Freehold properties constituted 36% of the Group's properties, while 999-year leases and 99-year leased properties made up the balance of 21.5% and 42.5% respectively. 42.5% Freehold 999-year Lease 99-year Lease and Others 18.3% Analysis by Tenure 36% 21.5% (b) Analysis by Development Stage 59.1% of the Group's portfolio was made up of completed properties while 22.6% was under development. Properties under development included The Callista, The Elysia and Urbana. The balance 18.3% of the Group's properties was landbank awaiting development. (c) Analysis by Sector 49.6% of the Group's office property portfolio included Ocean Building, Ocean Towers, Equity Plaza, Prudential Tower, Keppel Towers, GE Tower, Bugis Junction Towers and Keppel Bay Towers. Residential properties made up 41.9% while the remaining portfolio comprised hotel, retail and industrial components in the proportions of 1.5%, 5.4% and 1.6% respectively. 22.6% Completed Awaiting Development Under Development 1.5% 5.4% 1.6% Analysis by Development Stage 59.1% Analysis by Sector 41.9 % Office Residential Hotel Retail Industrial 49.6% 92

(d) Analysis by Estimated Building Floor Area The total building floor area of the Group's property portfolio was 609,000 sm. Office buildings and residential properties formed 36.4% and 54.2% respectively of the total building area. The balance comprised 2% for hotel, 2.6% for retail and 4.8% for industrial buildings. 4.8% 2.6% 2% Analysis by Estimated Building Area 36.4% Overseas Properties 76.3% of the Group's completed properties was in Singapore while 23.7% was located overseas. Taking into account projects under development, Singapore and overseas properties constituted 73.3% and 26.7% respectively of the Group's portfolio. The Group's property portfolio amounted to $4.1 billion. Office Residential Hotel Retail Industrial 54.2% 23.7% Analysis by Location - Completed Projects Local Overseas 76.3% 26.7% Analysis by Location - All Projects Local Overseas 73.3% 93

VALUE ADDED STATEMENT By Segment Hospitality, Property Property Services Investment Trading and Others Group $ million $ million $ million $ million Total value added 2004 68.6 112.4 40.5 221.5 2003 68.2 129.0 (6.0) 191.2 Distributed as follows: Employees in salaries and staff benefits 2004 5.4 4.5 33.7 43.6 2003 5.0 2.5 30.5 38.0 Government in taxes 2004 6.2 5.1 (8.4) 2.9 2003 4.5 17.9 (11.0) 11.4 Providers of capital in dividends and interest 2004 31.1 5.3 24.6 61.0 2003 21.4 7.0 27.7 56.1 Retained for reinvestment and asset replacements 2004 25.9 97.5 (9.4) 114.0 2003 37.3 101.6 (53.2) 85.7 Total distribution 2004 68.6 112.4 40.5 221.5 2003 68.2 129.0 (6.0) 191.2 Total Value Added by Segment ($ million) 250 221.5 200 43.6 191.2 2.9 38.0 150 100 61.0 11.4 56.1 112.4 4.5 5.1 5.3 129.0 2.5 17.9 7.0 50 114.0 85.7 68.6 68.2 5.4 5.0 6.2 4.5 31.1 21.4 97.5 101.6 58.3 33.7 58.2 30.5 0 25.9 37.3 24.6 9.4 8.4 (17.8) 27.7 53.2-50 11.0 (64.2) 94-100 Employees 2004 2003 2004 2003 2004 2003 2004 2003 Group Property Investment Property Trading Hospitality, Services and Others Governments Providers of Capital Retained / Reinvested in Group s Business

Value Added Statement 2000 2001 2002 2003 2004 $ million $ million $ million $ million $ million Our sales of goods and services to non-group customers totalled 500.5 300.5 299.0 678.8 476.2 Whereas our purchase of raw materials, supplies and services from non-group sources amounted to (303.4) (608.3) (197.1) (525.0) (307.6) So that the value added from operations was 197.1 (307.8) 101.9 153.8 168.6 In addition: our share of profits earned by associated companies was 10.4 8.4 15.2 22.4 36.4 income from our investments was 30.9 28.7 21.3 15.0 16.5 238.4 (270.7) 138.4 191.2 221.5 Excluding investment income, total value added for the Group was distributed as follows: to employees in wages, salaries and benefits 28.0 33.7 33.5 38.0 43.6 to governments in taxation 29.3 14.2 32.8 11.4 2.9 to providers of capital in: interest paid on borrowings 51.0 48.8 26.5 30.1 24.0 dividends to minority shareholders in subsidiary companies 52.8 44.8 6.0 6.6 14.3 dividends to shareholders of the Company 16.0 16.0 16.6 19.3 22.7 119.8 109.6 49.1 56.0 61.0 The balance was reinvested in or ploughed back from business in: depreciation 16.7 18.5 15.4 13.6 13.4 minorities' share of subsidiary companies previous years' profits ploughed back (43.9) (58.4) (8.4) (9.1) (10.0) profit for the year retained or previous years' profits ploughed back by the Company 57.6 (417.0) (5.3) 66.3 94.1 30.4 (456.9) 1.7 70.8 97.5 207.5 (299.4) 117.1 176.2 205.0 And non-operating income was: investment income 30.9 28.7 21.3 15.0 16.5 238.4 (270.7) 138.4 191.2 221.5 95

PRODUCTIVITY ANALYSIS In 2004, the total value added by the Group including investment income was $221.5 million. In terms of segmental contribution, this figure can be analysed as follows: $ million Property trading 112.4 Property investment 68.6 Hospitality, services and others 40.5 221.5 Value Added (Excluding Investment Income) ($ million) 300 207.5 205.0 200 28.0 176.2 43.6 29.3-299.3 38.0 2.9 33.7 117.1 11.4 14.2 61.0 100 119.8 33.5 56.1 32.8 97.5 109.7 49.1 70.7 0 30.4 1.7 2000 2001 2002 2003 2004-100 The total value added by the Group for the previous year was $191.2 million. -200 (456.9) Income from the Group's investments was $16.5 million. Excluding this investment income, the Group's value added from operations of $205 million was absorbed by employees in salaries and staff benefits of $43.6 million, governments in taxation of $2.9 million, and providers of capital in interest and dividends totalling $61 million. The balance of $97.5 million was reinvested in or ploughed back from business. -300-400 -500 Wages, Salaries and Benefits Interest Expense and Dividends Taxation Depreciation and Retained Profit The Group s value added from operations for the previous year was $176.2 million. Salaries and staff benefits of employees absorbed $38 million, tax to governments $11.4 million, and interest and dividends to capital providers $56 million, leaving the balance of $70.8 million reinvested in business. 96

Productivity Data (Excluding Associated Companies) 2000 2001 2002 2003 2004 Sales per employee: excluding associated companies ($ 000) 249.3 163.3 163.3 369.9 241.1 Value added per employee: gross value added basis ($'000) 98.2 (167.3) 55.7 83.8 85.4 net value added basis ($'000) 89.8 (177.3) 47.2 76.4 78.6 Value added per dollar employment cost: gross value added basis ($) 7.04 (9.13) 3.04 4.05 3.87 net value added basis ($) 6.44 (9.68) 2.58 3.69 3.56 Value added per dollar investment in fixed assets and investment properties (before depreciation): gross value added basis ($) 0.07 (0.12) 0.05 0.08 0.10 net value added basis ($) 0.06 (0.12) 0.05 0.08 0.09 Value Added Per Employee ($ 000) Value Added Per Dollar Employment Cost ($) 150 8 7.04 100 50 98.2 89.8 55.7 47.2 83.8 76.4 85.4 78.6 6 4 2 6.44 3.04 2.58 4.05 3.87 3.69 3.56 0 0-2 -50-4 -100-6 -8-150 -200 (167.3) (177.3) -10-12 (9.68) (9.13) 2000 2001 2002 2003 2004 2000 2001 2002 2003 2004 Gross Value Added Basis Net Value Added Basis Gross Value Added Basis Net Value Added Basis 97

ECONOMIC VALUE ADDED Group EVA is expected to improve with project sales, new fee-based income from fund management and divestment of low-yielding invesment buildings 98 Economic Value Added (EVA) is a measure of shareholder wealth creation, calculated by subtracting the cost of capital employed from net operating profit after tax. Keppel Land has a team of senior management which leads and manages the different aspects of EVA. The EVA team consists of a steering committee and three sub-committees responsible for the functions of measurement, management and motivation. The EVA team will introduce a new EVA-based compensation scheme initially for senior management in 2005, whilst concentrating on achieving an accurate measure of EVA to ensure that incentive schemes are fair and aligned with shareholders' interests. Measurement of EVA is conducted quarterly and is constantly reviewed throughout the year. Investment decisions are benchmarked against various measures of financial returns including internal rate of return and EVA. The EVA measure has been further refined in 2004 to include an adjustment for market risks, taking into account country specific factors. As Keppel Land has substantial assets employed in investment properties in Singapore, its EVA performance has been negatively affected as returns from rental income are below the cost of capital employed. However, the Group's shift in focus to EVA-accretive activities of property development for sale and property fund management in the last few years has led to a significant improvement in EVA. In 2004, Group EVA continued to improve by $49.1 million to a negative $86.6 million as compared with a negative $135.8 million in the previous year and a negative $299.4 million in 2002. The improvement was due to increased profitability and a reduction in the weighted average cost of capital from 8.7% to 7%. Looking forward, Group EVA is expected to improve further with progressive recognition of proceeds from project sales, new fee-based incomes from fund management and divestment of low-yielding investment buildings.

CORPORATE LIQUIDITY AND CAPITAL RESOURCES Corporate Liquidity and Capital Resources The Group's cash position declined to $392.9 million from $500.9 million last year due to land acquisitions in Singapore, China and India as well as fund management activities. As at end-2004, the Group had total funding facilities of $2.4 billion, out of which 96% was utilised. Owing to increased funding for its investments, net debt went up by 10% to $1.8 billion. As a result, net debt-equity ratio increased from 0.95 to 0.96 times in 2004. The Group's credit facilities were substantially unsecured except for $247.8 million (11.5%) loans obtained by certain subsidiary companies which pledged their assets to the lending financial institutions. The net book value of properties and other assets pledged/mortgaged amounted to $538.1million. In 2003, loans of $214.9 million were secured by assets valued at $449.1 million. The maturity profile of the loans is as follows: Credit Facilities ($ billion) 2.5 2.0 1.5 1.0 0.5 0.0 Floating Rate Borrowings Fixed Rate Borrowings ($ million) (No. of Times) 160 140 120 2.1 0.3 Available 2004 Interest Cover 3.9 148.3 2.0 0.3 Utilised 2004 1.9 0.4 Available 2003 151.3 1.7 0.4 Utilised 2003 4.8 4.2 3.6 Due in 2005 Due in 2006 to 2007 Due in 2008 to 2009 Rolling $325.8 million $203.6 million $888.2 million $737.0 million 100 80 60 40 38.2 51.4 2.9 3.0 2.4 1.8 1.2 On an unhedged basis, the fixed/floating proportion of the Group's debt as at year-end was 11% and 89% respectively. To hedge against interest rate increases, interest rate caps of $1 billion and interest rate swaps of $150 million were secured for the Group's borrowings. Taking into account these interest rate hedging instruments, the fixed/floating proportion was about 62% and 38% respectively. The Group's borrowings are denominated in S$, US$, Baht, and HK$. In order to achieve a natural hedge, the Group will, as far as practicable, arrange to fund its overseas assets in the same currencies in which the assets are denominated. During the year, $7.5 million of interest was charged to pre-tax profit, and $34.8 million was capitalised under development properties. Net cost of funds was lower at 2.4% for 2004, a 20% improvement from 3% for 2003. Interest cover improved from 2.9 times in 2003 to 3.9 times in 2004. 20 0 Debt-Equity Ratio ($ million) (No. of Times) 1,900 1,850 1,800 1,750 1,700 1,650 1,600 1,550 1,500 1,450 0.96 1,762 2004 2003 1,832 1,600 2004 2003 1,693 0.95 0.6 0.0 0.962 0.960 0.958 0.956 0.954 0.952 0.950 0.948 0.946 0.944 Debt Equity Debt-Equity Ratio ($ million) ($ million) (No. of Times) 99

Gearing Structure Fixed Rate Floating Rate Borrowings Borrowings Total $'000 % $'000 % $'000 % Facilities available for drawdown 250,000 100 2,087,117 100 2,337,117 100 Amount utilised 250,000 100 2,002,613 96 2,252,613 96 Balance unutilised - - 84,504 4 84,504 4 Cash in hand and on deposit 392, 924 477,428 2004 2003 Interest cover Profit before interest and tax ($'000) 148,267 151,274 Net interest cost expensed and capitalised ($'000) 38,189 51,399 Interest cover 3.9 2.9 Effective cost of borrowings Net interest cost expensed and capitalised ($'000) 38,189 51,399 Average net borrowings ($'000) 1,680,864 1,713,143 Effective cost of borrowings (%) 2.3 3.0 Secured borrowings ratio Total secured borrowings ($'000) 247,841 214,934 Percentage of total borrowings (%) 11.5 10.2 Debt-equity ratio Total borrowings: Gross ($'000) 2,154,633 2,100,945 Net of cash ($'000) 1,761,709 1,600,019 Total equity (excluding minority interests) ($'000) 1,606,806 1,486,904 Debt-equity ratio (excluding minority interests) : Gross (%) 134 141 Net of cash (%) 110 108 Total equity (including minority interests) ($'000) 1,832,433 1,693,206 Net debt-equity ratio (including minority interests) (%) 96 95 100

RISK MANAGEMENT Better risk management tools are developed to mitigate impact of risks on the creation of shareholder value Risk Management Keppel Land's risk management efforts are focused on strengthening existing activities to ensure that risks accompanying the Group's business activities are well mitigated. In 2004, initiatives were taken to raise awareness and training was carried out throughout the year for frontline staff, particularly postees assigned to overseas offices and headquarter staff involved in risk management. Training was directed at establishing a standard of professionalism and excellence in undertaking operational risk management activities, inculcating a better understanding of the components of Keppel Land's risk management framework and in-depth learning of new techniques. Significant effort was also directed at engaging external consultants to provide training to our risk management staff. Leveraging the Group's existing internal knowledge portal, an online website dedicated to risk management was developed to provide a common source of information for all staff. Through this website, staff will be updated on the key risks faced by the Group. They can also access articles and internal presentations pertaining to risk management to enrich their knowledge in this field. A Quantitative Approach As a step towards the development of better risk management tools, various methods were explored during the year including the search and analysis of the best and most sophisticated risk management practices used by financial institutions such as value, earnings and cash flow-at-risk measures, and risk dashboards. A pilot project to quantify the Group s risks was conducted using an internally developed model that 101

accounted for the probability and impact of risks on the creation of shareholder value. The pilot project covered residential development projects that contributed to the Group's profitability and led to the identification of key risk indicators to be used by each project for close monitoring of risks and for acting as early warning signals. The model will quantify the probability and impact of these risk factors on the Group's earnings, cash flows and balance sheet, thereby providing a greater sense of certainty when making new investment decisions. Further development of this model is planned, which will create a comprehensive framework for the identification and monitoring of risk indicators and risk quantification. executed separately to protect vital business and information resources for many years. To better integrate existing and new elements of business continuity, a committee has been established to manage this risk. The committee has set in motion the development of a Business Continuity Plan to ensure minimal disruption to the Group's business based on scenarios that will pose as threats to the Group's normal operations. When the business continuity task force completes the plan, Keppel Land will have an integrated guide to handling crises, including the provision of vital public and management communication, and the recovery of the Group's business to operational status within the shortest possible time frame. Developing a Business Continuity Plan Traditionally, risk management has focused on the conventional business risks that influence shareholder value. Following the emergence of SARS and terrorist threats over the last few years, Keppel Land has decided to broaden its focus to include the management of continuity risks of its core business activities should any of these unfortunate events occur. Elements such as Information Technology (IT) Disaster Recovery and Security Plans had been established and Focus for 2005 For 2005, greater efforts will be undertaken to strengthen the Group s management of strategic risks and to continue the development of quantitative risk management tools. Efforts will be directed at developing contingencies to the Group s strategic initiatives so that the Group is better able to achieve its objectives. With quantitative risk management tools, the Company will be able to prioritise its risks and focus on the key drivers of risks. 102

Keppel Land conducted a comprehensive risk assessment Group-wide when it adopted a formal and systematic approach to risk management. It identified 30 risks that would affect the Group in achieving its strategic objectives. These risks were grouped and consolidated into a register of top risks, of which there were 11. These top 11 risks are reviewed annually. The responsibility for management involved in mitigating each risk has been identified and the status of each risk is reported to the Board of Directors and Audit Committee every quarter. Summary of the top 11 risks : Capital allocation risks The risk of not balancing resources to optimise performance Regulatory and political risks Adverse changes in government and regulations that may threaten business operations Partnering risks The risk of entering into ineffective partnerships Product development and customer want risks Failure to be aware of and to keep up with the changing needs of customers and the risk of developing products that do not meet market requirements Investment evaluation risks Insufficient information, omission and misalignment of risks putting capital resources at risk Project management risks Unprofitable projects caused by inadequate control and monitoring Human resource risks The risk of not having the right people to execute the business objectives and strategies IT risks The risk of not having sufficient information at the right time and appropriate infrastructure to support the flow of information Financial risks The risk associated with changes in interest rates and foreign exchange rates Shareholder relationship risks The risk of declining shareholder confidence which will affect the Group's reputation and share valuations Business interruption and catastrophic loss risks Business continuity risk due to unforeseen events beyond the control of management 103

BUSINESS DYNAMICS AND RISK FACTORS The Group's strategy for enhancement of shareholder value is to focus on developing properties for sale and on property fund management. Besides the Singapore property market, the Group is expanding into the growing property markets of China, Thailand, Vietnam, Indonesia and India where there is still insufficient good quality housing to satisfy the needs of their growing middle class populations. non-restrictive lending laws and favourable interest rates for property developers and for end-purchaser financing, and also more transparent and enforceable laws for land mortgages to facilitate bank financing; favourable tax laws and double tax treaties with Singapore to minimise taxes on profits made and repatriated to Singapore; Recovery of the Singapore economy is on track, with GDP growth rate of 8.4% for the full year of 2004. Demand for office and residential sectors is, therefore, expected to increase. Coupled with the limited supply of new prime office space averaging 1 million sf a year for the next few years, office capital values and rental rates should be underpinned. Similarly, there are signs of improved demand for private housing in Singapore, as the price growth for the residential sector enjoyed its third successive quarterly increase in the fourth quarter in 2004 after 14 quarters of negative growth. proper management of interest and currency rates exposures. The Group's property fund management business will develop further for recurring fee-based incomes. Efforts are continually being made to identify and invest in projects that will give the expected rates of return required by investors. Regionally, the success of the Group's overseas efforts will depend on the following factors: continued growth of regional property markets; availability of residential sites at competitive prices for housing; availability of good sites at competitive prices in populous cities for township developments so that economies of scale can be achieved to provide quality and affordable urban housing; 104

CRITICAL ACCOUNTING POLICIES As required by the Companies Act, the Company's consolidated financial statements have been prepared in accordance with Singapore Financial Reporting Standards. The following are the key accounting policies: assets (eg hotels), the estimated future cash flows are discounted to their present value using a discount rate that reflects current market assessments of the time value of money and the risks specific to the assets. Revenue and Profit Recognition For Singapore trading properties, profit recognition upon signing of sales contracts is 20% of the total estimated profit attributable to the actual contracts signed. Subsequent profit recognition is based on the stage of physical completion. For overseas trading properties, profit recognition during development is the direct proportion of total expected project profit attributable to the actual sales contracts signed, but only to the extent that is related to the stage of completion. The more conservative percentage of completion basis for overseas trading properties is appropriate as the markets there are less matured and risks are greater. Asset Impairment At each balance sheet date, a review is made of the following assets to assess whether or not their carrying values will be recoverable: Reversal of impairment loss recognized previously is made to the extent that there is an indication that the impairment loss no longer exists or has decreased. In implementing the above accounting policy for asset impairment, the Company is mindful that the assessment of asset values calls for careful judgement. Leasehold Properties The applicable accounting standard requires all leases to be depreciated over their lives. However, the Group does not depreciate leasehold properties with unexpired tenures of over 20 years. These leasehold properties are instead valued by professional valuers or in-house valuers at each balance sheet date, and are assessed as to whether there is an impairment in their carrying values. The impairment, if any, is treated in manner explained above. This accounting policy is considered more appropriate in reflecting their values and any decline in the accounts. freehold and long leasehold investment properties trading properties fixed assets If any indication exists to suggest that their carrying values exceed the estimated recoverable amounts, the assets are written down appropriately. Investment properties and trading properties are valued based on the advice of external professional valuers or in-house valuers. In assessing value in use for fixed 105

ASIAN ECONOMIC AND PROPERTY ROUND-UP Asia remains the fastest growing region in the world Global and Asian Economies Recovery across the Board World economic growth accelerated at a fast pace in 2004, marking the cyclical recovery of the global economy after three years of slow growth. The global economic engine was predominantly revved by China's strong GDP growth of more than 9% over the last two years, and buoyant household consumption in the US. The Economist Intelligence Unit (EIU) estimated that the world economic growth was 4% in 2004, compared with 2.6% growth in 2003. Asia remained the fastest growing region in the world, spearheaded by the phenomenal growth in China. China's robust economic growth was underpinned by rising demand at home and abroad. In 2004, China accounted for more than 20% of the increase in world trade volumes. Its share of world exports has also doubled from 2.9% to 5.8% between 2000 and 2004. To manage fears of overheating, the Chinese government implemented administrative measures and credit controls to rein in excess investments and consumption to avert a hard landing. As the measures filtered through the system, the economy slowed down to a less frenzied pace as the growth of fixed asset investment, industrial output and consumer and producer prices moderated. Japan saw its economic recovery stalled in the fiscal year ending 31 March 2005. On a seasonally-adjusted basis, the world's second largest economy contracted for three consecutive quarters, shrinking by 0.1% in the last quarter of the year after a 0.3% and 0.2% fall in the two previous quarters respectively. However, the Japanese government is optimistic that economic expansion will resume from the latter half of 2005, underpinned by growth in exports and consumption. For Asia ex-japan, the positive knock-on impact of a strong Chinese economy has provided an economic uplift. The more mature economies of Singapore, South Korea, Hong Kong and Taiwan grew between 4.6% and 8.4% in 2004. Elsewhere in the region, GDP expanded by 7.1% in Malaysia, 6.1% in Thailand and the Philippines, and 5.1% in Indonesia. Consumer spending continued to make significant contribution in all these economies, while fixed investment spending has recovered substantially since late 2003. On the political front, 2004 was also an eventful year for Asia, with numerous elections held smoothly in several countries. Most notable was the peaceful transition of leaderships in India and Indonesia. The more stable political climate has raised hopes of a new era of growth and stability in these two countries. 106

Growth to Continue Albeit at Slower Pace Global economic growth is poised to moderate in 2005. According to EIU, world growth is forecast to ease to 3% as economic activity slows down in the US, Japan and China, and global demand for high-tech electronics products weakens as the technology cycle shifts to a lower gear. However, this relatively benign outlook is subject to risks. Increasing concerns over the imbalances in the global economic system associated with the twin deficits in the US, overheating in China, the persistently high and volatile crude oil prices, the continued weakness of the US dollar and the ensuing pressure on Asian currencies to appreciate pose uncertainty to international growth. Given Asia's heavy dependence on external demand and the prospects of slowing exports, Asian countries will have to focus on expanding domestic demand to make up for a possible external slowdown. The recent tsunami catastrophe that hit Asia is not expected to have a major dent on the region's economic growth in 2005. Analysts expect GDP growth for the regional economies to be knocked off by 0-2.5%. Thailand is believed to suffer the most given the damage to its tourism trade. As for Indonesia, reconstruction of the tsunami-hit Aceh region on the Sumatra Island may create a positive boost to the country's economic activity. This calamity is unlikely to diminish the attractiveness of Asia as a region with vast investment and trade opportunities. Singapore Economy Strong Recovery The Singapore economy made a remarkable turnaround to expand by an impressive 8.4% in 2004, in contrast to 1.4% in the previous year. This is the highest growth rate since the 1997/98 Asian financial crisis. Although the figures were off a low base due to the onset of SARS in 2003, the pace of recovery was still noteworthy. The global economic upturn, driven by robust electronics demand, led to strong external demand for Singapore's goods and services. Singapore's exports rose by 20.9% in 2004 compared with 12.1% in the previous year. Economic growth to moderate after a strong 2004 Real GDP Growth % 5 4 3 2 1 0-1 1999 2000 2001 2002 2003 2004E 2005F The US Japan World European Union Asia & Australasia Source : EIU and official statistics 107

World economies are poised to remain in an expansionary state over next few years GDP Growth (%) 9 8 8.1 8.0 CPI Change (%) 7 6 7 6 5.5 5.9 6.9 6.4 5 4 4.2 4.1 5 4 3.8 4.7 4.2 3 2.8 2.5 3.1 2.7 2.7 3 2 1 2.7 3.3 2.2 2.1 1.6 1.1 3.3 2 1 0 2.0 1.9 0.6 0.0 0.5 1.7 0.2 1.5 0 The US EU 25 Japan China S pore India Taiwan S Korea -1 The US EU 25-0.6 Japan China S pore India Taiwan S Korea Source : EIU and official statistics 1999-2003 2004-2008 Source : EIU and official statistics 1999-2003 2004-2008 108 Business confidence and consumer sentiments also improved, which in turn encouraged greater investments and higher consumer spending at home. The manufacturing sector, the pillar of the Singapore economy, grew by 13.9% in 2004. Growth was mainly driven by the electronics and biomedical manufacturing industries, which expanded by 14.9% and 25.7% respectively. The services sector also performed well, expanding by 7.5% with the rebound of international travel and tourism. However, the construction industry remained weak, contracting by a further 6.5% during the year. Looking ahead, the government has pegged 2005 GDP growth forecast at 3-5%, in anticipation of slower global economic growth. However, Singapore will benefit if the electronics cycle turnaround in the second half of 2005 pans out. Asian Property Markets Growing Demand for Asian Real Estate With Asia's solid economic growth in 2004, the prime office sector across the region experienced higher demand and rental rates during the year. Most of the demand came from the financial and services sector as business activities improved. Residential demand and prices also recovered in most Asian markets, driven by improved economic conditions, relatively low interest rates and healthy demographic trends. The growth momentum seen in these markets are expected to continue into 2005. Property funds made headlines with a slew of property acquisitions while real estate investment trusts (REITs) took much of the limelight. The renewed interest in Asia's real estate sector was spurred on by the rebound in property prices across the region. The relatively high property yields in Asia have attracted property funds, pension funds and institutional funds from the US and Europe to invest in Asian real estate assets. A recent global survey carried out by DTZ revealed that Japan, China and Singapore will be the most favoured markets in Asia for property investors over the next few years. South Korea and Malaysia were also cited as major investment destinations, especially for Asia-Pacific and European investors. Investor demand for offices and retail properties remains strong. Japan has enjoyed a steady inflow of money from foreign investors as its properties are still relatively underpriced as compared to the US and Europe. A growing number of companies are also establishing unlisted real estate funds to invest in Japanese property assets. In Hong Kong, foreign investment funds are eyeing high-end residential and prime office properties for long-term rental returns. China has also attracted attention from foreign real estate funds. The credit crunch on local developers has opened a window of opportunity for foreign property funds to acquire projects or enter into joint venture with locals strapped for cash.

Broad-based recovery but economy is exposed to high volatilies in manufacturing % 20 Investment and consumption are trending up while unemployment and inflation rates are fairly steady % 15 15 10 10 5 5 0 0-5 -10-5 -15 1999 2000 2001 2002 2003 2004-10 1999 2000 2001 2002 2003 2004 GDP Financial Services Manufacturing Business Services Unemployment Private Consumption Inflation Rate Gross Fixed Capital Source : Ministry of Trade and Industry Source : Ministry of Trade and Industry In Singapore, property funds and REITs provided a major boost to the property investment market in 2004. Encouraged by the recovery in the Singapore economy and bottoming of the property market, Singapore REITs (S-Reits) embarked on an aggressive acquisition spree, snapping up about $2.5 billion worth of properties during the year. These acquisitions accounted for almost half of total investment sales in 2004. Mounting Appetite for REITs Singapore is at the forefront of a boom in Asian REITs. Since its inception in June 2002, the S-Reit market has blossomed with the listing of five REITs on the local stock exchange, with two Reits making their debut in 2004. These S-Reits offer investors a diverse range of property assets encompassing retail, office, industrial and mixed developments in Singapore and Hong Kong. As of end-february 2005, the total market capitalisation of S-Reits amounted to $8.3 billion compared with $3.2 billion as at end-2003. As evident from the appreciation in their stock prices and trading volumes since their debut, S-Reits have been well received and highly demanded by both local and foreign investors. Given the relatively low interest rates in the region, investors are generally attracted by their high dividend payouts at relatively low risk levels. On average, S-Reits have appreciated by about 22% in value in 2004. S-Reits have rewarded unitholders with good dividend yields ranging from more than 4% to as high as 8%. However, yields have compressed to below 6% for these S-Reits on the back of strong demand due to their attractive returns relative to alternative investment instruments such as government bonds and bank deposits. The recent measures as announced in the 2005 Budget, which include a 5-year waiver on the 3% stamp duty for the transfer of Singapore properties into listed REITs, the removal of most qualifying conditions for tax transparency and the reduction of withholding tax from 20% to 10%, will provide a further boost to the REIT Acquisitions Since Listing Total Portfolio Size No. of Acquisition Value (No. of S-Reits Date of Listing Properties Value ($b) at End-2004 ($b) Properties Held) CapitaMall Trust 28 Jun 2002 2 0.96 1.85 5 Ascendas REIT 5 Nov 2002 26 1.11 1.68 34 Fortune REIT 28 Jul 2003 - - HK$3.0b 5 CapitaCommercial Trust 11 May 2004 - - 2.01 7 Suntec REIT 9 Dec 2004 - - 2.11 2 109 Source : CB Richard Ellis

market. These measures make it more attractive for property owners to sell their assets into REITs. More S-Reits are poised to hit the market in 2005. The increasing maturity of the Singapore REIT market may also draw more offshore REITs to be listed here after the successful listing of Fortune REIT, which owns five suburban shopping malls in Hong Kong. Beyond Singapore, more Asian countries are actively gearing up to develop their own REIT markets. Hong Kong and Taiwan, for instance, are getting ready to launch their first publicly listed REITs. Similarly, Malaysia and Thailand are also getting into the act by cutting red tape and creating tax incentives to encourage REIT listings. However, Hong Kong recently hit a snag when a US$3 billion REIT, established to hold a large portfolio of integrated retail and carpark facilities from the Hong Kong Housing Authority, was forced to shelve its listing in December 2004 following litigation. Taiwan's first-ever REIT listing made its market debut in March 2005. Fubon No.1 REIT has an issue size of NT$5.8 billion (US$187 million). Proceeds raised from its initial public offering will be used to acquire three quality buildings that are currently fully occupied. Annual returns for investors is estimated at about 4% on 100% payout ratio of rental income. The success of Fubon No.1 REIT is expected to pave the way for more Reits to seek listing on the Taiwanese bourse. To encourage the development of its REIT market, the Malaysian government has announced tax exemption incentives for income distributed to unitholders and corporate tax of 28% to be levied on undistributed income. Malaysian REITs are also allowed to own properties located overseas, which will pave the way for Malaysian companies to sell some of their overseas properties to REITs. Compared to the US and Australia, the Asian REIT market is still in its early stage of development. Japan and South Korea pioneered the market about three years ago at a time when banks were eager to sell properties that were tied to bad loans. There are currently about 15 REITs in Japan and eight in South Korea. Japan accounts for the lion's share of the Asian REITs market, which is worth more than US$20 billion. REITs have since become a sought-after asset class in Asia as investors seek to own a stake of the region's booming property markets. Compared to the broader equity markets, the market capitalisation of Asian REITs holds enormous room for further expansion. REITs have reshaped the property sectors in the US and Australia, and may have the same effect in Asia. Strong demand for S-Reits led to yield compression** (%) Yield gaps are narrowing (%) 6 8 8.0 5 5.1 7 7.1 6.5 6 5.8 4 3 3.3 3.1 3.1 5 4 4.7 3.8 5.1 4.0 4.4 4.5 2 1.6 2.0 1.3 1.5 3 2 1 0.7 0.9 1 0 CMT A-REIT Fortune CCT* Suntec ** Against 10-year Singapore govemment bond yield 0 CMT A-REIT Fortune CCT* Suntec *Based on annualised distribution Current Yield Spread Yield Spread at IPO Current Yields Yields at IPO Source : SGX, Company announcements and prospectuses Source : SGX and Company announcements 110

Performance of REITs in Japan, South Korea and Singapore As at End-Feb 2005 % % ^Total Closing Market Cap Equity Dividend Returns Country REIT Currency Price (US$ mln) Market Yield # 2004 (%) Japan Nippon Building Fund Inc Yen 880,000 3,078.1 3.7 31.2 Japan Real Estate Invt Co Yen 883,000 2,200.1 3.3 31.2 Japan Retail Fund Invt Co Yen 815,000 1,718.3 3.8 29.5 Orix JREIT Inc Yen 654,000 1,096.8 4.4 35.3 Japan Prime Realty Invt Yen 294,000 1,493.2 4.3 15.3 Premier Investment Co Yen 733,000 554.9 3.7 39.9 Tokyu REIT Inc Yen 681,000 926.7 4.0 33.9 Global One REIT Yen 900,000 655.5 4.1 59.6 Nomura Real Estate Office Fund Yen 749,000 1,327.9 3.3 46.5 United Urban Invt Corp Yen 687,000 1,053.4 4.6 47.9 Mori Trust Sogo REIT Inc Yen 895,000 1,372.3 3.5 17.8 Nippon Residential Investment Yen 662,000 647.1 4.6 34.8 TGR Investment Inc Yen 385,000 107.0 5.0 4.9 Frontier Real Estate Investment Yen 660,000 695.7 3.1 14.6 New City Residence Investment Yen 589,000 423.3 - - Sub-total / Average 17,350.3 0.49 3.9 32.1 S Korea Korea Real Estate Invt Trust Won 690 123.5 - -11.1 Kyobo-Meritz First CR-REIT Won 5,380 89.8 7.7 16.3 Kocref CR-REIT 1 Won 6,410 169.5 7.9 36.7 Kocref CR-REIT 2 Won 5,050 56.2 9.0 11.6 Realty Korea CR REIT Co Won 5,850 76.8 7.2 22.0 Kocref CR-REIT 3 Won 5,290 71.5 6.9 17.0 Ures-Meritz First CR-REIT Won 5,460 54.3 8.8 15.1 MCO CR-REIT Won 5,760 87.4 4.2 17.4 Sub-total / Average 728.9 0.16 7.2 19.0 Singapore CapitaMall Trust S$ 2.02 1,494.9 4.7 29.7 Ascendas REIT S$ 1.98 1,412.8 3.8 54.3 Fortune REIT HK$ 6.60 402.5 5.1 36.1 CapitaCommercial Trust S$ 1.51 779.0 4.0* 11.0 Suntec REIT S$ 1.29 1,021.1-11.0 Sub-total / Average 5,110.4 1.78 4.4 28.7 Asia Total / Overall Average 23,189.6 0.54 3.9 32.1 # Dividend yield is computed using closing price as at 28 Feb 2005. ^ Total returns are derived by adding dividends for the year and the difference in unit prices for the year, and dividing the sum by the unit price at the beginning of the year. * Based on annualised dividends. 111 Source : Bloomberg and in-house estimates

OPERATIONS AND MARKET REVIEW Caribbean at Keppel Bay redefines waterfront living

Singapore Residential New Launches Urbana Commanding a breathtaking view of the city, the 36-storey Urbana will be the tallest condominium in the River Valley district. The 126-unit development comes with private lift lobbies and offers 2- to 4-bedroom units and penthouses with unit sizes ranging from 1,000 to 3,200 sf. Full condominium facilities include a swimming pool, a tennis court and a clubhouse. Within close proximity to the Somerset MRT station and just a walking distance from the vibrant pubs lined along Mohamed Sultan Road, Urbana is close to the bustling Orchard Road shopping belt and local delights in the River Valley vicinity. It is also a short drive away from the Central Business District (CBD). Since its soft launch in early 2004, 76 units or 79% of the 96 launched units have been sold as of end-february 2005. Caribbean at Keppel Bay Caribbean at Keppel Bay is a waterfront development that charms buyers with impeccable sea views, water channels that flow right up to the homes and lush greenery. It is also a stone's throw away from the retail and entertainment hub at the HarbourFront. The development is easily accessible via major expressways and is a five minutes' drive from the CBD. Caribbean at Keppel Bay is one of the first connected homes in Singapore that come with state-of-the-art network infrastructure, home automation system and a web-based condominium portal. Wired to a data network with high-speed connections to the Internet and through network cameras installed at common areas such as the playground and swimming pools, residents can keep an eye on their children and be aware of activities around the development. Every home is also equipped with a wireless webpad that functions as a mobile intercom unit to help screen visitors and control the private lifts and a condominium portal that allows residents easy access to a host of condominium and home management services. Comprising 969 luxurious 2- to 4-bedroom apartments and penthouses, Caribbean at Keppel Bay received its Temporary Occupation Permit (TOP) in July 2004. A second release of 135 units launched in August have been fully taken up. As at end- February 2005, 46% of the entire development has been sold. 113

1 Meanwhile, a cable-stayed bridge linking to Keppel Island, which will house a marina club, will be constructed. When completed, the cable-stayed bridge will be an icon for the entire Keppel Bay precinct. Upcoming Launches Subject to market conditions, Keppel Land intends to launch more than 800 units in 2005. Potential launches include Park Infinia at Wee Nam in Newton, The Belvedere along Meyer Road and a project at Devonshire Road. 2 1. With a total of 486 apartments, Park Infinia at Wee Nam will be one of the largest condominium developments in the Newton area 2. Caribbean at Keppel Bay is Singapore s first and only seafront residential development to receive TOP Park Infinia at Wee Nam Park Infinia at Wee Nam is located at the junction of Wee Nam Road and Keng Lee Road, and is close to the Newton MRT station and the Orchard Road shopping belt. The development will comprise 486 apartments with full condominium facilities that will include a swimming pool, tennis courts and a gymnasium. The apartments will come in 1- to 4-bedroom units and exclusive penthouses, with floor areas ranging from 520 to 3,300 sf. When completed, Park Infinia at Wee Nam will be one of the largest condominium developments in the Newton area. Devonshire Road Project A 30-storey twin-tower condominium development with modern architecture design will sit on a 7,400-sm site at Devonshire Road. The development is conveniently located with the Somerset MRT station and the Orchard Road shopping belt in close proximity. 114 The development will comprise 163 units with sizes ranging from 540 sf for studio units to 1,500 sf for 4-bedroom units. It will have full facilities, including a swimming pool, an Olympic-length pool, a tennis court, a gymnasium, a clubhouse, a children's play area and barbecue pits.

Possible Launches in 2005 Project Location Units to Launch Cluny Hill bungalow plots Cluny Hill 3 Caribbean at Keppel Bay Keppel Bay Drive 524 Urbana River Valley Road 50 Park Infinia at Wee Nam Wee Nam Road 486 The Belvedere Meyer Road 167 Devonshire Road project Devonshire Road 163 The Belvedere Located along the prestigious Meyer Road, The Belvedere offers panoramic breathtaking sea views, dramatic city skyline and lush surroundings. Within close proximity to the future Old Airport Road MRT station, The Belvedere enjoys convenient access to the Changi airport and the city via expressways. Besides fun and recreation at East Coast beach and Katong Park nearby, the best of historic Katong and the sidewalk cafes at Siglap that are famous for their local delicacies are also within reach. Some of the popular schools located in the vicinity include Dunman High, Tanjong Katong Girls' and Chung Cheng High. Comprising 167 exclusive condominium units, the development offers 2- to 3-bedroom apartments and penthouses with sizes ranging from 1,000 to 2,800 sf. Besides full condominium facilities which include a swimming pool, a tennis court and a clubhouse, the development is also equipped with private lift lobbies, quality finishes, full-height glass windows and broadband facilities. Exisiting Residential Properties Nassim Woods Nassim Woods is a luxurious condominium located in the prime residential area of Nassim Hill. The exclusive development offers for lease 35 units of 3- and 4-bedroom apartments and penthouses, with unit sizes ranging from 1,970 to 6,400 sf. The development is surrounded by a distinguished neighbourhood of foreign embassies, country clubs and the Singapore Botanic Garden. Nassim Woods has always been popular with expatriates from Europe and the US. It is close to 70% occupied as of end-february 2005. Freesia Woods Located in the quiet and tranquil Sunset Way, Freesia Woods is only a stone's throw away from Holland Village, the city and a wide range of amenities. Prestigious schools and institutions nearby include Henry Park Primary School, Pei Hwa Presbyterian Primary School, Methodist Girls' Primary School, Singapore Polytechnic, Ngee Ann Polytechnic and the National University of Singapore. The 129-unit freehold condominium development is designed with efficient layouts, private lift lobbies, floor-to-ceiling windows and smart home features to cater to modern living. It offers 1- to 4-bedroom units, with floor sizes ranging from1,023 to 2,680 sf. The development has a wide range of facilities, including the clubhouse, swimming pools, a tennis court, exercise stations, a reflexology path and a jogging track. Re-launched in June 2003 upon its TOP, the development is 62% sold as of end-february 2005. The Linc Nestled within a prime district, The Linc at Lincoln Road offers 51 exclusive apartments of 1- to 3-bedrooms, with sizes ranging from 646 to 1,851 sf. Its design is simple contemporary, with bright airy living rooms fronted by floor-to-ceiling windows. Lifestyle facilities include a main pool, a children's pool, a gymnasium, a barbecue area, a children's play area and a basement carpark. The Linc enjoys easy access to the Newton MRT station and is just minutes away from the shopping and entertainment belts along Novena Road and Orchard Road. Many good schools are also nearby such as Raffles Girls' Secondary, Anglo-Chinese (Barker) and St Michael's Primary. Prestigious clubs like The Tanglin Club, The American Club, Raffles Town Club and 115

ABN AMRO has pre-committed about 160,000 sf of office space in One Raffles Quay at Singapore s New Downtown 116 The Pines are also within close proximity. About 57% of the units have been sold as of end-february 2005. Mixed Development Bugis Junction An integrated development comprising office, retail and hotel elements, Bugis Junction has garnered several awards since its completion. In 2004, Parco Bugis Junction won the Singapore Retailers Association's Excellent Effort in Mall Maintenance Award. This award recognised the mall operator for its advertising and promotional efforts, maintenance care and tenant relationship. Parco Bugis Junction was also voted one of the top three shopping centres for Best Christmas Shopping Experience organised by The Association of Shopping Centres Singapore. During the year, InterContinental Singapore was rated the 7th World's Best Business Hotel by Business Traveller magazine. Bugis Junction continued to perform well in 2004. The retail and office segments achieved near full occupancy, while InterContinental Singapore achieved more than 80% occupancy during the year compared to 42% in 2003 due to the outbreak of SARS and the Iraq war. Integrated Resort In February 2005, Keppel Land and Harrah's Entertainment - one of the largest gaming and entertainment companies in the US - jointly submitted concepts to the Singapore Tourism Board on the development of world-class Integrated Resorts at Sentosa and Marina Bayfront. Office One Raffles Quay Situated on a 1.14-ha waterfront site at Marina Boulevard, One Raffles Quay is a large-scale office complex that is currently under construction. Jointly developed by Keppel Land and two Hong Kong developers, Cheung Kong (Holdings) and Hongkong Land, the landmark development comprises two office towers linked by a podium, yielding a total of about 1.3 million sf of lettable space. The 50-storey North Tower will offer 767,000 sf of office space and with a typical column-free floor plate of about 18,000 sf. South Tower, a 29-storey building offering 565,000 sf of column-free space with large regular floor plates of about 30,000 sf that are popular among financial

institutions, is linked to the North Tower by landscaped plaza. ABN AMRO and Deutsche Bank have pre-committed a total of about 300,000 sf or 25% of space in the entire development. One Raffles Quay is expected to be completed in 2006. This landmark development will showcase several key elements of infrastructure such as a hub car park, an underground air-conditioned retail link that leads to the Raffles Place MRT station, a District Cooling System plant and an elevated travellator system. The HarbourFront Office Park The HarbourFront Office Park is a joint development by Keppel Point (a joint venture between Keppel Land and Keppel Corporation) and The HarbourFront (a joint venture between Mapletree Investments and PSA Corporation). Located next to the HarbourFront MRT station, the HarbourFront Office Park has been transformed into a vibrant commercial and recreational hub. Comprising 18-storey twin office towers - Keppel Bay Tower and HarbourFront Tower One - and a retrofitted cable car tower known as HarbourFront Tower Two, the development has a total lettable area of about 927,000 sf. The three office towers have attracted international companies such as ExxonMobil, Du Pont, UBS AG, NYK Group, Polo Ralph Lauren, Kodak, Canon, BP, BMW, Kraft, and Renesas among its major tenants. As of end-february 2005, Keppel Bay Tower and HarbourFront Tower One achieved occupancy rates of more than 80%. Market Review Residential Market Rebound on Better Economic Conditions Rebounding strongly from the SARS outbreak, the Singapore economy registered a real GDP growth of 8.4% in 2004 after a 1.4% growth in the previous year. With the improved economy and job market, strong buying interest was seen in the affordably priced mass market, especially in the third quarter of 2004 despite the traditionally quiet seventh lunar month. The higher end market also chalked up impressive sales as foreign buyers returned to take advantage of the property market recovery. A slew of launches in the last few months of the year, coupled with better market sentiments, saw new home sales hitting 1,774 units in the last quarter of 2004. This brought the total number of new units sold by developers in 2004 to 5,785 units, a 12% increase from the 5,156 units sold in 2003. Home prices had started to recover, with the URA private property price index rising by 0.9% in 2004 after four years of decline. The government announced in June 2004 that the Reserve List would be a permanent feature of the Government Land Sales programme, providing the market with the flexibility to adjust supply in response to demand changes. For the first half of 2005, there are seven residential sites, three "white" sites and five mixed commercial/residential sites under the Reserve List, with the potential of generating about 3,300 private homes. In March 2005, tender is called for the "white" site at the New Downtown for the Business and Financial Centre (BFC) after a developer undertakes a minimum bid price for the site. Residential 2004 2003 % Y-o-Y Change Demand (No. of New Units Sold) 5,785 5,156 12.2 Supply (No. of New Units Available) 5,881 5,216 12.7 Ave. Price ($ psf) : Condominiums - Suburban 99-year Leasehold 430 430 - - Suburban Freehold 535 535 - - Prime 750 750 - - Luxury 1,345 1,345 - Source : URA, CB Richard Ellis 117

Parco Bugis Junction won the Singapore Retailers Association s Excellent Effort in Mall Maintenance Award for its advertising and promotions, mall maintenance and tenant relationship efforts 118 Market Review (cont d) Office Office Market Cycle Has Turned Around The recovery of the Singapore office market since fourth quarter of 2003 was sustained through 2004. Encouraged by the historically low rents in prime office buildings, the flight-to-quality factor resulted in prime office rents rising for the first time since end-2000 in the second quarter of 2004. Prime office rents edged up by 10% to $4.40 psf in the last quarter of 2004 from $4.00 psf as at end-december 2003. After 10 consecutive quarters of contraction in demand for office space since the fourth quarter of 2001, the island-wide office occupancy rate improved to 84% as at end-2004 compared with 82.1% a year ago, as demand turned positive in the last nine months of the year. The 3.55-ha BFC site, which has been on the Reserve List since May 2004, has been released for tender in March 2005 after a developer committed a minimum bid price of about $778 million or $165 psf per plot ratio based on its maximum gross floor area (GFA) of about 4.7 million sf. The tender, which will close on 21 June 2005, is likely to attract competitive bids from major developers in Singapore and overseas. The successful bidder will have the flexibility of paying for the site in phases over a period of 10 years and completing the development in 18 years. At least 60% of the GFA is designated for offices, with the remaining 40% for other uses such as retail, hotel, residential, entertainment and recreation. The sale of the BFC site is not expected to impact the office market in the next three to four years, as the potential supply of almost 1.1 million sf GFA from Phase One of the BFC will probably come onto the market in 2009 at the earliest. New office supply over the next few years will be very limited averaging less than one million sf per annum. This is below the 10-year average annual new supply of 2.3 million sf and will help to underpin the overall recovery of the office market. Integrated Resort Positive Response to Submission of Concepts With the rapidly changing tourism landscape in the region, the government is considering the development of an integrated resort (IR), which may include gaming facilities, to enhance Singapore's competitiveness and reputation as a premium destination for leisure and business travellers. It is also envisioned that the IR will generate significant economic spin-offs for the country, creating jobs and increasing tourism receipts and tax revenue. The government received a total of 19 concept plans for the IR. A decision is expected to be reached on whether to proceed with the IR development by mid-april 2005. In the event that the IR is given the official go-ahead, parties that submit concepts may be invited to submit detailed proposals at a later stage. The proposed IR is envisaged to be an iconic lifestyle development with a comprehensive range of world-class amenities, which may include hotels, convention facilities, retail and dining, entertainment shows, theme attractions and a casino.

Office 2004 2003 % Y-o-Y Change Demand (Mln sf) 1.07-1.13 nm Supply (Mln sf) -0.33 0.48 nm Ave. Occupancy Rate (%) 84.0 82.1 2.3 Ave. Prime Rental Rate ($ psf/mth) 4.40 4.00 10.0 Ave. Capital Value ($ psf) 980 980 - Source : URA, CB Richard Ellis Office Demand and Supply Year Annual Supply Annual Demand Real GDP Growth (mln sf) (mln sf) (%) 1998 2.71 0.30-0.9 1999 1.57 1.67 6.9 2000 2.78 4.22 9.7 2001 1.22 1.12-1.9 2002 2.46-0.93 2.2 2003 0.48-1.13 1.4 2004-0.33 1.07 8.4 Source : URA, Ministry of Trade and Industry Property Fund Management Multi-product Platform for Growth During the year, Keppel Land continued to grow its property fund management business conducted through its subsidiary Alpha Investment Partners (Alpha). In 2004, Asia No. 1 Property Fund was actively investing the funds that it raised in its initial closing. The fund had since invested more than 60% of its available capital in seven properties in Japan, South Korea, Hong Kong and Singapore. These investments comprised office, retail and residential properties. cornerstone investors in November 2004. Unlike Asia No.1 Property Fund, which is a fund with an objective to achieve a higher opportunistic return and with a higher risk appetite which commensurates with its targeted return, the Alpha Core Plus Real Estate Fund's objective is to achieve stable long-term returns by investing in institutional grade, income-producing properties in matured Asian economies. The 10-year life low-risk fund has a target total return in the low teens and aims to provide investors with an attractive dividend yield. It will not invest in development projects nor will it invest in the less developed markets in Asia. Investor interest in Asian real estate improved in 2004 over 2003, which marked the war in Iraq, terrorism and the outbreak of SARS. In particular, investors from Europe, Middle East and Australia have shown keen interest to invest in Asia. Leveraging its good understanding of investors' preference and capitalising on increasing market opportunities, Alpha successfully established its second fund, the Alpha Core Plus Real Estate Fund, with the commitment of two institutional During the year, Alpha continued to grow with an emphasis on establishing a multi-product platform to cater to varying investment preference and risk appetite of investors. The main focus of Alpha's business processes is to make sure the interests of all investors are looked after. These processes include deal flow management, deal allocation procedure, investment underwriting, asset plans and budgetary 119

Alpha achieved $275 million at the first closing of its Alpha Core Plus Real Estate Fund which will invest in Japan, Hong Kong, Singapore and South Korea process. Alpha has also implemented the web version of MRI real estate information system for efficient and timely management and performance reporting of multi-country property portfolios. Research is an integral part of Alpha's business platform. It supports AIpha's investment decisions and enables it to be pro-active in identifying market trends and investment opportunities. Alpha combines quantitative econometric forecasting with local market insights of its professionals to develop proprietary house views on real estate markets. of the respective funds. Alpha believes superior investment performance can only be achieved through a combination of research-based investment strategy, which is founded on sound local market knowledge, rigorous investment analysis, efficient tax structuring and competitive financing, and active asset management that focuses on value creation. Hence, Alpha's main goal is to ensure that the funds under management meet or exceed their performance targets. Encapsulating all these is Alpha's goal to be a performance-oriented and investor-centric organisation. 120 Foreign funds are increasingly drawn by investment opportunities in Japan and South Korea, two of the most difficult markets to penetrate. To better serve investors, AIpha has started to establish offices in Tokyo, Japan and Seoul in South Korea. The country heads for these offices are very experienced professionals who have previously held senior management positions in large Japanese and South Korean corporations. Alpha's investors will benefit immensely from the extensive business network of these corporate veterans. These local offices are responsible for originating and closing deals, and asset management with full support from other Alpha professionals at the Singapore headquarters. Having a local presence will help Alpha to source for the right deals and provide active asset management. Looking ahead, Alpha will continue its disciplined approach in investing the funds raised by adhering to well-conceived and articulated investment strategies Investor interest in Asian real estate is expected to continue growing in line with continued economic growth in the region. Alpha plans to grow its funds under management by securing more investment capital for its two existing funds. When these two funds are fully invested, assets under management will be about $1 billion. Investors are generally interested in China and India due to their enormous market size and growth potential. They are, however, still wary of making any significant investment commitment in these emerging markets. Alpha has already started working with investors to seek out investments in housing developments in China, leveraging Keppel Land's experience and network in China. Alpha will also leverage Keppel Land's presence in India to develop market knowledge and explore investment opportunities in anticipation of growth in the Indian real estate capital market.

Market Review Real Estate Funds The Asian economies performed well throughout 2004. Although the year ended with the unfortunate tsunami disaster, the devastation did not seem to impact the regional economies as much as SARS did in 2003. The Japanese economy grew 2.6% year-on-year in real terms, its fastest pace since 1996. Hong Kong, Singapore and South Korea also experienced healthy economic growth. On the back of positive economic growth, the recovery of real estate markets in Asia also gathered momentum. For example, retail rents in Hong Kong rose between 25% and 40% over the year and the Singapore office sector turned the corner as rentals and demand for prime office space grew. As investors' confidence returned, there was increased interest from foreign capital in Asian real estate. Alpha Investment Partners (Alpha), for example, raised $275 million in the first closing of its Alpha Core Plus Real Estate Fund, which will invest in Japan, Hong Kong, Singapore and South Korea. More real estate capital is expected to flow into Asia during 2005. According to a survey by DTZ released in December 2004, Japan, China and Singapore are three of the top destinations for real estate investment over the next couple of years. In a separate pan-asia survey by Jones Lang LaSalle, investment interest in Asian real estate will continue to be robust in 2005 and Singapore remains a core market for funds keen to invest in the region. Real Estate Investment Trusts Singapore real estate investment trusts (S-Reits) have outperformed the broad equity market in 2004, delivering total returns as high as 50% compared to a 15% rise in the Straits Times Index. Two S-Reits were listed during the year, making a total of five S-Reits on the Singapore Exchange. The market capitalisation of the S-Reits has grown by almost 10 times to more than $8 billion as of end-february since the launch of the first S-Reit in 2002. Prices of the S-Reits have generally increased since their initial listing due to the growth of their distribution per unit and compression of their distribution yield. Yield compression has occurred as investors gained a better understanding of the product and were attracted by its relatively high returns vis-à-vis other investment vehicles. The Singapore government has been proactive in developing this asset class. The 2004 Budget introduced tax exemption for dividends distributed from S-Reits to individual investors. The development of S-Reits is given another boost in the recent 2005 Budget. The government has unveiled more measures that include a five-year waiver on the 3% stamp duty for the transfer of Singapore properties into S-Reits, the removal of most qualifying conditions for tax transparency and the reduction of withholding tax from 20% to 10% for distribution from S-Reits to foreign investors. S-Reits now enjoy the most attractive tax regime among REITs globally. The continued growth in REIT instruments is expected in Singapore. Given the limited size of the investment grade property market in Singapore, S-Reits are poised to grow via overseas acquisitions and more cross-border listing of overseas REITs in Singapore can be expected in the medium to long term. However, to enhance Singapore as a financial centre for REITs in the region, the government will have to continue to introduce attractive measures including a tax regime that allows efficient distributions from overseas assets. 121

Keplandehub Data Centres Keppel Digihub, a wholly owned subsidiary of Keppel Land's e-business unit KeplandeHub, operates a 23,000-sf data centre and disaster recovery facility at Serangoon North. The facility also offers office space for lease, especially for corporations that require personnel to be located close to their data centre operations. In 2004, Keppel Digihub secured several new customers for its data centre, including Hypo-und Vereinsbank AG. It will continue to collaborate with its IT service partners in prospecting and winning new co-location customers. Marketing efforts will also continue to lease out the office and industrial spaces available in the building. As of end-february 2005, the building achieved an overall occupancy of 86%. Equipped with state-of-the-art facilities including back-up infrastructure for power, air-conditioning and connectivity, the data centre provides a fail-safe environment for the housing of computing infrastructure for businesses. It caters to the co-location needs of enterprises, ranging from businesses that require racks and private suites to financial institutions that need space for disaster recovery operations. The disaster recovery facility comes complete with workstations, office appliances, communication devices and Internet access. Recognising the importance of information systems for business continuity, Keppel Land conducted its annual disaster recovery drill at Keppel Digihub's disaster recovery centre in November 2004. The exercise tests the readiness of staff from various departments to carry out normal business operations in an off-site facility when mission-critical systems at head office are unavailable. Using feedback from participants of the drill, the Group's disaster recovery plan will be reviewed and updated. Market Review Data Centres Ongoing initiatives by local authorities, such as the recently launched certification programme for business continuity and disaster recovery service providers, are intended to promote Singapore as a secure and trusted infocomm hub, and an ideal location for high-end business process outsourcing services. This has, for example, resulted in some foreign banks choosing to locate their regional transaction processing centres here. It is expected that the requirements of financial institutions and multi-national corporations with heavy reliance on information technology for business operations will continue to be the drivers for additional data centre capacity in future. 122

Australia Sydney Botanic Cove Botanic Cove is situated in the Hunters Hill municipality in Sydney, a district renowned for its quiet surrounds of trees and flora, most of which are heritage-listed and well preserved. Conveniently located at seven km from the heart of Sydney and just a 15 minutes' drive from Sydney CBD, the development comprises a total of 235 units of apartments and townhouses. Botanic Cove offers a tranquil lifestyle encircled by the serenity of native bushlands and splendid creek and water views. The development is now fully sold and handed over to the homeowners. Botanic Cove is fully sold and has been handed over to the homeowners With the completion and hand-over of Botanic Cove, Keppel Land's office in Australia will cease operations in 2005. Market Review Economy Moderate Economic Growth in 2005 With signs of slowdown in the domestic economy, the Australian government has scaled down its GDP growth estimate for 2005 to 3% from earlier projection of 3.5%. The Australian economy grew by a stronger 3.6% in 2004, mainly driven by household consumption. Though consumption growth is likely to ease, household consumption is expected to remain robust through 2005, supported by continued growth in household incomes on the back of rising employment and wages, and the high level of household wealth. The unemployment rate has improved to a 28-year low of 5.1% in February 2005 on the back of a tight job market. Inflation is expected to rise but will likely stay within the official medium-term target band of 2-3%. Interest rates, which have been holding steady at 5.25% since December 2003, has increased by 0.25% to 5.5% in March 2005 as the Reserve Bank of Australia moved to stem inflationary pressures. Australia 2003 2004E 2005F 2006F Real GDP growth (%) 3.3 3.6 3.2 3.1 Prime lending rate (av,%) 8.4 8.9 9.3 9.5 Inward FDI (US$Bn) 6.9 5.3 9.5 12.5 Exchange rate (AUD/USD) 1.5 1.4 1.3 1.4 Personal disposable income (US$Bn) 297 356 388 379 CPI change (av,%) 2.8 2.3 2.9 2.7 Source : EIU 123

Market Review (cont d) Residential Property Prices in Sydney May Face Downward Pressure House prices across Australia rose 2.7% during the year, the lowest annual increase since 1996. In Sydney, Melbourne and Canberra, the increase in house prices had fallen behind other capital cities. House prices in Sydney and Canberra had hardly changed while prices in Melbourne fell by 1.5% during the period. In comparison, Darwin achieved an 11.6% increase in house prices, followed by Perth (+8.9%), Adelaide (+8.8%) and Brisbane (+8.4%). On a quarterly basis, the increase in house prices appeared to have moderated in 2004, narrowing from 5.9% in the last quarter of 2003 to 2.5% and 0.3% in the first two quarters of 2004. Prices fell marginally by 0.7% in the three months to September but reversed with a 0.6% rise in the last quarter of 2004. House prices in Sydney contracted for three consecutive quarters although the decline has eased to 0.1% in the December quarter from 2% and 1.4% in the September and June quarters respectively. Perth registered the highest price gain of 2.4% while Canberra suffered the largest decline of 1.1% from the September quarter. the most part of 2004 due to the uncertain outcome of the federal election, possible interest rate hikes and a decline in investor activity. However, economic and political stability post-election is expected to put some confidence back into the property market in 2005. Nevertheless, the present buyers' market is poised to continue into 2005 with investor participation likely to gear towards a greater focus on returns as the potential for capital appreciation diminishes. In Sydney, property values have softened, with small pockets of resistance in areas with tightly held properties and limited supply. The main causes to the softening residential market have been the uncertainty over interest rates and falling investment due to low rental yields, exacerbated by the stand-off between vendors and purchasers as they hold their ground under the changed market conditions. In general, house prices around Sydney will likely fall further in 2005. Interest rates, which have recently been raised by 0.25%, could exert downward pressure on property values. However, some undervalued areas in Sydney such as Redfern and Waterloo, which are targets for redevelopment, are expected to see an increase in prices. Investors and first-time homebuyers have generally stayed away from the Australian housing market for 124

China All 230 units of 8 Park Avenue released have been sold Shanghai Park Avenue Spanning over 95,906 sm of land in downtown Shanghai, Park Avenue comprises three condominium developments, One Park Avenue, 8 Park Avenue and Park Avenue Central, with a total of 2,771 units. Park Avenue is strategically located in the heart of Jingan District with close proximity to the Nanjing West Road commercial belt. Premier offices and shopping centres such as Plaza 66, Citic Square, Westgate Mall, Shanghai Centre, Kerry Centre and major hotels such as Portman Ritz Carlton, Four Seasons and JC Mandarin are only a short distance away. Future developments in the vicinity include Shangri-La Hotel Puxi, Wheelock Plaza, Plaza 66 Phase II and Concord World. They will serve to enhance the cosmopolitan appeal of the area when completed over the next few years. Within walking distance to Park Avenue are the Jing An Si MRT subway station on R2 MRT line, Jing An Park, Shanghai Children Hospital and Shanghai First Centre Primary School. A new M7 MRT subway line along the western boundary of the site is also in the pipeline. The development is fully sold and is slated to be completed and handed-over to the buyers in 2005. In 2004, One Park Avenue continued to win awards in recognition for its excellence in product quality. It was bestowed the Top 50 Best Selling Residential Properties in Shanghai in terms of floor area and sales by the Shanghai Real Estate Exchange Centre. Keppel Land's subsidiary in Shanghai, Shanghai Merryfield Land, also won the Advanced Group Prize conferred by the Shanghai Municipal Construction and Management Committee. 8 Park Avenue 8 Park Avenue covers a land area of 33,432 sm with built-up area of 133,393 sm. It is flanked by Kangding Road to the north, Wuding Road to the south and Xikang Road to the east. The development comprises 10 high-rise blocks with a total of 945 apartments. It will have a sprawling landscape and a full-facility clubhouse located underground designed to tap natural skylight. Crafted by well-known architects Palmer & Turner Architects, the project is another hallmark development by Keppel Land in the heart of Shanghai. One Park Avenue One Park Avenue yields a total of 1,118 units, comprising 1- to 4-bedroom apartments, duplexes and penthouses with unit sizes ranging from 70 sm to 341 sm. The development comes complete with a full-facility underground clubhouse and a 12,000 sm central garden. One block of 85 units was launched in January 2004, and another two blocks totalling 145 units released during the national holiday in China in early October. All 230 units have been snapped up. The remaining blocks will be launched progressively from 2005. 125

Park Avenue Central Park Avenue Central comprises 708 condominium units. The third and final development in the Park Avenue precinct, Park Avenue Central is expected to be launched in the second half of 2007. Villa Project at Xujing Keppel Land acquired in December 2004 a 15.3-ha site and plans to develop it into 186 units of predominantly villas, semi-detached houses, as well as terrace houses for the local upper class and expatriate communities. The site is located in Xujing Town, Qingpu District and approximately nine km west of the Hongqiao Airport in the outskirts of Shanghai. It is a 30 minutes drive to People's Square in Shanghai's city centre via the Yan An Expressway. Xujing Town is an established villa zone with a sizable population of expatriates. It is also one of the earliest villa zones to be designated in Shanghai. Situated along the Panlong Stream, the scenic site is traversed by its tributaries. When completed, the development will also enjoy a full-facility clubhouse comprising indoor and outdoor swimming pools, a gymnasium, tennis courts and function rooms. Upcoming amenities in the vicinity include a French- German International School, an American International School, a hypermart and the proposed Jiading-Jinshan Expressway, which will conveniently link the development to other parts of Shanghai by end-2005. Planning for the project is currently underway and construction work will start in mid-2005. The project will be launched in 2006. Ocean Towers In Shanghai, Keppel Land has developed a 25-storey Grade A intelligent office building named Ocean Towers. The building has a net floor area of about 34,000 sm and is strategically located at Yan An East Road in the prime commercial district of Huangpu, adjacent to the tunnel linking the Huangpu Central Business District to Pudong. Ocean Towers has enjoyed full occupancy since its completion in 2001, and was bestowed the National Excellent Building Construction Award by the Central Government of China. Beijing The Seasons Keppel Land acquired in May 2002 a 71,984 sm site in Wang Jing Estate for its maiden project in Beijing - The Seasons. As part of the largest planned township in Beijing with a population of 300,000, The Seasons is strategically located at the western section of Wang Jing Estate, next to the city's green belt and a golf course. It has been identified as one of the designated residential districts for the Olympic Games in 2008. The Seasons boasts easy access to the city centre and the Beijing International Airport, via the Northern 4th Ring Road and the Airport Expressway. The nearby Wang Jing West MRT station, the No. 10 MRT line 126 Keppel Land s maiden project in Beijing - The Seasons - in a residential estate designated for the Olympic Games 2008

under construction, and the new transport plans, which include a six km long Inner Ring Road and an 8.6 km long Outer Ring Road, will increase appeal for the Wang Jing area as well as for The Seasons. 1 The Seasons will have 1,859 units of quality residential homes with full clubhouse facilities upon completion. With an Olympic-length heated swimming pool, tennis courts, a kindergarten, a retail establishment and a 35,000 sm landscaped garden, the project will cater to the growing middle- and upper-income locals as well as expatriates. Some 96% of the 541 units launched from the third quarter of 2004 were sold as at end-february 2005. The remaining units will be launched progressively in 2005 and 2006. The Seasons has received the Best Landscaping Award by Xin Jing Bao in Beijing. Keppel Land was also ranked Top 10 Real Estate Corporations in Beijing for this project by Beijing's Lifestyle Guide publication. 2 1&2 - The Waterfront, Keppel Land s first project in Chengdu has garnered numerous accolades The Seasons is currently at a stage where a growing number of international brand names are beginning to have a presence in this estate. Wal-Mart plans to develop a mega retail mall with a Warner Brothers entertainment outlet. IKEA and Carrefour have also announced plans to establish outlets in the estate. Siemens, Motorola, Nortel, National and LG have also established offices in Wang Jing Estate. The presence of international players will bring more market interest in the estate and create a competitive edge for The Seasons. Chengdu The Waterfront The Waterfront is located at the southeastern part of Chengdu, less than 10 minutes' drive away from the city centre. It commands a 150-metre wide frontage of the Funan River, with the Sichuan University Campus and the historic Wang Jiang Lou Garden on the opposite bank of the river. It is situated within an established residential estate, with fully developed amenities like 127

schools, public transportation and shopping facilities. The Waterfront is Keppel Land's first residential project in Chengdu, comprising 1,143 units with 166,285 sm of total gross floor area on a 40,906 sm site. The project will have full clubhouse facilities, which include a heated swimming pool, tennis courts, a mini-mart and a childcare centre. This project will cater to Chengdu's growing middle to upper-middle homebuyers, as well as foreign buyers. recreational facilities, parks, a market and car park facilities. The project will cater to Chengdu's burgeoning middle-income group. Construction has commenced for the first parcel within Phase One. Sales launch for the first parcel, which will comprise approximately 970 residential units, is scheduled in the first half of 2005. Construction work commenced in the second quarter of 2004 and the project was launched in the second half of 2004. As at end-february 2005, 95% of the 582 units launched have been sold. The remaining units will be launched in 2005. The Waterfront was bestowed the Most Habitable Development in Chengdu, 2004 by the Chengdu Funan River Revitalisation Committee and Chengdu Shang Bao. It also won the Best Landscaping Concept and Design by the International Federation of Parks and Recreation Administration. Both awards were conferred under the auspices of the United Nations. The Sichuan Residential Property Association, Sichuan Construction Quality Association and Property Weekly jointly awarded The Waterfront with the accolade, Exemplary Fitted Unit in Chengdu. The Botanica The Botanica is a 42-ha residential township development in Chengdu, the capital city of Sichuan Province. The township is developed by CityOne Township Development (CityOne), a joint venture between Keppel Land and HDB Corporation (HDB Corp). The Botanica is strategically located at the junction of the 3rd Ring Road and Cheng Long Road in the southeastern sector of Chengdu, and is just next to the proposed new eastern suburban administrative centre of Chengdu. The entire township, which is to be developed over three phases according to market demand, will yield about 8,000 residential units. The township will comprise a mix of low- and high-rise apartment blocks, commercial buildings and supporting amenities including a primary school, kindergartens, a main clubhouse and supporting The township project has already garnered several awards even before the sales launch. The Chengdu Real Estate Management Board, Chengdu Real Estate Brand Promotion Centre and Chengdu Estate Report have jointly awarded CityOne as the 2004 Most Trustworthy Developer. Concurrently, the Chengdu Business Times, Chengdu Real Estate Brand Promotion Centre and House Weekly have named The Botanica as the 2004 Recommended New Project with Good Investment Value. Kunming Residential Project Keppel Land has a Memorandum of Understanding for a joint venture with Yiliang Yang Zong Hai Tourist Resort Development Holding Company to develop a residential development on a 380-ha site in Kunming, Yunnan. Keppel Land will be taking an 80% stake while the Chinese partner will inject the land as its 20% equity. The site is located next to the Spring City Golf and Lake Resort. The Group aims to rejuvenate the area into a vibrant waterfront town with world-class facilities, top-notch residential estates and respectable educational institutions. Spring City Golf and Lake Resort Spring City Golf and Lake Resort, the internationally renowned premier golf resort developed by Keppel Land, is located at east shore of Lake Yang Zong Hai, within a 30 minutes drive from Kunming City via the newly completed Kunming-Stone Forest Expressway. 128

Resort homes in Spring City have received favourable response in the domestic and international market Since its completion in 1998, Spring City has won numerous international accolades every year. In 2004, Spring City was ranked by Asian Golf Monthly as the Best Golf Resort in Asia and the Best Golf Course in China - First Runner-Up. The China Golf Magazine also ranked Spring City among the Top Ten Golf Course in China, and the Best Green in China. The resort homes in Spring City have received excellent response in the international and domestic market. Three phases of collection, totalling 223 units have been completely sold out. Spring City will be launching a new phase in 2005, which comprises 500 units. Dragon Land Keppel Land has a 24.9% stake in Dragon Land, a Singapore-listed company whose real estate development interest in China covers the cities of Qingdao, Changzhou, Anxi, Jiangyin, Shenyang and Tianjin. In 2004, Dragon Land acquired a second plot of 3 million sm land in Hangu, Tianjin, next to the first plot of 1.3 million sm land purchased in 2003. While the first plot will be developed into a mixed villa and apartment development and an 18-hole golf course with full clubhouse facilities and amenities, the second plot will be for residential and commercial development. The first plot is currently under development and is slated for sales launch in 2005. Fujian Keppel Land has also taken a 15% stake in a residential development with ancillary commercial elements in Fuzhou, the capital city of Fujian province. This is a proposed mixed development including apartments, villas and townhouses targeted at the middle to high-income group, shop lots, and a hotel. Residential developments may comprise 6- to 18-storey apartment blocks, which will be developed according to market demand. 129

130 The Botanica in Chengdu is a residential township comprising apartment blocks, commercial buildings and supporting amenities

Market Review Economy Robust Economic Growth Sustained in 2004 China's economy remained strong in 2004 with GDP registering a robust 9.5% growth. Credit-tightening policies and the central bank's interest rate hike have started to curb speculative investments in property and other sectors. Foreign direct investments (FDIs) rose by 13.3% to US$60.6 billion in 2004. China also recorded a seven-year high growth in terms of household income, with per capita disposable income up 7.7% from the previous year. Increased Purchasing Power in Shanghai Shanghai notched up a sterling 13.6% GDP growth in 2004 with strong performance in the electronics and manufacturing sectors. Shanghai registered a 51.6% growth in exports and a 35.3% rise in imports during 2004. FDIs increased 11.8% to US$6.5 billion, and disposable income increased 12.2%. The robust economic growth in Shanghai is underpinned by strong foreign investment, improving purchasing power of local residents, and continued growth in the manufacturing sector. Beijing to Maintain Double-digit Growth in 2005 In 2004, Beijing registered a vibrant 13.2% GDP growth, fuelled by Olympics-related projects, and the continued growth in the IT sector. FDIs surged 43% to US$3.1 billion during 2004. Per capita disposable income increased 11.5%. Beijing will see healthy economic growth in the next few years, due to increasing FDI, continued urban renewal and government expenditure on infrastructure as the Olympics approaches. A 9-10% GDP growth in the capital city is expected in 2005. Chengdu Set to be Economic Hub of Western China Chengdu has witnessed robust economic growth over the last few years with its GDP growth consistently above the national average. In 2004, Chengdu registered a 13.6% growth in GDP, due to increasing infrastructure development, rising foreign investment, and implementation of the "Go West" programme. Chengdu achieved a 50% increase in FDIs in 2004. With more multinational companies (MNCs) setting up operations in Chengdu, GDP growth is expected to continue to be strong in 2005. It is believed Chengdu will become the economic hub of Western China in the near future. Property Market Stabilising Measures to Curb Overheating In order to curb possible bubbles in some areas and segments of the property market, the Chinese government introduced a series of macroeconomic measures from April 2004, such as a land registry and auction system, increasing developers' capital outlay and raising the lending rate. These measures have started to curb overheated investment, with a 28.1% increase in real estate investment during 2004, slightly slower than the 29.7% increase in the previous year. China 2003 2004E 2005F 2006F Real GDP growth (%) 9.3 9.5 8.4 7.5 Prime lending rate (av,%) 5.3 5.6 5.9 6.3 Inward FDI (US$Bn) 47.1 57.0 60.0 64.0 Exchange rate (RMB/USD) 8.3 8.3 8.2 8.1 Personal disposable income (US$Bn) 782 858 937 1,029 CPI change (av,%) 1.2 3.9 2.5 2.5 Source : EIU 131

Despite fears of property bubbles, China's residential property market remained strong during 2004. Total investment in residential properties in China increased 28.7%, and the average selling price rose 15.2%. In order to avoid possible overheating, the Chinese authorities took measures to curb speculative investment, including tightening credit for the second property purchase, and restricting re-sale of properties prior to the issue of titles. Meanwhile, the government also pushed for housing reforms and provision of affordable units to develop the mass residential market. China s residential market is expected to continue to grow in 2005, especially in the secondary markets, driven by strong economic growth, favourable demographic profile, rising household income, rapid urbanisation, and increasing homeownership aspirations. Office Stable Market Prospects in Shanghai The Grade A office market enjoyed strong demand in 2004, driven by expansion of domestic and foreign firms in the financial, insurance, and logistics sectors. Together with the limited supply in prime locations, the market recorded a high pre-leasing of new supply during 2004. The vacancy rate of Grade A office in Shanghai declined to 6.5% as at end-2004, compared to 11.8% at the end of 2003. The strong demand also pushed the achievable Grade A office rentals in Shanghai up 10.4% year-on-year. The office market will remain strong in 2005, on the back of increased demand from MNCs in the banking and electronics sectors. Residential Demand-driven Market in Shanghai Shanghai registered a robust 20.4% growth in property development, accounting for 8.4% of total economic growth in 2004. According to the Shanghai Municipal Bureau of Statistics, average selling prices in Shanghai increased 15.8% during 2004. The municipal government has introduced measures to curb speculation, including a 5.5% capital gains tax introduced in March 2005 on the re-sale of properties held under a year. These measures will prevent potential bubbles and encourage growth of home ownership within the mass-market segments. Shanghai s residential market will continue to be driven by economic growth, increasing urbanisation and rising income in 2005, while the lack of new supply in the downtown area and the increasing demand from employees of MNCs will support prices and rentals in the mid- to high-end segments. Beijing Sees a More Stable and Healthy Market During 2004, property development in Beijing increased 15.7%. New residential property take-up increased 29.1%, and the average selling price was 6.5% higher than in 2003. The new urban development plan in Beijing, which will develop 11 new towns in the outskirts, will create a more even spread of the population, and increase the demand for housing in the suburbs. Foreign Investment Boosts Chengdu Property Market Chengdu's residential market continued to be strong in 2004. Property sales to individuals reached RMB29.4 billion (US$ 3.6 billion), up 49.2% from the previous year. Take-up of new residential properties in the main city area surged by more than 40% to 6.9 million sm. As a secondary city, Chengdu is expected to catch up quickly, on the back of the implementation of the "Go West" programme, government investment in infrastructure, and rising household income. Its strategic location in the west and its strong growth potential have attracted substantial interest from developers from other provinces, as well as foreign developers. 132

Hong Kong Kowloon The Waterfront Located above the Kowloon MTR Station along the MTR Airport line, The Waterfront comprises 1,288 residential units spread over six towers. As at end-2004, more than 98% of the 1,122 units in five blocks launched for sale has been sold. The remaining tower was released for sale in January 2005. To-date, more than one-third of the recently released units has been sold. Close to 90% of The Waterfront in Hong Kong has been sold Keppel is part of a consortium which developed The Waterfront, with Keppel Land holding 7% and Keppel Corporation another 3% stake. Other members in the Wing Tai-led consortium include Temasek Holdings, Singapore Land, Lai Sun Development, Worldwide Investment and USI Holdings. Market Review Economy Strong Economic Recovery in 2004 as Hong Kong's Economic Integration with China Strengthens Domestic demand in 2005 is expected to continue to be driven by the influx of mainland China tourists. With further easing of restrictions on mainland Chinese visiting Hong Kong (HK), retail sales surged in 2004. The economy grew 8.1%, driven mainly by strong consumer spending and exports growth. The economy also recovered from deflation, which had plagued the territory since November 1998. The composite Consumer Price Index has turned positive since July 2004. While the International Monetary Fund has forecast HK economy to grow by 4% in 2005, high oil prices and further macro-adjustment measures by China are some of the downside risks that HK may face. Residential Strong Rally in 2004 The luxury residential segment enjoyed a strong rally with prices estimated to have risen by more than 50% during the year. Demand for some newly-launched mass residential projects in well-located areas remained strong even after developers raised prices. Overall, residential sales in the primary and secondary markets enjoyed strong growth in both volume and value terms. For the first time in four years, the prime lending rate was raised from 5% to 5.125% in September 2004. However, this did not seem to have any impact on the property sector as mortgage rates are still low. The much-improved economic environment and the recovery from deflation helped boost buyers' sentiments. Aggressive bids by developers at three land auctions during the year also pumped up confidence in the market's prospects. Continued Recovery Expected for 2005 While economic growth is likely to moderate from the higher base recorded in 2004, the improving economic outlook is expected to continue, supported by strong inbound tourism and more robust intra-regional trade. Analysts are forecasting further increases in residential prices in 2005 in the mass residential and luxury segments. The government is likely to continue to rein in oversupply. Hong Kong 2003 2004E 2005F 2006F Real GDP growth (%) 3.2 8.1 4.6 3.6 Prime lending rate (av,%) 5.0 5.0 6.5 7.3 Inward FDI (US$Bn) 13.5 17.5 20.0 24.0 Exchange rate (HKD/USD) 7.8 7.8 7.8 7.8 Personal disposable income (US$Bn) 128.3 131.6 136.4 142.5 CPI change (av,%) -2.6-0.4 0.4 1.2 133 Source : EIU

India In addition to Bangalore, Keppel Land is also exploring opportunities in urban housing in major growth cities such as New Delhi, Mumbai, Hyderabad and Chennai Keppel Land entered into a joint-venture to develop a 2,002-unit high-rise condominium development with comprehensive recreational facilities on a 9.7-ha site in Bangalore, India. It is located south of Bangalore's city centre, midway between the city centre and the Electric City. It takes about 30 minutes to travel from the current airport to the city centre. ranging from 1,100 to 1,500 sf. Phase One is expected to be launched in the first half of 2006. Keppel Land will have a 51% interest in this project, while JV partner Puravankara Projects Limited, a leading residential developer in Bangalore, will hold the remaining 49%. To be developed in phases over four to five years, the project is targeted at IT professionals, non-resident Indians and businessmen in the middle-income segment. It will comprise mainly two- and three-bedroom apartments with unit sizes Apart from Bangalore, Keppel Land is also exploring opportunities in urban housing, including large-scale integrated township projects, in major growth cities like New Delhi, Mumbai, Hyderabad and Chennai. 134

Market Review Economy Indian Cities as Investors' Top Real Estate Investment Locations in 2005 The Indian cities of Mumbai, Bangalore and New Delhi have emerged as the top three investors' choices for real estate investment in 2005, according to Jones Lang LaSalle's annual Investor Sentiment Survey- Asia. India has also been rated one of the best investment destinations in Asia by the 2004 World Investment Report of the UN Conference on Trade and Development (UNCTAD). Following an exceptional high GDP growth of 8.6% in 2003, India's economy is expected to moderate to 6.5% in 2004 due to lower agriculture growth. However, the services and industrial sectors are expected to perform strongly. India's share in the world market for software application development, one of the largest businesses for IT companies, stood at 16.4%. With the global shift in FDI flows from manufacturing to services, the trend should benefit India. India 2003 2004E 2005F 2006F Real GDP growth (%) 8.6 6.5 7.3 6.6 Lending rate (av,%) 11.5 10.9 11.3 11.5 Inward FDI (US$Bn) 6.0 5.8 6.6 7.5 Exchange rate (INR/USD) 46.6 45.3 42.5 41.5 Personal disposable income (US$Bn) 444.1 536.4 651.4 752.4 CPI change (av,%) 3.8 3.8 4.4 4.3 Source : EIU Bangalore Residential Demand Expected to Grow at 20% p.a. Bangalore's residential market has been growing significantly due to the IT, IT-enabled services and business process outsourcing boom, making it the most desired destination for these companies. An estimated 3 to 3.5 million jobs will be outsourced to India over the next 10 years. As a result, Bangalore has emerged as the largest real estate market in India for office space, overtaking Delhi and Mumbai. Recent relaxation of rules on foreign investment in the real estate sector are set to attract greater inflow of foreign investments into the Indian property market. Foreign direct investment in townships, housing, built-up infrastructure and construction-development projects up to 100% equity is now allowed without seeking approval from the Foreign Investment Promotion Board. The minimum land area for housing plots has been reduced to 10 hectares, while the minimum built-up area of construction-development projects which includes housing, commercial premises, hotels, resorts, hospitals, educational institutions and recreational facilities is 50,000 sm. Housing demand in Bangalore is generated mostly by owner-occupiers due to employment growth with little speculation element. With greater affordability given low interest rates and dual incomes from higher employment levels, new homeowners such as young married couples and upgraders from the rental market will also be spurred to make home purchases. Although mortgage rates rose by 50-75 basis point in the fourth quarter of 2004, it is unlikely to have a significant impact on housing demand since the interest rate is still relatively low. Total demand for apartments in Bangalore is estimated at 24,000 units per annum with an annual growth rate of 20% for the next few years. 135

Indonesia Jakarta Wisma BCA Comprising two office towers, Wisma BCA is located right in the heart of Jakarta's financial and business district. With easy access to five-star hotels, embassies and other prime office buildings, Wisma BCA remains a preferred choice for major corporations. As of December 2004, Wisma BCA was fully tenanted at good rental rates. Meanwhile, the site has the potential for a third tower to be added to fully utilise its plot ratio. 1 Pasadenia Garden Spreading over an 8-ha site, Pasadenia Garden is a lowdensity development located within the upper-middle class Pulomas residential estate in Jakarta. The first phase of development was completed in late 1996. Of the 147 condominium units for sale, 93 units or 63% had been sold as at end-2004. Of the 54 unsold condominiums, 44 units or 81% are currently being leased out. As for the 50 apartments for lease, 26 units or 52% have also been rented out. At present, the land meant for landed housing development under Phase Two is leased to an investor who has constructed a temporary 40-bay golf driving range that serves as an added attraction for the development. Keppel Land is currently studying the potential of developing Phase Two, in view of market demand for landed homes. 2 1. Wisma BCA in Jakarta continues to enjoy full occupancy 2. A handshake after inking the deal for the Cakung site which will be a residential township Cakung Township Project In December 2004, Keppel Land entered into a joint venture deal to develop a 270-ha land in Cakung, eastern Jakarta, into a residential township. Located within a 5-km radius of the prime and matured residential townships of Kelapa Gading and Metropolitan Menteng, the site is one of the few large plots of land available for township development in Jakarta City. Cakung Township's accessibility will be greatly enhanced when part of the Outer Ring Road, which connects to the township, is completed by end-2005. 136 Targeted at the middle to upper-middle income Indonesian families, the township will be developed in phases over 10 to 15 years. It will yield about 7,000

Ria Bintan is rated the Best Golf Course in Indonesia by Asian Golf Monthly landed homes with substantial space allocated to retail and entertainment malls, offices, shop houses, as well as international schools and other public facilities. The first phase, comprising 1,156 residential units, is expected to be launched progressively from the second half of 2006. Yogyakarta Melia Purosani Hotel The 296-room Melia Purosani Hotel is located in the centre of Yogyakarta. The hotel continued to improve its performance during 2004 on the back of increased domestic travellers participating in meetings and conventions. Average occupancy for the year was 61.6%, up from 51% for 2003. Bintan Ria Bintan Ria Bintan is a 447-ha premier integrated resort, comprising the world-renown Club Med holiday village, hotels, resort homes and golf courses, and will be developed in phases. Ria Bintan Golf Club features a 36-hole championship golf course designed by Gary Player. The first 27 holes, comprising the 18-hole Ocean Course and the first nine holes of the 18-hole Forest Course, have been completed and opened for play in October 1998 and December 2000 respectively. In 2004, readers of Asian Golf Monthly voted Ria Bintan s as the Best Golf Course in Indonesia. Club Med Ria Bintan, a beachfront resort with 302 rooms, continues to draw tourists from Singapore and around the world. The hotel's performance has improved in 2004 with an average occupancy rate of 48.7% against 37.1% in 2003 when occupancy was affected by the SARS epidemic. More overseas and regular guests are returning to the hotel to enjoy its tranquil natural scenic beauty and beach, as well as the lively recreational activities of the village. Surabaya Galleria Tunjungan Galleria Tunjungan is a proposed upmarket retail-cum-commercial complex to be developed on a prime 23,768-sm site in the heart of Surabaya's CBD. This project is currently put on hold until market conditions improve. BG Junction Formerly known as Bubutan Golden Junction, the development has been re-named as BG Junction. Keppel Land holds an 80% stake in this strata-titled retail complex, which is currently under construction on a 25,840-sm site located in an established commercial area within Surabaya's CBD. As of December 2004, piling work was in progress for the development, which will yield total net retail area of 37,836 sm, of which about 16,450 sm is available for sale. 137

BG Junction, Keppel Land s latest mall development in downtown Surabaya, has secured Carrefour as its first anchor tenant Carrefour hypermarket has been secured as the anchor tenant of the complex, with a pre-commitment of 11,940 sm for 25 years. Pre-sale of the retail development has commenced. It is due for completion in 2006. and suites with recreational facilities like a private swimming lagoon, swimming pool, tennis court, fitness club and other sea sports facilities. It will also offer easy access to the diving sites located within the vicinity. The opening of the hotel will be timed according to market conditions. Manado Hotel Sedona Manado Hotel Sedona Manado is an international-class resort hotel located at Tateli,12 km from Manado, the capital of North Sulawesi. The final completion of the hotel has been put on hold following the Asian financial crisis in 1997/1998. Upon completion, it will have 247 rooms Bali Tanah Lot Beach Resort The proposed development of exclusive gated beachfront resort bungalows with a luxurious resort hotel is under review. 138 Market Review Economy New Leadership Brings Hopes of Economic Stability The presidential election was conducted peacefully with General Susilo Bambang Yudhoyono being elected and sworn in as Indonesia's sixth president on 20 October 2004. The smooth transition of power augurs well for Indonesia and has buoyed hopes for a new era of stability and growth for the country. The Indonesian economy continued to post good growth, with real GDP expanding by 5.1% in 2004 from 4.9% in 2003 on the back of higher private consumption and investment. The overall investment climate has also showed signs of improvement. The number of approved foreign investment projects increased to 1,190 for the whole of 2004 from 1,178 in 2003, although the total value of foreign investments was about 27% lower at US$10.3 billion for the year due to concerns over terrorism threats and corruption.

Market Review (cont d) Indonesia 2003 2004E 2005F 2006F Real GDP growth (%) 4.9 5.1 5.4 5.7 Prime lending rate (av,%) 16.9 14.2 13.5 12.0 Inward FDI (US$Bn) -0.6-0.7 1.0 1.5 Exchange rate (Rupiah/USD) 8,577 8,939 9,052 9,116 Personal disposable income (US$Bn) 134.1 141.1 150.7 158.9 CPI change (av,%) 6.8 6.1 7.2 5.1 Source : EIU Jakarta Demand For Office Space to Increase Total cumulative supply of office space in Jakarta rose marginally to 5.1 million sm as at end-2004 from 5 million sm in the previous year. Three office buildings totalling 68,000 sm are projected to enter the CBD office market in 2005. Total future supply within the CBD area until the end of 2006 is estimated at 121,800 sm. There will be approximately 82,800 sm of additional new supply outside the CBD area and are expected to be completed by 2006. Net take-up of office space for the whole of 2004 reached 68,800 sm, almost 84% higher than recorded in 2003. This brought the cumulative take-up to 2.4 million sm as at December 2004. Overall occupancy level also increased from 78.8% in 2003 to 79.4% for 2004. Gross rental rates for office space within the CBD remained relatively stable, averaging Rp 112,200 psm per month as at the end of the year. The asking price for CBD office space was also held steady at between Rp 11.5 million psm and Rp 14.0 million psm for good grade strata-titled space. Improved Residential Sales and Leasing Demand for rental apartments remained firm in 2004. Total take-up for 2004 amounted to 925 units, 82.4% higher than 507 units in 2003. Cumulative demand as of December 2004 stood at 10,878 units, an increase of 39.2% from the 1997 pre-crisis level of 7,812 units. With improved business outlook, occupancy level of the rental apartment market will likely remain stable in 2005. On condominium sales, the take-up rate for 2004 was significantly higher at 7,875 units compared to 1,470 units in 2003. Sales activity was especially robust in the last quarter of 2004 with 3,719 units sold, reflecting increasing public confidence in the new government and growing private investment in the property sector. Looking ahead, demand for condominiums will continue to grow. Condominium prices are expected to remain stable at Rp 14.1 million psm within the Jakarta CBD and Rp 9.1 million psm for prime residential areas outside the CBD. Healthy Demand for Residential Townships The total developed area for residential estates in Greater Jakarta (which includes Jakarta City, Bogor, Tangerang and Bekasi) was 12,250 ha as at end-2004, yielding a total of 237,670 housing units of which 75% have been sold. The total developed area is equivalent to 32.1% of the total planned area of 38,160 ha, of which only 6% or 2,289 ha are within Jakarta City. Residential estates within Jakarta City attained an overall occupancy of 81% as at end-2004. However, supply of new housing units was limited due to the lack of available vacant land within the city boundaries. With continued improvement in the economic, social and political conditions in Indonesia, demand for residential estates in Jakarta with good master planning, environmental quality, infrastructure and security is expected to remain healthy in the years ahead. Surabaya Retail Market to Remain Stable Total cumulative supply of retail space in Surabaya is approximately 412,200 sm, up almost 11% from 372,600 sm in 2003. Average occupancy declined slightly to around 90.2% for 2004 from a year-high of 96% as a result of new supply entering the marketplace during the year. The Golden City Mall and Pakuwon Trade Centre were completed and commenced operation in 2004. The City Mall and Plaza Sungkono are expected to be completed in the first half of 2005. Rentals have remained firm with average gross rental for prime ground floor space at Rp 300,000 psm per month. New projects launched and under development in 2004 included the Empire Palace, Grosir ITC Wonokromo, Kapas Krampung Commercial Centre and ITC Atom. 139

Malaysia The development comprises a balanced mix of over 12,000 units of residential and commercial properties. As at the end of 2004, a total of 2,255 units of terrace houses, semi-detached houses, apartments and shop offices have been launched, of which 1,944 units or 86% have been sold. During the year, Taman Sutera garnered the second position in the Landscape Award conferred by the Johor State Government. 94% of Taman Jernih has been sold as at end-february 2005 Johor Taman Sutera Taman Sutera is a 500-ha township project developed by Keppel Land and several joint venture partners. With its close proximity to the city centre of Johor Baru, the development enjoys easy access to the Senai International Airport, the North-South Highway and the Second Link between Malaysia and Singapore. Penang Taman Jernih Taman Jernih is a 14.4-ha freehold residential development located in Bukit Mertajam. Jointly developed by Keppel Land and the Malaysian Boustead Group, the prime residential project comprises 365 terrace houses, 28 semi-detached houses, 120 cluster houses and two bungalow lots. The first three phases of 449 units have been fully sold and completed. The bulk of the houses have been handed over to buyers. The fourth and last phase of 64 units, which was launched for sale in January 2004, is 53% sold as of end-february 2005. In all, the entire development is 94% sold as at end-february 2005. Market Review Economy Economic Outlook Remains Favourable Riding on the global economic recovery as well as the improved business and consumer sentiments, the Malaysian economy grew at 7.1% in 2004 - the fastest rate since 2000. Growth was broad-based, underpinned by buoyant domestic demand and reinforced by strong external demand. Output growth was propelled by the manufacturing and services sectors. However, the Malaysian economy is expected to grow at a slower pace of 5-6% in 2005 as global economic growth is poised to moderate on the back of high crude oil prices, inflationary pressure, interest rate hikes and a probable slowdown in the Chinese economy. Malaysia 2003 2004E 2005F 2006F Real GDP growth (%) 5.3 7.1 5.0 4.9 Prime lending rate (av,%) 6.3 6.5 6.6 6.8 Inward FDI (US$Bn) 2.8 3.0 3.0 3.4 Exchange rate (Ringgit/USD) 3.8 3.8 3.8 3.8 Personal disposable income (US$Bn) 61.3 66.0 70.8 75.4 CPI change (av,%) 1.1 1.5 2.5 2.1 140 Source : EIU

Market Review (cont d) Residential Market Conditions Remain Conducive It has been a good year for the residential market in the Klang Valley with many developers reporting increased sales volume and prices in 2004. Supply and demand of new launches in the Klang Valley increased by 15% in 2004 compared to 2003. Prices generally remained stable with 5-10% increase in sought-after locations such as Kuala Lumpur City Centre, Mont'Kiara, Bangsar and Damansara. Demand for residential units in other states such as Penang and Johor remained steady with developments in premier locations performing better. environment in suburban areas as well as high property prices and traffic congestion in areas within and surrounding Johor Baru Central. A recovery in the Singapore economy will be a boon to the property market in Johor Baru. The increase in the number of Malaysians staying in Johor Baru and travelling to work in Singapore via the Second Link will likely create greater demand for housing properties in Johor Baru. Strengthening of the Singapore dollar against the Malaysian ringgit will also make houses in Johor Baru more affordable for Malaysians who work across the Causeway. The overall outlook for the residential property market is expected to remain favourable. Relatively low interest rates, strong economic growth, improvement in consumer confidence and favourable fiscal policies will continue to underpin the housing market. As the country is still flush with funds given excess liquidity in banks and large inflows of portfolio funds and foreign direct investments over the last two years, Bank Negara is unlikely to hike interest rates soon as such a move will encourage more portfolio funds to pour into Malaysia. Although the consumer price index has increased to 2.4% as of January 2005 from a year ago, this has been attributed mainly to seasonal rise in food costs, higher imports due to the weakening US dollar and rising oil prices. Penang Limited Impact on Property Market from Tsunami Disaster The Penang housing market remained stable throughout 2004 with no major external influencing factors. Positive market sentiment had led to slight appreciation of 2-5% in prices of landed properties during the year. While Penang was affected by the recent tsunami disaster, the damage was limited. Prices of properties in Tanjung Tokong, the worst affected area on the island, and other seafront hot spots remained the same as before the tidal waves struck on December 26. Prime localities such as Gurney Drive were largely unaffected. Johor Baru Shift in Demand to Suburban Areas Demand for property in Johor Baru has shifted focus to the suburban areas, such as Plentong, Ulu Tiram, Masai, Kempas, Tebrau, Kulai and Skudai. This shift in demand is mainly attributed to the better living The Malaysian government is rapidly developing Kepala Batas, the hometown of Prime Minister Datuk Seri Abdullah Ahmad Badawi. The Government has planned to turn this sleepy town in North Seberang Prai on the mainland of Penang into a "Medical City" and "Educational Park" of the northern region. 141

Myanmar 1 Myanmar Sedona Hotel Yangon In the land of golden pagodas, Sedona Hotel Yangon stands majestically beside the scenic Inya Lake. Due to its close proximity to the international airport, the city centre and many cultural attractions, Sedona Hotel Yangon is a popular choice amongst corporate and leisure travellers. Despite the Avian Flu outbreak in the beginning of the year, the hotel performed consistently well, capturing a sizeable share of both the corporate and leisure travel markets. The average occupancy for the hotel edged higher to 81.9% for the 175 rooms in operation as compared to 64% in 2003. 2 1&2 - Sedona Hotel Mandalay continues to achieve good occupancy throughout the year despite the Avian Flu outbreak Food and beverage sales contributed to the profitability of the hotel's operation, as a result of the introduction of creative menus and dining promotions. Banquet sales also improved during the year. Overall, the hotel performed well in 2004. With marketing efforts geared towards increasing the flow of leisure travel groups to Yangon, the hotel's occupancy rate is expected to improve further in 2005. 142

Sedona Hotel Mandalay Conveniently located in the heart of Mandalay, Sedona Hotel Mandalay captures breathtaking views of the Mandalay Hill and Mandalay Palace, and is reputed to be the best hotel in this ancient city. The outbreak of the Avian Flu had a slight impact on tourist arrivals in the first quarter of 2004. However, business began to pick up towards the end of the first quarter when the virus outbreak came under control, with the hotel achieving higher than full occupancy for the 56 rooms in operation during the year. The hotel's aggressive food and beverage promotions targeting the local market had also been very successful, making a positive impact on the hotel's earnings. With continuous efforts to elevate the Sedona brand name through online marketing, trade shows and strategic business alliances with airlines and travel agents, the Group's hotels in Yangon and Mandalay will continue to perform reasonably well in 2005. Market Review Economy Political Concerns will Continue to Rein in Economic Growth Myanmar's economic growth and tourism prospects will continue to be dampened by the ongoing political upheaval and negative media publicity. The unrelenting trade sanctions saw the relocation of a number of foreign firms, leading to a dip in the expatriate market. According to the Myanmar Tourism Promotion Board, the high cost of domestic airfare is also dampening travellers' interest in the destination, as travel packages are deemed expensive. As long as these conditions persist, the increase in Myanmar's tourist arrivals will be capped to a moderate rate of growth. Myanmar 2003 2004E 2005F Real GDP growth (%) -0.5 0.8 1.1 Lending rate (av,%) 15.0 15.0 15.0 Exchange rate (Kt/USD) 960 975 1,200 CPI change (av,%) 49.7 27.9 28.1 Source : EIU 143

Philippines Development of the third and fourth phases of Palmdale Heights is being considered to build on the success of the first two phases 144 Keppel Philippines Properties (KPP) continues to focus on property sectors with relatively strong fundamentals like the middle-income residential and retail markets. Looking ahead, KPP will continue to source for new development projects with potential for quick turnaround profits, particularly in areas within and around Metro Manila. Palmdale Heights Palmdale Heights is KPP's first development venture into the middle-income residential sector under its subsidiary Buena Homes (Sandoval), Inc. The 7.6-ha condominium project, comprising 29 residential towers with about 4,000 units, will be developed over eight phases. The development boasts of generous open spaces with amenities such as a 2-storey clubhouse, swimming pools, landscaped gardens and playgrounds. Parking facilities and two commercial buildings will also be incorporated into the development to cater to the needs of the residents. Palmdale Heights' proximity to the Makati and Ortigas Central Business Districts (CBD) is ideal for young professionals, newly married couples and overseas Filipino workers looking for accessible homes away from the hustle and bustle of the CBDs. To date, the six residential buildings with 828 units under the first two phases of development and the amenities have been completed. Hand-over of the completed units have started since October 2003 and June 2004, which are earlier than the planned schedules of December 2003 and December 2004 respectively. About 84% of the 828 units under the first two phases have been sold as at end-february 2005. KPP is evaluating the prospects of developing the next two phases of eight residential buildings within the next 12 months in order to take advantage of the momentum built from the success of the first two phases and increasing market interest in the development.

SM-KL Towers The Podium, the retail component of SM-KL Towers, has catered to the tastes of discerning consumers since its official launch in August 2002. This upscale mall has established a niche for art and cultural exhibits and performances, and has become the popular venue for special events and gatherings hosted by the various organisations and diplomatic circles of embassies in the Philippines. With more than 140 upscale and mid-range shops, specialty stores and restaurants housed under the spacious ambience of an upmarket mall, The Podium has consistently been the choice destination for young working professionals in and around the CBD area and residents living nearby. It offers al fresco dining and is the only mall that has a gourmet shop offering over 400 choice wines from around the world. Live acoustic music is played at The Lounge located on the second level of The Podium to enhance the ambience in the mall. The Podium has also recently launched valet service for its well-heeled clients. The Podium also consists of two state-of-the-art cinemas, which were recently named the runner-up for the Most Outstanding Healthy Places (Healthy Movie House in Malls Category) in the National Capital Region. This award was conferred by the Philippine Department of Health's Centre for Health Development. The Podium is 94% leased as of end-february 2005 and it constantly updates its mix of stores and restaurants to stay in vogue. KPP and its joint venture partner the SM Group, continue to closely monitor market activities to determine the opportune time to expand the retail podium and develop the first of two 55-storey office towers. Meanwhile, Benguet Center - an existing office building on the site - continues to enjoy full occupancy with above market average rental rates. Metro North Township Metro North Township is a master-planned township development on a 600-ha site located in San Jose Del Monte, Bulacan, north of Quezon City. Incorporating residential, commercial, institutional and mixed land uses, the development is envisioned to be the premier residential development in the area, presenting urban living close to nature. With the completion of the master plan, Keppel Land plans to commence development of a pilot project subject to favourable market conditions. The Podium in Metro Manila has become the choice shopping destination of young working professionals in and around the CBD 145

Rental rates are projected to grow as consumer spending remains strong in Metro Manila Market Review Economy Economy Shows Resilience Despite Fiscal Problems The Philippines posted a commendable 6.1% GDP growth in 2004, the highest growth rate since 1989, on the back of strong performance of the agricultural and services sectors, and increased dollar remittances from overseas Filipino workers. The Philippine economy is expected to remain resilient in 2005. Remittances from Filipino workers abroad will likely remain strong, with the Central Bank projecting a 10% increase to about US$9.1 billion for 2005. The better-than-expected economic growth helped to reduce the government's fiscal deficit to 3.9% of GDP in 2004 from 4.6% in 2003. The Philippine government targets to further reduce its fiscal deficit to 3.3% of GDP in 2005. Inflation shot up to a high of 7.9% in 2004 from 3.1% in 2003, primarily due to rising oil prices and supply bottlenecks. However, interest rates are expected to remain stable despite inflationary pressures. Philippines 2003 2004E 2005F 2006F Real GDP growth (%) 4.7 6.1 4.8 4.3 Lending rate (av,%) 9.5 10.1 11.5 12.0 Inward FDI (US$Bn) 0.3 0.5 0.7 1.0 Exchange rate (Peso/USD) 54.2 56.0 56.5 57.0 Personal disposable income (US$Bn) 43.0 46.1 50.6 54.7 CPI change (av,%) 2.9 5.5 6.3 5.4 146 Source : EIU

Residential Healthy Demand for Middle-income Housing Quality middle-income residential developments within and around the CBDs continue to draw healthy end-user interest. The success of these housing projects are dependent on the right mix of location, product, developer's track record, affordability and availability of flexible financing schemes. Government efforts to keep the interest rates at its current levels help to make units affordable to buyers. As at end-2004, rental rates of luxury residential units in the Makati CBD increased by 9% year-on-year to 338 pesos psm per month. Likewise, capital values registered a 10% year-on-year increase to 70,400 pesos psm. The improvement was mainly due to a fall in new supply. However, the luxury residential sector remains soft given that affordability has become a main consideration among buyers and potential supply is still substantial. Rents and capital values will likely post about 5% increase in 2005. Office Rising Demand from Call Centres and Outsourcing Companies The supply overhang in the office market has eased considerably, mainly due to the increase in demand for office space by call centres and business process outsourcing companies. As at end-2004, all-grade vacancy rates in the Makati and Ortigas CBDs improved to 9.5% and 15% respectively compared with about 12% and 20% respectively a year ago. Average Grade A rents in Makati CBD posted a 10.7% year-on-year growth to 537 pesos psm per month, while rents in Ortigas CBD posted an 8.3% year-on-year growth to 325 pesos psm per month. Capital values in the Makati and Ortigas CBDs also grew by 12% and 7.5% to 70,000 pesos psm and 43,000 pesos psm respectively. Given that the expected new supply of about 30,100 sm in the Makati CBD have been pre-committed under the build-to-suit scheme offered by its developers to call centre clients, vacancy rates in the Makati and Ortigas CBDs are expected to improve further to 7% and 12% respectively by end-2005. Rents and capital values are also expected to show an upward adjustment of about 12-14% in 2005. Retail Rental Rates to Rise Further in 2005 As at end-2004, the supply of leasable retail space in Metro Manila increased by 7.7% to 3.7 million sm. With the additional supply, vacancy rate inched up marginally from 14.4% as at end-2003 to 14.7% as at end-2004. Given the stiff competition in Metro Manila, developers continued to expand in provincial growth areas to maintain their market share. As consumer spending remains strong, rental rates in the Makati and Ortigas CBDs posted a 6.8% and 6.7% increase to 1,100 pesos psm per month and 875 pesos psm per month respectively. Rental rates are projected to post a 10% growth in 2005 although leasable mall space is expected to increase at a similar rate to 4.1 million sm by the end of this year. 147

Thailand 1. A Directors Orientation programme was initiated in early 2002 for all newly appointed directors to Board. Keppel Thai Properties will develop its range of quality residential projects under the Arcadia brand Keppel Thai Properties Public Company Ltd (KTP) is 45.45% owned by Keppel Land and is listed on the Stock Exchange of Thailand. KTP currently has two residential projects in Bangkok under the "Arcadia" brand. Villa Arcadia at Srinakarin KTP is currently focusing its efforts on the development and marketing of the 16-ha residential estate located at Srinakarin, about 17 km southeast of Central Bangkok. Named Villa Arcadia at Srinakarin, the development comprises 367 units of landed detached housing. To be sold on a fully-fitted basis, with a modern-tropical design and high quality standards, the development is aimed at the middle to upper-middle market segments. The gated housing development comes with a comprehensive array of clubhouse and sporting facilities and 24-hour security. Some 31 out of 50 units launched were sold as at the end of February 2005. Villa Arcadia at Watcharapol KTP will further build on the "Villa Arcadia" brand name with the development of its second detached housing development on a 12.5-ha site located at Watcharapol, about 30 minutes drive north of Bangkok City. Watcharapol is an established upper-middle class suburb with good and easy access to major amenities and highways. The development, which comprises 270 detached housing units, is targeted to be launched for sale in the second half of 2005. Earthworks have been substantially completed and construction of show units is under way as at the end of 2004. KTP seeks to further extend its presence in Thailand through acquisition of more land within the Greater Bangkok area and in other cities with good growth potential. 148

Market Review Economy Continued Growth in 2005 Thailand turned in a GDP of 6.1% in 2004, demonstrating the resilience of the economy, despite a series of events such as the bird flu outbreak, unrest in the Southern provinces and the fluctuating oil prices. Coupled with concerns over rising interest rates, these events have lowered overall consumer and business sentiment. Thailand's economy will continue to expand, albeit at a slower pace, in 2005. A strong rebound in consumption, recovery in tourism revenue and economic spin-off from the post-tsunami reconstruction efforts will underpin growth. Proactive efforts on the part of the government to curb excessive bank lending for housing development and tighten credit terms for home ownership should keep over-building and speculative buying in check. Supply could see some consolidation with marginal players being edged out of the market, giving the stronger players greater pricing power and better competitive edge in the niche product segments. Looking ahead, we expect residential demand to reflect the ongoing health of the economy. The continued rise in household income, favourable population demographics and strong urban growth, together with fast-expanding transport infrastructure, will continue to fuel demand growth in 2005. Residential Steady Growth Ahead The slower take-up in the first half of 2004 was due to an earlier spike in homebuying in 2003 precipitated by the expiry of government tax incentives at end 2003. Demand recovered steadily in second half of 2004. 62,796 residential units were added to the Bangkok Metropolitan Area during the year. Overall supply and demand levels for 2004 were in balance. Progressive and sustainable growth is the new mantra for both government and industry players going forward. The expansion of new mass transit networks and highways, together with the completion of the new Suvarnabhumi International Airport, should provide viable opportunities for the middle to upper-middle market detached housing developments in the vicinity of Bangkok City. The detached housing market will continue to grow at a steady rate. Healthy economic growth and a high level of end-user interest will bolster demand for detached houses. Supply should continue to expand in 2005 but at a slower pace than the previous year. Thailand 2003 2004E 2005F 2006F Real GDP growth (%) 6.9 6.1 4.9 4.6 Prime lending rate (av,%) 5.9 5.5 6.5 7.0 Inward FDI (US$Bn) 2.0 2.0 2.5 2.7 Exchange rate (Baht/USD) 41.5 40.3 37.9 37.0 Personal disposable income (US$Bn) 78.8 87.2 98.7 106.3 CPI change (av,%) 1.8 2.7 3.2 2.4 Source : EIU 149

Vietnam Ho Chi Minh City Saigon Sports City Keppel Land together with Hong Kong-based Chiap Hua Group, is developing Saigon Sports City, a good class residential township on a 74-ha site in Ho Chi Minh City (HCMC), Vietnam. The development, the first of its kind in Vietnam, introduces Vietnamese to a healthy lifestyle development concept and is positioned to meet the growing demand for well-planned and professionally managed residential estates in HCMC. 1 Flanked by two scenic rivers, the township is located in HCMC's prime An Phu Ward in District 2, about 25 minutes' drive from the CBD and is easily accessible via the Hanoi Highway. One of the largest developments in Vietnam for Keppel Land, Saigon Sports City will be a fully integrated residential, commercial and recreational / sporting hub which will be developed in phases. It will comprise high-rise condominiums, landed housing, retail centres, recreational facilities and public sports amenities, targeted at the upper-income market. The first phase of the development comprising 782 high-rise apartments, will be launched in the second half of 2005. Keppel Land holds a 90% stake in the company, and Hong Kong's Chiap Hua Group holds the remaining 10% stake. The investment licence for Saigon Sports City, which was granted by the Ministry of Planning and Investment in August, is one of the first given to a 100% foreign-owned enterprise to develop and sell residential properties in the country. 2 1&2 - The masterplan for Saigon Sports City was unveiled in a ceremony graced by Singapore s Minister of National Development, Mr Mah Bow Tan in HCMC 150

Jointly developed by Keppel Land (90%) and Hiep Hoa Phat Company (10%), the development received its investment licence from the Ministry of Planning and Investment in August 2004. Saigon Centre Keppel Land owns 68% of Saigon Centre, a landmark mixed-use development strategically located in the prime central business district in HCMC. Villa Riviera has received its investment licence from Vietnam s Ministry of Planning and Investment Villa Riviera Villa Riviera, a unique waterfront development, is located along the scenic Saigon River. Hailed as HCMC's finest waterfront address, Villa Riviera is a gated residential development of 113 villas complemented with a host of resort style facilities. Situated in the elite neighbourhood of An Phu Ward in District 2 in HCMC, the enclave is a much sought-after location among the expatriate community and high-income locals. The site enjoys close proximity to the International School, British International School and two-foreign developed serviced apartments and is well served by major arterial roads. Travelling time to the CBD is a 15 minutes' drive. Laid out over a sprawling 6-ha site, Villa Riviera will feature quality amenities and facilities with 24-hour security, a clubhouse, a gymnasium, an infinity-edge swimming pool and a tennis court set in a tropical resorttheme garden. The 3-storey villas have land plot sizes ranging from 300 sm to 550 sm and feature 4- and 5- bedrooms in eight different layouts. Soft launched in September 2004, Villa Riviera has received very encouraging response. To date, 14 out of 25 units launched have been sold. To be developed in phases, this 2-ha site will comprise international-standard office buildings, serviced apartments and a hotel inter-linked by a retail podium when fully completed. Phase One, a 25-storey mixed-commercial building comprising a three-storey retail podium, 11 levels of offices, a business centre and town club, and 89 units of serviced apartments and three levels of basement carpark was completed in 1996. The preferred address of multinational corporations (MNCs), banking and financial institutions, Saigon Centre is a market leader in commercial properties in HCMC offering high standards of service and management. The office and retail components are 100% leased and the serviced apartments, Sedona Suites HCMC, which is managed by Sedona Hotel International, enjoys a high occupancy rate of above 95%. Sedona Town Club, the business and recreational club within Saigon Centre, has also been the venue of a number of corporate functions and has played host to several international business delegations. Tamarind Park Tamarind Park is a proposed 20-storey apartment block to be developed according to market conditions. It is conveniently located in a quiet and exclusive enclave at Thai Van Lung Street in HCMC's prime District 1, which is popular with the expatriates and is only a stone's throw away from the city's commercial and shopping belt. Tamarind Park, which Keppel Land holds a 60% stake, will feature a total of 173 residential apartments complete with recreational facilities. 151

A favourite residential address among the diplomatic corps, businessmen and the discerning expatriate community, Sedona Suites Hanoi, managed by Sedona Hotel International, consistently commands a high occupancy in excess of 90% and is a market leader in terms of occupancy, rental rates and quality services. With its high level of service and management, Sedona Suites Hanoi has bagged many accolades and awards throughout the years. In 2004, Sedona Suites Hanoi, also won the Best Business Serviced Apartment Award in Hanoi conferred by the Vietnam Economic Times magazine for the third year running. Sedona Suites Hanoi is a market leader in occupancy, rental rates and quality services Keppel Land holds a 59% stake in this landmark development. Hanoi International Centre Known as the first modern office building in the capital of Vietnam and strategically located in Hanoi's Central Business and Financial District, International Centre is a prime office building offering 7,585 sm of office space. With its key location and quality services, International Centre enjoys full occupancy with an international tenant profile comprising MNCs, financial institutions, international airlines and blue-chip consultancy firms. Vietcombank Tower Vietcombank Tower, a 22-storey prime office building is the tallest office building and a prominent landmark in Hanoi city skyline. Vietcombank Tower offers 19,263 sm of prime office space with a panoramic city view. It enjoys 100% occupancy and is a preferred business address of MNCs, banking, financial and insurance institutions in Hanoi. Keppel Land holds a 6% stake in this Grade A office building. Keppel Land holds a 43% stake in this eight-storey Grade A office building in Hanoi. Royal Park Sedona Suites Hanoi Located adjacent to the tranquil and scenic Ho Tay Lake, Hanoi's largest lake, Royal Park Sedona Suites Hanoi comprises 175 serviced apartments and villas, and a clubhouse complete with a comprehensive range of recreational facilities and amenities. It is just 15 minutes' drive away from the bustling city. Vung Tau Petro Vietnam Towers Completed in mid-1997, Petro Vietnam Towers is the only international standard office building in the prime commercial district of Vung Tau City. Petro Vietnam Towers, which Keppel Land owns 12.9%, is a 10-storey Grade-A office building offering 12,465 sm of prime office space and has attracted tenants from the oil and gas, petrochemical and financial industries. It is currently close to 80% occupied. 152

Market Review Economy Economic Reforms Underpin Strong Growth Vietnam with growth of 7.7% in 2004, has remained on course with its economic reforms. GDP growth for 2005 is anticipated to be 8.5%, underpinned by strong exports, higher foreign direct investments, and domestic consumption driven by the government's expansionary fiscal policies. To maintain a robust and sustainable economic growth, the government is charting a socio-economic development plan for the next five years, aiming at an annual average GDP growth of 7.5%-8.0% and the creation of eight million jobs. The Bilateral Trade Agreement with the US in 2001 has brought positive ripple effects in the economy with significant increase in exports to the US from US$1.8 billion in 2001 to US$5.2 billion in 2004. This is forecast to reach US$6.2 billion in 2005. The tourism industry has flourished, with the number of foreign tourists visiting Vietnam increasing markedly from 1.6 million in 1996 to 2.9 million in 2004. The country is aiming for 3.5 million foreign visitors in 2005 and 6.0 million in 2010. Vietnam is on the verge of economic take-off and is enjoying an increased inflow of foreign direct investment (FDI). Total inflow of FDI in 2004 amounted to US$4.2 billion, an increase of 35% year-on-year, above the government's target of US$3.2 billion. The country is targeting new FDI at US$4.5 billion for 2005 and will continue to improve legal framework and transparency, offer tax incentives and further liberalise land laws to boost it. To create healthy business competition and a level playing field, the government has enacted the Competition Law, which will take effect on 1 July 2005. The government will also embark on restructuring state-owned enterprises. With political stability and implementation of more economic reforms, Vietnam has been accorded high ratings by various foreign agencies and the World Bank. Vietnam has indicated its earnestness to join the World Trade Organisation (WTO) in 2005 and has commenced bilateral negotiations with major economies, and is preparing its enterprises for adjustment on WTO accession. The country has also pledged full realisation of Asean Free Trade Area in 2006. These initiatives are expected to further boost Vietnam's competitiveness and economic growth, positioning Vietnam as a choice investment destination. Vietnam 2003 2004E 2005F 2006F Real GDP growth (%) 7.2 7.7 7.0 7.2 Prime lending rate (av,%) 9.5 9.7 10.2 10.5 Inward FDI (US$Bn) 1.6 2.0 2.3 2.3 Exchange rate (Dong/US$) 15,510 15,740 16,350 17,070 Personal disposable income (US$Bn) 23.0 25.3 26.6 28.2 CPI change (av,%) 3.1 7.8 7.2 4.9 Source : EIU 153

Market Review (cont d) Office Grade A Offices Enjoying High Occupancies and Rentals In HCMC, most Grade A office buildings are near full occupancy, a trend that appears likely to continue in the foreseeable future. Rental rates have improved markedly in 2004, achieving an average rate between US$25 and US$30 psm per month. Demand for Grade A offices will remain strong, fuelled by company expansion, the entry of new MNCs and business set-ups, and upgrading by local companies to better quality office buildings. Rental rates for Grade A offices are expected to rise further, driven by city's high GDP growth, very limited Grade A office stock and no new supply. In Hanoi, better economic outlook and growing private-sector demand has increased demand for prime office space. Occupancy for Grade A offices in CBD exceeds 95% and average rental rates are between US$20 and US$25 psm per month. Rental rates and occupancy for Grade A office building in prime locations will remain at a healthy level in the near to mid term. Residential Active Leasing Market for Serviced Apartments In HCMC, the Grade A serviced apartment sector continues to enjoy high occupancy rate above 95% and commanding rental rates between US$25 and US$30 psm per month. Fuelled by MNCs expansion and new company set-ups, return of expatriates and business travellers seeking opportunities, rental rates have appreciated 10% year-on-year. With a limited Grade A apartment stock in the city and a limited supply in the pipeline, rental rates for Grade A serviced apartments in CBD location is expected to appreciate further in near term. In Hanoi, the robust economy and return of business travellers seeking short-term leases has seen the Grade A serviced apartment market improved steadily with active leasing arrangements. Professionally managed serviced apartments continue to enjoy average occupancy rate of above 90% and average room rates of between US$17 and US$22 psm per month. Strong and Sustainable Demand for Local Housing The residential real estate market for Vietnam has seen a tremendous change. Vietnam's steady economic growth, and its large annual overseas remittance of more than US$3 billion per year, has sparked a soaring demand for good quality accommodation. The economy's steady growth at 7.5% is adding to the ranks of the fast-growing middle-class. As more locals are aspiring for a better lifestyle, and to own a home in well-planned and managed residential areas, the residential market is anticipated to grow further in the near to mid term. With few other options for investments and a stock market still in its infancy, real estate is becoming a popular avenue for investment. Inevitably, demand and prices have risen accordingly. The New Land Law, which came in effect on 1 July 2004, will impede land speculation and weed out speculative developers. This will benefit developers with sound financial and development expertise. Likewise, the liberalisation of the Land Law promoting home ownership and the eventual opening up of the residential market to foreign investors will boost demand for good quality housing in prime locations. 154

Sedona Hotels International Despite rising competition, Sedona Suites in Hanoi and Ho Chi Minh City performed well in maintaining its market leadership, enjoying healthy occupancies of 90.6% and 93.3% respectively in 2004. Sedona Suites are renowned to be among the best in Vietnam for its impeccable and gracious service, and are popular among the foreign diplomats and working expatriates. Both properties set new benchmarks in Vietnam's hospitality industry, winning consistently the coveted Guide Awards, conferred by the Vietnam Economic Times magazine. Sedona Suites are renowned for their impeccable service and are popular with the expatriate community Sedona Hotels International Sedona Hotels International, the hospitality arm of Keppel Land, continues to deliver its brand of quality comfort and service to its guests. Despite the ongoing trade sanctions, which continue to threaten Myanmar's economic and trade development, the Group's hotels in Myanmar achieved higher occupancies in 2004 than the previous year. Sedona Hotel Yangon increased its room occupancy by almost 20% over 2003, whilst Sedona Hotel Mandalay increased its room occupancy by 14%, contributing to a significant 30-40% rise in gross operating profit at both hotels. The improved performance was attributed to attractive tour packages sold by consortiums of travel agents appointed by airline partners, as well as increased sales from the government and corporate market segments. Hotels and Serviced Apartments Managed by Sedona Hotels International Country Name of Hotel Location No. of Rooms Indonesia Hotel Sedona Manado* Manado 247 Myanmar Sedona Hotel Yangon Yangon 366 Sedona Hotel Mandalay Mandalay 247 Vietnam Sedona Suites Ho Chi Minh City 89 Ho Chi Minh City Sedona Suites Hanoi Hanoi 175 Total 1,124 * Not open yet. 155

Marketing Initiatives Sales and Marketing Promotions Both Myanmar and Vietnam appeal to avid travellers who are on the constant lookout for off-beaten track destinations. To reach out to this market segment, business alliances are forged with trade partners in the airline and travel agency industries to develop sales and promotion initiatives, targeting largely at the leisure market segment in Asian cities such as Singapore, Malaysia, Thailand, India, Taiwan, Hong Kong and China. An effective joint marketing cooperative that involves tying up with credit card companies and local clubs to offer exclusive accommodation packages to their members has yielded good results. Such co-operative programmes help to elevate awareness of Sedona's offerings and in turn generate more business deals for the hotels. More efforts will be put in place to strengthen Sedona's brand in the region. Online Business Sedona's informative website at www.sedonahotels.com.sg presents the most updated news and hotel offerings to online customers. The user-friendly website offers real-time online booking and instant confirmation services. With the proliferation of online hotel reservations, Sedona expands its working partnership with consumer travel sites that have mass market reach. Many of these third-party travel sites have produced good business volume for the hotel group. Sedona s joint marketing initiatives with credit card companies and local clubs have yielded results Building Market Presence Sedona's advertising strategy positions the hotels as the preferred choice for both discerning corporate and leisure travellers. Print advertisements are featured in local newspapers and in-flight, consumer travel and travel trade magazines to maximise exposure and maintain brand awareness amongst the consumers and travel trade partners. To further gain brand visibility in the international market, the hotel group participated in major trade shows during the year such as Asean Tourism Forum and International Tourism Bureau. Regular sales visits to key overseas outbound agents are also made to foster closer business relationships. 156

Market Review General Outlook Destinations in the Asia-Pacific region, in particular North-East and South-East Asia, have seen tourism trade bounced back from the huge losses suffered in 2003 due to SARS. Though the Avian Flu erupted in the first quarter of 2004, the travel market rebounded very quickly when the situation was contained. Travellers have since restored their confidence in the region. For the whole of 2004, preliminary figures released by the World Tourism Organisation showed a spectacular rebound in tourism as all regions saw a surge in international arrivals. The number of international tourist arrivals reached an all-time record of 760 million in 2004, an increase of 10% or 69 million from 2003. Asia-Pacific led with an exceptional increase of 29% for the year compared to a 9% loss in 2003 when regional travel was hit by the Iraq war, the SARS epidemic and weak economic conditions. Impact from the recent tsunami disaster on regional tourism is expected to be short-lived, with limited damage to the broad economy. Travel confidence is seen returning gradually and tourist arrivals for affected countries will likely recover in a few months' time. Myanmar Despite the economic sanctions imposed by the US, tourist arrivals into Myanmar rose by about 10% to 656,910 in 2004. The country targets to attract 750,000 tourists in 2005, which corresponds to a projected increase of 14% from 2004. To achieve its goal, Myanmar is working on more tourism projects and has launched promotional campaigns in neighbouring Asian countries to boost arrivals. In the long run, Myanmar targets to attract 1.5 million arrivals per annum by 2010 and 2.4 million by 2015. The targets are part of a draft master plan to attract more than 35 million tourists per annum by 2010 and over 47 million arrivals per annum by 2015 to the Greater Mekong subregion, which is made up of China, Cambodia, Laos, Myanmar, Thailand and Vietnam. Vietnam Vietnam welcomed about 2.9 million overseas visitors in 2004, an increase of 20.6% over 2003. One major boost to tourism was the increase in international flights into the country and the waiver of travel visa for citizens of regional countries like Thailand, the Philippines, Malaysia, Indonesia, Singapore, Laos, Japan and South Korea. Efforts were also undertaken by the tourism industry to upgrade existing tourist spots and develop new ones to attract more visitors. The years ahead look promising for Vietnam as the tourism authorities plans to open its first two international representative offices in Japan and France to further promote the country as an attractive tourist destination. Work has also started on a new terminal at Vietnam's busiest airport in Ho Chi Minh City. The new airport development will help attract more airlines to Vietnam, thus helping to bring in more travellers and tourism receipts, pushing the tourism trade to greater heights. 157

Target on ace

We master strokes combining vision, precision and distance control for competitive advantage

SIGNIFICANT EVENTS 2004 1 2 January The Company recorded a net profit before exceptional items of $126.4 million for 2003. February Keppel Land was ranked the third "Most Transparent Property Company" out of 180 property companies in the Asia Pacific by the National University of Singapore. Companies were appraised on the transparency of their annual reports, corporate website clarity as well as analysts' coverage. March Keppel Land was awarded the "Most Distinguished Foreign Enterprise" title in Jingan District, Shanghai. Handpicked from some 400 nominees, the Company s award was conferred by the Jingan government upon Shanghai Merryfield Land Co, a wholly-owned subsidiary of Keppel Land. May Keppel Land was ranked sixth among Singapore companies in a corporate governance survey by BusinessWeek and the US-based Institutional Shareholder Services, beating other local real estate companies. June The Group increased its stakes in Crest@Cairnhill and Parc Devon to make these projects wholly-owned. Keppel Land and Chip Eng Seng Corporation (CES) will jointly develop a residential development in Devonshire Road on a 7,400 sm amalgamated site, consisting of the Company s Parc Devon and CES' recently acquired Quelin Gardens. July The Company was ranked top five amongst 45 Straits Times Index companies in a study on corporate governance disclosure conducted by Standard and Poor's Governance Services and the Corporate Governance and Financial Reporting Centre at the National University of Singapore. Asia No.1 Property Fund, a pan-asian direct real estate fund jointly managed by Henderson Global Investors and Alpha Investment Partners, purchased an office building located in the Yeouido District in Seoul, Korea for US$38 million. This is Asia No.1 Property Fund's first acquisition in South Korea. Keppel Land entered into a Collaboration Agreement with Puravankara Projects, a leading residential developer in Bangalore, to form a 51:49 joint venture to purchase and develop a 23.9-acre (9.7-ha) site into a high-rise condominium development. The Seasons, a 1,859-unit condominium project in Chao Yang District in Beijing, was officially launched. 160

3 4 August Keppel Land was awarded the investment licence to develop a 113-villa development, Villa Riviera, in Ho Chi Minh City. (1) The Group was also given the licence to proceed with another residential development, Saigon Sports City, in Ho Chi Minh City. The 74-ha integrated residential, commercial and recreational hub will introduce Vietnamese to a healthy lifestyle development concept. (2) BP Singapore signed an agreement to lease 65,000 sf ft of space in Keppel Bay Tower, an 18-storey office tower jointly developed by Keppel Land, Keppel Corporation and The HarbourFront Pte Ltd. Caribbean at Keppel Bay held an open house over two consecutive weekends as part of the launch of its second phase of 135 units. (3) September Asia No.1 Property Fund bought 15 apartment units at Goodwood Gardens along Balmoral Crescent for about $23 million. At the Securities Investors Association (Singapore) s fifth Investors' Choice Awards, Keppel Land was runner-up for the "Most Transparent Company" in the properties sector and also picked up the honours for the "Singapore Corporate Governance Award" category. October ABN AMRO commits to 160,000 sq ft of office space at One Raffles Quay (ORQ), the largest office leasing transaction since 1998. The take-up amounts to around 12.5% of the development, or nearly 30% of ORQ's South Tower. November The Waterfront, a 1,143-unit condominium project in Chengdu, was officially launched. (4) December Keppel Land, through its subsidiaries, entered into a joint venture with PT Modernland Realty Tbk, a listed property developer on the Jakarta Stock Exchange, to purchase a 270-ha land for township development in Cakung, Jakarta. The Group acquired Shanghai Minghong Property Co. which owns a 153,726 sm residential site in Xujing Town, Qingpu District in Shanghai for RMB296 million (S$58 million). The site will be developed into a 186-unit premier villa development. In the Business Times Corporate Transparency Index, Keppel Land was ranked among the top 6% of 570 companies for its FY2003 financial results disclosure. 161

AWARDS AND ACCOLADES Corporate Awards Storebrand's "Best in Class" status for its Leading Environmental and Social Performance The "Best in Class" status for environment and social performance is awarded by leading Norwegian financial institution Storebrand. Only companies in the top 30 percentile of Storebrand's Corporate Social Responsibility Performance Analyses are considered best in class, and qualify for participation in its investment universe. Ranked among Top Singapore Companies in Singapore International 100 Organised by International Enterprise Singapore and DP Information in collaboration with the Singapore Business Federation and Business Times, the Singapore International 100 recognises Singapore's top 100 companies ranked by the highest overseas revenue. Corporate Transparency Awards Among Top Five Companies in Standard & Poor s and National University of Singapore Corporate Governance Study The Group emerged among the top five companies in terms of corporate governance disclosure in a study of 45 companies on The Straits Times Index by Standard & Poor s and the Corporate Governance and Financial Reporting Centre at the National University of Singapore in July 2004. 1 Ranked Sixth among Singapore Companies in Institutional Shareholders Services and Business Week Corporate Governance Survey In a corporate governance survey conducted by US-based Institutional Shareholder Services and Business Week in May 2004, Keppel Land was ranked sixth among Singapore companies. Covering 1,785 non-us companies from Canada to Japan, Keppel Land also came up top among real estate companies in Singapore. 162 Runner-up under Property Category for Most Transparent Company Award at SIAS Investors' Choice Awards This is the fifth time running that the Group has won the award, organised by SIAS to encourage and promote corporate transparency in Singapore.

Companies are nominated by fund management firms, stockbroking and research houses, as well as the media. They are then assessed over a year, based on criteria such as timeliness of corporate disclosure, frequency, clarity and substantiality of their announcements, as well as willingness to reveal information to analysts and the media. 1st Runner-up in Best Annual Report Award in the 30th Annual Report Awards Competition This Award for the most outstanding annual report is based on criteria such as transparency, adequacy of disclosure and presentation of information. The Group has won the award for five consecutive years previously, and has to-date bagged many years of awards including winning the Grand Award eight times. FIABCI is the French acronym for the International Real Estate Federation which organises the competition to recognise the best in world real estate developments. The competition is judged by an international panel of experts with regard to criteria such as construction, brokerage, facilities management, marketing strategy, impact on the local community and benefit to the environment. HarbourFront Tower One and Keppel Bay Tower Win Construction Excellence Award The office buildings won the award in the commercial/ mixed development buildings category of the Building and Construction Authority's Construction Excellence Award 2004. The award was conferred based on the architectural, M&E and structural aspects of the buildings. The competition is sponsored by the Institute of certified Public Accountants of Singapore, Securities Investors Association (Singapore) (SIAS), Investment Management Association of Singapore, Singapore Institute of Management, Singapore Institute of Directors, Singapore Exchange Securities Trading Limited (SGX) and The Business Times. Ranked within Top 6% of 570 Companies in the Business Times Corporate Transparency Index In the 2004 Business Times Corporate Transparency Index, the Group was ranked within the top 6% of 570 companies for its FY2003 financial results disclosure in a newly reconstituted index. Awards for Excellence in Product Quality Singapore Prudential Tower Emerged Winner in the Office / Industrial Category of the FIABCI Prix d' Excellence 2003 Awards (1) Prudential Tower, the Group's office tower in the Central Business District, won the office / industrial category of the FIABCI Prix d'excellence 2003 Awards which is considered the real estate industry's Oscars. This is Keppel Land's fourth FIABCI citation in three years, having previously won commendations for Villa Verde, Bugis Junction and Capital Square. InterContinental Singapore Voted as One of the Top Seven Best Business Hotels in the World The hotel was voted for its world-class facilities, modern amenities, outstanding services and a host of superb facilities. Excellent Effort in Mall Maintenance Award for Parco Bugis Junction The shopping centre was recognised for its impeccable management services by the Singapore Retailers Association in October 2004. The award, a new initiative, falls under the shopping centre scorecard category, where retailers assessed and voted their mall operators based on several criteria including advertising and promotion efforts, maintenance efforts as well as tenant relationship. Parco Bugis Junction among Top Three in Best Christmas Shopping Experience Contest This is the second consecutive year that Parco Bugis Junction has emerged among the top three in the contest which is organised by the Association of Shopping Centres. Participating malls in Singapore were judged on their Christmas decoration and ambience, range and price of merchandise, service, promotions, entertainment and other value-added services like gift-wrapping, complimentary gifts and lucky draws. 163

Parco Bugis Junction as Finalist in Best Shopping Centre Experience Award For the third year running, Parco Bugis Junction was a finalist in the Best Shopping Centre Experience Award conferred by the Singapore Tourism Promotion Board. Overseas One Park Avenue Ranks among Shanghai's Top 50 Best Selling Residential Properties The award-winning condominium project was listed among the Top 50 Best Selling Residential Properties in Shanghai 2003 in terms of floor area and sales by the Shanghai Real Estate Exchange Centre. Advanced Group Prize for Shanghai Merryfield Land Shanghai Merryfield Land, Keppel Land's subsidiary in Shanghai, was bestowed the Advanced Group Prize by the Shanghai Municipal Construction and Management Committee for the Park Avenue Precint. 2 Awards for The Seasons, Beijing (2&3) The Seasons in Beijing garnered: - Best Landscaping Award by Beijing's Xin Jing Bao - 2005 Most Anticipated Project Award by An Jia magazine - 2004 China Innovative New Project Award and 2004 China Quality Property Developer Award by Sina.com Keppel Land ranked Top 10 Real Estate Corporations in Beijing by Beijing's Lifestyle Guide publication and won the Fastest Growing Developer Award by Beijing Youth Daily. 3 Awards for The Waterfront, Chengdu The condominium project in Chengdu won the following accolades: - Most Investment-Worthy Residential Project in Chengdu "GOLD" Award, 2004 by Chengdu Bureau of Statistics and Chengdu Housing Bureau - Exemplary Fitted Unit in Chengdu by Sichuan Residential Property Association and Sichuan Construction Quality Association - 2004 Most Habitable Development in Chengdu by Chengdu Shang Bao (under United Nations auspices) 164

- Best Landscaping Concept and Design by International Federation of Parks and Recreation in 2004 (under United Nations auspices) - Most Eagerly Anticipated Property in Chengdu, 2004 by Chengdu Shang Bao - Most Influential Property Brand, 2004 by Chengdu Housing Bureau - Most Valued-for-Money Property, 2004 by Chengdu Housing Bureau Awards for The Botanica, Chengdu The residential township in Chengdu received: - 2004 Recommended New Project with Good Investment Value by Chengdu Shang Bao - Chengdu 2004 Most Trustworthy Developer Award by Chengdu Real Estate Management Board - 2005 Top 10 Developments - 1st Position by Western China City Daily and China Housing Industry Exposition (Chengdu) Organising Committee - 2004 Sichuan Top 10 Residential Project - 4th Position by Western China City Daily and China Housing Industry Exposition (Chengdu) Organising Committee Keppel Land was awarded the following: - 2004 Sichuan Top 50 Real Estate Developer - 13th Position by Western China City Daily and China Housing Industry Exposition (Chengdu) Organising Committee - My Favourite Golf Resort Award and Best Caddy Service Golf Club Award by China Golf Magazine in December 2004 - Best Corporation Award for Spring City and Best Corporate Businessman Award for General Manager, Projects by the Kunming Municipal Government in the 7th Annual Award in April 2004 Ria Bintan Golf Club Ranked Best Golf Course in Indonesia 2004 In 2004, Ria Bintan Golf Club was named the 'Best Course in Indonesia' by Asian Golf Monthly. Best Luxury Serviced Apartments Awards for Sedona Suites Hanoi (4) Sedona Suites Hanoi has been awarded the Best Luxury Serviced Apartments in Hanoi, making it a 'Three-peat' or 'Three-in-a-row' since the inauguration of the award by the Vietnam Economic Times magazine. Best Luxury Serviced Apartments Award for Sedona Suites Ho Chi Minh City (HCMC) Sedona Suites HCMC has also been awarded Best Business Serviced Apartments in HCMC by the Vietnam Economic Times magazine for the second year running. Global Accolades for Spring City Golf and Lake Resort - Best Golf Resort in Asia and Best Golf Course in China - First Runner-up by Asian Golf Monthly in April 2004 - Top 10 Golf Courses in China and Best Green in China by China Golf Magazine - Top 10 Golf Course in China Award and Best Green in China Award by Hong Kong Golf Digest in September 2004 4 165

REGIONAL NETWORK Singapore Office 1. Ocean Building 2. Ocean Towers 3. Keppel Towers 4. GE Tower 5. Prudential Tower 6. One Raffles Quay 7. The HarbourFront Office Park Residential 8. Pebble Bay 9. Nassim Woods 10. Cluny Hill Redevelopment 11. Avenue Park 12. Park Infinia at Wee Nam 13. Freesia Woods 14. The Linc 15. The Belvedere 16. Amaranda Gardens 17. The Tresor 18. Urbana 19. Naga Court 20. Caribbean at Keppel Bay 21. Keppel Bay 22. 283C and 283G Pasir Panjang Road 23. The Callista 24. The Elysia 25. The Crest @ Cairnhill 26. Devonshire Road Site Mixed Development 27. Bugis Junction* 28. Heritage Court 29. Joo Chiat Shophouses 30. 449A & 451A Geylang Road Industrial 31. Quartz Industrial Building 32. Orion Industrial Building Data Centre 33. Keppel Digihub Office Residential Mixed Development Industrial Data Centre Mass Rapid Transit Lines Expressway 33 16 13 11 17 10 19 9 14 12 25 26 24 23 27 8 31 30 15 32 29 22 18 28 3 4 2 5 1 6 21 7 20 166 * Includes InterContinental Singapore, Parco Bugis Junction and Bugis Junction Towers

Beijing 50 Seoul SOUTH KOREA JAPAN Tokyo CHINA INDIA MYANMAR Mandalay 70 Kunming 73 Chengdu 51 52 Shanghai Fuzhou 48 49 47 53 Bangalore 55 Hanoi 40 71 54 Hong Kong Yangon 69 THAILAND 65 Bangkok 62 64 VIETNAM 58 56 57 59 60 PHILIPPINES 61 63 72 43 44 41 42 Ho Chi Minh City MALAYSIA 67 Manado Property Hotels/Serviced Apartments Resorts 46 Batam 45 75 74 SINGAPORE Bintan 66 Jakarta INDONESIA 39 37 38 68 Yogyakarta 36 35 76 Bali Surabaya AUSTRALIA Overseas Property Australia 34. Botanic Cove, Sydney Indonesia 35. Galleria Tunjungan, Surabaya 36. BG Junction, Surabaya 37. Cakung Residential Township, Jakarta 38. Pasadenia Garden, Jakarta 39. Wisma BCA, Jakarta 49. Villa Development at Xujing, Shanghai 50. The Seasons, Beijing 51. The Waterfront, Chengdu 52. The Botanica, Chengdu 53. Mixed Development, Fuzhou Hong Kong 54. The Waterfront at Kowloon Station, Hong Kong India 55. Residential Development, Bangalore Hotels/Serviced Apartments Indonesia 66. Club Med Ria Bintan 67. Hotel Sedona Manado 68. Melia Purosani Hotel, Yogyakarta Myanmar 69. Sedona Hotel Yangon 70. Sedona Hotel Mandalay Sydney 34 Vietnam 40. International Centre, Hanoi 41. Saigon Centre, Ho Chi Minh City 42. Tamarind Park, Ho Chi Minh City 43. Villa Riviera, Ho Chi Minh City 44. Saigon Sports City, Ho Chi Minh City Malaysia 45. Taman Sutera, Johor Baru 46. Taman Jernih, Penang China 47. Ocean Towers, Shanghai 48. Park Avenue, Shanghai Philippines 56. SM-KL Towers, Metro Manila 57. Palmdale Heights, Metro Manila 58. Metro North Township, Quezon City 59. Landbank in Cebu 60. Sampaguita Ville, Cebu Thailand 61. Jewellery Centre, Bangkok 62. Sukhaphiban 3 Mansion, Bangkok 63. Residential Landbank at Highway 332 in Sattahip 64. Villa Arcadia at Srinakarin, Bangkok 65. Villa Arcadia at Watcharapol, Bangkok Vietnam 71. Sedona Suites, Hanoi 72. Sedona Suites, Ho Chi Minh City Resorts China 73. Spring City Golf & Lake Resort, Kunming Indonesia 74. Ria Bintan 75. Nongsa Point Marina, Batam 76. Tanah Lot Resort, Bali 167

Homes by the sea at Caribbean at Keppel Bay

STATUTORY REPORT AND ACCOUNTS

Directors Report For the Year ended 31 December 2004 The Directors submit their report together with the audited consolidated financial statements of the Group for the year ended 31 December 2004 and balance sheet of the Company as at 31 December 2004. 1. Directors The Directors of the Company in office at the date of this report are: Lim Chee Onn, Chairman Kevin Wong Kingcheung, Managing Director Thai Chee Ken Khor Poh Hwa Lim Ho Kee Tsui Kai Chong Lee Ai Ming Tan Yam Pin Niam Chiang Meng Choo Chiau Beng Teo Soon Hoe The Directors holding office at the end of the financial year and their interests in the share capital of the Company and related companies as recorded in the register of Directors shareholdings were as follows: At 1.1.04 or Date of Appointment At 31.12.04 At 21.1.05 Interest in the Company (Shares of 50 cents each): Kevin Wong Kingcheung 256,400 256,400 256,400 Lim Ho Kee - 150,000 150,000 Interest in share options in the Company: Kevin Wong Kingcheung 883,000 1,083,000 1,083,000 Interest in Keppel Corporation Limited ( KCL ) (Shares of 50 cents each): Lim Chee Onn 600,083 817,083 817,083 Khor Poh Hwa 10,000 - - Tan Yam Pin (Deemed interest) - 65,000 65,000 Choo Chiau Beng 377,583 544,583 544,583 Teo Soon Hoe 767,166 934,166 934,166 Interest in share options in KCL: Lim Chee Onn 1,377,000 1,470,000 1,470,000 Choo Chiau Beng 1,047,000 1,110,000 1,110,000 Teo Soon Hoe 1,047,000 1,110,000 1,110,000 Interest in Keppel Telecommunications & Transportation Limited (Shares of 20 cents each): Lim Chee Onn 23,000 23,000 23,000 Choo Chiau Beng 26,000 26,000 26,000 Teo Soon Hoe 28,000 28,000 28,000 170

1. Directors (cont d) At 1.1.04 or Date of Appointment At 31.12.04 At 21.1.05 Interest in Keppel Philippines Holdings Inc ( B shares of 1 Peso each): Lim Chee Onn 2,000 2,000 2,000 Choo Chiau Beng 2,000 2,000 2,000 Teo Soon Hoe 2,000 2,000 2,000 Interest in Keppel Philippines Marine Inc (Shares of 1 Peso each): Lim Chee Onn 246,457 246,457 246,457 Choo Chiau Beng 283,611 283,611 283,611 Teo Soon Hoe 302,830 302,830 302,830 Interest in Keppel Philippines Properties Inc (Shares of 1 Peso each): Teo Soon Hoe 2,916 2,916 2,916 Since the end of the previous financial year, no Director has received or become entitled to receive benefits under contracts required to be disclosed by Section 201(8) of the Companies Act, Cap. 50. Neither at the end of the financial year, nor at any time during the year, did there subsist any arrangements, to which the Company or any of its subsidiary companies is a party, whereby the Directors might acquire benefits by means of acquisition of shares in or debentures of the Company or any other body corporate other than the Keppel Land Share Option Scheme approved by shareholders at an Extraordinary General Meeting. In accordance with the Company s Articles of Association, the following Directors retire at the following Annual General Meeting, and being eligible, offer themselves for re-election: Lim Chee Onn Lim Ho Kee Tsui Kai Chong Heng Chiang Meng will be appointed as a Director on 1 March 2005. In accordance with the Company s Articles of Association, he will retire at the forthcoming Annual General Meeting and, being eligible, will also offer himself for re-election. 2. Options The particulars of share options of the Company are as follows: (a) The Keppel Land Share Option Scheme which has been approved by the shareholders of the Company is administered by the Remuneration Committee whose members are: Tan Yam Pin, Chairman Lim Ho Kee Tsui Kai Chong 171

Directors Report (cont d) 2. Options (cont d) (b) (c) (d) (e) Under the Keppel Land Share Option Scheme, an option may, except in certain special circumstances, be exercised at any time after two years but no later than the expiry date. The shares under option may be exercised in full or in respect of 100 shares or a multiple thereof, on the payment of the subscription price. The subscription price is based on the average last business done price for the shares of the Company on the Singapore Exchange Securities Trading Limited for the three market days preceding the date of offer. The Remuneration Committee may at its discretion fix the subscription price at a discount not exceeding 20 per cent of the abovementioned average market price. None of the options offered in the financial year was granted at a discount. The executive employees to whom the options have been granted do not have the right to participate by virtue of the options in a share issue of any other company. Options to take up 1,110,000 shares were granted to senior employees during the financial year. Altogether 2,060,500 shares were issued by virtue of the exercise of options, and options to take up 343,000 shares were cancelled during the financial year. At the end of the financial year, there were 9,423,000 shares under option as follows: Number of Share Options At 1.1.04 Date of or Date Cancelled/ At Expiry Subscription Value of Grant of Grant Exercised Lapsed 31.12.04 Date Price($) Options($) 5.3.99 373,000 (85,000) (10,000) 278,000 4.3.09 1.71 0.7938 20.8.99 1,061,000 - (50,000) 1,011,000 19.8.09 2.48 1.202 6.4.00 1,100,000 (105,000) (40,000) 955,000 5.4.10 1.87 0.9004 14.11.00 1,413,000 - (78,000) 1,335,000 13.11.10 2.47 1.203 11.10.01 2,381,000 (932,000) (31,000) 1,418,000 10.10.11 1.35 0.6185 7.8.02 3,347,500 (938,500) (134,000) 2,275,000 6.8.12 1.44 0.6407 10.2.03 520,500 - - 520,500 9.12.13 1.17 0.486 7.8.03 520,500 - - 520,500 6.8.13 1.48 0.6627 10,716,500 (2,060,500) (343,000) 8,313,000 11.2.04 520,000 - - 520,000 10.2.14 1.86 0.8193 11.8.04 590,000 - - 590,000 10.8.14 1.84 0.807 11,826,500 (2,060,500) (343,000) 9,423,000 The value of each option granted at the date of grant is estimated using the Black-Scholes model with a 5-year maturity. 172

(f) Information on Directors of the Company participating in the Keppel Land Share Option Scheme is as follows: Aggregate Aggregate Options Options Granted since Exercised since Commencement Commencement of the Keppel of the Keppel Aggregate Options Land Share Land Share Options Granted Option Scheme Option Scheme Outstanding as during the to the end of to the end of at the end of Name of Director Financial Year Financial Year Financial Year Financial Year Kevin Wong Kingcheung 200,000 1,802,360 326,400 1,083,000 (g) No employee has received 5 per cent or more of the total number of options available under the Keppel Land Share Option Scheme. 3. Audit Committee In relation to the accounts of the Company and the Group for the year ended 31 December 2004, the Audit Committee reviewed the audit plans and scope of the audit examination of the external auditors of the Company. The external and internal auditors findings on the internal controls of the companies within the Group, and management s response to these findings were also discussed with the auditors and management. The Audit Committee s activities included a review of the accounts of the Company and the Group for the year ended 31 December 2004, and the report of the external auditors thereon. The Audit Committee has recommended to the Board of Directors the re-appointment of Ernst & Young, Certified Public Accountants as external auditors of the Company at the forthcoming Annual General Meeting. The members of the Audit Committee are: Thai Chee Ken, Chairman Tsui Kai Chong Lee Ai Ming 4. Auditors The auditors, Ernst & Young, Certified Public Accountants, have expressed their willingness to accept re-appointment as auditors. On Behalf of the Board LIM CHEE ONN Chairman Singapore, 28 February 2005 KEVIN WONG KINGCHEUNG Managing Director 173

Statement by Directors For the Year ended 31 December 2004 We, LIM CHEE ONN and KEVIN WONG KINGCHEUNG, being two of the Directors of Keppel Land Limited, do hereby state that, in the opinion of the Directors: (a) (b) the balance sheets, consolidated profit and loss account, consolidated statement of changes in equity and consolidated cashflow statement, together with the notes thereon, set out on pages 176 to 214 are drawn up so as to exhibit a true and fair view of the state of affairs of the Company and of the Group as at 31 December 2004 and of the results and changes in equity, and cash flows of the Group for the year then ended; and at the date of this statement, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they fall due. On behalf of the Board LIM CHEE ONN Chairman KEVIN WONG KINGCHEUNG Managing Director Singapore, 28 February 2005 174

Auditors Report to the Members of Keppel Land Limited For the Year ended 31 December 2004 We have audited the accompanying financial statements of Keppel Land Limited ( the Company ) and its subsidiaries ( the Group ) set out on pages 176 to 214 for the year ended 31 December 2004. These financial statements are the responsibility of the Company s Directors. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Singapore Standards on Auditing. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the Directors, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, (a) (b) the consolidated financial statements of the Group and the balance sheet of the Company are properly drawn up in accordance with the provisions of the Singapore Companies Act, Cap. 50 ( the Act ) and Singapore Financial Reporting Standards so as to give a true and fair view of the state of affairs of the Group and of the Company as at 31 December 2004 and the results, changes in equity and cash flows of the Group for the year ended on that date; and the accounting and other records required by the Act to be kept by the Company and by those subsidiaries incorporated in Singapore of which we are the auditors have been properly kept in accordance with the provisions of the Act. ERNST & YOUNG Certified Public Accountants Singapore, 28 February 2005 175

Consolidated Profit and Loss Account For the Year ended 31 December 2004 Note 2004 2003 $ 000 $ 000 SALES 2 476,165 678,781 COST OF SALES (347,476) (512,391) GROSS PROFIT 128,689 166,390 Marketing expenses (2,732) (2,738) Administrative and other expenses (14,313) (35,681) OPERATING PROFIT 3 111,644 127,971 Interest and investment income 2 & 4 16,471 15,008 Interest expense 5 (23,964) (30,127) Share of results of associated companies 17 36,357 22,410 PROFIT BEFORE EXCEPTIONAL ITEMS 140,508 135,262 Exceptional items 6 - (25,800) PROFIT BEFORE TAXATION 140,508 109,462 Taxation 7 (2,881) (11,432) PROFIT AFTER TAXATION 137,627 98,030 Minority interests (4,347) 2,521 PROFIT ATTRIBUTABLE TO SHAREHOLDERS 133,280 100,551 Comprising : Profit before exceptional items but after tax and minority interests 133,280 126,351 Exceptional items after tax and minority interests - (25,800) Profit attributable to shareholders 133,280 100,551 Basic earnings per share (cents) 9 18.8 14.2 Diluted earnings per share (cents) 9 18.7 14.2 176 The notes shown on pages 182 to 214 form an integral part of the financial statements.

Balance Sheets As at 31 December 2004 Group Company 2004 2003 2004 2003 Note $ 000 $ 000 $ 000 $ 000 SHARE CAPITAL 10 355,975 354,946 355,975 354,946 RESERVES 11 1,250,831 1,131,958 1,250,831 1,131,958 SHARE CAPITAL AND RESERVES 1,606,806 1,486,904 1,606,806 1,486,904 MINORITY INTERESTS 225,627 206,302 - - LONG-TERM BORROWINGS 12 1,828,821 1,853,129 1,177,608 1,461,133 3,661,254 3,546,335 2,784,414 2,948,037 Represented by: FIXED ASSETS 13 265,922 242,028 73 78 INVESTMENT PROPERTIES 14 1,490,061 1,492,700 - - PROPERTIES HELD FOR DEVELOPMENT 15 186,437 195,147 - - INVESTMENTS Subsidiary companies 16 - - 2,585,270 2,638,598 Associated companies 17 891,466 841,458 297,799 381,796 Other investments 18 32,880 55,574 4,120 4,120 924,346 897,032 2,887,189 3,024,514 PROCEEDS FROM SALE OF RESIDENTIAL RECEIVABLES 19 - (302,000) - - CURRENT ASSETS Properties held for sale 20 1,123,939 1,171,861 - - Stocks 21 3,332 3,396 - - Debtors 22 164,799 133,844 19,389 27,561 Amounts owing by holding and related companies 23 24,362 27,228 3,420 3,761 Fixed deposits, bank balances and cash 24 392,924 500,926 7,485 151,879 1,709,356 1,837,255 30,294 183,201 Less: CURRENT LIABILITIES Creditors 25 531,549 495,697 6,567 5,477 Net tax provision 7 29,040 40,787 882 1,564 Short-term borrowings 26 325,812 247,816 121,240 247,816 886,401 784,300 128,689 254,857 NET CURRENT ASSETS/ (LIABILITIES) 822,955 1,052,955 (98,395) (71,656) DEFERRED TAXATION 7 (28,467) (31,527) (4,453) (4,899) 3,661,254 3,546,335 2,784,414 2,948,037 177 The notes shown on pages 182 to 214 form an integral part of the financial statements.

Consolidated Statement of Changes in Equity For the Year ended 31 December 2004 Property Foreign Revaluation and Currency Share Share Other Capital Translation Retained Capital Premium Reserves Account Profit / (Loss) Total $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 Balance at 1 January 2004 354,946 812,833 377,479 (50,892) (7,462) 1,486,904 Net surplus on revaluation of investment properties - - 8,283 - - 8,283 Transfer from property revaluation and other capital reserves to retained profit - - (210) - 210 - Exchange differences written back / arising on consolidation - - - 22,242-22,242 Net gains not recognised in profit and loss account - - 8,073 22,242 210 30,525 Net profit for the year - - - - 133,280 133,280 Total recognised gains for the year - - 8,073 22,242 133,490 163,805 Issue of shares under the Keppel Land Share Option Scheme 1,029 1,918 - - - 2,947 Net revaluation surplus realised and transferred to profit and loss account - - (24,108) - - (24,108) Final dividend for the previous year, paid - - - - (22,742) (22,742) Balance at 31 December 2004 355,975 814,751 361,444 (28,650) 103,286 1,606,806 178 The notes shown on pages 182 to 214 form an integral part of the financial statements.

Consolidated Statement of Changes in Equity For the Year ended 31 December 2003 Property Foreign Revaluation and Currency Share Share Other Capital Translation Retained Capital Premium Reserves Account Profit / (Loss) Total $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 Balance at 1 January 2003 354,310 812,111 534,582 (132,049) (88,666) 1,480,288 Net deficit on revaluation of investment properties - - (124,962) - - (124,962) Net deficit on revaluation of properties held for sale - - (10,566) - - (10,566) Exchange differences written back / arising on consolidation - - - 81,157-81,157 Net gain / (loss) not recognised in profit and loss account - - (135,528) 81,157 - (54,371) Net profit for the year - - - - 100,551 100,551 Total recognised gains and loss for the year - - (135,528) 81,157 100,551 46,180 Issue of shares under the Keppel Land Share Option Scheme 636 722 - - - 1,358 Net revaluation surplus realised and transferred to profit and loss account - - (21,575) - - (21,575) Final dividend for the previous year, paid - - - - (19,347) (19,347) Balance at 31 December 2003 354,946 812,833 377,479 (50,892) (7,462) 1,486,904 The notes shown on pages 182 to 214 form an integral part of the financial statements. 179

Consolidated Cash Flow Statement For the Year ended 31 December 2004 2004 2003 $ 000 $ 000 CASH FLOW FROM OPERATING ACTIVITIES: Operating profit before interest, taxation and exceptional items 111,644 127,971 Adjustments for: Depreciation of fixed assets 13,427 13,646 (Write-back) / provision for write-down in investments (5,012) 2,646 Write-back of provision for doubtful debts (2,174) (1,076) Write-back for properties held for sale (14,527) (13,918) Operating income before reinvestment in working capital 103,358 129,269 Increase in debtors (27,457) (13,296) Increase in stocks and work-in-progress (101,857) (51,257) Development expenditure (376,655) (251,691) Proceeds from progress billings 238,765 455,753 Increase in creditors 9,172 47,329 Cash (used in) / generated from operations (154,674) 316,107 Income from investment received 266 893 Interest received 8,422 8,436 Income from interests in associated companies 7,783 5,679 Interest paid (23,964) (30,127) Income taxes paid (4,622) (18,395) NET CASH FLOW (USED IN) / FROM OPERATING ACTIVITIES (166,789) 282,593 CASH FLOW FROM INVESTING ACTIVITIES: Purchase of fixed assets and improvement in investment properties (1,409) (2,230) Repayments of loans by investee company 26,960 5,763 Additional investment in a subsidiary company (10,214) - Additional investment in associated companies (30,440) (746) Proceeds from sale of fixed assets 19 62 NET CASH FLOW (USED IN) / FROM INVESTING ACTIVITIES (15,084) 2,849 CASH FLOW FROM FINANCING ACTIVITIES: Proceeds from issuance of share capital by Company 2,947 1,358 Net loan drawdown 107,425 56,765 Advances from minority shareholders of certain subsidiaries 9,322 6,819 Loans from / (to) related and associated companies, less dividends 8,150 (67,334) Dividends paid to shareholders (22,742) (19,347) Dividends to minority shareholders of subsidiary companies (14,348) (6,589) Contributions by minority shareholders of subsidiary companies - 17,590 NET CASH FLOW FROM / (USED IN) FINANCING ACTIVITIES 90,754 (10,738) NET (DECREASE) / INCREASE IN CASH AND CASH EQUIVALENTS (91,119) 274,704 CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR 500,926 225,370 EXCHANGE ADJUSTMENTS (16,883) 852 180 CASH AND CASH EQUIVALENTS AT END OF THE YEAR 392,924 500,926

REPRESENTED BY: CASH AND CASH EQUIVALENTS 2004 2003 $ 000 $ 000 Fixed deposits, bank balances and cash 350,939 382,549 Deposits with related companies 41,985 118,377 392,924 500,926 The acquisition of shares in a subsidiary company has been shown as a separate item, and its effect on the individual assets and liabilities of the Group is not reflected in the above statement. The net assets of the subsidiary company acquired during the year were as follows: $ 000 Property held for sale 11,075 Debtors and creditors (861) Net bank balances 22 Purchase consideration 10,236 Cash acquired (22) Net cash outflow on acquisition of subsidiary 10,214 The notes shown on pages 182 to 214 form an integral part of the financial statements. 181

Summary of Significant Accounting Policies For the Year ended 31 December 2004 CORPORATE INFORMATION The Company is a limited liability company incorporated in Singapore, and is listed on the Singapore Exchange Securities Trading Limited. The address of its registered office is 230 Victoria Street #15-05, Bugis Junction Towers, Singapore 188024. The financial statements of Keppel Land Limited for the year ended 31 December 2004 were authorised for issue on 28 February 2005 in accordance with a resolution of the Board of Directors. The number of employees of the Group as at 31 December 2004 was 1,983 (2003 : 1,834 employees). The Company had no direct employees as at 31 December 2004 and 31 December 2003. The immediate and ultimate holding company is Keppel Corporation Limited, incorporated in Singapore. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The following summary explains the Group s significant accounting policies which have been consistently applied, and are the same as those used in the previous financial year, except where otherwise indicated: (a) Basis of Preparation The financial statements are prepared in accordance with the historical cost convention modified by revaluation of certain fixed assets, investment properties and investments in subsidiary and associated companies. The financial statements are prepared in accordance with Singapore Financial Reporting Standards as required by the Singapore Companies Act, Cap. 50. The financial statements are expressed in Singapore dollars. (b) Basis of Consolidation The Group accounts consolidate the accounts of the Company and its subsidiary companies, all of which prepare audited accounts at 31 December. Subsidiary companies are those in which more than 50% of the issued share capital is held or in which the Group has Board control. The accounts of subsidiary companies acquired or disposed of are included in or excluded from Group figures from the effective dates of acquisition or disposal. Minority interests are recorded on the basis of their share of the net assets of the non-wholly owned subsidiaries. 182 (c) Subsidiary Companies Investments in subsidiary companies are stated in the accounts of the Company at the attributable share of their combined net asset value. Any revaluation surplus or deficit arising is transferred directly to capital reserves. Revaluation deficits are taken to the profit and loss account in the absence of or to the extent that they exceed any surpluses held in reserves relating to previous revaluations. Any increase in revaluation directly related to a previous decrease in the carrying amount for the same investment that was recognised as an expense is credited to income to the extent that it offsets the previously recorded decrease.

(d) Associated Companies Associated companies are those in which the Group has a long-term substantial equity interest and in whose commercial and financial policy decisions the Group actively participates. The Group s share of profits less losses of associated companies, as shown in their audited accounts for the year ended 31 December (except for certain associated companies), is included in the Group s results. The results of certain associated companies which do not prepare audited accounts at 31 December are based on their latest audited accounts and unaudited management accounts for the ensuing months up to 31 December. Investments in associated companies are stated in the Company s and Group s accounts at the attributable share of their combined net asset value as shown in their accounts. Any revaluation surplus or deficit arising is taken directly to capital reserves. Revaluation deficits are taken to the profit and loss account in the absence of or to the extent that they exceed any surpluses held in reserves relating to previous revaluations. Any increase in revaluation directly related to a previous decrease in the carrying amount for the same investment that was recognised as an expense is credited to income to the extent that it offsets the previously recorded decrease. (e) (f) Other Investments Investments held on a long-term basis are stated at average cost. Provision is made for any diminution in value which is considered to be permanent. Fixed Assets Fixed assets are stated at cost less accumulated depreciation and any impairment in value. All fixed assets, except for freehold and long leasehold (i.e. with unexpired tenures of over 20 years) land, are depreciated evenly over their estimated useful lives and residual values have also been taken into account where appropriate. The estimated useful lives of the Group s fixed assets have been taken as follows: Buildings Short leasehold land and buildings Machinery and equipment Motor vehicles 30 to 50 years Over period of lease (ranging from 2 to 20 years) 3 to 7 years 4 to 5 years Profits or losses on disposal of all fixed assets are included in the profit and loss account. (g) Investment Properties Revaluation surpluses arising on annual valuations of the Group s investment properties are credited directly to capital reserves. Revaluation deficits are taken to the profit and loss account in the absence of or to the extent that they exceed any surpluses held in reserves relating to previous revaluations. Profits or losses on disposal of all investment properties are included in the profit and loss account. Any surpluses held in capital reserves in respect of previous revaluations of investment properties disposed of are regarded as having become realised and are transferred to the profit and loss account. (h) Properties Held for Development Properties held for development are stated at cost, which includes cost of land and construction, related overhead expenditure and financing charges and other net costs incurred during the period of development. They are considered completed and are transferred to investment properties or fixed assets when they are ready for their intended use. 183

Summary of Significant Accounting Policies (cont d) (h) (i) Properties Held for Development (cont d) Each property under development is accounted for as a separate project. Where a project comprises more than one component, each component is treated as a separate project, and interest and other net costs are apportioned accordingly. Properties Held for Sale Development properties held for sale are stated at the lower of cost and net realisable value. Upon receipt of temporary occupation permits, they are transferred to completed properties held for sale. Profit recognised on partly completed projects which are held for sale is based on the percentage of completion method as follows : (a) (b) For Singapore trading properties under development, the profit recognition upon the signing of sales contracts is 20% of the total estimated profit attributable to the actual contracts signed. Subsequent recognition of profit is based on the stage of physical completion; For overseas trading properties under development, the profit recognition upon the signing of sales contracts is the direct proportion of total expected project profit attributable to the actual sales contracts signed, but only to the extent that it relates to the stage of physical completion. Progress claims made against partly completed projects are offset against their development costs. When losses are expected, full provision is made in the accounts after adequate allowance has been made for estimated costs to completion. Any expenditure incurred on abortive projects is written off in the profit and loss account. Profit on partly completed projects which are held for sale less any provision to reduce cost to estimated realisable value as well as the profit or loss on sale of completed properties are included in the operating results. Completed properties held for sale are stated at the lower of cost and net realisable value. Cost includes cost of land and construction, and interest incurred during the period of construction. (j) Stocks Stocks are valued at the lower of weighted average cost and net realisable value after adequate provision is made for damaged, obsolete or slow-moving stocks on an item by item basis. (k) (l) Trade and Other Debtors Trade debtors are recognised and carried at original invoice amounts less provisions for any uncollectible amounts. Receivables from related companies are recognised and carried at cost less provisions for any uncollectible amounts. Known bad debts are written off and specific provisions are made for any debts which are considered doubtful. Trade and Other Creditors Trade and other creditors are carried at cost which is the fair value of the consideration to be paid in the future for goods and services received, whether or not billed to the Group. Payables to related companies are carried at cost. 184

(m) Impairment of Assets At each balance sheet date, the Group reviews the carrying amounts of its assets to determine whether there is any indication that the assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. Whenever the recoverable amount of an asset is estimated to be less than its carrying amount, the impairment loss is recognised in the profit and loss account. Reversal of impairment loss recognised previously is recorded when there is an indication that the impairment loss recognised for the asset no longer exists or has decreased. The reversal is recorded in the profit and loss account. However, the increased carrying amount of an asset due to any reversal of impairment loss is recognised to the extent that it does not exceed the cost, net of depreciation of that asset at the date of such reversal. (n) (o) Provisions Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events, and when it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate of the amount can be made. Revenue Recognition Rental and related income from investment properties is recognised on an accrual basis. Revenue recognition from trading properties is set out in paragraph (i) above. Revenue from the rendering of services is recognised when the service is rendered. Dividend income is recognised in the accounts when it is declared to be payable by the investee companies. Interest income is recognised on an accrual basis. (p) Employee Benefits (i) (ii) (iii) Defined Contribution Plan The Group makes contributions to pension schemes as defined by the laws of the countries in which it has operations. In particular, the Singapore companies in the Group make contributions to the Central Provident Fund in Singapore, a defined contribution pension scheme. Contributions to pension schemes are recognised as an expense in the period in which the related service is performed. Employee Leave Entitlement Employee entitlements to annual leave are recognised when they accrue to employees. A provision is made for the estimated liability for leave as a result of services rendered by employees up to the balance sheet date. Share Option Scheme The Company has in place Keppel Land Share Option Scheme for the granting of options to eligible employees of the Group to subscribe for shares in the Company. Details of the scheme are disclosed in the Directors Report. Upon the grant or exercise of the options, there are no charges to the profit and loss account as the exercise price of each grant of options equals or approximates the market value of the shares at the time of grant. 185

Summary of Significant Accounting Policies (cont d) (q) Deferred Taxation Deferred taxation is provided in full, using the liability method, on all temporary differences between the tax bases of assets and liabilities at the balance sheet date and their carrying amounts. The principal temporary differences arise from depreciation of fixed assets, offshore income and certain provisions or charges in the accounts for which the tax relief is not immediately available. Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilised. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised or the liability is settled, based on tax rates enacted or substantively enacted at the balance sheet date. (r) Foreign Currencies Transactions in foreign currencies are measured in the measurement currencies of the respective countries which the Group operates in and are recorded at exchange rates approximating those ruling at the transaction dates. Foreign currency monetary assets and liabilities are measured using the exchange rates ruling at each balance sheet date. All resultant exchange differences arising from the conversion are dealt with through the profit and loss account or in reserves when equity investments in foreign entities are hedged by similar foreign currency borrowings. For inclusion in Group accounts, all assets and liabilities of foreign subsidiaries and associated companies are translated into Singapore dollars at the exchange rates ruling at each balance sheet date. Exchange differences due to such currency translations as well as the exchange differences in respect of offsetting foreign currency loans or other hedging instruments are dealt with in reserves. The trading results of foreign subsidiaries and associated companies are translated into Singapore dollars at the average exchange rates for the year. 186

Notes to the Financial Statements For the Year ended 31 December 2004 1. Principal Activities The principal activity of the Company is that of a holding, management and investment company. The principal activities of the Company and its subsidiary companies ( the Group ) consist of property investment and development, and property-related services. 2. Revenue Group 2004 2003 $ 000 $ 000 Sale of trading properties 361,138 563,620 Rental income from investment properties 71,288 79,306 Revenue from hotels and serviced apartments, and property services 43,739 35,855 Sales 476,165 678,781 Dividend income (gross) 266 893 Interest income 16,205 14,115 Interest and investment income 16,471 15,008 Total revenue 492,636 693,789 Sales represent the invoiced value of goods and services supplied. Inter-company transactions and the sales of associated companies have been excluded from Group sales. 3. Operating Profit Group 2004 2003 $ 000 $ 000 The following amounts have been charged / (credited) in arriving at operating profit: Depreciation of fixed assets: Freehold buildings 5 5 Leasehold buildings 7,880 6,638 Machinery, equipment and vehicles 5,542 7,003 13,427 13,646 Auditors remuneration: Auditors of the Company 465 418 Other auditors 269 236 Directors fees 573 236 Key managers emoluments* 4,661 3,473 187

Notes to the Financial Statements (cont d) 3. Operating Profit (cont d) Group 2004 2003 $ 000 $ 000 Staff costs (see note below): Salaries and wages 27,718 25,966 Employer s contribution to defined contribution plans, including Central Provident Fund 2,996 2,519 Others 3,919 3,756 34,633 32,241 Foreign exchange loss 6,243 3,101 Write-back of provision for doubtful debts and bad debts (2,174) (1,076) (Write-back) / provision for diminution in value of other investments (7,092) 2,646 Write-back of provisions for property held for sale (14,527) (13,918) * These include a one-off encashment of leave which the Company implemented on a Group-wide basis during the year. Staff costs capitalised during the year under properties held for development and sale amounted to $4,286,000 (2003: $2,302,000). 4. Investment and Interest Income Group 2004 2003 $ 000 $ 000 Gross dividends from: Quoted investments 266 227 Unquoted investments - 666 Interest from deposits and short-term loans with: Banks 4,841 4,291 Holding and related companies (see note below) 29,122 35,884 Associated companies 7,783 5,679 Other companies 1,445 1,813 43,457 48,560 Interest capitalised (26,986) (33,552) 16,471 15,008 188 Included in interest income from deposits and short-term loans with holding and related companies is $26,986,000 (2003: $33,552,000) of interest earned from loans to certain subsidiary companies which capitalised the interest as property development cost. Interest on deposits with related companies is earned at rates ranging between 0.17% and 5.2% (2003: 0.25% and 5.1%) per annum.

5. Interest Expense Group 2004 2003 $ 000 $ 000 On Bonds due 2005 (9,175) (9,151) On fixed term loans from banks (5,898) (11,146) On other term loans and overdrafts from: Related companies (19,979) (17,821) Banks (11,620) (12,421) Other companies (1,736) (1,521) On borrowings under MTN programme (see also Note 12) (10,334) (11,619) (58,742) (63,679) Interest capitalised (see also Note 4) 34,778 33,552 (23,964) (30,127) Interest is charged by related companies at rates ranging from 1.01% to 3.4% (2003: 1.01% to 5.2%) per annum. 6. Exceptional Items Group 2004 2003 $ 000 $ 000 Provision for impairment in value of the Group s hotel properties in Myanmar (see also Note 13) - (25,800) 7. Taxation Group 2004 2003 $ 000 $ 000 Current tax: Singapore 4,502 5,787 Foreign 15,982 22,312 Deferred tax: Singapore (2,511) (5,500) Foreign (262) (1,326) Current year s tax expense 17,711 21,273 Over provision in respect of prior years (5,535) (9,054) Associated companies 6,836 6,133 Group relief and others (16,131) (6,920) Tax expense 2,881 11,432 189

Notes to the Financial Statements (cont d) 7. Taxation (cont d) A reconciliation between the tax expense reported and the product of accounting profit multiplied by the applicable tax rate is as follows : Group 2004 2003 $ 000 $ 000 Profit before tax 140,508 109,462 Tax at the rates applicable 28,103 24,082 Write-back of provisions for property held for sale not subject to tax (2,905) (3,062) Deferred tax write-back (2,773) (6,826) Losses not deductible for tax purposes 7,781 5,676 Expenses not deductible for tax purposes 1,297 7,174 Utilisation of capital allowances and losses (581) (1,644) Different tax rates in other jurisdictions 6,265 7,503 Non-taxable income (12,205) (6,700) Associated companies and other items (7,271) (4,930) Current year s tax expense 17,711 21,273 The statutory income tax rate applicable to Singapore Group companies for Year of Assessment 2005 is 20% (Year of Assessment 2004: 22 %). Under the group relief system introduced by the Inland Revenue Authority of Singapore ( IRAS ), a Singapore incorporated company may, upon satisfaction of the criteria set out by IRAS, transfer its current year s unabsorbed capital allowances, trade losses and donations to another company belonging to the same group, to be deducted against the assessable income of the latter company. The loss so utilized is recognised as a deferred tax asset in the accounts of the transferor company. Net Tax Provision Group Company 2004 2003 2004 2003 $ 000 $'000 $ 000 $ 000 Provision for taxation 36,371 42,928 882 1,564 Income tax refund receivable (7,331) (2,141) - - 29,040 40,787 882 1,564 Subject to Sections 23 and 37 of the Income Tax Act, Cap.134, the Group has certain unutilised tax losses of $279,874,000 (2003: $293,383,000) and capital allowances of $46,000 (2003: $111,000) at 31 December 2004 for which related tax benefits totalling $55,984,000 (2003: $64,568,000) have not been included in the accounts. The tax losses are available for offset against future taxable profits of the companies in which the losses arose but for which no deferred tax asset has been recognised due to uncertainty of their recoverability. 190

7. Taxation (cont d) Deferred Taxation Deferred tax at the end of the year consists of the following : Group Company 2004 2003 2004 2003 $ 000 $'000 $ 000 $ 000 Deferred Tax Liabilities : Differences in depreciation 21,731 24,032 - - Offshore income not remitted 6,736 7,495 4,453 4,899 28,467 31,527 4,453 4,899 8. Dividend Group Company 2004 2003 2004 2003 $ 000 $'000 $ 000 $ 000 Dividend paid : 8 % (or 4 cents per share) less tax [2003: 7% (or 3.5 cents per share) less tax] 22,742 19,347 22,742 19,347 The Directors propose that a final dividend of 10% or 5 cents per share less tax (2003: 8% or 4 cents per share less tax) be paid for the year ended 31 December 2004. 9. Earnings per Share Group 2004 2003 $ 000 $ 000 (a) The calculation of basic earnings per share is based on the following: Profit after tax and minority interests 133,280 100,551 Weighted average number of shares ( 000) 710,144 708,792 (b) The calculation of diluted earnings per share is based on the following: The average fair value of one ordinary share ($) 1.84 1.39 Weighted average number of shares (used in the calculation of basic earnings per share) ( 000) 710,144 708,792 Number of unissued shares under option ( 000) 3,971 2,381 Number of shares that would have been issued at fair value ( 000) (3,080) (2,313) Adjusted weighted average number of shares 711,035 708,860 191

Notes to the Financial Statements (cont d) 10. Share Capital Group and Company Group and Company 2004 2003 2004 2003 000 '000 $ 000 $ 000 Authorised: 1,000,000,000 shares of 50 cents each with equal voting rights 1,000,000 1,000,000 500,000 500,000 Issued and fully paid: 711,950,582 (2003: 708,890,081) shares of 50 cents each 711,950 709,890 355,975 354,946 Issued and fully paid: At 1 January 709,890 708,619 354,946 354,310 Shares issued under the Keppel Land Share Option Scheme 2,060 1,271 1,029 636 At 31 December 711,950 709,890 355,975 354,946 During the year, the Company issued for cash 2,060,500 shares comprising 85,000 shares at $1.71 per share, 105,000 shares at $1.87 per share, 932,000 shares at $1.35 per share and 938,500 shares at $1.44 per share to certain full-time employees on exercise of options under the Keppel Land Share Option Scheme. At 31 December 2004, there were options granted to certain employees to take up 9,423,000 unissued shares in the Company as follows : Subscription Price $ Number of Shares 1.71 278,000 2.48 1,011,000 1.87 955,000 2.47 1,335,000 1.35 1,418,000 1.44 2,275,000 1.17 520,500 1.48 520,500 1.86 520,000 1.84 590,000 9,423,000 Except under certain circumstances, an option may be exercised after two years from the date of grant but not later than the expiry date. The shares under option may be exercised in full or in respect of 100 shares or a multiple thereof on the payment of the subscription price The full-time employees to whom the options have been granted do not have the right to participate by virtue of the options in a share issue of any other company. 192 Further information on the Keppel Land Share Option Scheme is disclosed in the Directors Report.

11. Reserves Group Company 2004 2003 2004 2003 $ 000 $'000 $ 000 $ 000 Share premium 814,751 812,833 814,751 812,833 Capital reserves: Capital redemption reserves 3,993 3,993 - - Asset revaluation and other reserves 357,451 373,486 - - 361,444 377,479 - - Foreign currency translation account (28,650) (50,892) (34,983) (51,160) Revenue reserves (see note below) Retained profit / (loss) 103,286 (7,462) 471,063 370,285 1,250,831 1,131,958 1,250,831 1,131,958 Revenue reserves retained in: Company 471,063 370,285 471,063 370,285 Subsidiaries (399,714) (398,721) - - Associated companies 31,937 20,974 - - 103,286 (7,462) 471,063 370,285 Capital redemption reserves represent the amount by which the issued share capital of certain subsidiaries had been diminished on redemption of redeemable preference shares. Asset revaluation reserves of the Group represent mainly the revaluation surplus from the Group s investment buildings. None of the above capital reserves is free for distribution as dividends. The foreign currency translation account represents exchange differences arising from the translation of the financial statements of foreign subsidiaries and associated companies, and exchange differences in respect of offsetting foreign currency loans. The Group s investments in Indonesia have been written down vide such year-end translation of foreign currencies, and the deficits have been included in this foreign currency translation account. Revenue reserves are retention of distributable profits. Included in the distributable reserves is an amount of $251,242,000 (2003: $247,168,000) which can be franked out of tax credits available in Singapore and Malaysia at the prevailing tax rates applicable to dividends. The Company s net profit for the year is $59,485,000 (2003: $19,300,000). 193

Notes to the Financial Statements (cont d) 12. Long-term Borrowings Group Company 2004 2003 2004 2003 $ 000 $'000 $ 000 $ 000 Bonds due 2005, secured - 180,000 - - Borrowings under MTN Programme 519,750 526,930 519,750 526,930 Bank borrowings: Secured 43,269 34,934 - - Unsecured 282,763 188,349 148,990 51,330 326,032 223,283 148,990 51,330 Loans from related companies, unsecured 983,039 922,916 508,868 882,873 Total 1,828,821 1,853,129 1,177,608 1,461,133 The Group s secured bonds due in 2005 bear interest at a fixed rate of 5% per annum. The security is a mortgage of property held by a subsidiary company. This has been reclassified to short-term borrowings in 2004 (see Note 26). The Company has a US$800 million Multicurrency Medium Term Note ( MTN ) Programme under which it can issue notes in series or tranches and may be denominated in Singapore dollars, US dollars or other currency deemed appropriate at the time. Notes which were outstanding at balance sheet date amounted to $519,750,000. The notes are unsecured and comprise (a) floating rate notes due in 2006, 2007 and 2009 of $130,000,000, and (b) variable rate notes due in 2007 and 2008 of $389,750,000. Interest payable is based on money markets rates ranging from 1.25% to 3.4% (2003: 1% to 3.4%) per annum. The Group s secured bank borrowings bear interest at rates of 1.41% to 5.75% (2003: 1.78% to 5.75%) per annum. The securities are mortgages of properties held by subsidiary companies. Interest on the Group s unsecured bank borrowings is payable at rates ranging from 1.56% to 2.25% (2003: 1.68% to 1.71%) per annum. The above long-term borrowings are repayable between two and five years. Borrowings repayable within one year are shown under current liabilities. Loans from related companies have no fixed terms of repayment and are not expected to be repaid over the next 12 months. Interest is payable at rates ranging from 1.85% to 3.23 % (2003: 1.01% to 2.02%) per annum. 194

13. Fixed Assets Machinery Land and Buildings Equipment Freehold Long Lease & Vehicles Total $ 000 $ 000 $ 000 $ 000 GROUP Cost At 1 January 2004 156 239,513 125,286 364,955 Additions - 5 1,272 1,277 Disposals - - (1,939) (1,939) Exchange differences written back / arising on consolidation - 30,033 3,864 33,897 At 31 December 2004 156 269,551 128,483 398,190 Depreciation At 1 January 2004 78 52,704 70,145 122,927 Depreciation for the year 5 7,880 5,542 13,427 Disposals - - (1,905) (1,905) Reclassification - (25,800) 25,800 - Exchange differences arising on consolidation - (3,206) 1,025 (2,181) At 31 December 2004 83 31,578 100,607 132,268 Depreciation for 2003 5 6,638 7,003 3,646 Net Book Value At 31 December 2004 73 237,973 27,876 265,922 At 1 January 2004 78 186,809 55,141 242,028 In 2004, no additional provision for impairment (2003: Provision of $25.8 million) was made based on the Directors assessment of the recoverable amounts of two hotels in Myanmar, which was determined by discounting their future estimated cashflows from operations to present value at 7.5% (2003: 8%). Freehold Land and Buildings $ 000 COMPANY Cost At 1 January 2004 and at 31 December 2004 156 Depreciation At 1 January 2004 78 Depreciation for the year 5 At 31 December 2004 83 Depreciation for 2003 5 Net Book Value At 31 December 2004 73 At 1 January 2004 78 195

Notes to the Financial Statements (cont d) 14. Investment Properties Group Land and Buildings Long Freehold Lease Total $ 000 $ 000 $ 000 Valuation At 1 January 2004 405,981 1,086,719 1,492,700 Revaluation surplus 546 13,802 14,348 Improvements to buildings 72 60 132 Disposals (324) - (324) Exchange differences arising on consolidation (367) (16,428) (16,795) At 31 December 2004 405,908 1,084,153 1,490,061 The Group s investment properties (including integral plant and machinery) are stated at Directors valuation based on the following valuations (open market value basis) by independent firms of professional valuers as at 31 December 2004: (a) (b) (c) (d) Colliers International Consultancy & Valuation (Singapore) Pte Ltd for properties in Singapore; Associated Properties Consultants for properties in Vietnam; PT. Wilson Properti Advisindo and PT. SuryaPrapta Permai for properties in Indonesia; Brooke Real Estate Ltd for a property in Thailand. Based on these valuations, the Group s share of net revaluation surplus amounted to $11,636,000 (2003: Deficit of $129,470,000) and has been taken directly to capital reserves. Properties amounting to $364,100,000 (2003: $364,100,000) in value and included in the above balances are mortgaged to banks as securities for borrowings referred to in Notes 12 and 26. 15. Properties Held for Development Group 2004 2003 $ 000 $ 000 Properties held for development comprise: Land costs 118,621 145,676 Development costs incurred 67,816 49,471 186,437 195,147 196 Properties held for development are transferred to fixed assets or investment properties when the respective developments are completed.

16. Subsidiary Companies Company 2004 2003 $ 000 $ 000 At Directors valuation Quoted shares 52,062 51,517 (Market value $41,129,000; 2003 : $66,066,000) Unquoted shares 1,129,893 1,074,638 1,181,955 1,126,155 Advances to subsidiary companies (Non-trade) 1,492,303 1,622,529 2,674,258 2,748,684 Less: Advances from subsidiary companies (Non-trade) (88,988) (110,086) 2,585,270 2,638,598 The advances to and from subsidiary companies are unsecured and have no fixed terms of repayment. Interest-bearing advances to and from subsidiary companies are charged at rates ranging from 0.45% to 2.6% (2003: 0.31% to 5%) per annum. The Company s investment in its subsidiary companies is stated at the attributable share of their combined net asset value. The net revaluation surplus for the year amounted to $55,852,000 (2003 : $3,558,000), and has been taken to the profit and loss account. 17. Associated Companies Group Company 2004 2003 2004 2003 $ 000 $'000 $ 000 $ 000 At Directors valuation - - 294,892 286,709 At cost 346,685 318,242 - - Share of post-acquisition retained revenue reserves (Distributable) 39,307 20,974 - - Capital and other reserves (Non-distributable) 55,395 66,115 - - Investment in associated companies (See note below) 441,387 405,331 294,892 286,709 Advances to associated companies (Non-trade) 452,523 438,179 2,907 95,170 Advances from associated companies (Non-trade ) (2,444) (2,052) - (83) 891,466 841,458 297,799 381,796 Investment in associated companies is represented by: Quoted shares (Market value $8,642,000; 2003: $13,079,000) 18,181 18,988 18,181 18,988 Unquoted shares 423,206 386,343 276,711 267,721 441,387 405,331 294,892 286,709 The advances to and from associated companies are unsecured, have no fixed terms of repayment and are not expected to be repaid during the next 12 months. Interest is charged at rates ranging from 1% to 5.5% (2003: 1% to 4.37%) per annum on interest-bearing advances to associated companies. 197

Notes to the Financial Statements (cont d) 17. Associated Companies (cont d) The Company s and the Group s investments in associated companies are stated at the attributable share of their combined net asset value. The revaluation surplus for the Company for the year of $8,183,000 (2003: Deficit of $8,024,000) is taken to profit and loss account. Details of the Group s share of profits less losses, and retained revenue reserves of associated companies are as follows: 2004 2003 $ 000 $ 000 Profit before taxation 36,357 22,410 Taxation (6,836) (6,133) Profit after taxation 29,521 16,277 Retained revenue reserves: At 1 January 20,974 7,515 Profit for the year 29,521 16,277 Dividends (19,236) (4,601) Adjustment arising from change in Group structure 548 1,783 Waiver of loan 7,500 - At 31 December 39,307 20,974 18. Other Investments Group Company 2004 2003 2004 2003 $ 000 $'000 $ 000 $ 000 Quoted shares in corporations, at cost 2,750 2,514 - - Unquoted shares in corporations, at cost 42,382 73,174 4,939 7,288 Convertible loan stock, at cost 2,000 2,000 2,000 2,000 47,132 77,688 6,939 9,288 Provisions (14,252) (22,114) (2,819) (5,168) 32,880 55,574 4,120 4,120 Analysis of provisions: At 1 January (22,114) (19,468) (5,168) (5,168) Provision during the year (2,775) (2,646) - - Write-back during the year 9,867-2,080 - Currency alignment 770-269 - At 31 December (14,252) (22,114) (2,819) (5,168) Market value of quoted investments 6,225 5,925 - - 198 Unquoted shares in corporations, at cost represent mainly the Group s interest in the underlying property development project undertaken by a Hongkong corporation.

19. Proceeds from Sale of Residential Receivables Two wholly-owned subsidiary companies developed and launched the sale of three residential projects in Singapore in 2002. They are Butterworth 8 and The Edgewater by Keppel Land Realty Pte Ltd (KLR), and Amaranda Gardens by Sherwood Development Pte Ltd (SD). KLR and SD (the Developers) sold units in each of the projects under a deferred payment scheme. The initial 10% of the sale price were received by the Developers. The remaining 90% of the sale price (the Receivables) will be paid to the Developers when Temporary Occupation Permit is obtained for each project and thereafter. In June 2002, the Developers (as vendors) entered into two agreements for the sale of the Receivables to Bayerische Hypo-Und Vereinsbank AG (as purchaser). The amount of $302 million shown as proceeds from the sale of residential receivables in the balance sheet as at 31 December 2003 represents : $ 000 Worth of receivables 355,700 Deferred consideration (53,700) Proceeds from the sale of residential receivables 302,000 The proceeds consist of: Cash received 165,000 Amount deposited with bank in escrow account for the payment of construction costs for the three projects 102,000 Discount on sale and fees payable 35,000 302,000 During the year, the residual amounts owing from the buyers of units in Butterworth 8, Amaranda Gardens and The Edgewater became due. The monies received from the residual amounts are applied against the proceeds from sale of residential receivables. The deferred consideration receivable included in debtors will be paid to the Developers upon the completion of certain conditions as provided for in the agreements with the purchaser. The discount on the sale of the receivables and fees payable amounting to $35,000,000 have been charged to the profit and loss account as expense in 2002. As at 31 December 2004, the total amount held in escrow accounts for payment of construction costs and progress billings received is $1,924,000 (2003: $71,604,000) (See also Note 24). 199

Notes to the Financial Statements (cont d) 20. Properties Held for Sale Group 2004 2003 $ 000 $ 000 (a) Properties under development: Land costs 1,448,512 1,521,245 Development costs incurred to-date 269,499 182,197 Related overhead expenditure 358,902 336,407 Development profit 89,005 49,418 Progress billings received and receivable (476,607) (344,653) Provisions (658,332) (694,178) 1,030,979 1,050,436 Analysis of provisions: At 1 January (694,178) (745,541) Transfer to properties held for sale 1,787 19,968 Provisions written back 14,527 13,918 Provisions utilised 19,532 17,477 At 31 December (658,332) (694,178) (b) Completed properties and land held for sale 114,286 141,393 Provisions (21,326) (19,968) 92,960 121,425 Analysis of provisions: At 1 January (19,968) - Transfer from properties under development (1,787) (19,968) Provision utilised 429 - At 31 December (21,326) (19,968) Total 1,123,939 1,171,861 Interest capitalised during the year was $30,430,000 (2003: $35,387,000) at rates ranging from 3% to 5.75% (2003: 3% to 5.75%) per annum. The values of properties included in the above balances which were mortgaged to banks as at 31 December 2003 amounted to $85,000,000 (see Note 12). The borrowings have been fully repaid in 2004. 21. Stocks Group 2004 2003 $ 000 $ 000 200 Spare parts and consumable stores 3,332 3,396

22. Debtors Group Company 2004 2003 2004 2003 $ 000 $'000 $ 000 $ 000 (a) Trade debtors: Trade debtors 52,731 20,506 - - Provision for doubtful debts (3,579) (3,828) - - 49,152 16,678 - - Analysis of provision for doubtful debts At 1 January (3,828) (3,685) - - Reclassification (2,000) - - - Exchange alignment 75 - - - Write-back / (provision) during the year 2,174 (143) - - At 31 December (3,579) (3,828) - - (b) Other debtors: Prepaid project costs and prepayments 38,166 38,037 18,823 25,011 Deposits paid 1,119 1,248 - - Interest receivable 7,327 6,977-327 Advances to corporations in which the Group has investment interests 16,845 18,458 - - Advances to minority shareholders of subsidiary companies 14,528 10,623 - - Other debtors 11,071 17,711 - - Other recoverable amounts 29,883 27,500 566 2,223 118,939 120,554 19,389 27,561 Less: Provision for doubtful debts (3,292) (3,388) - - 115,647 117,166 19,389 27,561 Analysis of provision for doubtful debts: At 1 January (3,388) (3,963) - (1,708) Currency alignment 96 - - - Provision written back - 575 - - Write-off against provision - - - 1,708 At 31 December (3,292) (3,388) - - Total 164,799 133,844 19,389 27,561 Advances to corporations are unsecured and have no fixed terms of repayment and interest-free. These advances represent mainly the Group s interest in the underlying property development project undertaken by a Singapore corporation. Advances to minority shareholders are unsecured, have no fixed terms of repayment and are interest-free. 201

Notes to the Financial Statements (cont d) 23. Amounts Owing by Holding and Related Companies Current account (non-trade): Group Company 2004 2003 2004 2003 $ 000 $'000 $ 000 $ 000 Amount owing to holding company (217) (118) - (118) Amount owing to related companies (417) (1,033) (1,198) - (634) (1,151) (1,198) (118) Short-term advances: Advances to holding company - 5,379 - - Advances to related companies 24,996 23,000 4,618 3,879 24,996 28,379 4,618 3,879 Net 24,362 27,228 3,420 3,761 Advances to holding company and related companies are interest-free, unsecured and have no fixed terms of repayment. Related companies are subsidiary companies of Keppel Corporation Limited. 24. Fixed Deposits, Bank Balances and Cash Group Company 2004 2003 2004 2003 $ 000 $'000 $ 000 $ 000 Fixed deposits, bank balances and cash 350,939 382,549 7,108 36,246 Deposits with related companies 41,985 118,377 377 115,633 392,924 500,926 7,485 151,879 Included in fixed deposits, banks balances and cash are: (a) (b) Amounts held under Project Account Rules 1985, withdrawals from which are restricted to payments for expenditures incurred on projects 20,907 3,730 - - Amount held in escrow accounts for payment of construction costs and progress billings received 1,924 71,604 - - 202

25. Creditors Group Company 2004 2003 2004 2003 $ 000 $'000 $ 000 $ 000 Trade creditors 64,013 61,254 - - Deposits received 15,047 13,418 - - Loans from minority shareholders of certain subsidiary companies 236,850 205,479 - - Interest payable 9,819 8,128 2,895 2,902 Retention monies 11,766 11,593 - - Accruals 194,054 195,825 3,672 2,575 531,549 495,697 6,567 5,477 The loans from the minority shareholders of certain subsidiary companies are unsecured and have no fixed terms of repayment. Interest is payable at rates ranging from 4.2% to 5% (2003: 4.2% to 5%) per annum. 26. Short-term Borrowings Group Company 2004 2003 2004 2003 $ 000 $'000 $ 000 $ 000 Borrowings under MTN Programme: Fixed rate notes, unsecured 121,240 152,000 121,240 152,000 Bonds due 2005, secured 180,000 - - - Bank borrowings: Secured 24,572 - - - Unsecured - 95,816-95,816 24,572 95,816-95,816 Total 325,812 247,816 121,240 247,816 The fixed rate notes bear interest at rates ranging from 0.95% to 2.25% (2003 : 1.4% to 2.7%) per annum and are repayable within one year. The Group s secured bonds due in 2005 bear interest at a fixed rate of 5% per annum. The security is a mortgage of property held by a subsidiary company. Secured bank borrowings bear interest at rate of 1.2% per annum. The security is a mortgage of property held by a subsidiary company. Unsecured bank borrowings are charged interest at rates ranging from 1.78% to 6.5% per annum in 2003 and have been repaid during the year. 203

Notes to the Financial Statements (cont d) 27. Sales, Profits and Assets Employed by Segment (a) By Industry The Group operates principally in the property sector. (b) By Geographical Location - 2004 Other Consolidated Singapore Countries Total $ 000 $ 000 $ 000 Sales 245,776 230,389 476,165 Results Operating profit 46,401 65,243 111,644 Investment income and net interest income/(expense) (10,360) 2,867 (7,493) Share of results of associated companies 24,824 11,533 36,357 Profit before tax 60,865 79,643 140,508 Other Information Segment assets 2,660,085 1,474,650 4,134,735 Investment in associated companies 261,364 180,023 441,387 Total 2,921,449 1,654,673 4,576,122 Segment liabilities 2,356,316 329,866 2,686,182 Net tax provision and deferred taxation 19,669 37,838 57,507 Total 2,375,985 367,704 2,743,689 Net assets 545,464 1,286,969 1,832,433 Capital expenditure 406 1,003 1,409 Depreciation charge 614 12,813 13,427 204

27. Sales, Profits and Assets Employed by Segment (cont d) (c) By Geographical Location - 2003 Other Consolidated Singapore Countries Total $ 000 $ 000 $ 000 Sales 339,211 339,570 678,781 Results Operating profit 73,994 53,977 127,971 Investment income and net interest income/(expense) (17,204) 2,085 (15,119) Share of results of associated companies 23,481 (1,071) 22,410 Profit before tax and exceptional items 80,271 54,991 135,262 Exceptional items - (25,800) (25,800) Profit before tax 80,271 29,191 109,462 Other Information Segment assets 2,934,655 1,324,176 4,258,831 Investment in associated companies 261,013 144,318 405,331 Proceeds from sale of residential receivables (302,000) - (302,000) Total 2,893,668 1,468,494 4,362,162 Segment liabilities 2,305,271 291,371 2,596,642 Net tax provision and deferred taxation 45,690 26,624 72,314 Total 2,350,961 317,995 2,668,956 Net assets 542,707 1,150,499 1,693,206 Capital expenditure 909 1,321 2,230 Depreciation charge 580 13,066 13,646 205

Notes to the Financial Statements (cont d) 28. Capital and Lease Commitments Group 2004 2003 $ 000 $ 000 (a) (b) (c) Estimated development costs for properties for sale: (i) Contracted for 605,992 193,977 (ii) Not contracted for 1,175,983 1,158,922 1,781,975 1,352,899 Less: Minority shareholders share (156,498) (88,158) 1,625,477 1,264,741 Estimated capital subscription in associated companies 159,068 202,222 Operating lease commitments: The future minimum rental payments receivable under significant non-cancelleable leases are as follows: Group 2004 2003 $ 000 $ 000 Within one year 51,444 56,360 Between two and five years 50,889 80,394 Beyond five years 663 5,887 102,996 142,641 The majority of the Group s non-cancellable leases are for terms of three years. 29. Contingent Liabilities, Unsecured Group Company 2004 2003 2004 2003 $ 000 $'000 $ 000 $ 000 Guarantees given to financial institutions in connection with: (a) Facilities given to subsidiary companies - - 311,418 234,561 (b) Facilities given to associated companies 222,839 164,936 216,219 158,000 No material losses under these unsecured guarantees are expected. 206

30. Significant Related Party Transactions (a) Significant inter-company transactions entered into by the Group with the holding company, fellow subsidiaries and related parties are as follows: 2004 2003 $ 000 $ 000 Interest income 2,137 2,291 Interest expense (19,979) (17,390 Management fees paid (464) (3,627) Rental income 52 1,331 Project management fees received 505 755 Property management fees received 304 334 Marketing commission received 1,737 260 Other products and services (2,066) (1,391) The related party transactions are entered into in the normal course of business based on negotiated arm s length prices. (b) Transactions entered into by the Group with the Directors of the Company are as follows: 2004 2003 $ 000 $ 000 Consideration for the sale of one unit each to two Directors of the Company and one unit to an immediate family member of a Director in an overseas residential development at prevailing prices applicable to third parties (1,226) - 31. Financial Instruments Financial Risk Management Objectives and Policies The Group is exposed to a variety of market risks including the effects of changes in interest rate and foreign currency exchange rates. Assessment of financial risks is carried out regularly by Management. To manage the market risks, the Group uses derivative financial instruments where appropriate, eg interest rate swaps, interest rate cap agreements, and forward foreign exchange and non-deliverable forward contracts. The Group does not issue or hold derivative financial instruments for trading purposes. The risk management policies are summarised as follows: Interest Rate Risk The Group s exposure for changes in interest rates is in respect of deposits and debt obligations with related companies and external financial institutions. 207

Notes to the Financial Statements (cont d) 31. Financial Instruments (cont d) The interest rate management policy is aimed at optimising net interest cost and reducing volatility. The Group borrows a mix of fixed and variable rate debts with varying tenors. The Group also uses interest rate swaps and caps to hedge against changes in interest rates on the underlying debt obligations. Foreign Currency Risk The Group is exposed to foreign exchange movements on its net investment in foreign subsidiaries, which generate revenue and incur costs denominated in foreign currencies. Assets held in foreign currencies are, to a large extent, financed by borrowings in the same currencies. Where appropriate, the Group will also enter into forward foreign exchange contracts to hedge against its foreign exchange risk in anticipated purchase or sale transactions denominated in foreign currencies. Credit Risk Credit risk arises in the event of the inability of a counterparty to meet the terms of the Group s financial instrument contracts. It is generally limited to the amounts, if any, by which the counterparty s obligations exceed the obligations of the Group. It is also the Group s policy to enter into financial instrument contracts with a diversity of prime financial institutions. 32. Fair Value of Financial Assets and Liabilities The carrying amounts of the following financial assets and liabilities of the Group and Company approximate their fair values due to their short-term nature : Bank and cash balances, debtors, creditors, amounts due from / (to) related companies and short-term borrowings. The fair values of the short-term and long-term borrowings as at 31 December 2004 are as stated below. They are estimated using discounted cash flow analysis based on current rates for similar types of borrowing arrangements. Group Company Carrying Fair Carrying Fair Amount Value Amount Value $ 000 $ 000 $ 000 $ 000 Short-term borrowings 325,812 326,208 121,240 120,890 Long-term borrowings 1,828,821 1,828,821 1,177,608 1,177,608 33. Significant Group Companies Information relating to the significant subsidiary companies consolidated in these accounts and to the associated companies whose results are included in the accounts is given on pages 209 to 214. 208

Significant Subsidiary and Associated Companies Subsidiaries Country of Effective Incorporation/ Equity Interest Cost of Investment Place of Principal 2004 2003 2004 2003 Business Activities % % $ 000 $ 000 Acresvale Investment Pte Ltd 100 100 1 1 Singapore Property development and investment Alpha Investment Partners Limited 100 100 1,000 6 Singapore Fund management Bintan Bay Resort Pte Ltd* 90 90 1,607 1,607 Singapore Investment holding Boulevard Development Pte Ltd* 100 100 1 1 Singapore Investment holding Bukit Timah Hill Development Pte Ltd Singapore Property development Ordinary Shares 100 100 15,381 15,381 Preference Shares 100 100 25,000 25,000 Denton Investment Pte Ltd 100 100 - - Singapore Investment holding Devonshire Development Pte Ltd* 60 - - - Singapore Property development Dovesdale Development Pte Ltd 100 100 1 1 Singapore Investment holding Evansville Investment Pte Ltd 100 100 41,938 41,938 Singapore Property development Experre Pte Ltd Singapore Investment holding Ordinary Shares 100 100 104 104 Preference Shares 100 100 12,500 12,500 Fernland Investment Pte Ltd 55 55 1,651 1,651 Singapore Investment holding Flanningan Investment Pte Ltd Singapore Investment holding Ordinary Shares 100 100 10 10 Preference Shares 100 100 8,500 8,500 Floraville Estate Pte Ltd 100 100 1 1 Singapore Investment holding Glenville Estate Investment Pte Ltd 100 100 1 1 Singapore Investment holding Greenfield Development Pte Ltd Singapore Investment holding Ordinary Shares 100 100 101 101 Preference Shares 100 100 125,400 125,400 Hampshire Pte Ltd 100 100 - - Singapore Investment holding Harvestland Development Pte Ltd 100 100 1 1 Singapore Property development and investment High Point Development Pte Ltd 100 100 121 121 Singapore Investment holding Hillwest Pte Ltd 100 100 - - Singapore Property holding KeplandeHub Limited Singapore Investment holding Ordinary Shares 100 100 100 100 Preference Shares 100 100 40,000 40,000 Keppel Digihub Holdings Pte Ltd * 100 100 1 1 Singapore Investment, management and holding company Keppel Digihub Limited * 100 100 1,000 1,000 Singapore Property investment Keppel Land China Holdings Pte Ltd 100 100 1 1 Singapore Investment holding Keppel Land Financial Services 100 100 2 2 Singapore Financial services Pte Ltd (Formerly EFACS (Asia) Pte Ltd) Keppel Land International Limited Singapore Property services Ordinary Shares 100 100 28 28 Preference Shares 100 100 30,000 30,000 209

Significant Subsidiary and Associated Companies (cont d) Subsidiaries Country of Effective Incorporation/ Equity Interest Cost of Investment Place of Principal 2004 2003 2004 2003 Business Activities % % $ 000 $ 000 210 Keppel Land Properties Pte Ltd Singapore Investment holding Ordinary Shares 100 100 5,509 5,509 Preference Shares 100 100 200,000 200,000 Keppel Land Realty Pte Ltd 100 100 1,006 1,006 Singapore Property development and investment Keppel Land (Tower D) Pte Ltd* 100 100 139,000 139,000 Singapore Property development and investment Kingsley Investment Pte Ltd 100 100 - - Singapore Investment holding Mansfield Developments Pte Ltd 100 100 2,336 2,336 Singapore Property development Mansfield Realty Limited 100 100 1,198 1,198 Singapore Property investment Meadowsville Investment Pte Ltd Singapore Investment holding Ordinary Shares 100 100 1 1 Preference Shares 100 100 54,000 54,000 Merryfield Investment Pte Ltd* 100 100 1 1 Singapore Investment holding Montfort Development Pte Ltd Singapore Investment holding Ordinary Shares 100 100 101 101 Preference Shares 100 100 28,000 28,000 Ocean & Capital Properties Pte Ltd 85 85 18,037 18,037 Singapore Property development Ocean Properties Pte Ltd* 76 76 406,780 406,780 Singapore Property investment OIL (Asia) Pte Ltd Singapore Financial services Ordinary Shares 100 100 9,931 9,931 Preference Shares 100 100 80,000 80,000 Palmsville Investment Pte Ltd 84 84 85 85 Singapore Investment holding Pasir Panjang Realty Pte Ltd 100 100 9,170 9,170 Singapore Investment holding Prestige Landmark Pte Ltd 51 51 510 510 Singapore Investment holding Saigon Centre Holdings Pte Ltd Singapore Investment holding Ordinary Shares 100 100 101 101 Preference Shares 100 100 63,000 63,000 Sedona Hotels International Pte Ltd 100 100 101 101 Singapore Hotel and resort management Sherwood Development Pte Ltd 100 100 1,505 1,505 Singapore Property development Silkland Investment Pte Ltd Singapore Investment holding Ordinary Shares 100 100 100 100 Preference Shares 100 100 10,800 10,800 Spring City Resort Pte Ltd Singapore Investment holding Ordinary Shares 100 100 101 101 Preference Shares 100 100 39,000 39,000 Straits Properties Limited 100 100 74,492 74,492 Singapore Investment holding and property management Straits Property Investments Pte Ltd 100 100 200,136 200,136 Singapore Investment holding Straits-CM Village Hotel Pte Ltd* 39 39 2 2 Singapore Property investment Straits-KMP Resort Development 46 46 1,786 1,786 Singapore Investment holding Pte Ltd*

Subsidiaries Country of Effective Incorporation/ Equity Interest Cost of Investment Place of Principal 2004 2003 2004 2003 Business Activities % % $ 000 $ 000 Sunlake Development Pte Ltd Singapore Investment holding Ordinary Shares 100 100 101 101 Preference Shares 100 100 13,000 13,000 Tat Chuan Development Pte Ltd 100 100 26,117 26,117 Singapore Property development Toshmatic Pte Ltd Singapore Investment holding Ordinary Shares 100 100 104 104 Preference Shares 100 100 17,600 17,600 Waterville Investment Pte Ltd 100 100 1 1 Singapore Investment holding Wiseland Investment Pte Ltd 100 100 101 101 Singapore Investment holding Aintree Assets Ltd (H) 100 100 2 2 British Virgin Islands Investment holding / Asia Double Peak Holdings Ltd (H) British VirginIs lands Investment holding / Singapore Ordinary Shares 100 100 - - Preference Shares 100 100 226,330 226,330 Erskine Holdings Ltd* (H) 70 70 1 1 British Virgin Islands Investment holding / Hong Kong Jencity Ltd * (H) 90 - - - British Virgin Islands Investment holding / Vietnam Pembury Properties Ltd * (H) 100 100 1,683 1,683 British Virgin Islands Investment holding / Singapore Red Vibrant Investments Ltd (H) 100 100 - - British Virgin Islands Investment holding / Vietnam Saigon Centre Investment Ltd * (H) 100 100 17,821 17,821 British Virgin Islands Investment holding / Hong Kong Southwick Developments Ltd (H) 100 100 3 - British Virgin Islands Investment holding / China Vanese International Ltd * (H) 70 70 40,075 40,075 British Virgin Islands Investment holding / Hong Kong Beijing Kingsley Property 100 100 35,020 35,020 China Property Development Co Ltd * (A) development Chengdu Hillwest Development 100 100 11,206 11,206 China Property Co Ltd * (A) development Shanghai Merryfield Land 99 99 54,356 54,356 China Property Co Ltd * (A) development Shanghai Floraville Land 99 99 1,624 1,624 China Property Co Ltd * (A) development 211

Significant Subsidiary and Associated Companies (cont d) Subsidiaries Country of Effective Incorporation/ Equity Interest Cost of Investment Place of Principal 2004 2003 2004 2003 Business Activities % % $ 000 $ 000 Shanghai Pasir Panjang Land 99 99 36,474 36,474 China Property development Co Ltd * (A) Keppel Land (Saigon Centre) 100 100 6 6 Hong Kong Investment holding Ltd * (A) Straits-KMP (HK) Ltd * (A) 51 51 - - Hong Kong Investment holding Ventek International Ltd * (A) 70 70 1 1 Hong Kong Investment holding PT Kepland Investama * (E) 100 100 57,884 71,080 Indonesia Property investment/ development PT Kepindo Properti * (E) 100 100 37 37 Indonesia Property services PT Keppel Land * (A) 100 100 19,937 19,937 Indonesia Property services / development / investment PT Ria Bintan * (E) 46 46 55,261 55,261 Indonesia Golf course ownership and operation PT Sedona Hotels Indonesia* (A) 100 100 1,126 1,126 Indonesia Hotel and resort management PT Sentral Supel Perkasa * (A) 80 80 19,937 19,937 Indonesia Property investment/ development PT Sentral Tanjungan Perkasa* (A) 80 80 48,843 48,843 Indonesia Property development PT Straits CM Village * (E) 39 39 41,513 41,513 Indonesia Hotel ownership and operations Straits Greenfield Ltd * (A) 100 100 5,797 5,797 Myanmar Hotel ownership and operations Wiseland Investment Myanmar 100 100 3,292 3,292 Myanmar Hotel ownership Ltd * (A) and operations Keppel Philippines Properties Inc.(B) Philippines Investment holding Ordinary Shares 50.5 50.5 15,976 15,976 Preference Shares 100 100 24,115 24,115 Keppel Thai Properties Public Co 45 45 14,208 14,208 Thailand Property development Limited (A) / investment Top Property Co Ltd * (A) 66 66 8 8 Thailand Property development Utayan Thani Co Ltd * (A) 49 49 6 6 Thailand Investment holding Straits (USA) Inc 100 100 10,555 10,555 United States Investment holding of America International Centre * (E) 43 43 8,307 8,307 Vietnam Property investment Keppel Land Watco I Co Ltd * (A) 68 68 38,977 38,977 Vietnam Property investment/ development Quang Ba Royal Park JV Co * (F) 59 59 34,902 34,902 Vietnam Property investment Saigon Riviera JV Co Ltd * (A) 90 - - - Vietnam Property development Saigon Sports City * (A) 90 - - - Vietnam Property development 212

Associates Country of Effective Incorporation/ Equity Interest Cost of Investment Place of Principal 2004 2003 2004 2003 Business Activities % % $ 000 $ 000 Asia Real Estate Fund Management 50 50 500 500 Singapore Fund management Limited * Bugis City Holdings Pte Ltd 31 31 55,304 55,304 Singapore Property investment CityOne Township Development Pte 50 50 50 50 Singapore Investment holding Ltd * China World Investments Pte Ltd * 50-4,895 - Singapore Investment holding DL Properties Ltd 35 35 31,832 31,832 Singapore Property investment Dragon Land Limited 25 25 27,429 27,429 Singapore Property investment and development EM Services Pte Ltd (C) 25 25 500 500 Singapore Property management Keppel Bay Pte Ltd (C) 30 30 1,476 1,476 Singapore Property development Keppel Point Pte Ltd (C) 30 30 52,622 52,622 Singapore Property development / investment Kingsdale Development Pte Ltd * 50 50 7 7 Singapore Investment holding One Raffles Quay Pte Ltd * 33 33 - - Singapore Property development Parksville Development Pte Ltd * 50 50 10,500 10,500 Singapore Property investment SAFE Enterprises Pte Ltd (D) 25 25 21,971 21,971 Singapore Investment holding Sedona Hotel Bintan Management 49 49 25 25 Singapore / Hotel management Pte Ltd * (D) Indonesia Sing-Mas Investment Pte Ltd * (D) 30 30 10,804 10,804 Singapore Investment holding Singapore Suzhou Industrial Holdings 26 26 12,026 12,026 Singapore Investment holding Pte Ltd * (D) PT Pantai Indah Tateli * (A) 50 50 29,659 28,235 Indonesia Property development PT Pulomas Gemala Misori * (G) 25 25 8,024 8,024 Indonesia Property development PT Purimas Straits Resort * (G) 25 25 4,245 4,245 Indonesia Development of holiday resort PT Purosani Sri Persada * (F) 20 20 6,013 6,013 Indonesia Property investment Jernih Rezeki Sdn Bhd * (A) 49 49 1,396 1,396 Malaysia Property development Renown Property Holdings (M) 40 40 4,219 4,219 Malaysia Property investment Sdn Bhd (A) Tropical Garden NV * (G) 25 25 13 13 Netherlands Investment holding Antilles Asia No 1 Property Fund Ltd * (H) 25 25 24,586 696 Guernsey Property investment 213

Significant Subsidiary and Associated Companies (cont d) Notes: 1. The holding in the equity shown for each subsidiary and associated company is the proportion attributable to Keppel Land Limited. Changes in interest, if any, and subsidiary and associated companies acquired or disposed of during the year are as indicated in brackets against the companies concerned. Subsidiaries (including their subsidiaries and associated companies) and associated companies directly owned by Keppel Land Limited are included in the above list. 2. Associated companies are those in which the Group has a long-term substantial equity interest and in whose commercial and financial policy decisions the Group actively participates. 3. The cost of investment in each subsidiary/associated company is the proportion of the historical cost of its shares attributable to Keppel Land Limited. Companies indicated with an asterisk (*) are indirectly held by Keppel Land Limited. 4. All the active companies operate in their respective countries of incorporation, unless otherwise specified. 5. All the companies are audited by Ernst & Young, Singapore except for the following : (A) Audited by member firms of Ernst & Young Global in the respective countries (B) Audited by Sycip Gorres Velayo & Co, Philippines, an associated firm of Ernst & Young (C) Audited by Pricewaterhouse Coopers, Singapore (D) Audited by KPMG, Singapore (E) Audited by overseas practice of Deloitte & Touche (F) Audited by overseas practice of KPMG (G) Audited by other firms of auditors (H) Not required to be audited by law in the country of incorporation. 6. In accordance with Rule 716 of The Singapore Exchange Securities Trading Limited, the Audit Committee and Board of Directors of the Company confirm that they are satisfied that the appointment of different auditors for certain of its subsidiaries and associated companies will not compromise the standard and effectiveness of the audit of the Group. 214

Corporate Directory Board of Directors Lim Chee Onn, Chairman Kevin Wong Kingcheung, Managing Director Thai Chee Ken Khor Poh Hwa Lim Ho Kee Tsui Kai Chong Lee Ai Ming Tan Yam Pin Niam Chiang Meng Heng Chiang Meng Choo Chiau Beng Teo Soon Hoe Audit Committee Thai Chee Ken, Chairman Tsui Kai Chong Lee Ai Ming Nominating Committee Lim Ho Kee, Chairman Thai Chee Ken Khor Poh Hwa Niam Chiang Meng Remuneration Committee Tan Yam Pin, Chairman Lim Ho Kee Tsui Kai Chong Joint Company Secretaries Choo Chin Teck Yeo Kah Tiang Registered Office 230 Victoria Street #15-05 Bugis Junction Towers Singapore 188024 Telephone: 63388111 Facsimile: 63377168 Website: www.keppelland.com.sg Auditors Ernst & Young Certified Public Accountants Singapore Audit Partner : Fang Ai Lian (Wef year ended 31 December 2002) Registrar Kon Choon Kooi Pte Ltd 47 Hill Street #06-02 Chinese Chamber of Commerce & Industry Building Singapore 179365 Telephone: 63363355 Facsimile: 63372197 Share Listing The Company s shares are listed on the Singapore Exchange Securities Trading Limited. General For further information about Keppel Land Limited, please contact the Secretariat at the Registered Office. Calendar of Financial Events FY 2004 FY 2005 Announcement of results: First quarter 26 April 2004 April 2005 Interim 28 July 2004 July 2005 Third quarter 25 October 2004 October 2005 Total year 26 January 2005 January 2006 End of financial year 31 December 2004 31 December 2005 Despatch of Summary Financial Report 31 March 2005 March 2006 Despatch of Annual Report 14 April 2005 April 2006 Annual General Meeting 29 April 2005 April 2006 Dividend payment date 24 May 2005 May 2006 215

Key Personnel KEPPEL LAND LIMITED Lim Chee Onn Chairman Kevin Wong Kingcheung Managing Director Property Investment, Development and Management Keppel Land International Limited Choo Chin Teck Director, Corporate Services and Group Company Secretary Tan Swee Yiow Director, Singapore Goh Han Kee Assistant General Manager (Projects), Singapore Ang Wee Gee Director, Regional Investments Stephen Choo Kooi Yoon General Manager (Projects), Regional Investments Dominic Ng Ann Hoe General Manager (Malaysia), Regional Investments Yeoh Hai Yeoh Deputy General Manager (China), Regional Investments Augustine Tan Wee Kiong General Manager, Marketing Albert Foo Cheur Wee Assistant General Manager (Residential), Marketing Kuladeva s/o Kulathungam Assistant General Manager (Commercial/Indonesia), Marketing Lim Tow Fok General Manager, Property Management Christopher Ho Kam Pouy Assistant General Manager, Property Management Tong Kok Wing General Manager, Retail Management Yeo Kah Tiang (Mrs) General Manager, Group Finance and Administration Kevin Chua Senior Manager, Information Technology Brenda Chang Hui Ping (Ms) Manager, Human Resources Tee Swee Teng Senior Manager, Group Internal Audit CityOne Township Development Pte Ltd Liew Chin Sin Chief Executive Officer Dragon Land Limited Chua Yang Hong Chief Executive Officer Property Fund Management Alpha Investment Partners Limited Loh Chin Hua Managing Director Hotel, Serviced Apartment and Resort Management Sedona Hotels International Pte Ltd Vincent Tan Aik Cheong Vice President Information Technology KeplandeHub Limited Kwok Yan Hoe Assistant General Manager Keppel Digihub Limited Dave Ng Chun Sun Chief Executive Officer Keppel Services Staff Union Quah Kim Boon President Serena Toh Lai Siong (Ms) Assistant General Manager, Investor Relations and Research 216

REGIONAL OFFICERS China Arthur Yeo Hui Kong Deputy General Manager (Projects), Kunming David Wong Tai-wai Assistant General Manager, Shanghai William Tan Tin Kwang Senior Manager, Beijing William Ong Kah Kok Senior Manager, Chengdu Chau Shing Tung Senior Manager, Tianjin India Thomas Chan Hung Tat Assistant General Manager Indonesia Myanmar Vincent Tan Aik Cheong Vice President, Sedona Hotels International Pte Ltd Philippines Sin Wai Meng Senior Vice President, Keppel Philippines Properties Inc Thailand Lawrence Peh Yeow Beng Executive Director, Keppel Thai Properties Public Company Limited Vietnam Linson Lim Assistant General Manager Lim Seng Bin General Manager Japan Ho Kin Leong Manager Malaysia Steven Shum Wing On Deputy General Manager, Malaysia Operations 217

Corporate Structure 100% Keppel Land International Limited 50% Asia Real Estate Fund Management Limited Singapore Projects 100% Alpha Investment Partners Limited 100% Aintree Assets Ltd 25% Asia No.1 Property Fund Ltd 100% Straits Properties Ltd 100% Straits Property Investments Pte Ltd 76% Ocean Properties Pte Ltd 100% Mansfield Realty Limited 85% Ocean & Capital Properties Pte Ltd 100% Keppel Land Realty Pte Ltd 100% Sherwood Development Pte Ltd 100% Glenville Estate Investment Pte Ltd 100% Harvestland Development Pte Ltd Keppel Land Limited 100% 100% 100% Acresvale Investment Pte Ltd Bukit Timah Hill Development Pte Ltd Evansville Investment Pte Ltd 100% Tat Chuan Development Pte Ltd 100% Keppel Land (Tower D) Pte Ltd 100% Keppel Land Properties Pte Ltd 100% Boulevard Development Pte Ltd 33% One Raffles Quay Pte Ltd 60% Devonshire Development Pte Ltd 100% Mansfield Development Pte Ltd 100% Denton Investment Pte Ltd 50% Parksville Development Pte Ltd 100% Keplandehub Limited 100% Keppel Digihub Holdings Ltd 100% Keppel Digihub Limited 35% D.L. Properties Ltd 31% Bugis City Holdings Pte Ltd 30% Keppel Bay Pte Ltd 30% Keppel Point Pte Ltd 218

100% Silkland Investments Pte Ltd 20% P.T. Purosani Sri Persada Overseas Projects 100% Flannigan Investment Pte Ltd 25% P.T. Pulomas Gemala Misori 100% Montfort Development Pte Ltd 50% P.T. Pantai Indah Tateli 100% Meadowsville Investment Pte Ltd 80% P.T. Sentral Tunjungan Perkasa 100% Keppel Land International Limited 69% 100% P.T. Keppel Land P.T. Kepland Investama 80% P.T. Sentral Supel Perkasa 51% Prestige Landmark Pte Ltd 35% P.T. Purimas Straits Resorts 25% Tropical Garden NV 30% 25% Safe Enterprises Pte Ltd 44% Bintan Lagoon Resort Ltd 100% Keppel Land (Hong Kong) Ltd 10% 100% Straits (Usa) Inc 100% Pembury Properties Ltd 90% Bintan Bay Resort Pte Ltd 100% Straits-KMP Resort Development Pte Ltd 85% Straits-CM Village Hotel Pte Ltd 100% P.T. Ria Bintan 100% Oil (Asia) Pte Ltd 70% 90% Erskine Holdings Ltd Jencity Ltd 10% Avondale Properties Ltd 100% Saigon Sports City 100% Union Charm Development Ltd 100% Saigon Centre Investment Ltd 100% Saigon Centre Holdings Pte Ltd 50% 50% Keppel Land (Saigon Centre) Ltd 68% Keppel Land Watco I Co. Ltd 55% Fernland Investment Pte Ltd 79% International Centre 84% Palmsville Investment Pte Ltd 70% Quang Ba Royal Park JV Co Keppel Land Limited 100% Keppel Land Vietnam Properties Pte Ltd 100% Red Vibrant Investment Ltd 40% Renown Properties Holdings (M) Sdn Bhd 100% High Point Development Pte Ltd 100% 90% 45% 49% Willowville Pte Ltd Saigon Riviera JV Co Ltd Tanah Sutera Development Sdn Bhd Jernih Rezeki Sdn Bhd 60% Keppel Land Agtex Ltd 51% Keppel Philippines Properties Inc 100% 48% Buena Homes Inc SM-Keppel Land Inc 61% Buena Homes (Sandoval) Inc 100% Greenfield Development Pte Ltd 100% Straits Greenfield Ltd 100% Wiseland Investment Pte Ltd 100% Wiseland Investment Myanmar Ltd 45% Keppel Thai Properties PCL 100% Hampshire Pte Ltd 61% 39% Top Property Co Ltd 100% Merryfield Investment Pte Ltd 99% Shanghai Merryfield Land Co Ltd 51% Quivivet Pte Ltd 100% Keppel Land China Holdings Pte Ltd 50% Cityone Township Development Pte Ltd 10% 83% Chengdu Century Development Co Ltd 25% Singapore Shenyang Township Development Pte Ltd 50% 50% China World Investments Pte Ltd 30% Famous Town Real Estate (Fu Jian) Co Ltd 100% Floraville Estate Pte Ltd 99% Shanghai Floraville Land Co Ltd 100% Pasir Panjang Realty Pte Ltd 99% Shanghai Pasir Panjang Land Co Ltd 100% Kingsley Investment Pte Ltd 100% Beijing Kingsley Property Development Co Ltd 100% Hillwest Pte Ltd 100% Chengdu Hillwest Development Co Ltd 100% Spring City Resort Pte Ltd 50% Kingsdale Development Pte Ltd 219 100% Sunlake Development Pte Ltd 30% Sing-Mas Investments Pte Ltd 98% Shanghai Sing Straits Land Co Ltd 25% Dragon Land Limited

Property Portfolio Group Properties (Singapore) Description Held by % Owned Site Area Estimated Estimated Year of Tenure (sm) Building Floor Total Rentable Completion Area (sm) Area (sm) Completed Properties Ocean Building a 29-storey office building Ocean 76% 6,109 50,143 39,255 1974 999-year located at Collyer Quay corner Properties leasehold of Raffles Place Ocean Towers a 27-storey office tower located in Ocean 76% 2,781 # 32,881 23,990 1992 999-year Raffles Place Properties leasehold Prudential Tower a 30-storey office building Keppel Land 100% 1,998 27,700 10,250 1998 99-year located at junction of Church Street (Tower D) (retained interest) leasehold and Cecil Street Keppel Towers a 27-storey office development Mansfield 100% 7,760 43,629 34,909 1991 Freehold located at Hoe Chiang Road Realty GE Tower a 13-storey office development Mansfield 100% 1,367 9,317 7,378 1993 Freehold located at Hoe Chiang Road Realty Equity Plaza a 28-storey office building DL 35% 2,345 31,538 23,962 1992 99-year located in Raffles Place Properties leasehold Bugis Junction an integrated development comprising Bugis City 31% 25,911 119,221 Office 23,218 1995 99-year a 5-star hotel, an office tower and Holdings Retail 39,969 leasehold a large-scale retail space featuring Hotel 406 rooms a department store, supermarket and specialty shops Keppel Bay Tower an 18-storey office building HarbourFront 11.7% 17,267 41,823 36,673 2002 99-year at HarbourFront Avenue One leasehold HarbourFront Tower One an 18-storey office building HarbourFront 11.7% 15,072* 40,278 34,861 2002 99-year at HarbourFront Place Two leasehold HarbourFront Tower Two a 13-storey office building HarbourFront 11.7% 15,072* 19,227 14,450 2003 99-year at HarbourFront Place Two leasehold 220 Heritage Court conservation shophouses Glenville 100% 1,150-534 1996 99-year located at Peck Seah Street Estate (retained interest) leasehold Investment

Description Held by % Owned Site Area Estimated Estimated Year of Tenure (sm) Building Floor Total Rentable Completion Area (sm) Area (sm) Completed Properties (con td) Joo Chiat Shophouses conservation shophouses Keppel Land 100% 784-1,232 1996 Freehold located in the Joo Chiat area Realty (retained interest) Freesia Woods a 129-unit condominium Keppel Land 100% 12,536 17,550 8,188 2003 Freehold at Sunset Way Realty (retained interest) Nassim Woods a 35-unit luxurious condominium Parksville 50% 5,775 9,240 8,468 1998 99-year development in the exclusive Development leasehold Nassim Road enclave Pebble Bay a 510-unit luxurious condominium Waterfront 50% 32,300-2,059 1997 99-year development at Tanjong Rhu Properties (retained interest) leasehold Geylang Road Terraces adjoining units of 2-storey Acresvale 100% 201-306 - Freehold intermediate terrace buildings Investment Pasir Panjang Road Houses three storey semi-detached houses Tat Chuan 100% 474 - - - Freehold Development (retained interest) Quartz Industrial Building a modern 8-storey industrial Harvestland 100% 5,657-3,569 1997 Freehold building at Upper Aljunied Link Development (retained interest) Orion Industrial Building a modern 8-storey industrial Acresvale 100% 5,790-4,723 1997 Freehold building at Paya Lebar Investment (retained interest) Keppel Digihub a modern 6-storey industrial Keppel 100% 7,333 18,345 12,877 1997 30-year building at Serangoon Digihub leasehold North Avenue 5 with option for another 30 years Caribbean at Keppel Bay a 969-unit waterfront condominium Keppel Bay 30% 97,534 132,780 66,159 2004 99-year development at Keppel Bay (retained interest) leasehold Amaranda Gardens a 189-unit condominium development Sherwood 100% 11,182 23,482 1,375 2004 Freehold at Serangoon Avenue 3 Development (retained interest) # Part of Ocean Building site area * Including HarbourFront Tower Two 221

Property Portfolio (cont d) Group Properties (Singapore) (cont d) Description Held by % Owned Site Area Estimated Estimated Year of Tenure (sm) Building Floor Total Rentable Completion Area (sm) Area (sm) Properties under Development One Raffles Quay two office towers located at the One Raffles 33.33% 11,367 147,770 123,179 2006 99-year New Downtown at Marina South Quay leasehold Cluny Hill Redevelopment three (out of 16) remaining plots of Straits Properties 100% 4,355 - - - Freehold good-class bungalows with (retained interest) customised design and build options The Elysia a 40-unit apartment Bukit Timah Hill 100% 1,589 4,448-2005 999-year development at Mar Thoma Road Development leasehold The Callista an 87-unit apartment Evansville 100% 3,608 10,102-2005 999-year development at Mar Thoma Road Investment leasehold The Linc a 51-unit apartment development Keppel Land 100% 2,369 6,631-2006 Freehold at Lincoln Road Realty Urbana a 126-unit condominium Sherwood 100% 5,639 16,547-2007 Freehold development at River Valley Road Development Vision Crest a commercial / residential Dovedale 10% 11,560 43,793-2007 Freehold mixed development at Penang Road Development Landbank Avenue Park a condominium development Mansfield 52% 16,056 21,856 - - Freehold at Sixth Avenue Development Park Infinia at Wee Nam a 486-unit condominium Keppel Land 100% 21,733 61,616 - - Freehold development at Wee Nam/ Realty Keng Lee Road The Belvedere a 167-unit condominium Sherwood 100% 7,552 22,495 - - Freehold development at Meyer Road Development The Tresor a condominium development Keppel Land 100% 7,479 10,469 - - 999-year at Duchess Road Realty leasehold 222

Description Held by % Owned Site Area Estimated Estimated Year of Tenure (sm) Building Floor Total Rentable Completion Area (sm) Area (sm) Properties under Development (cont d) Naga Court a condominium development Keppel Land 100% 4,568 9,593 - - Freehold at Bukit Timah Road Realty Keppel Bay Plots 1, 3, 5 and 6 a waterfront condominium and marina Keppel Bay 30% 178,973 263,220 - - 99-year development at Keppel Bay leasehold HarbourFront Avenue a waterfront condominium HarbourFront 11.7% 29,245 32,000 - - 99-year development at Three leasehold HarbourFront Avenue The Crest @ Cairnhill Tat Chuan 100% 1,039 2,909 - - Freehold an apartment development Development at Cairnhill Circle Devonshire Road Devonshire 60% 7,400 20,271 - - Freehold a 163-unit apartment development Development at Devonshire Road 223

Property Portfolio (cont d) Group Properties (Overseas) Description Location Held by % Owned Site Area Estimated Estimated Year of Tenure (sm) Building Total Rentable Completion Floor Area (sm) Area (sm) Completed Properties Australia Botanic Cove Sydney, Kepel 100% 35,460-235 units 2000/2001 Freehold a residential development Australia Land of mixed (Phase 1) in Tarban, Hunters Hill Devt townhouses/ 2002/2003 Municipality about 7km apartments (Phase 2) north-west of Sdyney CBD with full facilities China Ocean Towers a 25-storey office tower Shanghai, Shanghai Sing 29% 4,807 50,219 33,921 2001 50-year on Yan An East Road China Straits Land Co lease Spring City Golf & Lake Resort an integrated resort comprising Kunming, Kunming Yunxin 40% 2,670,000 - Two 18-hole golf 1999 50-year golf courses, resort homes China Tourist Devt Co courses, a clubhouse, lease and resort facilities 50 resort homes, 2000 82 resort homes, 2001 71 resort homes, 2003 70-year 16 resort homes, 2005 lease 4 luxury resort homes 2006 Hong Kong The Waterfront a condominium development Kowloon, Union 7% 16,969 147,639 1,288 residential 2000 51-year at the Kowloon Station along Hong Kong Charm units lease the airport MTRC line Development 224 Indonesia Club Med Ria Bintan a beachfront hotel at Ria Bintan, PT Straits - 39% 200,000-302-room hotel 1997 30-year Bintan Resort Indonesia CM Village lease with option for another 50 years Ria Bintan (Phase 1) a 27-hole golf course Bintan, PT Ria Bintan 45.9% 1,467,000-27-hole 1998 30-year Indonesia golf course lease with with club house option for another 50 years Melia Purosani Hotel a 5-star hotel with retail Yogyakarta, PT Purosani 20% 18,189 26,398 296-room hotel 1994 20-year outlets in Yogyakarta Indonesia Sri Persada lease with option for another 20 years Nongsa Point Marina a waterfront resort with Batam, PT Nongsa 17% 100,000-192 rooms/chalets 1995 30-year a marina and hotel-style Indonesia Point Marina and 178 berths lease with chalets option for another 50 years

Description Location Held by % Owned Site Area Estimated Estimated Year of Tenure (sm) Building Total Rentable Completion Floor Area (sm) Area (sm) Completed Properties (cont d) Pasadenia Garden (Phase 1) a residential development Jakarta, PT Pulomas 25% 32,586 32,490 147 units of strata- 1996 30-year in Pulomas, a fast growing Indonesia Gemala titled condominiums, lease with residential district in Jakarta Misori 50 units of rental option for apartments and a another 2-storey clubhouse 20 years Wisma BCA a prime office development Jakarta, PT Kepland 100% 10,444 48,267 38,093 1985 20-year located in Jakarta CBD Indonesia Investama lease with option for another 20 years Malaysia Taman Sutera, Skudai a township comprising residential Johor, Tanah 18% 669,915-1,846 residential 2003/2004 Freehold units, commercial space and Malaysia Sutera units and 103 recreational facilities Development shop offices Taman Jernih, Bukit Mertajam (Phases 1 3) a residential development Penang, Jernih 49% 104,146 48,052 449 residential units 1999/2001/ Freehold comprising terrace houses, Malaysia Rezeki 2003 semi-detached houses, cluster houses and bungalow plots Myanmar Sedona Hotel Yangon a 5-star hotel fronting Yangon, Straits 100% 31,889 53,489 334 rooms, 1997 30-year Yangon s famous Inya Lake Myanmar Greenfield 32 serviced BOT with apartments and option for 30 office suites another three 5-year extensions Sedona Hotel Mandalay an international class hotel Mandalay, Wiseland 100% 16,467 19,835 220 rooms and 27 1998 30-year opposite the famous Myanmar Investment serviced apartments BOT ancient Mandalay Palace (Myanmar) Philippines Sampaguita Ville 12 units of linked houses Cebu, Opon Realty and 20.2% 5,498 960-1996 Freehold Philippines Devt. Corp. Thailand^^ Jewellery Centre a 34-storey strata-titled Bangkok, Keppel Thai 45.45% 5,866 42,834 12,975 1993 Freehold commercial building Thailand Properties (retained interest) at Nares Road ^^ Assets owned by Keppel Thai Properties Co in which the Group has a 45.45% stake 225

Property Portfolio (cont d) Group Properties (Overseas) (cont d) Description Location Held by % Owned Site Area Estimated Estimated Year of Tenure (sm) Building Total Rentable Completion Floor Area (sm) Area (sm) Completed Properties (cont d) Sukhaphiban 3 Mansion a 19-storey strata residential Bangkok, Gold Star 45.45% 4,440 70,000 443 1994 Freehold apartment at Sukhaphiban Thailand Property (retained interest) 3 Road Vietnam International Centre an 8-storey office development Hanoi, Centre for 43% 1,450 9,064 7,585 1995 45-year at 17 Ngo Quyen Street Vietnam International lease Transactions Royal Park Complex a serviced apartment development Hanoi, Quang Ba 59% 28,400 23,130 155 units of 1998 50-year at Quang Ba Vietnam Royal Park serviced apartments lease JV Co and 20 villas Saigon Centre (Phase 1) a 25-storey office, retail cum Ho Chi Keppel Land 68% 2,730 32,499 10,263 sm office, 1996 50-year serviced apartment development Minh City, Watco Co 6,265 sm retail lease at Le Loi Boulevard Vietnam and 89 units of serviced apartments Petro Vietnam Towers a 10-storey office development Vung Tau, Petro Tower 12.9% 6,191 17,026 12,465 1997 40-year Vietnam lease Vietcombank Towers a 22-storey office development Hanoi, Vietcombank 6% 1,986 30,900 19,263 2001 40-year Vietnam Tower lease USA TCB Building a 12-storey office building Houston, Keppel 30% 13,015 27,323 26,858 1982 Freehold located in the prestigious Texas, Houston Galleria area of Houston USA Group Partnership 226

Description Location Held by % Owned Site Area Estimated Estimated Year of Tenure (sm) Building Total Rentable Completion Floor Area (sm) Area (sm) Properties Under Development China Spring City Golf & Lake Resort an integrated resort comprising Kunming, Kunming Yunxin 40% 5,000,000 - resort homes 2010 70-year golf courses, resort homes and China Tourist Devt Co lease resort facilities One Park Avenue a 1,118-unit residential Shanghai, Shanghai 99% 33,986 144,667 1,118 residential 2005 70-year development complete China Merryfield apartments lease with recreational facilities Land Co (Plot A) 8 Park Avenue a 945-unit residential Shanghai, Shanghai 99% 33,432 133,393 945 residential 2007/2008 70-year development complete China Pasir Panjang apartments lease with recreational facilities Land Co (Plot B) Park Avenue Central a 708-unit residential Shanghai, Shanghai Floraville 99% 28,488 99,708 708 residential 2009 70-year development complete China Land Co (Plot C) apartments lease with recreational facilities Villa Site at Xujing a 186-unit villas and Shanghai, Shanghai 99% 153,726 53,804 186 units of villas 2007 70-year landed homes development in China Ming Hong and landed homes lease Xujing Town, Qingpu District Property Co The Seasons a 1,859-unit residential Beijing, Beijing Kingsley 100% 71,984 254,310 1,859 residential 2007 70-year development complete with China Property Devt Co apartments lease recreational facilities The Waterfront a 1,143-unit residential Chengdu, Chengdu Hillwest 100% 40,906 166,285 1,143 residential 2006 70-year development complete with China Development Co apartments lease recreational facilities The Botanica an 8,000-unit residential township Chengdu, Chengdu Century 44.05% 419,775 1,049,438 970 residential 2006 70-year development with integrated China Development Co units (Parcel 1) (Parcel 1) lease facilities, to be developed (residential) in phases 40-year lease (commercial) Mixed Development a residential development Fuzhou, Famous Town 15% About ** ** ** 70-year with ancillary commercial China Real Estate 850,000 lease elements (Fu Jian) Co (residential) 40-year lease (commercial) 227

Property Portfolio (cont d) Group Properties (Overseas) (cont d) Description Location Held by % Owned Site Area Estimated Estimated Year of Tenure (sm) Building Total Rentable Completion Floor Area (sm) Area (sm) Properties Under Development (cont d) India Residential Development a 2,002-unit high-rise condominium Bangalore, GPC Construction 51% 96,800 222,223 2,002 2009 Freehold development in JP Nagar District India condominium onwards units Indonesia Hotel Sedona Manado a 4-star international Manado, PT Pantai 50% 243,083-247-room hotel 2005 30-year class hotel Indonesia Indah Tateli (Phase 1) lease with option for another 20 years Ria Bintan (Phase 2 onwards) an integrated resort Bintan, PT Ria-Bintan 45.9% 2,803,000-37 resort homes** 2006/2007 30-year with golf courses, Indonesia (Phase 2a) (Phase 2a) lease with a Club Med Village and option for resort homes another 50 years Pasadenia Garden (Phase 2) a residential development Jakarta, PT Pulomas 25% 47,454 - Residential 2006/2007 30-year in the Pulomas district Indonesia Gemala units (Phase 2) lease with Misori option for another 20 years Residential Township a residential township in Cakung, Jakarta, PT Mitra Sindo 51% 2,700,000 ** ** 2007 30-year Jakarta Indonesia Sukses (Site A (Phase 1A) lease with - Southern) option for PT Mitra Sindo another Makmur 20 years (Site B - Northern) Galleria Tunjungan a retail/commercial complex Surabaya, PT Sentral 80% 23,768-76,000 sm retail 2007 30-year in Surabaya Indonesia Tunjungan (Phase 1) (Phase 1) lease with Perkasa option for another 20 years 228 BG Junction a proposed retail/commercial Surabaya, PT Sentral 80% 25,840 151,459 37,836 2006 30-year development in Surabaya Indonesia Supel lease with Perkasa option for another 20 years

Description Location Held by % Owned Site Area Estimated Estimated Year of Tenure (sm) Building Total Rentable Completion Floor Area (sm) Area (sm) Properties Under Development (cont d) Tanah Lot Resort an integrated resort project Bali, PT Purimas 26% 910,020 - Resort 2006/2007 30-year incorporating resort bungalows, Indonesia Straits Resort bungalows (Phase 1)** lease with a spa village and (Phase 1)** option for recreational facilities another 20 years Malaysia Taman Sutera, Skudai a residential / commercial Johor, Tanah 18% 4,197,672 ## - 263 residential 2005/2006 Freehold development Malaysia Sutera units and 88 Development shop offices Taman Jernih, Bukit Mertajam (Phase 4) a residential development Penang, Jernih 49% 39,946 21,214 64 residential 2004/2006 Freehold comprising terrace houses Malaysia Rezeki units Philippines SM-KL Towers, Ortigas two 55-storey office towers and Manila, SM Keppel Land 24.15% 20,000 13,630 9,859 1985 Freehold a 70-storey residential tower, Philippines (Existing) (Existing) (Existing) interlinked by a 5-storey retail 28,767 18,518 2001 podium called The Podium. (Phase 1- (Phase 1- (Phase 1- The Podium) The Podium) The Podium) Vacant land at Carajay Road Cebu, Opon Realty and 20.2% 7,803 - - - Freehold Philippines Development Corp. Palmdale Heights a 29-block residential development Pasig City, Buena Homes 30.88% 76,156 229,416 174,663 2004 Freehold with 4,000 apartment units, Philippines (Sandoval) (Residential) (Residential) (Phases 3 parking buildings 5,749 3,031 1&2 and 2 commercial buildings (Commercial) (Commercial) comprising 19,137 820 lots 6 residential (Parking) (Parking) blocks and facilities) Metro North Township an option with Araneta Properties San Jose Swansville 46.06% 6,000,000 ** ** ** Freehold to jointly develop a residential del Monte, Investment township on a 600-ha site. Bulacan (Philippines) To be developed in phases. (north of Ortigas CBD), Philippines Thailand^^ Vacant Land for residential development Chonburi, Keppel Thai 45.45% 355,996 - - - Freehold at Highway 332 in Sattahip Thailand Properties 229

Property Portfolio (cont d) Group Properties (Overseas) (cont d) Description Location Held by % Owned Site Area Estimated Estimated Year of Tenure (sm) Building Total Rentable Completion Floor Area (sm) Area (sm) Properties Under Development (cont d) Villa Arcadia at Srinakarin a 367-unit detached housing Bangkok, Thai-Kami 45.45% 159,746-367 detached 2007 Freehold development off Srinakarin Road Thailand houses Villa Arcadia at Watcharapol a 270-unit detached housing Bangkok, TOP Property 66.72%*^ 124,912-270 detached 2007 Freehold development at Watcharapol Road Thailand houses Vietnam Saigon Centre (Phase 2 onwards) a 25-storey office, retail cum Ho Chi Keppel Land 68% 2,886-212 units 2008 50-year serviced apartments Minh City, Watco Co (Phase 2) of serviced (Phase 2) lease at Le Loi Boulevard Vietnam 14,090 apartments with (subsequent retail podium phases) (Phase 2) Tamarind Park a 20-storey apartment tower Ho Chi Keppel Land 60% 2,808-173 apartment 2008 45-year with recreational facilities Minh City, Agtex units lease located in prime Vietnam District 1 Villa Riviera 113 villas located in Ho Chi Saigon Riviera 90% 59,934-113 units of 2007 50-year well-established residential area Minh City, JV Co quality villas lease of An Phu Ward in District 2 Vietnam Saigon Sports City a residential township with Ho Chi Saigon Sports 90% 740,000-782 apartment 2008 50-year quality housing, commercial Minh City, City units (Phase 1) (Phase 1) lease complexes and public Vietnam sports facilities ## Including land to be developed in later stages 230 ^^ Assets owned by Keppel Thai Properties (KTP) in which the Group has a 45.45% stake ** Plans in the process of being finalised *^ Keppel Land owns a 39% direct stake in Top Property Co as well as a 45.45% stake in KTP which also has a 61% stake in Top Property Co

Statistics of Shareholdings As at 1 March 2005 Authorised share capital : $500,000,000 Issued and fully paid-up capital : $356,331,791 Class of shares : Shares of 50 cents each with equal voting rights Size of Shareholdings Number of Number of Shareholders % Shares % 1-999 932 9.38 293,982 0.04 1,000-10,000 7,947 80.01 26,621,608 3.74 10,001-1,000,000 1,043 10.50 42,037,827 5.90 1,000,001 and above 11 0.11 643,710,164 90.32 Total 9,933 100.00 712,663,581 100.00 Location of Shareholders Number of Number Shareholders % of Shares % Singapore 9,171 92.33 707,406,219 99.26 Malaysia 570 5.74 3,629,726 0.51 Others 192 1.93 1,627,636 0.23 Total 9,933 100.00 712,663,581 100.00 231

Statistics of Shareholdings (cont d) Twenty Largest Shareholders Number of Shares % 1. Keppel Corporation Limited 379,697,733 53.28 2. DBS Nominees Pte Ltd 83,484,619 11.71 3. Raffles Nominees Pte Ltd 59,651,814 8.37 4. Citibank Nominees Singapore Pte Ltd 51,137,991 7.18 5. HSBC (Singapore) Nominees Pte Ltd 30,918,609 4.34 6. United Overseas Bank Nominees Pte Ltd 26,335,463 3.70 7. OCBC Nominees Pte Ltd 4,439,206 0.62 8. Morgan Stanley Asia (Singapore) Securities Pte Ltd 2,509,000 0.35 9. Merrill Lynch (Singapore) Pte Ltd 2,416,700 0.34 10. Selat Pte Ltd 1,691,972 0.24 11. Overseas Chinese Bank Nominees Pte Ltd 1,433,102 0.20 12. ABN Amro Nominees Singapore Pte Ltd 953,891 0.13 13. Island Investment Co Pte Ltd 904,718 0.13 14. UOB Kay Hian Pte Ltd 811,488 0.11 15. The Asia Life Assurance Society Ltd - PAR Fund 791,000 0.11 16. Singapore Engineers Pte Ltd 790,725 0.11 17 DB Nominees (S) Pte Ltd 747,000 0.10 18. Societe Generale Singapore Branch 645,000 0.09 19. BNP Paribas Nominees Singapore Pte Ltd 618,000 0.09 20. DBS Vickers Securities (S) Pte Ltd 612,032 0.09 Total 650,590,063 91.29 Substantial Shareholders Number of Shares % 1. Temasek Holdings (Pte) Ltd (Deemed interest) 382,337,733 53.65 2. Keppel Corporation Limited (Including holdings by subsidiary companies) 379,697,733 53.28 Temasek Holdings (Pte) Ltd holds 32% in the share capital of Keppel Corporation Limited, and is deemed to be interested in the shares of Keppel Land Limited held by Keppel Corporation Limited. Approximately 46% of the issued shares of Keppel Land Limited are held by the public. Accordingly, Rule 723 of the Listing Manual of the Singapore Exchange Securities Trading Limited has been complied with. 232

Notice of Annual General Meeting and Closure of Books ALL MEMBERS ARE CORDIALLY INVITED to attend the Annual General Meeting of the Company which will be held at Four Seasons Ballroom, Level 2, Four Seasons Hotel, 190 Orchard Boulevard, Singapore 248646 on Friday, 29 April 2005 at 10.00 a.m. to transact the following business: AS ORDINARY BUSINESS 1. To receive and, if thought fit, adopt the Directors Report and Accounts for the year ended 31 December 2004. (Resolution 1) 2. To declare the first and final dividend as recommended by the Directors for the year ended 31 December 2004 (2003: $22,742,000). (Resolution 2) 3. (a) To re-elect the following Director who is retiring in accordance with Article 100 of the Articles of Association of the Company, and who has offered himself for re-election: Mr Heng Chiang Meng (see Note 2) (Resolution 3) (b) To re-elect the following Directors who are retiring in accordance with Article 94 of the Articles of Association of the Company and who have offered themselves for re-election: Mr Lim Chee Onn (see Note 2) (Resolution 4) Mr Lim Ho Kee (see Note 2) (Resolution 5) Assoc. Prof. Tsui Kai Chong (see Notes 2 and 3) (Resolution 6) 4. To approve Directors fees of $573,000 for the year ended 31 December 2004 (2003: $236,268). (Resolution 7) 5. To re-appoint Messrs Ernst & Young as Auditors, and to authorise the Directors to fix their remuneration. (Resolution 8) AS SPECIAL BUSINESS 6. To consider and, if thought fit, approve with or without modification, the following Ordinary Resolution: That pursuant to Section 161 of the Companies Act (Chapter 50) of Singapore and Article 8(B) of the Company s Articles of Association, authority be and is hereby given to the Directors of the Company to: (a) (i) issue shares in the capital of the Company ( Shares ) whether by way of right, bonus or otherwise, and including any capitalisation pursuant to Article 136 of the Company s Articles of Association of any sum for the time being standing to the credit of any of the Company s reserve accounts or any sum standing to the credit of the profit and loss account or otherwise available for distribution; and/or (ii) make or grant offers, agreements or options that might or would require Shares to be issued (including but not limited to the creation and issue of warrants, debentures or other instruments convertible into Shares) (collectively Instruments ). at any time and upon such terms and conditions and for such purposes and to such persons as the Directors may in their absolute discretion deem fit; and 233

Notice of Annual General Meeting and Closure of Books (cont d) (b) (notwithstanding that the authority so conferred by this Resolution may have ceased to be in force) issue Shares in pursuance of any Instrument made or granted by the Directors while the authority was in force, provided that: (i) (ii) the aggregate number of Shares to be issued pursuant to this Resolution (including Shares to be issued in pursuance of Instruments made or granted pursuant thereto and any adjustments effected under any relevant Instrument), does not exceed 50% of the issued share capital of the Company (as calculated in accordance with sub-paragraph (ii) below), of which the aggregate number of Shares to be issued other than on a pro rata basis to shareholders of the Company including Shares to be issued in pursuance of Instruments made or granted pursuant to this Resolution and any adjustments effected under any relevant Instruments does not exceed 20% of the issued share capital of the Company (as calculated in accordance with sub-paragraph (ii) below); for the purpose of determining the aggregate number of Shares that may be issued under sub-paragraph (i) above, the percentage of issued share capital shall be calculated based on the issued share capital of the Company as at the date of the passing of this Resolution after adjusting for: (aa) (bb) (cc) new Shares arising from the conversion or exercise of convertible securities; new Shares arising from exercising share options or vesting of share awards outstanding or subsisting as at the date of the passing of this Resolution approving the mandate, provided the options or awards were granted in compliance with the rules and regulations of the Singapore Exchange Securities Trading Limited ( SGX-ST ); and any subsequent consolidation or sub-division of Shares; (c) (d) in exercising the power to make or grant Instruments (including the making of any adjustments under the relevant Instrument), the Company shall comply with the provisions of the Listing Manual of the SGX-ST for the time being in force (unless such compliance has been waived by the SGX-ST) and the Articles of Association for the time being of the Company; and the authority conferred by this Resolution shall, unless revoked or varied by the Company in general meeting, continue in force until the conclusion of the next Annual General Meeting or the expiration of the period within which the next Annual General Meeting of the Company is required by law to be held, whichever is the earlier (see Note 4). (Resolution 9) 7. To consider and, if thought fit, approve with or without modification, the following resolutions of which Resolutions 10 and 11 will be proposed as Ordinary Resolutions and Resolution 12 as a Special Resolution: 7.1 That 234 (a) approval be and is hereby given for the purposes of Chapter 9 of the Listing Manual of the SGX-ST, for the Company, its subsidiaries and target associated companies or any of them to enter into any of the transactions falling within the types of Interested Person Transactions, particulars of which are set out in Appendix A of the Company s Circular to Shareholders dated 31 March 2005 (the Circular ), with any party who is of the class of Interested Persons described in the Circular, provided that such transactions are made on normal commercial terms and will not be prejudicial to the interests of the Company and its minority shareholders and in accordance with the review procedures set out in Appendix A of the Circular (the Shareholders Mandate );

(b) (c) (d) the Shareholders Mandate shall, unless revoked or varied by the Company in general meeting, continue in force until the date that the next Annual General Meeting of the Company is held or is required by law to be held, whichever is earlier; the Audit Committee of the Company be and is hereby authorised to take such action as it deems proper in respect of such procedures and/or to modify or implement such procedures as may be necessary to take into consideration any amendment to Chapter 9 of the Listing Manual which may be prescribed by the SGX-ST from time to time; and that the Directors of the Company be and are hereby authorised to complete and do all such acts and things (including executing all such documents as may be required) as they may consider expedient or necessary or in the interest of the Company to give effect to this Resolution (see Note 5). (Resolution 10) 7.2 That the Directors of the Company be and are hereby authorised to make purchases from time to time of up to 10% of the issued ordinary share capital of the Company (ascertained as at the date of the last Annual General Meeting of the Company or at the date of this Resolution, whichever is higher) at any price up to but not exceeding the Maximum Price, in accordance with Appendix B of the Circular and the Guidelines on Share Purchases in Appendix B and this mandate shall, unless revoked or varied by the Company in general meeting, continue in force until the date on which the next Annual General Meeting of the Company is or is required by law to be held, whichever is the earlier (see Note 6). (Resolution 11) 7.3 That Articles 144 and 149 of the Articles of Association of the Company be amended, and a new Article 142B be adopted in the manner as set out in Appendix C of the Circular. (Resolution 12) 8. To transact other business which can be transacted at the Annual General Meeting of the Company. The Company had on 26 January 2005 advised that the Register of Members of the Company will be closed from 9 to 12 May 2005 (both dates inclusive) for the preparation of dividend warrants. Duly completed transfers received by the Company up to 5:00 p.m. on 6 May 2005 will be registered before entitlements to the proposed dividend for the year ended 31 December 2004 are determined. Directors have recommended a first and final dividend of 10% (or 5 cents per share) less tax amounting to $28.5 million on the existing capital (2003: 8% less tax or 4 cents per share less tax amounting to $22.7 million) in respect of the financial year ended 31 December 2004 for approval by Members at the Annual General Meeting to be held on 29 April 2005. The final dividend, if approved, will be payable on 24 May 2005. By Order of the Board CHOO CHIN TECK Joint Company Secretaries YEO KAH TIANG Singapore, 31 March 2005 235

Notice of Annual General Meeting and Closure of Books (cont d) Notes: 1. A Member is entitled to appoint one proxy or two proxies to attend and vote in his place. A proxy need not also be a Member of the Company. A Member which is a corporation is entitled to appoint its authorised representative or proxy to vote on its behalf. Members wishing to vote by proxy at the Meeting may use the Proxy Form enclosed. To be valid, the completed Proxy Form must be lodged at the Registered Office of the Company at 230 Victoria Street #15-05, Bugis Junction Towers, Singapore 188024 not less than 48 hours before the Meeting. 2. Detailed information on the Directors can be found in the Board of Directors, and Profile of Directors and Senior Management sections of the Company s Annual Report for the financial year ended 31 December 2004. 3. Assoc. Prof. Tsui Kai Chong will, upon re-election, continue to serve as member of the Audit Committee. He is considered an Independent Director pursuant to Clause 704(8) of the Listing Manual of the SGX-ST. 4. Ordinary Resolution No. 9 is to empower the Directors from the date of the Annual General Meeting until the date of the next Annual General Meeting to issue further Shares and Instruments in the Company, including a bonus or rights issue. The maximum number of Shares which the Directors may issue under this Resolution shall not exceed the quantum set out in the Resolution. 5. Ordinary Resolution No. 10 relates to the renewal of a mandate first given by Members to the Company on 25 June 1997 allowing the Company and its related corporations to enter into transactions with interested persons as defined in Chapter 9 of the Listing Manual of the SGX-ST, details of which are set out in the Circular to Members dated 10 June 1997. 6. Ordinary Resolution No. 11 relates to the renewal of a mandate first approved by Members on 5 October 1999 authorising the Company to purchase its own shares subject to and in accordance with the guidelines set out in the Circular to Members dated 14 September 1999, the Companies Act (Chapter 50) of Singapore and the rules of the SGX-ST. 236

Share Transaction Statistics Comparative Price Trends Keppel Land Straits Times Index SGX All-S Equities Prop Closing Normalised Closing Normalised Closing Normalised Month End Price (S$) Values Index Values Index Values Jan 04 1.81 100.00 1848 100.00 467 100.00 Feb 04 1.92 106.08 1889 102.22 478 102.36 Mar 04 1.87 103.31 1859 100.60 450 96.36 Apr 04 1.60 88.40 1842 99.68 434 92.93 May 04 1.62 89.50 1789 96.81 404 86.51 Jun 04 1.61 88.95 1838 99.46 419 89.72 Jul 04 1.86 102.76 1892 102.38 452 96.79 Aug 04 1.80 99.45 1918 103.79 458 98.07 Sep 04 1.90 104.97 1985 107.41 480 102.78 Oct 04 1.81 100.00 1981 107.20 475 101.71 Nov 04 2.07 114.36 2028 109.74 510 109.21 Dec 04 2.25 124.31 2066 111.80 518 110.92 Jan 05 2.30 127.07 2084 112.77 533 114.13 Normalised Values 130 125 120 115 110 105 100 95 90 85 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Keppel Land Straits Times Index SGX All-S Equities Prop Keppel Land s share price appreciated by 24% during the year. It started at $1.81 in January and closed at $2.25 in December. The share price crossed the $2 level in November and subsequently outperform the Straits Times Index and the SGX All-Singapore Equities Properties Index which gained 12% and 11% respectively during the same period. Besides striving for more value creating businesses, the Group will also continue to direct efforts towards maintaining a high level of corporate governance and transparency. 237

Share Transaction Statistics (cont d) Share Prices and Turnover 120 3.0 100 2.5 80 2.0 60 1.5 40 1.0 20 0.5 0 2000 2001 2002 2003 2004 Turnover High and Low Prices 0 Straits Times and Straits Times Properties Indices Index 2500 2000 1500 1000 500 0 2000 2001 2002 2003 2004 2005 Straits Times Index Straits Times Properties Index Investor Data 2000 2001 2002 2003 2004 Earnings per share (cents) (Note 1) 17.3 (51.7) 3.7 14.2 18.8 Dividend per share (cents) (Note 2) 3 3 3.5 4 5 Share price (cents) (Note 3) Highest 287 274 234 192 225 Lowest 151 123 93 96 150 Average 219 198 163 139 182 Last done 279 172 97 158 225 Turnover (million shares) 368.3 964.7 947.8 847.9 897.2 Dividend yield (%) (Note 4) 1.4 1.5 2.1 2.9 2.7 Net price-earnings ratio (Note 4) 12.8 n.m. 44.1 9.8 9.7 Net tangible assets per share ($) 3.16 2.28 2.09 2.09 2.26 Notes 1 Earnings are Group profits / (loss) after tax before extraordinary items. 2 These are gross dividends declared out of taxed profits. 238 3 Share prices reflect transactions recorded on the Singapore Exchange Securities Trading Limited. 4 In calculating dividend yields and net price-earnings ratios, the average share prices have been used. 5 n.m. means not meaningful.

Notes 239

240 Notes

Keppel Land Limited (Incorporated in the Republic of Singapore) 230 Victoria Street #15-05 Bugis Junction Towers Singapore 188024 Tel: (65) 6338 8111 Fax: (65) 6337 7168 Co Reg No: 189000001G www.keppelland.com.sg