Annual Report 1999 - Parkway Pantai

Parkway Group HealthcareParkway Holdings Limited3SingaporeEast Shore Hospital• 157-bed generalacute care hospital• Has built a loyalfollowing amongresidents ineastern SingaporeOperationalOwnership: 100%Gleneagles Hospital• 380-bed tertiaryacute care hospital• Regional centre formedical referralsOperationalOwnership: 100%Mount ElizabethHospital• 505-bed acutecare hospital• Establishedreputation in Asiafor expertise andquality care of itsspecialists andhealthcare staffOperationalOwnership: 100%

Parkway Holdings Limited4IndonesiaRS SiloamGleneagles, Jakarta• 328-bed tertiaryacute care hospital• Serves as a hub forParkway’sIndonesianhealthcare operations• Started heart surgeryprogramme in mid1997OperationalOwnership: 30%Joint venture partners:Lippo Group and publicshareholdersRS Budi MuliaGleneagles,Surabaya• 148-bed generalcare hospital• Located in thecentre ofIndonesia’s secondlargest cityOperational,expansion worksplannedOwnership: 100%interest held throughPT Siloam GleneaglesHealthcare TbkRS Gleneagles,Medan• 243-bed generalacute care hospital• Located at westernfringe of Medan’scentral businessdistrict• Opened in August1997OperationalOwnership: 25%Joint venture partners:Mertju Group, OngkoGroupRS Graha Medika,Jakarta• 209-bed generalacute care hospitalOperationalOwnership: 54%interest held throughPT Siloam GleneaglesHealthcare Tbk

Parkway Holdings Limited5MalaysiaIndiaUnited KingdomGleneagles MedicalCentre, Penang• 132-bed generalacute care hospital• Located at JalanPangkor, Penang’sprime residentialdistrict• Currently underexpansion toprovide additionalspace for doctorsoffices, patientbeds and otherclinical facilitiesOperationalOwnership: 70%Joint venture partners:Doctors, BusinessmenGleneagles IntanMedical Centre,Kuala Lumpur• 303-bed generalacute care hospital• Located at JalanAmpang area,Kuala Lumpur’s“embassy row”OperationalOwnership: 30%Joint venture partners:Tan & TanDevelopments Berhad,Insas Berhad, PNBEquity ResourceCorporation Sdn BhdDuncan GleneaglesHospital, Calcutta• 270-bed tertiaryacute care hospital• Diagnostic servicesstarted in October1997Full completion: 2000Ownership: 50%Joint venture partners:Duncans IndustriesLtdThe Heart Hospital,London• 95-bed specialistheart-care hospital• Located at London’sMedical District• Medical centre firstopened in July 1997OperationalOwnership: 65%Joint venture partners:Doctors

Parkway Holdings Limited8 Board of DirectorsAnil ThadaniChairmanTony Tan Choon KeatManaging DirectorThe Directors...Ang Guan SengGordon StavertByrn Sr.Sunil ChandiramaniChang See Hiang

Parkway Holdings Limited9Fan Kow HinGoh Kee SongHo Kian GuanHerman RonaldHochstadtEd Ng Ee PengTan Kai SengDato Tan Chin NamHonorary Consultant

Magnetic ResonanceImaging or MRI utilisesmagnetic fields toproduce high-resolutionimages of body tissues.Medi-Rad Associates Ltd (“Medi-Rad”) is the vision of a group ofradiologists to develop a state-of-the-art radiology centre inSingapore. Established in 1982, Medi-Rad has grown into one of theleading radiology centres in the region today. It serves the needsof all healthcare sectors in Singapore and the region through theprovision of a wide range of radiology services.Computed Tomographyor CT Scan utilisesX-Ray radiation andsophisticated computertechnology to imageinternal organs andvascular structureswith a high degree ofresolution and inextremely short times.

IThe Medi-Rad NetworkOur first all comprehensive Radiologic Clinic was sited in the Promenade,and initially catered to the needs of the private sector in Singapore.In 1990, Medi-Rad extended its coverage further by launchingservices at a polyclinic and a satellite clinic. Following this, Medi-Radincreased further its network by adding four more outlets wherevarious different services are offered.It also began to meet the needs of General Practice Groups and MedicalCentres by providing Radiology Services as a Service Provider.In addition, Medi-Rad now has the ability to meet the needs of patientsand medical specialists from the region.With its main facility at Mount ElizabethMedical Centre, Medi-Rad has a network ofRadiologic Clinics spanning different parts ofSingapore supporting medical professionals intheir radiology and diagnostic needs.

Parkway Holdings Limited12A Message From The Managing Director1999 will be a year most remembered in the history ofParkway Holdings Limited (“Parkway” or “the Group”) for themilestones we achieved. We not only survived the Asian economiccrisis; we secured and reinforced our position as one of the leadersin the region’s private healthcare industry. During the year, theGroup underwent a major restructuring and businessrationalization exercise and emerged with a strong balance sheet,a focused business in the healthcare industry and improvedbusiness performance.Following more than two decades of operations at ParkwayProperties Pte Ltd., early this year we entered into an agreementto sell Parkway Parade, our flagship building. Upon thecompletion of this sale, expected towards the middle of year2000, we will draw a close to the chapter of the Group’s businessin the property market. The funds realised from the sale will beTony C.K. TanManaging Directorused to retire our borrowings and reduce the Group’s debt levelto about $100 million, a relatively low gearing level comparedto the size of the Group today. In 1998, the Group’s borrowingstotalled about $1.2 billion. Since then, the series of deft andstrategic moves by the Group underscore its determination tofocus its resources into its healthcare business as it moves intothe 21st century.

Parkway Holdings Limited13In 1999, reflecting the recovery across many Asianeconomies, our operations in the region too turned in strongercontributions. During the year, the stronger performance by theGroup’s Asian operations was partially offset by the operatinglosses, totalling approximately $21.9 million, incurred by itsHeart Hospital in London. Notwithstanding these losses, theGroup turned in a pre-tax operating profit of about $48.7 millionrepresenting an increase of 31% compared to the $37.1 millionProfit Before Taxation($million)achieved in the previous year.7060In Asia, the Group saw a pick up across its regional businessesas well as higher arrivals of foreign patients into Singapore seekingmedical attention. This trend is expected to continue as theeconomic conditions in Asian countries improve. In 1999, theIndonesian and the Malaysian hospitals have turned in goodperformances with our hospitals in both countries reportingstronger cash flow positions.504030201001995 1996 1997 1998 1999At the Group level, our cash flow continues to improve as aresult of the interest savings from lower bank borrowings andthe stronger business performance of the entire Group.

Parkway Holdings Limited14Amongst the more significant business developments inthe Group during the 1999 financial year are the establishmentof Gleneagles Clinical Research Centre, a one-stop hub forclinical trials and the establishment of Gleneagles GlobalMedical Care, a medical care and evacuation service. This year,Onemedhub.com, the Group’s B2B e-commerce portal for12001000800Total Debt (Gross)($million)healthcare was established. Two of the Group’s subsidiaries,Medi-Rad Associates Ltd., the radiology and imaging unit, andParkway Laboratory Services Ltd., are now listed on theSingapore Exchange Dealing and Automated Quotation Systems(“SGX-SESDAQ”).600400On 14 March 2000, Medi-Rad Associates Ltd launched itsinitial public offering (“IPO”) during which a total of 32 million20001995 1996 1997 1998 1999new shares were offered comprising 13.75 million offer sharesand 18.25 million placement shares. The shares were well receivedby the public and upon the closing of the offering, the subscriptionreceived from public tranche was about 27.4 times the totalnumber of share offered. The placement tranche was fullysubscribed at the beginning of the IPO launch.

Parkway Holdings Limited15Following closely on the heels of the listing of Medi-RadAssociates Ltd., Parkway Laboratory Services Ltd launched itsinitial public offering on 7 April 2000. During the IPO, a totalof 38 million shares were offered comprising14.25 million offershares and 23.75 million placement shares. Upon the closing ofthe public offer, the subscription received from the public tranchewas about 5.2 times the total number of shares offered. Theplacement tranche was fully subscribed at the beginning of theinitial public offer.400Turnover($million)3501999 marks the first full year of operation at the HeartHospital in London. The London Heart Hospital is a newlyestablished operation and over the last 12 months the hospitalhas rapidly gained a firm foothold in the healthcare scene inLondon. Today it is particularly noted as one of the leaders inthe field of pediatric cardiology services. Furthermore, thegrowth in the hospital’s occupancy rate is very encouragingand we expect to see higher occupancy rates, as patients becomemore aware of the quality of healthcare services that the hospitaland its medical team are capable of delivering.3002502001501005001995 1996 1997 1998 1999

Parkway Holdings Limited16The implementation of its new corporate strategies hasturned the Parkway Group into a formidable business force inthe healthcare industry in the region. With the consolidationand strategic streamlining of its resources, the Group now hasthe financial and management capabilities to explore many newbusiness avenues. The alternatives include the possibility of a($)0.160.140.120.100.080.060.040.02Earnings Per Sharecapital redemption and investments in new businesses. To ensurethat the Group continues to maintain our leadership position inthe healthcare industry across Asia, we will always be on thelook out for opportunities to invest in new business investmentsand structure strategic alliances with synergistic partners in themarket. More importantly, the management of ParkwayHoldings Limited is committed to continue to deliver value andmake the Group an attractive and rewarding investment for allour shareholders.0.001995 1996 1997 1998 1999Looking forward, as the Asian economies continue theirrecovery the Board of Directors and the management of ParkwayHoldings Limited are optimistic about the performance of theGroup in year 2000. The demand for hospital and medical servicesduring the first quarter of the year continues to improve as wesee patients returning from our traditional markets like Indonesiaand Malaysia. Even more encouraging are the patients from newermarkets like India where marketing efforts only commenced lastyear.

Parkway Holdings Limited17Finally on behalf of the board and management of ParkwayHoldings Limited, we would like to thank all our employeesand our shareholders for their support over the past year. Wewould also like to take this opportunity to thank Mr Ang PoonTiak for his contributions to the Group as he retires from hisposition as the director of the Group at the end of the 1999financial year. At the same time, we welcome Mr Anil Thadani,Mr Gordon Stavert Byrn Sr. and Mr Sunil Chandiramani whojoined the board on 17 December 1999 and a special welcometo Mr Anil Thadani as he assumed the position of the Chairmanof the Board on 17 January 2000.The Board of Directors has proposed a final dividend of 8%subject to the approval of the shareholders at the forthcomingAnnual General Meeting.Tony C.K. TanManaging Director

Parkway Laboratory Services (“PLS” or “the Company”) isone of the largest privately owned laboratory serviceproviders in Singapore. It is a clinical laboratory licensedby the Singapore Ministry of Health under the PrivateHospitals & Medical Clinics (Amendment) Act 1999 andRegulations and audited by the Medical Audit & AccreditationUnit (MAAU). In 1994, operating under the name ofMount Elizabeth Healthcare Services Pte Ltd, it was thefirst medical laboratory in the Asia Pacific to achieveBVQI ISO 9002 Quality Certification.The PLS BackgroundThe Company first expanded in 1991into a comprehensive diagnosticlaboratory serving the needs of theinpatients and outpatients of MountElizabeth Hospital and East ShoreHospital as well as patients referredto it by the specialists operating bothwithin and outside of the medicalcentres annexed to the hospitals.In 1995, the Company was acquiredby Parkway Holdings Limited(“Parkway Group”).Today, PLS has a network of laboratories located onthe premises of East Shore Hospital, Gleneagles Hospitaland Mount Elizabeth Hospital, the three privatehospitals owned by the Parkway Group as well as areference laboratory in Henderson Industrial Parkwhich also serves as its headquarters.

The Parkway LaboratoryServicesThe services provided by PLS are:• Clinical Laboratory Services(a)(b)(c)(d)(e)ChemistryHaematologyImmunohaematologyMicrobiologyImmunology and Serology• PathologyThe Pathology Department is divided into the HistopathologySection and Cytology Section.The services include:(a)routine diagnostic Histopathology for all surgicaland biopsy specimens(b)(c)providing frozen tissue sections for intra-operative diagnosisdiagnostic cytology, which covers all standardapplications, including cervical PAP smears,fluids and aspirates, and Fine Needle AspirationCytology (FNAC)(d)(e)post-mortem examinationsscreening for Down’s Syndrome• GeneticsThis is divided into the Cytogenetics and MolecularGenetics Sections.(a)Prenatal diagnosis: Amniotic fluid, chorionic villi, foetalcord blood(b)Prenatal aneuploidy screening: Molecular fluorescentinterphase analysis(c)Other analysis

Parkway Holdings Limited20 An Update On Parkway Group HealthcareOur Singapore healthcare operations recovered strongly withthe improving economic conditions in Asia in 1999. The increasingnumber of foreign patients and the successful implementation ofcost containment measures by the Group are reflected in theimproved pre-tax operating profit contributions from healthcare.The changing face of the healthcare scene is also evident inthe continuing shift of the types of cases toward more complexprocedures handled by the Group’s Singapore hospitals. This isin line with the recovery in foreign patient numbers and boostedmean revenues per admission by about 3% compared to 1998.In 1999, the number of day cases surged by about 13.3%while the increase in the number of admissions and average lengthof stay rose minimally by about 0.4% and 0.8% respectively. Thesestatistics correspond to our expectations that the number ofpatient-days in hospitals will decline, as minimally invasiveDr Lim Cheok PengManaging DirectorParkway Group Healthcare Pte Ltdsurgery becomes more popular and the quality of healthcareservices improves.Over the last few years, Parkway Group Healthcare Pte Ltd(“PGH”) saw significant growth and development throughoutthe organization. We now have a network of 12 hospitals anddiagnostic laboratories and medical centers in selected Asiancountries as well as a hospital in London, the Heart Hospital,which commenced operations in 1999. Riding on our stronginfrastructure, PGH is now poised to grow further and add valueto our range of healthcare services.The role of healthcare will grow increasingly important asthe population in Singapore ages. In the 21st century Singapore

Parkway Holdings Limited21will experience a greying population who may require otherhealthcare services. To meet these new demands, the healthcare sectorwill need to provide for a different set of needs. Instead of bringingthe elderly sick to our hospitals, the challenge for the industry willbe to develop a way of bringing the hospitals to their doorsteps,nursing and monitoring them in the comfort of their homes.In time to come, doctors will be able to monitor electrocardiograms,blood pressure, blood sugar, respiratory functions,glaucoma and a wide range of other healthcare needs this way. Whensuch monitoring devices are available, we should be able to provideintensive care within the confines of the home, which can be monitoredfrom the hospital’s alarm centre. Patients may be dischargedright after surgery, and be administered blood transfusion,chemotheraphy and antibiotics at home. This is a new concept inthe treatment and management of the chronically ill patients.As time passes, the healthcare scene will inevitably becomemore competitive. New hospitals and medical centres will bedeveloped. The government in Singapore has recently announcedthat it will integrate public healthcare by grouping its polyclinics,hospitals and medical centres into two main clusters. Polyclinicswill thereafter be able to refer patients right back to the medicalcentres and motherhouse hospitals. This will ensure efficiencyand protect the public healthcare sector so that it does not loseits patients. On the other hand, this move will also further raisethe barriers to entry. Land costs, manpower costs and high-techequipment costs are all high. New entrants must have deeppockets. Independent healthcare operations cannot just open ahospital and expect to survive anymore. Without efficiency, aready supply of patients and economies of scale, it will be difficultEast Shore Hospital

Parkway Holdings Limited22to compete in a market like Singapore where the population issmall relative to other countries in the region.The infrastructure that PGH has built over the last few yearshas grown into a formidable force today. The B2B e-commerceplatform that we are currently developing, Onemedhub.com, willinter-link our infrastructure combining the supply chainmanagement with strong fulfillment and logistics capabilities.This will help increase our efficiency and sharpen our competitiveedge in the market adding value to our patients and their medicaldoctors and specialists, translating eventually to improvedshareholders’ value to the organization.In the second half of 1999, we set up the Gleneagles ClinicalResearch Centre, a hub for clinical research and drug developmentin Asia. This corresponds to the vision of the Singapore governmentto turn Singapore into a medical hub and also enables doctors inGleneagles Hospitalthe private practice to keep up with the advances in the medicalenvironment and an opportunity to upgrade their skills.To date there has never been an Asian centre for clinical trialsand new drugs were always launched here six months later thanother regional markets because trials had to be done elsewhere.The Gleneagles Clinical Research Centre is an independent entitydedicated to conduct trials with proper ethics and scientificcommittees to oversee the trials in Asia.Clinical research is big business today. In Singapore, themarket is worth about $120 million. Having a centre to attractpharmaceutical research here will put us in a different leaguealtogether as a medical hub.

Parkway Holdings Limited23Other developments in the Group during the year also includethe initial public listing of our radiology and imaging arm, Medi-Rad Associates Ltd and laboratory services, Parkway LaboratoryServices Ltd. These two units set the precedents for all other unitswithin the Group that have the capabilities to grow into independentbusiness entities. Riding on PGH as a nucleus through which tonurture and develop new healthcare specialties, we are able to offeropportunities to grow new healthcare services to better serve theneeds of our patients and their doctors into the new century.With the recent restructuring of Parkway Holdings Ltd andthe decision to focus on healthcare as the Group’s core business,we now have the resources to grow and develop our capabilitiesand network in Asia and across the world. Today, our vision ofParkway Group Healthcare extends beyond a physical networkof bricks and mortar. Horizontally we will grow and expand ourhealthcare reach to more countries in Asia like China and Indiawhere there is a major demand for basic healthcare facilities.Vertically we will continue to bring in different healthcarespecialities and disciplines especially in the areas of life sciencesand biotechnology. In addition, with the incorporation of thecapabilities of web-enabled information technology andcommunication, we aim to grow the Parkway Group as anunsurpassed leading healthcare provider in Asia.Mount Elizabeth HospitalDr Lim Cheok PengManaging DirectorParkway Group Healthcare Pte Ltd

Parkway Holdings Limited24Corporate InformationDirectorsAnil ThadaniTony Tan Choon KeatAng Guan Seng*Gordon Stavert Byrn Sr.Sunil ChandiramaniChang See HiangFan Kow HinGoh Kee Song*Ho Kian GuanHo Kian HockHerman Ronald Hochstadt*Ed Ng Ee Peng(Appointed on 28 April 2000)Tan Kai SengChairmanManaging DirectorAlternate to Ho Kian Guan* members of the Audit CommitteeHonorary ConsultantDato Tan Chin NamSecretaryJune Tay Kwok FungRegistered Office80 Marine Parade Road#22-01/09Parkway ParadeSingapore 449269Telephone: 345 8822Share RegistrarM & C Services Private Limited16 Raffles Quay #23-01Hong Leong BuildingSingapore 048581Telephone: 227 6660AuditorsKPMGCertified Public AccountantsSingaporePartner-in-charge: Chay Fook YuenPrincipal BankersThe Development Bank of SingaporeABN AMRO Bank N.V.Banque Nationale de Paris, Singapore BranchCrédit Agricole IndosuezThe Hongkong and Shanghai Banking Corporation LimitedOversea-Chinese Banking Corporation LimitedOverseas Union Bank Limited

Financial StatementsParkway Holdings Limitedand its Subsidiaries25Directors’ Report 26Statement by Directors 37Auditors’ Report to the Membersof Parkway Holdings Limited 38Consolidated Balance Sheet 39Consolidated Profit and Loss Account 40Consolidated Statement of Cash Flows 41Balance Sheet 44Profit and Loss Account 45Notes to the Financial Statements 46

Parkway Holdings Limitedand its Subsidiaries26Directors’ Reportfor the year ended 31 December 1999We, the undersigned directors, on behalf of all the directors of the Company, take pleasure inpresenting this report together with the audited financial statements of the Group and of theCompany for the financial year ended 31 December 1999.DirectorateThe directors in office at the date of this report are:Anil Thadani (appointed on 17 December 1999)Dr Han Cheng Fong(Deputy Chairman)Tony Tan Choon Keat(Managing Director)Ang Guan SengGordon Stavert Byrn Sr. (appointed on 17 December 1999)Sunil Chandiramani (appointed on 17 December 1999)Chang See HiangFan Kow HinGoh Kee SongHo Kian GuanHo Kian Hock(alternate to Ho Kian Guan)Herman Ronald HochstadtTan Kai SengPrincipal ActivitiesThe principal activities of the Company during the financial year are those relating to investmentholding while those of the subsidiaries consist of the business of:(a)(b)(c)(d)(e)(f)(g)(h)(i)private hospital ownership and management and related healthcare services,ownership and management of medical clinics,dealing in medical supplies, equipment and healthcare products,practice of dental surgeons and the operation of dental clinics,provision of a clinical research centre,providing industrial, clinical and medical laboratory testing and consultancy services,property investment and development,investment holding and trading, andadvertising and building management agency.There have been no significant changes in the activities during the financial year.

Directors’ Reportfor the year ended 31 December 1999Parkway Holdings Limitedand its Subsidiaries27Acquisitions and Disposals of SubsidiariesThe following subsidiaries were incorporated during the financial year:Name of SubsidiaryPaid-up CapitalParkway Group Healthcare Pte LtdGleneagles Medical Global Care Pte Ltd $2Mount Elizabeth Healthcare Services Sdn BhdOrifolio Options Sdn BhdRM2Gleneagles Hospital LimitedGleneagles CRC Pte Ltd $2During the financial year:(a)(b)the Company acquired the remaining 16% equity interest in a subsidiary, Westront Pte Ltd fora nominal consideration of $1. The net liabilities acquired were $1,446,787.Gleneagles International GP Pte Ltd, a wholly-owned subsidiary, acquired 100% equity interestin a related corporation, Shenton Family Medical Clinics Pte Ltd (formerly known as SOSMedical Emergencies Pte Ltd) for a cash consideration of $2 from its wholly-owned subsidiary,Shenton Medical Holdings Pte Ltd.The following subsidiary was disposed of during the financial year:NetLiabilitiesPercentageName of Subsidiary Consideration Disposed Disposed$ $ %Parkway Managed Care Pte Ltd 2,304,500 (1,006,736) 50Parkway (PNG) Limited, a wholly owned subsidiary of Weian Investments Pte Ltd, was de-registered.Other than the above, there were no acquisitions or disposals of subsidiaries during the financial year.

Parkway Holdings Limitedand its Subsidiaries28Directors’ Reportfor the year ended 31 December 1999Financial ResultsResults of the Group and of the Company for the financial year are:The Group The Company$’000 $’000Profit after taxation but before minority interestsand extraordinary items 35,341 22,386Minority interests 3,500 –Extraordinary items 84,992 (3,200)Profit after taxation, minority interests and extraordinary items 123,833 19,186Appropriations:Interim dividend of 5% less 26% tax (6,653) (6,653)Proposed final dividend of 8% less 25.5% tax (10,699) (10,699)(17,352) (17,352)Retained profit transferred to Revenue Reserves 106,481 1,834Transfers to and from Reserves and ProvisionsThere were the following movements in reserves during the financial year:The Group The Company$’000 $’000Increase/(Decrease) in:Share premium 1,834 1,834Revaluation reserves (139,934) –Exchange fluctuation reserves 25,875 3,200Revenue reserves 106,144 1,834Movements in provisions are set out in the accompanying notes to the financial statements.Issues of Shares and DebenturesDuring the financial year, the Company issued 615,000 ordinary shares of $0.50 each for cash,following the exercise of options under the Parkway Employee Share Option Scheme (“ParkwayScheme”) at the following exercise prices:Number of SharesExercise Price Per Share100,000 $3.538100,000 $3.394415,000 $3.490615,000

Directors’ Reportfor the year ended 31 December 1999Parkway Holdings Limitedand its Subsidiaries29Issues of Shares and Debentures (cont’d)During the financial year:(a)a subsidiary, Shenton Family Medical Clinics Pte Ltd (formerly known as SOS MedicalEmergencies Pte Ltd) increased its authorised share capital from $25,000 divided into 25,000ordinary shares of $1 each to $1,000,000 divided into 1,000,000 ordinary shares of $1 eachby the creation of 975,000 ordinary shares of $1 each.(b) a subsidiary, Nippon Medical Care Pte Ltd, issued an additional 499,997 ordinary shares of $1each credited as fully paid by way of capitalisation of loans from its shareholders.(c)a subsidiary, Pulau Pinang Clinic Sdn. Bhd. increased its authorised share capital fromRM20,000,000 to RM50,000,000 divided into 50,000,000 ordinary shares of RM1 each bythe creation of 30,000,000 ordinary shares of RM1 each.The subsidiary issued an additional 6,459,331 ordinary shares of RM1 each at par for cash byway of a rights issue on the basis of one new ordinary share for every one existing ordinaryshare to provide financing for the extension of the hospital building.(d)(e)(f)(g)a subsidiary, Gleneagles Medical Global Care Pte Ltd, was incorporated with an authorisedshare capital of $100,000 by the creation of 100,000 ordinary shares of $1 each. 2 subscribers’shares of $1 each fully paid were issued at par for cash.a subsidiary, Gleneagles CRC Pte Ltd, was incorporated with an authorised share capital of$100,000 by the creation of 100,000 ordinary shares of $1 each. 2 subscribers’ shares of $1each fully paid were issued at par for cash.a subsidiary, Orifolio Options Sdn Bhd, was incorporated with an authorised share capital ofRM100,000 by the creation of 100,000 ordinary shares of RM1 each. 2 subscribers’ shares ofRM1 each fully paid were issued at par for cash.a subsidiary, Parkway Group Healthcare Pte Ltd (“PGH”) issued 71,400,000 non-cumulativeredeemable preference shares of $0.01 each at a premium of $0.99 per share to the Companyas consideration for the capitalisation of the inter-company balance owing to the Company.Except as disclosed above, neither the Company nor its subsidiaries issue any shares and debenturesduring the financial year.Arrangements to Enable Directors to Acquire Shares or DebenturesNeither at the end of nor at any time during the financial year was the Company a party to anyarrangement whose objects are, or one of whose objects is, to enable the directors of the Companyto acquire benefits by means of the acquisitions of shares or debentures of the Company or anyother body corporate, except as disclosed under “Share Options” below.Directors’ Interests in Shares, Warrants and OptionsExcept as disclosed in this report, no director who held office at the end of the financial year hadinterests in shares or debentures of the Company or of related corporations either at the beginningof the year or date of appointment, if later, or at the end of the financial year.

Parkway Holdings Limitedand its Subsidiaries30Directors’ Reportfor the year ended 31 December 1999Directors’ Interests in Shares, Warrants and Options (cont’d)According to the register kept by the Company for the purposes of Section 164 of the Companies Act,Chapter 50, particulars of beneficial interests of directors who held office at the end of the financialyear in shares, warrants and share options in the Company and related corporations, are as follows:The CompanyHolding in which thedirector is deemed toHeld by the director have an interestAt beginning At end At beginning At endof the year of the year of the year of the yearOrdinary Shares of $0.50 eachGoh Kee Song 35,000 35,000 200,000 200,000Tony Tan Choon Keat 7,108,388 7,108,388 1,105,000 1,105,000Tan Kai Seng 225,000 300,000 – –Options to subscribe for Ordinary Shares of $0.50 each(exercise price at $3.394 per share and exercisable between17/4/1996 and 16/2/2000)Tan Kai Seng 100,000 – – –Options to subscribe for Ordinary Shares of $0.50 each(exercise price at $3.682 per share and exercisable between21/3/1997 and 20/1/2001)Tan Kai Seng 100,000 100,000 – –Options to subscribe for Ordinary Shares of $0.50 each(exercise price at $5.690 per share and exercisable between3/4/1998 and 2/2/2002)Tan Kai Seng 100,000 100,000 – –Options to subscribe for Ordinary Shares of $0.50 each(exercise price at $3.490 per share and exercisable between20/4/1999 and 19/2/2003)Tan Kai Seng 100,000 100,000 – –Related CorporationPulau Pinang Clinic Sdn BhdShares of RM1.00 eachTony Tan Choon Keat – – 18,660 262,901The directors’ interests in shares and share options in the Company and related corporations as at21 January 2000 (being 21 days after the end of the financial year) remained unchanged.For the purposes of determining directors’ deemed interest in shares or debentures at the beginningand at the end of the financial year, the directors have applied the provisions of Section 7 of theCompanies Act, Chapter 50, as amended by the Companies (Amendment) Act 1998. As such, thedirectors whose deemed interest in shares or debentures as stated in the Directors’ Report for theyear ended 31 December 1997, no longer have such deemed interest following the amendment tothe Companies Act.

Directors’ Reportfor the year ended 31 December 1999Parkway Holdings Limitedand its Subsidiaries31DividendsSince the end of the last financial year, a net dividend of $7,962,000 was paid in respect of theprevious year as proposed in the Directors’ Report of that year. A net interim dividend of $6,653,000has been paid during the year and the directors now recommend the payment of a net final dividendof $10,699,000 for the financial year under review.Other Statutory Information(a)Bad and Doubtful DebtsBefore the profit and loss account and the balance sheet of the Company were made out, thedirectors took reasonable steps to ascertain what action had been taken in relation to writingoff bad debts and providing for doubtful debts of the Company. The directors have satisfiedthemselves that all known bad debts have been written off and that adequate provision hasbeen made for doubtful debts.At the date of this report, the directors are not aware of any circumstances which wouldrender any amounts written off for bad debts or provided for doubtful debts in the Groupinadequate to any substantial extent.(b)Current AssetsBefore the profit and loss account and the balance sheet of the Company were made out, thedirectors took reasonable steps to ascertain that current assets of the Company which wereunlikely to realise their book values in the ordinary course of business have been writtendown to their estimated realisable values and that adequate provision has been made for thediminution in value of such current assets.At the date of this report, the directors are not aware of any circumstances not otherwisedealt with in this report which would render the values attributable to current assets in theconsolidated financial statements misleading.(c)Charges and Contingent LiabilitiesSince the end of the financial year:• no charge on the assets of the Company or any corporation in the Group has arisenwhich secures the liabilities of any other person; and• no contingent liability of the Company or any corporation in the Group has arisen.(d)Ability to Meet ObligationsNo contingent liability or other liability of the Company or any corporation in the Group hasbecome enforceable or is likely to become enforceable within the period of twelve monthsafter the end of the financial year which, in the opinion of the directors, will or maysubstantially affect the ability of the Group or of the Company to meet their obligations asand when they fall due.

Parkway Holdings Limitedand its Subsidiaries32Directors’ Reportfor the year ended 31 December 1999Other Statutory Information (cont’d)(e)(f)Other Circumstances Affecting Financial StatementsAt the date of this report, the directors are not aware of any circumstances not otherwisedealt with in this report or the financial statements which would render any amount statedin the consolidated financial statements or the financial statements of the Company misleading.Unusual ItemsIn the opinion of the directors, no item, transaction or event of a material and unusual nature hassubstantially affected the results of the operations of the Group or of the Company during thefinancial year except as disclosed as exceptional and extraordinary items in the financial statements.In the opinion of the directors, no item, transaction or event of a material and unusual naturehas arisen in the interval between the end of the financial year and the date of this reportwhich is likely to affect substantially the results of the operations of the Group or of theCompany for the financial year in which this report is made.Directors’ Interests in ContractsSince the end of the last financial year, no director has received or become entitled to receive abenefit by reason of a contract made by the Company or a related corporation with the director orwith a firm of which he is a member or with a company in which he has a substantial financialinterest. During the year, certain transactions were made between the Company and a firm inwhich one of the directors is deemed to have a substantial interest in the ordinary course of business.However, the director has neither received nor will he become entitled to receive any benefit fromthese transactions.Share Options(a)(b)Parkway Employee Share Option Scheme (“Parkway Scheme”)Details of the Parkway Scheme were set out in the Directors’ Report for the year ended31 December 1988, and amendments were effected by a resolution passed at the ExtraordinaryGeneral Meeting of the Company held on 22 August 1994 and which were set out in theDirectors’ Report for the year ended 31 December 1994.Share Options Granted During The YearNo new share options were granted to employees under the Parkway Scheme in respect of thefinancial year under review. None of the share options offered in previous financial years wasgranted at a discount.

Directors’ Reportfor the year ended 31 December 1999Parkway Holdings Limitedand its Subsidiaries33Share Options (cont’d)(c)Share Options ExercisedDuring the financial year, the Company issued 615,000 ordinary shares of $0.50 each forcash, following the exercise of options under the Parkway Scheme at the following exerciseprices:Number of SharesExercise Price Per Share100,000 $3.538100,000 $3.394415,000 $3.490615,000(d)Unissued Shares Under OptionAt the end of the financial year, unissued shares of the Company under option are as follows:(i)(ii)20,000 ordinary shares of $0.50 each at $3.394 per share exercisable between 17 April1996 and 16 February 2000 by grantees under the Parkway Scheme.240,000 ordinary shares of $0.50 each at $3.682 per share exercisable between 21 March1997 and 20 January 2001 by grantees under the Parkway Scheme.(iii) 1,483,000 ordinary shares of $0.50 each at $5.690 per share exercisable between 3 April1998 and 2 February 2002 by grantees under the Parkway Scheme.(iv) 1,060,000 ordinary shares of $0.50 each at $3.490 per share exercisable between 20April 1999 and 19 February 2003 by grantees under the Parkway Scheme.Subsequent to balance sheet date, share options for 20,000 ordinary shares of $0.50 each at$3.394 per share and 338,000 ordinary shares of $0.50 each at $3.49 per share were exercisedunder the Parkway Scheme.The options granted by the Company do not entitle the holders of the options, by virtue of suchholdings, to any right to participate in any share issue of any other company.

Parkway Holdings Limitedand its Subsidiaries34Directors’ Reportfor the year ended 31 December 1999Year 2000 StatementYear 2000 (“Y2K”) Compliance DefinitionYear 2000 compliance means that any computer chip dependent equipment or software will be ableto process any date and time data values correctly between the twentieth and twenty-first centuries.Impact On Business, Cost and RevenuesThe Group has had a smooth transition into the Year 2000 and has not encountered major disruptionsto its operations.As a healthcare service provider, the Group is especially concerned about patient safety and theaccuracy of clinical data. The Group will continue its efforts in monitoring compliance with Y2Kand ensure any possible disruptions to its operations are expeditiously resolved.The Group has incurred approximately $1.4 million in replacing the embedded system to ensureY2K readiness, which was expensed off in the financial year under review.Corporate GovernanceThe Company fully supports and observes the Best Practices Guide on Corporate Governancerecommended by the Stock Exchange Securities Trading Limited. The Board of Directors has adopteda Corporate Governance Policy comprising the various self-regulatory and monitoring mechanismsas follows:The Board of Directors and its CommitteesThe Board consists of thirteen members. The Managing Director, Mr Tony Tan Choon Keat andthe Finance Director, Mr Tan Kai Seng are the only two executive directors on the Board. Allthe other members are non-executive directors who have a diversity of experience and expertise.The responsibilities of the Board include approval of the Group’s strategic plans, significantinvestment/divestment and funding decisions, review of the Group’s financial performance andoperational initiatives, and approval of compensation of senior management personnel. Thesefunctions are carried out by the Board or through Board Committees such as the ManagementCommittee, the Executive Committee and the Directors’ Remuneration sub-committee.In addition, the Audit Committee is chaired by Mr Goh Kee Song and assisted by two othernon-executive members. The Audit Committee members are non-executive members of the Board.The present Audit Committee will continue to play an important role in assisting the Board in ensuringthat the financial reporting and internal accounting controls of the Group meet the highest standards.The responsibility for administrating the Parkway Scheme is vested with the Directors’ RemunerationSub-Committee in its absolute discretion with such powers and duties as are conferred on it by theBoard of Directors.In discharging this responsibility, the Directors’ Remuneration Sub-Committee would take intoaccount certain criteria as established in the Parkway Scheme for evaluating the eligibility ofemployees to participate under the scheme. In addition, the Directors’ Remuneration Sub-Committeeis authorized, from time to time, to make and vary the terms and conditions governing the ParkwayScheme as and when it considers appropriate and in accordance with the established guidelines.

Directors’ Reportfor the year ended 31 December 1999Parkway Holdings Limitedand its Subsidiaries35Corporate Governance (cont’d)Internal Code on Dealings with SecuritiesAn internal code on dealing in securities has been issued to directors and officers setting outthe implications on insider trading. The code was modelled after the Best Practices Guide withsome modifications.1. Directors and officers are prohibited from trading in the Company’s securities for the periodone month before the announcement of the Company’s half-yearly and annual results andending on the date of the announcement of the results, and any other period specified by theBoard or the Company Secretary.2. Directors and officers are also not expected to deal in the Company’s securities on considerationsof a short term nature.3. Notwithstanding this, all employees and directors are required to observe the insider tradinglaws under the Securities Industries Act at all times even when engaging in dealings in securitieswithin the permitted periods. To enable the Company to monitor such transactions, directorsand officers of the Company are required to report to the Company Secretary whenever theydeal in the Company’s securities.4. Subject to the strict observance of the Securities Industries Act, clearance may be given by theBoard of Directors, in the following exceptional circumstances:(i)(ii)for an officer to sell (but not to purchase) the Company’s securities during the prohibitedperiods due to a forced sale by a mortgagee or other extenuating reasons; andfor the exercise of an option or right under the Parkway Scheme, or the conversion ofconvertible securities, where the final date for the exercise of such option or right, orconversion of such securities, falls during the prohibited periods, and the officer couldnot be reasonably expected to exercise it at an earlier time during the permitted periods.Where an exercise or conversion is permitted pursuant to this paragraph, the Board maynot, however, give clearance during the same prohibited period for the sale of theCompany’s securities pursuant to the exercise or conversion.

Parkway Holdings Limitedand its Subsidiaries36 Directors’ Reportfor the year ended 31 December 1999Audit CommitteeThe Audit Committee members at the date of this report are:Goh Kee SongAng Guan SengHerman Ronald Hochstadt(Chairman)The Audit Committee is appointed by the Board of Directors which has overall responsibility forthe financial reporting and internal accounting controls of the Group and the Company. The AuditCommittee met during the year to:• review the scope of internal and external audits• review the adequacy of internal control systems of the Group• review the external auditors’ management letter and the responses of management• review interested party transactions• review financial reporting and other related mattersThe Audit Committee also reviewed the assistance given by the Company’s officers to the auditors.The consolidated financial statements and the financial statements of the Company were reviewedby the Audit Committee prior to their submission to the directors of the Company for adoption.The Audit Committee has recommended to the Board of Directors that the auditors, KPMG, benominated for re-appointment as auditors at the forthcoming Annual General Meeting of the Company.AuditorsThe auditors, KPMG, have indicated their willingness to accept re-appointment.On behalf of the Board of DirectorsTONY TAN CHOON KEATDirectorTAN KAI SENGDirectorSingapore27 March 2000

Statement by Directorsfor the year ended 31 December 1999Parkway Holdings Limitedand its Subsidiaries37We, TONY TAN CHOON KEAT and, TAN KAI SENG being directors of PARKWAY HOLDINGSLIMITED, do hereby state that in our opinion:(a)(b)the financial statements set out on pages 39 to 89 are drawn up so as to give a true and fairview of the state of affairs of the Group and of the Company as at 31 December 1999, and ofthe results of the business of the Group and of the Company, and cash flows of the Group forthe year ended on that date; andat the date of this statement there are reasonable grounds to believe that the Company will beable to pay its debts as and when they fall due.On behalf of the Board of DirectorsTONY TAN CHOON KEATDirectorTAN KAI SENGDirectorSingapore27 March 2000

Parkway Holdings Limitedand its Subsidiaries38 Report of the Auditorsto the Members of Parkway Holdings LimitedWe have audited the financial statements of Parkway Holdings Limited and consolidated financialstatements of the Group for the year ended 31 December 1999 as set out on pages 39 to 89. Thesefinancial statements are the responsibility of the Company’s directors. Our responsibility is toexpress an opinion on these financial statements based on our audit.We conducted our audit in accordance with Singapore Standards on Auditing. Those Standardsrequire that we plan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includes examining, on a testbasis, evidence supporting the amounts and disclosures in the financial statements. An audit alsoincludes 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 providesa reasonable basis for our opinion.In our opinion:(a)the financial statements and consolidated financial statements are properly drawn up inaccordance with the provisions of the Companies Act, Chapter 50 (the “Act”) and SingaporeStatements of Accounting Standard and so as to give a true and fair view of:(i)(ii)the state of affairs of the Company and of the Group as at 31 December 1999 and of theresults of the Company and of the Group and of the cash flows of the Group for the yearended on that date; andthe other matters required by Section 201 of the Act to be dealt with in the financialstatements and consolidated financial statements;(b)the accounting and other records and the registers required by the Act to be kept by theCompany and by those subsidiaries incorporated in Singapore of which we are the auditorshave been properly kept in accordance with the provisions of the Act.We have considered the financial statements and auditors’ reports of the subsidiaries of which wehave not acted as auditors and the financial statements of the subsidiaries for which an audit is notrequired by the countries of incorporation, being financial statements that have been included inthe consolidated financial statements. The names of these subsidiaries are disclosed in note 5 to thefinancial statements.We are satisfied that the financial statements of the subsidiaries that have been consolidated withthe financial statements of the Company are in form and content appropriate and proper for thepurposes of the preparation of the consolidated financial statements and we have received satisfactoryinformation and explanations as required by us for those purposes.The auditors’ reports on the financial statements of the subsidiaries were not subject to anyqualification and in respect of subsidiaries incorporated in Singapore did not include any commentmade under Section 207(3) of the Act.KPMGCertified Public AccountantsSingapore27 March 2000

Consolidated Balance Sheetas at 31 December 1999Parkway Holdings Limitedand its Subsidiaries39Note 1999 1998$’000 $’000Fixed Assets 3 654,808 668,569Investment Properties 4 495,000 504,000Interests in Associated Companies 6 233,792 449,852Other Investments, Advances and Deferred Expenditure 7 42,898 55,581Interests in Limited Partnerships 8 – 16,521Current Assets 9 165,914 147,183Less:Current Liabilities 15 335,987 440,062Net Current Liabilities (170,073) (292,879)Long-Term Liabilities 21 (460,580) (601,026)Representing:795,845 800,618Share Capital 23 179,631 179,323Reserves 24 615,214 621,295Share Capital and Reserves 794,845 800,618Minority Interests 1,000 –795,845 800,618The notes set out on pages 46 to 89 form part of these financial statements.

Parkway Holdings Limitedand its Subsidiaries40 Consolidated Profit and Loss Accountfor the year ended 31 December 1999Note 1999 1998$’000 $’000Turnover 2.9 386,684 354,574Profit before taxation, exceptional itemsand extraordinary itemsThe Group 25 41,325 26,366Share of results of associated companies 4,154 7,46845,479 33,834Exceptional Items 26 3,176 3,284Profit before taxation and extraordinary items 48,655 37,118Taxation 27 (13,314) (11,285)Profit after taxation but before minority interestsand extraordinary items 35,341 25,833Minority Interests 3,500 2,14738,841 27,980Extraordinary Items 28 84,992 (5,382)Profit after taxation and extraordinary items 123,833 22,598Appropriations:Interim dividend of 5% (1998: 2.5%) less 26% tax (6,653) (3,337)Proposed final dividend of 8% (1998: 6%)less 25.5% tax (10,699) (7,962)(17,352) (11,299)Retained Profit transferred to Revenue Reserves 24(e) 106,481 11,299Earnings per share (in cents): 29Before extraordinary items– Basic 10.82 8.47After extraordinary items– Basic 34.50 6.84The notes set out on pages 46 to 89 form part of these financial statements.

Consolidated Statement of Cash Flowsfor the year ended 31 December 1999Parkway Holdings Limitedand its Subsidiaries411999 1998$’000 $’000Cash Flow from Operating Activities:Profit before taxation 48,655 37,118Adjustments for:Depreciation 28,877 25,454Share of results of associated companies (4,154) (7,468)(Profit)/Loss on disposal of fixed assets (3,392) 342Deferred expenditure written off 1,083 958Provision against advances to an associated company (1,151) -Exchange differences 2,084 2,218Dividend income (783) (1,127)Interest income (2,281) (6,999)Interest expense 44,132 57,501Operating profit before working capital changes 113,070 107,997(Increase)/Decrease:Completed properties held for resale 8,088 9,459Quoted investments 315 4,326Trade and other receivables (5,314) 4,301Stocks (1,973) 118Increase/(Decrease):Trade and other creditors (33,622) 5,771Cash generated from operations 80,564 131,972Interest paid (22,075) (65,227)Income taxes paid (9,466) (21,214)Dividends received 572 823Interest received 2,274 7,021Net cash inflow from operating activities 51,869 53,375Cash Flows from Investing Activities:Purchase of fixed assets (27,400) (66,667)Proceeds on sale of fixed assets 11,182 1,061Acquisition of subsidiaries, net of cash acquired (9,850) (608)Proceeds from dilution of subsidiary, net of cash diluted – 439Repayment of cost of acquisition of subsidiary by vendor 654 1,660Redemption of preference shares by an associated company 6,349 1,172Investment in associated companies (3,060) –Advances from associated companies 165,161 886Dividends received from associated companies 13,783 1,198Advances to partnerships – (668)Proceeds on capital reduction of long-term investments – 297Advances for long-term receivables 6 (765)Payments for deferred expenditure (90) (907)Proceeds on disposal of long term investments 1,325 –Balance carried forward 158,060 (62,902)

Parkway Holdings Limitedand its Subsidiaries42 Consolidated Statement of Cash Flowsfor the year ended 31 December 19991999 1998Note $’000 $’000Balance brought forward 158,060 (62,902)Cash refunded paid for tenancy deposits (468) (460)Expenditure incurred on investment properties (7,662) –Proceeds on disposal of interests in limited partnerships 47,727 74,236Proceeds on disposal of shares in subsidiaries,net of cash disposed 4,414 –Proceeds on disposal of shares in associated companyto minority interests 12,673 –Net cash inflow from investing activities 214,744 10,874Cash Flows from Financing Activities:Repayment of bank loans (263,492) (59,294)Repayment to hire purchase creditors (508) –Issue/(Repayment) of Floating Rate and Hybrid Notes 33,500 (34,955)Repayment of bond issue – (50,000)Dividends paid (14,615) (10,456)Dividends paid to minority shareholders (140) (341)Subscription of shares by minority interest 1,076 41Exercise of options and warrants 2,143 72,158Net cash outflow from financing activities (242,036) (82,847)Net Increase /(Decrease) in Cash andCash Equivalents during the year 24,577 (18,598)Cash and Cash Equivalents at beginning of the year 36 28,544 47,141Exchange Fluctuation on Cash andCash Equivalents at beginning of the year 331 128,875 47,142Cash and Cash Equivalents at end of the year 36 53,452 28,544

Consolidated Statement of Cash Flowsfor the year ended 31 December 1999Parkway Holdings Limitedand its Subsidiaries43During the financial year, the Group acquired certain subsidiaries. The fair values of assets acquiredand liabilities assumed were:1999 1998$’000 $’000Fixed assets – 49Interest in associated company 10,534 –Current assets 317 531Current liabilities (12,298) (143)Net (liabilities)/assets acquired (1,447) 437Minority interests – (200)Goodwill – 873(1,447) 1,110Cash acquired (1) (502)Amounts due to the Company 11,298 –Acquisition of subsidiaries, net of cash acquired 9,850 608In the previous financial year, the Group diluted its interest in a subsidiary. There was no dilutionof interest of investment in subsidiaries during the financial year. The net book values of assets andliabilities diluted were:1999 1998$’000 $’000Fixed assets – 3Current assets – 115Current liabilities – (161)Net assets diluted – (43)Minority interests – 21Transfer to investment in associated company – 17Profit on dilution of subsidiary – 555– 550Cash diluted – (111)Dilution of subsidiary, net of cash diluted – 439During the financial year, the Group disposed of its interest in a subsidiary. The net book values ofassets and liabilities disposed of were:1999 1998$’000 $’000Fixed assets 673 –Current assets 1,669 –Current liabilities (1,375) –Net assets disposed 967 –Transfer to investment in associated company 1,007 –Gain on disposal of subsidiary 2,790 –4,764 –Cash disposed (350) –Disposal of subsidiary, net of cash disposed 4,414 –The notes set out on pages 46 to 89 form part of these financial statements.

Parkway Holdings Limitedand its Subsidiaries44 Balance Sheetas at 31 December 19991999 1998Note $’000 $’000Interests in Subsidiaries 5 839,678 825,181Interests in Associated Companies 6 (116,237) 58,412Other Investments, Advancesand Deferred Expenditure 7 1,291 2,249Current Assets 9 44,861 42,580Less:Current Liabilities 15 35,802 174,432Net Current Assets/(Liabilities) 9,059 (131,852)Long-Term Liabilities 21 (300,000) (327,375)Representing:433,791 426,615Share Capital 23 179,631 179,323Reserves 24 254,160 247,292Share Capital and Reserves 433,791 426,615The notes set out on pages 46 to 89 form part of these financial statements.

Profit and Loss Accountfor the year ended 31 December 1999Parkway Holdings Limitedand its Subsidiaries451999 1998Note $’000 $’000Turnover 2.9 63,866 61,498Profit before taxation and extraordinary items 25 31,920 22,416Taxation 27 (9,534) (7,521)Profit after taxation but before extraordinary items 22,386 14,895Extraordinary items 28 (3,200) (1,000)Profit after taxation and extraordinary items 19,186 13,895Appropriations:Interim dividend of 5% (1998: 2.5%)less 26% tax (6,653) (3,337)Proposed final dividend of 8% (1998: 6%)less 25.5% tax (10,699) (7,962)(17,352) (11,299)Retained Profit transferred to Revenue Reserves 24(e) 1,834 2,596The notes set out on pages 46 to 89 form part of these financial statements.

Parkway Holdings Limitedand its Subsidiaries46 Notes to the Financial Statementsfor the year ended 31 December 1999These notes form an integral part of and should be read in conjunction with the accompanyingbalance sheets, profit and loss accounts and consolidated statement of cash flows.1. Principal ActivitiesThe principal activities of the Company, which is incorporated in the Republic of Singapore, arethose relating to investment holding while those of the subsidiaries consist of the business of:(a)(b)(c)(d)(e)(f)(g)(h)(i)private hospital ownership and management and related healthcare services,ownership and management of medical clinics,dealing in medical supplies, equipment and healthcare products,practice of dental surgeons and the operation of dental clinics,provision of clinical research centre,providing industrial, clinical and medical laboratory testing and consultancy services,property investment and development,investment holding and trading, andadvertising and building management agency.2. Summary of Significant Accounting PoliciesThe following are the principal accounting policies which have been adopted in the preparationof the accompanying financial statements.2.1 Basis of Financial Statements PreparationThe financial statements, expressed in Singapore dollars, are prepared in accordance withthe historical cost convention as modified by the revaluation of certain fixed assets andinvestment properties.

Notes to the Financial Statementsfor the year ended 31 December 1999Parkway Holdings Limitedand its Subsidiaries472. Summary of Significant Accounting Policies (cont’d)2.2 Basis of Consolidation(a) The consolidated financial statements include the financial statements of theCompany and of its subsidiaries.(b)(c)The consolidated financial statements include the financial statements of theCompany and its subsidiaries made up to the end of the financial year. All transactionsbetween the consolidated companies are eliminated. The results of subsidiariesacquired and disposed of during the year are included from the effective date ofacquisition and up to the effective date of disposal.Fair values are assigned to the assets, principally land and buildings, properties andinvestments, owned by the subsidiaries at the date of acquisition as determined by thedirectors. The directors’ valuations are, where appropriate, based on independentprofessional valuations. Any excess or deficiency of the consideration over the net assets(at fair values assigned by the directors) at the date of acquisition is included in goodwillon consolidation or capital reserve on consolidation. Goodwill on consolidation is writtenoff against reserves or, where appropriate, amortised over its estimated useful life.2.3 Fixed Assets and Depreciation(a) Land and buildings are stated either at cost less depreciation or at directors’ valuationwhich comprises net book value to the subsidiaries and an allocation of the excess ofpurchase consideration payable by the Group over the net book value of the land andbuildings of the subsidiaries at the date of acquisition. Other fixed assets are stated atcost less depreciation. There is no formal policy for the revaluation of fixed assets.(b)Fixed assets are depreciated on the straight line basis over their estimated usefullives as follows:Leasehold land and building – remaining term of the leaseOffice premises – 2%Medical centre suites – 1%Buildings – 1%Hospital and medical equipment, andfurniture, fittings and equipment – 7% to 33 1 /3%Renovation and improvements – 16 2 /3% to 33 1 /3%Motor vehicles – 10% to 33 1 /3%No depreciation is provided on freehold land and construction in progress.2.4 Investment PropertiesInvestment properties are those properties which are not held with the intention of salein the ordinary course of business.Investment properties are revalued annually based on independent professional valuationon an open market value basis. The surplus or deficit on revaluation is taken to therevaluation reserve account except when the total of the reserve is not sufficient to coverthe deficit. In such cases the amount by which the deficit exceeds the revaluation reservewill be charged to the profit and loss account.

Parkway Holdings Limitedand its Subsidiaries48 Notes to the Financial Statementsfor the year ended 31 December 19992. Summary of Significant Accounting Policies (cont’d)2.5 Investments in Associated Companies(a)(b)Associated companies are those companies in which a long-term equity interest ofbetween 20% and 50% is held by the Group and where there is management participation.The Group’s share of the results of the associated companies is included in theconsolidated profit and loss account. The Group’s share of the retained earningsand reserves of the associated companies is included as interests in associatedcompanies in the consolidated balance sheet.For this purpose, the latest audited financial statements of the associated companiesare used. Where audited financial statements are not available, unauditedmanagement financial statements are used.(c)Provision for diminution in value of the investments would be made if the directorsconsider that there had been a decline in their values that is other than temporary.2.6 Investments(a)(b)Quoted and unquoted equity investments held on long-term basis are stated at cost.Provision would be made for diminution in the value of these investments if the directorsconsider that there had been a decline in their values that is other than temporary.Investments held on short-term basis are stated at the lower of cost and marketvalue on an item-by-item basis.2.7 Completed Properties Held for Resale(a)(b)Completed properties are those properties which are held with the intention of salein the ordinary course of business and are classified as current assets.All completed properties are stated at the lower of cost and estimated net realisable value.2.8 StocksStocks comprising mainly pharmacy stocks and hospital and surgical supplies are valuedat the lower of cost (determined principally on the first-in first-out basis) and estimatednet realisable value.2.9 Turnover(a)(b)The GroupTurnover comprises invoiced value of hospital services billed, proceeds from sale ofproperties and quoted equity investments, trading sales, invoiced value of servicesprovided and rental income. Inter-company transactions are excluded.The CompanyTurnover comprises gross dividend income and interest income.

Notes to the Financial Statementsfor the year ended 31 December 1999Parkway Holdings Limitedand its Subsidiaries492. Summary of Significant Accounting Policies (cont’d)2.10 Income Recognition(a)(b)(c)Profits from the sale of development properties are recognised when the units aresold and upon the granting of the Temporary Occupation Permit and to the extentof progress billings made. The amount of the progress billings and the correspondingcosts are then taken to the profit and loss account. Provision is made for anticipatedlosses if and when they can be determined.Dividend income from subsidiary and associated companies are recognised as soonas such dividends are proposed and declared by these companies.Dividend income from other investments are recognised on receipt of such dividend.2.11 Provision for Doubtful DebtsSpecific provision is made for accounts which are doubtful of collection. A general provisioncalculated as a percentage of overdue debts is also made.2.12 Deferred TaxationDeferred taxation is provided, using the liability method, on timing differences otherthan those which can be demonstrated with reasonable probability to continue into thefuture. A deferred tax benefit is, however, not recognised in the financial statementsexcept when there is a reasonable expectation of realisation.2.13 Currency Translation(a)(b)Monetary assets and liabilities in foreign currencies are translated into reportingcurrencies at rates of exchange closely approximate to those ruling at the balancesheet date. Transactions in foreign currencies during the year are translated at ratesprevailing on transaction dates. Translation differences are included in the profitand loss account.The financial statements of foreign subsidiaries and associated companies aretranslated into Singapore dollars at rates of exchange closely approximate to thoseruling at the balance sheet date. Translation differences are dealt with throughExchange Fluctuation Reserves.2.14 Deferred ExpenditureDeferred expenditure comprises expenses incurred in the recruitment and training ofnurses and management fees for arrangement of banking facilities.The expenses incurred in the recruitment and training of nurses are written off over theperiod of the service agreements of the respective nurses ranging from 3 to 5 years.Management fees for arrangement of banking facilities are written off over the period ofthe facilities.

Parkway Holdings Limitedand its Subsidiaries50 Notes to the Financial Statementsfor the year ended 31 December 19993. Fixed Assets – The Group‹ ›Hospital Land and Buildings Medical Leasehold Renovation Furniture,Freehold Leasehold Freehold Leasehold Construction Centre Office & improve- Fittings & MotorValuation Cost in progress Suites Premises ments Equipment Vehicles Total$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000Cost/ValuationAt beginning of the year 85,703 290,692 99,307 100,017 11,982 4,455 11,968 3,116 208,936 4,575 820,751Additions – – 1,303 449 10,117 – – 1,575 11,853 840 26,137Reclassifications – – 331 3,905 (4,516) – – (3) 283 – –Disposals – – (334) (663) (354) (2,521) – – (12,163) (1,157) (17,192)Disposal of subsidiary – – – – (30) – – – (548) – (578)Translation differenceon opening balance 28 – 2 (3,120) 40 – – 1 (859) (1) (3,909)At end of the year 85,731 290,692 100,609 100,588 17,239 1,934 11,968 4,689 207,502 4,257 825,209Accumulated DepreciationAt beginning of the year 8,466 29,628 4,592 1,707 – 124 1,887 1,884 101,392 2,502 152,182Charge for the year 273 3,654 1,612 2,207 – 63 218 432 19,863 555 28,877Reclassifications (339) 339 312 – – – – – (312) – –Disposals – – (112) (42) – (113) – – (9,397) (874) (10,538)Disposal of subsidiary – – – – – – – – (31) – (31)Translation differenceon opening balance 6 – – (25) – – – 1 (70) (1) (89)At end of the year 8,406 33,621 6,404 3,847 – 74 2,105 2,317 111,445 2,182 170,401Depreciation chargefor 1998 475 2,693 1,079 760 – 68 217 323 19,291 548 25,454Net book value at31 December 1999 77,325 257,071 94,205 96,741 17,239 1,860 9,863 2,372 96,057 2,075 654,808Net book value at31 December 1998 77,237 261,064 94,715 98,310 11,982 4,331 10,081 1,232 107,544 2,073 668,569

Notes to the Financial Statementsfor the year ended 31 December 1999Parkway Holdings Limitedand its Subsidiaries513. Fixed Assets – The Group (cont’d)Unless otherwise indicated, the fixed assets are stated at cost.The freehold hospital land and building, at valuation, comprises the following:(a)(b)(c)(d)The 1987 directors’ valuation of the land and buildings at Gleneagles Hospital and MedicalCentre was based on an independent professional valuation carried out by Jones LangLaSalle (formerly known as Jones Lang Wootton) in May 1987 on the basis of openmarket valuation at $28,422,000.The 1989 directors’ valuation of the land and buildings at Pulau Pinang Hospital wasbased on independent professional valuations carried out by Knight Frank Pte Ltd inOctober 1989 on the basis of open market valuation at RM13,916,000 ($6,103,000).The 1995 directors’ valuation of the land and buildings at East Shore Hospital was basedon independent professional valuations carried out by Knight Frank Pte Ltd in June 1995on the basis of open market valuation at $51,205,000.The 1995 directors’ valuation of the leasehold hospital land and buildings at MountElizabeth Hospital and Eastern Specialist Centre was based on an independent professionalvaluation carried out by Knight Frank Pte Ltd in June 1995 on the basis of open marketvaluation at $290,692,000.Included in construction in progress is interest capitalised of $Nil (1998: $371,000) and includedin hospital land and building is interest capitalised of $15,467,000 (1998: $16,003,000) of which$Nil (1998: $9,961,000) has been transferred from construction in progress during the year.For assets which have been revalued, the net carrying amount as at 31 December 1999 hadthe assets been carried at cost less depreciation are as follows:-1999 1998$’000 $’000Freehold land 2,228 2,228Leasehold land 33,389 33,832Leasehold building 60,219 61,02795,836 97,087Included in the fixed assets are assets with net book value of $193,880 (1998: $387,532)which were acquired under hire purchase financing.4. Investment Properties – The GroupInvestment properties are stated at an independent professional valuation carried out by KnightFrank Pte Ltd in January 2000, in respect of the value as at 31 December 1999 on the basis ofopen market valuation, at $495,000,000 (1998: $504,000,000). The deficit of $16,662,000(1998: $43,000,000) arising from the revaluation has been taken directly to Revaluation Reserves.

Parkway Holdings Limitedand its Subsidiaries52Notes to the Financial Statementsfor the year ended 31 December 19995. Interests in Subsidiaries – The CompanyUnquoted ordinaryshares at cost:Place ofPrincipal Incorporation/ EquityActivities Business Interest Cost1999 1998 1999 1998% % $’000 $’000Parkway Properties Property Singapore 100 100 160,120 160,120Pte Ltd and its investmentsubsidiaries:Parkway Promotions Advertising Singapore 100 100Pte Ltd agencyDevelopment Building Singapore 100 100Planning and managementManagementPrivate Limited** Parkway Panama Investment Panama 100 100 # #Limited Inc holdingParkway Land Pte Ltd Dormant Singapore 100 100 18,505 18,505M & P Investments Investment Singapore 100 100 # #Pte Ltd and its trading andsubsidiaries: propertydevelopmentS.P.I. Pte Ltd Investment Singapore 100 100tradingTrademart Builders Dormant Singapore 100 100Pte LtdRylands Investments Dormant Singapore 100 100 # #Pte LtdWeian Investments Dormant Singapore 51 51 102 102Pte Ltd and itssubsidiary:Parkway (PNG) Dormant Papua New – 100Pty LimitedGuineaBalance carried forward 178,727 178,727

Notes to the Financial Statementsfor the year ended 31 December 1999Parkway Holdings Limitedand its Subsidiaries535. Interests in Subsidiaries – The Company (cont’d)Place ofPrincipal Incorporation/ EquityActivities Business Interest Cost1999 1998 1999 1998% % $’000 $’000Balance brought forward 178,727 178,727## Parkway Group Investment Singapore 100 100 494,188 422,788Healthcare Pte Ltd holdingand its subsidiaries:Parkway Managed Management Singapore see 100Care Pte Ltd of managed notecare and 32related servicesGleneagles Medical Health care Singapore 100 –Global Care and relatedPte LtdservicesMount Elizabeth Investment Singapore 100 100Healthcare holdingHoldings Ltdand itssubsidiaries:Mount Elizabeth Private Singapore 100 100Hospital hospital andLtd and its medical centresubsidiaries: ownership andmanagementEast Shore Private Singapore 100 100Hospital hospital andPte Ltd medical centreownership andmanagementMENA Services Nursing Singapore 100 100Pte Ltd agencyMount Elizabeth Rental of Singapore 66.48 66.48Ophthalmic medicalInvestments equipmentPte Ltd used foreye operationsBalance carried forward 672,915 601,515

Parkway Holdings Limitedand its Subsidiaries54Notes to the Financial Statementsfor the year ended 31 December 19995. Interests in Subsidiaries – The Company (cont’d)Place ofPrincipal Incorporation/ EquityActivities Business Interest Cost1999 1998 1999 1998% % $’000 $’000Balance brought forward 672,915 601,515Medi-Rad Associates Operation of Singapore 83.27 83.27Ltd (formerly radiologyknown as clinicsMedi-RadAssociatesPte Ltd) andits subsidiary:Khim Medicare Dormant Singapore 67.35 67.35PrivateLimitedRadiology Radiology Singapore 100 100Consultants consultancyPte Ltdand interpretiveservicesParkway Laboratory Provision of Singapore 100 100Services Ltd comprehensive(formerly known diagnosticas Parkway laboratoryLaboratory servicesServices Pte Ltd)+ Mount Elizabeth Provision of Malaysia 100 100Healthcare laboratoryServices services toSdn Bhd and hospitalsits subsidiary: and clinicsOrifolio Options Investment Malaysia 100 –Sdn Bhd holdingGleneagles Hospital Private Singapore 100 100Limited and its hospitalsubsidiaries: ownership andmanagementGleneagles Medical centre Singapore 100 100Medical development,Centre Ltd ownership andmanagementBalance carried forward 672,915 601,515

Notes to the Financial Statementsfor the year ended 31 December 1999Parkway Holdings Limitedand its Subsidiaries555. Interests in Subsidiaries – The Company (cont’d)Place ofPrincipal Incorporation/ EquityActivities Business Interest Cost1999 1998 1999 1998% % $’000 $’000Balance brought forward 672,915 601,515Gleneagles Radiology Singapore 100 100Radiology consultancyConsultants and interpretivePte Ltd servicesGleneagles CRC Provision of Singapore 100 –Pte Ltd a clinicalresearch centreGleneagles Investment Singapore 100 100International holding andPte. Ltd. and managementits subsidiaries: services+ Gleneagles Investment Malaysia 100 100(Malaysia) holdingSdn Bhdand itssubsidiary:* Pulau Private Malaysia 70 70Pinang Clinic hospitalSdn Bhd ownership andmanagementGleneagles Providing Singapore 100 100Management advisory,Services Pte administrative,Ltd and its managementsubsidiary: and consultancyservices tohealthcarefacilities** Gleneagles Dormant British 75 75HeritageVirginHospitalIslandsManagementLimitedThermal Dealing in Singapore 51 51International medical supplies,(S) Pte Ltd equipmentand healthcareproductsBalance carried forward 672,915 601,515

Parkway Holdings Limitedand its Subsidiaries56Notes to the Financial Statementsfor the year ended 31 December 19995. Interests in Subsidiaries – The Company (cont’d)Place ofPrincipal Incorporation/ EquityActivities Business Interest Cost1999 1998 1999 1998% % $’000 $’000Balance brought forward 672,915 601,515* Thermal Dealing in Hong Kong 51 51International medicalLimited supplies,equipmentand healthcareproductsGleneagles Dormant Singapore 100 100PharmacyPte LtdGleneagles Developing Singapore 100 100Development and managingPte Ltd turnkey hospitalprojectsGleneagles Nursing Providing Singapore 100 100Agency nursing andPte Ltd healthcareservices+ Gleneagles Hospital Property United 65 65(UK) Limited investment Kingdomand its and lease ofsubsidiaries: equipment+ The Heart Operation of United 100 100Hospital heart testing KingdomLimited clinics+ The Heart Provision of United 100 100Hospital medical equip- KingdomProperties ment andLimited supplies+ Wholebond Property United 100 100Limited investment Kingdom+ Cavendish Property United 100 100Clinic investment KingdomLimited and cardiactestingBalance carried forward 672,915 601,515

Notes to the Financial Statementsfor the year ended 31 December 1999Parkway Holdings Limitedand its Subsidiaries575. Interests in Subsidiaries – The Company (cont’d)Place ofPrincipal Incorporation/ EquityActivities Business Interest Cost1999 1998 1999 1998% % $’000 $’000Balance brought forward 672,915 601,515Gleneagles To manage Singapore 100 100Technologies constructionServices and renovationPte Ltd projects forhospitalsKo, Djeng To carry on Singapore 60 60Gleneagles the practicePte Ltd of dentalsurgeons andto operatedental clinics+ Merlion Healthcare Dormant United 100 100LimitedKingdomGleneagles To provide Singapore 68 68International industrial,Laboratory clinical andServices Pte medicalLtd and its laboratorysubsidiary: testing andconsultancyservicesGleneagles Investment Singapore 100 100Investment holdingFujianPte LtdGleneagles Investment Singapore 100 100International holdingGP Pte Ltd andits subsidiaries:Gleneagles To provide Singapore 100 100Maritime medical andMedical surgical advisoryCentre services and thePte Ltd treatment ofshipping crewBalance carried forward 672,915 601,515

Parkway Holdings Limitedand its Subsidiaries58Notes to the Financial Statementsfor the year ended 31 December 19995. Interests in Subsidiaries – The Company (cont’d)Place ofPrincipal Incorporation/ EquityActivities Business Interest Cost1999 1998 1999 1998% % $’000 $’000Balance brought forward 672,915 601,515Shenton Investment Singapore 100 100Medical holdingHoldings PteLtd and itssubsidiaries:Shenton To provide Singapore 100 100Medical medical andCentre surgicalPte Ltd advisory servicesThe Shenton To establish, Singapore 100 100Medical maintain andGroup carry onPte Ltd business ofclinicsExecutive To provide Singapore 100 100Health comprehensiveScreeners health check-ups,Pte Ltd health educationand medicalconsultationShenton To provide, Singapore – 100Family establish andMedical carrying onClinics the businessPte Ltd of clinics(formerlyknown asSOS MedicalEmergenciesPte Ltd)Shenton To provide, Singapore 100 –Family establish andMedical carrying onClinics Pte the businessLtd (formerly of clinicsknown asSOS MedicalEmergenciesPte Ltd)Balance carried forward 672,915 601,515

Notes to the Financial Statementsfor the year ended 31 December 1999Parkway Holdings Limitedand its Subsidiaries595. Interests in Subsidiaries – The Company (cont’d)Place ofPrincipal Incorporation/ EquityActivities Business Interest Cost1999 1998 1999 1998% % $’000 $’000Balance brought forward 672,915 601,515* Gleneagles Dormant Hong Kong 100 100MaritimeMedical Centre(China) LimitedNippon Medical Operation Singapore 60 60Care Pte Ltd of clinics** Harborview Corporation Investment United 100 100 18,895 18,895Limited No. I and holding States ofits subsidiaries:America** Airport Systems Investment United 80 80GP Inc. and holding States ofits subsidiaries:America** Airport Systems Dormant United 100 100Minneapolis,States ofInc.America** Airport Systems Dormant United 100 100Wisconsin,States ofInc.America** PKWY/Swirnow Investment United 80 80Airways Inc holding States ofAmerica** Harborview Investment United 92 92Corporation holding States ofLimited No. II andAmericaits subsidiaries:** Parkway. Dormant United 51 51Swirnow,States ofIncorporatedAmericaand itssubsidiaries:** Pier 500, Inc Dormant United 100 100States ofAmericaBalance carried forward 691,810 620,410

Parkway Holdings Limitedand its Subsidiaries60Notes to the Financial Statementsfor the year ended 31 December 19995. Interests in Subsidiaries – The Company (cont’d)Place ofPrincipal Incorporation/ EquityActivities Business Interest Cost1999 1998 1999 1998% % $’000 $’000Balance brought forward 691,810 620,410** Harborview Dormant United 100 100Marina,States ofIncAmerica* Nutpine Properties Property United 100 100 2 2Limited and its investment and Kingdomsubsidiary:development* Saltplains Limited Property United 100 100development KingdomWestront Pte Ltd Investment Singapore 100 84 # #holdingParkway Development Dormant Singapore 100 100 # #(China) Private Limited** Fantasy Line Limited Investment Channel 100 100 # #holding Islands691,812 620,412Less: Provision for diminution in value of investments (1,868) (1,868)Dividends declared out of pre-acquisition reserves (1,712) (1,712)688,232 616,832Amounts due from subsidiaries (non-trade) 282,055 322,348Provision for doubtful debts (10,596) (10,596)271,459 311,752Amounts due to subsidiaries (non-trade) (120,013) (103,403)839,678 825,181* Not audited by KPMG, Singapore.** Not required to be audited by law in country of incorporation.+ Audited by associated firms of KPMG, Singapore.# Cost of investment of less than $1,000.## Cost of investment in Parkway Group Healthcare Pte Ltd includes $110,078,000non-cumulative preference shares.

Notes to the Financial Statementsfor the year ended 31 December 1999Parkway Holdings Limitedand its Subsidiaries615. Interests in Subsidiaries – The Company (cont’d)Balances with subsidiaries are unsecured and are intended not to be repaid within the nexttwelve months. Certain balances are interest bearing.During the financial year:(a)(b)(c)(d)the Company acquired the remaining 16% equity interest in a subsidiary, Westront PteLtd, for a nominal consideration of $1.Gleneagles International GP Pte Ltd, a wholly-owned subsidiary, acquired 100% equityinterest in a related corporation, Shenton Family Medical Clinics Pte Ltd (formerly knownas SOS Medical Emergencies Pte Ltd) for a cash consideration of $2 from its wholly-ownedsubsidiary, Shenton Medical Holdings Pte Ltd.Parkway Group Healthcare Pte Ltd, a wholly-owned subsidiary, disposed of its 50% equityinterest in Parkway Managed Care Pte Ltd for a cash consideration of $2,304,500.Parkway (PNG) Limited, a wholly-owned subsidiary of Weian Investment Pte Ltd, wasde-registered.6. Interests in Associated CompaniesThe GroupThe Company1999 1998 1999 1998$’000 $’000 $’000 $’000Unquoted equity shares, at cost 69,107 75,112 50,329 56,678Unquoted preference shares, at cost 7,018 6,986 – –Quoted equity shares, at cost 155,556 154,832 – –231,681 236,930 50,329 56,678Share of post-acquisition:Share premium 15,258 15,258 – –Revaluation reserves 3,277 126,400 – –Capital reserves 8,109 8,219 – –Retained earnings 132,291 57,014 – –Balance carried forward 390,616 443,821 50,329 56,678

Parkway Holdings Limitedand its Subsidiaries62Notes to the Financial Statementsfor the year ended 31 December 19996. Interests in Associated Companies (cont’d)The GroupThe Company1999 1998 1999 1998$’000 $’000 $’000 $’000Balance brought forward 390,616 443,821 50,329 56,678Amounts due from associatedcompanies (mainly non-trade) 15,869 13,691 1,351 1,914Provision against amounts duefrom associated companies– non-trade (4,671) (4,664) – –– trade – (2,684) – –11,198 6,343 1,351 1,914Amounts due to associatedcompanies (non-trade) (168,022) (312) (167,917) (180)233,792 449,852 (116,237) 58,412Market value of quoted equity shares 123,742 77,411 – –Balances with associated companies are unsecured and are not intended to be repaid withinthe next twelve months. Certain balances are interest bearing.Details of associated companies are set out in note 32.

Notes to the Financial Statementsfor the year ended 31 December 1999Parkway Holdings Limitedand its Subsidiaries637. Other Investments, Advances and Deferred ExpenditureThe GroupThe Company1999 1998 1999 1998$’000 $’000 $’000 $’000Unquoted equity shares, at cost 5,280 5,280 1,013 1,013Provision for diminution invalue of investments (1,000) (1,000) (1,000) (1,000)4,280 4,280 13 13Quoted equity shares, at cost 23,105 27,839 – –Provision for diminution invalue of investments (4,000) (4,000) – –19,105 23,839 – –Other investments, at cost 12,464 17,524 – –Notes receivable 7,000 6,968 – –Provision against note receivable (2,000) – – –5,000 6,968 – –Other receivables 180 110 – –Deferred expenditure:Opening balance 2,860 2,907 2,236 2,396Additions 90 907 – 798Translation difference on opening balance 2 4 – –Amount written off (1,083) (958) (958) (958)1,869 2,860 1,278 2,23642,898 55,581 1,291 2,249Market value of quoted equity shares 12,443 12,299 – –The notes receivable comprises:(i)(ii)a note of $5,000,000 (1998: $4,977,000) which is secured and repayable over a term of5 years. Interest is charged at 8% (1998: 8%) per annum.a note of $2,000,000 (1998: $1,991,000) which is non-interest bearing and unsecured,and has no fixed term of repayment.

Parkway Holdings Limitedand its Subsidiaries64Notes to the Financial Statementsfor the year ended 31 December 19998. Interests in Limited Partnerships – The GroupThese comprise interests of Nil% (1998: 79%) in BMC Lender Limited Partnerships (“BMCLLP”).1999 1998$’000 $’000Current account – BMCLLP – 16,521During the financial year, the Group disposed of its interest in BMCLLP.The partners’ current account balance is represented as follows:1999 1998$’000 $’000Fixed assets – 16,590Cash – 1,312Debtors – 295Intangibles – 1,950– 20,147Partners’ current accounts:Harborview Corporation Limited No. I and its subsidiaries – 16,521Other partners – 3,626Movements in provision for doubtful amounts are as follows:– 20,147Balance at beginning of the year – 130,516Provision written off against loans and current accounts – (130,516)Balance at end of the year – –9. Current AssetsThe GroupThe Company1999 1998 1999 1998Note $’000 $’000 $’000 $’000Completed properties held for resale 10 17,768 24,924 – –Short-term investments 11 4,960 5,275 – –Stocks 12,506 10,559 – –Trade debtors 12 28,414 31,694 – –Other debtors, deposits and prepayments 13 21,878 15,823 2,594 53Tax recoverable 20,086 19,047 16,108 11,252Dividend receivable from:subsidiaries – – 22,200 24,058associated companies – – – 326Fixed deposits with financial institutions 14 20,009 14,675 3,081 6,033Cash in hand and at banks 40,293 25,186 878 858165,914 147,183 44,861 42,580

Notes to the Financial Statementsfor the year ended 31 December 1999Parkway Holdings Limitedand its Subsidiaries6510. Completed Properties Held for ResaleIn the previous financial year, a subsidiary, M & P Investments Pte Ltd, transferred one of itsproperties amounting to $2,570,000 to fixed assets. This property was purchased to operatea radiology clinic. The investment was valued at cost on the date of transfer and will bedepreciated over the remaining term of the lease.11. Short-Term Investments – The Group1999 1998$’000 $’000Quoted equity shares, at cost 9,008 14,350Quoted warrants, at cost 3 88Quoted other investments, at cost 213 7929,224 15,230Provision for diminution in value of investments (4,264) (9,955)4,960 5,275Market value of quoted investments:Equity shares 5,001 4,612Warrants 36 124Other investments 276 834Movements in provision for diminution in valueof investments are as follows:Balance at beginning of the year 9,955 15,590Provision written back during the year (3,176) (3,327)Investments written off against provision (2,515) (2,308)Balance at end of the year 4,264 9,95512. Trade Debtors – The Group1999 1998$’000 $’000Trade debtors 39,234 40,688Provision for doubtful debts (10,820) (8,994)28,414 31,694Movements in provision for doubtful debts are as follows:Balance at beginning of the year 8,994 8,762Provision made during the year 3,178 2,967Bad debts written off against provision for doubtful debts (1,350) (2,736)Translation difference on opening balance (2) 1Balance at end of the year 10,820 8,994

Parkway Holdings Limitedand its Subsidiaries66Notes to the Financial Statementsfor the year ended 31 December 199913. Other Debtors, Deposits and PrepaymentsThe GroupThe Company1999 1998 1999 1998$’000 $’000 $’000 $’000Interest receivable 8 1 3 1Prepayments 3,563 1,664 61 40Recoverable expenses 2,200 2,080 – –Sundry deposits 3,245 1,368 – –Note receivable from a shareholder 133 134 – –Non-trade debtors 16,095 14,154 2,530 12Less: Provision for doubtful amounts (3,366) (3,578) – –12,729 10,576 2,530 1221,878 15,823 2,594 53Movements in provision for doubtfulamounts are as follows:Balance at beginning of the year 3,578 3,283 – –Provision (written back)/made during the year (228) 330 – –Translation difference on opening Balance 16 (35) – –Balance at end of the year 3,366 3,578 – –Included in the non-trade debtors is an advance amounting to $1,457,000 (1998: $Nil) grantedto a third party which became an associated company subsequent to the end of the year. Thisadvance is unsecured and interest free, and has no fixed terms of repayment. In addition, therewas an unsecured and interest free advance amounting to $2,518,000 (1998: $Nil) granted bythe Company to another third party, which was repaid subsequent to the end of the year.14. Fixed Deposits with Financial Institutions – The GroupFixed deposits of $1,406,000 (1998: $34,000) were pledged to banks for banking facilities(see note 18).

Notes to the Financial Statementsfor the year ended 31 December 1999Parkway Holdings Limitedand its Subsidiaries6715. Current LiabilitiesThe GroupThe Company1999 1998 1999 1998Note $’000 $’000 $’000 $’000Trade creditors and accruals 54,820 55,664 743 1,141Other creditors 16 17,321 29,305 196 235Hire purchase creditors 17 449 516 – –Bank overdrafts –Secured 18 6,850 10,327 – –Unsecured – 990 – –Short-term bank loans –Secured 19 6,864 28,591 – –Unsecured 110,664 276,094 24,164 165,094Floating rate notes –Secured 20 95,000 – – –Provision for taxation 33,320 30,613 – –Proposed dividend 10,699 7,962 10,699 7,962335,987 440,062 35,802 174,43216. Other CreditorsThe GroupThe Company1999 1998 1999 1998$’000 $’000 $’000 $’000Unclaimed dividends andloan stocks redemption 178 217 178 217Non-trade creditors 3,586 3,956 18 18Retention payable 503 593 – –Rental deposits 1,161 2,255 – –Construction costs payable 7,726 11,190 – –Amount due for bank guaranteegranted to an associated company 4,167 11,094 – –17,321 29,305 196 23517. Hire Purchase CreditorsThe Group1999 1998$’000 $’000Balance owing under hire purchase agreement 868 1,441Less: Unexpired hire purchase interest (104) (169)764 1,272Payable:Within 12 months 449 516After 12 months 315 756764 1,272

Parkway Holdings Limitedand its Subsidiaries68Notes to the Financial Statementsfor the year ended 31 December 199918. Bank Overdrafts (Secured)Bank overdrafts amounting to $4,652,000 (1998: $10,326,000) are secured by a legal mortgageon a subsidiary’s property stated at the financial statements at $88,135,000 (1998: $92,342,000),a debenture over the assets of the subsidiary and a guarantee by the Company.The remaining bank overdraft is secured by pledge of a subsidiary’s fixed deposits (see note 14).19. Bank Loans (Secured)The GroupThe Company1999 1998 1999 1998$’000 $’000 $’000 $’000(a)Repayable within one year(i) Revolving credit facility 3,290 – – –Secured by a legal mortgage of asubsidiary’s freehold property stated inthe financial statements at $5,178,000(1998: $Nil) and a debenture overits assets.(ii) Revolving credit facility – 25,800 – –Secured by pledge of quoted equityinvestments in an associated companystated in the financial statementsat $Nil (1998: $72,005,000) and aguarantee by the Company.(iii) Short-term facility – 2,791 – –Secured by a legal mortgage of asubsidiary’s property stated inthe financial statements at $Nil(1998: $92,342,000), debenture overthe assets of the subsidiary and aguarantee by the Company.(iv) Term loan 2,697 – – –Secured by a legal mortgage of asubsidiary’s property stated in thefinancial statements at $88,136,000(1998: $Nil) and a guarantee bythe Company.(v) Term loan 877 – – –Secured by a legal mortgage of asubsidiary’s freehold property stated inthe financial statements at $5,178,000(1998: $Nil) and debenture over its assets.6,864 28,591 – –

Notes to the Financial Statementsfor the year ended 31 December 1999Parkway Holdings Limitedand its Subsidiaries6919. Bank Loans (Secured) (cont’d)The GroupThe Company1999 1998 1999 1998$’000 $’000 $’000 $’000(b) Repayable after one year(i) Term loan 3,509 – – –Secured by a legal mortgage of asubsidiary’s property stated in thefinancial statements at $5,178,000(1998: $Nil).The loan is repayable in January 2002and interest is charged between 5.1% to6.9% (1998: Nil%) per annum.(ii) Term loan 83,386 88,870 – –Secured by a legal mortgage of asubsidiary’s property stated in thefinancial statements at $88,136,000(1998: $92,342,000) and a guaranteeby the Company.The loan is repayable by July 2001and interest is charged at 6% (1998: 6%)per annum.(iii) Revolving credit facility 3,412 – – –Secured by a legal mortgage of asubsidiary’s property stated in thefinancial statements at $7,799,000(1998: $Nil) and an unconditionalguarantee by the ultimate parent company.The loan is repayable by December 2001and interest is charged at 1.3125% aboveLIBOR (1998: Nil%) per annum.(iv) Revolving credit facility – 45,194 – –Secured by a legal mortgage of asubsidiary’s property stated in thefinancial statements at $Nil(1998: $112,555,000).Interest is charged at Nil%(1998: 6.3% to 6.7%) per annum. Theloan was repaid during the year.(v) Revolving credit facility – 5,981 – –Secured by a legal mortgage of asubsidiary’s property stated in thefinancial statements at $Nil(1998: $5,154,000).Interest is charged at Nil%(1998: 8.85% to 18.90%) per annum.The loan was repaid during the year.90,307 140,045 – –Total 97,171 168,636 – –

Parkway Holdings Limitedand its Subsidiaries70Notes to the Financial Statementsfor the year ended 31 December 199920. Floating Rate NotesThe Group1999 1998$’000 $’000(i) $95,000,000 Floating Rate Notes due in June 2000issued in July 1995 by a subsidiary, Gleneagles HospitalLimited (“Gleneagles”) 95,000 95,000(ii)$33,500,000 Floating Rate Notes due in 2005 issuedduring the financial year by a subsidiary, MountElizabeth Healthcare Holdings Ltd (“MEHHL”) 33,500 –128,500 95,000The $95 million Floating Rate Notes (“FRNs”) were reclassified to current liabilities during thefinancial year.(a)The $95 million FRNs are due 2000 and secured by a first legal mortgage over Gleneagles’property stated in the financial statements at $113.1 million (1998: $112.6 million),together with an assignment of the insurance proceeds over the property. Interest on theFRNs is payable quarterly in arrears at an annual rate of 1.3% over the three-monthSingapore Interbank Offer Rate quoted by the Monetary Authority of Singapore. TheFRNs constitute direct and unconditional obligations of Gleneagles and rank pari passuwithout any preference or obligations having priority among themselves and at leastpari passu with all other unsecured obligations of Gleneagles (other than subordinatedobligations and obligations having priorities created by law).(b) In 1998, MEHHL entered into an agreement with a bank to issue up to $60 million7 year FRNs due 2005. During the year, MEHHL issued FRNs amounting to $33.5 million.Interest is payable monthly, quarterly in arrears at an annual rate ranging from between1.625% to 3.625% per annum.The FRNs constitute direct and unconditional obligations of MEHHL, and are secured bya negative pledge on two other subsidiaries. The FRNs rank pari passu without anypreference or priority among themselves and at least pari passu with all other unsecuredobligations of MEHHL (other than subordinated obligations and obligations havingpriorities created by law). Unless previously redeemed or purchased and cancelled, theFRNs are redeemable at their respective principal amounts in 2005.21. Long-Term LiabilitiesThe GroupThe Company1999 1998 1999 1998Note $’000 $’000 $’000 $’000Tenancy deposits 7,870 8,338 – –Hire purchase creditors 17 315 756 – –Long-term bank loans:Secured 19 90,307 140,045 – –Unsecured 22 300,000 327,375 300,000 327,375Floating rate notes (Secured) 20 33,500 95,000 – –Deferred taxation 28,588 29,512 – –460,580 601,026 300,000 327,375

Notes to the Financial Statementsfor the year ended 31 December 1999Parkway Holdings Limitedand its Subsidiaries7122. Long-Term Bank Loans (Unsecured)The GroupThe Company1999 1998 1999 1998$’000 $’000 $’000 $’000(i) Revolving credit facility – 27,375 – 27,375Interest is charged at Nil%(1998: 0.125%) per annum above thebank’s prevailing USD deposit rate.The loan was repaid during the year.(ii) 5-year transferable loan facility 300,000 300,000 300,000 300,000The loan is repayable by December2002 and interest is charged at 5.75%(1998: 5.75%) per annum.300,000 327,375 300,000 327,37523. Share CapitalThe Company1999 1998$’000 $’000Authorised:Ordinary shares of $0.50 each 250,000 250,000Issued and fully paid:Balance at beginning of the year 179,323 160,334Ordinary shares issued pursuant to theexercise of warrants and share options 308 18,989Balance at end of the year 179,631 179,323During the financial year, the Company issued 615,000 ordinary shares of $0.50 each forcash, following the exercise of options under the Parkway Employee Share Option Scheme(“Parkway Scheme”) as follows:Number of sharesExercise Price Per Share100,000 $3.538100,000 $3.394415,000 $3.490615,000

Parkway Holdings Limitedand its Subsidiaries72Notes to the Financial Statementsfor the year ended 31 December 199923. Share Capital (cont’d)At the end of the financial year, unissued shares of the Company under option are as follows:(i)(ii)20,000 ordinary shares of $0.50 each at $3.394 per share exercisable between 17 April1996 and 16 February 2000 by grantees under the Parkway Scheme.240,000 ordinary shares of $0.50 each at $3.682 per share exercisable between 21 March1997 and 20 January 2001 by grantees under the Parkway Scheme.(iii) 1,483,000 ordinary shares of $0.50 each at $5.690 per share exercisable between 3 April1998 and 2 February 2002 by grantees under the Parkway Scheme.(iv) 1,060,000 ordinary shares of $0.50 each at $3.490 per share exercisable between 20April 1999 and 19 February 2003 by grantees under the Parkway Scheme.24. ReservesThe GroupThe Company1999 1998 1999 1998$’000 $’000 $’000 $’000(a)Share PremiumBalance at beginning of the year 302,372 249,203 285,569 232,400Premium on shares issued pursuantto the exercise of warrantsand share options 1,834 53,169 1,834 53,169Balance at end of the year 304,206 302,372 287,403 285,569(b)Capital ReservesBalance at beginning of the year 26,442 25,635 17,362 17,362Share of capital reserves ofan associated company – 655 – –Transfer from revenue reservedue to share buy back by anassociated company – 152 – –Balance at end of the year 26,442 26,442 17,362 17,362(c)Revaluation ReservesBalance at beginning of the year 225,409 299,963 – –Deficit on revaluation ofinvestment properties (16,662) (43,000) – –Share of surplus/(deficit) in revaluationreserves of associated companies 47 (32,611) – –Share of associated company’srevaluation reserves realisedon sale of investment property (123,981) – – –Goodwill on consolidation written back 662 1,057 – –Balance at end of the year 85,475 225,409 – –Balance carried forward 416,123 554,223 304,765 302,931

Notes to the Financial Statementsfor the year ended 31 December 1999Parkway Holdings Limitedand its Subsidiaries7324. ReservesThe GroupThe Company1999 1998 1999 1998$’000 $’000 $’000 $’000Balance brought forward 416,123 554,223 304,765 302,931(d)Exchange Fluctuation ReservesBalance at beginning of the year (51,307) (45,698) (5,987) (9,987)Share of associated company’sexchange fluctuation reserve 43 (30) – –Exchange differences on:Retranslation of opening netassets of foreign subsidiariesand associated companies 3,447 (9,579) – –Realised exchange on saleof foreign investments 3,200 4,000 3,200 4,000Transfer to profit and loss account -being exchange loss on long-termforeign investments now realized(see note 28) 19,185 – – –Balance at end of the year (25,432) (51,307) (2,787) (5,987)(e)Revenue ReservesBalance at beginning of the year 118,379 107,333 (49,652) (52,248)Retained profit for the year 106,481 11,299 1,834 2,596Share of associated company’srevenue reserves (337) (101) – –Transfer to capital reserves dueto share buy back by anassociated company – (152) – –Balance at end of the year 224,523 118,379 (47,818) (49,652)Total reserves 615,214 621,295 254,160 247,292Revenue ReservesThe Group1999 1998$’000 $’000Retained in the:Company (47,818) (49,652)Subsidiaries 140,050 111,017Associated companies 132,291 57,014224,523 118,379

Parkway Holdings Limitedand its Subsidiaries74Notes to the Financial Statementsfor the year ended 31 December 199925. Profit before Taxation, Exceptional Items and Extraordinary ItemsThe GroupThe Company1999 1998 1999 1998Note $’000 $’000 $’000 $’000Profit before taxation is arrivedat after charging:Auditors’ remuneration –Auditors of the Company:– Current year 423 423 52 53– Under/(Over) provision inrespect of prior year 1 (11) (1) –Other auditors:– Current year 128 130 – –– Underprovision in respectof prior year – 3 – –Directors’ fee:Directors of the Company– Current year 183 202 183 193– Under/(Over) provisionin respect of prior year 65 (27) – (27)Other directors 25 333 – –Remuneration paid to directorsas executives:Directors of the Company 3,655 1,006 – –Other directors 2,924 2,864 – –Consultancy fees paid to directorsof subsidiaries 60 407 – –Consultancy fees paid to a firm inwhich a director of a subsidiaryhas substantial interest – 60 – –Professional fees paid to a firm ofwhich a director of theCompany is a member 12 95 12 95Rental and management fees paidto a company in whicha director of a subsidiary hassubstantial interest 424 424 – –Depreciation of fixed assets 3 28,877 25,454 – –Stocks written off 36 24 – –

Notes to the Financial Statementsfor the year ended 31 December 1999Parkway Holdings Limitedand its Subsidiaries7525. Profit before Taxation, Exceptional Items and Extraordinary Items (cont’d)The GroupThe Company1999 1998 1999 1998Note $’000 $’000 $’000 $’000Interest expenseFRNs 4,111 8,561 – 1,972Bonds – 1,567 – 1,567Bank loans and overdrafts 40,021 47,373 28,257 29,885Loans from subsidiary – – 1,485 1,387Bad debts written off (trade) 54 241 – –Provision for doubtful trade debts 12 3,178 2,967 – –Deferred expenditure written off 7 1,083 958 958 958Loss on disposal of quotedinvestments – 3,709 – –Provision for doubtful amounts(non-trade) 13 – 330 – –Loss on disposal of fixed assets – 342 – –Loss on exchange 2,490 2,105 550 2,425And crediting:Gross dividends -Quoted equity investments 205 727 – –Unquoted equity investmentsin subsidiaries – – 40,700 51,610Unquoted equity investmentsin associated companies – – 15,084 517Other unquoted equityinvestments 400 400 – –Provision for doubtful amountswritten back – non-trade 13 228 – – –Interest income –Subsidiaries – – 7,331 8,831Associated companies 83 89 83 89Banks and financial institutions 1,931 1,684 657 451Quoted loan stocks 14 64 – –Unquoted bonds – 7 – –Others 253 5,155 11 –Profit on disposal of fixed assets 3,392 – – –Bad debts (trade) recovered 28 457 – –Provision for quoted equityinvestments written back 11 3,176 3,327 – –During the year, the auditors of the Company were paid fees of $8,500 (1998: $16,000) and$547,000 (1998: $130,000) by the Company and the Group respectively in respect ofother services.

Parkway Holdings Limitedand its Subsidiaries76Notes to the Financial Statementsfor the year ended 31 December 199926. Exceptional ItemsThis relates to write back of provision for diminution in value of short-term quotedequity investments.27. TaxationThe GroupThe Company1999 1998 1999 1998$’000 $’000 $’000 $’000Current taxation:Based on results for the year 20,493 9,779 9,534 7,521Over provision in respectof prior years (8,831) (162) – –Deferred taxation:Based on results for the year (1,057) 1 – –Under provision in respectof prior years 130 62 – –Share of tax in associated companies 2,579 1,605 – –13,314 11,285 9,534 7,521The CompanyThe amount of income tax charged in the financial statements is higher than that arrived atby applying the standard rate of tax to the profit for the year because of the disallowance ofcertain expenses for tax purposes.The GroupThe amount of income tax charged in the financial statements is higher than that arrived atby applying the standard rate of tax to the profit for the year because of the disallowance ofcertain expenses for tax purposes and losses in certain subsidiaries which are not allowed tobe offset against the profits of other subsidiaries.At the balance sheet date, certain subsidiaries have unutilised tax losses and unabsorbed wearand tear allowances totalling approximately $8,335,000 (1998: $8,511,000). These areavailable for offset against future taxable income in their respective financial statements, thebenefit of which has not been accounted for in the consolidated financial statements inaccordance with the Group’s accounting policy set out in note 2.12.

Notes to the Financial Statementsfor the year ended 31 December 1999Parkway Holdings Limitedand its Subsidiaries7728. Extraordinary ItemsThe GroupThe Company1999 1998 1999 1998Note $’000 $’000 $’000 $’000Other investments written off (8,469) (5,000) – (1,000)Provision for doubtful debts– notes receivable (non-trade) 7 (2,000) – – –Provision for guarantees providedfor banking facilities of anassociated company (753) (2,500) – –Profit on disposal of landattributable to sale of medicalcentre suites 1,404 1,866 – –Gain on disposal of quoted/unquoted long-termequity investments 131 541 – –Gain/(loss) on disposal of:– subsidiary 2,790 555 – –– limited partnerships 27,932 (2,081) (3,200) –Transfer from ExchangeFluctuation Reserve– being exchange loss onlong-term foreigninvestments now realised 24(d) (19,185) – – –Share of associated companies’extraordinary items:– write down of assetsto net realizable value (1,635) (1,500) – –– provision for diminution invalue of long term investment (9,589) (2,673) – –– profit on sale of property – 6,483 – –– provision for reorganisationcost written back/(off) (208) 324 – –– gain/(loss) on disposalof subsidiaries 234 (1,397) – –– gain on disposal of long-terminvestment 5,107 – – –– realisation of revaluationsurplus on the sale of property 89,060 – – –– additional gain arisingfrom a business disposedin prior year 798 – – –– deposit for share optionwritten off (625) – – –84,992 (5,382) (3,200) (1,000)

Parkway Holdings Limitedand its Subsidiaries78 Notes to the Financial Statementsfor the year ended 31 December 199929. Earnings Per ShareThe basic earnings per share is calculated based on the consolidated profit after taxation andminority interests but before extraordinary items of $38,841,000 (1998: $27,980,000) and theweighted average number of shares in issue of 358,954,480 (1998: 330,163,485).30. Contingent LiabilitiesAt the end of the year, there were the following contingent liabilities:The GroupThe Company1999 1998 1999 1998$’000 $’000 $’000 $’000(a)Unsecured contingent liabilitiesin respect of guarantees forbanking facilities granted to:– subsidiaries – – 205,196 244,145– associated companies 5,798 – 5,798 –5,798 – 210,994 244,145(b)(c)The Company and one of its subsidiaries, jointly and severally, unconditionally and irrevocably,undertake to a bank to provide funds to another subsidiary for any cost overrun in itshospital construction project in connection with credit facilities granted by the bank to thesubsidiary amounting to £35,000,000; $94,395,000 (1998: £35,000,000; $104,055,000).A subsidiary has agreed to indemnify a joint venture partner 50% of the guaranteedsum amounting to US$7,000,000; $11,665,500 (1998: US$Nil; $Nil) pursuant to theGuarantee Agreement executed between an associated company, the joint venture partnerand the bank on 8 July 1998.

Notes to the Financial Statementsfor the year ended 31 December 1999Parkway Holdings Limitedand its Subsidiaries7931. CommitmentsThe GroupThe Company1999 1998 1999 1998$’000 $’000 $’000 $’000(a)Capital expenditure not provided forin the financial statements:-Amounts authorised andcontracted for 5,354 5,856 – –Other amounts authorised butnot contracted for 4,470 3,827 – –9,824 9,683 – –(b) Commitments for equity investments 3,633 3,617 – –(c) Forward foreign exchange contracts – 40,669 – 40,669The forward foreign exchange contracts of US$Nil million (1998: US$25 million) enteredinto by the Group and the Company were to partially hedge against its US dollar borrowings.(d)The Company entered into a Transferable Loan Facility Agreement of US$100 millionwith a bank and another Transferable Loan Facility Agreement of $300 million with twobanks. In consideration of the Facilities granted to the Company, the Company has executeda Deed of Undertaking for the following:(i)(ii)the payment obligation under these Facilities will rank equally and rateably withall other unsecured indebtedness;the Company and its subsidiaries, Parkway Group Healthcare Pte Ltd, MountElizabeth Hospital Ltd (“MEH”), Mount Elizabeth Healthcare Holdings Ltd, and EastShore Hospital Pte Ltd (“ESH”) will not create any security on or over their respectiveassets except for any existing securities;(iii) the Company and its subsidiaries shall not sell, transfer, lease out or lend or otherwisedispose of all or part of its assets which could have a material adverse financialeffect on them;(iv) the Company must ensure that there will not be any material changes in the natureof business for the Company and its subsidiaries;(v)the Company must ensure that it will continue to own directly or indirectly not lessthan 75% to 80% of the shares of Gleneagles Hospital Limited, ESH and MEH; and(vi) Parkway Properties Pte Ltd must ensure that there will be no further borrowings/guarantees other than for the indebtedness already incurred and it must continueto own Parkway Parade.In addition, the Company has irrevocably granted to each of the two banks an option,exercisable at any time during the period of the Transferable Loan Facility of $300 million,to convert the outstanding Transferable Loan to 5.75% Guaranteed Bonds (“Bonds”) Due2002 in an aggregate principal amount equal to the principal amount of the Loan converted.

Parkway Holdings Limitedand its Subsidiaries80 Notes to the Financial Statementsfor the year ended 31 December 199931. Commitments (cont’d)The aggregate amount of Bonds to be issued by the Company shall not exceed $300 million,shall bear interest at the rate of 5.75% per annum payable semi-annually in arrears and shallmature on 29 December 2002.As at 31 December 1999, the banks have not converted the outstanding Transferrable Loaninto Guarantee Bonds Due 2002.(e)The Sale & Purchase Agreement (“Agreement”) which a subsidiary, Gleneagles InternationalGP Pte Ltd, had signed with the vendors of its wholly-owned subsidiary, GleneaglesMaritime Medical Centre Pte Ltd (“GMMC”), provides for the payment of a second partconsideration of $2 million should GMMC’s cumulative profit at the end of the five-yearperiod after acquisition (in 1996) exceeds a specified target. The second part considerationcan be paid in cash or in shares of GMMC valued at eight times the most recent auditedafter tax profits of GMMC.It is also provided in the Agreement that, if the Company or any of its related corporations isto be listed on the Singapore Exchange Securities Trading Limited, the vendors shall be entitledto receive the second part consideration in the form of new shares in the listed company.As at 31 December 1999, this second part consideration has not been included in the costof investments in subsidiaries.(f)An associated company has entered into an Investment Agreement with the InternationalFinance Corporation (“IFC”) to obtain a US$7 million loan from the IFC. The Company,its subsidiary, Gleneagles Development Pte Ltd, and the other shareholder of the associatedcompany are required to sponsor the loan and investment of IFC by entering into a putoption agreement in respect of 3,585,000 equity shares of the associated company andthe entering into of the Project Funds, Financial Support and Share Retention Agreement.A subsidiary, Gleneagles Management Services Pte Ltd, has also agreed to subordinate itsmanagement fees agreement with the associated company in India to a bank for bankingfacilities amounting to US$7 million granted to the associated company.

Notes to the Financial Statementsfor the year ended 31 December 1999Parkway Holdings Limitedand its Subsidiaries8132. Associated CompaniesEffectivePlace ofEquityName of Company Principal Activities Incorporation Interest1999 1998% %Lee Hing Development Limited Property investment, Hong Kong 36 36and its subsidiaries:management and agentCamanche Limited Investment holding Hong Kong 36 36Kai Yiu Enterprises Limited Investment holding Hong Kong 36 36Kwai Ling Enterprises Investment holding Hong Kong 36 36Company LimitedLee Hing Investment Property and Hong Kong 36 36Company, Limited investment holdingLucky Term Company Limited Investment holding Hong Kong 36 36Tek Lee Nominees Limited Property and Hong Kong 36 36investment holdingTory Company Limited Investment holding Hong Kong 36 36Wang Tak Company Limited Investment holding Hong Kong 36 36Diamond Way Inc. Investment holding Republic of Liberia 36 36Hing Nam Limited Dormant Cayman Islands 36 36HK 2 Limited Investment holding Republic of Liberia 36 36HK 3 Limited Investment holding Republic of Liberia 36 36HK 8 Limited Investment holding Republic of Liberia 36 36HK 9 Limited Investment holding Republic of Liberia 36 36HK 12 Limited Investment holding Republic of Liberia 36 36HK 18 Limited Investment holding Republic of Liberia 36 36HK 28 Limited Investment holding Republic of Liberia 36 36HK 38 Limited Investment holding Republic of Liberia 36 36HK 68 Limited Investment holding Republic of Liberia 36 36HK 268 Limited Investment holding Republic of Liberia 36 36

Parkway Holdings Limitedand its Subsidiaries82 Notes to the Financial Statementsfor the year ended 31 December 199932. Associated Companies (cont’d)EffectivePlace ofEquityName of Company Principal Activities Incorporation Interest1999 1998% %HK 333 Limited General investment Republic of Liberia 36 36HK 368 Limited Investment holding Republic of Liberia 36 36HK 888 Limited Investment holding Republic of Liberia 36 36Lee Nam Limited Dormant Republic of Liberia 36 36PRC 1 Limited Investment holding Republic of Liberia 36 36PRC 18 Limited General investment Republic of Liberia 36 36Stettler Investment Limited Investment holding Republic of Liberia 36 36V12 Limited Investment holding Republic of Liberia 36 36V168 Limited Investment holding Republic of Liberia 36 36V338 Limited Dormant Republic of Liberia 36 36Tan Nam Holdings Ltd. Investment holding Cayman Islands 36 36Tan Nam Ltd. General investment Cayman Islands 36 36Trademart Singapore Pte Ltd Operating of Singapore 50 50warehouses forrental and storagePhil, Inc Property development, United States 40 40provision of construction of Americamanagement servicesTrademart Management Management of Singapore 50 50Pte Ltdinternationalmerchandise anddistribution centreBlendkirk Limited and Property investment United 50 50its subsidiaries: and trading KingdomValidhill Limited Property investment United 50 50and tradingKingdom

Notes to the Financial Statementsfor the year ended 31 December 1999Parkway Holdings Limitedand its Subsidiaries8332. Associated Companies (cont’d)EffectivePlace ofEquityName of Company Principal Activities Incorporation Interest1999 1998% %Avidcrown Limited Property investment United 50 50and its subsidiaries: and trading Kingdom15 Upper Grosvenor Property investment United 50 50Street Limited and trading Kingdom16 Upper Grosvenor Property investment United 50 50Street Limited and trading KingdomGleneagles Medical Medical centre Malaysia 30 30Centre (Kuala Lumpur) development, ownershipSdn Bhdand managementGleneagles Hospital Private hospital ownership Malaysia 30 30(Kuala Lumpur) and managementSdn BhdGleneagles Dialysis Provision of dialysis care Singapore 40 40International Pte Ltdand its subsidiary:Gleneagles Dialysis Provision of business Singapore 44 44Centre Pte Ltd management, consultancyand specialised medicalservicesPT Tritunggal Sentra Provision of medical Indonesia 30 30Utama, Surabaya diagnostic servicesKyami Pty Ltd Investment holding Australia 30 30and its subsidiaries:Royalmist Properties Property investment Australia 30 30Pty Ltdand developmentFireace Pty Ltd Asset management Australia 30 30Syntami Pty Ltd Property management Australia 30 30Royalmist Pty Ltd Hotel and centre Australia 30 30managementKarington Holdings Pte Ltd Investment holding Singapore 50 50PT Nusautama Private hospital ownership Indonesia 25 25Medicalindoand managementPT Siloam Gleneagles Private hospital ownership Indonesia 30 30Healthcare Tbk and management

Parkway Holdings Limitedand its Subsidiaries84Notes to the Financial Statementsfor the year ended 31 December 199932. Associated Companies (cont’d)EffectivePlace ofEquityName of Company Principal Activities Incorporation Interest1999 1998% %Gleneagles International Private hospital ownership Sri Lanka 40 40Hospital (Lanka) Limited and managementDuncan Gleneagles Private hospital ownership India 50 50Hospital Ltdand managementGleneagles Heritage Investment holding British Virgin 40 40Holdings LimitedIslandsRenalcare Mount Elizabeth Provision of medical services Singapore 20 20Pte LtdRenalcare (Katong) Pte Ltd Provision of medical services Singapore 20 20Auric Pacific Group Limited Food wholesaling and Singapore 22 22and its subsidiaries: distribution, foodmanufacturing andinvestmentAuric Pacific Food Food wholesaling Singapore 22 22Industries Pte Ltd and distribution, andfood manufacturingAuric Pacific Batam Pte Ltd Property investment Singapore 22 22Sunshine Manufacturing Property investment Singapore 22 22Pte LtdGourmet Foods Pte Ltd Property investment Singapore 22 22Top-One Foods Pte Ltd Dormant Singapore 22 22Auric Property Pte Ltd Property investment Singapore 22 22Auric Pacific Property investment Singapore 22 22(International) Pte LtdAuric Pacific Enterprise Investment trading Singapore 22 22Pte LtdAuric Pacific Indonesia Dormant Singapore 22 22Pte LtdAPG Foods Pte Ltd Investment trading Singapore 22 22(formerly known asAuric Pacific VenturesPte Ltd)

Notes to the Financial Statementsfor the year ended 31 December 1999Parkway Holdings Limitedand its Subsidiaries8532. Associated Companies (cont’d)EffectivePlace ofEquityName of Company Principal Activities Incorporation Interest1999 1998% %Auric Pacific (M) Food wholesaling Malaysia 22 22Sdn Bhdand distributionClassic Aspire Sdn Bhd Investment holding Malaysia 22 22Auric Pacific Marketing Food wholesaling Singapore 22 –Pte Ltd (formerly and distributionknown as EAC ConsumerProducts (S) Pte Ltd)Sunshine Services Investment holding Hong Kong 22 22(HK) LtdWellington Cold Refrigerated New 22 22Storage Limited warehousing ZealandCold Storage Holdings Dormant United 22 22P.L.C.KingdomC-Med Pte Ltd (formerly known Cyber-medicine and Singapore 50 –as Tele-Health Monitoring other relatedServices Pte Ltd)healthcare servicesParkway Managed Care Pte Ltd Management of managed Singapore 50 seecare and related services note 5Mount Elizabeth Charter Provision of specialised Singapore 50 –Behavioural Services Pte Ltd medical services andnursing and personalcare services

Parkway Holdings Limitedand its Subsidiaries86Notes to the Financial Statementsfor the year ended 31 December 199933. Information Required by Paragraph 7Ninth Schedule, Companies Act, Chapter 50The Group’s and the Company’s liabilities and debts at the balance sheet date (excludingdeferred taxation, fixed deposits and cash in hand and at banks) are:1999 1998Liabilities Debts Liabilities DebtsPayable Receivable Payable ReceivableThe Group $’000 $’000 $’000 $’000Within 1 year 504,323 86,248 441,130 72,908From 1 to 2 years 94,668 180 35,712 7,732Within 2 years 598,991 86,428 476,842 80,640From 2 to 5 years 337,009 – 535,045 –936,000 86,428 1,011,887 80,640The CompanyWithin 1 year 323,733 302,108 278,015 349,355From 1 to 2 years – – 27,374 –Within 2 years 323,733 302,108 305,389 349,355From 2 to 5 years 300,000 – 300,000 –623,733 302,108 605,389 349,35534. Segment InformationProfitTotalTurnover before tax Assets1999 $’000 $’000 $’000Analysis by ActivityHealthcare 331,439 17,039 792,354Property and others 55,245 31,616 800,058386,684 48,655 1,592,412Geographical AnalysisSingapore 332,554 61,291 1,238,352Hong Kong 4,372 (713) 133,999Malaysia 14,564 (989) 32,332United States of America – 8,749 20,544United Kingdom 35,194 (19,893) 135,134Australia – 49 4,941Indonesia – – 17,665India – 161 9,445386,684 48,655 1,592,412

Notes to the Financial Statementsfor the year ended 31 December 1999Parkway Holdings Limitedand its Subsidiaries8734. Segment InformationProfitTotalTurnover before tax Assets1998 $’000 $’000 $’000Analysis by ActivityHealthcare 305,207 17,781 764,903Property and others 49,547 19,337 1,076,803354,574 37,118 1,841,706Geographical AnalysisSingapore 326,944 35,642 1,461,641Hong Kong 3,748 906 141,277Malaysia 12,658 (1,248) 28,777United States of America – 6,766 44,498United Kingdom 11,224 (5,492) 138,612Australia – 251 15,470Indonesia – – 524India – 293 8,859Sri Lanka – – 2,048354,574 37,118 1,841,70635. Subsequent EventsSubsequent to the balance sheet date,(a)(b)(c)a subsidiary, Parkway Properties Pte Ltd entered into a conditional Sale and PurchaseAgreement with Prime Asset Holdings Pte Ltd (“PAHPL”) and Quintique Investments PteLtd, both subsidiaries of Asia Pacific Investment Company Limited, for the sale of all theretail units in Parkway Parade to PAHPL for a cash consideration of $457 million andoffice/medical clinics units in Parkway Parade to QIPL for a cash consideration of$23 million. The sale of these properties is scheduled to be completed in 3 months fromthe date of the Agreement subject to the fulfillment of certain conditions preceding.a subsidiary, Medi-Rad Associates Ltd (formerly known as Medi-Rad Associates Pte Ltd)was listed on the Singapore Exchange Securities Trading Limited on 23 March 2000. Inconnection with the initial public offering, Medi-Rad Associates Ltd acquired 100% equityinterest in Radiology Consultants Pte Ltd from MEH for a cash consideration of $13,089.two wholly-owned subsidiaries, MEH and Gleneagles International Pte Ltd (“GIPL”) andConsultant Neurospecialists Pte Ltd (“CN.S”) entered into a joint venture to form a newcompany in which MEH and GIPL will subscribe for a 24% and 25% stake respectively inthe new company, with the remaining 51% equity interests to be held by CN.S. Theprincipal activities of the new company are those relating to the provisions of clinical,consultancy and management services in relation to neurological disorders and relatedservices for neuroscience centre at MEH.

Parkway Holdings Limitedand its Subsidiaries88 Notes to the Financial Statementsfor the year ended 31 December 199935. Subsequent Events (cont’d)(d)(e)(f)(g)(h)a subsidiary, Parkway Group Healthcare Pte Ltd (“PGH”) completed its subscription for a40% interest in Onemedhub.com Pte Ltd (formerly known as Onemed.com Global PteLtd) (“Onemedhub.com”).a subsidiary, Parkway Laboratory Services Ltd (formerly known as Parkway Laboratory ServicesPte Ltd) received the in-principle approval for its initial public offering from the SingaporeExchange Securities Trading Limited, which is expected to be launched in April 2000.a subsidiary, PGH, incorporated a wholly-owned subsidiary, Parkway Healthtech InvestmentsPte Ltd with an authorised share capital of $100,000 divided into 100,000 ordinary sharesof $1 each. 2 subscribers’ shares of $1 each fully paid were issued at par for cash.a subsidiary, MEH entered into a Release-License Agreement (“Agreement”) with CharterAdvantage LLC (“Charter”) to terminate a Conditional Joint Venture and ShareholdersAgreement and a Contribution Agreement previously entered into between the partiesrelating to the establishment of Mount Elizabeth-Charter Behavioural Health ServicesPte Ltd (“MECBHS”), an inpatient behavioural health unit at MEH. Pursuant to theAgreement, MEH shall acquire 50% equity interest in MECBHS for a nominal contributionof $1 from Charter, making it a wholly-owned subsidiary of MEH.a subsidiary, PGH, and an associated company, Onemedhub.com and SembCorp LogisticsLtd (“SCL”) to form a new company in Singapore to provide third party logistic services,including but not limited to, procurement, warehousing, inventory management anddistribution of medical, surgical and pharmaceutical products, equipment, instruments,drugs and other supplies to healthcare providers through electronic commerce. PGH andOnemedhub.com will subscribe 30% and 20% equity interests respectively in the newcompany, with the remaining 50% equity interests to be held by SCL.36. Cash and Cash EquivalentsCash and cash equivalents included in the Consolidated Statement of Cash Flows comprisethese balance sheet amounts:1999 1998$’000 $’000Opening balances:Cash in hand and at banks 25,186 25,195Fixed deposits with financial institutions 14,675 28,216Bank overdrafts (11,317) (6,270)28,544 47,141Closing balances:Cash in hand and at banks 40,293 25,186Fixed deposits with financial institutions 20,009 14,675Bank overdrafts (6,850) (11,317)53,452 28,544

Notes to the Financial Statementsfor the year ended 31 December 1999Parkway Holdings Limitedand its Subsidiaries8937. Directors’ RemunerationThe remuneration of directors (including directors’ fees) of the Company is analysed as follows:1999 1998Number of Number ofDirectors Directors$500,000 and above 2 1$250,000 to $499,999 – 1Below $250,000 11 8Total 13 1038. Comparative FiguresCertain items in the comparative figures have been reclassified to conform with the currentyear’s presentation.

Parkway Holdings Limitedand its Subsidiaries90 Summary of Major PropertiesThe major properties of the Group are:SINGAPOREApproximate Total PercentageSite Area Lettable/Saleable owned byLocation (sm) Area (sm) The Group Tenure1.* Parkway Parade, Marine Parade 29,407 Shops - 42,700 100% 99-year leasea 6-storey shopping Road on Offices - 17,700 22% commencingpodium cum 17-storey Lot 6649 Medical - 1,700 16% 17 August 1979office tower with Mukim 26 Centrebanks, medical centre Banking - 1,500 –and 1,343 car park lotsHalls63,6002. Gleneagles Hospital, Lot 1345 14,947 Hospital - 25,000 100% Freeholda 380-bed hospital Town Subdivision Buildingand Gleneagles25 situated atMedical Centre with 6/6A Napier Road Medical - 10,800 9%164 medical suites Centreand 402 car park lots3. Mount Elizabeth Lot 858 Town 15,204 Hospital - 38,626 100% 99-year leaseHospital and Medical Subdivision 27 Building commencingCentre, a 505-bed situated at 3 1 October 1976hospital with 214 Mount Elizabeth Medical - 19,940 4%medical suites andCentre368 car park lots4. East Shore Hospital Lot 6912 Mukim 6,200 Hospital - 10,926 100% Freeholdand Medical Centre, 26 situated at 321 anda 157-bed hospital Joo Chiat Place Medicalwith 28 medical suitesCentreand 73 car park lots5. Laboratories and Lot 2301/U2 940 Laboratories - 940 100% Freeholdoffices Mukim 1 situated and officesat 213 HendersonRoad #01-02,#02-02, #03-02& #04-02 HendersonIndustrial Park6. Eastern Specialist Lot 5188 Mukim 27 380 Clinic - 380 100% 86-year leaseCentre situated at Block 210 commencingNew Upper Changi 1 July 1992Road #01-6997. Radiologic Clinic Lot 5350 Mukim 145 Clinic - 145 100% 91-year lease05 situated at Block commencing130 Jurong East 1 April 1993Street 13 #01-219

Summary of Major PropertiesParkway Holdings Limitedand its Subsidiaries91Approximate Total PercentageSite Area Lettable/Saleable owned byLocation (sm) Area (sm) The Group TenureOVERSEAS8. Gleneagles Medical 1 Jalan Pangkor 7,319 Hospital - 8,700 70% FreeholdCentre, a 132-bed Penang Buildingprivate hospital, Malaysiaproposed expansion to250 beds is expected to becompleted by mid 20009. RS Siloam Gleneagles, 6 Jalan Siloam 17,443 Hospital - 30,010 30% 20-yeara 328-bed hospital Lippo Karawaci Building renewableand specialist 1600, Tangerang leaseoutpatient centre 15811, Jalva BaratIndonesia10. RS Gleneagles, Medan, Jln Listrik No. 6 12,065 Hospital - 25,637 25% 20-yeara 243-bed hospital Medan 20112 Building renewableand specialist Indonesia leaseoutpatient centre11. Rumah Sakit Budi Jalan Raya Gubeng 6,862 Hospital - 6,392 30% 20-yearMulia, a 148-bed 70, Surabaya 60281 Building renewableprivate hospital Indonesia lease12. Duncan Gleneagles, 58 Canal Circular 34,147 Hospital - 6,978 50% 30-year leasea 270-bed tertiary Road (off E M Building commencingacute care hospital Bypass) Calcutta - Vacant - 27,169 2 December 1994is expected to be 700 054 India Areacompleted by end 2000 34,14713. The Heart Hospital, 47 Wimpole Street 2,563 Hospital - 12,750 65% 200-year leasea 95-bed hospital London W1M 7D4 Building commencingand specialist United Kingdom 31 August 1994cardiac centre* A subsidiary, Parkway Properties Pte Ltd entered into a conditional Sale and Purchase Agreement for thesale of the property in February 2000. The sale is expected to be completed in mid 2000.

Parkway Holdings Limitedand its Subsidiaries92 Comparative Figures for Financial Yearsas at 31 December, 1995 – 1999Summary of Consolidated Balance Sheets1999 1998 1997 1996 1995$’000 $’000 $’000 $’000 $’000Issued & fully paid-up capital 179,631 179,323 160,334 155,297 144,713Share premium 304,206 302,372 249,203 224,618 193,363Capital reserves 26,442 26,442 25,635 25,635 25,255Revaluation reserves 85,475 225,409 299,963 365,486 355,679Revenue reserves 224,523 118,379 107,333 127,547 90,484Exchange fluctuation reserves (25,432) (51,307) (45,698) (35,654) (35,045)Total shareholders’ funds 794,845 800,618 796,770 862,929 774,449These funds were represented bythe following net assets:Current assets:Properties held for resale 8,454 15,610 25,672 26,556 23,609Completed properties 9,314 9,314 9,314 9,314 9,314Equity investments 4,960 5,275 9,601 43,525 43,288Stocks 12,506 10,559 10,673 9,362 8,267Debtors 70,378 66,564 60,106 60,505 57,985Fixed deposits, cash in handand at banks 60,302 39,861 53,411 42,772 48,276Total current assets 165,914 147,183 168,777 192,034 190,739Less Current liabilities:Creditors 72,590 85,485 79,105 77,577 63,320Short-term borrowingsincluding overdrafts 219,378 316,002 250,026 542,818 233,510Provision for income tax 33,320 30,613 33,016 33,486 35,419Proposed dividend 10,699 7,962 7,119 6,895 –Total current liabilities 335,987 440,062 369,266 660,776 332,249(DEFICIT) IN WORKING CAPITAL (170,073) (292,879) (200,489) (468,742) (141,510)Investment properties 495,000 504,000 547,000 576,520 562,220Interests in associated companies 233,792 449,852 487,954 494,040 455,303Fixed assets 654,808 668,569 619,147 588,882 576,343Other investments, advances anddeferred expenditure 42,898 55,581 36,570 7,433 9,240Interests in partnerships – 16,521 117,032 92,391 92,6841,256,425 1,401,644 1,607,214 1,290,524 1,554,280Less:Non-current liabilities 460,580 601,026 808,329 423,209 776,304Minority interests 1,000 – 2,115 4,386 3,527Net assets 794,845 800,618 796,770 862,929 774,449

Comparative Figures for Financial Yearsended 31 December, 1995 – 1999Parkway Holdings Limitedand its Subsidiaries93Summary of Consolidated Statements of Profit and Loss1999 1998 1997 1996 1995$’000 $’000 $’000 $’000 $’000Turnover 386,684 354,574 397,062 389,568 284,736Trading profit andinvestment income 48,655 37,118 40,794 69,680 37,621Income tax (13,314) (11,285) (22,373) (21,061) (14,430)Profit after income tax 35,341 25,833 18,421 48,619 23,191Minority interests 3,500 2,147 1,246 (603) (173)Extraordinary items 84,992 (5,382) (26,698) 2,157 (93,703)Net profit 123,833 22,598 (7,031) 50,173 (70,685)Which were dealt with as follows:Paid as dividends 17,352 11,299 13,183 12,547 5,341Added to capital reserves and/orrevenue reserves 106,481 11,299 (20,214) 37,626 (76,026)123,833 22,598 (7,031) 50,173 (70,685)Gross dividend ($) 0.07 0.04 0.06 0.06 0.03Earnings per share ($) 0.11 0.08 0.06 0.16 0.08Fully diluted earnings per share ($) 0.11 0.08 0.06 0.14 0.07Net tangible asset backing per share ($) 2.21 2.23 2.48 2.79 2.68

Parkway Holdings Limited94Analysis of Shareholdingsas at 14 April 2000Number of Percentage Number of PercentageRange of Shareholdings Shareholders (%) Shares (%)1 – 1,000 1,139 36.96 882,592 0.241,001 – 10,000 1,649 53.50 5,939,529 1.6510,001 – 1,000,000 279 9.05 17,213,207 4.791,000,001 and above 15 0.49 335,624,653 93.32Total 3,082 100.00 359,659,981 100.00Twenty Largest Shareholders (as shown in the Register of Members)as at 14 April 2000Number of PercentageName of Shareholders Shares (%)1. Citibank Nominees Singapore Pte Ltd 81,270,341 22.602. Premierhealth Investments Pte Ltd 60,182,000 16.733. Raffles Nominees Pte Ltd 51,349,432 14.284. DBS Nominees Pte Ltd 44,512,112 12.385. Overseas Union Bank Nominees Pte Ltd 31,501,807 8.766. HSBC (Singapore) Nominees Pte Ltd 19,625,195 5.467. United Overseas Bank Nominees Pte Ltd 13,928,000 3.878. Keck Seng (M) Berhad 11,429,698 3.189. Hong Leong Finance Nominees Pte Ltd 6,497,000 1.8010. Petaling Garden (S) Pte Ltd 4,573,800 1.2711. S L W Sdn Bhd 3,280,600 0.9112. Oversea Chinese Bank Nominees Pte Ltd 2,755,778 0.7613. DB Nominees (S) Pte Ltd 1,944,890 0.5414. Prudential Assurance Co Singapore (Pte) Ltd 1,472,000 0.41– Prulink Fund15. Prudential Assurance Co Singapore (Pte) Ltd 1,302,000 0.36– Life Fund16. Tan Kim Yeow Sendirian Berhad 1,000,000 0.2817. Su Lah Wah 683,080 0.1918. Tan Suat Ming Pauline 672,600 0.1919. Indosuez Singapore Nominees Pte Ltd 567,000 0.1620. BIL (Asia) Nominees Pte Ltd 474,100 0.13(Others – Less than 474,100 shares each) 20,638,548 5.74Total 359,659,981 100.00

Analysis of Shareholdingsas at 14 April 2000Parkway Holdings Limited95Substantial Shareholders(as shown in the Register of Substantial Shareholders)as at 14 April 2000BeneficialDeemedName of Shareholders Shareholdings Shareholdings1. Cobalt Limited 54,145,309 –2. DBS Group Holdings Ltd – 60,182,0003. DBS Land Limited – 60,182,0004. The Development Bank of Singapore Ltd – 60,182,0005. MND Holdings (Private) Limited – 60,182,0006. Petaling Garden (S) Pte Ltd 27,689,791 –7. Premier Health Holding Pte Ltd – 60,182,0008. Premierhealth Investments Pte Ltd 60,182,000 –9. Temasek Holdings (Private) Limited – 60,678,000

Parkway Holdings Limited96Notice of Annual General MeetingNOTICE IS HEREBY GIVEN that the Twenty-Seventh Annual General Meeting of theCompany will be held on Wednesday, 7 June 2000 at 11.00 a.m. at The Lecture Theatre,Level 3, Gleneagles Hospital, 6A Napier Road, Singapore 258500 for the purpose of transactingthe following businesses:1. To receive and, if approved, to adopt the Directors’ Report and Accounts for the year ended31 December 1999 and the Auditors’ Report thereon.2. To declare a Final Dividend of 8% per ordinary share of S$0.50 each less 25.5% income taxin respect of the year ended 31 December 1999.3. (a) To re-elect Mr Anil Thadani, who retires pursuant to Article 83 of the Articles of Associationof the Company, as Director of the Company.(b)(c)(d)(e)(f)To re-elect Mr Gordon Stavert Byrn Sr, who retires pursuant to Article 83 of the Articlesof Association of the Company, as Director of the Company.To re-elect Mr Sunil Chandiramani, who retires pursuant to Article 83 of the Articles ofAssociation of the Company, as Director of the Company.To re-elect Mr Ed Ng Ee Peng, who retires pursuant to Article 83 of the Articles ofAssociation of the Company, as Director of the Company.To re-elect Mr Goh Kee Song, who retires pursuant to Article 97 of the Articles ofAssociation of the Company, as Director of the Company.To re-elect Mr Chang See Hiang, who retires pursuant to Article 97 of the Articles ofAssociation of the Company, as Director of the Company.4. To approve Directors’ Fees of $183,250 for 1999 (1998: $193,000).5. To re-appoint Messrs. KPMG as Auditors and to authorise the Directors to fix theirremuneration.

Notice of Annual General MeetingParkway Holdings Limited976. As Special Business:To consider and, if thought fit, to pass the following resolutions (a) and (b) as ordinary resolutions:(a)(b)That subject to Section 161 of the Companies Act, Cap 50, the Articles of Association ofthe Company and the approval of the relevant Stock Exchange and/or other governmentalor regulatory bodies where such approval is necessary, the Board of Directors of theCompany be and is hereby authorised, pursuant to Section 161 of the Companies Act,Cap 50, to issue shares in the Company (including but not limited to the issue of sharesin the capital of the Company at any time thereafter pursuant to an offer, agreement oroption made or granted by the Company while this authority remains in force) at anytime to such persons, upon such terms and conditions and for such purposes as theBoard of Directors may deem fit PROVIDED ALWAYS THAT the aggregate number ofshares to be issued pursuant to this Resolution does not exceed fifty per cent. of theissued share capital of the Company for the time being, of which the aggregate numberof shares issued other than on a pro rata basis to existing shareholders does not exceedtwenty per cent. of the Company’s existing share capital.That the Board of Directors of the Company be and is hereby authorised to issue andallot from time to time such number of shares in the capital of the Company as may berequired to be issued pursuant to the exercise of the options under the Parkway EmployeeShare Option Scheme (“Parkway Scheme”) PROVIDED ALWAYS THAT the aggregatenumber of the shares to be issued pursuant to the Parkway Scheme does not exceed fiveper cent. of the issued share capital of the Company from time to time.7. To transact any other business which may normally be dealt with at an Annual General Meeting.Dividend Payment DateThe Share Transfer Books and Register of Members of the Company will be closed from 19 June 2000to 20 June 2000 (both dates inclusive) to determine shareholders’ entitlement to the final dividend of8% less 25.5% income tax. The proposed final dividend, if approved at the Twenty-Seventh AnnualGeneral Meeting, will be paid on 30 June 2000.By Order of the BoardJune Tay Kwok FungGroup Corporate SecretarySingapore, 12 May 2000

Parkway Holdings Limited98Notice of Annual General MeetingNotes:1. A member entitled to attend and vote at a meeting of the Company is entitled to appoint one or two proxies to attendand vote instead of him.2. Where a member appoints two proxies, the Company may treat the appointments as invalid unless the memberspecifies the proportion of his shareholding (expressed as a percentage of the whole) to be represented by each proxy.3. The instrument appointing a proxy or proxies must be deposited at the registered office of the Company at 80 MarineParade Road, #22-01/09 Parkway Parade, Singapore 449269 not less than 48 hours before the time appointed forthe Annual General Meeting.4. The instrument appointing a proxy or proxies must be under the hand of the appointor or of his attorney dulyauthorised in writing. Where the instrument appointing a proxy or proxies is executed by a corporation, it must beexecuted either under its seal or under the hand of an officer or attorney duly authorised.5. Mr Goh Kee Song, if re-elected, will remain as an independent member of the Audit Committee.Explanatory Notes on special business to be transacted6. (a) The ordinary resolution proposed in item 6(a) above, if passed, will empower the Board of Directors of theCompany, from the date of the above Meeting until the next Annual General Meeting, to issue shares in theCompany up to an amount not exceeding in total fifty per cent. (50%) of the issued share capital of the Companyfor the time being for such purposes as they consider would be in the interest of the Company. This authoritywill, unless revoked or varied at a general meeting, expire at the next Annual General Meeting of the Company.6. (b) The ordinary resolution proposed in item 6(b) above, if passed, will enable the Board of Directors of the Company,from the date of the above meeting until the next Annual General Meeting, to issue shares in the Company up toan amount not exceeding in total five per cent. (5%) of the issued share capital of the Company for the time beingpursuant to the exercise of the options under the Parkway Employee Share Option Scheme. This authority will,unless revoked or varied at a general meeting, expire at the next Annual General Meeting of the Company.

Proxy FormParkway Holdings Limited(Incorporated in the Republic of Singapore)Parkway Holdings Limited99I/We ____________________________________________________________________________________________________________________________of _______________________________________________________________________________________________________________________________being a Member(s) of Parkway Holdings Limited hereby appoint ___________________________________________________________of ______________________________________________________________________________________________________________________________or failing him, _________________________________________________________________________________________________________________of _______________________________________________________________________________________________________________________________as my/our proxy, to vote for me/us and on my/our behalf at the Twenty-Seventh Annual General Meeting of thesaid Company to be held on Wednesday, 7 June 2000 and at any adjournment thereof:Number of Shares HeldBy Show of HandsBy PollNo. Resolution For* Against* No. of Votes For** No. of Votes Against**1. Adoption of Directors’ Report, Audited Accountsand Auditors’ Report.2. Declaration of Final Dividend of 8% less tax.3. Re-election of Director:a. Mr Anil Thadanib. Mr Gordon Stavert Byrn Src. Mr Sunil Chandiramanid. Mr Ed Ng Ee Penge. Mr Goh Kee Songf. Mr Chang See Hiang4. Approval of Directors’ Fees for 1999.5. Appointment of Auditors and fixing oftheir remuneration.6. Special Business:a. Authority to issue and allot shares pursuantto Section 161 of the Companies Act, Cap.50.b. Authority to issue and allot shares pursuantto the exercise of options under the ParkwayEmployee Share Option Scheme.7. Any Other Business.* Please indicate your vote “For” or “Against” with a “✔” within the box provided.** If you wish to exercise all your votes “For” or “Against”, please indicate with a “✔” within the box provided.Alternatively, please indicate the number of votes “For” or “Against” each resolution within the box provided.If the Form of Proxy contains no indication as to how the proxy should vote in relation to each resolution, the proxywill vote as the proxy deems fit or abstain from voting.As witness my/our hand(s)this _____________ day of ________________ 2000✄_________________________________________________(Signature or Common Seal of Member)

Parkway Holdings Limited100Proxy FormNotes1. Please insert the total number of Shares held by you. If you only have Shares entered against your name in theDepository Register (as defined in Section 130A of the Companies Act), you should insert that number of Shares. Ifyou only have Shares registered in your name in the Register of Members, you should insert that number of Shares.If you have Shares entered against your name in the Depository Register and Shares registered in your name in theRegister of Members, you should insert the aggregate number of Shares entered against your name in the DepositoryRegister and registered in your name in the Register of Members.2. A member entitled to attend and vote at a meeting of the Company is entitled to appoint one or two proxies to attendand vote instead of him.3. Where a member appoints two proxies, the Company may treat the appointments as invalid unless the memberspecifies the proportion of his shareholding (expressed as a percentage of the whole) to be represented by each proxy.4. The instrument appointing a proxy or proxies must be deposited at the registered office of the Company at 80 MarineParade Road, #22-01/09 Parkway Parade, Singapore 449269 not less than 48 hours before the time appointed forthe Annual General Meeting.5. The instrument appointing a proxy or proxies must be under the hand of the appointor or of his attorney dulyauthorised in writing. Where the instrument appointing a proxy or proxies is executed by a corporation, it must beexecuted either under its seal or under the hand of an officer or attorney duly authorised.6. The Company shall be entitled to reject the instrument appointing a proxy or proxies if it is incomplete, improperlycompleted or illegible or where the true intentions of the appointor are not ascertainable from the instructions of theappointor specified in the instrument appointing a proxy or proxies. In addition, in the case of members whoseShares are entered against their names in the Depository Register, the Company may reject any instrument appointinga proxy or proxies lodged if such members are not shown to have Shares entered against their names in the DepositoryRegister 48 hours before the time appointed for holding the Annual General Meeting as certified by The CentralDepository (Pte) Limited to the Company.7. A corporation which is a member may authorise by resolution of its directors or other governing body such personas it thinks fit to act as its representative at the Annual General Meeting in accordance with Section 179 of theCompanies Act. The representative attending the meeting must produce evidence of his authority.

Project Consultant : Asia Business Channels Pte Ltd • Design & Production : AC Graphic Workshop Pte Ltd