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Report to Shareholders 2006growbeyond...boundaries.More than buildings, Keppel Land is committedto transforming communities across the regionby creating quality live-work-play environments.

Contents1 Group financial highlights2 Five-year group financial profile3 Group quarterly resultsCorporate stewardship4 Chairman’s message10 The Keppel Land investment proposition24 Group at a glance26 Board of directors34 Senior management38 Profile of directors and senior management40 Key personnel44 Corporate governance55 Interested person transactions56 Investor relations60 Awards and accoladesSpecial feature62 Waterfront homes – Living the good lifeOperating and financial review72 Key figures at a glance73 Strategic directions74 Financial review79 Sensitivity analysis80 Property portfolio analysis82 Value added statement84 Productivity analysis86 Economic value added87 Corporate liquidity and capital resources89 Risk management91 Safety management92 Business dynamics and risk factors93 Critical accounting policies andrecommended accounting practice95 Significant events98 Operations and market review148 Regional network150 People review156 Corporate and social responsibilityStatutory report and accounts166 Directors’ report171 Statement by directors172 Auditors’ report173 Consolidated profit and loss account174 Balance sheets175 Consolidated statement of changes in equity177 Company statement of changes in equity178 Consolidated cashflow statement180 Summary of significant accounting policies189 Notes to the financial statements219 Significant subsidiary and associated companies225 Corporate information226 Calendar of financial events227 Corporate structure229 Property portfolioShareholder information243 Statistics of shareholdings245 Notice of annual general meetingand closure of books249 Share transaction statisticsProxy formWe aim to be Asia’sdeveloper of choice,with award-winningproperties reputed forquality hallmark and value.

In 2006, Keppel Land delivered ongrowth in shareholder value with astrong financial performance.Group financial highlights 2006 2005 % Increase/$’000 $’000 (Decrease)For the yearSales – excluding associated companies 948,018 586,391 61.7Operating profit 204,082 146,602 39.2Profit before taxationBefore en bloc property sales and impairment loss 217,983 183,449 18.8After en bloc property sales and impairment loss 263,408 184,637 42.7Profit after taxation and minority interests 200,310 155,709 28.6Funds from/(used in) operations 167,960 (24,143) nmDevelopment expenditure 495,125 656,367 (24.6)Capital expenditure 29,765 4,549 554.3Dividends paid 35,962 28,543 26.0Dividend in specie 262,894 - nmValue added from operations 355,300 245,200 44.9At year-endShareholders’ funds 1,590,934 1,678,932 (5.2)Minority interests 310,018 280,577 10.5Short and long-term borrowings 2,550,726 2,832,196 (9.9)Total funds invested 4,451,678 4,791,705 (7.1)Per shareEarnings (cents) (Note 1)Before tax but after en bloc property sales and impairment loss (cents) 33.6 26.7 25.8After tax but before en bloc property sales and impairment loss (cents) 21.6 21.7 (0.5)After tax and en bloc property sales and impairment loss (cents) 27.9 21.8 28.0DividendsOne-tier 6.0 5.0 20.0Gross equivalent (cents) 6.0 5.0 20.0Special dividend in specieOne-tier (cents) 7.1 - nmLess tax (cents) 29.5 - nmTotal gross equivalent (cents) 44.0 - nmNet tangible assets ($) 2.21 2.35 (6.0)Financial ratiosReturn on shareholders’s equity (%) (Note 2)Before tax but after en bloc property sales and impairment loss 15.3 11.6 31.9After tax but before en bloc property sales and impairment loss 9.9 9.4 5.3After tax and en bloc property sales and impairment loss 12.8 9.5 34.7Dividend cover (Note 3) 4.6 4.3 7.0Interest cover (Note 4) 3.0 3.4 (11.8)Debt-equity ratio (%) (Note 5) 104 114 (8.8)EmployeesNumber (average) 2,550 2,083 22.4Wages and salaries ($’000) 66,956 51,757 29.4Pre-tax profit per employee ($’000) (Note 6) 104 85 22.4Notes:1. Earnings per share is calculated by reference to the weighted average number of shares in issue during the year.2. In calculating returns on shareholders’ equity, the weighted average basis has been used.3. Dividend cover is 0.7 times for 2006 if the special dividend in specie is included.4. In the calculation of interest cover, en bloc property sales and impairment loss is excluded.5. In the calculation of the debt-equity ratio, debt includes borrowings net of cash and equity includes minority interests in subsidiary companies.6. In the calculation of pre-tax profit per employee, the profit of associated companies and en bloc property sales and impairment loss are excluded.7. nm – not meaningfulGroup financial highlightsKeppel Land LimitedReport to Shareholders 2006

Five-year group financial profile2002 2003 2004 2005 2006Income statement ($’000)Sales 298,968 678,781 476,165 586,391 948,018Operating profit 119,215 127,783 111,051 146,602 204,082Profit before taxationBefore en bloc property sales and impairment loss 129,189 135,074 139,915 183,449 217,983After en bloc property sales and impairment loss 61,303 109,274 139,915 184,637 263,408Profit after taxation and minority interests 26,373 100,363 132,687 155,709 200,310Balance sheet ($’000)Fixed assets and investment properties 1,876,296 1,734,728 1,755,983 1,908,557 1,404,859Investments 420,444 460,905 458,039 415,142 659,375Properties held for development 169,798 195,147 186,437 213,801 183,327Net current assets (Note 1) 1,593,434 1,736,898 1,615,074 2,301,550 2,238,555Proceeds from sale of residential receivables (302,000) (302,000) – – –Deferred liabilities (36,443) (31,527) (28,467) (47,345) (34,438)Assets employed 3,721,529 3,794,151 3,987,066 4,791,705 4,451,678Shareholders’ funds 1,480,288 1,486,904 1,606,806 1,678,932 1,590,934Minority interests 189,604 206,302 225,627 280,577 310,018Short and long-term borrowings 2,051,637 2,100,945 2,154,633 2,832,196 2,550,726Total funds invested 3,721,529 3,794,151 3,987,066 4,791,705 4,451,678Per shareEarnings (cents) (Note 2)Before tax but after en bloc property sales and impairment loss 7.7 15.8 19.0 26.7 33.6After tax but before en bloc property sales and impairment loss 13.3 17.8 18.7 21.7 21.6After tax and en bloc property sales and impairment loss 3.7 14.2 18.7 21.8 27.9DividendsOne-tier (cents) – – – 5.0 6.0Less tax (cents) 2.7 3.1 4.0 – –Gross equivalent (cents) 3.5 4.0 5.0 5.0 6.0Special dividend in specieOne-tier (cents) – – – – 7.1Less tax (cents) – – – – 29.5Total gross equivalent (cents) – – – – 44.0Net tangible assets $2.09 $2.09 $2.26 $2.35 $2.21Financial ratiosReturn on shareholders’ equity (%) (Note 3)Before tax but after en bloc property sales and impairment loss 3.6 7.5 8.7 11.6 15.3After tax but before en bloc property sales and impairment loss 6.4 8.5 8.6 9.4 9.9After tax and en bloc property sales and impairment loss 1.7 6.8 8.6 9.5 12.8Dividend cover (Note 4) 1.4 4.4 4.6 4.3 4.6Interest cover (Note 5) 2.4 2.9 3.9 3.4 3.0Debt-equity ratio (%) (Note 6) 109 95 96 114 104EmployeesNumber 1,831 1,835 1,975 2,083 2,550Wages and salaries ($’000) 33,498 38,200 44,173 51,757 66,956Pre-tax profit per employee ($’000) (Note 7) 62 61 56 85 104Notes:1. In arriving at net current assets, short-term borrowings have been excluded.2. Earnings per share is calculated by reference to the weighted average number of shares in issue during the year.3. In calculating returns on shareholders’ equity, the weighted average basis has been used.4. Dividend cover is 0.7 times for 2006 if the special dividend in specie is included.5. In the calculation of interest cover, en bloc property sales and impairment loss is excluded.6. In the calculation of the debt-equity ratio, debt includes borrowings net of cash and equity includes minority interests in subsidiary companies.7. In the calculation of pre-tax profit per employee, the profit of associated companies and en bloc property sales and impairment loss are excluded.Five-year group financial profileKeppel Land LimitedReport to Shareholders 2006

Group quarterly resultsQuarter 1 Quarter 2 Quarter 3 Quarter 4 Total Year$’000 % $’000 % $’000 % $’000 % $’000Sales2006 8,957 13 231,555 24 255,605 27 341,901 36 948,0182005 94,469 16 144,145 25 162,945 28 184,832 31 586,391Operating profit2006 38,445 19 75,117 36 43,971 22 46,549 23 204,0822005 41,628 28 36,919 25 29,814 20 38,241 27 146,602Profit before taxation and en bloc property salesand impairment loss2006 46,185 21 75,316 35 39,322 18 57,160 26 217,9832005 45,720 25 38,532 21 40,846 22 58,351 32 183,449Profit before taxation but after en bloc property salesand impairment loss2006 46,185 18 75,316 29 39,322 15 102,585 38 263,4082005 45,720 25 38,532 21 40,846 22 59,539 32 184,637Profit attributable to shareholders2006 36,343 18 44,278 22 38,467 19 81,222 41 200,3102005 36,247 23 30,750 20 33,172 21 55,540 36 155,709Turnover was highest in the fourth quarter due to more progressive revenue recognition for the Group’s residentialdevelopments such as The Seasons in Beijing as well as both Urbana and Park Infinia at Wee Nam in Singapore.Operating profit of $75.1 million in the second quarter was contributed mainly by the sale of Evergro Properties’ subsidiarywhich owned 133 ha of land in Tianjin and earnings from 8 Park Avenue in Shanghai, and Park Infinia at Wee Nam andThe Suites at Central in Singapore.Profit before taxation but after en bloc property sales and impairment loss at $102.6 million was highest in the fourth quarterdue mainly to gains from the sale of Hotel InterContinental in Singapore and Ocean Towers in Shanghai.At the attributable profit level, the Group’s projects did better in all quarters compared with those for the correspondingquarters in 2005 with the fourth quarter recording a profit of $81.2 million. The better performance in 2006 came on theback of higher contributions from residential projects in China and Singapore, and gains from en bloc sales and write-backof provision for properties held for sale, partly offset by impairment loss.Group quarterly resultsKeppel Land LimitedReport to Shareholders 2006

Chairman’s messageIn 2006, the Group’s two-prong strategy offocusing on property development for sale andproperty fund management has begun to pay off,achieving a profit after tax and minority interestsof $200.3 million, a 28.6% increase from 2005.Chairman’s messageKeppel Land LimitedReport to Shareholders 2006

Dear Shareholders,On behalf of the Board, I present the Keppel Land Groupreport for the year ended 31 December 2006.Financial performance2006 marked significant milestones for Keppel Land.The Group achieved a profit after tax and minorityinterests (PATMI) of $200.3 million, a 28.6% increasefrom $155.7 million in 2005.PATMI from property trading rose 34.7% to $150.7 million,boosted by strong sales of residential homes in Singapore,China, India and Vietnam. The Group’s performance was alsosupported by the sale of its stakes in InterContinental Hotelin Singapore, Ocean Towers in Shanghai and SingaporeSuzhou Industrial Holdings as well as the sale of a subsidiary’sproperty interest in Tianjin. Moving ahead, Keppel Land willcontinue with this strategy of acquisition and developingproperties for sale.With higher contributions from China, India and Vietnam,PATMI from overseas increased by 7.6% to $98.1 million,continuing the uptrend contribution to Group PATMI. For2006, overseas earnings as a percentage of Group PATMI(before en bloc property sales and impairment loss) amountedto 64%, up from 59% in 2005, 43% in 2004 and 32% in 2003.In a move to unlock value from its office portfolio, Keppel Landestablished K-REIT Asia, a commercial real estate investmenttrust with an initial portfolio of four prime office buildings.K-REIT Asia was listed on the Singapore Exchange by way ofan introduction on 28 April 2006. About 60% (144.4 millionunits) of K-REIT Asia units were distributed to Keppel Landshareholders while the Group retained the remaining 40%.This distribution in specie also transferred the benefit of theCompany’s remaining Section 44A tax credits of about$53 million to its shareholders.To reflect fair market value, the Group made provisionsagainst the diminution in the value of its two hotels inMyanmar ($32.2 million) and the investment in an associatedcompany with hotel interest in Indonesia ($5 million).As a result of the successful execution of these initiatives,Keppel Land was able to achieve a return on equity of 12.8%for 2006, up from 9.5% in 2005.With greater profitability, Keppel Land’s net debt-equityratio fell from 1.14 to 1.04. Keppel Land’s net tangible assetsper share fell from $2.35 at end-2005 to $2.21 at end-2006due to the distribution in specie of K-REIT Asia units toKeppel Land shareholders.Proposed dividendThe Board is recommending to shareholders a final one-tierdividend of six cents per share. The Company hopes tocontinue to provide higher dividends to shareholders in yearsof good results.The dividend payout amounting to about $43.2 million issubject to shareholders’ approval at the Annual GeneralMeeting scheduled on 27 April 2007. If approved, thedividend will be paid on 22 May 2007.Major developmentsSingaporeThe nation achieved strong economic growth of 7.9% for2006, as compared with 6.6% in the preceding year.Keppel Land is in a happy position of being able to ride onthe recovery of both the residential and office sectors. Theresidential sector started to rally in 2006 and caught up withthe office sector’s recovery. Urban Redevelopment Authority’sfigures showed that some 11,150 new residential units weresold during the year compared with 8,955 units in 2005 and5,785 units in 2004. The Private Residential Property PriceIndex posted an increase of 10.2% at end-2006, comparedwith the modest gains of 4% in 2005 and 0.9% in 2004. Thestrong demand for luxury residential projects near the MarinaBay and Sentosa Island integrated resorts and in the OrchardRoad area has increased prices in the luxury segmentbeyond the last peak in 1996.Amid such market sentiments, Keppel Land sold more than1,200 units, registering the third highest number of salesamong listed developers. All 428 units at Marina BayResidences, the 55-storey residential tower in the MarinaBay Financial Centre (Phase I), were sold out within threedays at an average sales price of $1,950 psf. The SixthAvenue Residences, located in prime District 10, sold all its175 units within two weeks at an average price of $1,000psf. Caribbean at Keppel Bay sold all of its 801 launchedunits while retaining 168 units as corporate residences.Three other projects – The Belvedere, Amaranda Gardensand The Callista – achieved 100% take-up while Park InfiniaChairman’s messageKeppel Land LimitedReport to Shareholders 2006

Chairman’s messageKeppel Land was able to achievea return on equity of 12.8% for2006, up from 9.5% in 2005.Return on equity20032004200520066.8%8.6%9.5%12.8%at Wee Nam and Urbana saw strong take-up of more than90% of its launched units.New downtownDuring the year, the office market continued to strengthenwith demand driven by the banking and financial institutions,consultancy and logistics firms, and IT companies.Occupancies for prime Grade A buildings reached 99.2%while rentals for this segment rose more than 50% from$5.70 psf at end-2005 to $8.73 psf at end-2006. Take-up ofnew office space was 2.4 million sf for 2006, the highestsince the IT boom in 2000.In the new downtown, the landmark office development OneRaffles Quay, developed jointly with Cheung Kong (Holdings)and Hongkong Land, saw 100% commitment before itscompletion in October 2006. One Raffles Quay was the firstoffice development to achieve rentals of $10 psf, a new highfor office rental in 2006. It is now the address for many topfinancial institutions including ABN AMRO, Barclays Capital,Credit Suisse, Deutsche Bank, UBS, Societe-Generale andErnst & Young.Likewise, the Marina Bay Financial Centre (MBFC), which isalso developed jointly with the same partners, has seen keeninterest from potential tenants ahead of its scheduledcompletion in 2010.In addition to the 55-storey residential tower, MBFC (Phase I)will see two office towers of 33 storeys and 51 storeys risingmajestically along the waterfront. Together with the MarinaBay Integrated Resort and the Esplanade theatres, it is anintegral piece in the necklace of attractions around the bay.Going forwardThe MBFC consortium has recently announced its decisionto proceed with the second phase comprising the entireremaining 194,000 sm of gross floor area. The purchase ofthe site demonstrates the consortium’s confidence inSingapore’s property market and its continued developmentas a key financial centre in Asia. Phase Two will provide moretop quality office space as well as luxury residential units.To further unlock value from its office properties, KeppelLand will undertake several initiatives. It will be re-developingthe 33-year-old Ocean Building to capitalise on its excellentlocation facing the new downtown and residing on top of theRaffles Place Mass Rapid Transit station. It has also raised itsstake in Equity Plaza from 35.37% to 64.63% for eventualrealisation of value.Chairman’s messageKeppel Land LimitedReport to Shareholders 2006

As appreciation of the waterfront lifestyle begins to catch onin Singapore, the Keppel Group will be launching Phase Twoof Keppel Bay, the 30-ha waterfront precinct which was oncethe site of historic Keppel Harbour.Designed by internationally-renowned architect DanielLibeskind, Reflections at Keppel Bay with a total of 1,129waterfront homes, rides on the success of award-winningCaribbean at Keppel Bay. The development will have thedistinction of commanding the tallest height in the vicinity.With six glass towers standing at 24 storeys and 41 storeys,and 11 lower blocks of six to eight storeys of villaapartments, the iconic Reflections at Keppel Bay will offerspectacular water views overlooking the Sentosa IslandIntegrated Resort featuring Universal Studios while the rearof the development is solidly “backed” by Mount Faber.Proximity to VivoCity, Singapore’s largest retail mall with onemillion sf of space and the HarbourFront Mass Rapid Transitstation, is another attraction to this unique waterfrontresidential development. With its breathtaking sea views, anocean playground of a $30-million marina on the islet PulauKeppel, Reflections at Keppel Bay will allow the Group to stampits indelible mark in the luxury niche area of waterfront housing.Fund managementApart from redeploying capital from its investment buildingsinto development projects providing higher and quickerreturns, the establishment of K-REIT Asia provides an additionalplatform for Keppel Land to grow its fee-based income.While offering unitholders exposure to the attractiveSingapore office sector, K-REIT Asia has a pan-Asian mandateand will be able to capitalise on opportunities arising from thedevelopment of the property markets in the region.K-REIT Asia will grow its asset size to $2 billion in the nextfew years from its initial portfolio of four buildings revalued at$677 million at end-2006. It is well-positioned for growththrough potential acquisitions from its sponsor Keppel Landas well as assets from third-party vendors.The Group’s other fund management vehicle, AlphaInvestment Partners (Alpha) has performed well in 2006.Alpha concluded the final closing of Alpha Core Plus RealEstate Fund (ACPREF), raising $720 million which exceededits original target of $412 million. ACPREF and other fundsmanaged by Alpha acquired 18 properties in four countries –Japan, Singapore, Hong Kong and South Korea. Alpha alsosecured its first Shariah compliant mandate, and manages aninitial portfolio of properties worth $250 million according toIslamic principles. Asia No. 1 Property Fund, Alpha’s firstfund which is managed jointly with Henderson GlobalInvestors, has achieved good returns in excess of its targetreturn, realising some of this return by selling twoinvestments at substantial gains.Together, the three funds under Alpha will have total assetsunder management (AUM) of more than $4 billion when thefunds are fully leveraged and fully invested. Including K-REITAsia, the AUM will be close to $5 billion when the funds arefully leveraged and invested. With the continued interest ofinvestors, Alpha will be launching two new funds in 2007.OverseasThe Group sold more than 2,500 homes mostly in China,India and Vietnam. Across Asia, demand will be sustained bystrong home ownership aspirations supported by economicgrowth, favourable demographics, a growing middle classand urban migration.The Group’s first residential township in China, The Botanicain Chengdu, has sold 1,000 units per annum for 2005 and2006. From 2007, the Group will be rolling out more than20,000 residential township homes for sale in China, Vietnamand Indonesia. It will also continue to pursue its townshipinitiatives in promising cities in Asia.China and IndiaWith GDP growth averaging 10.4% and 8.1% respectively inthe last three years, China and India continue to serve aspowerful growth engines for the rest of Asia. Keppel Landcontinues to extend its presence across key cities in the twocountries.Witnessing the strong aspirations for homes among themiddle class, the Company has increased its stake in aChina-focused subsidiary Evergro Properties Limited(formerly known as Dragon Land Limited) as an additionalplatform to expand into the promising secondary cities ofChina. Keppel Land and Evergro will be jointly developingan urban residential-cum-commercial project providing 2,100homes in Jiangyin, one of the gateways to the prosperousJiangsu Province.In India, Keppel Land entered into the city of Kolkata where ithas tied up with Magus Estates to build almost 1,400 homeson a 10-ha site. In Bangalore, the Group will be launching itssecond condominium project Elita Horizon following theChairman’s messageKeppel Land LimitedReport to Shareholders 2006

Chairman’s messageWith higher contributions fromChina, India and Vietnam, PATMIfrom overseas increased by 7.6%to $98.1 million, continuing theuptrend contribution to GroupPATMI. For 2006, overseasearnings as a percentage ofGroup PATMI (before en blocproperty sales and impairmentloss) amounted to 64%, up from59% in 2005, 43% in 2004 and32% in 2003.Overseas earnings as a percentage of Group PATMI200320042005200632%43%59%64%success of Elita Promenade. Together, Keppel Land will havea pipeline of 4,000 homes in India to be released over thenext few years.VietnamVietnam’s recent entry into the World Trade Organisation willaccelerate the opening of its economy, which will translateinto greater demand for good quality homes. All 101 villas atVilla Riviera along the Saigon riverfront in the An Phu wardhave been taken up. The first phase of its residential township,Saigon Sports City, is expected to be launched in 2007.IndonesiaTapping the growth of the middle class and strong aspirationsfor good quality homes, the Company has embarked on itsfirst residential township development in Cakung, in EastJakarta. The integrated development, comprising more than7,000 landed homes and apartments, is close to the maturedresidential townships of Kelapa Gading and MetropolitanMenteng. The first phase comprising 1,100 units is expectedto be launched for sale in 2007.International awards for qualityKeppel Land was placed among the Top 10 Asian companiesin the prestigious Euromoney Award for Excellence in RealEstate 2006.The Company continued to scale new heights for its productexcellence. In Singapore, Caribbean at Keppel Bay took thetop prize for the residential category while HarbourFront OfficeTowers took the runner-up position in the office/industrialcategory at the FIABCI Prix d’Excellence 2006 Awards, whichis considered the Oscars of the global real estate industry.Overseas, Keppel Land’s projects have also won accolades.In China, Spring City Golf & Lake Resort was named BestGolf Course in Asia and Best Golf Course in China in 2006 byAsian Golf Monthly. The same magazine also named RiaBintan Golf Club as Best Golf Course in Asia – 1st Runner-upand Best Golf Course in Indonesia in the same year.Corporate governance andcorporate social responsibilityKeppel Land ranked fourth among 621 companies on theBusiness Times Corporate Transparency Index, the onlyproperty developer to make it to the Top 10. The annualranking of listed companies for transparency is conducted incollaboration with the Corporate Governance & FinancialReporting Centre and the Association of Chartered CertifiedAccountants of Singapore.Chairman’s messageKeppel Land LimitedReport to Shareholders 2006

Keppel Land was also awarded the Best Annual ReportAward for listed companies with market capitalisation ofmore than $500 million at the inaugural Singapore CorporateAwards, organised by The Business Times in collaborationwith UBS and supported by the Singapore Exchange.The Company also took the runner-up award for the MostTransparent Company under the property category at theSecurities Investors Association (Singapore) Investors’Choice Awards 2006.To demonstrate its commitment to corporate socialresponsibility (CSR), Keppel Land has joined SingaporeCompact, which serves as a national platform for fosteringdialogue and collaboration on CSR. Keppel Land sharesSingapore Compact’s belief in the importance of integratingsocial values and mission within business decision-making toachieve positive and sustainable outcomes towardsbusiness, environment and the community at large.It also joined the Singapore Green Business Alliance, anassociation that promotes environmental protection, bestpractices and cooperation among Singapore companies.More recently, Keppel Land has decided to support MainlyI Love Kids in the Share a Meal (SAM) programme for lessprivileged children. SAM is a fund set up for needy studentsfrom low income families in crisis. The Company will matchdollar-for-dollar what staff donate to the fund.Talent management for growthAs Keppel Land continues to expand regionally, leadership inkey positions becomes increasingly important. Severalmanagement development programmes have beenimplemented to address this issue. Of these, the YoungManagers Development Programme aims to groom futureleaders in middle management positions by identifying andplacing promising young executives in a five-yeardevelopment programme, while the Local ManagersDevelopment Programme aims to grow local talents inKeppel Land’s overseas offices with the long-term objectiveof localising the management team overseas.Emphasis on safety cultureA Board Safety Committee has been set up early this year tosupport management’s efforts to foster a safety culture inthe Company.Comprising four independent Directors, the Board SafetyCommittee will strengthen Keppel Land’s commitment tosafe practices in all its operations both in Singapore andoverseas. Emphasis will be given to staff training and otherefforts that are fundamental and have an enduring effect onsafe work processes and procedures.The Board Safety Committee will guide the Workplace Safetyand Health Committee, comprising representatives frombusiness units, in the formulation of safety policies to ensurethat processes, checks and balances and audit protocols arein place and strictly adhered to by everyone involved in anyKeppel Land project. Ultimately, we aim to create in KeppelLand a safety culture that drives all employees’ thoughts andactions in their personal and professional lives.AcknowledgementsI wish to acknowledge the contribution of the late Mr ThaiChee Ken, who had served the Keppel Land Board from1997 until March 2006. He had contributed much to thegrowth of the Company and made valuable contribution,particularly as Chairman of the Audit Committee, andMember of the Nominating Committee.During the year, the Keppel Land Board appointed a newindependent Director, Ambassador Edward Lee. Over thepast 20 years, Mr Lee has served as Singapore Ambassadorto Indonesia and the Philippines as well as the SingaporeHigh Commissioner to Brunei. I am confident that Mr Lee’sstrong network and understanding of the Asian political andbusiness climate will help the Board chart the direction of theGroup’s future growth overseas.Keppel Land’s management and staff have worked hard tomeet the challenges in the market place in Singapore andoverseas. I wish to thank them for their efforts.I would also like to take this opportunity to thank shareholders,business partners and customers for their continued support.With the support of all stakeholders, Keppel Land hopes tocontinue to perform well for 2007.Yours sincerely,Lim Chee OnnChairman9 March 2007Chairman’s messageKeppel Land LimitedReport to Shareholders 2006

Keppel Land has thedepth and breadthto grow beyond.Keppel Land’s depth inexperience and keen marketknowledge underpin ourdevelopment of premierhomes and investment-gradecommercial properties;our wide regional networkenhances our ability to capitaliseon rising homeownershipaspirations in the regionwith our township strategy;and our strength inexecution enables us tocreate a quality portfolioof landmark developmentsstamped with our hallmarkof product excellence.We leverage our depth,breadth and strength tobe the developer of choiceacross Asia.10The Keppel Land investment propositionKeppel Land LimitedReport to Shareholders 2006

Depth and breadth...in execution enablesKeppel Land to deliverrobust shareholder valuein its portfolio of businessespositions Keppel Land asAsia’s premier propertydeveloperin reputation drivesKeppel Land to enrichcommunities throughquality landmarksThe Keppel Land investment propositionKeppel Land LimitedReport to Shareholders 200611

scaling heightsDepth and breadth in execution enablesKeppel Land to deliver robust shareholdervalue. Supported by its strong developmentexpertise and experienced teams,Keppel Land continues to drive strongfinancial performance and delivergrowth in shareholder value.

scaling heightsFinancial discipline and execution capabilities toincrease shareholder valueSuccessful execution of its initiatives enabled Keppel Landto achieve a 28.6% increase in profit after tax and minorityinterests to $200.3 million and a return on equity of 12.8%,one of the highest among property companies in Singapore,in 2006. These reflect astute financial management andexecution skills by Keppel Land to deliver valueto shareholders.Several initiatives are in place to further realise the valueof Keppel Land’s prime commercial property portfolio inSingapore. Keppel Land has raised its stake in Equity Plazato 64.6% for eventual realisation of value and will redevelopOcean Building to capitalise on its excellent locationoverlooking the new downtown.Equity Plaza14The Keppel Land investment propositionscaling heightsKeppel Land LimitedReport to Shareholders 2006

Growing fee-based income for sustainableearnings streamsKeppel Land successfully listed its first real estateinvestment trust (REIT), K-REIT Asia, in April 2006.Set up as an additional platform to grow its fee-basedincome, K-REIT Asia aims to grow into a pan-Asiancommercial REIT through asset acquisitions in Singaporeand the region. K-REIT Asia’s annualised distribution perunit for its maiden financial year has exceeded forecastby 24.5% to reach 6.76 cents.Developing signature products to drive growthKeppel Land’s portfolio of award-winning residentialdevelopments, investment-grade commercial propertiesand hotels and resorts bears the quality hallmark ofproduct excellence.Alpha Investment Partners (Alpha), Keppel Land’sfund management vehicle, has also put in credibleperformance in 2006. Alpha will grow total assets undermanagement to more than $4 billion when all the fundsare fully leveraged and fully invested. Alpha is workingon launching two new funds in 2007 to meet growingdemand for real estate funds.The 55-storey Marina Bay Residences created aneuphoria in the luxury market when all 428 units weresnapped up within three days of its preview, with onepenthouse fetching a new record price of $3,450 psf.Other signature developments in Singapore such as OneRaffles Quay, which was fully committed even before itscompletion, and Marina Bay Financial Centre in the newdowntown as well as iconic waterfront homes at KeppelBay are further testaments of Keppel Land’s commitmentto delivering the best.Listing of K-REIT AsiaMarina Bay ResidencesThe Keppel Land investment propositionscaling heightsKeppel Land LimitedReport to Shareholders 200615

deepening insightsDepth and breadth in its portfolio of businessespositions Keppel Land as Asia’s premierproperty developer. Strengthening its footholdin Singapore and overseas, and across businesssegments from property development to fundmanagement, Keppel Land continues to widenits reach and range to buttress its regionalleadership position.

deepening insightsUnveiling of Reflections at Keppel BayParticipating in Singapore’s next phase of growthKeppel Land continues to be a forerunner in the local propertymarket with landmark developments on the Singaporewaterfront. Keppel Land takes pride in playing a key role inthe remaking of Singapore and the transformation of the newdowntown into an international business and financial hub.The consortium comprising Keppel Land, Cheung Kong(Holdings) and Hongkong Land has completed thedevelopment of One Raffles Quay, a prime Grade A office18The Grow Keppel Beyond Land investment propositiondeepening Depth and insights breadth in executionKeppel Land LimitedReport to Shareholders 2006

Meeting demand for quality housing across AsiaCatering to strong demand for quality housing across Asia,sustained by strong homeownership aspirations, a growingmiddle class and positive economic growth, Keppel Land willfocus on developing residential and large-scale townshiphomes in Asia’s growth cities.The Group has built up a pipeline of more than 20,000residential township homes for sale in China, Vietnam andIndia. Riding on the success of The Botanica, Keppel Land’sfirst residential township in China, the Group will launch thefirst phase of its township developments in Wuxi, China; HoChi Minh City, Vietnam and East Jakarta, Indonesia in 2007.development at the gateway to the new downtown. Thesame consortium partners are also behind the developmentof Marina Bay Financial Centre (MBFC), which has drawnstrong interest from potential tenants even ahead of itsscheduled completion in 2010.Capitalising on growing demand for luxury waterfront homesfrom foreign buyers and high-net-worth individuals inSingapore, Keppel Land is developing Marina Bay Residences,the residential component of MBFC, and the distinctiveReflections at Keppel Bay in the Keppel Bay precinct.Elita Horizon, IndiaThe Botanica, ChengduGrow The Keppel Beyond Land investment propositionDepth deepening and insights breadth in executionKeppel Land LimitedReport to Shareholders 200619

oadening reachDepth and breadth in reputation drivesKeppel Land to enrich communitiesthrough quality landmarks. Keppel Landcontinues to uphold its reputation asa corporate citizen who cares in everycommunity it operates, by supportingvarious social causes and programmesto sustain the environment.

oadening reachSpring City Golf & Lake ResortBenchmarking building excellenceIn Singapore and the region, Keppel Land has garneredrecognition for setting standards in building and constructionexcellence.It was ranked among the Top 10 Asian companies in theprestigious Euromoney Award for Excellence in RealEstate 2006 and a winner in the FIABCI Prix d’Excellence2006 Awards. Caribbean at Keppel Bay was winner for theresidential category while HarbourFront Office Towers wasrunner-up in the office/industrial category.Elsewhere in the region, Keppel Land’s premier resortdevelopments in China and Indonesia have also wonnumerous accolades.22The Keppel Land investment propositionbroadening reachKeppel Land LimitedReport to Shareholders 2006

Developing people to deliver valueKeppel Land has in place people development programmesto build a well-rounded talent pool to drive business growth.The Young Managers Development Programme aims togroom future leaders by identifying and placing outstandingyoung managers for training and career fast-tracking.Upholding best in classKeppel Land continues to be recognised for its highstandards of corporate transparency and disclosure.The Company was ranked fourth among 621 companiesin the Business Times Corporate Transparency Index.Keppel Land won the Best Annual Report Award at theinaugural Singapore Corporate Awards and was runner-upfor the Most Transparent Company under the propertycategory at the SIAS Investors’ Choice Awards 2006.To demonstrate its commitment to corporate socialresponsibility (CSR), Keppel Land has joined SingaporeCompact, which serves as a national platform forfostering dialogue and collaboration on CSR.The Local Managers Development Programme aims to growlocal talents in Keppel Land’s overseas offices with the longtermobjective of localising the management team overseas,leveraging their familiarity with the language, culture,business practices and networks in those countries.Contributing to sustaining the environment withbest practicesKeppel Land has taken initiatives to create and fortify a safetyculture in the Company. A Workforce Safety and HealthCommittee was formed to formulate policies and guidelineson workplace safety. A Board Safety Committee has alsobeen formed to guide management in the formulation ofsafety policies and processes.Keppel Land strives to create an optimal work-live-playenvironment to enhance the quality of life. Incorporatingbest practices in environmental design and performance,The Tresor condominium project received the Green MarkGold Award 2006.SIAS 7th Investors’ Choice Awards 2006One Raffles QuayThe Keppel Land investment propositionbroadening reachKeppel Land LimitedReport to Shareholders 200623

Group at a glanceKeppel Land Businesses Focus for 2007/2008PropertydevelopmentAimTo be the leadingproperty developerin AsiaSingapore• Capitalise on the development of Singapore’s newdowntown and the revitalisation of existing centralbusiness district• Develop luxury lifestyle homes at Keppel Bay andMarina Bay• Unlock value in office property portfolio• Seek viable opportunities for residential andcommercial developmentsOverseas• Sustain earnings growth• Continue focus in China, India, Vietnam andIndonesia• Build up pipeline of more than 20,000 qualityhomes across Asia• Explore potential developments in new marketssuch as the Middle East• Leverage expertise in waterfront developmentsManagement ofproperty fundsand real estateinvestment trustAimTo be a premierproperty fund manager• Generate more fee-based incomes through K-REITAsia and Alpha Investment Partners (Alpha)• Achieve stable returns and long-term capitalappreciation for unitholders• Grow assets under management• Launch new real estate fundsKeppel Land Limited is the property arm of the Keppel Group,one of Singapore’s largest multinational groups with keybusinesses in offshore and marine, infrastructure, and property.With beginnings dating back to 1890, Keppel Land is todayone of Asia’s premier property companies, recognised for itssterling portfolio of quality award-winning residentialdevelopments and investment-grade commercial properties,and high standards of corporate transparency and disclosure.It is geographically diversified in Asia, with current focus onSingapore, China, India, Vietnam and Indonesia.The Company is one of the largest listed property companiesby total assets on the Singapore Exchange, with total assetsof $5.2 billion as at end-December 2006. It is also partof the MSCI Singapore and FTSE EPRA/NAREIT indices.The Company’s return on equity is among the highest in theproperty industry in Singapore. In recent years, the Companycontinued to grow its share of profits from overseas to morethan 50%, which was 64% of net profit in 2006, up from59% in 2005.A leading prime office developer in Singapore, Keppel Landcontributes to defining and refining the city’s skyline withlandmark developments such as One Raffles Quay andMarina Bay Financial Centre, in the new downtown.24 Group at a glanceKeppel Land LimitedReport to Shareholders 2006

HighlightsSingapore• One Raffles Quay was 100% committed before completion• Co-developing Marina Bay Financial Centre which has a total of 438,000 sm of gross floor area• Unveiled iconic waterfront landmark Reflections at Keppel Bay• Marina Bay Residences achieved record price of $3,450 psf set for penthouse• Sold four prime office buildings to K-REIT Asia• More than 1,200 Keppel homes sold in 2006Overseas• More than 2,500 Keppel homes sold overseas in 2006• Entered new cities with Keppel Homes – Tianjin in China and Kolkata in India• Successfully launched and sold homes in The Botanica, Chengdu, China• Raised stake in China-focused Evergro Properties for growth in China’s second-tier cities• Making preparations to launch township developments – Saigon Sports City in Ho Chi Minh City, Jakarta GardenCity in Jakarta and a township in Wuxi• Listed K-REIT Asia, further unlocking value in Singapore office portfolio• Alpha growing assets under management to more than $4 billion when funds are fully leveraged and invested• Alpha achieved final closing of Alpha Core Plus Real Estate Fund• Alpha secured first Shariah compliant fundKeppel Land is also Asia’s premier home developer withworld-class iconic waterfront residences such as Reflectionsat Keppel Bay and Marina Bay Residences in Singapore.Overseas, Keppel Land has a pipeline of more than 20,000homes in residential townships across China, Indonesia andVietnam to tap on the demand for quality housing in Asia’sgrowth cities driven by strong economic growth, favourabledemographics and urbanisation trends.An established property fund manager, Keppel Landmanages funds through its property fund managementvehicle, Alpha Investment Partners, as well as K-REIT Asia, apan-Asian commercial real estate investment trust, which issponsored by Keppel Land and listed on the SingaporeExchange on 28 April 2006. Together, the total assets undermanagement will be close to $5 billion when the funds arefully leveraged and invested.Moving into the future, Keppel Land has in place variousgrowth platforms in Singapore and the region to growsustainable earnings over the next few years. These includedeveloping luxury lifestyle homes to ride on Singapore’sstrong property market, steady earnings stream fromtownships, expanding overseas residential development,unlocking value in its commercial property portfolio andgrowing fee-based income from fund management.Group at a glanceKeppel Land LimitedReport to Shareholders 200625

Board of directorsA strong Board of industryprofessionals steers theGroup into the future.Lim Chee Onn, 62ChairmanKevin Wong Kingcheung, 51Managing DirectorKhor Poh Hwa, 57Member, Nominating CommitteeMember, Board Risk CommitteeMember, Board Safety Committee26 Board of directorsKeppel Land LimitedReport to Shareholders 2006

Lim Ho Kee, 61Chairman, Nominating CommitteeMember, Remuneration CommitteeMember, Board Risk CommitteeTsui Kai Chong, 51Chairman, Audit CommitteeMember, Remuneration CommitteeMember, Board Risk CommitteeLee Ai Ming, 52Member, Audit CommitteeMember, Board Safety CommitteeBoard of directorsKeppel Land LimitedReport to Shareholders 200627

Board of directorsTan Yam Pin, 66Chairman, Remuneration CommitteeChairman, Board Safety CommitteeNiam Chiang Meng, 49Member, Nominating CommitteeMember, Board Risk CommitteeHeng Chiang Meng, 61Chairman, Board Risk CommitteeMember, Audit Committee28 Board of directorsKeppel Land LimitedReport to Shareholders 2006

Edward Lee Kwong Foo, 60Member, Board Safety CommitteeChoo Chiau Beng, 59Teo Soon Hoe, 58Board of directorsKeppel Land LimitedReport to Shareholders 200629

Board of directorsLim Chee Onn, 62Mr Lim is the Executive Chairman of Keppel CorporationLimited. He is Chairman of Keppel Land Limited, MobileOneLimited, Singapore-Suzhou Township Development Pte Ltd,and a Board Member of the Monetary Authority of Singaporeand k1 Ventures Limited. Mr Lim is also the HonoraryChairman of the National Heritage Board and DeputyChairman/Advisory Board, Harvard Singapore Foundation.In addition, Mr Lim is Co-Chairman of the Philippines-Singapore Business Council and Deputy Chairman of the SeoulInternational Business Advisory Council. He is EconomicAdvisor to the Jiangsu Provincial Government, PRC, andConsultant to the People’s Government of Yunnan Province,PRC. He is a Member of the Singapore-US Business Counciland a Member of the INSEAD Singapore International Council.Mr Lim is also a Member of the Board of Trustees of TheConference Board and Counsellor of The Conference Board’sGlobal Advisory Council on Economic Issues.Mr Lim started his career in the Civil Service. He was DeputySecretary, Ministry of Communications until his election asMember of Parliament in July 1977. He served as PoliticalSecretary, Ministry of Science and Technology from August1978 to September 1980. Mr Lim was Secretary-General,National Trades Union Congress from May 1979 to June 1983and concurrently Minister without Portfolio, Prime Minister’sOffice from September 1980 to July 1983, and remained asMember of Parliament until December 1992.Mr Lim holds a Bachelor of Science (First Class Honours) inNaval Architecture, Glasgow University; Master’s in PublicAdministration, Edward S. Mason Fellow, Kennedy School,Harvard University. He is a Member of the Wharton Society ofFellows, University of Pennsylvania, and holds an HonoraryDoctorate in Engineering, Glasgow University.Kevin Wong Kingcheung, 51Mr Wong has been Managing Director, Keppel Land Limitedsince January 2000. Prior to this appointment, he wasExecutive Director since November 1993. He is Chairmanand Director of Keppel Philippines Properties Inc., Chairmanand Director of Keppel Thai Properties Public Co Ltd, andVice-Chairman and Director, Evergro Properties Limited.He is also a Director of K-REIT Asia Management Limited,Prudential Assurance Company Singapore (Pte) Ltd, andSingapore Hotel Association.Prior to joining Keppel Land Limited, Mr Wong haddiverse experience in the real estate industry in the UK,USA and Singapore.Mr Wong holds a Bachelor’s Degree in Civil Engineering withFirst Class Honours from Imperial College, London, and aMaster’s Degree from the Massachusetts Institute ofTechnology, USA.Khor Poh Hwa, 57Mr Khor is the Senior Adviser to CPG Corporation, Director ofKeppel Land Limited since 1998 and Director of China-Singapore Suzhou Industrial Park Pte Ltd.He is the President of the Singapore-Suzhou Club (since itsformation in February 2002) and the immediate Past Presidentof the Society of Project Managers.Mr Khor is a civil engineering graduate with Bachelor’s andMaster’s degrees from the National University of Singapore.30Board of directorsKeppel Land LimitedReport to Shareholders 2006

Lim Ho Kee, 61Mr Lim is Director of Keppel Land Limited. He is Chairmanof Singapore Post Limited and a Director of a number ofprivate and public companies including Jardine Cycle &Carriage Limited, MCL Land Limited, CWT DistributionLimited and Herbal Science (Singapore) Pte Ltd, SingaporeShipping Corporation Limited and Mentor Media Ltd. He wasa Director of Singapore Telecommunications Limited fromOctober 1986 till September 2000 as well as Chairman of itsFinance and Investment Committee. He was also previouslyChairman of UBS (East Asia) and Member of the groupexecutive board in Zurich.Mr Lim served on the Board of the Civil Service College as wellas the Singapore Government’s Public Sector DivestmentCommittee in 1987. He also sat on the Singapore Government’sEconomic Planning Committee from December 1989 toOctober 1991. He was a Member of the Committee onSingapore’s Competitiveness from May 1997 to October 1998.Mr Lim studied at the London School of Economics wherehe obtained his Bachelor of Science (Economics) HonoursDegree in 1968.Tsui Kai Chong, 51Professor Tsui is Director of Keppel Land Limited since 2001.He is also Chairman of K-REIT Asia Management Limited andDirector of Fullerton Fund Management Company Ltd. He iscurrently Provost and Professor of SIM University. He wasfounding Dean of the School of Business and the Vice Provostof Undergraduate and Graduate Education at SingaporeManagement University. He was previously an AssociateProfessor in the Department of Finance and Accounting,Faculty of Business Administration, the National University ofSingapore and Deputy Director of the Graduate School ofBusiness. He is a Member of the Board of Governors, IPAcademy, Singapore.His current research interests include financial markets and riskmanagement. He has studied and published papers onprediction of corporate financial distress, corporate capitalstructure, dividend policy, stock price behaviour and theEurodollar futures market.He received his PhD in Finance from New York University in1988 and his Certified Financial Analyst qualification in 1993.Lee Ai Ming, 52Mrs Lee is a Director of K-REIT Asia Management Limitedsince 28 November 2005. She has been a Director of KeppelLand Limited since November 2002. She is currently theDeputy Managing Partner of the law firm Rodyk & Davidson.She has practised law for more than 20 years in the areas ofcommercial litigation, real estate and intellectual property.Mrs Lee is also a Director, Chairperson of the nominatingcommittee and Member of the audit committee of HTLInternational Holdings Limited.Mrs Lee serves on various other forums, e.g. as ExecutiveCommittee Member of the Singapore Law Society and theFederation Internationale des Conseils en PropriétéIndustrielle; Vice-Chairperson, Asian Patent Attorney’sAssociation – Singapore Group; Chairperson of the ASEANsubcommittee and Member of the International Panel ofNeutrals of the International Trade Marks Association; andChairperson of the Asian Patent Attorney’s Association –Singapore chapter.Mrs Lee holds a Bachelor of Laws (Honours) Degree from theUniversity of Singapore, and is an Advocate & Solicitor of theSupreme Court of Singapore.Tan Yam Pin, 66Mr Tan was appointed to the Board of the Company on1 June 2003. A Chartered Accountant by profession, he retiredas Managing Director of the Fraser and Neave Group inOctober 2002.Mr Tan is non-executive Chairman of Power Seraya Limitedand Singapore Food Industries Limited, and a Director of GreatEastern Holdings Limited, Singapore Post Limited, CiscoSecurity Private Ltd and Blue Scope Steel Limited (Australia).He was a former Board Member of East Asiatic CompanyLimited A/S (Denmark) until March 2006. He is also a Memberof the Singapore Public Service Commission since 1990.Mr Tan holds a Bachelor of Arts (Hons) Degree in Economics,from the University of Singapore and a Master of BusinessAdministration Degree from the University of British Columbia,Canada. He is a Fellow of the Canadian Institute of CharteredAccountants, Canada.Board of directorsKeppel Land LimitedReport to Shareholders 200631

Board of directorsNiam Chiang Meng, 49Mr Niam was appointed to the Board on 1 June 2003. He is thePermanent Secretary of the Ministry of CommunityDevelopment, Youth and Sports. He is also a Member of theSingapore Totalisator Board and Chairman of the SingaporeSports School Ltd.Prior to his current appointment with the Ministry ofCommunity Development, Youth and Sports, Mr Niam heldvarious positions in other Singapore Government Ministriesand Statutory Boards. He had served as Chief Executive Officerof the Housing & Development Board, Chairman of theSingapore Broadcasting Authority, Permanent Secretary withthe Ministry of Information, Communications and the Arts,Permanent Secretary with the Ministry of Law, DeputySecretary with the Ministry of Health, and Vice President(News) with the Television Corporation of Singapore.Mr Niam graduated from the National University of Singaporewith a Bachelor of Social Sciences Degree in Economics. Heobtained a Master’s in Public Administration Degree fromHarvard University in 1991.Heng Chiang Meng, 61Mr Heng was appointed to the Board on 1 March 2005. Heholds directorships in various listed companies including EconInternational Ltd, Macquarie International Infrastructure FundLtd, Orchard Parade Holdings Limited, Thakral CorporationLimited and Garratt’s Ltd. He also sits on the Board of JurongPort Private Ltd, a subsidiary of Jurong Town Corporation.Mr Heng began his career in the financial sector in 1970 aftergraduating with a Bachelor of Business Administration withHonours Degree from the University of Singapore.He has held senior positions in several financial institutionsincluding Citibank NA, Monetary Authority of Singapore andOverseas Union Bank Limited. His other major area ofexperience was in real estate, having been Managing Directorof First Capital Corporation Limited, Executive Director in theFar East Organization Group and Group Managing Director inLim Kah Ngam Limited.Mr Heng served four terms as a Member of Parliament from1984 to 2001, during which he chaired the GovernmentParliamentary Committees for Communications and theEnvironment as well as Ang Mo Kio-Cheng San CommunityDevelopment Council and Cheng San Town Council.In community organisations, Mr Heng is Chairman of theSingapore Environment Council and a Board member of theNational Environment Agency.Edward Lee Kwong Foo, 60Mr Lee was appointed to the Board on 1 July 2006.He became Singapore’s Ambassador to Indonesia in 1994, andretired on 1 July 2006 after 36 years of service with the ForeignService Branch of the Singapore Administrative Service invarious senior positions across Asia-Pacific.Since his first posting to Indonesia in 1974, Mr Lee served atotal of 18 years in the Singapore Embassy in Jakarta. He alsoserved as Ambassador to the Philippines from 1990 to 1993, aswell as High Commissioner to Brunei from 1984 to 1990.For his long-standing contributions in Public Service, Mr Leewas honoured with several accolades including the PublicAdministration Medal in 1996 (Silver) and 1998 (Gold), theLong Service Medal in 1997 and the Meritorious Service Medalin 2006.In 1993, Mr Lee was conferred the diplomatic rank of Datu(Grand Cross) of the Order of Sikatuna by the PhilippineGovernment in recognition of his efforts in promoting bilateralrelations between the Philippines and Singapore.Choo Chiau Beng, 59Mr Choo is a Director of Keppel Land Limited, Chairmanand Chief Executive Officer of Keppel Offshore & MarineLtd, Senior Executive Director of Keppel Corporation Limitedand Chairman of Singapore Petroleum Company Limited andSingapore Refining Company Pte Ltd.Mr Choo started his career with Keppel Shipyard in 1971 androse through the ranks to his present position.He is Chairman of SMRT Corporation Limited and sits on theBoard of Directors of k1 Ventures Limited, Singapore MaritimeFoundation and Maritime and Port Authority of Singapore. Heis Chairman of the Nanyang Business School’s InternationalAdvisory Board.He is also Chairman of Det Norske Veritas South East AsiaCommittee and Council Member of the American Bureau ofShipping and a Member of the American Bureau of Shipping’sSoutheast Asia Regional Committee and Special Committee onMobile Offshore Drilling Units.He is Singapore’s Non-Resident Ambassador to Brazil.Mr Choo holds a Bachelor of Science (First Class Honours),University of Newcastle upon Tyne (awarded the ColomboPlan Scholarship to study Naval Architecture) and a Master32 Board of directorsKeppel Land LimitedReport to Shareholders 2006

of Science in Naval Architecture, University of Newcastleupon Tyne. He attended the Programme for ManagementDevelopment in Harvard Business School in 1982 and isa Member of the Wharton Society of Fellows, Universityof Pennsylvania.Teo Soon Hoe, 58Mr Teo is a Director of Keppel Land Limited, Senior ExecutiveDirector and Group Finance Director of Keppel CorporationLimited, Chairman of Keppel Telecommunications &Transportation Limited and Keppel Philippines Holding, Inc. Inaddition, he is a Director of Keppel Offshore & Marine Ltd, k1Ventures Limited, Singapore Petroleum Company Limited andMobileOne Limited.Mr Teo began his career with the Keppel Group in 1975 whenhe joined Keppel Shipyard. He rose through the ranks and wasseconded to various subsidiaries of the Keppel Group beforeassuming the position of Group Finance Director in 1985.Mr Teo holds a Bachelor of Business Administration, Universityof Singapore and is a Member of the Wharton Society ofFellows, University of Pennsylvania.Board of directorsKeppel Land LimitedReport to Shareholders 200633

Senior managementFrom left to right:Quah Kim BoonPresident, Keppel Services Staff UnionLim Tow FokGeneral Manager, Property ManagementYeo Kah TiangGeneral Manager, Group Finance and AdministrationVincent TanSenior Vice President, Sedona Hotels International Pte LtdDennis Tay Choon KuanGeneral Manager, Marketing34Senior managementKeppel Land LimitedReport to Shareholders 2006

From left to right:Loh Chin HuaManaging Director, Alpha Investment Partners LtdKevin Wong KingcheungManaging DirectorTan Swee YiowDirector, Singapore CommercialAng Wee GeeDirector, Regional InvestmentsChoo Chin TeckDirector, Corporate Services and Chief Financial OfficerAugustine TanDirector, Singapore ResidentialSenior managementKeppel Land LimitedReport to Shareholders 200635

Senior managementChoo Chin Teck, 62Mr Choo is Director, Corporate Services, Keppel LandInternational Limited and Chief Financial Officer and CompanySecretary, Keppel Land Limited.He has held various senior positions in the Keppel LandGroup for about 34 years, and is presently also a Directorof Evergro Properties Limited and a number of subsidiariesand associated companies of Keppel Land Limited. Mr Choois a Fellow of the Institute of Certified Public Accountants ofSingapore and also a Fellow of CPA Australia. He has manyyears of accounting, audit, taxation, corporate treasury, humanresource management, investor relations and corporatesecretarial experience. Mr Choo is a Member of the Councilon Corporate Disclosure and Governance.Mr Choo holds a Master of Business Administration Degreefrom Brunel University, UK. As a Bachelor of Accountancygraduate from the University of Singapore, he received thegold medal for being the best all-around student. Mr Choo isalso an Associate of the Chartered Institute of ManagementAccountants, UK.Ang Wee Gee, 45Mr Ang is Director, Regional Investments of Keppel LandInternational Limited in charge of Keppel Land Group’soverseas investments. Prior to joining Keppel Land Group in1991, Mr Ang had many years of diversified experience in theproperty, hotel and management consultancy business in theUSA, Hong Kong and Singapore.Mr Ang is Vice-Chairman of Keppel Philippines Properties Incand Keppel Thai Properties Public Co Ltd, property companieslisted on the Philippine Stock Exchange and The StockExchange of Thailand respectively. He is a Director of EvergroProperties Limited, Sedona Hotels International Pte Ltd,the hotel management arm of Keppel Land Limited, anda number of other Keppel Land Group’s subsidiaries andassociated companies.Mr Ang holds a Master of Business Administration Degreefrom Imperial College, University of London. He received hisDegree of Bachelor of Science summa cum laude from theUniversity of Denver, USA.Tan Swee Yiow, 47Mr Tan Swee Yiow joined the Keppel Land Group in 1990,and is currently Director overseeing the Group’s commercialinvestment and development operations in Singapore. Prior tojoining Keppel Land Group, Mr Tan was with a banking group,advising property valuation, taxation and investment.Mr Tan is also the Chief Executive Officer of K-REIT Asia, acommercial property trust listed in the Stock Exchange ofSingapore. He is also a Director of a number of subsidiariesand associated companies of the Keppel Land Group.Mr Tan holds a Bachelor of Science Degree (First ClassHonours) in Estate Management from the National Universityof Singapore and a Master of Business Administration Degreein Accountancy from the Nanyang Technological University.He is currently a Member of the Building ConstructionAuthority’s Construction Excellence Awards Committee, andthe Management Committee of the Real Estate Developers’Association of Singapore.Augustine Tan Wee Kiong, 48Mr Tan joined the Keppel Land Group in 1991 and is currentlyDirector overseeing the Group’s residential developmentsand investments in Singapore. He was General Manager,Marketing, overseeing the marketing of Keppel Land Group’sdevelopments and investments in Singapore and overseasprior to assuming his present appointment.Prior to joining Keppel Land Limited, Mr Tan had extensiveexperience in the leasing of prime commercial and retaildevelopments to multinational companies and the sale ofresidential developments with other listed real estate developers.Mr Tan holds a Master of Business Administration Degreefrom the University of Birmingham, UK and a Bachelor ofScience Degree in Estate Management from the NationalUniversity of Singapore. He is a Member of the SingaporeInstitute of Surveyors and Valuers, and is a Director in KeppelLand International Limited and a number of other Keppel LandGroup’s subsidiaries and associated companies.36 Senior managementKeppel Land LimitedReport to Shareholders 2006

Loh Chin Hua, 46Mr Loh is the Managing Director of Alpha Investment PartnersLtd (Alpha), the real estate fund management arm of theKeppel Land Group. He joined Alpha in September 2002, andhas 22 years of experience in real estate investing and fundmanagement.Prior to joining Alpha, Mr Loh was the Managing Directorof GRA (Singapore) Pte Ltd (GRA), the Asian real estatefund management arm of Prudential Insurance Companyof America. During his eight years at GRA, Mr Loh wasresponsible for overseeing all investment and assetmanagement activities for the funds that GRA managed.Mr Loh built up GRA into one of the more established fundmanagers in Asia.Mr Loh started his career in real estate investment with theGovernment of Singapore Investment Corporation (GIC).During his ten years with GIC, Mr Loh held appointments in theSan Francisco office and was head of the European real estategroup in London before returning to Singapore to head theAsian real estate group.Mr Loh, a Colombo Plan scholar, graduated from AucklandUniversity with a Bachelor of Property Administration Degreeand Pepperdine University’s Presidential/Key Executive MBAProgramme. Mr Loh is a Chartered Financial Analyst and is alsoa registered valuer with the New Zealand Institute of Valuers.Senior managementKeppel Land LimitedReport to Shareholders 200637

Profile of directors and seniormanagementDirectorsDetails of the Directors’ present responsibilities andqualifications are set out on Pages 30 to 33. Past principaldirectorships held by Directors in the last five yearsare as follows:Lim Chee OnnNational Heritage BoardSingapore Airlines LimitedGlory Central Holdings LtdKepital Holdings Pte LtdKeppel Harbour Redevelopment LtdKeppel Power Systems Pte LtdKeppel Telecoms Pte LtdK1 eBiz Holdings Pte LtdNatSteel LimitedTemasek Holdings (Pte) LtdParksville Development Pte LtdKevin Wong KingcheungHDB Corporation Pte LtdKhor Poh HwaPM Link Pte LtdPM Link (Suzhou) Pte LtdCPG FM (Suzhou) Pte LtdChina-Singapore Suzhou Industrial ParkCPG Corporation Pte LtdLim Ho KeeSingapore Telecommunications LimitedUnion Bank of Switzerlandk1 Ventures LimitedVertex Venture Holdings LtdMCL Land LimitedTan Yam PinCentrepoint Properties LimitedFraser Centrepoint LimitedFraser & Neave LimitedThe East Asiatic Company LimitedSingapore Food Industries LimitedNiam Chiang MengBioethics Advisory CommitteeBoard of Trustees for the Community Assistance FundBoard of Trustees for the Sporting Singapore FundCouncil on Governance of Institutions of a Public CharacterHousing and Development BoardNational Arts CouncilSingapore Broadcasting AuthoritySMRT Corporation LimitedSMRT Trains LtdSMRT Road Holdings LtdSingapore Pools (Pte) LtdTemasek Management Services LtdHeng Chiang MengOverseas Union Securities LimitedLKN-Primefield LimitedChoo Chiau BengPacven Investment LtdPacven Walden Management Singapore Pte LtdWIIG Global Ventures Pte LtdTeo Soon HoeSouthern Bank BhdKeppel Bank Philippines Inc.Centurion Bank LimitedKeppel Shipyard Limited38Profile of directors and senior managementKeppel Land LimitedReport to Shareholders 2006

Senior managementDetails of senior management’s present responsibilities andqualifications are set out on Pages 36 and 37. Past principaldirectorships held by senior management in the last fiveyears are as follows:Choo Chin TeckVarious subsidiaries and associated companiesof Keppel Land LimitedAng Wee GeeVarious subsidiaries and associated companiesof Keppel Land LimitedTan Swee YiowVarious subsidiaries and associated companiesof Keppel Land LimitedAugustine Tan Wee KiongVarious subsidiaries and associated companiesof Keppel Land LimitedLoh Chin HuaGRA (Singapore) Pte LtdInterRoller Engineering LimitedMapletree Investments Pte LtdThe Harbourfront Pte LtdProfile of directors and senior managementKeppel Land LimitedReport to Shareholders 200639

Key personnelKeppel Land LimitedLim Chee OnnChairmanKevin Wong KingcheungManaging DirectorProperty Investment,Development and ManagementKeppel Land International LimitedChoo Chin TeckDirector, Corporate Services andGroup Company SecretaryRegional InvestmentsAng Wee GeeDirector, Regional InvestmentsStephen Choo Kooi YoonGeneral Manager (Projects)Liew Chin SinGeneral Manager (Township, China)Yeoh Hai YeohDeputy General Manager (China)Wee Boon LeongAssistant General ManagerSingapore CommercialTan Swee YiowDirector, Singapore CommercialJimmy Loon Chue CheokGeneral Manager (Projects), Marina Bay Financial CentreJeff Tan Yek SangAssistant General Manager (Business Development)40Key personnelKeppel Land LimitedReport to Shareholders 2006

Singapore ResidentialAugustine Tan Wee KiongDirector, Singapore ResidentialGoh Han KeeAssistant General Manager (Projects)Vernon Low Ong ChyeAssistant General Manager (Business Development)MarketingDennis Tay Choon KuanGeneral Manager, MarketingAlbert Foo Cheur WeeDeputy General Manager (Residential)Lee Eng BengDeputy General Manager (Overseas Residential)Sally Tan Meow LingAssistant General Manager (Commercial)Kan Kum WahAssistant General Manager (Marina Bay Financial Centre)Property ManagementLim Tow FokGeneral Manager, Property ManagementFinance & AdministrationYeo Kah TiangGeneral Manager, Group Finance and AdministrationMelissa TehFinancial Controller, Finance and AdministrationInvestor Relations & ResearchSerena Toh Lai SiongAssistant General Manager, Investor Relations & ResearchCorporate DevelopmentKwok Yan HoeAssistant General Manager, Corporate DevelopmentInformation TechnologyKevin Chua Kee WeeAssistant General Manager, Information TechnologyHuman ResourcesEdward Tien Tai MingAssistant General Manager, Human ResourcesInternal AuditTee Swee TengSenior Manager, Group Internal AuditChristopher Ho Kam PouyAssistant General Manager, Property ManagementSteven Neo Say HianAssistant General Manager, Property ManagementKey personnelKeppel Land LimitedReport to Shareholders 200641

Key personnelKeppel Bay Pte LtdTan Tai ChiewGeneral ManagerEvergro Properties LimitedGoh Toh SimChief Executive OfficerProperty Fund ManagementK-REIT Asia Management LimitedTan Swee YiowChief Executive Officer and DirectorDaniel CerfDeputy Chief Executive OfficerJohn Chng Hong AnnAssistant General Manager (Investment)Joseph Low Kar YewAssistant General Manager (Investment)Alpha Investment Partners LtdLoh Chin HuaManaging DirectorChristina TanExecutive DirectorDesmond Tang Kok PengExecutive DirectorHotel, Serviced Apartment andResort ManagementSedona Hotels International Pte LtdVincent Tan Aik CheongSenior Vice PresidentKeppel Digihub LimitedDave Ng Chun SunChief Executive OfficerKeppel Services Staff UnionQuah Kim BoonPresidentRegional OfficersChinaHo Cheok KongGeneral Manager, Southern ChinaArthur Yeo Hui KongGeneral Manager, KunmingWilliam Tan Tin KwangDeputy General Manager, Northern ChinaTan Choon HinGeneral Manager, Wuxi Township ProjectBenny Goh Yong HengSenior Manager, ChengduChau Shing TungSenior Manager, Tianjin42 Key personnelKeppel Land LimitedReport to Shareholders 2006

India & Middle EastSam Moon ThongDeputy General Manager, India & Middle EastLeong Tak FattDeputy General Manager, IndiaHo Kin LeongSenior Manager, Middle EastIndonesiaLim Seng BinGeneral ManagerYeo Chee KianGeneral Manager, Jakarta Garden CityMalaysiaSteven Shum Wing OnDeputy General Manager, Malaysia OperationsMyanmarVincent Tan Aik CheongSenior Vice President, Sedona Hotels International Pte LtdVietnam, Philippines & ThailandLinson Lim Soon KooiDeputy General Manager, Vietnam, Philippines & ThailandChief Representative, Keppel Land Vietnam Properties Pte LtdSin Wai MengPresident, Keppel Philippines Properties IncWong Yew SiongExecutive Director, Keppel Thai Properties Public CompanyLimitedHan Ann FoongGeneral Manager, Saigon Sports CityKey personnelKeppel Land LimitedReport to Shareholders 200643

Corporate governanceCommitment to high standards ofcorporate governance safeguards andmaximises shareholder value.The Company’s Directors and Management firmly believethat a full commitment to high standards of corporategovernance is essential to protect shareholders’ interestsand maximise long-term shareholder value.Effective corporate governance supports the Company’sbelief in transparency, and helps it to be forward-looking withfresh ideas, and more decisive in the execution of strategiesand initiatives. It is also an effective safeguard against fraudsand irregularities.These standards include having clear policies, best practicesand sound internal controls as well as a system ofcontinuous improvements. To further strengthen theCompany’s risk management processes and culture, a BoardRisk Committee was formed during the year. Details on thecomposition and responsibilities of the Committee can befound on Pages 47 and 52.The Company has received many awards for achieving highstandards in its corporate governance. Information on theseawards is set out under Communication with Shareholderson Page 53.As required by the Listing Manual of the Singapore StockExchange Securities Trading Limited (“SGX-ST”), thefollowing sections describe how the Company has effectivelyapplied the principles and guidelines of Singapore’s Code ofCorporate Governance (“the Code”).Board mattersThe Board’s Conduct of AffairsPrinciple 1: Effective Board to lead and control the CompanyThe Board oversees the effectiveness of Management aswell as the corporate governance of the Company to thebest interests of shareholders. Every Board member isequally responsible to oversee the business and affairsof the Company.The Board focuses its activities on the key requirements ofthe Company, such as the review and approval of theGroup’s corporate strategies and directions, annual budgets,major investments, divestments and funding proposals, andreview of the Group’s financial performance, risk managementprocesses and system, human resource requirements andother corporate governance practices. The Company has inplace financial authority and approval guidelines forinvestments, divestments, loans and lines of credit.The Board has a clear vision, and sets high transparency anddisclosure standards. It ensures that obligations toshareholders and other stakeholders are understood and met.Matters which are delegated to Board Committees arereported to and monitored by the Board.On 1 March 2007, as part of the efforts to further strengthenthe Group’s safety management process, a Board SafetyCommittee was formed to assist the Board in examining theeffectiveness of the Group’s safety system.The Board meets regularly on a quarterly basis and aswarranted. Telephonic and video-conferencing meetingsof the Board are allowed under the Company’sArticles of Association.44 Corporate governanceKeppel Land LimitedReport to Shareholders 2006

Corporate governance structureShareholdersNominating CommitteeRemuneration CommitteeAudit CommitteeBoard of DirectorsBoard Risk CommitteeBoard Safety CommitteeGroup Internal AuditManagementProperty Development& InvestmentProperty ServicesHotels, ServicedApartments & ResortsProperty FundManagementCorporate governanceCorporate governance structureKeppel Land LimitedReport to Shareholders 200645

Corporate governanceThe Directors’ attendances at the meetings of the Board and Board Committees are as shown below:BoardBoard CommitteesBoard Committees Audit Nominating Remuneration Board RiskNo. of meetings held 5 5 4 4 4DirectorsNo. of Meetings AttendedLim Chee Onn 5Kevin Wong Kingcheung 5Khor Poh Hwa 4 3 4Lim Ho Kee 5 4 3 3Tsui Kai Chong 5 5 4 4Lee Ai Ming 5 5Tan Yam Pin 5 4Niam Chiang Meng 4 4 4Heng Chiang Meng 4 2** 4Edward Lee (Appointed on 1 July 2006) 2*Choo Chiau Beng 3Teo Soon Hoe 5* Attended all the Board meetings held after his appointment as member of the Board.** Attended all the Audit Committee meetings after his appointment as member of the Audit Committee.Upon appointment of each Director, a formal letter is issuedto the Director. Directors are given appropriate briefing whenthey are first appointed to the Board. They are updatedregularly on accounting and regulatory changes, and are alsogiven further appropriate training from time to time.In February 2006, three Directors, namely Professor TsuiKai Chong, Mrs Lee Ai Ming and Mr Heng Chiang Mengattended The Directors’ Consortium at the Chicago GraduateBusiness School. This was a programme jointly organised bythe University of Chicago Graduate School of Business andStanford Law School.Board Composition and GuidancePrinciple 2: Strong and independent element on the BoardPresently, there are 12 Directors, 11 of whom are nonexecutiveDirectors. Eight out of the 12 Board members areindependent Directors. The Board is of the view that its sizeis appropriate, taking into account the scope and nature ofthe operations of the Company.The independence of each Director is reviewed annually bythe Nominating Committee, based on the definition ofindependence as stated in the Code.Three out of four non-independent Directors (“non-ID”),namely Mr Lim Chee Onn, Mr Choo Chiau Beng and Mr TeoSoon Hoe are considered nominees of Keppel CorporationLimited, the major shareholder of the Company.As a Group, the Directors possess all the necessarycompetencies to lead and govern the Company effectively.The non-executive Directors actively participate in settingstrategy and goals for the Company and in regularlyassessing the performance of Management. Brief details ofthe Directors’ responsibilities and qualifications are set outon Pages 30 to 33.Chairman and Chief Executive OfficerPrinciple 3: Chairman and Chief Executive Officer to be twoseparate persons to ensure a clear division of responsibilitiesand balance of power and authority.46Corporate governanceKeppel Land LimitedReport to Shareholders 2006

The nature of the Directors’ appointments on the Board, and details of their memberships in the Board Committees areset out below:Board MembershipCommittee MembershipDirectors Audit Nominating Remuneration Board RiskLim Chee OnnKevin Wong KingcheungNon-executive ChairmanNon-IDManaging DirectorNon-IDKhor Poh Hwa ID Member MemberLim Ho Kee ID Chairman Member MemberTsui Kai Chong ID Chairman Member MemberLee Ai Ming ID MemberTan Yam Pin ID ChairmanNiam Chiang Meng ID Member MemberHeng Chiang Meng ID Member ChairmanEdward LeeIDChoo Chiau BengNon-IDTeo Soon HoeNon-IDTo ensure an appropriate balance of power, increasedaccountability and a greater capacity of the Board forindependent decision-making, the Company has a cleardivision of responsibilities at the top of the Company, withthe non-executive Chairman and the Managing Director(Chief Executive Officer) having separate roles.The Chairman leads the Board and is responsible for themanagement of the Board, ensures that the Directorsreceive accurate, timely and clear information, ensureseffective communication with shareholders, facilitateseffective contribution of non-executive Directors, encouragesconstructive relations among the Board members, andpromotes high standard of corporate governance. TheManaging Director is responsible for implementing theCompany’s strategies and policies as well for the day-to-dayoperation and administration of the Company.Board MembershipPrinciple 4 : Formal and transparent process for theappointment of new DirectorsThe Company has in place a Nominating Committee, whosemain role is to make the process of Board appointments andre-appointments transparent, and to assess the effectivenessof the Board as a whole and the contribution of individualDirectors to the effectiveness of the Board as well as todetermine annually the independence of Directors. TheCommittee is made up of three independent Directorswhose duties include recommending the appointment orre-appointment of Directors, the annual review of the skillsrequired by the Board, and the size of the Board.The Committee has guidelines to address the issue ofmultiple board representations.The Chairman and the Managing Director are not related toeach other.Corporate governanceKeppel Land LimitedReport to Shareholders 200647

Corporate governanceThe Directors submit themselves for re-election at regular intervals of about once every three years. One-third of theDirectors retire at the Company’s Annual General Meeting each year. The years of initial appointment and re-election ofthe Directors are set out below:Directors Position Age Date of Initial Date of LastAppointmentRe-electionLim Chee Onn Non-executive Chairman 62 28 October 1983 29 April 2005(Director)1 January 1997(Chairman)Kevin Wong Kingcheung Managing Director 51 1 November 1993 28 April 2004(Executive Director)1 January 2000(Managing Director)Khor Poh Hwa Director 57 1 April 1998 28 April 2004Lim Ho Kee Director 61 8 November 2001 29 April 2005Tsui Kai Chong Director 51 8 November 2001 29 April 2005Lee Ai Ming Director 52 1 November 2002 28 April 2006Tan Yam Pin Director 66 1 June 2003 28 April 2004Niam Chiang Meng Director 49 1 June 2003 28 April 2004Heng Chiang Meng Director 61 1 March 2005 29 April 2005Edward Lee Director 60 1 July 2006 –Choo Chiau Beng Director 59 21 January 1985 28 April 2006Teo Soon Hoe Director 58 16 May 1991 28 April 2006The Committee assesses the appropriate mix of expertiseand experience needed for an effective Board andrecommends the candidates most suited for the positionstaking into account factors such as their track records,experience, age and capabilities. The candidates may beselected through contacts, recommendations as well assearch companies.Board PerformancePrinciple 5 : Formal assessment of the effectiveness of theBoard as a whole and the contribution by each DirectorThe Nominating Committee has implemented a process forevaluating the effectiveness of the Board as a whole and thecontribution by each individual Director to the effectivenessof the Board, and has also implemented objectiveperformance criteria for evaluation which allow comparisonwith industry peers. The performance evaluation alsoconsiders the Company’s share price performance over afive-year period vis-à-vis the Singapore Straits Times Indexand a benchmark index of its industry peers.The evaluation of the Board is done once a year by eachmember of the Nominating Committee and the process ismanaged by an Independent Co-ordinator. He will consolidatethe evaluation returns and present a report to the membersof the Committee for discussion. Thereafter, he will presentthe final report to the Board with the recommendations ofthe Committee.48Corporate governanceKeppel Land LimitedReport to Shareholders 2006

Similarly, the evaluation of each individual Director is alsodone once a year by Directors on a peer evaluation basis.The evaluation returns submitted by the Directors will beconsolidated by the Independent Co-ordinator who will thenpresent a report to the members of the Committee fordiscussion. Thereafter, the Independent Co-ordinator willdiscuss the final consolidated report with the Chairman ofthe Committee and the Chairman of the Board so that theymay provide the Board with the necessary feedback with aview to improving Board performance and shareholder value.With effect from the next Board evaluation exercise, theBoard has agreed to implement the following changes:(a) The Board evaluation questionnaire will be completed byall Board members, and not just by the members of theCommittee;(b) The evaluation of individual Directors will be differentiatedfor executive and non-executive Directors; and(c) There will be an evaluation process for the Chairman ofthe Board which the Company did not previously have.Access to Information and AccountabilityPrinciple 6: Board members to have complete, adequate andtimely informationPrinciple 10: The Board’s accountability to the shareholdersand Management’s accountability to the BoardManagement provides the Board with complete, accurateand adequate information in a timely manner in recognitionof its obligation to do so. The provision of such information,e.g. the management accounts on a monthly basis, enablesthe Directors to keep abreast of the Group’s financialperformance and position, key issues and prospects.As a general rule, Board papers are sent to Directors aboutseven days before Board meetings so that Directors maybetter understand the matters before the meetings, and theBoard meeting time may be conserved and discussion timefocused on questions that the Directors may have on theBoard papers. Managers who can provide additional insightinto the matters to be discussed will be present at therelevant time during the Board meetings. The Directors arealso provided with the names and contact details of theCompany’s senior managers and the Company Secretary tofacilitate direct access to Management and the CompanySecretary.The Company Secretary is responsible to ensure that Boardprocedures are followed and that applicable rules andregulations, including requirements of the Companies Act,are complied with, with the assistance of the relevant seniormanagers. The Company Secretary attends all Boardmeetings.The Board takes independent professional advice as andwhen necessary to enable it or the independent Directors todischarge its or their responsibilities effectively. Subject tothe approval of the Chairman, Directors may seek and obtainindependent professional advice to assist them in theirduties. The cost of such advice is borne by the Company.The Board is committed to provide shareholders with abalanced and understandable assessment of the Company’sfinancial performance and position, and prospects.Remuneration mattersProcedures for Developing Remuneration PoliciesPrinciple 7: Formal and transparent procedure for fixing theremuneration packages of individual directorsLevel and Mix of RemunerationPrinciple 8: Remuneration of directors to be adequate andnot excessiveDisclosure of RemunerationPrinciple 9: Clear disclosure on remuneration policy,level and mix of remuneration, and the procedure for settingremunerationThe Remuneration Committee consists of threeindependent Directors whose responsibility is to reviewthe appropriateness, transparency and accountability toshareholders on remuneration issues of the Directors andsenior managers in the Company. The aim of the Committeeis to motivate and retain Directors and executives, and ensurethat the Company is able to attract and retain the best talentin the market in order to maximise shareholder value.Corporate governanceKeppel Land LimitedReport to Shareholders 200649

Corporate governanceNo member of the Committee or any other Director will beinvolved in deliberations in respect of any remuneration,compensation, option or any form of benefits to be grantedto him or her.Directors’ fees are established annually for the Chairman andthe other Directors. Additional fees are paid, whereapplicable, for participation in Board Committees. The levelof fees takes into account the size and complexity of theCompany’s operations, and the responsibilities and workloadrequirements of Directors.For the Managing Director and other senior managers, theCompany advocates a performance-based remunerationsystem that is highly flexible and responsive to the marketand the Company’s business units and individualperformances.The total remuneration mix for the Managing Director andsenior managers comprises three key components, namelyannual fixed cash, annual performance incentive and longtermincentive. The annual fixed cash component comprisesthe annual basic salary plus any other fixed allowances. Theannual performance incentive is tied to the Company’s andindividual manager’s performances. The long-term incentiveis presently in the form of share options or carried interest asthe case may be, which are granted based on individualmanager’s performance and contribution.To enable the Committee to carry out its duties, theCommittee has access to expert advice in the field ofexecutive compensation inside and/or outside the Company,where necessary. During the year, the Committee engagedexternal consultants to review the compensation frameworkand package for the Managing Director and senior managers.Several meetings were held between the Committee andthe external consultants in connection with this review.No employee of the Company and its subsidiaries was animmediate family member of any Director and whoseremuneration exceeded $150,000 during the financial yearended 31 December 2006. “Immediate family member”means the spouse, child, adopted child, stepchild, brother,sister and parent.The level and mix of remuneration of Directors and the Company’s top senior managers for the year ended31 December 2006 are as follows:(a) DirectorsBase/ Annual ShareFixed Performance Director’s Carried OptionRemuneration band and name of director Salary Incentive Fees Interest Granted*Above $2,000,000 to $2,250,000Kevin Wong Kingcheung 39% 49% – – 12%Below $250,000Lim Chee Onn – – 100% – –Thai Chee Ken – – 100% – –Khor Poh Hwa – – 100% – –Lim Ho Kee – – 100% – –Tsui Kai Chong – – 100% – –Lee Ai Ming – – 100% – –Tan Yam Pin – – 100% – –Niam Chiang Meng – – 100% – –Heng Chiang Meng – – 100% – –Edward Lee – – 100% – –Choo Chiau Beng – – 100% – –Teo Soon Hoe – – 100% – –50Corporate governanceKeppel Land LimitedReport to Shareholders 2006

(b) Top Senior ManagersBase/ Annual ShareFixed Performance Director’s Carried OptionsRemuneration band and name of senior manager Salary Incentive Fees Interest Granted*Above $1,250,000 to $1,500,000Loh Chin Hua 45% 27% – 28% –Above $750,000 to $1,000,000Ang Wee Gee 40% 43% – – 17%Above $500,000 to $750,000Choo Chin Teck 47% 32% – – 21%Tan Swee Yiow 43% 35% – – 22%Augustine Tan Wee Kiong 46% 34% – – 20%*The value of the share options granted is based on the Black-Scholes model with a 5-year maturity.Details of the KLL Share Option Scheme can be found onPages 168 to 169.Internal control and auditAudit CommitteePrinciple 11 : Establishment of Audit Committee with writtenterms of referenceThe Audit Committee consists of three independentmembers. These members bring along with them invaluableexperience and professional expertise relating to accounting,financial management and legal knowledge.The role of the Committee includes, inter-alia, reviewing theannual audit plan, internal audit process, adequacy of internalcontrols, interested person transactions, audit and other feesof external auditors. The Committee also reviews thequarterly and full-year results prior to their submission to theBoard for approval, and meets with the external and internalauditors at least once a year without the presence ofManagement. In addition, the Audit Committee Chairman willreview and investigate, as appropriate, any protected reportraised under the Company’s whistle-blower protection policy.The Committee has full access to and co-operation byManagement and full discretion to invite any Director orexecutive officer to attend its meetings, and reasonableresources to enable it to discharge its functions properly.The Committee held five meetings during the year. Themembers’ attendances at these meetings are disclosed onPage 46. The external and internal auditors, the Director(Corporate Services) and the Managing Director wereinvited to attend the meetings of the Committee. TheCompany’s internal auditors and external auditors reporttheir audit findings and recommendations independentlyto the Committee.During the year, the Committee performed independentreviews of the financial statements of the Company beforethe announcements of the results. The reviews included anassessment of the quality of key accounting principlesapplied and management judgements which have majorimpact on the financial statements. On a quarterly basis,Management reported to the Committee all interestedperson transactions (“IPTs”) in accordance with theCorporate governanceKeppel Land LimitedReport to Shareholders 200651

Corporate governanceCompany’s shareholders’ mandate for IPTs. The IPTs wereaudited by the internal auditors on a semi-annual basis andtheir findings reported to the Committee.The Committee reviewed the internal auditors’ and externalauditors’ plans to ensure they are sufficient for the review ofthe significant internal controls of the Company. TheCommittee also reviewed the independence and objectivityof the external auditors, which included the nature andextent of their non-audit services to the Company.Internal ControlsPrinciple 12 : Sound system of internal controlsThe Audit Committee reviews the reports submitted by theexternal and internal auditors relating to the effectiveness ofthe Company’s material internal controls, including financial,operational and compliance controls, risk management, andrisks of fraud and irregularities. The Committee also reviewsthe effectiveness of the actions taken by Management onthe recommendations made by the internal and externalauditors in this respect. The Board is satisfied that there areadequate internal controls in the Company.The system of internal controls established by the Companyis designed to manage and minimise the risk of failure inachieving Company’s goals and objectives. There are clearpolicies and procedures in ensuring adequacy of controls andeffective management of risks. However, it should berecognised that such a system is designed to providereasonable assurance, but is not an absolute guarantee,against material misstatement or loss.The Company has put in place a shareholder value-basedinternal control system in areas such as financial, operationaland compliance controls, and risk management. The principalaim of the internal control system is the management ofbusiness risks with a view to safeguarding shareholders’investments and the Company’s assets. The systemincludes, inter-alia, enterprise risk management and internalauditing. The Board monitors the Company’s risks throughthe Board Risk Committee, Audit Committee and GroupInternal Audit.The Company also has a whistle-blower protection policy toencourage the reporting in good faith of suspectedreportable conduct by establishing clearly definedprocesses through which such reports may be made withthe confidence that employees and other persons makingsuch reports will be treated fairly and, to the extentpossible, protected from reprisal.Board Risk CommitteeThe Company’s Board Risk Committee, which consists offive independent Directors, meets regularly at least fourtimes a year to review and guide Management on theGroup’s risk profile, the Company’s processes to identify andmanage significant risks, risk mitigation strategies and riskpolicies. The Committee is supported by Enterprise RiskManagement Committee (“ERMC”) comprising all the headsof department. ERMC reports to the Committee quarterly toensure that the actions to mitigate or reduce the risks thathave been identified have been implemented, and to reporton the effectiveness of the actions or improvements to therisk mitigating actions. The ERMC also reports to the BoardRisk Committee quarterly on the mitigating actions taken tocontrol the top 11 risks of the Group.Internal AuditPrinciple 13: Independent internal audit functionThe Company has its own in-house Internal AuditDepartment (“Group Internal Audit”) that is independent ofthe activities it audits. Group Internal Audit reports directly tothe Chairman of the Audit Committee and administratively tothe Director (Corporate Services).The key role of Group Internal Audit is to assist the AuditCommittee to ensure that the Company maintains anadequate system of internal controls by periodic reviews ofmaterial controls and procedures to test their effectiveness.Group Internal Audit is committed to meet or exceed theStandards for the Professional Practice of Internal Auditingset by The Institute of Internal Auditors Inc, which has itsheadquarters in USA, and has incorporated them into itsaudit practices.Using a risk-based audit methodology, Group Internal Auditplans its internal audit assignments annually in consultationwith, but independent of, Management. Its plan is submittedto and approved by the Audit Committee. Based on the risk52Corporate governanceKeppel Land LimitedReport to Shareholders 2006

assessment conducted by Group Internal Audit, activitieswithin the Group are reviewed at appropriate intervals andwith greater emphasis on higher risk activities. Internal auditplans are also aligned with the Company’s risk managementprogramme. The aim is to ensure that an effective andefficient control environment is in place to manage thoserisks exclusive to a particular business unit in addition tothose that may be relevant on an enterprise-wide basis.A comprehensive progress report is presented by GroupInternal Audit to the Audit Committee at each scheduledmeeting. All audit reports are distributed to the AuditCommittee, the Chairman of the Board, the ManagingDirector, the Director (Corporate Services) and other relevantsenior management.The Audit Committee ensures that the internal audit functionhas adequate resources and appropriate standing within theCompany. On an ongoing basis, it assesses the effectivenessof the internal auditors, such as its scope of work and qualityof audit reports.Communication with shareholdersPrinciple 14: Regular, effective and fair communication withshareholdersPrinciple 15: Greater shareholder participation at annualgeneral meetingsIn line with the continuous disclosure obligations of theCompany, pursuant to the Listing Rules of the SGX-ST andSingapore’s Companies Act, the Board’s policy is thatshareholders are informed of all major developments thatimpact on the Company. The Company had in operationduring the year, a continuous disclosure process to ensurecompliance with the Company’s continuing disclosure andreporting obligations.The Company believes that it should engage in regular,effective and fair communication with shareholders. For itsefforts at good corporate disclosure, the Company has wonthe Gold Award for Best Annual Report in the category forcompanies with market capitalisation of $500 million or moreat the inaugural Singapore Corporate Awards held in March2006. The Company ranked fourth out of the 621 companiessurveyed in the 2006 Business Times CorporateTransparency Index which measures the quality of disclosureby companies which have released financial results to theSGX-ST in 2006. The Company was also the runner-up forThe Most Transparent Company (Properties category) at theSIAS (Singapore Investors Association of Singapore)Investors’ Choice Awards 2006.In addition, the Company’s top management takes an activerole in investor relations, meeting local and foreign fundmanagers regularly as well as participating in roadshows andconferences overseas. The Company has a dedicatedInvestor Relations and Research Department which meetskey institutional investors and analysts on a regular basis, aswell as answers queries from shareholders.Pertinent information is communicated to shareholders on atimely basis. Where there is inadvertent disclosure made to aselected group, the Company will make the same disclosurepublicly to all others as soon as practicable. Communicationis made through SGX-ST announcements and press releaseson financial results and major developments of the Company,the Company’s summary financial reports and annual reports,notices of and explanatory circulars for annual generalmeetings and extraordinary general meetings, and otherdisclosures and announcements to SGX-ST and the press, aswell as through the Company’s website at http://www.keppelland.com.sg from which the shareholders can accessinformation of the Company.The website provides, inter-alia, corporate announcements,press releases, annual reports, and profiles of the Group. TheCompany’s ten-year financial profile is also provided. Whereappropriate, queries over the website are also addressed.The annual general meeting is the principal forum fordialogue with shareholders. At each annual general meeting,the Board encourages shareholders to participate in thequestion and answer session. The Chairman and, whereappropriate, the Managing Director respond to shareholders’questions. The Chairmen of the Board Committees and theexternal auditors are required to be present at the meeting toassist in addressing any relevant query from the shareholders.Corporate governanceKeppel Land LimitedReport to Shareholders 200653

Corporate governanceEach item of special business included in the notice of themeeting is accompanied by an explanation for the proposedresolution. Separate resolutions are proposed forsubstantially separate issues at the meeting, and theChairman declares the number of proxy votes received forand against the resolutions.The Company also prepares detailed minutes of generalmeetings, which include substantial comments or queriesfrom shareholders and responses from the Board andManagement. These minutes are available to shareholdersupon request.Security transactionsThe Company has issued a policy on dealings in thesecurities of the Company and its listed subsidiaries to itsDirectors and senior executives, setting out the implicationsof insider trading and guidance on such dealings. It hasadopted the Best Practices Guide on Dealings in Securitiesissued by the SGX-ST. The Company prohibits its Directorsand employees from trading in the Company’s securities forthe period commencing two weeks before theannouncement of quarterly results, and the periodcommencing one month before the announcement ofyear-end results.Interested person transactionsDisclosure of interested person transactions is set out onPage 55 in the annual report. When a potential conflict ofinterest arises, the Director concerned takes no part indiscussions nor exercises any influence over other membersof the Board.54Corporate governanceKeppel Land LimitedReport to Shareholders 2006

Interested person transactionsAggregate Value of all InterestedAggregatePerson Transactions duringValue of allthe Period under ReviewInterested Person(excluding Transactions less Transactions Conductedthan $100,000 and Transactions under Shareholders’Conducted under Shareholders’ Mandate Pursuant toName of Interested PersonMandate Pursuant to Rule 920 Rule 920 of SGX-ST’sof SGX-ST’s Listing Manual). Listing Manual.(a) Property transactions –Keppel Corporation Limited Group:2006 2005 2006 2005$’000 $’000 $’000 $’000Project and development management fees – – 1,266 338Property management fees – – 939 430Marketing commission – – 2,082 2,961Management and support services – – 1,244 1,749Asset management fees – – 2,667 –Rent expense – – (1,293) –– – 6,905 5,478(b) Other services and products –Keppel Corporation Limited Group:Treasury – interest income – – 6,767 3,655Treasury – interest expense – – (49,924) (36,538)Management fees paid – – (3,174) (2,971)Other services – – (559) (788)Temasek Group:Compensation received from Capitaland Retail Management Pte Ltdon termination of Parco Bugis Junction retail mall advisory servicesagreement 2,161 – – –Management fee paid (228) – – –Sale of Parco Bugis Junction to CapitaMall Trust and the Company’spurchase of the office subsidiary in Bugis Junction – 148,000 – –(c) Transactions entered into by the Group with Directors of theCompany and Directors of Keppel Corporation Limited –Consideration for sale of units in Singapore and overseas residentialdevelopments to Directors of the Company and the Directors ofKeppel Corporation Limited and their immediate family membersat prevailing prices applicable to third parties 41,265 779 – –The transactions in (a) and (b) above are entered into in the normal course of business based on negotiated arm’s length prices.Interested person transactionsKeppel Land LimitedReport to Shareholders 200655

Investor relationsInvestors’ interest in Keppel Land hasgrown due to the Company’s participationin high profile developments in Singapore,the listing of K-REIT Asia and strongfundamentals supporting growth ofresidential markets in the region.Fostering strong relationships with stakeholdersKeppel Land places great importance in achieving andadhering to best-in-class practices in corporate governanceand disclosure. In line with this guiding principle, topmanagement makes great efforts to reach out to investorsby constantly engaging in proactive, timely, open andclear communication with the investment community atlarge. Such effective ways of communication will enableinvestment professionals such as analysts and fundmanagers as well as local and foreign investors to betterunderstand the Company’s business models and growthstrategies, and to allow management to better managemarket perceptions and expectations, and to address issuesof concern to investors.Strong investors’ interest driven by positive developmentsTop management and the investor relations team at KeppelLand had a busy and fruitful year in 2006. The number ofmeetings held with both buy-side and sell-side analysts aswell as fund managers has increased significantly duringthe year. Investors’ interest in Keppel Land has grown dueto the Company’s participation in high-profile developmentssuch as the Marina Bay Financial Centre (MBFC) in the newdowntown and the iconic waterfront residential developmentReflections at Keppel Bay, and the establishment and listingof K-REIT Asia, a commercial real estate investment trust(REIT) sponsored by the Company.In the region, strong fundamentals have supported sales ofKeppel Land’s residential developments as homeownershipaspirations are underpinned by economic growth, favourabledemographics, a growing middle class and urbanisation.The revival of the Singapore residential and office markets, andinflux of funds from the US and Europe into Asian real estatehave also sparked strong interest among investors in propertycompanies. In total, management had more than 180 meetingsin Singapore with analysts and fund managers in 2006.Garnering support for REIT establishmentPrior to the listing of K-REIT Asia in April 2006, Keppel Landmade special efforts to explain to its shareholders andinvestors the rationale for setting up the commercial REITand distributing the units to shareholders.56 Investor relationsKeppel Land LimitedReport to Shareholders 2006

K-REIT Asia’s investor relations activities started afterits Introductory Document was despatched to KeppelLand’s shareholders at end-March 2006. A website wasset up to inform and educate as well as serve as a meansof communication with the public and the investmentcommunity. After obtaining shareholders’ approval atthe Extraordinary General Meeting (EGM) in April 2006,management visited Hong Kong to meet up with investorsand hosted a luncheon with fund managers in Singapore.Following the listing of K-REIT Asia on 28 April 2006,more meetings were organised with analysts specialisingin REIT coverage. After K-REIT Asia’s first resultsannouncement in July 2006, management made anothertrip to Hong Kong in August 2006 to promote K-REIT Asia.This was followed by a luncheon for institutional investorshosted by an international brokerage in September 2006.After the release of third quarter’s results in October 2006,Keppel Land and K-REIT Asia took part in the MorganStanley Asia Pacific Summit and Merrill Lynch REIT/RealEstate Conference in November 2006. To close the year,Keppel Land and K-REIT Asia participated in the UBS GlobalReal Estate Conference in London. In total, managementparticipated in four roadshows and investors’ meetings inthe UK, Europe and Hong Kong, and met up with close to100 fund managers and investors.Regular communication and dissemination of informationBriefings to the press and analysts are held at the Company’sfull-year and half-year results announcements. In addition tocommunication via telephone and email as well as one-ononemeetings, management also hosts luncheon meetingswith local analysts and fund managers post-announcementof quarterly financial results. Conference calls with foreignfund managers are also usually carried out followingquarterly results announcements or upon request. TheCompany disseminates all financial announcements, pressreleases and presentation slides via masnet to the SingaporeExchange and concurrently on its corporate website(www.keppelland.com.sg).Feedback from meetings with analysts, fund managers andinvestors as well as research reports written by analysts arecirculated to senior management. Such information helpssenior management understand investors’ perceptions, andserve as reference when they undertake business decisions.The Annual General Meeting (AGM) is an annual event forKeppel Land’s shareholders, Board of Directors and seniormanagement to come together for an interactive session ofopen discussion and dialogue. At the Company’s AGM andEGM, which were held on 28 April 2006 at InterContinentalSingapore and well attended by many shareholders andpublic observers, all resolutions were duly passed.Visits to project sites reinforce understanding of marketsDuring the year, the investor relations team also arrangedvisits for groups of local and foreign fund managers andanalysts to visit Park Infinia at Wee Nam and Caribbean atKeppel Bay in Singapore, as well as 8 Park Avenue, TheSeasons and The Waterfront in China, and to meet thelocal management on the ground. A special presentationon MBFC (Phase I) was made to two groups of investorsin November 2006 after the Morgan Stanley Asia PacificSummit. Simultaneously, the presentation was disseminatedto the Singapore Exchange as well as posted on KeppelLand’s website. Such visits help analysts and fund managersto understand the respective markets and appreciate thequality of the Company’s properties.Launch of Chinese website to reach out to a widercommunityKeppel Land’s corporate website is extensively used by theinvestment community and the general public to access acomprehensive body of information including annual reports,press releases, presentation slides and property portfolioinformation. The corporate website was revamped duringthe year to improve its functionality, and to make it easier forusers to navigate in their search for information. Keppel Landalso launched a Chinese website in early 2007 to reach outto the Chinese community.Accolades for good corporate governance practicesKeppel Land’s emphasis on attaining a high level of corporatetransparency and disclosure continues to be recognised asevidenced by several prestigious awards and recognition forits good corporate governance practices.Investor relationsKeppel Land LimitedReport to Shareholders 200657

Investor relationsKeppel Land continues to reach outto investors by engaging in proactive,timely and open communication withbriefings to the press and analysts, aswell as meetings with local and foreignfund managers.In March 2006, Keppel Land won the Gold Award for BestAnnual Report for companies with market capitalisation of$500 million or more at the inaugural Singapore CorporateAwards organised by The Business Times and UBS, andsupported by the Singapore Exchange.At the Investors’ Choice Award presentation organised bythe Securities Investors Association (Singapore) held inSeptember 2006, Keppel Land took the Runner-up Award forthe Most Transparent Company under the property category.Keppel Land is the only property developer among the top10 in the Business Times Corporate Transparency Index. Forits transparency in disclosure on its FY2005 results, KeppelLand was ranked fourth among 621 publicly-listed companiesin Singapore, which was a significant improvement over theprevious year when the Company was rated among the top20 of 644 companies for its FY2004 results.Growing diversity of institutional shareholder baseAs Keppel Land broadens its footprint in Asia, itsshareholder base has also likewise expanded in terms ofsize and geographical diversity. The Company’s institutionalshareholder base now spans across 26 countries worldwide,up from 22 countries in 2005, as an increasing number offunds from North America, Europe and even Asia maketheir way into Singapore given its growing significance as aninternational business and financial hub.In its continuous efforts to reinforce investors’ confidencein the Company and to cultivate new investors, managementhas made several trips overseas to meet up with institutionalinvestors in the US, the UK, Europe and Hong Kong. This hashelped to expand the Company’s institutional shareholderbase to over 30% of its total shareholding in 2006. In termsof geographical distribution, Keppel Land’s institutionalshareholding structure remains well spread out across theUK, Europe, the US and Asia. Institutional investors basedin the UK, Hong Kong, the US and Singapore dominated,with each accounting for between 19% and 26% of thetotal institutional shareholding. Keppel Land engaged theservice of a reputed shareholder register specialist tocarry out this analysis.A greater understanding of the Company’s institutionalshareholder structure will enable management to tailor itsinvestor relations efforts to encourage existing investors tostay invested and adopt a longer term investment horizon,and to better target and attract prospective investors.Achieving higher returns to shareholdersBy distributing K-REIT Asia’s units to shareholders,Keppel Land has effectively distributed all $53.2 millionof its outstanding Section 44A tax credits.In seeking to maximise returns to shareholders, Keppel Landhas consistently raised its dividends per share over theyears. The Company has proposed a final one-tier tax-58 Investor relationsKeppel Land LimitedReport to Shareholders 2006

Market capitalisation as at end of year$ million5,0004,0003,000CAGR = 64%2,6174,963Total shareholder returns%1008066.960402041.463.484.12,0001,0006871,1221,6020-20020022003200420052006-40-602002(42.2)2003200420052006exempt dividend of 6 cents per share for the year ended31 December 2006, compared with a final one-tier dividendof 5 cents per share for the previous year. Going forward,Keppel Land will continue to work towards rewardingshareholders with higher dividends, subject to the levelof the Company’s profitability and capital requirements.Backed by good economic performance in Asia, the robustrebound in regional property markets, strong liquidity flows inthe region and positive news flows on the Company, KeppelLand’s shares have been well-supported by investors andits share price has appreciated significantly by about 83% in2006, outperforming the Straits Times Index and the All-Singapore Equities Property Index which rose about 26%and 62% respectively. Coupled with higher dividend declaredfor financial year 2006, total shareholder returns hit 84% in2006 compared with 63% for 2005 and 41% for 2004.Following the sale of four office buildings to K-REIT Asia inApril 2006 and in line with higher profitability for the year,Keppel Land achieved a higher return on equity (ROE) of12.8% for 2006, a significant improvement from 9.5% for2005 and 8.6% for 2004. While the Company has one of thehighest ROEs among property companies in Singapore, it willcontinue to work at improving its ROE in the years ahead.Singapore Equities Index, All-Singapore Equities PropertyIndex, Singapore Equities Mainboard Index, the UOB BlueChip Index, the FTSE EPRA/NAREIT Global Real EstateIndices and the FTSE/Asean Index. The Company is amember of the European Public Real Estate Association.In October 2006, Keppel Land joined as founder and chartermember of Investor Relations Professionals Association(Singapore) which provides a platform to foster the bestpractices and enhance ethical and professional standards ininvestor relations, adding value to the relationship betweenthe Singapore Exchange and the investment community.Such linkages help the Company to keep abreast of bestpractices in corporate governance and investor relations.2007 will be another active year for investor relations inKeppel Land with the launch of the iconic Reflections atKeppel Bay and the development of the second phase ofMBFC announced in February. Beyond Singapore’s shores,regional developments also prove promising for China,India, Vietnam and Indonesia.Keppel Land is a key component stock on various Singaporeand international stock indices such as the Morgan StanleySingapore Free Index, the Straits Times Index, the All-Investor relationsKeppel Land LimitedReport to Shareholders 200659

Awards and accoladesRecognition garnered in Singaporeand overseas attests to Keppel Land’squality hallmark.Corporate awardsEuromoney Award for Excellence in Real Estate 2006Keppel Land was ranked among the Top 10 Asian companiesin the prestigious Euromoney Award for Excellence in RealEstate 2006.Corporate transparency awardsGold Award for Best Annual Report (1)Keppel Land won the prestigious Gold Award for BestAnnual Report in the category for companies with marketcapitalisation of $500 million or more, at the inauguralSingapore Corporate Awards held in March 2006. Organisedby The Business Times and supported by the SingaporeExchange, the award recognises the most outstandingannual report based on criteria such as transparency,adequacy of disclosure and presentation of information.Ranked fourth out of 621 companies in the BusinessTimes Corporate Transparency IndexKeppel Land was the only property developer in the Top10 among 621 companies in the 2006 Business TimesCorporate Transparency Index, which ranks companies fortransparency in disclosures in their financial results.SIAS Most Transparent Company AwardKeppel Land took the Runner-up Award for the MostTransparent Company under the property category atthe SIAS Investors’ Choice Award Presentation held inSeptember 2006. This is the seventh time running that theCompany has won the award. Organised by the SecuritiesInvestors Association (Singapore), companies nominatedby fund management firms, stockbroking houses and themedia were assessed over a year, based on criteria suchas timeliness of corporate disclosures, frequency, clarityand substantiality of their announcements, as well as theirwillingness to reveal information to analysts and the media.Recognition for excellence in product qualityin SingaporeTwo FIABCI Prix d’Excellence 2006 Awards (2)Two of Keppel Land’s projects won awards at the prestigiousFIABCI Prix d’Excellence 2006 Awards. Caribbean at KeppelBay was winner in the residential category and HarbourFrontOffice Towers was runner-up in the office/industrial category.FIABCI is the French acronym for the International RealEstate Federation which organises the competition torecognise the best in world real estate developments.The FIABCI Prix d’Excellence Awards, often regardedas the Oscars of the real estate industry, are judgedby an international panel of experts on criteria includingconstruction, brokerage, facilities management,marketing strategy, impact on the local communityand benefits to the environment.Green Mark Gold Award for The TresorThe Tresor condominium at Duchess Road received theGreen Mark Gold Award 2006 from the Building andConstruction Authority. Aimed at raising environmentalawareness among developers and contractors from projectconceptualisation to design to construction stages, it involvesassessment in the areas of energy and water efficiency,project development and management, indoor environmentalquality and environmental innovations.Caribbean at Keppel Bay bagged Gold Award(Implementation) and Silver Award (Maintenance) atLandscape Industry Association (Singapore) Awards ofExcellence 2006At the Landscape Industry Association (Singapore) Awardsof Excellence 2006, Caribbean at Keppel Bay received theGold Award in the Implementation – residential category forthe quality of plant materials used, installation techniquesand craftsmanship. It also bagged the Silver Award in theMaintenance – residential category for the condition of theplants and cleanliness of the site.Merit Award at Construction Excellence 2006 forCaribbean at Keppel BayCaribbean at Keppel Bay obtained the Merit Award forConstruction Excellence 2006 from the Building andConstruction Authority. The award accords recognition toconstruction projects which have demonstrated performanceexcellence in Singapore in terms of high standards ofmanagement, technical expertise and workmanship.Recognition for excellence in product quality overseasVilla Riviera named Asia’s Best Metropolitan VillaVilla Riviera in Shanghai, China was named Asia’s BestMetropolitan Villa in 2006 by renowned international60Awards and accoladesKeppel Land LimitedReport to Shareholders 2006

1 23agencies including United Nations Residential EnvironmentDevelopment Promotion Association and International LandAgent Association.The Waterfront ranked among most popular and bestselling projectsThe Waterfront in Chengdu, China received numerousawards in 2006, including Top 30 Brands in ChengduProperty Market presented by Chengdu StatisticsBureau and Top 20 Best Selling Residential Projectsin Chengdu by Chengdu Property Association andChengdu Housing Bureau.The Botanica listed among best selling projects (3)In 2006, The Botanica won the Top 20 Best SellingResidential Projects in Chengdu by Chengdu PropertyAssociation and Chengdu Housing Bureau. The ChinaProperty Developers Association also named the developerof The Botanica as one of the Top 10 Developers in Chengdu.International accolades for Spring City Golf &Lake Resort (4)In Kunming, China, Spring City Golf & Lake Resort wasawarded the International Star Award for Quality – GoldCategory by Business Initiative Directions, a privateorganisation from Madrid, Spain which recognises4companies throughout the world that further theirreputation and position by implementing and promotinga quality culture.The resort was also named China’s Leading Golf Resort forthe second consecutive year at the 12 th World Travel Awards2006. Voted independently by 156,000 travel agencies andprofessionals from 140 countries, the award recognisesprojects which set new benchmarks in the areas of customerservice, technology, operational efficiency, product and style.Other accolades garnered in 2006 include the Best Golf Coursein Asia and Best Golf Course in China by Asian Golf Monthly;as well as My Favourite Golf Club in China and Best CaddyService Golf Club in China by China Golf Awards. The twogolf courses in the resort were also voted first and secondin the list of Top 10 Golf Courses in China by readers and apanel of judges from China Golf magazine respectively.Ria Bintan Golf Club as Best Golf Course in IndonesiaRia Bintan in Indonesia was ranked the Best Golf Course inAsia (1 st runner-up) by Asian Golf Monthly. The magazine alsonamed Ria Bintan as the Best Golf Course in Indonesia forthe second consecutive year in 2006.Awards and accoladesKeppel Land LimitedReport to Shareholders 200661

Special feature

Waterfronthomes –Living thegood life

Special featureWaterfront homes – Living the good life“Reflections is a compositionof an urban scale, on the water,on the beautiful bay. It’s acommunity of more than athousand apartments, so it’sreally a social environment,it’s a neighbourhood… …It’s a very unique one. I don’tthink I’ve ever designed anythinglike it. On a simple architecturallevel, it’s the only project everdone with a double curvature.”Daniel LibeskindWaterfront living has always been the premier choice forresidence. Key cities like London, New York, Manhattan andShanghai have all sprouted up next to water bodies. Some ofSingapore’s oldest settlements were also around the mouthof the Singapore River.Today, waterfront living has become a lifestyle of choice.From the French Riviera to the Palm Islands in Dubai,waterside living epitomises class and prestige. It exudes thatspecial lifestyle appeal to both homeowners and investors.The panoramic views and the calming effect of surroundingwaters further offer city-dwellers a much-needed respitefrom the hustle and bustle of urban life.Pioneer in developing waterfront homesRecognising the potential of this market, Keppel Land isamong the pioneers of waterfront housing in Singapore.In the early 1990s, Keppel Land was among the first developersto transform the narrow strip of land occupied by shipyards,warehouses and a flour mill at Tanjong Rhu into primewaterfront real estate. Its condominium projects, CasuarinaCove and Pebble Bay, continue to command a premium inresale prices and rentals even after more than 10 years sincethey were first launched for sale.Capitalising on opportunities in this niche market, Keppel Landembarked on the redevelopment of the historic 30-ha formerKeppel Harbour site into a landmark, world-class waterfrontprecinct called Keppel Bay, comprising commercial, residential,marina as well as recreational components.Keppel Land has a 30% stake in the residential componentand is also the project manager. The remaining 70% stake isheld by parent company Keppel Corporation.64 Special featureWaterfront homes – Living the good lifeKeppel Land LimitedReport to Shareholders 2006

Caribbean at Keppel Bay, a FIABCI-award winning condominiumand the first residential development in the precinct, hascompletely sold all 801 launched units, with 168 units keptas corporate residences.Building luxury lifestyle homesDrawing on the expertise and experience gained from itshead-start in developing waterfront homes, Keppel Land hasnow raised the ante with iconic, luxury lifestyle homes thatdynamically transform Singapore’s skyline and capture theimagination of local and international buyers.Marina Bay Residences, the residential component of theMarina Bay Financial Centre, is testimony to this ability. All428 units were snapped up within three days of its previewin December 2006 and a record price of $3,450 psf was setfor its super penthouse. A third of the residences was boughtby international buyers, hailing from China, India, the UK,Europe and the US, amongst others.Designed by world-renowned architect Kohn Pederson FoxAssociates of New York, the luxury homes soaring 55 storeyswere designed to take full advantage of the strategic MarinaBay location. Centred in Singapore’s latest ‘live, work and play’destination at the new downtown, Marina Bay Residences isplaced at the heart of a hive of activities with the Marina BaySands Integrated Resort, the 165-m high Singapore Flyer giantobservation wheel, and three distinctive Gardens by the Baywaterfront parks ringing the Marina Barrage freshwater reservoir.Iconic homes at Reflections at Keppel BayBuilding on the resounding success of Marina Bay Residences,Keppel Land is scaling greater heights. Its upcoming Reflectionsat Keppel Bay condominium development further manifeststhe Group’s thrust into the high-end waterfront residentialmarket, providing potentially attractive earnings stream forthe Group over the next few years.The second project within the Keppel Bay precinct, Reflections atKeppel Bay is an iconic piece of art with its stunning architecture.Designed by world-celebrated master architect Daniel Libeskind,the genius behind the master planning of New York’sFreedom Tower project and whose notable works includethe Jewish Museum in Berlin, the Museum Residences inDenver and Aura in Sacramento, Reflections at Keppel Bayis the epitome of premier waterfront living in Singapore. AsLibeskind’s first residential showcase in Asia, the projectalso presents a breakthrough in the design of residentialdevelopments in the region.Featuring six dramatically-curved, glass-clad skyscrapers of24 and 41 storeys linked by skybridges, and 11 blocks ofsix- to eight-storey villa apartments, Reflections at Keppel Bayoffers a total of 1,129 luxury homes. Set amidst a 100,000-sfreflecting pool, the high-rise towers are designed to rise like‘beacons of light’, while the low-rise villa blocks form a ‘necklaceof pearl-like buildings’ serving as the residential gateway tothe bay.Combining heroic forms and classical elegance in itsarchitectural design, every detail and aspect of the designoptimises views of the sea, the greenery from Mount Faber,Keppel Club Golf Course and Labrador Park, as well asSentosa Island and its upcoming integrated resort featuringAsia’s first Universal Studios theme park outside of Japan.Adding to its attraction is its close proximity to the centralbusiness district, and walking distance to the HarbourFrontMass Rapid Transit station and VivoCity, Singapore’s largestretail mall.Sitting on approximately 904,000 sf of land with an extensiveshoreline of 750 m, Reflections at Keppel Bay featuresapartments with sizes ranging from 700 sf studio apartmentsSpecial featureWaterfront homes – Living the good lifeKeppel Land LimitedReport to Shareholders 200665

Special featureWaterfront homes – Living the good lifeto 3,500 sf four-bedroom apartments. There are also 35penthouses ranging from 3,600 sf to a 13,300 sf six-bedroomsuper penthouse.When completed in 2012, Reflections at Keppel Bay, withits iconic homes offering a unique lifestyle complete with afull range of sea-fronting amenities, is another Keppel Landdevelopment set to put Singapore on the global scene forluxury waterfront homes.To be launched in early April 2007, Reflections at Keppel Bayhas already attracted strong interest from international buyersand investors. Apart from traditional markets like Hong Kongand Indonesia, enquiries have been received from the MiddleEast, India and China.World-class Marina at Keppel BayWaterfront living is more than location. It heralds the ultimatelifestyle when there is a marina right at your doorstep.Adding value to the lifestyle aspirations of Keppel Bay’sdiscerning homeowners is Marina at Keppel Bay.Homeowners of properties within the Keppel Bay precinctwill enjoy 10 years of free membership and five years’ freesubscription to the marina.Located on the exclusive Keppel Island, Marina at Keppel Bayis the strategic gateway for cruising, fishing or island hopping.It will feature world-class facilities which can accommodatea total of 170 yachts, including five berths for mega yachtsbetween 100 and 200 ft long. Designed at a cost of about$30 million, Marina at Keppel Bay will initially house 75 berths.To be ready in December 2007, exclusive lifestyle facilitiesat the marina include a clubhouse with a members’ lounge,gourmet restaurants, recreational amenities and charterservices providing access to neighbouring islands.The marina’s twinning association with Nongsa Point Marinain the Riau Islands, in which Keppel Land has a 17% stake,will attract Keppel Bay homeowners and boat owners fromthe region and beyond to leverage on facilities and amenitiesfor a wider range of sea and land activities.66Special featureWaterfront homes – Living the good lifeKeppel Land LimitedReport to Shareholders 2006

Reflections at Keppel BayLandmark cable-stayed bridgeTo complete the picture, a 245-m long cable-stayed bridgewill link Keppel Island to the mainland. A new landmark inSingapore’s southern waters, the bridge promises to bea glowing attraction in this waterfront precinct when it isilluminated at night by striking mood lighting.To be completed in mid-2007, the dual carriageway bridgewith pedestrian walkways will allow visitors to enjoy picturesqueviews of the surroundings.Keppel Bay – a true waterfront precinctIn the pipeline within the Keppel Bay precinct are three moresites for future development, which will yield more than 600exclusive homes. These include a 101-unit condominium on a471,400 sf plot on Keppel Island. The other two condominiumplots are located on the mainland; one is 417,600 sf in size with307 units, while the other, a joint venture with Mapletree, is307,800 sf with 234 units.With meticulous efforts put into the master plan, designand detailing to create exclusive waterfront developments,Keppel Bay presents the best in urban and waterfrontlifestyles to its international community of buyers.Located in the new world-class waterfront business andlifestyle hub in southern Singapore, Keppel Bay plays anintegral part in developing the area into a vibrant district.It will complement the attractions of Sentosa Island and theintegrated resort; surrounding leisure and entertainmenthotspots like The Jewel Box and St James Powerhouse;and VivoCity, Singapore’s largest retail and lifestyle mall.Along with the government’s plans to develop theSouthern Islands into a premium resort for wealthytourists, these developments will underscore the valueand appeal of Keppel Bay in the international arena andplace Singapore on the world’s prime real estate mapfor premier waterfront residences.Special featureWaterfront homes – Living the good lifeKeppel Land LimitedReport to Shareholders 200667

Special featureWaterfront homes – Living the good lifeCaribbean at Keppel BayRedefining waterfront living overseasAsia’s strong economic growth has resulted in risingaffluence and a fast growing middle class with stronghomeownership aspirations.Capitalising on these favourable trends and a lack of goodquality housing to match the rising demand, Keppel Landcontinues its expansion drive in the residential sector intonew countries, cities and segments. In this respect, itswaterfront properties and well-planned integrated townshipsoverseas provide quality homes that appeal to discerninghomebuyers and investors.In Chengdu, China, the 1,143-unit The Waterfront condominiumdevelopment commands a 150-m wide frontage of theFunan River, with the Sichuan University Campus and thehistoric Wang Jiang Lou Garden on the opposite bank. Followingthe Chengdu municipal government’s river revitalisationproject from 1993-97, Funan River, which flows 47 km throughChengdu city, is today a new attraction.Coupled with its modern architecture, lush landscaping and ahost of resort-style facilities including a rooftop garden abovethe clubhouse to take in the scenic Funan River, The Waterfrontattracted local middle to upper-middle homebuyers, as well asforeign buyers. It is 95% sold as of end-February 2007, withthe latest achieved price of RMB 6,750 psm outperformingthe city’s average price of RMB 4,256 psm.In Ho Chi Minh City (HCMC), Vietnam, Villa Riviera was soldout by January 2007, less than a year since its public launchin April 2006. With its strategic location by the Saigon Riverin An Phu Ward in prime District 2, Villa Riviera has beenhailed as HCMC’s finest waterfront address. A total of 101villas are aesthetically laid out over 6-ha of sprawling land setwithin a well-established residential neighbourhood that isthe preferred address of affluent locals and expatriates.Designed as an urban sanctuary, Villa Riviera attracted theupper-income market with its quality design, exceptionalinvestment value and host of resort-style facilities.68Special featureWaterfront homes – Living the good lifeKeppel Land LimitedReport to Shareholders 2006

Pebble BayKeppel Land’s premier waterfrontresidences will contribute tothe remaking of Singapore as avibrant global city, benchmarkquality homes and transformcommunities in Asia.Reflections at Keppel BayOn a larger scale, Keppel Land is jointly developing SaigonSports City residential township which is also located in theprime An Phu Ward in District 2 in HCMC. Sitting on a 64-hasite, the township enjoys excellent frontage of the scenicSaigon River.Catering to the upper income market, Saigon Sports City ispositioned to meet the growing demand for well-plannedresidential estates in the city and is the first to introduce a’healthy lifestyle’ concept in Vietnam.To be developed in phases, Saigon Sports City will be a fullyintegrated development comprising high-rise condominiums,landed housing, retail centres, recreational facilities, aswell as supporting commercial complexes and a 14-ha areadesignated for public sports facilities. About 100 units fromPhase One is scheduled for launch in late 2007.Keppel Homes on the global mapKeppel Land’s waterfront homes, whether in Singapore oroverseas, promise a unique experience. Developments likeCaribbean at Keppel Bay and Pebble Bay have successfullyredefined waterfront living and transformed industrial areaswith old shipyards and godowns or warehouses into thrivingwaterfront residential enclaves.New projects like Marina Bay Residences, Reflections atKeppel Bay and future developments at the Keppel Bayprecinct in Singapore as well as Saigon Sports City inHCMC will impress homebuyers across Asia with Keppel’squality hallmark.More significantly, Keppel Land’s premier waterfront residenceswill contribute to the remaking of Singapore as a vibrantglobal city, benchmark quality homes and transformcommunities in Asia.Special featureWaterfront homes – Living the good lifeKeppel Land LimitedReport to Shareholders 200669

Special featureWaterfront homes – Living the good lifeGrowth of affluent buyers1. HNWI globalCAGR1996-HNWI Global 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2005Financial Wealth (US$ trillion) 16.6 19.1 21.6 25.5 27.0 26.2 26.7 28.5 30.7 33.3 8.0%Number of HNWIs (million) 4.5 5.2 5.9 7.0 7.2 7.1 7.3 7.7 8.2 8.7 7.6%Source: Merrill Lynch-Capgemini’s World Wealth Report 20062. Percentage of Asia-Pacific HNWIs andultra-HNWIs by market, 20053. Asia-Pacific HNWI wealth distributionby market, 20052,400,000 HNWIs 15,600 ultra-HNWIs11.3%0.7%2.3%2.5%3.3%3.5%3.7%13.5%59.3%OthersIndonesiaSingaporeTaiwanHong KongIndiaSouth KoreaChinaJapan17.5%1.0%4.7%2.8%7.5%5.5%2.4%29.1%30.6%46.0%46.0%HNWI, 2005 2005US$ US$ billion billionOthers 1,090Others 1,090Indonesia 60Singapore Indonesia 260 60Taiwan Singapore 190 260Hong Taiwan Kong 410 190India 290Hong Kong 410South Korea 230IndiaChina 1,590290Japan South Korea 3,500 230China 1,590Total: Japan US$7.6 trillion 3,50014.3%20.9%14.3%0.8%3.4%2.5%5.4%3.8%2.9%20.9%0.8%3.4%2.5%5.4%3.8%2.9%Total: US$7.6 trillionSource: Merrill Lynch-Capgemini’s Asia Pacific Wealth Report 2006 Source: Merrill Lynch-Capgemini’s Asia Pacific Wealth Report 2006According to the World Wealth Report 2006 by Merrill Lynchand Capgemini, the total wealth of the class of High-Net-Worth-Individuals (HNWI), namely people with net financialassets of at least US$1 million (S$1.54 million) excludingtheir primary residence and consumables, grew 8.5% yearon-yearin 2005 to US$33.3 trillion globally (see chart 1).HNWI’s financial wealth is expected to grow at an annualrate of 6% to reach US$44.6 trillion by 2010. Almost a thirdof these HNWIs is buying homes in international markets, inaddition to investing globally.In the Asia-Pacific Wealth Report 2006, Merrill Lynch andCapgemini revealed that Asia-Pacific represented 27.1% ofthe world’s HNWI. The Asia Pacific region was also home to70Special featureWaterfront homes – Living the good lifeKeppel Land LimitedReport to Shareholders 2006

4. Asia’s strong economic growth5. Remittance from Viet KieusCountry Average GDP Growth 2001-2005 (%)China 8.8India 6.4South Korea 5.4Malaysia 5.2Thailand 5.1Hong Kong 4.9Singapore 4.5Taiwan 3.4Japan 1.3World Total 2.7US$ billion5432.221020022.620033.220043.820054.72006Source: DTZ ResearchSource: Vietnam Ministry of Foreign Affairs6. Remittance from overseas Indians7. Growing high-income earners in SingaporeUS$ billion252021.620.324.67,0006,0005,0005,5875,3865,7076,4361512.112.915.416.44,0003,000108.52,00052.11,000020022003200420050199119962000 2001 2002 2003Fiscal Year Ended March200420052006$500,000-$1 m$1 m and aboveTotalYear of AssessmentSource: Reserve Bank of Indiafive of the 10 fastest-growing HNWI populations in the world,with the number of such individuals growing by 7.3% yearon-yearto 2.4 million in 2005. The number of Ultra-HNWI,namely those with net financial assets of more than US$30million, grew at an even higher rate of 12.1%, to 15,600 (seechart 2). The total wealth of the Asia-Pacific high-net-worthpopulation was US$7.6 trillion in 2005, growing at an 8% paceover the year before (see chart 3). China and Japan accountedfor more than 65% of regional HNWI wealth.Fuelling wealth generation in the Asia Pacific is robust GrossDomestic Product (see chart 4) and market capitalisationgrowth, both of which have outperformed other regions in theworld. Strong economic growth has in turn resulted in risingaffluence, a fast expanding middle-class population, rapidurbanisation and growth of the expatriate community.With wealth being created and an increased appetite forconsumption, the newly affluent populations across the regionare demanding better housing.In countries such as India and Vietnam, non-resident Indians andViet Kieus or overseas Vietnamese are purchasing residentialproperties for investment in their countries of ethnic origin totake advantage of positive government policies which allowthem to purchase properties. Remittances by Viet Kieus grewby 23.7% year-on-year in 2006 to reach a high of US$4.7 billion(see chart 5).Source: Inland Revenue of SingaporeRemittances from overseas Indians have risen substantially inthe last 15 years. From a modest US$2.1 billion for the fiscalyear (FY) ended March 1991, the figure rose to US$12.3 billionin FY1997, and surged to nearly US$22 billion in FY2004.Between FY2000 and FY2004, remittances almost doubled.Except for a slight dip in FY2005, the FY2006 figures fromthe Reserve Bank of India suggest that the trend is here tostay. India ranks as the leading recipient of remittances in theworld. For the FY ended March 2006, non-resident Indiansremitted a total of US$24.6 billion, up 21.1% from the previousyear (see chart 6).In Singapore, the number of high-earners has been on the rise(see chart 7). Over the past five years, Singapore’s wealthiest10% has seen their income rise by 2.3% annually. Accordingto Merrill Lynch-Capgemini’s wealth report, the number ofHNWI in Singapore rose by 13.4% year-on-year to 55,000 in2005 and about 17% of their assets are invested in real estate.Ranked among the world’s safest, best-governed, cleanest,and socially harmonious cities, Singapore is well-placed withinthe Asian region to become a major hub to service thehigh-net-worth group. Proactive government policies inattracting high-net-worth foreigners will continue to fueldemand for residential properties.Special featureWaterfront homes – Living the good lifeKeppel Land LimitedReport to Shareholders 200671

Key figures at a glanceSuccessful execution of strategicinitiatives delivers growth in numbers.112One Raffles Quay was the first officedevelopment in Singapore to achieverentals of $10 psf, a new record foroffice rentals in 2006.Quality portfolio of premier residential andcommercial properties across 12 countriesin Asia is still growing.63.6%100%The Group’s profit after tax and minorityinterests (PATMI) from overseas continuedto exceed the 50% target, having increasedto 63.6% from 59% in 2005, as a result ofhigher contributions from China, India,Vietnam and Indonesia.K-REIT Asia achieved 100% committedoccupancies for its initial portfolio of fourprime office buildings.4283,700All 428 units of the Marina Bay Residenceswere sold out in just three days of its preview.In Singapore, more than 1,200 Keppel homeswere sold in 2006, more than double that forthe previous years and registering the thirdhighest number of sales among listed developers.Overseas, the Group sold more than 2,500residential units, bringing the total number ofKeppel homes sold in 2006 to over 3,700.20,000$200.3mFrom 2007, the Group will be rolling outmore than 20,000 residential townshiphomes for sale in China, Vietnamand Indonesia.The Group’s PATMI of $200.3 million in 2006 isa 28.6% increase from $155.7 million in 2005.72 Key figures at a glanceKeppel Land LimitedReport to Shareholders 2006

Strategic directionsKeppel Land aims to sustaingrowth in earnings and maximiseshareholder value.Strategic directions Objectives Strategy in actionMaximise longtermshareholder valueThe Group will consistently worktowards creating and enhancingshareholder wealth• Improve Group profitability• Increase dividend payoutto shareholders• Manage risks to mitigate potentialimpact on earnings and values• Increased Group PATMI by 28.6% to$200.3 million in 2006• Raised final one-tier dividend to 6 centsper share in 2006• Implemented risk management initiativesGrow sustainable earningsfrom overseasThe Group will seek to leverage itsstrong network, brand name andexecution capabilities, especially inlarge-scale township developments,to grow a sustainable stream ofearnings from overseas• Venture into newgeographic markets• Broaden foothold by expandinginto new growth cities in Asia• Strengthen township initiatives as asteady, long-term source of revenue• Explore potential waterfrontdevelopments• Moved into Tianjin in China and Kolkata in Indiawith villa and condominium projects respectively• Exploring potential developments in new marketssuch as the Middle East• Successfully launched and sold The Botanica,the Group’s first township project in China• Built up pipeline of more than 20,000 townshiphomes in Asia• Raised stake in Evergro Properties and re-brandedthe subsidiary for growth in second-tier citiesin ChinaGrow fee-based incomeThe Group will continue to exploreopportunities to move up the valuechain in search of higher returns• Achieve stable returns andlong-term capital appreciationfor unitholders• Grow assets under management (AUM)• Launch new real estate funds• Build local platforms in key Asianmarkets• Established and listed K-REIT Asia onSingapore Exchange• AUM by Alpha Investment Partners (Alpha)will be more than $4 billion when funds arefully leveraged and fully invested• Alpha achieved final closing of Alpha Core PlusReal Estate Fund• Alpha secured first Shariah compliant fundSeize opportunities presentedby remaking of SingaporeThe Group will leverage its corecompetencies to ride on marketcycles and strengthen its presencein Singapore• Seek viable opportunities forresidential and commercialdevelopments• Unlock value in commercialproperty portfolio• Enhance asset yields and value• Capitalised on positive property market withsignature developments like Marina BayFinancial Centre and Reflections at Keppel Bay• Raised stake in Equity Plaza for eventualrealisation of value• Finalising plans to redevelop Ocean BuildingMonetise non-strategic assetsThe Group will re-invest proceedsfrom monetisation of assets togenerate better returns• Improve asset profitability tomaximise returns to shareholders• Divested stakes in Hotel InterContinentalSingapore, Singapore Suzhou Industrial Holdingsand Ocean Towers, ShanghaiEnhance corporategovernance and corporatesocial responsibility (CSR)The Group will maintain its highstandards in corporate governanceand improve its CSR• Maintain best-in-class practicesin corporate governance andcorporate transparency• Increase awareness and emphasison CSR in all projects• Signed up as member of Singapore Compact,a non-profit organisation to promote CSR• Embarked on green initiatives and achievedGreen Mark certification for The TresorStrategic directionsKeppel Land LimitedReport to Shareholders 200673

Financial reviewOverview2006 2005 % Increase/$’000 $’000 (Decrease)Sales 948,018 586,391 61.7Profit before taxation and gains from en blocproperty sales, less impairment loss 217,983 183,449 18.8Profit before taxation but after gains fromen bloc property sales, less impairment loss 263,408 184,637 42.7Profit after taxation and minority interests(PATMI) 200,310 155,709 28.6Total equity (including minority interests) 1,900,952 1,959,509 (3.0)Borrowings, net of cash 1,969,775 2,234,519 (11.8)Debt-equity ratio (%) 104 114 (8.8)Earnings per share (cents) 27.9 21.8 28.0Return on equity after en bloc property sales,less impairment loss (%) 12.8 9.5 34.7Gross final dividend per share (cents) 6.0 5.0 20.0Special dividend in specie per share, gross equivalent (cents) 44.0 – nmNet tangible assets per share ($) 2.21 2.35 (6.0)nm – not meaningfulGroup salesGroup profit$ million1,000948.0$ million300263.4800600400200299.0678.8476.2586.42502001501005061.326.4184.6155.7139.9 132.7109.3 100.4200.3020022003200420052006020022003200420052006Profit before tax but after enbloc property sales and impairment lossAttributable profitSalesThe Group’s revenue increased by 62% to $948 million in 2006from $586.4 million in 2005. The $361.6 million increase wasdue mainly to higher sales in the Group’s property tradingbusiness which accounted for $344.7 million. Revenue frominvestment properties decreased by $2.1 million, while theGroup’s hospitality and other business activities achieved arevenue increase of $19 million.EarningsProfit before tax but after gains from en bloc property salesand impairment loss improved by 43% to $263.4 million.This was contributed mainly by overseas residential projects.Associated companies contributed marginally lower profitsthan in 2005, while interest costs were higher as a result ofhigher interest rates.74 Financial reviewKeppel Land LimitedReport to Shareholders 2006

Gains from en bloc property sales comprised profit of$57.7 million from the divestment of Hotel InterContinentalSingapore and $27.1 million from the divestment of OceanTowers in Shanghai. Owing to continued uncertainties inMyanmar, the Group made an additional impairment chargeof $32.2 million for its two hotels. In addition, the Groupprovided $5 million against its investment in an associatedcompany that owns the hotel in Manado and $1.5 million forEvergro’s investment building.PATMI was $200.3 million, an improvement of 29% over thatof the previous year.Earnings from overseas represented 64% of the Group’s profitbefore en bloc property sales and impairment loss, comparedwith 59% for 2005.Returns to shareholdersEarnings per share improved to 27.9 cents in 2006 from21.8 cents in 2005. In April 2006, 144.4 million units inK-REIT Asia amounting to a book value of $262.9 million wasdistributed to shareholders as a dividend in specie (grossequivalent of 44 cents per share), resulting in the loweraverage equity employed for the year. The lower equityemployed, together with the improved earnings, has givenrise to the higher return on equity of 12.8% compared with9.5% for 2005.A final dividend of 6 cents per share amounting to about$43.2 million for 2006 has been recommended by theDirectors. The dividend for 2005 was $36 million or 5 centsper share.Earnings and dividends per sharecents353025201510%50Return on shareholders’ equity151296303503002502001501005003.77.720023.61.720023.57.56.820038.78.6200411.69.52005Return before tax but after en bloc property sales and impairment lossReturn after tax and en bloc property sales and impairment lossDividend payout200215.84.02003200314.219.020042005200615.312.82006$ million centsSpecial dividendin specie (grossequivalent of44 cents per share,amounting to$262.9 million)36.019.3 22.7 28.53.54.0 5.0 5.0Final dividend paid/payable ($ million)Gross final dividend per share (cents)5.0 5.0200418.726.7200521.833.627.96.02006Earnings before tax but after en bloc property sales and impairment lossEarnings after tax and en bloc property sales and impairment lossGross final dividend306.150.0706050403020100Financial reviewKeppel Land LimitedReport to Shareholders 200675

Financial reviewSources of finance$ million5,0004,791.7206.9 4,451.73,987.1439.74,000 3,721.5 3,794.2137.5 247.9325.92,625.32,111.13,0001,914.1 1,853.1 1,828.82,000189.6 206.3225.6280.6310.0Assets employed$ million5,0004,0003,0002,0003,721.5 3,794.21,255.0169.8420.41,403.4195.2460.93,987.11,586.7186.4458.04,791.72,254.2213.8415.14,451.72,204.1183.3659.41,0001,480.31,486.91,606.81,678.91,590.91,0001,876.31,734.71,756.01,908.61,404.902002 2003 2004 2005 2006Shareholders’ equityMinority interestsLong-term borrowingsShort-term borrowingsFinancial conditionIn 2006, 4.1 million shares were issued for cash upon theexercise of options by certain full-time employees. Sharecapital and reserves amounted to $1.6 billion as at end-2006and $1.7 billion at the end of the previous year.In June 2006, the Company issued $300 million 2.5% 7-yearconvertible bond to position the Group for further expansionin Singapore and overseas. The funds were utilised to refinanceloans that matured during the year and as working capital.Proceeds from the en bloc property sales mentioned abovewere utilised to reduce borrowings, bringing Group borrowingsto $2.6 billion at end-2006 from $2.8 billion a year ago. Atend-2006, short-term borrowings constituted 17% of totalborrowings, versus 7% at end-2005.During the year, the Company increased its stake inEvergro Properties Limited from 56% to 71%.At year-end, the Company purchased a joint venture partner’s29.3% interest in DL Properties, which owns Equity Plaza, aninvestment building. Following the purchase, DL Propertiesbecame a 65%-owned subsidiary.02002 2003 2004 2005 2006Fixed assets andinvestment propertiesInvestmentsDevelopment propertiesNet current assetsAssets employedAssets employed at end-2006 was $4.5 billion, lower by7% from $4.8 billion at end-2005, following the distributionin specie and the above mentioned divestments.Property tradingRevenue from property trading rose 74% to $809.8 millionin 2006 from $465.1 million in 2005, on account of newrevenue streams from overseas residential projects suchas Elita Promenade in India and Villa Riviera in Vietnam andChina. Higher revenues also came from existing overseastrading projects, The Seasons and The Waterfront in Chinaand BG Junction in Indonesia. However, these were partlyoffset by lower contributions in China from 8 Park Avenueand completed project, One Park Avenue.In Singapore, higher sales of the Group’s condominiumdevelopments accounted for the increased revenue in 2006compared with that for 2005. The recently launched project,The Suites at Central at Devonshire Road together withexisting projects Park Infinia at Wee Nam, The Belvedere,Freesia Woods and Urbana contributed to most of theincrease in sales in 2006.76Financial reviewKeppel Land LimitedReport to Shareholders 2006

Analysis by business segmentSales Ebita Pre-tax profit Attributable profitYear Year Year Year Year Year Year Yearended ended ended ended ended ended ended ended2006 2005 2006 2005 2006 2005 2006 2005$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000Property trading 809,751 465,057 191,127 127,549 207,693 144,572 150,723 111,897Property investment 67,274 69,368 36,550 35,353 37,434 41,678 27,552 39,654Hospitality, assetmanagement andproperty services 70,993 51,966 (12,369) 1,020 (27,144) (2,801) (23,991) 2,970Before en blocproperty sales andimpairment loss 948,018 586,391 215,308 163,922 217,983 183,449 154,284 154,521En bloc property salesand impairment loss – – – – 45,425 1,188 46,026 1,188After en bloc property salesand impairment loss 948,018 586,391 215,308 163,922 263,408 184,637 200,310 155,709Analysis by geographical locationSales Ebita Pre-tax profit Attributable profitYear Year Year Year Year Year Year Yearended ended ended ended ended ended ended ended2006 2005 2006 2005 2006 2005 2006 2005$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000Singapore 455,612 207,282 59,760 43,606 57,096 61,252 56,182 63,300Other countries 492,406 379,109 155,548 120,316 160,887 122,197 98,102 91,221Before en blocproperty sales andimpairment loss 948,018 586,391 215,308 163,922 217,983 183,449 154,284 154,521En bloc property salesand impairment loss – – – – 45,425 1,188 46,026 1,188After en bloc property salesand impairment loss 948,018 586,391 215,308 163,922 263,408 184,637 200,310 155,709Financial reviewKeppel Land LimitedReport to Shareholders 200677

Financial reviewAttributable profit from property trading rose 35% to$150.7 million in 2006 from $111.9 million in 2005. Theincrease of $38.8 million was due mainly to contributionsfrom the Group’s projects in China, India and Singapore.Profits recognised during the year for the following projectswere as follows: 8 Park Avenue, Shanghai ($16.9 million),The Seasons, Beijing ($20 million), The Waterfront, Chengdu($12.2 million), Villa Riviera, Vietnam ($6.6 million) and ParkInfinia at Wee Nam, Singapore ($24.4 million).In China, significant contributions to profit growth in 2006also came from the sale of Evergro’s subsidiary which owned133 ha of land in Tianjin, and the sale of the Company’sinterest in Singapore Suzhou Industrial Holdings.Property investmentRevenue from property investment of $67.3 million in 2006was 3% less than $69.4 million in 2005, due largely to thedivestment of four buildings (Bugis Junction Towers,Prudential Tower, Keppel Towers and GE Tower) to K-REITAsia in April 2006.The divestment resulted in the reduced attributable profitfrom property investment which was 30% lower at$27.6 million in 2006 from $39.7 million in 2005.Hospitality, asset management and property servicesThe Group’s hospitality, asset management and propertyservices generated revenue of $71 million in 2006, whichwas 37% higher than $52 million in 2005. Assets undermanagement under Alpha Investment Partners and K-REITAsia Management increased from $2.3 billion in 2005 tomore than $4 billion in 2006.However, this segment recorded a loss of $24 million,compared with a profit of $3 million in 2005. The variance wasdue mainly to a revaluation loss of $2.4 million in 2006 for theGroup’s interest rate hedging instruments compared with arevaluation gain of $9.5 million in 2005 and net higher interestcosts in 2006 resulting from higher interest rates, as well asa loan recovery in 2005 for the hospitality business.As explained above, an impairment charge was also recordedfor the two hotels in Myanmar and an associated companywith hotel interests in Manado.Net tangible asset per share$3.002.001.002.09 2.0920022003Net tangible asset per share2.2620042.3520052.212006Five-year financial recordEarnings per share, return on equity, dividend per share, anddividend payout grew consistently for the last five years.From 7.7 cents in 2002, earnings per share before tax butafter gains from en bloc sales less impairment loss, grew to33.6 cents in 2006.Dividend per share increased steadily from 3.5 cents in 2002to 6 cents in 2006. Return on equity also increased from1.7% in 2002 to 12.8% in 2006. Dividend payout, which was$19.3 million in 2002, increased to about $43.2 million in 2006.Including the special dividend in specie of 144.4 million unitsof K-REIT Asia, the total dividend payout in 2006 would be$306.1 million or a gross equivalent of 50 cents per share.Net tangible asset per share at the year-end increased from$2.09 in 2002 and 2003 to $2.35 in 2005. The decrease to$2.21 at end-2006 was due mainly to the above mentioneddistribution in specie.78Financial reviewKeppel Land LimitedReport to Shareholders 2006

Sensitivity analysisInvestment propertiesThe Group’s main investment properties are Ocean Building,Ocean Towers, Equity Plaza, One Raffles Quay, Keppel Towers,GE Tower, Bugis Junction Towers and Prudential Tower inSingapore, Saigon Centre and International Centre in Vietnam,and Wisma BCA in Indonesia. The rental income from theseproperties is sensitive to changes in their occupancies andthe rental rates for lease renewals.Assuming that average rental rate is maintained, a fullyear’s impact on rental income for every 1% change inthe occupancies of the Group’s investment properties isapproximately $1.2 million.In respect of committed leases and lease renewals, a fullyear’s impact on rental income for every 10% change inaverage rental rates from new rates negotiated is about$15 million.Trading propertiesThe Group’s profit from property trading is sensitive to actualsales achieved and the percentage of physical completionrecognised during the year.Change in rental incomeResulting from:$ million1% change in occupancies (a) 1.210% change in average rental rates (b) 15.0(a) Assuming current average rentals are maintained.(b) Based on committed leases and leases for renewalin 2007.Incremental impact of additional sales and completion oftrading properties on Group pre-tax profitResulting from:$ millionFor every 5% of physical completion (c) 18.7For every 1% of additional sales (d) 7.6(c) Based on actual sales contracts 31 December 2006.(d) Based on physical completion projected and salesprojected for the year, and completed properties availablefor sale at end-2006.Based on actual sales contracts signed as at 31 December2006, the incremental impact on Group pre-tax profit forevery 5% of physical completion is about $18.7 million.For every additional 1% of sales achieved for projects whichhave been launched, the additional contribution to Group pretaxprofit is an estimated $7.6 million. This is based on physicalcompletion and sales projected for the year, and the propertiesavailable for sale which the Group had at end-2006.Sensitivity analysisKeppel Land LimitedReport to Shareholders 200679

Property portfolio analysisAnalysis bytenureAnalysis bydevelopment stage$ million■ Freehold 751■ 999-year Lease 529■ 99-year Lease andOthers 1,8083,088$ million■ Completed 1,647■ Under Development 1,373■ Awaiting Development 683,088The Group’s diversified property portfolio, comprising officebuildings, residential properties, hotels and resorts, servicedapartments, shophouses and retail outlets, and industrialbuildings are owned through subsidiaries and associatedcompanies. Details of the Group’s property portfolio aregiven on Pages 229 to 242. The following analysis as at31 December 2006 is for the Group’s effective interests only.Singapore properties(a) Analysis by tenureFreehold properties constituted 24.3% of the Group’sproperties, with 999-year leases and 99-year leasedproperties making up 17.1% and 58.6% respectively.(b) Analysis by development stage53.3% of the Group’s portfolio was made up of completedproperties while 44.5% was under development. Propertiesunder development included The Sixth Avenue Residences,The Suites at Central, Urbana, The Belvedere and Park Infiniaat Wee Nam and Marina Bay Residences. The balance 2.2% ofthe Group’s properties was landbank awaiting development.(c) Analysis by sector56.6% of the Group’s office property portfolio includedOcean Building, Ocean Towers, Equity Plaza, PrudentialTower, Keppel Towers, GE Tower, Bugis Junction Towers,Keppel Bay Tower, One Raffles Quay and Marina BayFinancial Centre. Residential properties made up 41.7%while the remaining portfolio comprised retail and industrialcomponents in the proportions of 0.3% and 1.4% respectively.(d) Analysis by estimated building floor areaThe total building floor area of the Group’s property portfoliowas 506,000 sm. Office buildings and residential propertiesformed 40.7% and 53.6% respectively of the total buildingarea. The balance comprised 0.4% for retail and 5.3% forindustrial buildings.Overseas properties79.3% of the Group’s completed properties was in Singaporewhile 20.7% was located overseas. Taking into accountprojects under development, Singapore and overseasproperties constituted 75% and 25% respectively of theGroup’s portfolio. The Group’s property portfolio amounted to$4.1 billion.80 Property portfolio analysisKeppel Land LimitedReport to Shareholders 2006

Analysis bysectorAnalysis byestimated buildingfloor area$ million■ Office 1,747■ Residential 1,288■ Retail 11■ Industrial 423,088sm’000■ Office 206■ Residential 271■ Retail 2■ Industrial 27506Analysis bylocation – completed projectsAnalysis bylocations – all projects$ million■ Local 1,647■ Overseas 4292,076$ million■ Local 3,088■ Overseas 1,0314,119Property portfolio analysisKeppel Land LimitedReport to Shareholders 200681

Value added statementBy segmentHospitality, assetProperty Property management andtrading investment property services Group$ million $ million $ million $ millionTotal value added2006 257.2 149.3 5.5 412.02005 152.8 97.8 28.6 279.2Distributed as follows:Employees in salaries and staff benefits2006 11.7 7.0 48.3 67.02005 5.7 6.2 39.9 51.8Government in taxes2006 39.5 3.0 3.7 46.22005 27.5 6.3 1.8 35.6Providers of capital in dividends and interest2006 39.4 37.3 299.2 375.92005 5.4 31.3 30.0 66.7Retained for reinvestment and asset replacements2006 166.6 102.0 (345.7) (77.1)2005 114.2 54.0 (43.1) 125.1Total distribution2006 257.2 149.3 5.5 412.02005 152.8 97.8 28.6 279.2Value added by segment$ million500489.167.0400300200100046.2279.251.835.6375.966.7(77.1)125.1257.2 11.739.539.4 152.8 5.727.55.4166.6114.2149.3 7.03.037.3102.097.8 6.26.331.354.0351.248.33.7299.271.739.91.830.0(43.1)-100-200(345.7)-300-4002006 2005 2006 2005Group PropertytradingRetained/reinvested in Group’s businessProviders of capitalGovernmentsEmployees2006Property2005investment20052006Hospitality,asset managementand property services82 Value added statementKeppel Land LimitedReport to Shareholders 2006

Value added statement2002 2003 2004 2005 2006$ million $ million $ million $ million $ millionOur sales of goods and services to non-Group customers totalled 299.0 678.8 476.2 586.4 948.0Whereas our purchase of raw materials, suppliesand services from non-Group sources amounted to (129.2) (499.2) (307.6) (370.6) (665.7)and net gains/(losses) from en bloc property sales,and impairment loss were (67.9) (25.8) – 1.2 45.4so that the value added from operations was 101.9 153.8 168.6 217.0 327.7In addition:our share of profits earned by associated companies was 15.2 22.4 36.4 28.2 27.6income from our investments was 21.3 15.0 16.5 34.0 56.7138.4 191.2 221.5 279.2 412.0Excluding investment income, total value addedfor the Group was distributed as follows:to employees in wages, salaries and benefits 33.5 38.2 44.2 51.8 67.0to governments in taxation 32.8 11.4 2.9 35.6 46.2to providers of capital in:interest paid on borrowings 26.5 30.1 24.0 25.4 70.4dividends in minority shareholders in subsidiary companies 6.0 6.6 14.3 12.8 6.6dividends to shareholders of the Company 16.6 19.3 22.7 28.5 36.0special dividend in specie to shareholders of the Company – – – – 262.949.1 56.0 61.0 66.7 375.9The balance was reinvested in or ploughed back from business in:depreciation 15.4 13.6 13.4 17.3 11.2minorities’ share of subsidiary companies’ profit retainedor previous years’ profits ploughed back by subsidiaries (8.4) (9.1) (10.0) (19.4) 10.3profit for the year retained or previous years’profits ploughed back by the Company (5.3) 66.1 93.5 93.2 (155.3)1.7 70.6 96.9 91.1 (133.8)117.1 176.2 205.0 245.2 355.3And non-operating investment income was: 21.3 15.0 16.5 34.0 56.7138.4 191.2 221.5 279.2 412.0Value added statementKeppel Land LimitedReport to Shareholders 200683

Productivity analysisIn 2006, the total value added by the Group includinginvestment income was $412 million. In terms of segmentalcontribution, this figure can be analysed as follows:$ millionProperty trading 257.2Property investment 149.3Hospitality, asset management and property services 5.5412.0The total value added by the Group for the previous year was$279.2 million.The Group’s value added from operations for the previousyear was $245.2 million. Salaries and staff benefits ofemployees absorbed $51.8 million, tax to governments$35.6 million, and interest and dividends to capital providers$66.7 million, leaving the balance of $91.1 million reinvestedin business.Income from the Group’s investments was $56.7 million.Excluding this investment income, the Group’s value addedfrom operations of $355.3 million was absorbed by employeesin salaries and staff benefits of $67 million, governments intaxation of $46.2 million, and providers of capital in interestand dividends totaling $375.9 million.Value added (excluding investment income)$ million500400489.167.046.23002001000117.133.532.849.11.7176.238.711.456.070.6205.044.22.961.096.9245.251.835.666.791.1375.9-100(133.8)-20020022003Depreciation and profit retained/reinvestedInterest expense and dividends2004 2005TaxationWages, salaries and benefits200684 Productivity analysisKeppel Land LimitedReport to Shareholders 2006

Value added per employeeValue added per dollar employment cost$’000$140128.5 124.15.004.8912010080604055.747.283.876.485.478.6104.295.94.003.003.044.033.683.823.514.193.864.72202.58020022003Gross value added basis2004 2005 2006Net value added basis2.002002 2003 2004 2005 2006Gross value added basis Net value added basisProductivity data(Excluding associated companies)2002 2003 2004 2005 2006Sales per employee:excluding associated companies ($’000) 163.3 369.9 241.1 281.5 371.8Value added per employee:Gross value added basis ($’000) 55.7 83.8 85.4 104.2 128.5Net value added basis ($’000) 47.2 76.4 78.6 95.9 124.1Value added per dollar employment cost:Gross value added basis ($) 3.04 4.05 3.82 4.19 4.89Net value added basis ($) 2.58 3.67 3.51 3.86 4.72Productivity analysisKeppel Land LimitedReport to Shareholders 200685

Economic value addedYear-on-year change in Economic Value Added$ million200163.615010069.349.250Going forward, Keppel Land’sEVA is expected to improvefurther with its increasing focuson EVA-accretive activities ofproperty development for saleand property fund management.10.202003200420052006Economic Value Added (EVA) is one financial performanceindicator that measures the creation of wealth for shareholdersover time. It is defined as the difference between the Company’snet operating profit after tax (NOPAT) and the cost of capitalemployed. For Keppel Land, measurement of EVA is carriedout quarterly and is constantly reviewed throughout the year.In the pursuit of creating shareholder wealth, Keppel Landwill evaluate and justify all potential new investments byusing various measures of financial returns including EVA,internal rate of return and net present value. Returns fromthese investments would have to be higher than the cost ofcapital employed in the longer term.For 2006, Keppel Land’s EVA improved significantly by$69.3 million to a negative $7.1 million, compared with anegative $76.4 million for 2005. This improvement in EVAis driven largely by better Group earnings. During the year,Keppel Land’s NOPAT improved by $122 million and thiscould be attributed mainly to higher earnings contributionsfrom Singapore, China, India and Vietnam as well as gainsfrom en bloc property sales. The higher NOPAT is partlyoffset by higher cost of capital employed as the weightedaverage cost of capital increased from 6% in 2005 to 7% in2006 due to higher risk-free and interest rates.Going forward, Keppel Land’s EVA is expected to improvefurther with its increasing shift in focus on EVA-accretiveactivities of property development for sale and property fundmanagement. Keppel Land will strive towards achievingpositive EVA in 2007. Keppel Land will constantly engage ininitiatives that will create and enhance shareholder value.86 Economic value addedKeppel Land LimitedReport to Shareholders 2006

Corporate liquidity andcapital resourcesCredit facilitiesInterest cover$ billion3.53.02.52.03.32.22.92.7$ million Number of times250233.73.52003.4175.43.41503.31.51.00.500.40.40.40.10.1Available 2006 Utilised 2006 Available 2005 Utilised 2005Floating rate borrowings Fixed rate borrowings10076.852.0503.002006 2005Net interest Profit Cover3.23.13.0Corporate liquidity and capital resourcesAs at end-2006, the Group’s cash position was reducedto $581 million from $597.7 on account of loans repaid in2006. The Group had total funding facilities of $3.7 billion,out of which 68% was utilised. Owing to the progressiverepayment of loans throughout the year, net debt went downby 11.8% to $1.97 billion. As a result, net debt-equity ratiofell to 1.04 times at end-2006 from 1.14 times a year ago.The Group’s credit facilities were substantially unsecuredexcept for loan of $276.7 million (11%) obtained by certainsubsidiary companies which pledged their assets to the lendingfinancial institutions. The net book value of the properties andother assets pledged/mortgaged amounted to $475 million.In 2005, loans of $142.8 million were secured by assets valuedat $304.4 million.On an unhedged basis, the fixed/floating proportion of theGroup’s debt as at year-end was 15% and 85% respectively.Interest rate caps and interest rate swaps were used tohedge the Group’s exposure to interest rate risk. Taking intoaccount these interest rate hedging instruments, the fixed/floating proportion was 52% and 48% respectively.The Group’s borrowings are denominated in S$, US$, Baht,Rupiah and Indian Rupee. In order to achieve a naturalhedge, the Group will, as far as practicable, arrange to fundits overseas assets in the same currencies in which theassets are denominated.During the year, $15.7 million of net interest expense waschanged to the profit and loss account and $61.1 million ininterest was capitalised under properties held for sale.The maturity profile of the loans is as follows:Due in 2007Due in 2008 to 2009Due in 2010 to 2011Due in 2012 to 2013Due in 2019Rolling$565 million$453 million$694 million$318 million$11 million$510 millionNet cost of funds was 3.7% for 2006, compared with 2.6%in 2005 as interest rates moved up during the year. Interestcover was 3 times in 2006 and 3.4 times in 2005.Corporate liquidity and capital resourcesKeppel Land LimitedReport to Shareholders 200687

Consolidated Debt-equity ratio liquidity andcapital resources$ million %2,3001141142,2352,2001122,100110With greater profitability,Keppel Land’s net debt-equityratio fell from 114% to 104%in 2006.2,0001,9001,9701,9011,9601081061,8001041041,7002006 2005Debt Equity Debt-equity ratio102Gearing structureFixed rate Floating rate Totalborrowingsborrowings$’000 % $’000 % $’000 %Facilities available for drawdown 430,000 100 3,306,537 100 3,736,537 100Amount utilised 387,639 90 2,163,087 65 2,550,726 68Balance unutilised 42,361 10 1,143,450 35 1,185,811 32Cash in hand and on deposit 580,9511,766,7622006 2005Interest coverProfit before interest and tax ($’000) 233,708 175,419Net interest cost expensed and capitalised ($’000) 76,832 52,000Interest cover 3.0 3.4Effective cost of borrowingsNet interest cost expensed and capitalised ($’000) 76,832 52,000Average net borrowings ($’000) 2,102,147 1,998,114Effective cost of borrowings (%) 3.7 2.6Secured borrowings ratioTotal secured borrowings ($’000) 276,692 142,834Percentage of total borrowings 10.8 5.0Debt-equity ratioTotal borrowings:Gross ($’000) 2,550,726 2,832,196Net of cash ($’000) 1,969,775 2,234,519Total equity (excluding minority interests) ($’000) 1,590,934 1,678,932Debt-equity ratio (excluding minority interests):Gross (%) 160 169Net of cash (%) 124 133Total equity (including minority interests) ($’000) 1,900,952 1,959,509Net debt-equity ratio (including minority interests) (%) 104 11488 Corporate liquidity and capital resourcesKeppel Land LimitedReport to Shareholders 2006

Risk managementIncreasing diversity of risk management activitiesIn the increasingly diverse markets that Keppel Land operates,and the risks that it faces in these markets, the Group’s riskmanagement activities have grown accordingly.The Board Risk Committee, formed in 2005 and made up offive independent Directors, meets quarterly to review and guidemanagement in the formulation of risk policies and processesto effectively identify, evaluate and manage significant risks.It also directs focus on specific areas, such as threat of theAvian flu and financial risks from interest and currency ratefluctuations, and makes recommendations to managementon appropriate mitigating actions. The Board Risk Committeehas directed the implementation of a procedure to report theimpact of major events such as natural disasters or key politicaldevelopments in the countries where the Group operates.Supporting the Board Risk Committee is the Group’s enterpriserisk management committee, whose members consist of allthe heads of departments. It maintains a register of significantrisks at the Group, department, city and project levels. Theserisks are assessed, and mitigating actions taken are monitoredand reported every quarter. In addition, on a quarterly basis,the Group monitors closely its investment exposure to eachcountry where it operates. A capital allocation policy, settingout the Group’s investment guidelines and limitations, iscurrently under review. This policy aims to guide managementtowards a portfolio that minimises the risks associated withinvesting in any country, sector or project.Quantification of the financial impact of risks providesmanagement with an overview of key risks that maypotentially affect the Group’s projected earnings. The Grouphas conducted a study which entailed the identificationof key risk events that may adversely affect earnings andvalues, and has evaluated the potential impact on earnings ofthese risk events. Similar studies are being conducted on atwice yearly basis.Flu pandemic response plans to ensurebusiness continuityWith the outbreak of Avian flu in various parts of the world,the Group has formed a management committee to developand implement flu pandemic response plans. These responseplans detail how the Group’s head office, investment properties,projects under construction and completed residential andhospitality properties will respond to a flu outbreak. As partof these response plans, an information system to enablethe continuity of critical business functions in the event ofa flu outbreak has been implemented. These response planswill be tested to assess their effectiveness and will befine-tuned accordingly.Future initiativesAs the Group’s businesses expand into new segments suchas township development and into new countries and cities,there is a need for the risk management committee toconsistently review the Group’s significant risks.Business continuity is of utmost concern amid threats of a flupandemic and terrorism. Scenarios that may disrupt businessoperations will be mapped out and appropriate response planswill be developed and implemented.The Group will further develop the risk culture amongst allstaff to ensure that risk management is entrenched as anessential part of their work. Aside from continuing trainingand workshops to ensure that the risk management processis well understood, staff at all levels will also be expected totake on more risk management responsibilities.Risk managementKeppel Land LimitedReport to Shareholders 200689

Risk managementIdentifying and managing risks:1. Capital allocation risks• Keppel Land has a capital allocation policy which iscurrently under review by management. It aims to guidemanagement towards a portfolio that minimises the risksassociated with investing in any country, sector or project.• For capital to be optimally deployed, Keppel Land willensure that timely and accurate market informationis available.2. Regulatory and political risks• Keppel Land engages external consultants and in-houselegal counsel at early stage of development of a projectto manage such risks.• Keppel Land has established close relationships withbusiness associates and government officials toanticipate possible changes in government policies.• Staff attend relevant seminars to be updated and keptinformed of new regulations and/or implications ofpolitical developments.3. Partnering risks• Keppel Land selects the right partners with like-mindedvisions for collaboration to achieve strategic goals andobjectives.• Establishing clearly defined operational structures,defining roles and responsibilities, setting up of executivecommittee to resolve operational issues and establishedcommunications channels to ensure alignment of interestare measures taken to minimise conflicts with jointventure partners.4. Product development and customer want risks• Keppel Land monitors new project launches and marketresponse in order to better understand market needsand wants.• Feedback from Customer Focus Unit and PropertyManagement Division is obtained for review andimprovement of projects.• Keppel Land organises design competitions to obtainthe best designs for its projects.5. Investment evaluation risks• To mitigate the risks, Keppel Land has established anetwork of local contacts so as to incorporateup-to-date market intelligence into the investmentevaluation process.• Keppel Land uses cross-disciplinary teams for investmentevaluation, including projects department for constructioncost estimate, marketing department for unit mix/layoutand product marketability, property managementdepartment for property management issues, and financedepartment for financing cost and structure.• Keppel Land has implemented independent riskassessment as part of the investment evaluation processto ensure that risks are thoroughly considered.6. Project management risks• To ensure good product quality, Keppel Land has a rigoroustender evaluation process, engages quality assuranceconsultants to check contractors’ design; retains control ofthe appointment of critical sub-contractors and has a qualitycontrol system in place.7. Human resources risks• Keppel Land has completed identification of keypositions and competencies, and has implementedsuccession planning.• Identification and nurturing of talent is an ongoing process.Talent management programmes are in place to developand retain high potential staff.8. IT risks• Keppel Land has developed a knowledge-based portalthat collates data from different sources within the Groupinto a centralised, user-friendly web-based resource.• Keppel Land is considering the implementation of anenterprise information system to facilitate budgeting andforecasting, financial accounting and scenario planning.9. Financial risks• Keppel Land uses financial instruments such ashedges and swaps to minimise interest rate andforeign exchange risks.10. Shareholder relationship risks• Keppel Land continues to practise good corporategovernance to maintain shareholders’ interestsand confidence.• Keppel Land actively engages analysts, fund managersand investors to provide the investment community withup-to-date information about the Company.11. Business interruption and catastrophic loss risks• In preparation for an Avian flu pandemic, Keppel Land hasimplemented a system to allow staff to work from homewith access to corporate applications. The businesscontinuity plans are in place and drills will be conductedto test the effectiveness of these plans.• Keppel Land has identified and will equip a recovery sitefor use by staff in the event of a disruption to operations.90 Risk managementKeppel Land LimitedReport to Shareholders 2006

Safety managementInitiatives towards good safety managementKeppel Land believes that good safety management equatesto good business sense and hence has embarked on a journeyto foster safety as a culture in the Company.As part of this effort, a Workplace Safety and Health Committee(WSHC) has been formed to spearhead initiatives on safetymanagement and to work towards the creation of a safetyculture in the Company. The WSHC will also formulatepolicies and guidelines to assist business units to exercisedue diligence and carry out its duties of care, includingtaking all reasonably practicable measures to ensure that theworkplace is safe to employees and co-workers.With the assistance of an appointed Occupational Safety andHealth consultant M/s Lockton Companies (Singapore) PteLtd, the WSHC has finalised and implemented Keppel Land’sown safety standards to measure and assess contractors’safety performance. The intention is to work with contractorsand service providers to enhance work site safety for thewell-being of all stakeholders. These safety standards alsoserve as a measurement tool in the evaluation of tendersduring selection exercises prior to the award of contracts.The appointed occupational safety and health consultant hasassessed the safety management systems of several localcontractors currently engaged in the development of theCompany’s projects. Where there are disparities betweenthe contractors’ safety standards and those of the Company,discussions are being held to close the gap. This assessmentof safety management systems will be progressivelyintroduced to all projects in Singapore and overseas.The WSHC has visited various development sites to propagatethe message of safety to all workers and to emphasiseKeppel Land’s commitment to safety in all workplaces.Over and above safety checks carried out by contractors inSingapore, Keppel Land has also instituted third-party safetychecks on construction sites to verify contractors’ compliancewith relevant regulatory requirements and safe work practices.These checks are carried out monthly and any shortcoming ishighlighted to the contractors for attention. Records are alsokept for subsequent reviews. In addition, every constructionwork site in Singapore and overseas is required to collateand submit reports and statistics to the WSHC on accidentfrequency and severity rates at construction sites. In theunfortunate event of an accident, the incident will beinvestigated and any lesson learnt will be shared with therelevant business units so as to prevent recurrence.Contractors have also been invited to share their experienceswith their peers at regular sessions and presentationsorganised by the WSHC. The aim is to pervade the messageof safety to all stakeholders, and to recognise the efforts putin by all parties to enhance workplace safety.While risk and safety issues faced by completed commercialbuildings differ from construction sites, elimination andmitigation of safety and health risk is of similar importance.In this connection, the property management teams inthe Group’s buildings have implemented comprehensiverisk management process to address risks at source. Thisentails the risk assessment of work activities, control andmonitoring of such risks, and communicating these risks toall persons involved.Initiatives in 2007Keppel Land has formed a safety committee at the Boardlevel to further emphasise the Company’s commitment toworkplace safety. The Board Safety Committee will setdirections and guide management in the formulation of safetypolicies and processes, and will emphasise key fundamentalstowards achieving a safety culture in the Company.Training and seminars by external consultants will be organisedas part of continual education for staff to reinforce theirknowledge on safety requirements and regulatory compliances.Safety managementKeppel Land LimitedReport to Shareholders 200691

Business dynamics andrisk factorsThe Group’s strategy for enhancing shareholder valuefocuses on developing properties for sale and managingproperty funds. Besides the Singapore property market, theGroup is present in the growing property markets of China,Vietnam, Indonesia and India where there is still a shortageof good quality housing to satisfy the needs of their growingmiddle class populations.The Singapore economy grew by 7.9% in 2006, comparedwith 6.6% in 2005. As economic prospects remain positive,demand in the Singapore residential and office sectorslooks healthy.Regionally, the success of the Group’s efforts will depend onthe following factors:• Availability of residential sites at competitive prices forhousing and also good sites at competitive prices inpopulous cities for township development so thateconomies of scale can be achieved to provide goodquality and affordable urban housing;• Effective partnerships with contractors, suppliers and jointventure partners so that projects can be delivered on timeand with quality;• Favourable lending laws and interest rates for propertydevelopers and end-purchaser financing;• Favourable taxation laws and double taxation treaties withSingapore, and ease of repatriating funds to Singapore;• Proper management of interest and currency rate exposures.The Group also faces the challenge arising from politicaluncertainties.In the Group’s growing property fund management business,efforts are being made to identify and invest in projects thatwill give the expected rates of return required by investors.The Company will continue to monitor all major risks affectingthe Group under its Enterprise Risk Management Committeeand take the necessary actions to mitigate or eliminate them.92 Business dynamics and risk factorsKeppel Land LimitedReport to Shareholders 2006

Critical accounting policies andrecommended accounting practiceAs required by the Companies Act, the Group’s and Company’sfinancial statements have been prepared in accordance withSingapore Financial Reporting Standards (“FRS”). The followingare the critical accounting policies and methods:Revenue and profit recognitionRevenue and profit on partly completed projects which areheld for sale are recognised on the percentage of completionbasis. For Singapore trading properties, profit recognition uponsigning of sales contracts and payment of the first instalmentis 20% of the total estimated profit attributable to the actualcontracts signed. Subsequent profit recognition is based on thestage of physical completion. For overseas trading properties,profit recognition upon the signing of sales contracts is thedirect proportion of total expected project profit attributableto the actual sales contracts signed, but only to the extentthat is related to the stage of physical completion.The more conservative percentage of completion basis foroverseas trading properties is appropriate as the markets thereare less matured and risks are greater. In respect of largetrading projects both in Singapore and overseas, the percentageof completion method is applied on a phase by phase basis(i.e. one phase for every part of a project with one temporaryoccupation permit).Leasehold propertiesLeasehold fixed assets are depreciated evenly over the periodof the lease. Profits and losses on disposal of leasehold fixedassets are included in the profit and loss account.The Group does not depreciate leasehold investmentproperties as they are stated at valuation made each yearand are accounted for as long-term investments. Revaluationsurpluses arising on annual valuations of the Group’s investmentproperties are credited directly to capital reserves. Revaluationdeficits are taken to the profit and loss account in the absenceof or to the extent that they exceed any surpluses held inreserves relating to previous revaluations. Profits and losseson disposal of leasehold investment properties are includedin the profit and loss account. Any surpluses held in capitalreserves in respect of previous revaluations of investmentproperties disposed of are regarded as having becomerealised and are transferred to the profit and loss account.Business combinationsUnder the relevant reporting standard, assets and liabilities ofsubsidiaries which the Group acquired during the year werestated at their fair values at the dates of acquisition.Convertible bondOn 23 June 2006, the Company issued a $300,000,0007-year convertible bond. Interest is payable at the couponrate of 2.5% per annum semi-annually. The bond maturing on23 June 2013 is convertible at the option of the bondholdersinto ordinary shares of the Company at the conversion priceof $6.55 per share. Any bondholder may request that theCompany redeems all or some of its bonds on 23 June 2011or in the event that the Company’s shares cease to be listedor admitted to trading on the Singapore Exchange SecuritiesTrading Limited. Interest expense on the convertible bondis calculated based on the effective interest method byapplying the interest rate of 4.78% per annum for anequivalent non-convertible bond to the liability component ofthe convertible bond.Investment in subsidiaries and associated companiesAs of 1 January 2006, investments in subsidiaries andassociated companies in the books of the Company werestated at cost less impairment loss, as fair values under theprevious basis cannot be reliably determined in the lightof volatile property prices. In past years, they were statedat the Company’s attributable shares of the fair values oftheir combined net assets. The change in accounting policyhas resulted in a decrease of $181.1 million in the revenuereserve of the Company as at 1 January 2006. However, thischange has no impact on the revenue reserves of the Group.Critical accounting policies andrecommended accounting practiceKeppel Land LimitedReport to Shareholders 200693

Critical accounting policies and recommended accounting practiceAccounting for investment properties under FRS 40The Group will adopt FRS 40 on 1 January 2007, which is theeffective date of the FRS.Currently, investment properties are accounted for inaccordance with the accounting policy as set out in item (h) ofSummary of Significant Accounting Policies. Under FRS 40,changes in fair values of investment properties are requiredto be included in the profit and loss account. On transition toFRS 40 on 1 January 2007, the amount accumulated in theasset revaluation reserve at 31 December 2006 of $263 millionwill be adjusted against the revenue reserves at 1 January 2007.Pre-completion contracts for the sale ofdevelopment propertyRecommended Accounting Practice (“RAP”) 11 was issuedby the Institute of Certified Public Accountants of Singaporein October 2005. In this RAP, it is mentioned that a propertydeveloper’s sales and purchase agreement is not a constructioncontract as defined in FRS 11 (Construction Contracts) and thepercentage of completion (“POC”) method of recognisingrevenue, which is allowed under FRS 11 for constructioncontracts, may not be applicable for property developers.The relevant standard for revenue recognition by propertydevelopers is FRS 18 (Revenue), which addresses revenuerecognition generally for all types of entities. However, thereis no clear conclusion in FRS 18 whether the POC methodor the completion of construction (“COC”) method is moreappropriate for property developers. The issue is beingaddressed by the International Accounting Standards Board.2006$ millionDecrease in revenue recognised for the year 619.4Decrease in opening revenue reserves 72.3Decrease in profit for the year 82.2Decrease in carrying value of properties held for sale:Balance as at 1 January 97.1Balance as at 31 December 195.5Decrease in minority interests:Balance as at 1 January 1.6Balance as at 31 December 7.7The Group uses the POC method for recognising revenuesfrom partly completed residential projects which are held forsale. Had the COC method been adopted, the impact on thefinancial statement of the Group will be as follows:94Critical accounting policies andrecommended accounting practiceKeppel Land LimitedReport to Shareholders 2006

Significant events1January• Keppel Land recorded a net profit of $155.7 million for2005, up 17% from the previous year.February• The 10-strong international Clipper fleet berthed atKeppel Bay over a 12-day stopover, highlighting theexceptional and international appeal of the waterfrontprecinct at Singapore’s western shore. (1)March• The final closing of Alpha Core Plus Real Estate Fundraised a total of $720 million, exceeding initial target of$412 million.2April• Distribution in specie of 144.4 million units of K-REIT Asiawas approved by shareholders at an extraordinary generalmeeting.• K-REIT Asia was listed on the Singapore Exchange. (2)• Evergro Properties (formerly known as Dragon Land)sold a land-owning subsidiary in Tianjin, China for aprofit of $29.2 million. Keppel Land’s share of profitwas $12.4 million.• One Raffles Quay’s 29-storey South Tower achievedTemporary Occupation Permit (TOP).Significant eventsKeppel Land LimitedReport to Shareholders 200695

Significant events3 4June• Keppel Land broadened its foothold in India with a jointventure to develop a 1,376-unit condominium in Kolkatatargeted at the expanding upper-middle income market.• BG Junction, Keppel Land’s retail hub in Surabaya,Indonesia, soft-opened and was officiated by guest ofhonour Mr Bambang Dwi Hartono, Mayor of Surabaya. (3)• Keppel Land completed the issue of $300 million inconvertible bond with 40% premium over the closingprice of $4.68 on the price fixing date.July• Keppel Land increased its stake in Equity Plaza to 64.63%from 35.37% for eventual realisation of value.• Keppel Land raised its interest in Evergro Properties to71.37% from 55.9% as an additional platform to expandinto growing secondary cities in China.• Mr Edward Lee, former Singapore Ambassador toIndonesia, was appointed as independent Director of theCompany.• Keppel Land was ranked fourth out of 621 listed companiesin the Business Times Corporate Transparency Index fortransparency in disclosure in its FY2005 financial results.It was the only property company in the Top 10 list.September• Keppel Land divested its stake in Singapore SuzhouIndustrial Holdings, booking a profit of $9.5 million.October• Keppel Land divested its 29% stake in Ocean Towersin Shanghai, booking a net profit of $27.5 million.• Marina Bay Financial Centre, a vibrant new $2 billionfinancial precinct jointly developed by Keppel Land,Cheung Kong (Holdings) and Hongkong Land, wasofficially unveiled by Singapore’s Minister for NationalDevelopment, Mr Mah Bow Tan. Phase One willfeature 244,000 sm gross floor area of world-classoffice space, luxury residences and complementaryretail facilities. (4)• Keppel Land joined as founder and charter memberof Investor Relations Professionals Association(Singapore) which provides a platform to fosterbest practices and enhance ethical and professionalstandards in investor relations.• One Raffles Quay’s 50-storey North Tower achieved TOP.96Significant eventsKeppel Land LimitedReport to Shareholders 2006

5 6November• Keppel Land completely unlocked the value ofBugis Junction through divestment of its interest inInterContinental Singapore for a profit of $56.9 million.• Dragon Land unveiled its new corporate identity asEvergro Properties to position itself as a choice developerof residential properties with integrated lifestyle elementstargeted at the middle to upper-income segments,especially those in the second-tier cities in China. (5)• Keppel Land and Evergro Properties successfully acquiredtwo adjacent plots of prime land totalling 82,987 smin Jiangyin, Jiangsu Province to develop a flagshipurban-living project.December• All 428 luxury apartments at Marina Bay Residences weresold out within three days of its preview, setting a newrecord price of $3,450 psf for one of the penthouses. (6)• The Sixth Avenue Residences, comprising 175 apartments,was fully sold within two weeks of its launch.Significant eventsKeppel Land LimitedReport to Shareholders 200697

Operations and market reviewSingapore – Residential98Keppel Land LimitedReport to Shareholders 2006

Keppel Land LimitedReport to Shareholders 200699

Operations and market reviewSingapore – ResidentialMarina at Keppel BayResidentialNew launchesMarina Bay ResidencesCentrally located on prime waterfront space in the heart ofSingapore’s new Marina Bay financial district, Marina BayResidences is designed by world-renowned architect, KohnPedersen Fox Associates.Marina Bay Residences will be surrounded by a vast arrayof entertainment options. In close vicinity is the excitingnew Marina Bay Sands Integrated Resort, which will offerthe most exquisite cuisine, lifestyle and entertainment fromaround the world. Green sanctuaries in the form of the 54-haGardens by the Bay will also be within walking distance.Stunning parks and gardens are planned with cooledconservatories that showcase flowers and plants fromtemperate countries and a mini-lake.Marina Bay Residences was previewed and fully soldwithin three days in December 2006 at an average priceof about $1,950 psf and with a record price of $3,450 psfset for a penthouse. Comprising 428 luxurious units of1- to 4-bedroom apartments and penthouses, Marina BayResidences offers a complete range of facilities such as alap pool and a children’s pool, a jacuzzi, a gymnasium and amagnificent sky lounge at the 47 th storey.The Sixth Avenue ResidencesThe Sixth Avenue Residences was previewed and fully soldin December 2006.The 175-unit development is located at Sixth Avenue,off Bukit Timah Road, which is one of Singapore’s mostprestigious prime residential districts. Surrounded bypremier schools such as Hwa Chong Institution, NanyangPrimary School, The Chinese High School, Nanyang Girls’School, National Junior College, Henry Park Primary School,Raffles Girls’ Primary School and Methodist Girls’ School,the development is just a stone’s throw away from shops,restaurants and supermarkets.The development will offer 2- to 5-bedroom apartment units,ranging from 950 sf to 3,500 sf in size, and feature twoOlympic-length swimming pools, a children’s pool, bubble100 Operations and market reviewSingapore – ResidentialKeppel Land LimitedReport to Shareholders 2006

Caribbean at Keppel Bay,a FIABCI award-winningdevelopment, has fullysold out its launched units.Caribbean at Keppel Baypools, a barbecue area, a stunning glass clubhouse,a gymnasium, a tennis court, a children’s play area andlush tropical landscape.Caribbean at Keppel BayCaribbean at Keppel Bay is the first residential developmentin the waterfront precinct of Keppel Bay. The development isonly a short drive to the central business district (CBD) andwithin walking distance to VivoCity, Singapore’s largestshopping mall, and St James’ Powerhouse, one of the mostdiverse entertainment hubs in the local scene.This development is among the first to feature connectedhomes in Singapore that come with state-of-the-art networkinfrastructure and a web-based condominium portal. It comprises969 apartments and offers a wide range of facilities includinga 50-m swimming pool with aquatic play equipment and bubblefun pool, two 25-m lap pools, children’s pools, open airjacuzzis and a clubhouse with steam rooms, a gymnasiumand a games room. Every home sits just metres away fromthe sea or waterway, charming residents with the impeccablesea views, water channels and lush greenery.All 801 units launched for sale have been sold. The remaining168 units kept aside for corporate residences enjoy strongrental demand with near full occupancy as of end-February2007. It is one of the most sought-after residences in theexpatriate community.The BelvedereThe Belvedere will be a new landmark condominium locatedalong Meyer Road, one of the most popular residentialaddresses in eastern Singapore. Towering 24 storeys high,the development will present homeowners panoramic viewsof the sea and the city skyline. Comprising 167 units, itwill offer 2- to 3-bedroom units and penthouses with sizesranging from 1,000 sf to 2,800 sf. Designed with private liftlobbies, the development will provide facilities including aswimming pool, a tennis court and a clubhouse.Conveniently located within close proximity to a wide rangeof amenities, The Belvedere also enjoys easy access to majorexpressways, and is a stone’s throw away from the EastCoast Park. The development has been fully sold in 2006.Park Infinia at Wee NamPark Infinia at Wee Nam is located at the junction of Wee NamRoad and Keng Lee Road, and is within walking distance tothe Newton Mass Rapid Transit (MRT) station, Novena Squareand the famous Newton Hawker Centre. It is also a five-minutedrive to the Orchard Road shopping belt. Reputable schoolsin its vicinity include Anglo-Chinese School (Primary),Anglo-Chinese School (Junior) and St Joseph’s InstitutionJunior School.The 486-unit freehold development will comprise 30- and36-storey towers of 1- to 4-bedroom units and exclusivepenthouses with floor areas ranging from 520 sf to 3,300 sf.It will offer full condominium facilities such as a 50-m lapOperations and market reviewSingapore – ResidentialKeppel Land LimitedReport to Shareholders 2006101

Reflections Keppel Bay, at Singapore Keppel Baypool, aqua-gym pool, man-made beach pool, bubble pool,clubhouse with function room, dance studio/music room,audio-visual room, gymnasium, tennis courts, jungle spa,children’s play area and barbecue pavilion.Upon completion, Park Infinia at Wee Nam will be one ofthe largest condominium developments in the Newton area.Some 98% of the 393 units launched have been sold as ofend-February 2007. The remaining units will be launched forsale in the first half of 2007.Devonshire Road developmentRepresenting a rare combination of exclusivity andaccessibility, the development at Devonshire Road will bean exquisite collection of 157 freehold condominium units.Sitting on an 80,000-sf site, the development is convenientlylocated within walking distance to the Somerset MRT stationand the Orchard Road shopping belt.The 33-storey twin tower condominium development withmodern architectural design will offer ample living space withviews all round. Units with floor area ranging from 630 sf forstudio units to 3,730 sf for penthouses are available in avariety of configurations where buyers are spoilt for choice.Facilities will include a free-form swimming pool and lap pool,gymnasium, clubhouse, children’s play area and barbecue pits.Some 106 units or 68% of the development have been soldduring its soft launch in 2006.Upcoming launchesReflections at Keppel BayReflections at Keppel Bay is the second phase of theresidential development in the Keppel Bay waterfront precinct.Designed by world-renowned architect Daniel Libeskind,Reflections at Keppel Bay is set to put Singapore on theworld map for luxury waterfront homes with its iconic anddistinctive design.This 1,129-unit condominium will feature six glass towers of24 storeys and 41 storeys as well as 11 blocks of6- to 8-storey villa apartments. The towers will all be toppedwith sky gardens on sloping roof lines. Sky bridges willconnect each pair of towers, providing pockets of openspaces high above the ground and platforms for appreciatingthe panoramic views of the sea and the lush surroundings.This iconic development will feature a sculpture-like clubhousewith a full range of recreational facilities to meet the lifestyleof discerning homeowners. Every detail and aspect of designwill optimise interaction with the sea and the commandingviews of its scenic surrounds including Mount Faber, KeppelClub Golf Course, Labrador Park, Sentosa Island and itsupcoming integrated resort, and the city skyline.The development is scheduled to commence marketing inearly April 2007 and will be completed in 2012. It will featurechoice units of 1- to 4-bedroom apartments and penthouseswith sizes ranging from 700 sf to a super penthouse of13,300 sf.102 Operations and market reviewSingapore – ResidentialKeppel Land LimitedReport to Shareholders 2006

Homeowners of this exclusive development will enjoy a10-year complimentary membership to the 170-berth Marinaat Keppel Bay when it is completed and opened in December2007. Located on Keppel Island and linked to the mainlandby a landmark cable-stayed bridge that will be completed inmid-2007, Marina at Keppel Bay will be able to accommodateyachts of between 100 and 200 ft long.Members will enjoy lifestyle facilities that include aclubhouse with a member’s lounge, gourmet restaurants,recreational amenities and leisure charter services to accessneighbouring islands.Future phases of Keppel BayKeppel Bay is a 30-ha waterfront precinct located just a5-minute drive away from the CBD. To be developed inphases, it is part of a vibrant waterfront precinct in southernSingapore comprising Sentosa Island and its upcomingintegrated resort, the HarbourFront office park and VivoCity.Caribbean at Keppel Bay is the first waterfront condominiumdevelopment within the Keppel Bay precinct. Reflections atKeppel Bay, the second phase of development, will cater toincreasing global demand for world-class waterfront homes.Three other residential plots, one of which is located onKeppel Island, are slated for development in future phases.Together, they will yield a total of over 600 residential units.The TresorThe Tresor will be an exclusive 5-storey condominiumdevelopment located within the prime District 10. Comprising62 units, this development will offer 2- to 4-bedroom unitswith sizes ranging from 990 sf to 2,190 sf. Facilities willinclude a swimming pool, clubhouse and gymnasium.Marketing of The Tresor is expected in the second half of 2007.Naga Court developmentThe 18-storey condominium development with modernarchitectural design and facilities, is conveniently located alongBukit Timah Road, a traditional exclusive residential enclave.The development will be a stone’s throw away from OrchardRoad and reputable schools such as Singapore Chinese Girls’School and Anglo-Chinese School (Barker Road).The 58-unit freehold development will offer 3- to 4-bedroomunits and exclusive penthouses with sizes ranging from1,500 sf to 4,120 sf. Facilities will include a swimming pool,clubhouse and gymnasium.The development is scheduled for launch in 2007.The Crest @ CairnhillLocated at the hilltop of Cairnhill Circle, the architecture ofthe 17-storey development is a statement of sheer elegance.The development is a short 5-minute walk to the OrchardRoad shopping belt and prestigious schools such as Anglo-Chinese School (Junior).This exclusive 15-unit development is designed with modernand efficient layouts with private lift lobbies for all units.Facilities such as a swimming pool, jacuzzi, gymnasium and afunction facility on the roof terrace will be provided. All unitswill have three bedrooms of about 2,000 sf in size. There willalso be a luxurious penthouse of approximately 2,820 sf insize at the highest floor of the development.The development is scheduled for launch in 2007.Nestled within an established private residential enclave inSingapore, The Tresor is conveniently located within closeproximity to a wide range of amenities such as HollandVillage. It also enjoys easy accessibility to town and majorexpressways. The development is close to premier schoolssuch as Nanyang Primary School, Raffles Girls’ PrimarySchool, Hwa Chong Institution, The Chinese High School,Nanyang Girls’ School and National Junior College.Operations and market reviewSingapore – ResidentialKeppel Land LimitedReport to Shareholders 2006103

Operations and market reviewUrbana will be one of the tallestSingapore condominiums – Residential in River Valley.Offering a sophisticated lifestylewith its proximity to the OrchardRoad shopping belt, Urbana ismore than 90% sold.UrbanaExisting residential propertiesUrbanaAt 36 storeys tall and boasting panoramic views of the city,Urbana will be one of the tallest condominiums in theRiver Valley vicinity when completed in 2007. This 126-unitdevelopment comes with full condominium facilities such asa tennis court, an infinity-edge swimming pool, a clubhouseand gymnasium. The development consists of 2- to 4-bedroomunits and penthouses, with unit sizes ranging from 1,000 sfto 3,200 sf.Urbana is conveniently located near the Orchard Roadshopping belt and the Somerset MRT station, as well as ashort drive away from the CBD. Some 119 units or 94% ofthe development have been sold as of end-February 2007.Freesia WoodsLocated in the quiet and tranquil Sunset Way, Freesia Woodsis easily accessible to Holland Village and a wide range ofamenities. Prestigious schools and tertiary institutions nearbyinclude Henry Park Primary School, Pei Hwa PresbyterianPrimary School, Methodist Girls’ School, Singapore Polytechnic,Ngee Ann Polytechnic and National University of Singapore.The 129-unit freehold condominium development featuresefficient layouts, private lift lobbies and smart home featuresto cater to modern living. It offers 1- to 4-bedroom units withfloor sizes ranging from 1,020 sf to 2,680 sf. The developmenthas a wide range of facilities, including a clubhouse, swimmingpool, tennis court, exercise stations, a reflexology path andjogging track. Some 117 units or 91% of the developmenthave been sold as of end-February 2007.The LincNestled within a prime and exclusive residential enclave,The Linc is a freehold development comprising 51 units of1- to 3-bedroom apartments with floor areas ranging from640 sf to 1,850 sf. Located at Lincoln Road, The Linc is ashort distance from the Newton MRT station and shoppingamenities around the Novena area. Many prestigious schoolssuch as Raffles Girls’ Secondary, Anglo-Chinese School(Barker Road) and St. Joseph’s Institution Junior School aresituated within its vicinity. It also enjoys easy access to theCBD and is near the Orchard Road shopping belt andprestigious social clubs like The American Club and TheTanglin Club.Lifestyle facilities include a swimming pool, children’s pool,gymnasium, barbecue area and children’s play area. Thedevelopment obtained Temporary Occupation Permit inJanuary 2006 and is 90% sold as of end-February 2007.Nassim WoodsLocated at Nassim Hill, Nassim Woods is nestled within awooded hillside amidst a distinguished neighbourhood offoreign embassies, country clubs, the Botanic Gardens, fivestarhotels and good-class bungalows. It is also a short walkaway from the popular and bustling shopping belt at Tanglinand Orchard Road, and a short drive to the Raffles Placefinancial district.104 Operations and market reviewSingapore – ResidentialKeppel Land LimitedReport to Shareholders 2006

This exclusive development offers 35 units of 3- and 4-bedroomapartments and penthouses for lease. Unit sizes range from1,970 sf to 6,400 sf set within Balinese-style landscapedgrounds. The development has facilities such as an outdoorjacuzzi, swimming and wading pools, a fully-equippedgymnasium, multi-purpose function room, steam roomsand a tennis court. Other amenities such as supermarkets,department stores, cinemas and local entertainment spotsare also close by.Nassim Woods has proven to be popular with expatriatesfrom Europe and the US, and enjoys near 100% occupancyas of end-February 2007.Market reviewEconomySingapore economy grows stronglyThe Singapore economy grew at a robust pace of 7.9% in2006, higher than the 6.6% growth in 2005. Growth wasgenerally broad-based with all sectors of the economyregistering positive growth during the year. The robusteconomy pushed employment creation to an all-timehigh of 176,000 new jobs, reflecting a 55% increase from113,300 jobs in 2005.Singapore’s economic outlook is generally positive asglobal economic conditions improve. Fears of a USeconomic slowdown have subsided with the recoveryin housing sales. Underpinned by strong businessconfidence, economic prospects for the EU have alsoimproved. In Asia, the twin economic powerhouses ofChina and India continue to drive growth around theregion. The Ministry of Trade and Industry expectsSingapore’s economic growth to remain healthy in 2007albeit at a more moderate pace of between 4.5% and6.5%. Downside risks to growth include threats of anAvian flu pandemic, terrorism and vulnerability of crude oilprices to supply shocks.Following the release of 2007 Budget, employers’contribution rate to the Central Provident Fund will beraised by 1.5% to 14.5% of wages with effect from 1July 2007 but this will be cushioned by a 2% cut in thecorporate income tax rate from 20% to 18% effectivefrom Year of Assessment 2008 to enhance Singapore’scompetitiveness in the region. The goods and servicestax (GST) will also be raised from 5% to 7% starting from1 July 2007. While the GST hike is expected to lead to aone-off increase in inflation, economists believe a morecompetitive tax structure will help to attract moreinvestments and talents to Singapore.Going forward, the remaking of Singapore will propel thecity-state to become a top First World nation and keep itahead of competition in a globalised world.Strategic initiatives such as the transformation of MarinaBay into a thriving cosmopolitan hub that integrates living,working and playing, the urban regeneration of housingestates and the creation of lush greenery aroundSingapore will make Singapore an economically vibrant,clean and green city for world-class living.Singapore 2005 2006 2007F 2008FReal GDP growth (%) 6.6 7.9 4.5–6.5 4.4Commercial banks’ prime rate (average, %) 5.3 5.3 5.5 5.7Inward FDI (US$ Bn) 20.1 21.7 21.8 22.2Exchange rate (S$/USD, average) 1.665 1.589 1.564 1.560Personal disposal income (US$ Bn) 70.1 77.0 82.1 86.1CPI change (average, %) 0.5 1.0 1.0 1.1Source: Economist Intelligence Unit and Singapore Department of StatisticsOperations and market reviewSingapore – ResidentialKeppel Land LimitedReport to Shareholders 2006105

Operations and market reviewSingapore – ResidentialMarket reviewResidentialMid-tier market to enjoy spillover demand2006 marked a bumper year for the Singaporeresidential market. According to Urban RedevelopmentAuthority (URA), take-up for new home sales was astrong 11,147 units in 2006, up 24.5% from 8,955 unitssold in 2005. The URA private residential price indexalso rose 10.2% in 2006, the fastest rate of growthsince 1999 and a considerable improvement over the3.9% gain in 2005.The appreciation in residential prices was led primarily bythe high-end segment, driven mainly by strongerdemand from foreign buyers and local high-net-worthindividuals. While Asians continued to dominate foreignbuying, it is notable that buyers are not just from theneighbouring countries of Malaysia and Indonesia butalso increasingly from China and India. Based on URAstatistics, Malaysian and Indonesian buyers accountedfor about 23% and 27% respectively of foreign purchasesin 2006 while buyers from China (including Hong Kong)and India made up about 7% and 6% respectively. Thereare also significant numbers of non-Asian buyers fromthe UK, the US and Australia.URA statistics also showed that speculative activityremains relatively healthy, with the proportion of sub-salesat 4.1% of total sales transactions in 2006 compared withsome 28% during the 1996 peak.The strong demand for high-end projects is evident fromKeppel Land’s launch of Marina Bay Residences, whichwas 100% sold within three days of its preview. Theluxurious development achieved an overall average sellingprice of approximately $1,950 psf. Transacted prices forthe five single-level penthouses were between $3,230 psfand $3,450 psf, setting new records for 99-year leaseholdresidential property prices in Singapore. The ‘uber’penthouse, one of the largest penthouses in recent times,was sold for $28 million. Local buyers includingpermanent residents made up approximately 60% of thedevelopment’s sales.Similarly, sales were brisk for other high-end developmentssuch as The Sixth Avenue Residences which was sold outwithin two weeks of its preview. The project achieved anaverage selling price of about $1,000 psf. Local buyersincluding permanent residents made up about 85% of theproject sales.In total, Keppel Land sold over 1,200 homes in 2006, morethan double its sales in 2005, positioning it among the topthree listed developers in residential sales in Singapore.In the light of the improved property market, thegovernment has withdrawn the concession to deferpayment of stamp duty in December 2006. With thiswithdrawal, stamp duty will have to be paid within 14 days ofexercising the option to purchase or the sales and purchaseagreement instead of upon completion of the project.Several key factors will drive the growth of the residentialmarket in the years ahead. With the government’scontinuous efforts to attract foreign investments andtalents, Singapore has seen an increasing inflow of foreignexpatriates, business entrepreneurs and investors as wellas overseas students flocking to the Republic. Such inflowof foreigners will be even more pronounced in future asthe government undertakes to make Singapore a trulyglobal city and sets its sight on achieving a population of6.5 million, a 44% increase from about 4.5 million now.As Singapore’s birth rate is well below the replacementrate, this population growth will have to be met largely byforeigners, which make up almost 20% of the currentpopulation as compared to 5.5% in 1980. This will creategreater demand for private residential properties and couldsignify a dramatic change in Singapore’s housinglandscape. Official statistics showed that the percentageof resident population staying in public HDB housing hasfallen to 82% in 2006 from 86% in 2000. This suggeststhat the percentage of private residences has increased106 Operations and market reviewSingapore – ResidentialKeppel Land LimitedReport to Shareholders 2006

Riding on the positive propertymarket, The Sixth AvenueResidences was sold out withintwo weeks of its preview.The Sixth Avenue Residencesover the last six years and such a trend is expected tocontinue as more foreigners are drawn to Singapore.The development of the new downtown into aninternational business and financial hub and the twointegrated resorts at Marina Bay and Sentosa Island willreinforce Singapore’s position as a must-visit destinationin Asia and a vibrant cosmopolitan city to live, work andplay. These developments and their economic spin-offswill play an instrumental role in stimulating the propertymarket and fuelling demand for housing.In addition, Singapore’s affluence level is growing fast.According to Merrill Lynch-Capgemini’s wealth report,the number of high-net-worth individuals in Singapore hasrisen 13.4% year-on-year to 55,000 in 2005 and about17% of their assets are invested in real estate. Continuedeconomic expansion and a growing wealth managementsector will have a positive bearing on the property market,especially the high-end and luxury residential segments.Beyond the rich and wealthy, household incomes of thegeneral population have also been rising, underpinnedby a buoyant economy and a better job market. A studyby the Department of Statistics revealed that averagemonthly income of Singapore resident households fromwork rose 6.2% year-on-year to $5,730 in 2006. Withrising income and improved consumer sentiment,upgrading demand is expected to increase, especiallyfor mass market residential developments.The Singapore residential property market is expectedto remain buoyant in 2007. Property consultants expectprices for new projects in the high-end and luxury-endsegments to increase by about 10% to as high as 25%in 2007 and will have spillover effects on the mid-tiermarket segment. Overall, residential property prices areprojected to increase by 5% to 8% in 2007.In 2007, Keppel Land has in its stable one of themost-awaited residential project launches in Singapore,Reflections at Keppel Bay. This is a unique iconic projectdesigned by the internationally-acclaimed architectDaniel Libeskind. This 1,129-unit development will havesix glass towers of 24 storeys and 41 storeys as well as11 villa blocks of six storeys to eight storeys high. Thedevelopment is part of the Keppel Bay precinct, whichoffers a truly waterfront lifestyle with a marina.Residential 2006 2005 % ChangeDemand (no. of new units sold) 11,147 8,955 24.5Supply (no. of new units available) 11,069 8,201 35.0Average condominium price ($ psf)– Islandwide 99-year leasehold 500 470 6.4– Islandwide freehold 590 535 10.3– Prime 950 780 21.8– Luxury 1,750 1,550 12.9– Luxury (under construction) 2,200 1,400 57.1Source: Urban Redevelopment Authority and CB Richard EllisOperations and market reviewSingapore – ResidentialKeppel Land LimitedReport to Shareholders 2006107

Operations and market reviewSingapore – Commercial108Keppel Land LimitedReport to Shareholders 2006

Keppel Land LimitedReport to Shareholders 2006109

Operations and market reviewSingapore – CommercialMarina Bay Financial CentreOfficeMarina Bay Financial CentreThe Marina Bay Financial Centre (MBFC) represents the nextphase of development in the transformation and extension ofSingapore’s CBD to Marina Bay. The upcoming Marina BaySands Integrated Resort in the vicinity will further enhanceits attraction as the choice location for local and internationalfinancial institutions as well as multinational corporations.Jointly developed by Keppel Land, Cheung Kong (Holdings)and Hongkong Land, and designed by internationally renownedarchitects Kohn Pedersen Fox Associates, MBFC is a showcaseof top-notch masterplanning and contemporary urban design,providing an integrated live-work-play environment for a24/7 lifestyle.Phase One of MBFC will comprise two office towers of33 storeys and 51 storeys, providing a total of about1.6 million sf of net lettable office space, 428 units of luxuryhomes at Marina Bay Residences, and complementary retailand recreational facilities. Construction of the developmenthas already started and is scheduled for completion in 2010.Upon completion, the development will be linked via its ownunderground pedestrian network to the new Landmark MRTstation of the Downtown Extension of the Circle Line, aswell as the Raffles Place MRT station, which serves theNorth-South and East-West Lines.Reflecting confidence in the property market and the futuredevelopment of Singapore as a key financial centre in Asia,the consortium has exercised its option to purchase PhaseTwo of the site from the government. Phase Two will add afurther 194,000 sm (2.1 million sf) of gross floor area and willcomprise both Grade A office and high-end residentialcomponents.With total gross floor area of over 4.7 million sf, the entireMBFC development will be one of the largest integratedcommercial and residential developments in Singapore, andits unique combination of premier office space, luxuryresidences and retail and recreational facilities will contributesignificantly to fulfilling Singapore’s vision of creating aninternational business and financial hub, and injecting avibrant 24/7 waterfront lifestyle at Marina Bay.One Raffles QuayOne Raffles Quay (ORQ), which was developed by the sameconsortium partners in MBFC, was fully pre-committed evenprior to its completion in 2006. The prime Grade A officebuilding located at the gateway to the new downtown atMarina Bay received Temporary Occupation Permits forthe South Tower and the North Tower in April and October2006 respectively. It is the preferred office location for manyblue-chip tenants such as ABN AMRO, Deutsche Bank, UBS,Ernst & Young, Barclays Capital and Credit Suisse.110 Operations and market reviewSingapore – CommercialKeppel Land LimitedReport to Shareholders 2006

One Raffles QuayThe 50-storey North Tower has about 767,000 sf of lettablespace and typical column-free floor plate of about 18,000 sf.Linked by a landscaped, spacious double-volume plaza is the29-storey South Tower, offering about 565,000 sf of columnfreespace with large regular floor plates of about 30,000 sfthat allow maximum flexibility and efficiency. Tailored to theneeds of financial businesses, the South Tower is designedwith extra headroom, power and higher raised flooring.ORQ also has an underground air-conditioned linkway featuringretail and food and beverage outlets. Commuters enjoy greatconvenience with this seamless connection to the RafflesPlace MRT station.Raffles Place office portfolioFollowing the sale of Prudential Tower (approximately 44%of the strata area of the building), Bugis Junction Towers,Keppel Towers and GE Tower to K-REIT Asia in April 2006,Keppel Land’s premier office portfolio in the Raffles Placefinancial district now comprises Ocean Building, OceanTowers and Equity Plaza. These three office buildings areeasily accessible by the Raffles Place MRT station and arewithin close proximity to the new downtown.In July 2006, Keppel Land raised its stake in Equity Plaza to64.6% from 35.4% by acquiring a 29.3% interest fromSumitomo Corporation and Sumitomo Corporation (Singapore).The acquisition allows the Group to consolidate its stake inthe prime office building for eventual realisation of its value.Keppel Land will be redeveloping Ocean Building to capitaliseon its location overlooking the new downtown.HarbourFront office parkThe HarbourFront office park, comprising Keppel Bay Tower,HarbourFront Tower One and HarbourFront Tower Two,plays a pivotal role in the transformation of the HarbourFrontprecinct into a vibrant commercial and recreational hub.Close by, the VivoCity retail and entertainment mall openedfor business in October 2006. The upcoming integratedresort at Sentosa Island, which will include a UniversalStudios theme park, will be ready in 2010 and is poised toadd more vibrancy to the HarbourFront precinct.Operations and market reviewSingapore – CommercialKeppel Land LimitedReport to Shareholders 2006111

Operations and market reviewSingapore – CommercialMarket reviewOfficeFurther upside envisaged for office marketDriven primarily by new and expansionary demandfor prime office space from banking and financialinstitutions, as well as companies in the fields of logistics,oil and information technology (IT), the Singapore officemarket continued to strengthen throughout 2006. Take-uprose to 2.4 million sf from 1.96 million sf in the previousyear, the highest take-up since the IT boom in 2000.In contrast to strong demand, office availability is tight,with net supply up by only 0.69 million sf in 2006. Robustoffice demand coupled with tight supply pushed up GradeA office occupancy to 99.2% as at end-2006 from 92.5%in the previous year. Similarly, Grade A office rent surgedby 53.1% to $8.73 psf per month as at end-2006 from$5.70 psf as at end-2005.Based on CB Richard Ellis’s Global Market Rents surveyin November 2006, Singapore has moved up its ranking bysix notches to 37 th position from 43 rd place in May 2006.Nonetheless, Singapore remains cost competitive relativeto other key Asian cities such as Tokyo, Hong Kong,Mumbai, New Delhi and Seoul.With continued economic growth and businessexpansion, the outlook for the office leasing marketremains positive. Office demand is expected to remainstrong while no significant new supply is forecast over thenext few years until MBFC (Phase One) is ready in 2010.Between 2007 and 2009, new office supply is estimatedto average about 0.6 million sf per annum, which issignificantly below the historical average take-up. The tightsupply situation is further compounded by the reduction ofover 1 million sf in existing supply due to redevelopmentplans of several office buildings within the CBD.Given strong demand drivers and limited new supply,office occupancy and rentals are poised to go up furtherover the next few years. Property consultants havepredicted further rental growth of between 25% and 30%in 2007.In the investment market, strong buying interest fromproperty funds, real estate investment trusts andend-users has boosted prime capital value by 50% yearon-yearto average $1,500 psf in 2006. Underpinned bystrong leasing activity and prospects of further rentalgrowth, capital value is expected to continue to ride onthe uptrend.Office 2006 2005 % ChangeDemand (mln sf) 2.40 1.96 22.4Net supply (mln sf) 0.69 -0.30 nmAverage islandwide occupancy rate (%) 89.7 87.2 2.9Average Grade A rental rate ($ psf/mth) 8.73 5.70 53.1Average prime capital value ($ psf) 1,500 1,000 50.0Source: Urban Redevelopment Authority and CB Richard Ellis112 Operations and market reviewSingapore – CommercialKeppel Land LimitedReport to Shareholders 2006

With its excellent track record,Alpha Investment Partners islooking to launch two new fundsin 2007.Vanguard, TokyoProperty fund managementAlpha Investment PartnersDelivering good returns to investors and shareholdersAlpha Investment Partners (Alpha) continues to delivergood returns to its investors and shareholders. All the fundsunder Alpha‘s management continue to exceed returnsexpected by investors. This strong performance is a resultof active management to achieve higher income from itsportfolio of properties and gains from divestments, as well asappreciation in property value. With a strong focus on assetmanagement, Alpha aims to maximise income and achievevalue enhancement for its funds.In 2006, Alpha made 18 acquisitions, bringing the total valueof assets under management (AUM) to $2 billion as at end-2006, up from about $980 million as at end-2005. AUM isexpected to be more than $4 billion when all the funds arefully leveraged and fully invested. The pace of acquisitions isexpected to continue into 2007 given the positive outlook forreal estate markets in Asia.Asia No.1 Property Fund, which is an opportunistic fund jointlymanaged with Henderson Global Investors, has achievedgood returns on its investments. As at end-2006, the fund’sreturn was well in excess of its target internal rate of return(IRR), partly due to substantial capital gains realised from thesale of two investments. The investments made by the fundhave generated good income and capital value growth. Alphawill undertake to divest some of these investments at theopportune time.Alpha Core Plus Real Estate Fund concluded its final closingin March 2006 with total equity of about $720 million,exceeding its target of $412 million. Alpha has successfullyinvested about 65% of the fund’s equity in 18 propertiesacross Japan, Singapore, Hong Kong and South Korea as atend-2006. Alpha is targeting to invest the remaining equityby end-2007 so as to capitalise on the improving real estatemarkets in Asia. Of equal importance, Alpha will strive tomanage the acquired assets well to achieve the expectedyields from investments.Alpha has also secured its first Shariah compliant mandatefrom a Middle Eastern investor to manage an existingportfolio in Asia. The portfolio of Shariah compliant propertieshas also performed well during the year, enjoying highoccupancy and strong rental growth, and offering a goodreturn to the investor. The strong performance of the Shariahcompliant portfolio has also benefited Alpha as its assetmanagement fee is pegged to the performance of the portfolio.Alpha has divested one of the properties in the portfolio inaccordance with the agreed portfolio repositioning strategy.As part of this strategy, Alpha will help to secure newinvestments that will be accretive to the portfolio return.Backed by seed investment from a corporate sponsor andco-investment capital from the senior management ofAlpha, the company started a small real estate securitiesfund in early 2004 to invest in listed real estate investmenttrusts (REITs) and property stocks globally. This fund wasOperations and market reviewSingaporeKeppel Land LimitedReport to Shareholders 2006113

established with the foresight of strong growth in REITsaround the world, especially in Asia. This fund has sinceexceeded its targeted performance, achieving an annualisedreturn of more than 39% per annum since inception. Withsuch an excellent track record, Alpha will soon be openingthe fund to other investors.On track to becoming a multi-product platformAlpha has met its short-term goal of building a real estatefund management platform that delivers good investmentperformance to its investors and creates value for itsshareholders. The platform is scalable and Alpha is nowrepresented in two key Asian markets following theestablishment of local offices in Tokyo and Seoul.The company is on track to becoming a multi-productplatform catering to different investment preferences andrisk appetite of investors. When developing new products,Alpha will remain sensitive to investors’ needs and willensure that investors’ interests are not compromised.Alpha has identified Australia, China and India as potentialmarkets to establish local platforms for fund raising andinvesting. A platform in China is planned for 2007 to betterserve investment needs in this fast-growing Asian economy.In addition, Alpha is looking to launch two new funds in 2007.Asia will remain the centre of attraction for capital seekinginvestment in real estate products. This will invariablylead to competition for good assets and potentially drivingup property prices. Alpha is mindful of this risk and willcontinually develop new fund products with investmentstrategy that is founded on strong real estate economics andbacked by sound research and market intelligence.K-REIT AsiaAdditional platform to grow fee-based incomeKeppel Land achieved a new milestone when it sponsoredthe establishment and listing of K-REIT Asia on the SingaporeExchange by way of an introduction on 28 April 2006. K-REITAsia was established with the objective of generating stablereturns to unitholders by owning and investing in a portfolioof quality real estate and real estate-related assets whichare income producing and are predominantly used forcommercial purposes.With an initial portfolio of four prime office buildings –Prudential Tower (approximately 44% of the strata area of thebuilding), Keppel Towers and GE Tower, and Bugis JunctionTowers – K-REIT Asia has performed beyond expectations.Performance exceeds forecastsFor the period from 26 April to 31 December 2006,K-REIT Asia achieved a distributable income of $11.2 million,exceeding its forecast by 23.9%. Net property incomeoutperformed forecast by 11.3% to reach $16.8 million.Annualised distribution per unit was 6.76 cents, higher thanforecast by 24.5%.114Operations and market reviewSingaporeKeppel Land LimitedReport to Shareholders 2006

K-REIT Asia aims to grow intoa pan-Asian commercial REITthrough potential acquisitionsof investment-grade propertiesin the region.Keppel TowersAs at end-2006, K-REIT Asia’s property portfolio wasrevalued to $677 million from its initial portfolio value of$630.7 million. After accounting for the revaluation surplus,its net asset value improved from $1.82 per unit as at end-September 2005 to $2.04 per unit as at end-2006. K-REITAsia’s leverage ratio also improved from 30% to 27.4% overthe same period.As at 31 December 2006, K-REIT Asia achieved 100%committed occupancy for its entire portfolio. A robust officemarket, the prime location of the properties and effectivelease management resulted in higher occupancies and rentalrates for the portfolio, which translated to steady growthin net property income throughout 2006. In anticipation ofcontinued strong market demand for office space coupledwith limited new supply over the next few years, rentals arepoised to continue to rise. Riding on the market uptrend, theManager of K-REIT Asia will continue to look into ways toincrease leasable area to raise property income, thus addingfurther value to its properties.K-REIT Asia’s unit price performance during the year affirmsinvestors’ confidence in its growth potential. Featuring a qualitycommercial property portfolio, K-REIT Asia is well-positionedto achieve further growth and better returns through proactiveasset management and potential acquisitions of assets,which is further supported by a buoyant office market.In line with its objective of becoming a pan-Asian commercialreal estate investment trust, K-REIT Asia has been activelyexploring strategic acquisition opportunities in Singapore aswell as other growth cities in Asia.K-REIT Asia aims to grow its asset size to $2 billion over thenext few years, through potential asset acquisitions fromthird-party vendors and from its sponsor Keppel Land, whichin turn has a strong portfolio of investment-grade commercialproperties in Singapore and the region.Maximising returns to unitholdersSince its listing on 28 April 2006, K-REIT Asia has been wellreceived by the market as evident from the appreciation in itsunit price. As at 29 December 2006, K-REIT Asia’s unit pricehas appreciated 140.4% to $2.50 from its opening price of$1.04 on its first trading day. Together with total distributionpayout of 4.63 cents for the year, total returns to unitholderssince listing amounts to 144.8%.Operations and market reviewSingaporeKeppel Land LimitedReport to Shareholders 2006115

Operations and market reviewMarket reviewReal estate fundsCross-border investments in real estate continue to growas more countries across the globe increasingly open uptheir property markets to foreign investors and global realestate funds are growing by leaps and bounds.According to a survey conducted by DTZ Research, overhalf of the top real estate investors surveyed hold foreignreal estate assets in their portfolio. The survey also showsthat over half of those investors who currently have notinvested overseas plan to invest abroad within the nextthree years.The motivation for these investors to go global is toreap the benefits of geographical diversification andto seek higher yields and better growth prospectoverseas, especially in Asian real estate markets. Thisis not surprising considering that capitalisation rates ofcommercial properties in major markets around the worldsuch as the US, the UK, Europe, Australia, Japan, HongKong and Singapore are converging at around 5%, withcapitalisation rates for prime properties in CBD at below5%. For example, US investors who previously did notsee the need to invest outside of North America are nowlooking outside the US.Another factor that is driving cross-border real estateinvestments is improving market transparency. The 2006Real Estate Transparency Index published by JonesLang LaSalle shows that 10 countries have achieved thehighest “Tier 1” Transparency level, up from six in 2004.Included in this “Tier 1” list are Australia, Singapore andHong Kong. The other Asian countries that have madesignificant improvement in transparency are Japan andIndia. While higher transparency will help to attractforeign real estate capital, it is also the growth in foreigninvestments that is fuelling the rapid improvement intransparency of a market. Hence, there is a compoundingeffect that bodes well for the industry.Asia remains a magnet to global investors as strongeconomic expansion will drive sustained growth in the realestate market. Asia will continue to benefit from higherinflow of real estate investment capital from funds all overthe world and from increased allocation to Asia by globalreal estate funds. As these foreign capital is likely to beinvested in real estate funds with an Asian mandate orthrough partnerships with Asian fund managers, the keybeneficiaries will be real estate fund managers who havebuilt a strong track record of investing in Asia.Real estate investment trustsAlongside the uptrend of the Singapore property market,the real estate investment trust (REIT) sector has alsoflourished tremendously in 2006. During the year, eightREITs were floated on the Singapore Exchange, bringingthe total number of publicly-listed REITs in Singapore to15. Total market capitalisation of Singapore-listed REITshas also ballooned from about $1.2 billion in December2002 to $25.5 billion in February 2007. More REITs areexpected to be listed on the Singapore Exchange in 2007.According to statistics compiled by AME Capital,Singapore is the largest REIT market in Asia after Japan,accounting for 1.85% of the global market for REITs as atend-2006. In terms of return on investments for the REITmarket, Singapore is the third best performer in the worldwith a return of 47.15% in 2006 after France and Thailand.Singapore is rapidly building up its reputation as a REIThub and the location of choice for cross-border andpan-Asian REITs. As the Asian region continues to grow,more offshore assets are likely to be listed in Singaporeby local as well as foreign sponsors. Findings by JonesLang LaSalle revealed that Australian REITs are showingincreased interest in Asia as a source of growth due tothe level of maturity of the Australian REIT market. Morethan 60% of the investment-grade properties in Australiaare already acquired by REITs or private property funds ascompared to about 10% in Asia. With a largely untappedasset pool, many REITs and real estate funds from abroadare attracted to Singapore.In addition to availability of assets, Singapore also offersan established REIT infrastructure, strong interest frominstitutional and retail investors, high degree of transparencyand good corporate governance, sound asset and fundmanagement expertise as well as in-depth coverage byresearch analysts. With the growth of the Asian regionand investment funds from institutional investors, moreoffshore entities are expected to list in Singapore.With the influx of new REITs, there is increasedcompetition for quality assets. Private property funds havealso added to the strong demand for prime commercialbuildings. Increased pressure for value-adding acquisitionswill compel REITs to be more dynamic and efficient,which will ultimately benefit the industry as a whole.116 Operations and market reviewSingaporeKeppel Land LimitedReport to Shareholders 2006

Keppel DigihubData centresA wholly-owned subsidiary of Keppel Land’s e-business unit,Keppel Digihub operates a 23,000-sf data centre and disasterrecovery facility at Serangoon North.The data centre provides a secure environment for thehousing of computing infrastructure for businesses andcaters to the co-location needs of enterprises. The disasterrecovery facility comes complete with workstations, officeappliances, communication devices and Internet access.To further ensure that the processes and operatingprocedures for its data centre and disaster recovery facilitiesconform to industry best practices, Keppel Digihub embarkedon an exercise to achieve certification to SS 507:2004Singapore standard for business continuity/disaster recovery(BC/DR) service providers and received certification to thisstandard in December 2006.In 2006, Keppel Digihub secured renewals and contracts foradditional data centre space from its existing clients. Withoccupancy of its data centre at 85%, it is planning to upgradeits infrastructure to support additional data centre spacerequired to meet increasing demand.To date, Keppel Digihub has established an enviable trackrecord of zero downtime for its data centre facilities over itssix years of operations, creditable customer references andsecured industry certification for the provisioning of BC/DRfacilities and services. With its good track record and highquality standards, it is well-positioned to capitalise on theexpected increase in demand for such facilities and services.Market reviewData centresWith continued support from government agencies suchas the Infocomm Development Authority of Singapore inpromoting Singapore as an ideal location for high-endbusiness process outsourcing services, including BC/DRservices, demand for data centre space will remainhealthy. With lingering concerns over a possible outbreakof Avian flu and terrorism threats, demand for data centreand disaster recovery facilities is expected to remain robust.Disruption of power supply in certain parts of Singapore inDecember 2006 also highlights the need for a fail-safeenvironment for housing computing infrastructuresupporting mission critical applications. This is especiallycrucial for companies in the financial services sector andmultinational corporations. With the continued high costof energy and a tighter supply of available data centrefacilities, co-location rates are expected to trend higher.Operations and market reviewSingaporeKeppel Land LimitedReport to Shareholders 2006117

Operations and market reviewSingaporeSedona Hotels draw visitors withits warm Asian hospitality.Hospitality managementSedona Hotels InternationalOpening of Hotel Sedona ManadoSedona Hotels International (Sedona Hotels), the hospitalityarm of Keppel Land, currently manages about 1,300 hotelrooms and serviced apartments in Vietnam, Indonesia,Myanmar and Singapore. Sedona Hotels takes pride inoffering its guests the finest level of comfort and servicewith a touch of the warm Asian hospitality.Sedona Hotels has expanded its presence with the soft-openingof Hotel Sedona Manado in Indonesia in November 2006.The 247-room Hotel Sedona Manado is the only internationalfive-star resort hotel in Manado, Indonesia.Proactive marketing strategies2006 was a good year for Sedona Hotels. Online bookingshave increased with the revamp of its corporate website(www.sedonahotels.com.sg). Sedona Hotels reviews andupdates regularly its website to provide the latest informationand promotions targeting the international audience.Membership of the Sedona Email Club has also grown innumber, with a high level of interest from the virtual worldin search of more information about Sedona Hotels and itspromotional packages. This has certainly created anothersegment of travellers for Sedona Hotels.Sedona Hotels focuses on strategies predominantly targetingthe leisure market segment with ongoing marketingprogrammes with major trade partners like airlines, travelagencies, various web portals and credit card companies.Plans and strategies are drawn up to attract travellers and toenhance their stay at the hotels and serviced apartments ofSedona Hotels. Such co-operative programmes help to raiseawareness of Sedona Hotels’ offerings and in turn generatemore business deals.There is also strong demand from the corporate marketsegment. Multinational corporations, dignitaries from variousgovernment bodies as well as embassies have chosenSedona Hotels as their preferred choice of stay.Strengthening market presenceEnhancing the Sedona brand, Sedona Hotels has venturedinto above-the-line advertising including print advertisementsin local newspapers as well as inflight, consumer traveland travel trade magazines to reinforce its presence in thehospitality and tourism industry. The main message on theseprint advertisements is to emphasise, enhance and elevatethe Sedona brand as well as to raise the profile of each of itsproperties in their respective locations.118Operations and market reviewSingaporeKeppel Land LimitedReport to Shareholders 2006

Sedona Hotels is the preferredchoice of stay amongmultinational corporations,dignitaries and the expatriatecommunity.To expand its network and increase communication with theinternational markets, Sedona Hotels attended major tradeshows such as Asean Tourism Forum in Davao, Asia DiveExpo in Singapore and International Tourism Bureau in Berlin,all of which have yielded positive brand impression.Strong growth in global travel and tourismThe global travel and tourism trade has seen a significantimprovement in 2006, recording a 4.5% growth in arrivalsto 842 million. It has exceeded expectations, making 2006 anew record year for the industry.International tourism and travel will remain strong in 2007.Despite the threats of terrorism, Avian flu and volatility incrude oil prices, worldwide travel remains optimistic. As forthe Asia-Pacific region, there has been tremendous growthin 2006 due to the quick recovery measures taken to boostconsumer confidence and travelling, in particular to Thailandand Maldives after they were hit by tsunami in 2004.Travelling within the region has become more convenientowing to the proliferation of budget carriers. This has boostedthe volume of leisure, corporate and business travel. Withbetter economic and business prospects, travelling has becomemore affordable and frequent.VietnamNearly 3.6 million international tourists visited Vietnam in2006, an increase of 3% against 2005. Most of them werefrom South Korea, China, Japan, the US, Canada, Germany,Malaysia, Thailand and Singapore. For 2007, the number ofinternational arrivals in Vietnam is expected to increase by16% to 18%.Vietnam continues to be viewed as an attractive, safe andfriendly place for travellers. According to a survey by theWorld Travel & Tourism Council, Vietnam has been listedamong the top 10 destinations in terms of world travel andtourism growth forecast for the period from 2007 to 2016.Vietnam’s recent accession into the World Trade Organisationhas opened up prospects for the development of its tourismindustry. However, main challenges such as tourism productsand service levels will have to be addressed to expedite theindustry’s development.Host to many multinational corporations, governmentbodies and leisure travellers, both Sedona Hotels’ servicedapartments in Vietnam, Sedona Suites Ho Chi Minh Cityand Sedona Suites Hanoi, have been long-time winners ofVietnam Economic Times Magazine’s Guide Awards for theBest Business Serviced Apartment, Ho Chi Minh City andBest Luxury Serviced Apartment, Hanoi respectively.Operations and market reviewSingaporeKeppel Land LimitedReport to Shareholders 2006119

Operations and market reviewSingaporeWith full facilities and strategiclocation within Keppel Bay,Caribbean Residences continuesto experience strong rentaldemand and high occupancy rates.Caribbean ResidencesAs the market leader in their respective locations, bothSedona Suites Ho Chi Minh City and Sedona Suites Hanoicontinue to experience healthy occupancy rate of at least95% in 2006 and are poised to improve their performance in2007 as business and leisure travel continues to grow.MyanmarPersistent economic sanctions against this military-ruledcountry have not deterred tourist arrivals in Myanmar. Touristarrivals rose slightly to 660,206 visitors in the fiscal yearended March 2006. With its rich cultural heritage and naturalbeauty, Myanmar has attracted many European visitors tothe country.Offering an idyllic view of the Inya Lake, Sedona Hotel Yangonis conveniently located within close proximity to the famousShewedagon Pagoda, city centre, airport and other culturalattractions. The hotel is the preferred choice of stay for manydignitaries, multinational corporations and leisure travellers.Sedona Hotel Yangon achieved an occupancy rate of 79%for the 175 rooms in operation. Food and beverage saleshave improved with continuous creative promotions coupledwith aggressive marketing strategies adopted with variousprogrammes in partnership with airlines, trade partners andhotel stay packages.Strategically located within the city, Sedona Hotel Mandalayoffers a good view of the magnificent Mandalay Hill and themajestic Royal Palace. As the choice hotel, it has played hostto many official delegates from different countriesand embassies.For 2006, Sedona Hotel Mandalay achieved full occupancyfor the 56 rooms in operation. With the relocation ofMyanmar’s capital from Yangon to Naypyidaw, the hotel hasseen an increase in government events, resulting in betterfood and beverage sales during the year.Leveraging the Sedona brand name in Myanmar, strategicalliances with airlines and travel agents, aggressive crosssellingbetween the two hotels and constant promotionthrough the Internet and travel publications, both SedonaHotel Yangon and Sedona Hotel Mandalay are expected toimprove on their performance in 2007.SingaporeSingapore attracted a new record of 9.7 million visitors in2006. This was above the Singapore Tourism Board’s targetof 9.4 million visitors, and 9% higher than 2005.Singapore, which has successfully hosted the 2006 AnnualMeetings of the Boards of Governors of the InternationalMonetary Fund and World Bank Group in September 2006,is set to attract more meetings, incentives, conventions andexhibitions (MICE) business.120Operations and market reviewSingaporeKeppel Land LimitedReport to Shareholders 2006

The growth of the Asia Pacific tourism market, fuelled bythe growing middle class in China, India and the ASEANcountries as well as the emergence of budget airlinespresent significant opportunities for Singapore to attractmore business and leisure travellers from around the region.The two integrated resorts at Marina Bay and Sentosa Islandhave strategic objectives of enhancing Singapore’s reputationas a premium destination for leisure and business visitors.The Singapore Tourism Board is expected to maintain itsstrategy of driving higher tourist spends and longer stay byactively creating more new and exciting tourism productsand experiences for visitors.Given its location within the Keppel Bay precinct and nearthe CBD, Caribbean Residences has experienced strongrental demand. The 168 units achieved near full occupancyand good rental rates.Properties managed by Sedona Hotels InternationalCountry Name of Property Location No. of RoomsIndonesia Hotel Sedona Manado* Manado 247Myanmar Sedona Hotel Yangon Yangon 366Sedona Hotel Mandalay Mandalay 247Singapore Caribbean Residences Singapore 168 #Vietnam Sedona Suites Ho Chi Minh City Ho Chi Minh City 89Sedona Suites Hanoi Hanoi 175Total 1,292* Soft-opened in November 2006# Include two units used as officesOperations and market reviewSingaporeKeppel Land LimitedReport to Shareholders 2006121

Operations and market reviewOverseas

Operations and market reviewChinaOne Park Avenue, ShanghaiShanghaiPark AvenuePark Avenue precinct, sitting on a sprawling 9.6-ha sitein the prime Jingan District of Shanghai, comprises threecondominium projects, namely One Park Avenue, 8 ParkAvenue and Park Avenue Central. It will yield more than2,500 condominium units when fully completed.Park Avenue is strategically located at the heart of downtownShanghai with close proximity to Jingan Si Metro Linestation, Nanjing West Road commercial belt and premieroffices, shopping centres and major hotels. These includethe Portman Ritz Carlton and JC Mandarin hotels, Plaza 66,Citic Centre shopping mall, Kerry Centre office building,the Shanghai Exhibition Centre as well as the ShanghaiFirst Centre Primary School, one of Shanghai’s top primaryschools. The upcoming Wheelock Plaza and Shangri-La HotelPuxi will also add appeal to the precinct.One Park AvenueOne Park Avenue, Keppel Land’s maiden premier residentialdevelopment in Shanghai, comprises 1,118 apartments,complete with a full-facility clubhouse. All units have beenfully sold in 2003 and handed over to the buyers in 2005.8 Park AvenueThe second project in the Park Avenue precinct, 8 ParkAvenue, comprises 10 high-rise blocks with a total of946 apartments. Designed by renowned architectPalmer & Turner Architects and landscape specialist BeltCollins International, the project will provide elegant waterfeatures, lush landscaping, an underground full-facilityclubhouse including an Olympic-length indoor heatedswimming pool, a jacuzzi, a sauna, a steam bath, a spa,a gymnasium and tennis courts.All 456 units in the first five blocks have been sold. Of these,three blocks were completed and handed over to the buyersin 2006. The remaining blocks will be launched progressivelyfrom the second half of 2007.Park Avenue CentralKeppel Land is currently planning Park Avenue Central, thethird and final project in the Park Avenue precinct. It mayinclude some retail space to capitalise on its close proximityto the future No. 7 Metro Line station, which will startoperations in 2009.Villa RivieraVilla Riviera, Keppel Land’s first villa development inShanghai, will comprise 168 units of villas, semi-detachedand terraced houses on a 15.4-ha site located in Xujing Town,Qingpu District in the southwest part of Shanghai. Thisproject is about 30 minutes’ drive to the People’s Square inthe city centre via the A5 Highway and Yan An Expresswayand approximately 9 km west of the Hongqiao InternationalAirport. Xujing Town is an established villa zone with asizeable expatriate population.124 Operations and market reviewChinaKeppel Land LimitedReport to Shareholders 2006

China’s housing market willgrow further, with stronghousing demand driven byrobust economic fundamentals,increasing income, continuedurbanisation and affordablemortgage financing.The Botanica, ChengduSoft-launched in November 2006,Villa Riviera has sold half of itslaunched units.Villa Riviera, ShanghaiThe development will have a full-facility clubhouse comprisinga heated swimming pool, a gymnasium, tennis courts andfunction rooms. Surrounding amenities also include theFrench-German International School, the Soong Qing LingPrimary School and the upcoming American International School.Villa Riviera was named Asia’s Best Metropolitan Villa in 2006by several renowned international agencies including theUnited Nations Residential Environment Development PromotionAssociation and International Land Agent Association. Theproject was soft-launched in November 2006 and half of the40 launched units has been sold as at end-February 2007.BeijingThe SeasonsThe Seasons is a high-rise residential developmentstrategically located at the western section of the WangJing Estate, the largest planned township in Beijing witha planned population of 350,000. Many large multinationalcompanies have set up operations in this estate, includingSiemens, Nortel, National, LG, Samsung, Lucent, Wal-Martand Carrefour. IKEA has also established its second largeststore in the world there. In addition, Sony Ericsson andMotorola will be opening their research and developmentcentres in Wang Jing Estate. These developments willfurther enhance the appeal of The Seasons.Situated next to the city’s green belt and golf course, TheSeasons is well connected to various parts of the city via theNorthern 4 th Ring Road, the Airport Expressway, the Jing-ChengExpressway, the No. 13 Metro Line, as well as the futureNo. 10 Metro Line.The project comprises 1,859 units of quality homes withfull finishes. Clubhouse facilities include an Olympic-lengthheated swimming pool, tennis court, a childcare centre,retail establishment and a 35,000-sm landscaped garden.As of end-February 2007, 98% of the 1,775 launched unitshas been sold.ChengduThe WaterfrontThe Waterfront is Keppel Land’s maiden residential developmentin Chengdu. It comprises a total of 1,143 units, complete withfull facilities including a heated swimming pool, tennis courts,a mini-mart and a childcare centre.Located on a 41-ha site at southeast Chengdu, The Waterfrontis about 10 minutes’ drive from the city centre. It commandsa 150-m wide frontage of the Funan River, with the SichuanUniversity Campus and the historic Wang Jiang Lou Gardenon the opposite bank of the river. In the vicinity are amenitieslike schools, public transportation, shopping facilities and theShangri-La Hotel.To be completed in 2007, about 95% of the units has beensold as at end-February 2007.Operations and market reviewChinaKeppel Land LimitedReport to Shareholders 2006125

Operations and market reviewChinaThe Waterfront received numerous awards in 2006, includingTop 30 Brands in Chengdu Property Market from the ChengduStatistics Bureau and Top 20 Best Selling Residential Projectsin Chengdu jointly awarded by the Chengdu PropertyAssociation and the Chengdu Housing Bureau.The BotanicaThe Botanica is a 42-ha residential township in southeastChengdu, developed by CityOne Township Development,a 50:50 joint venture between Keppel Land and SurbanaCorporation (formerly known as HDB Corporation). Locatedat the junction of the 3 rd Ring Road and Cheng Long Road,the township is next to the proposed new eastern suburbanadministrative centre of Chengdu.To be developed over five phases, The Botanica will yieldabout 8,200 residential units, spread over a mix of lowandhigh-rise apartment blocks. The township will alsocomprise commercial buildings and supporting amenitieslike kindergartens, a primary school, clubhouses, recreationalfacilities, parks, a market and carpark facilities.In 2006, The Botanica was named among the Top 20Best Selling Residential Projects in Chengdu by theChengdu Property Association and the Chengdu HousingBureau. The China Property Developers Association alsonamed the developer of The Botanica among Top 10Developers in Chengdu.Phase One comprising 970 residential units has been fullysold. Phase Two, comprising about 1,500 units, has beenprogressively launched since April 2006. As at end-February2007, about 91% of the 1,150 launched units has been sold.The rest of Phase Two and another 600 units in the futurephases are expected to be launched in 2007.KunmingSpring City Golf & Lake ResortSpring City Golf & Lake Resort is a world-class golf resortwith scenic mountain and lake views and spring-like climateall year round. Located at the East shore of Lake Yang ZongHai, it enjoys convenient access to the Kunming city centrevia the Kunming-Stone Forest Expressway and the KunmingAirport, which offers direct flights to Singapore, Macau,Hong Kong, Bangkok, Chiangmai, Yangon, Osaka, Seoul,Kuala Lumpur and major Chinese cities.In 2007, Spring City Golf & Lake Resort was awarded theInternational Star Award for Quality – Gold Category forimplementing and promoting quality culture by BusinessInitiative Directions, a private organisation from Madrid,Spain. It was also named China’s Leading Golf Resort forthe second consecutive year at the 12 th World Travel Award2006, and was bestowed Best Golf Course in Asia and BestGolf Course in China by Asian Golf Monthly and My FavouriteGolf Club in China and Best Caddy Service Golf Club in Chinaby China Golf Awards.In 2007, Spring City Golf & Lake Resort will launch theLa Quinta Collection, a resort home development comprising25 luxury villas and 18 apartments. Another residential estateadjoining the golf course comprising about 100 villas andtownhouses is also in the pipeline.TianjinThe ArcadiaKeppel Land is developing a villa development on a 13.3-hasite in Jinnan District in Tianjin. Located at the junction of theOuter Ring Road and Weishan Road, the project is about12 km from the city centre and 4.5 km from Meijiang, aprestigious housing estate in Tianjin. It is also close to threeeconomic and science development zones and easilyaccessible to the Tianjin Binhai International Airport via theOuter Ring Road.The Arcadia will comprise 168 units of exclusive villas withplot sizes ranging from 320 sm to 600 sm and gross floorareas ranging from 300 sm to 450 sm. The project will have aprivate clubhouse and access to various facilities such as anindoor swimming pool, a gymnasium and tennis courts.126 Operations and market reviewChinaKeppel Land LimitedReport to Shareholders 2006

Spring City Golf & Lake Resort, KunmingIn the vicinity are the American International School and theJapanese School. Other upcoming amenities include aworld-class golf course, a shopping mall and a five-starhotel. The project is expected to be launched in mid-2007.WuxiWuxi TownshipAs Keppel Land’s second residential township developmentin China after The Botanica in Chengdu, the Wuxi Townshipis located on a 35-ha site in the southern part of Wuxi inJiangsu Province. It is within the Taihu New City, theproposed second city centre which will house the newmunicipal administrative office, commercial and residentialdevelopments, a university town and an IT Park. Thedevelopment of Taihu New City will enhance the appeal ofthe township development.The whole project will provide about 4,700 township homes.It will also comprise commercial and office buildings, aswell as supporting amenities. To be developed in fourphases according to market demand, units will be launchedprogressively from the second half of 2007.Hong KongThe WaterfrontStrategically located above the Kowloon Mass Transit Railway(MTR) station along the MTR Airport Line, The Waterfrontcomprises six towers with a total of 1,288 residentialunits. As at end-February 2007, more than 98% of thedevelopment has been sold.Keppel Land has a 7% stake in this development whileKeppel Corporation holds 3%. Other members in the WingTai-led consortium include Temasek Holdings, SingaporeLand, Lai Sun Development, Worldwide Investment andUSI Holdings.Evergro PropertiesIn 2006, Keppel Land further increased its stake in EvergroProperties (Evergro), a Singapore-listed company formerlyknown as Dragon Land, to 71.37%.With established business networks in China and a sizeableresidential landbank in Tianjin, Jiangyin and Changzhou, Evergroserves as a platform for Keppel Land to further strengthenits presence in China’s second-tier cities. Evergro is alsodeveloping golf resorts in Tianjin and Jiangyin. Part of the golfcourses has begun operations in 2006.Keppel Land, Evergro and Jiangyin Chengshi Real Estate CoLtd are jointly developing an 82,987-sm landmark for urbanliving in Jiangyin. Expected to be launched in early 2008, thisdevelopment comprises over 2,000 apartment unitscomplemented by quality office and retail space.Operations and market reviewChinaKeppel Land LimitedReport to Shareholders 2006127

Operations and market reviewChinaTo be completed in 2007,The Waterfront in Chengdu isclose to 100% sold.The Waterfront, ChengduMarket reviewEconomySustainable economic growth driven by increasingconsumptionChina achieved a strong Gross Domestic Product (GDP)growth of 10.7% in 2006. The anti-speculation measureshave effectively curbed overheating investment, while theslowdown in fixed asset investments was offset by robustdomestic consumption. Exports surged 27.2% while percapita disposable income in urban and rural areas increased10.4% and 7.4% respectively.Growth in China is likely to be sustained by surgingconsumption, strong exports, rising purchasing powerand healthy foreign direct investment (FDI).Shanghai to become an international financialand logistics hubShanghai achieved GDP growth of 12% in 2006, boostedby the finance, logistics and IT sectors. The financial and ITsectors grew 17.6% and 16.5% respectively. Shanghai isalso now ranked the first shipping hub in the world in termsof tonnage.Shanghai aims to become an international financial centreby 2010. Strong domestic consumption and fast expansionof the city’s infrastructure before the World Expo 2010 willalso support Shanghai’s growth in the next few years.Beijing to grow beyond 2008 OlympicsBeijing’s economy grew 12% in 2006, fuelled by growth inthe telecommunications and financial sectors. FDI surged29.1%, mainly from leasing and business services, realestate, retail and wholesale sectors. Domestic consumptionincreased 12.6% while urban per capita disposable incomeincreased 12.2%.Beijing will see strong economic growth in the next fewyears as the 2008 Olympics will continue to boost itstelecommunications, infrastructure and services sectors.Meanwhile, the construction of inter-city rail network andthe development of Huan Bo Hai Economic Rim, whichcomprises Beijing, Tianjin, Hebei Province, ShandongProvince and Liaoning Province, will also fuel thecity’s economy.Foreign investment to boost Chengdu’s economyChengdu registered a GDP growth of 13.8% in 2006,the highest in 10 years. Growth was driven by exportsand investments. Foreign trade surged 53.3% and FDIincreased 36.6%. Consumption rose 14.9% while urban percapita disposable income increased 12.6%.128Operations and market reviewChinaKeppel Land LimitedReport to Shareholders 2006

The Arcadia, TianjinBy end-2006, 108 of the Fortune 500 companies, such asAir France, KLM Royal Dutch Airlines, and ABN AMRO haveset up operations in Chengdu. The city’s position as China’swestern economic hub will attract more foreign investmentand is poised to boost the city’s economy further.New economic growth engine for TianjinTianjin achieved a robust 14.4% economic growth in2006, boosted by the automobile, telecommunicationsand infrastructure sectors. Exports rose 22.3% andFDI increased 14.1%. A total of 121 of the Fortune 500companies has invested in Tianjin by end-2006.The Bin Hai New Region, accounting for 51.4% of thecity’s GDP, will continue to be the city’s growth engine.The city will become a regional logistics hub when thedeep water channel in the Tianjin Port is completed.The development of Huan Bo Hai Economic Rim willalso enhance Tianjin’s position as the economic centrein Northern China.Continued sterling economic growth in WuxiWuxi continued to record a sterling GDP growth of 15.3%in 2006, driven by the strong manufacturing industryand tourism sector. Exports surged 37.9% and FDIrose 37.1%. Consumption increased 16.4% while percapita disposable income in urban and rural areas rose13.6% and 10.9% respectively. Wuxi’s economy willremain robust, fuelled by foreign investment and surgingdomestic consumption.Strong economic performance in Hong KongHong Kong’s economy registered a better-than-expectedgrowth of 6.8% in 2006, fuelled by strong investment andprivate consumption. Overall investment grew 8%, thehighest since 2000. The unemployment rate fell to a six-yearlow of 4.4% and inflation was kept at 2%.In 2007, the government’s new infrastructure expenditurewill improve employment. Meanwhile, the tax relief andone-off rebate measures will also boost privateconsumption. With closer economic ties to mainland China,Hong Kong’s economy will grow further in the future.Property marketPositive outlook despite cooling measuresThe implementation of anti-speculation measures since2005, including controls in credit and land supply, levy oftaxes on property sales and capital gains, and restrictions onforeign buying, have curtailed overheating real estateinvestment. However, the property market still achievedgood growth, with primary housing price increase of 6.3%in 70 large and medium-sized cities in 2006.Operations and market reviewChinaKeppel Land LimitedReport to Shareholders 2006129

Operations and market reviewChinaWuxi is one of China’s fastestgrowing second-tier cities withsubstantial growth potential inits housing market.Wuxi TownshipChina’s housing market will grow further, with stronghousing demand driven by robust economic fundamentals,increasing income, continued urbanisation and affordablemortgage financing. The expected Renminbi appreciationwill attract investment in China’s housing market and coolingmeasures will help create a healthy market to achievelong-term sustainable growth.ResidentialShanghai downtown housing prices to remain firmShanghai’s housing market started to recover in September2006, after its dip following the implementation of coolingmeasures. The market registered a primary housing pricedecline of 0.1% for the whole of 2006.Shanghai’s housing market will remain positive, underpinnedby robust demand in line with the surging urban disposableincome, which grew 10.8% in 2006. Downtown housingprices will remain firm in 2007, supported by tight supplyin the city centre. Land control on villa development willalso push villa prices up.Continued demand to boost Beijing’s housing marketPrimary housing prices in Beijing rose 10.4% in 2006,driven by strong genuine housing demand and limitedsupply before the 2008 Olympic Games. Completedhousing stock dropped 22.8% while stock under constructiondeclined 13.3%.Beijing’s residential market will grow further, backed bygood economic prospects, increasing regional demandwith the construction of inter-city rail network, a greenerand vibrant city environment and continued strongdemand for high quality homes.Chengdu’s housing market set to grow furtherReal estate investment in Chengdu surged 37.4% in2006 while primary housing prices increased 8.5%, dueto sustainable local demand from redevelopment of olddistricts, as well as increasing investment demand fromoutside Chengdu.The housing market will continue its healthy growth,supported by a growing economy, sustainable genuinedemand and surging purchasing power. The expansionof foreign companies in the city will also bring demandfor high quality housing.Substantial residential demand in TianjinPrimary housing prices in Tianjin rose 7.8% in 2006,mainly driven by rising local demand. Tianjin’s housingmarket will see further growth in the next few years.130Operations and market reviewChinaKeppel Land LimitedReport to Shareholders 2006

The expansion of foreign companies, such as Motorolaand Airbus, will create new jobs and increase housingdemand. In addition, the inter-city rail network will reducetravelling time between cities and boost housing demandfrom outside Tianjin.Good growth potential in WuxiIn 2006, real estate investment in Wuxi rose 21.5% whileprimary housing prices increased 3.5%. As one of thefastest growing second-tier cities in China, Wuxi’s housingmarket has substantial growth potential, supported byhigher disposable income, better job opportunities andincreasing foreign investment. The development of moresecondary city centres will also create new housing demand.Polarisation of luxury and mass markets in Hong KongResidential transactions in 2006 declined 4.1% yearon-yearto 99,087 units. The mass residential marketremained soft due mainly to higher interest rates, whilethe luxury residential market has performed relativelystronger. Hong Kong’s 2007 property market is expectedto be strong, driven by sustained economic growth andanticipated interest rate cut.China 2005 2006E 2007F 2008FReal GDP growth (%) 10.4 10.7 9.5 9.0Commercial banks’ prime rate (average, %) 5.6 5.9 6.2 6.4Inward FDI (US$ Bn) 79.1 81.1 78.2 81.1Exchange rate (RMB/USD, average) 8.19 7.97 7.62 7.46Personal disposable income (US$ Bn) 1,003 1,147 1,326 1,494CPI change (average, %) 1.8 1.4 2.5 2.7Hong Kong 2005 2006E 2007F 2008FReal GDP growth (%) 7.5 6.8 4.7 4.7Commercial banks’ prime rate (average, %) 6.2 7.9 8.3 8.2Inward FDI (US$ Bn) 35.9 38.3 29.0 27.0Exchange rate (HKD/USD, average) 7.8 7.8 7.8 7.8Personal disposable income (US$ Bn) 136.0 143.2 150.3 156.7CPI change (average, %) 0.9 2.0 2.5 2.6Source: Economist Intelligence UnitOperations and market reviewChinaKeppel Land LimitedReport to Shareholders 2006131

Operations and market reviewIndiaResidential development in Kolkata, IndiaBangaloreElita PromenadeDeveloped by Keppel Puravankara Development (KPD),a 51:49 joint venture between Keppel Land and India’sPuravankara Projects, Elita Promenade is a high-risecondominium development endowed with lush landscape,water bodies and lifestyle facilities such as a clubhouse,indoor heated swimming pools, a jacuzzi, barbecue pits,a bowling alley, tennis courts and squash courts.Located in J.P. Nagar in south Bangalore, the 9.7-ha site hasa 250-m frontage of the Puttenahali Lake and is a convenient30-minute drive to the city centre. It is also strategically locatedin close proximity to the Electronic City, a 130-ha IT andelectronics industrial park, and the Outer Ring Road where mostIT campuses such as Infosys, Wipro, Intel and IBM are located.To be developed in two phases, Elita Promenade comprises1,573 units of 2- and 3-bedroom apartments with unit sizesranging from 1,365 sf to 1,790 sf. Targeting the middle incomehomebuyers, Phase One was launched for sale in July 2005,followed by Phase Two in November 2006. As at end-February2007, 72% of the 1,263 units launched has been sold.Elita Promenade has been featured as one of the best buysfor real estate in Bangalore in the December 2006 edition ofa local lifestyle magazine “080”.132Operations and market reviewIndiaKeppel Land LimitedReport to Shareholders 2006

Elita HorizonElita Horizon is the second residential project developed byKPD, after Elita Promenade. Acquired in July 2005, the 7.2-hasite is located off Kanakapura Road in south Bangalore andapproximately 7 km from Elita Promenade. Elita Horizon willcomprise 1,060 units of 2- and 3-bedroom apartments withunit sizes ranging from 1,300 sf to 1,750 sf.The development is strategically located near the BMICPeripheral Ring Road, which is part of the Bangalore MysoreInfrastructure Corridor (BMIC) project. Once the BMICPeripheral Ring Road becomes fully operational, it willprovide the much awaited connectivity from Elita Horizonto the major IT growth corridors of Bangalore such asBannerghatta Road, Hosur Road and Sarjapur Road.It is also conveniently located close to various internationalschools including Jain International School and DeccanInternational School, and a mere three km away from Metro,a Germany-based hypermarket. Design development for theproject is almost completed and sales launch is expected inthe second quarter of 2007.KolkataResidential development in KolkataKeppel Land, through a 74:26 joint venture with MagusEstates and Hotels, is developing a 1,376-unit mid-risecondominium in Kolkata, the economic centre of WestBengal and a major IT hub. The 10-ha site islocated within the Rajarhat Township, a new 7,600-acreintegrated township with a target population of about1.5 million people. The Rajarhat Township is 15 km east ofthe Kolkata city centre and caters to the city’s expansion tothe East. It is a 30-minute drive from the city centre and a20-minute drive from the Dum Dum International Airport, theonly international airport in eastern India. It is also in closeproximity to the upcoming Rajarhat Expressway, which linksthe Rajarhat Township to other parts of Kolkata.The development stands to benefit from the comprehensiveplanning of the Rajarhat Township, which will have a mix ofresidential, retail, entertainment, commercial, IT and lightindustry components. It is in proximity to complementarysocial and civic amenities including the upcoming IT Parks byrenowned international and local developers; India’s largestconvention centre; City Centre II, a major shopping centrein Kolkata city; JW Marriott Hotel; Tata Medical Centre andDelhi Public School.To be launched for sale in the second quarter of 2007, thedevelopment will comprise 18-storey to 30-storey towerblocks with a host of recreational amenities such as aswimming pool, clubhouse, gymnasium and children’splayground within landscaped grounds. Upon completion,it will be the tallest residential development within theRajarhat New Town.Market reviewEconomyStellar economic growth set to continueThe government of India has projected real Gross DomesticProduct (GDP) growth of 9.2% for the fiscal year endingMarch 2007, slightly higher than the 9% growth for theprevious fiscal year. All sectors are expected to recordpositive growth momentum, driven mainly by higherinvestments, consumer spending and exports. This signalsthat economic measures such as the removal of importtariffs and quotas, the relaxation of restriction on foreigninvestments and the reduction in bureaucracy haveimproved India’s competitiveness and injected dynamisminto the economy.However, continued strong economic growth has fuelledinflationary pressures. Wholesale price index-basedinflation rate rose to a two-year high of 6.7% in February2007, compared with 4% a year ago. In attempting toease inflation, the government has cut fuel prices whilethe central bank has raised interest rates and the cashreserve ratio for banks to curb credit demand.Operations and market reviewIndiaKeppel Land LimitedReport to Shareholders 2006133

Operations and market reviewIndiaA rapidly expanding economy, growing middle-class,young population, urbanisation trends and risinghomeownership aspiration have fuelled demand forhousing. The average age of homeowners has fallen to32 years old from 45 years old a decade ago. The Indianreal estate market is estimated to be worth US$40 billionto US$45 billion in terms of total economic value ofdevelopment activity. The increasing influx of foreigninvestments from major international developers andcapital flows from global real estate funds will continueto drive the growth of the Indian property market.BangaloreIT boom drives housing demandThe city of Bangalore is emerging as a global hub forinformation technology (IT) and this transition has createda positive impact on the real estate market. Demand forquality residential properties is on the rise, which in turnpushes up property prices.With an estimated population of more than 8.4 million,Bangalore is experiencing exceptional population growthat 3.25% per annum due to the increasing number ofmigrants from different parts of the country flocking to theIT capital of India to meet the growing manpower demandrequired by more than 250 high-tech companies in thecity. The number of foreign expatriates working in the ITprofession has also risen over the years. As a result, thereis a huge demand for quality housing not just for the localsbut also for the large number of expatriates.In order to cope with the increasing demand for housing,developments of new layouts from both the private sectorand the Bangalore Development Authority are in the pipeline,which in turn brings stability in home prices. Apart fromthe flourishing IT and ITES (information technology enabledservices) sectors, which have contributed significantly tothe expansion of the middle to high income group, easyavailability of property financing, rising aspirations forhomeownership and investment demand from non-residentIndians are other driving forces behind the growth of thehousing market.Since the government relaxed the ban on foreign directinvestment in December 2005, real estate investment inBangalore has increased substantially. Foreign investmentin Bangalore’s real estate is estimated at US$2 billion in2006 and this figure is expected to increase further withthe government’s plan for development of large-scalesatellite townships, IT Parks and Aerospace Parks.KolkataResidential market on steady uptrendKolkata is India’s second largest city with a metropolitanarea of 1,900 sq km and a population of 16.3 million in 2005.Kolkata’s economy has been growing over the last fewyears, as a result of the efforts of the state government tocreate a business-friendly environment to attract investmentsinto the capital city of the West Bengal state. The last twoyears saw significant investments in the manufacturing, ITand ITES sectors and real estate development.For the first quarter of 2007, Kolkata’s GDP growth was13%, ahead of Delhi, Mumbai and Bangalore. Growth wasled by the manufacturing and financial services sectors,the two largest markets for employment in the city.Strong economic activity and investment flows have inturn stimulated consumption growth and fuelled increasingresidential demand. Demand for quality residentialdevelopment with lifestyle amenities is expected to growstrongly in tandem with economic expansion and betterjob prospects.Property prices in Kolkata have been rising steadily overthe past few years. Depending on the location, real estatewatchers are predicting a 10% to 25% appreciation inproperty value in 2007. Prices in Rajarhat are expected torise 20% by end-2007.India 2005 2006E 2007F 2008FReal GDP growth (%) 8.5 8.7 7.8 7.6Lending rate (average, %) 10.8 11.2 11.8 10.8Inward FDI (US$ Bn) 6.7 9.4 10.0 10.0Exchange rate (INR/USD, average) 44.1 45.3 46.0 46.5Personal disposal income (US$ Bn) 631.5 712.4 799.6 889.1CPI change (average, %) 4.2 6.1 6.1 4.8Source: Economist Intelligence Unit134Operations and market reviewIndiaKeppel Land LimitedReport to Shareholders 2006

Operations and market reviewVietnamSaigon Sports City, Ho Chi Minh CityHo Chi Minh CitySaigon Sports CityKeppel Land is developing Saigon Sports City, a fullyintegrated residential, commercial and recreational sportinghub on a 64.4-ha site in Ho Chi Minh City (HCMC).Located in HCMC’s prime An Phu Ward in District 2, thedevelopment is well-positioned to meet the growing demandfor well-planned and professionally-managed residentialestates in HCMC. With the central business district (CBD)just 25 minutes’ drive away, easy accessibility via the HanoiHighway and close proximity to international schools,foreign-developed serviced apartments and MetroHypermart, the vicinity is popular with the upper incomelocals and expatriate communities.Targeted at the upper income market, Saigon Sports City willcomprise mainly quality apartment housing with complementarycommercial complexes, and a 14-ha area designated for publicsports facilities. The development is also the first of its kindin Vietnam, offering a healthy lifestyle development conceptand proximity to many sports and recreational facilities.Keppel Land has a 90% interest in the joint venturecompany, while Hong Kong’s Chiap Hua Group holds theremaining 10%. The joint venture is among the first 100%foreign-owned enterprises allowed to develop and sellresidential properties in Vietnam.About 100 units under Phase One of the development arescheduled to be launched in late 2007.Villa RivieraAll 101 units at Villa Riviera, Keppel Land’s waterfront villa inHCMC have been sold, less than a year since its public launchin April 2006. Located in the prime An Phu Ward in District 2with excellent frontage of the scenic Saigon River, Villa Rivierahas been hailed as HCMC’s finest waterfront address.Laid out over a sprawling 6-ha site, Villa Riviera is a gateddevelopment with resort-style facilities such as 24-hoursecurity, a clubhouse and gymnasium, a 30-m infinity edgepool, a tennis court and an interactive children’s playground.The three-storey villas have land plot sizes ranging from300 sm to 550 sm and feature 4- and 5- bedrooms in eightOperations and market reviewVietnamKeppel Land LimitedReport to Shareholders 2006135

Operations and market reviewVietnamdifferent layouts. Currently under development, the project isexpected to be completed in mid-2007.The EstellaKeppel Land has entered into a joint venture with a local partnerto develop a 4.8-ha site for prime residential development inHCMC. Located in prime An Phu Ward in District 2 whereSaigon Sports City and Villa Riviera are also situated, TheEstella will comprise about 1,500 to 1,600 quality apartmentswith a potential gross floor area of 280,000 sm. It is targetedat the upper-income market and is poised to meet the growingdemand for well-planned residential estates.Situated along the Hanoi Highway, the development is only6.5 km away from the CBD and a convenient 15-minutedrive to the city centre and the Saigon Hi-Tech Park inDistrict 9, where Intel’s US$1 billion test and assemblyplant is being developed.The Estella will offer residents a quality lifestyle with acomprehensive range of recreational facilities including aclubhouse, swimming pool and tennis courts in lush surroundsand 24-hour security. Phase One of the project is slated forlaunch in early 2008.Saigon CentreKeppel Land holds a 68% stake in Saigon Centre, a mixeddevelopment which is strategically located in HCMC’s CBD andfronting Le Loi Boulevard, the city’s main thoroughfare.To be developed in phases, the prime 2-ha site will compriseinternational standard office buildings and serviced apartmentsinter-linked by a retail podium when fully completed.Under Phase One, a 25-storey commercial building wascompleted in 1996. It comprises a three-storey retailpodium, 11 levels of office space, a business centre andtown club, 89 units of serviced apartments and three levelsof basement carpark.The preferred address of the diplomatic corps, multinationalcompanies (MNCs), banking and financial institutions, SaigonCentre has maintained its position as the market leader interms of occupancy and rental rates in HCMC. The office andretail components are 100% leased and the servicedapartments, managed by Sedona Hotels International, enjoynear full occupancy.Tamarind ParkTamarind Park is a proposed 173-unit apartment block tobe developed according to market conditions. Convenientlylocated in a quiet and exclusive enclave at Thai Van LungStreet in HCMC’s prime District 1 and yet close to thecity’s commercial and shopping belt, the area is popularwith the expatriates. Keppel Land has a 60% interest inthis 20-storey development, which comes complete withrecreational facilities.HanoiInternational CentreInternational Centre offers more than 7,009 sm of primeGrade A office space in Hanoi’s Central Business andFinancial District at Ngo Quyen Street. The eight-storeybuilding is known as the first modern office building in Hanoi.The building enjoys 100% occupancy with an internationaltenant profile comprising MNCs, financial institutions, legalfirms, international airlines and blue-chip consultancy firms.Keppel Land holds a 43% stake in the development.Royal Park Sedona Suites HanoiRoyal Park Sedona Suites Hanoi enjoys near full occupancyfor all 175 serviced apartments and villas. Located just15 minutes’ drive from the city centre, on the northeasternbank of the serene Ho Tay Lake, the market leader in servicequality is a popular choice among the diplomatic corps,businessmen and the expatriate community. Managed bySedona Hotels International, a full range of recreationalfacilities is housed in a grand clubhouse. Keppel Land holdsa 59% stake in this lake-side development.Vung TauPetro Vietnam TowersCompleted in 1997, Petro Vietnam Towers is the onlyinternational standard office building in the prime commercialdistrict of Vung Tau. This 10-storey Grade A office buildingoffers 12,465 sm of prime office space and has a blue chiptenant profile comprising petrochemical companies, oil andgas companies and financial institutions. Keppel Land has a12.9% interest in the building.136Operations and market reviewVietnamKeppel Land LimitedReport to Shareholders 2006

Villa Riviera, Ho Chi Minh CityMarket reviewEconomyWTO entry opens up opportunitiesVietnam’s economy grew at 8.17% in 2006, underpinnedby surging foreign direct investments (FDI), strong exportsand robust consumer spending driven by the government’sexpansionary fiscal policies. Gross Domestic Product (GDP)amounted to US$60.5 billion, up from US$52.1 billion in 2005.FDI reached an all-time high of US$10.2 billion in 2006since the Foreign Investment Law was enacted in 1987.The 75% year-on-year increase in FDI surpassed thegovernment’s target by 57%.Vietnam’s export revenues reached US$39.5 billion in2006, an increase of 22% over 2005. Exports to the USrose to US$9 billion in 2006 from US$6 billion in theprevious year, and is expected to exceed US$10.7 billionin 2007. With booming trade and consumer spending, theretail sales of goods and services reached US$36.3 billionin 2006, an increase of 20.9% year-on-year.Remittances by Viet Kieus or overseas Vietnamese reacheda high of US$4.7 billion in 2006, up more than 20% yearon-year.Of this, 60% of the remittances went to HCMC.Remittances by Viet Kieus are expected to rise by another15% in 2007.Tourism continued to flourish, with the number of foreigntourists visiting Vietnam up significantly from 1.6 millionin 1996 to 3.6 million in 2006. Vietnam aims to attract4.4 million foreign visitors in 2007 and to double arrivalsto 8 million by 2010.In 2006, the revised Unified Enterprise Law was enacted,creating a platform for healthy business competition and alevel playing field for all. This resulted in a flourishing ofprivate enterprises, with 41,000 new enterprises set up in2006. This brings the total number of private enterprisesthat have been established since the introduction of theEnterprise Law to 200,000.Vietnam’s international profile has been significantly raisedwith several political breakthroughs. It officially joined theWorld Trade Organisation (WTO) as the 150 th member on11 January 2007, giving the country access to the globalmarket. Vietnam also successfully organised the AsiaPacific Economic Co-operation Summit in November 2006.In December, the US granted Vietnam the PermanentNormal Trade Relations (PNTR) status, normalising tradeties with the country. These developments serve to boostVietnam’s competitiveness, improve business environment,and further attract foreign investments.Going forward, Vietnam aims to achieve GDP growthof around 8.5% in 2007. FDI is expected to continueto rise as the country continues to improve its legalframework and transparency, offer tax incentives,embrace market economics and further liberalise marketaccess. The country also expects export revenue to reachUS$47.5 billion in 2007.OfficeStrong Grade A office marketIn HCMC, Grade A office buildings enjoy full occupancy.Rental rates average between US$28 and US$33 psm permonth in 2006, up 10% to 12% from the year before.With Vietnam’s entry into the WTO, the Grade A officemarket is set to benefit from an influx of new multinationalcompanies and business set-ups. The city’s strongeconomic growth and rising FDI inflows will also seeincreased corporate expansions and upgrading by localcompanies to better quality office buildings. Coupled withlimited stock of Grade A offices and a lack of new supply,rental rates are expected to increase further.In Hanoi, growing private-sector demand has increasedthe demand for prime office space. Grade A offices inCBD locations enjoy full occupancy with average rentalrates ranging from US$22 to US$30 psm per month.Positive economic outlook and limited new supply willcontinue to keep occupancy and rental rates high in thenear-to-mid-term.Operations and market reviewVietnamKeppel Land LimitedReport to Shareholders 2006137

Operations and market reviewVietnamResidentialLeasing market for serviced apartments remains activeGrade A serviced apartments in HCMC continued to enjoyfull occupancy. Room rates remain high at between US$28and US$34 psm per month, fuelled by increasing numberof expatriates and business travellers seeking opportunitiesin the city.With limited supply of Grade A serviced apartments andgood quality apartments for rental, rental rates for Grade Aserviced apartments in the CBD are expected to rise inthe near term.The Grade A serviced apartment market in Hanoi alsoenjoyed active leasing arrangements, with high occupancyrates above 95% and average room rates of betweenUS$20 and US$26 psm per month.Rising demand for local housingThe rate of urbanisation in Vietnam has risen significantlyto 27.1% in 2006 from 19% in 1999. This translates intomore than 22.8 million of the country’s population of84.1 million living in urban areas now, compared to14.5 million out of 76.3 million population in 1999. Assuch, there is a pressing need for the city to build morehousing to cater for the fast growing population.Vietnam’s consistently high economic growth and politicalstability during the past 10 years have boosted theexpansion of the middle-class. With growing affluenceamong the locals, more are aspiring for a better lifestyle,and to own a home in a well-planned and managedresidential area. More banks are supporting buyers withloans for 10 to 15 years with credit limit from 50% to 70%of the housing price, thus increasing affordability anddemand for home purchase. The housing market isexpected to grow steadily in the near-to-mid-term.Vibrant economic growth, WTO accession, rapidurbanisation, improved living standards, growing FDI andprogressive reforms adopted by the government such asenactment of the Housing Law, liberalisation and openingup of the residential market to foreign investors willfurther enhance the demand for housing, notably goodquality housing in prime locations.Vietnam 2005 2006E 2007F 2008FReal GDP growth (%) 8.4 8.2 7.0 7.1Commercial banks’ prime rate (average, %) 11.0 11.8 12.5 12.0Inward FDI (US$ Bn) 1.89 2.9 3.1 3.3Exchange rate (Dong/USD, average) 15,859 15,982 16,410 16,850Personal disposable income (US$ Bn) 26.6 27.5 29.5 31.3CPI change (average, %) 8.3 7.6 6.9 5.7Source: Economist Intelligence Unit138Operations and market reviewVietnamKeppel Land LimitedReport to Shareholders 2006

Operations and market reviewIndonesiaJakarta Garden City, IndonesiaJakartaWisma BCAStrategically situated within Jakarta’s central business district(CBD) and in close proximity to five-star hotels, embassiesand shopping malls, Wisma BCA remains the preferred choicefor major corporations. The two office towers continued toenjoy full occupancy and higher average gross rentals in 2006.Pasadenia GardenPasadenia Garden is a low-density condominium developmentlocated within the upper-middle class Pulomas residentialestate. Sitting on an 8-ha site, the initial phase of 197 unitshas been completed. Some 82% of the 147 units availablefor sale has been sold, up from 105 units sold as at end-2005.As at end-2006, 18 of the 26 unsold units and 29 of the 50rental apartments were leased out.Jakarta Garden CityThe 270-ha integrated township development in Cakung,East Jakarta is one of the last few remaining large, contiguousplots of land available for housing development within theJakarta city. Located in close proximity to Kelapa Gading,an established township, Jakarta Garden City targets themiddle- to upper-middle income families.The entire township will be developed in phases over 10 to15 years. It will yield more than 7,000 landed homes andapartments. Retail malls, shop houses, entertainment centres,offices, international schools, hospital and other facilities willalso be built within the township.Construction activities for Phase One have begun with thecommencement of earthworks, landscaping and infrastructureworks. About 1,100 units of landed houses and a modernclubhouse with various recreational facilities will be developedin the first phase.Operations and market reviewIndonesiaKeppel Land LimitedReport to Shareholders 2006139

Operations and market reviewIndonesiaOcean Course, Ria BintanIn addition, several value-added amenities will be developedto create a quality environment that enhances the lifestylesof residents and complements its vicinity. These amenitiesinclude a gourmet street consisting of a seafood centre,theme village, cafes and pubs, as well as a one-stop lifestyleentertainment centre with a unique fusion of art, trendy retailshops and recreational facilities.Marketing of Phase One of the township is expected tocommence in 2007.YogyakartaMelia Purosani HotelThe 296-room Melia Purosani Hotel is located in the city centreof Yogyakarta. The earthquake that struck Yogyakarta on27 May 2006 caused some damage to the hotel building butthe structure has been certified as safe. The hotel remainspartially open with 70 rooms available whilst rectificationwork is in progress. As a result of the earthquake, occupancyhas been affected. However, the average room rate hasimproved to US$37.85, up 13.9% from US$33.22 in 2005.Financial compensation from insurance coverage will help tofund the cost of rectification work.Meanwhile, some 40 employees of the hotel who hadsuffered destruction of their homes during the earthquakewere given US$100,000 in cash assistance from the hoteland its operator.BintanRia BintanRia Bintan is a 447-ha integrated premier resort that currentlycomprises the world-renowned Club Med holiday village andan award-winning golf course. Hotels and resort homes willbe developed within the resort in future phases.The 36-hole championship golf course designed byGary Player, of which 27 holes have been completed,was named the Best Golf Course in Indonesia for thethird consecutive year and the Best Golf Course in Asia– 1 st Runner-up in 2006. These awards recognise Ria Bintan’sefforts in maintaining the golf resort at the highestinternational standards.Average room occupancy of the 302-room Club Med Ria Bintanimproved to 53.4% in 2006 as compared to 45.3% in theprevious year, due to strong economic growth in the region aswell as increased business and leisure travel. Average roomrate of the beachfront resort also rose to US$81.22 in 2006,up 4.5% from US$77.70 achieved in 2005.140Operations and market reviewIndonesiaKeppel Land LimitedReport to Shareholders 2006

BG Junction, SurabayaSurabayaBG JunctionBG Junction is a strata-titled retail complex comprising shopunits and anchor space. Situated in an established commercialarea within Surabaya’s CBD, it consists of six levels of retailspace with hypermart giant Carrefour as the main anchortenant, an adjoining multi-storey car park building andsupporting facilities.BG Junction was completed and soft-opened in June 2006.As at 31 December 2006, the mall achieved an overalloccupancy of about 84%. A total of 395 units has beensold and about 26,000 sm of retail space have beenleased to major tenants, including Carrefour. Currentefforts are ongoing to secure more mini anchor tenants forthe development.Galleria TunjunganThe prime 23,768-sm site is located in the heart ofSurabaya’s CBD. Development plans for an upmarket retailcum-commercialcomplex have been put on hold until marketconditions are favourable.ManadoHotel Sedona ManadoLocated at Tateli, approximately 13 km from Manado, thecapital of North Sulawesi, Hotel Sedona Manado is aninternational-class resort hotel comprising 247 rooms andsuites as well as recreational facilities such as a privateswimming lagoon, swimming pool, tennis court, fitness cluband other sea sports facilities. It also offers easy access tothe nearby diving sites.Construction of the hotel has been substantially completedwith the exception of the West Wing. The hotel soft-openedin November 2006.BaliTanah Lot Beach ResortDevelopment plans for an exclusive gated beachfront resortvilla estate with a luxurious resort hotel have been put onhold until investment sentiments in Bali are favourable.Operations and market reviewIndonesiaKeppel Land LimitedReport to Shareholders 2006141

Operations and market reviewIndonesiaMarket reviewEconomyInterest rate cuts to spur private investment andconsumptionIndonesia’s economy grew 5.5% in 2006, comparable tothe 5.6% growth in 2005. Growth was driven primarilyby rapid expansion in exports. The economy expanded ata faster pace in the last quarter of the year as consumerspending rose.In early March 2007, Bank Indonesia further cut itsbenchmark interest rate by 25 basis points to 9%.The decline in interest rates will help to spur privateinvestment and consumption.In view of the improved economic conditions, investmentclimate and renewed consumer confidence, the Indonesiangovernment has projected the economy to grow at 6.3%in 2007. Inflation has moderated significantly and thecentral bank expects inflation to stabilise at about 5% to7% for 2007 and 4% to 6% for 2008.JakartaSteady demand for office spaceTotal cumulative supply of office space in Jakarta stoodat 5.27 million sm as at end-2006, up 2.3% from end-2005. Some 70,600 sm of the new supply were withinthe CBD.As at end-2006, the average office occupancy withinJakarta’s CBD was 84.9%, up from 82.8% as at end-2005. Average gross rental rate of office space withinthe CBD remained relatively stable at Rp121,950 psmper month. Achieved pre-sales price for strata-titledoffice space in the CBD was higher in 2006, rangingfrom Rp12 million to Rp14 million psm, compared withRp9 million psm in 2005.For 2007, better economic outlook and investorconfidence are expected to generate more businessexpansions and attract new investments, leading to higherdemand for office space. Average gross rental is expectedto increase as the government may raise electricity tariffsagain in 2007.Condominium market remains activeTotal cumulative supply of condominium units in Jakartastood at 45,625 units as at end-2006, up from 39,310units as at end-2005. An estimated 20,847 condominiumunits are expected to enter the market in 2007. Whileoccupancy will likely decline slightly in the first half of2007, it is expected to rebound in the later half of the year,backed by rising popularity of condominium living andprojected increase in rental demand.Condominiums have become an increasingly popularaccommodation alternative in Jakarta, with increasingdemand from local buyers for owner-occupation. Salestransactions remained active with take-up of 6,529condominium units in 2006, up 14.5% from 5,702 unitssold in 2005. Sales momentum is expected to continueits positive trend in 2007. As at end-2006, averageprices stood at Rp13.48 million psm for condominiumswithin Jakarta’s CBD and Rp10.28 million psm for primeresidences outside the CBD.Demand for township homes to benefit from lowerinterest ratesTotal planned area for residential estates in Greater Jakartaremained at approximately 38,210 ha as at end-2006,of which 36.7% or 14,000 ha have been developed.Cumulative sales rate of residential estates increased from77.3% at end-2005 to 78.3% at end-2006. Average sellingprices remained relatively stable during the year.Looking ahead, sales activity of residential estates ispoised to pick up in anticipation of lower mortgage ratesas the Indonesian central bank cuts back on its benchmarkinterest rate. Demand for middle-class housing with priceranges from Rp200 million to Rp400 million is expected toremain high.142Operations and market reviewIndonesiaKeppel Land LimitedReport to Shareholders 2006

Better economic outlook andrenewed investor confidence areexpected to drive demand foroffice space in Jakarta.Wisma BCA, JakartaSurabayaIncreasing competition in retail marketTotal retail space in Surabaya increased significantly in2006 due to the completion of new malls such asBG Junction and Pusat Grosir Wonokromo.Projects that are under various stages of construction andare expected to enter the market in 2007 include City ofTomorrow, Empire Palace, Surabaya Town Square andPasar Atum extension. These malls will contribute another120,000 sm of retail space in 2007.Given the increase in retail supply, overall occupancyof the retail malls in Surabaya has softened. Despite anincreasingly competitive market, rental rates have heldfirm. Gross rental rates for prime ground floor spacecontinued to average around Rp250,000 to Rp300,000psm per month.Indonesia 2005 2006E 2007F 2008FReal GDP growth (%) 5.6 5.5 6.0 6.1Lending interest rate (average, %) 14.1 15.9 12.8 12.3Inward FDI (US$ Bn) 5.3 5.3 6.0 6.0Exchange rate (Rupiah/USD, average) 9,705 9,159 9,212 9,422Personal disposable income (US$ Bn) 148.0 183.8 197.0 204.7CPI change (average, %) 10.5 13.1 6.9 6.1Source: Economist Intelligence Unit and Bank IndonesiaOperations and market reviewIndonesiaKeppel Land LimitedReport to Shareholders 2006143

Operations and market reviewMalaysiaJohorTaman SuteraStrategically located near Johor Baru’s city centre, the487-ha township development, Taman Sutera, and its newextension, Taman Sutera Utama, comprise over 12,000 unitsof residential and commercial properties. As of end-February2007, some 2,151 units or 90% of the 2,397 launched unitsof terrace houses, semi-detached houses, apartments andshop offices have been sold.PenangTaman JernihTaman Jernih is a 513-unit residential development on a14.4-ha site in Bukit Mertajam. The project is fully sold and allunits have been handed over to the buyers by 2006.Market reviewEconomyPositive outlook in 2007Malaysia’s economy remained resilient in 2006 with aGross Domestic Product (GDP) growth of 5.9%, driven byrising private consumption and a 10.6% surge in exports.Economic prospects will be brighter in the next few years,underpinned by continued strong consumption andincreasing investment. Stabilising oil prices and a relativelystrong ringgit will also help to contain inflationarypressures.ResidentialBrighter prospects aheadThe middle and luxury residential markets performedwell in 2006, with the number of transactions in theRM500,000 to RM1 million level rising by 15.8%. Thehigh-end market was boosted in December 2006 whenthe government eased rules for foreign buyers whopreviously needed approval to buy investment propertiesabove RM250,000.The residential market is expected to grow further in2007. The condominium sector will perform well, drivenby a strong economy, more affordable residential pricescompared to other Asian cities, and relaxation of ruleson foreign buying. Meanwhile, Malaysians will continueto look for traditionally popular landed properties. Theremoval of capital gain tax effective on 1 April 2007will also stimulate local and foreign investment in theproperty market.South Johor Economic Region plan to improveJohor Baru marketThe Johor residential market slowed down slightly in2006 amidst rising interest rates, increasing new homesupply and a “wait-and-see” attitude among potentialhome buyers. However, the Malaysian governmentunveiled in November 2006 a US$105 billion blueprintfor South Johor Economic Region to turn the Johor Baruarea into a prosperous Asian metropolis. This plan, with atarget regional economic growth of 8% per year, will spurinterest among Singaporeans looking for a second homeand boost the local real estate market.Malaysia 2005 2006E 2007F 2008FReal GDP growth (%) 5.2 5.9 5.4 5.6Commercial banks’ prime rate (average, %) 6.1 6.5 6.6 6.6Inward FDI (US$ Bn) 4.0 4.5 4.1 4.0Exchange rate (Ringgit/USD, average) 3.8 3.7 3.6 3.5Personal disposable income (US$ Bn) 72.2 79.6 85.7 91.3CPI change (average, %) 3.0 3.6 3.3 3.0Source: Economist Intelligence Unit144Operations and market reviewMalaysiaKeppel Land LimitedReport to Shareholders 2006

Operations and market reviewPhilippinesPalmdale HeightsKeppel Philippines Properties (KPP), which is 51% ownedby Keppel Land, currently has a residential developmentPalmdale Heights and a mixed development SM-KL Towersin Metro Manila.Palmdale HeightsDeveloped under KPP’s subsidiary Buena Homes (Sandoval)Inc., Palmdale Heights is a 7.6-ha residential developmentlocated in Pasig City, Metro Manila with easy access to theMakati and Ortigas central business districts (CBDs).The phased development will comprise 29 residentialblocks of 10-storey buildings with about 4,000 units, twocommercial centres and parking facilities. Amenities includea two-storey clubhouse with a multi-purpose hall, basketballand badminton courts, swimming pools and children’swading pools, gazebos, parks and playgrounds.The first and second phase, each comprising three blockswith 414 condominium units, were completed and handedover to the buyers ahead of schedule. As at end-February2007, some 94% of the 828 launched units has been sold.The subsequent phases will be launched according tomarket demand.The PodiumCBD. Phase One of the retail component, The Podium,which comprises five levels of quality retail, entertainmentand food and beverage outlets, was officially opened in 2002.The Podium is a stylish mall with world-class interiors andin close proximity to major offices in the Ortigas CBD. Withover 150 specialty stores, restaurants and service shops, itis now a choice venue for corporate events and meetings. Italso offers entertainment experiences with two state-of-theartcinemas, game centres and The Lounge, where events,regular shows and performances are held. Occupancy at ThePodium stands at more than 93% as of end-February 2007.Benguet Centre, a six-storey office building also located atthe SM-KL site, currently enjoys full occupancy.Metro North TownshipKeppel Land holds an option to develop a 600-ha townshipdevelopment comprising residential, commercial andinstitutional components located in San Jose Del MonteCity, Bulacan, north of Quezon City. It will be a primecommunity development incorporating urban living in anatural environment. The project will be developed accordingto market conditions.SM-KL TowersKPP and the SM Group in the Philippines are jointlydeveloping a mixed development including residential, officeand retail components on a 2-ha site located in prime OrtigasOperations and market reviewPhilippinesKeppel Land LimitedReport to Shareholders 2006145

Backed by economic growth,rising private consumption isexpected to push retail spacerentals up in Metro Manila.Ortigas CBD, PhilippinesMarket reviewEconomyEconomy driven by robust remittances from OFWsThe Philippine economy grew 5.4% in 2006, 0.4% higherthan that in 2005, due to rising private consumption andstrong service sectors. Gross National Product (GNP)grew 6.2%, fuelled by the 19.4% increase in remittancesfrom Overseas Filipino Workers (OFWs) to US$12.8 billion.Going forward, the economy is expected to grow further,supported by increasing remittances from OFWs, strongconsumption and recovering agricultural output. Theimproving fiscal position coupled with an expectedupgrade in the credit rating of the Philippines will furtherboost the economy.ResidentialAffordable financing to encourage homebuyingDemand for middle-income housing continued to grow onthe back of increasing buying power from OFWs. Rentalrates for prime 3-bedroom units in Makati CBD increased12% year-on-year to 470 pesos psm per month while capitalvalues grew 10% year-on-year to an average of 82,500pesos psm. Residential vacancy declined to 1,100 unitsby end-2006 from about 1,300 units in end-2005.Rental rates and capital values are expected toappreciate further in 2007, supported by rising demandfrom OFWs. Mortgage rates of as low as 10% perannum and payment period of as long as 30 years willfurther encourage homebuying.OfficeOutsourcing industry to fuel office segmentThe stock of leasable office space remained at 2.65 millionsm in Makati CBD and 1.04 million sm in Ortigas CBD.Vacancy rates in the two areas continued to decline to 4%and 7% respectively.Demand by business process outsourcing firms for largecontiguous office spaces outstripped existing supply,resulting in improved rental rates in 2006. Grade A rentalsin Makati CBD surged 31% to 850 pesos psm per month,while rentals in Ortigas CBD increased 7% to 400 pesospsm per month. Capital values grew 20% to 96,500 pesospsm and 10% to 51,000 pesos psm in Makati andOrtigas respectively.In 2007, demand from call centres and business processoutsourcing units as well as the tight supply will continueto boost rentals and capital values. Office developers arealso launching projects in alternative locations where landvalues are relatively lower.RetailStrong consumption to fuel demand for retail spaceRetail vacancy in Metro Manila is estimated at about 15%as at end-2006, up from 13% at end-2005, due mainly tothe rising stock of retail space with the completion of newmalls and expansion of existing ones.However, strong demand continues to push rentals up.Effective rental rates in Makati and Ortigas CBDs as atend-2006 reached 1,200 and 950 pesos psm per monthrespectively, both up 4% year-on-year. The retail sectorwill remain buoyant in 2007, with an expected 5% to 8%increase in effective rental rates.Philippines 2005 2006E 2007F 2008FReal GDP growth (%) 5.0 5.4 5.3 5.1Lending rate (average, %) 10.2 9.9 8.9 9.3Inward FDI (US$ Bn) 1.1 2.0 2.0 2.1Exchange rate (Peso/USD, average) 55.1 51.3 48.6 48.0Personal disposable income (US$ Bn) 56.6 69.9 79.8 89.0CPI change (average, %) 7.6 6.3 4.0 4.0Source: Economist Intelligence Unit146Operations and market reviewPhilippinesKeppel Land LimitedReport to Shareholders 2006

Operations and market reviewThailandKeppel Thai Properties (KTP) is a listed company on theStock Exchange of Thailand. KTP is developing two detachedhousing projects in Bangkok under the “Villa Arcadia” brand.Villa Arcadia at SrinakarinVilla Arcadia at Srinakarin is a 367-unit detached housingdevelopment on a 16-ha site located at Srinakarin, about17 km southeast of Bangkok downtown. The modern tropicaldevelopment provides a resort-like ambience amidst lushlandscaping, together with full facilities including swimmingpools, a fitness centre, a sauna, a jacuzzi, a games room, alibrary, and 24-hour security. Some 98% of the 100 launchedunits has been sold as at end-February 2007.Villa Arcadia at WatcharapolKTP is developing its second detached housing project underthe “Villa Arcadia” brand on a 12.5-ha site located at Watcharapol,about 20 km north of Bangkok. The 270-unit bungalow project,designed by well-known RMJM Architects, will offer moderndesign, lush landscaping and water features, and full amenitiesincluding swimming pools, a clubhouse and a fitness centre.The project will be officially launched in 2007.KTP will remain focused on trading properties in the GreaterBangkok area and seek new sites for development in otherresidential segments.Market reviewEconomyModerate growth in 2007The Thai economy managed to post 5.1% GrossDomestic Product (GDP) growth in 2006, up from 4.5%growth in 2005, supported by sound fundamentals,strong exports and a fiscal surplus, despite uncertaintiesfollowing the change of leadership, the imposition ofcurrency and investment controls, the bomb attacks inBangkok, and proposed changes to foreign investmentlaws. The Thai economy is expected to grow at amoderate pace, underpinned by lower interest rates andoil prices, declining inflation, rising infrastructure spendingand recovering consumer confidence.ResidentialMore positive outlook in longer termThe residential market remained resilient in 2006 and willcontinue to grow, supported by steady economic growth,high employment levels, rising income and recoveringconsumer confidence.Housing demand will continue to focus on the midendsegment with convenient connection to the masstransport system, while good quality condominiums withrecognised brands will perform well due to increasing landscarcity and relatively high foreign demand. Future supplyranging from lower-priced condominium units to luxuryvillas will trend towards the eastern part of Bangkokaround the Suvarnabhumi International Airport and othernew infrastructure.Thailand 2005 2006E 2007F 2008FReal GDP growth (%) 4.5 5.1 4.5 4.8Commercial banks’ prime rate (average, %) 5.8 7.4 7.6 6.3Inward FDI (US$ Bn) 4.5 6 2.9 3.3Exchange rate (Baht/USD, average) 40.2 37.9 35.1 34.9Personal disposable income (US$ Bn) 95.5 108.8 126.0 136.8CPI change (average, %) 4.5 4.6 3.6 3.0Source: Economist Intelligence UnitOperations and market reviewThailandKeppel Land LimitedReport to Shareholders 2006147

Regional networkWith its strong regional networkand reputation, Keppel Land is Asia’spremier property developer.OfficeResidentialMixed DevelopmentIndustrialData CentreMass Rapid Transit LinesExpresswayOfficeResidentialMixed DevelopmentIndustrialData CentreMass Rapid Transit LinesExpressway24101281471611 917186133 2 120 4 1924222321155Office1. Ocean Building2. Ocean Towers3. Equity Plaza4. One Raffles Quay5. The HarbourFront Office ParkResidential6. Pebble Bay7. Nassim Woods8. Cluny Hill Land9. Park Infinia at Wee Nam10. Freesia Woods11. The Linc12. The Tresor13. Urbana14. Naga Court development15. Keppel Bay Precinct* 101216. The Elysia17. The Crest @ Cairnhill18. Devonshire RoaddevelopmentMixed Development19. Marina Bay Financial Centre20. Heritage Court21. Joo Chiat ShophousesIndustrial22. Quartz Industrial Building23. Orion Industrial BuildingData Centre24. Keppel Digihub8147151611 917186133 2 120 4 195222321* Includes Caribbean at Keppel Bay, Reflections at Keppel Bay, Marina at Keppel Bay and Keppel Bay plots 3, 4 and 6.148 Regional networkKeppel Land LimitedReport to Shareholders 2006

52 Hong KongINDIAKolkata 55MYANMAR70 MandalayYangon 69THAILAND65Bangkok62 64Hanoi 7130VIETNAMBeijing 3942 43 44Tianjin45 46 47585657SOUTH KOREA5960PHILIPPINESSeoulJAPANTokyoBangalore 53 5461 63CHINA7233 3431 32 Ho Chi Minh CityJiangyin 49 50Changzhou 51MALAYSIAChengdu 40 41Wuxi 48Shanghai 36 37 3867 ManadoKunming 7335 SINGAPOREBatam 74 75 66Bintan52 Hong KongINDIAKolkata 55MYANMAR INDONESIA70 MandalayYangon 69THAILAND29 27 Hanoi 71Jakarta 2830 25 26 Surabaya65Bangkok62 6468YogyakartaVIETNAM76Bali5856575960PHILIPPINESBangalore 53 5461 637233 3431 32 Ho Chi Minh CityMALAYSIAProperty67 ManadoHotels/Serviced ApartmentsResortsPropertyIndonesia25. Galleria Tunjungan, Surabaya26. BG Junction, Surabaya27. Jakarta Garden City, Jakarta28. Pasadenia Garden, Jakarta29. Wisma BCA, JakartaVietnam30. International Centre, Hanoi31. Saigon Centre, Ho Chi Minh City32. Tamarind Park, Ho Chi Minh City33. Residential Development, Ho Chi Minh City34. Saigon Sports City, Ho Chi Minh CityMalaysia35. Taman Sutera, Johor BaruChina36. Park Avenue Precinct, Shanghai37. Villa Riviera, ShanghaiProperty38. Office Development, Shanghai39. The Seasons, BeijingHotels/Serviced Apartments40. The Waterfront, Chengdu41. The Botanica, Chengdu Resorts42. The Arcadia, Tianjin43. Golf Course Development, Tianjin44. Residential Development, Tianjin45. Residential Development, Tianjin46. Mixed Development, Tianjin47. Mixed Development, Tianjin48. Township Development, Wuxi49. Mixed Development, Jiangyin50. Golf Course Development, Jiangyin51. Residential Development, ChangzhouHong Kong52. The Waterfront at Kowloon Station, Hong KongIndia53. Elita Promenade, Bangalore54. Elita Horizon, Bangalore55. Residential Development, KolkataINDONESIA35 SINGAPOREBatam 74 75 66Bintan29 27Jakarta 28Philippines56. SM-KL Towers, Metro Manila57. Palmdale Heights, Metro Manila58. Metro North Township, Quezon City59. Landbank in Cebu60. Sampaguita Ville, Cebu68YogyakartaThailand61. Jewellery Centre, Bangkok62. Sukhaphiban 3 Mansion, Bangkok63. Residential Landbank at Highway 332 in Sattahip64. Villa Arcadia at Srinakarin, Bangkok65. Villa Arcadia at Watcharapol, BangkokHotels/Serviced ApartmentsIndonesia66. Club Med Ria Bintan67. Hotel Sedona Manado68. Melia Purosani Hotel, YogyakartaMyanmar69. Sedona Hotel Yangon70. Sedona Hotel MandalayVietnam71. Sedona Suites, Hanoi72. Sedona Suites, Ho Chi Minh CityResortsChina73. Spring City Golf & Lake Resort, KunmingIndonesia74. Ria Bintan75. Nongsa Point Marina, Batam76. Tanah Lot Resort, Bali25 26 Surabaya76BaliRegional networkKeppel Land LimitedReport to Shareholders 2006149

People reviewKeppel Land’s managementdevelopment programmes aimto identify, nurture and developoutstanding performers.Business-centric human resource structureTo better align human resource initiatives with businessgoals and needs, the human resource division adopted a newstructure in 2006.This involved the implementation of an account managementsystem in which different human resource teams wereset up, each dedicated to managing the needs of specificbusiness units that it has been assigned.Such a business-centric approach generates greater synergiesbetween the human resource and various business units. Inthe process, it effectively identifies and addresses staffingrequirements and challenges. Greater insight into actualbusiness operations also results in more relevant humanresource solutions in areas of recruitment, training andcareer development.Automating work processesIn 2006, three online systems were developed to automateseveral human resource processes. These include the StaffAppraisal and Performance Management (SAPM), Staff TrainingAnd Record (STAR) and Staff Expense Claim Online (SECO).SAPM, which automates the performance review processand allows department heads to access staff performancerecords, targets and training plans online, was launched inOctober 2006.150 People reviewKeppel Land LimitedReport to Shareholders 2006

People reviewExecutiveNon-executive91ExecutiveNon-executive80276235In addition, the programme’s comprehensive assignmentssuch as presenting to the Board Risk Committee and leadingspecial projects like Customer Relationship Managementhelp to accelerate their learning process and give themadditional perspectives and insights to the Company’sbusiness operations. Feedback sessions are also conductedwith these young managers to monitor their progress inthe programme.Local Managers Development ProgrammeAimed at growing local talents in Keppel Land’s overseasoperations, the Local Managers Development Programmewas launched in July 2006 for Keppel Land’s overseasoffices, with a long-term view to localise some positions inthe management team of its overseas operations.The programme seeks to train local managers of highpotential to take on greater leadership roles in areas such asproject management, business development, marketing andproperty management. Their familiarity with the language,culture, business practices, and networks in their respectivecountries are key assets that will contribute to sharpeningthe Company’s competitive edge.To ensure strategic alignment to the Group’s businessdirections and focus, a group of overseas managers fromregional offices attended a corporate orientation and trainingprogramme organised by Keppel Land’s human resourcesdepartment in July 2006.Hailing from countries such as China, India, Indonesia andVietnam, the 30-strong delegation participated in a workshopwhich focused on leadership training, inter-functionalassignments and challenging projects involving multifunctionalcoordination. The activities also included a tourto some of Keppel Land’s properties such as Caribbean atKeppel Bay, Park Infinia at Wee Nam and One Raffles Quay.Back in their home countries, the local managers will be giventhe exposure and the opportunities to further develop theirleadership and technical skills in the Group’s overseas offices.152People reviewKeppel Land LimitedReport to Shareholders 2006

Regional manpower distributionQualifications of management and executive staff19.1%9.0%10.1%3.3%SingaporeChinaIndonesiaThailandPhilippinesIndiaVietnamMyanmar8.5%1.2%0.9%1.9%36.2%Masters and/orPost GraduateGraduate DegreesGraduate DiplomasDiploma or GCE “A” LevelOthers0.4%30.4%23.0%55.8%Qualifications of non-executive staffTraining expenditure distribution11.0%3.3%0.8% 8.0%7.6%Degree/ProfessionalCertificationDiploma or GCE “A” LevelGCE “O” Levels/IndustrialCertificateSecondary38.5%47.3%Diploma/Degree(under StudyAssistance Scheme)ConferencesIndustry-related andJob-specific External CoursesSkills TrainingLeadership CoursesLanguage Courses34.2%36.6%12.8%Career planningRecognising the need to attract and retain promising staffto develop the talent pipeline, Keppel Land continued itssuccession planning exercise for its key positions. Extensivediscussions were held in 2006 with the individual headsof department to identify their major current and futurechallenges, possible successors and young talents.Going forward, a career planning process will be put in placein 2007. This involves drawing up individual developmentplans for each staff, taking into account their strengths andcareer aspirations. The process, which aims to acceleratestaff development, underscores the Company’s commitmentto its employees’ career paths and opens another channel ofcommunication between management and staff.To help match employees’ career aspirations, skillsand competencies to business needs, an IT system tofacilitate such deployment decisions is also earmarked forimplementation in mid-2007. Starting from the RegionalInvestments unit, it will eventually be introduced to otherbusiness units within the Company.Enhancing skill setsTo reinforce critical leadership concepts and peoplemanagement skills, a three-day workshop on leadershipdevelopment was held for the Regional Investmentsmanagement team in November 2006.With the help of an external trainer, key people managementconcepts such as coaching, delegating, setting and drivingperformance as well as providing feedback, were addressed.Self-awareness of the participants’ leadership styles througha feedback exercise enabled the managers to gain insightsof their own work behaviours and impact. The humanresource team also shared views on key processes thatfacilitate the matrix reporting structure as well as careerplanning initiatives.During the year, staff also attended various workshops ontopics including presentation skills, people leadership andbehavioural interviewing skills.People reviewKeppel Land LimitedReport to Shareholders 2006153

Annual Dinner and Dance 2006Synergy across bordersAnnual Regional ConferenceAs Keppel Land continues to pursue growth plans andinitiatives, one of the communications channels used toimpart corporate objectives to its employees is the AnnualRegional Conference (ARC) which brings key executivestogether in Singapore.This annual conference is an invaluable source of creativesolutions and new initiatives, serving as a lively platformfor strategic collaboration and exchange of best practicesand new ideas, as well as cross-learning opportunities andnetworking between local and overseas staff.In April 2006, more than 100 overseas postees returned fromChina, India, Indonesia, Vietnam, and other parts of Asia forthe two-day conference. Besides giving an overview of thestrategic thrusts for the year and presentations on otherbusinesses in the Keppel Group, the conference providedinsights on how synergistic benefits could be yielded throughcollaboration between strategic business units within theKeppel Group.The ARC demonstrated management’s resolve towardsimproving processes to quicken decision making, signallinga move towards a more progressive and open culture, whichwill aid the Group’s response to market changes.Rounding off the conference was the Company’s AnnualDinner and Dance which provided a relaxing atmosphere forthe overseas staff to mingle with their local counterparts.Race partner in Clipper Round-the-World Yacht RaceAs part of the Keppel Group, Keppel Land supported theUniquely Singapore entry in the Clipper Round-the-WorldYacht Race. One of the world’s most celebrated andprestigious international yachting events, Singapore is thefirst Asian city to join the international racing fleet. TheSingapore crew pitted their skills against an internationalline-up of 10 teams.Among the two Keppel Group staff who were chosen tobe Keppel ambassadors aboard Uniquely Singapore aftera rigorous screening process was Keppel Land’s AssistantGeneral Manager, Tony Leong. Armed with over 25 years ofsailing experience, he undertook the Australia-to-Qingdaoleg of the race.154People reviewKeppel Land LimitedReport to Shareholders 2006

Keppel Land’s employees areencouraged to maintain worklifebalance to ensure a robustworkforce.Bull Run 2006Embracing the spirit of the yachting event, which is aboutadventure and achievement, passion and a global outlookand inclusive mindset, the Keppel ambassadors helpedspread Keppel’s and Singapore’s message of goodwill in theirrespective destinations and to the international community.Promoting employee wellnessRecognising the importance of a healthy lifestyle inensuring physical and mental fitness, Keppel Landremained committed to the Health Charter, a workplacehealth promotion programme aimed at developing a robustworkforce. For its efforts in the effective implementationof the Workplace Health Promotion Plan in 2006,Keppel Land garnered the Singapore Health PromotionBoard Silver Award.Staff are encouraged to lead a well-balanced and healthylifestyle through various activities organised by the StaffWelfare Committee. Into its 10 th year of operations in2006, the committee comprises staff from all levels of theCompany. The 16-member strong team and the chairmanshipof the committee are rotated every year to ensure that freshand new ideas are continuously generated.Adopting the theme of Healthy Life, Wealthy Life in 2006,the committee organised competitive sports, healthscreenings and health-related talks by professional bodiesthroughout the year. These included talks on smoking,ergonomics and back care, eye care and anti-ageing.To inject an element of fun into the activities, classes suchas baking workshops and in-line skating lessons were alsoconducted. Held after work or during lunch hour, theseactivities have been very well attended, and helped to fostergreater camaraderie and esprit de corp among employees. Abag of fruits or packet of fruit juice is also given to every staffat the end of each month.In addition, Keppel Land renewed its corporate membershipat the Clark Hatch Fitness Centre at InterContinentalSingapore for the eighth year running, following heavyusage of its facilities by staff. Conveniently located withinthe same development as Keppel Land’s headquarters,the fitness centre provides a venue for staff to unwind andwork out at the gymnasium, a swimming pool as well as theindoor and outdoor jacuzzis. Staff have the flexibility of usingthe facilities during lunch breaks, before or after work onweekdays as well as weekends.To encourage a balanced lifestyle and family togetherness,Keppel Land celebrated the National Family Week byparticipating in the Eat with Your Family Day. Employeeswere released earlier from their work commitments andgiven dining discounts to encourage them to dine withtheir families.People reviewKeppel Land LimitedReport to Shareholders 2006155

Corporate and social responsibilityKeppel Land aims to operate inan economically, socially andenvironmentally sustainable way,to safeguard the interests of allits stakeholders.Caribbean at Keppel BayPursuing best practicesRecognising the rising importance of corporate socialresponsibility (CSR) in building confidence and goodwill withkey stakeholders, Keppel Land constantly strives to adoptand implement best practices in its business operations.The Group aims to operate in an economically, socially andenvironmentally sustainable way, to safeguard the interestsof its shareholders and investors, customers, employees, theenvironment and the larger community in which it operates.In 2006, Keppel Land joined Singapore Compact, whichserves as a platform for fostering dialogue and collaborationon CSR.It also joined the Singapore Green Business Alliance, anassociation that promotes environmental protection, bestpractices and cooperation among Singapore companies.In recognition of its CSR efforts, Keppel Land was a finalistin the ACCA Singapore Environmental Reporting Awardsheld in March 2007.Benchmark of building excellenceKeppel Land is committed to building quality propertieswith premier investment value and brand equity thatenhances its competitiveness. Its portfolio of internationallyacclaimeddevelopments is testimony to its commitmentto quality excellence.Two of the Group’s projects won the prestigious FIABCIPrix d’Excellence 2006 Awards. Caribbean at Keppel Baywas winner in the residential category, while HarbourFrontOffice Towers was runner-up in the office/industrial categorybased on criteria including environmental and social impacts.Organised by the International Real Estate Federation,the awards recognise the best in global real estate and isregarded as the Oscars of the real estate industry.Caribbean at Keppel Bay also received the ConstructionExcellence 2006 Merit Award from the Building andConstruction Authority for its high standard of management,technical expertise and workmanship.156Corporate and social responsibilityKeppel Land LimitedReport to Shareholders 2006

Keppel Land constantly strivesto strike a balance betweeneconomic objectives andenvironmental viability.Ria Bintan Golf ClubFostering a safety culture will bea key area of focus in 2007.In Kunming, China, Spring City Golf & Lake Resort wasnamed China’s Leading Golf Resort for the secondconsecutive year at the 12 th World Travel Awards 2006.Voted independently by 156,000 travel agencies andprofessionals from 140 countries, the award recognisesprojects which set new benchmarks in the areas of customerservice, technology, operational efficiency and product.Enhancing investor relationsProactive communication with shareholders andinvestment communityIn maintaining a high standard of accountability and corporatetransparency, Keppel Land’s management takes a proactiveapproach in communicating with shareholders and theinvestment community at large.Frequent meetings are held with analysts and fund managersfrom Singapore and abroad through one-on-one and groupmeetings, conference calls and roadshows. Briefings arealso held for its full-year and interim results. These help tobuild good relations and effectively address concerns of theinvestment community.Recognition for good corporate governanceThe Group continued to receive several prestigious awardsfor its good governance practices.Keppel Land won the Gold Award for Best Annual Reportin the category for companies with market capitalisation of$500 million or more, at the inaugural Singapore CorporateAwards held in March 2006. Organised by The BusinessTimes and UBS and supported by the Singapore Exchange,the award recognises the most outstanding annual reportbased on criteria such as transparency, adequacy ofdisclosure and presentation of information.Keppel Land also emerged as the only property developer inthe Top 10 among 621 companies in the 2006 Business TimesCorporate Transparency Index, which ranks companies fortransparency in disclosures in their 2005 financial results.At the SIAS Investors’ Choice Awards 2006, Keppel Landbagged the runner-up award for the Most TransparentCompany under the property category. Organised by theSecurities Investors Association (Singapore), this is theseventh year running that the Group has won the award,based on criteria including timeliness, frequency, clarity andsubstantiality of corporate disclosures, as well as willingnessto reveal information to analysts and the media.Emphasising work safetyWorkplace Safety and Health CommitteeIn 2006, a Workplace Safety and Health Committee (WSHC)was formed to spearhead initiatives on safety, create asafety culture in the Company, and formulate policies andguidelines on workplace safety. With the assistance ofan appointed Occupational Safety and Health consultant,Lockton Companies (Singapore), the WSHC implementedCorporate and social responsibilityKeppel Land LimitedReport to Shareholders 2006157

Corporate and social responsibilityKeppel Land’s Safety Management Plan. Measuring acontractor’s performance against a set of safety standards,the plan pre-qualifies contractors for invitation to tenderwhile evaluating the safety standards of existing contractors.The Group selects only contractors and suppliers who shareits commitment to high quality, environmental, health andsafety standards. They are mainly ISO-certified, such asObayashi (One Raffles Quay), Shimizu (Caribbean at KeppelBay), Poh Lian (Urbana and The Tresor), Chip Eng Seng(Devonshire Road project), Tiong Aik (Park Infinia at WeeNam) and Keong Hong (Butterworth 8).Besides visiting worksites of its projects to propagate asafe working environment, contractors were also invited toshare their experiences at regular workshops organised bythe WSHC.A Board Safety Committee has been formed in 2007. It willset directions and guide management in the formulationof safety policies and processes, so as to achieve a safetyculture in the Company. Regular training and seminars byexternal consultants will be also held to reinforce employees’knowledge on risk management, safety requirements andregulatory compliances.Safety auditsGoing beyond statutory requirements, Keppel Landcommissions monthly safety audits by independent partiesfor its projects. Besides identifying risk areas at variousstages of construction, it also promotes greater safetyawareness among its contractors.Risk management and safety reports on the Group’soperations in Singapore and overseas are also submittedto the Board every quarter.Recognition for exemplary workplace safety standardsIn 2006, Keppel Land’s Urbana condominium at RiverValley Road was recognised for its exemplary standardsof workplace safety and health management systems atthe inaugural Workplace Safety and Health Awards 2006organised by the Ministry of Manpower and the WorkplaceSafety and Health Advisory Committee. Urbana’s appointedconstruction firm, Poh Lian Construction, was presentedwith the ASHPA (Silver) award for its good safety and healthmanagement processes.Fostering healthy workplaceFor the second consecutive year, Keppel Land receivedthe Singapore H.E.A.L.T.H Silver Award 2006 from theHealth Promotion Board in recognition of its commendableworkplace health promotion programmes that look into thewellness of employees.These include year-round workshops on health-relatedtopics, health screenings and competitive sports held withother business units within the Keppel Group. Based onthe theme of Healthy Life, Wealthy Life, these activitieswere spearheaded by the Staff Welfare Committee, whichcomprises representatives from all departments inthe Company.Corporate membership to the Clark Hatch Fitness Centreat InterContinental Singapore was also renewed forthe eighth year running due to its popularity with staff.Conveniently located within the Bugis Junction developmentwhere Keppel Land’s headquarters is also situated, staff canuse the facilities before or after work, during lunch breaks oron weekends.Being environmentally responsibleEnvironmental policyKeppel Land strives to create an optimal living environmentwhich epitomises quality, innovation and integrity. The Groupadheres to the guiding principle that properties should bedeveloped to harmonise and improve the environment aswell as enhance the quality of life of the people in the designand development of all its projects.Green Mark AwardIncorporating best practices in environmental design andperformance, Keppel Land’s The Tresor condominiumproject received the Green Mark Gold Award 2006 from theBuilding and Construction Authority. The award recognisesThe Tresor’s sustainability in building performance as well asenvironmental friendliness and awareness at all stages, fromproject conceptualisation to design to construction.158Corporate and social responsibilityKeppel Land LimitedReport to Shareholders 2006

One Raffles QuayOne Raffles Quay, Keppel Land’s new landmark officedevelopment has also submitted its application for theGreen Mark 2007.Value engineering in constructionStriking a balance between economic objectives andenvironmental viability, Keppel Land practises valueengineering in the construction of its buildings and usesenergy-saving devices in its properties.Going beyond industry practices, Keppel Land used astate-of-the-art, cutting-edge technology known as theInnovative Hybrid Structural System in the constructionof One Raffles Quay. Comprising concrete core,perimeter concrete-filled steel tube columns, outriggertrusses and diaphragm floors, this structural solutionminimises the building’s weight and movements. It isprobably adopted for the first time in the world for abuilding of such proportions and height (245m and50-storey tall), rendering One Raffles Quay the leader inenvironment technologies.To ensure business continuity for its tenants, One RafflesQuay is supplied with power and telecom feeds from dualsources. The 24-hour chilled water supply is backed up byauxiliary chillers, while landlord gen-sets provide emergencypower supply. Such extensive back-up provisions make itattractive for tenants such as ABN AMRO, Deutsche Bankand UBS which require uninterrupted, round-the-clockoperations. Large, column-free floor plates up to 30,000 sfand knock-out panels for staircases and cabling allow formaximum efficiency and flexibility.One Raffles Quay is also the first commercial project inSingapore to incorporate a travellator within the building,allowing convenient mass movement of people between itstwo towers in a sheltered, air-conditioned environment. TheTravellator Link Area also serves as the link to the upcomingMarina Bay Financial Centre. In addition, One Raffles Quayhosts a District Cooling Plant which provides centralisedand more efficient air-conditioning for adjoining sites in theMarina Bay area.Energy-efficient features at One Raffles Quay such asthe energy wheel which pre-cools air before supplying tothe Air Handling Units (AHUs), variable air-volume systemfor optimum control of air-conditioning, light fittings withelectronic ballasts, ductless ventilation system for car parksand motion sensors in toilets, escalators and travellatorsreduce energy consumption.Environment protection features that prevent the greenhouse effect and depletion of ozone layer have becomeimportant standard features in Keppel Land’s buildingdesigns. An energy-saving Building Envelop System is beingadopted at The Tresor, The Crest @ Cairnhill, Naga Court andReflections at Keppel Bay condominiums. This includes usingdouble-glazed low heat emission glass, orientating units toCorporate and social responsibilityKeppel Land LimitedReport to Shareholders 2006159

Villa Arcadia at Srinakarin, Thailandface north and south as well as using solar-powered lightsand inverter air-conditioning to conserve energy.Carbon monoxide sensors added to the exhaust fans atThe Tresor’s underground carpark allow fans to beautomatically switched off whenever the carbon monoxideconcentration is at safe levels. With this, savings in energycost for the two years that the project is under constructionmore than offset the cost of the carbon monoxide sensors.Reducing waste and pollutionSewage treatment plants have been set up at BG Junctionretail mall in Surabaya, Indonesia as well as Elita Promenadeand Elita Horizon condominium sites in Bangalore, Indiato treat effluent water. This is then recycled for landscapeirrigation and toilets.In Kunming, China, retention basins at Spring City Golf &Lake Resort prevent chemicals present in the overspill ofsurface water from flowing into the adjacent Yang ZongHai Lake. Tests are also conducted on the water from thelake every year to ensure its cleanliness. Golf courses likeSpring City and Ria Bintan in Indonesia also use slow-releasefertilisers and biodegradable chemicals on the turf.At the same time, Sedona Hotel Mandalay in Myanmarreduced the chlorine dosage in its pool from 135 kg to73.5 kg per month. At Sedona Hotel Yangon, steam waterfrom the laundry machine is used to power the boiler.Creating urban sanctuariesKeppel Land makes efforts to infuse thoughtful greeninitiatives into its residential developments. About 40% ofthe 79,000 sm site at Elita Horizon in Bangalore, India isdedicated to lush landscaping, while resort-style gardenbathrooms at Villa Arcadia at Srinakarin in Bangkok, Thailandand deciduous trees at The Seasons in Beijing, China allowresidents to enjoy nature all-year round.Caribbean at Keppel Bay waterfront condominium, which ishome to some 2,200 shrubs and 800 trees, was bestowedtwo awards at the Landscape Industry Association(Singapore) Awards of Excellence 2006. These include theGold Award in the Implementation/Residential category forthe quality of plant materials used, installation techniques andcraftsmanship and Silver Award in the Maintenance categoryfor the condition of the plants and cleanliness of the site.Going eco-officeIn line with its environmentally-friendly initiatives, topmanagement encouraged the use of electronic greetingcards during the Christmas and New Year season.By placing its annual reports on its website, Keppel Landsaved much paper production costs, as well as the postagefees for overseas readers.Keppel Land also has the message “Save Paper – Thinkbefore you print!” attached to all its outgoing andincoming emails.160Corporate and social responsibilityKeppel Land LimitedReport to Shareholders 2006

Many workflow processes have also gone online. TheProject Progress Payment System authorises payments tocontractors online, while the Defects Management Systemtracks defects and rectification works in properties online.Travel and leave applications, payslips and facilities bookingare placed on the Intranet. Condominium portals created forCaribbean at Keppel Bay, Freesia Woods, Amaranda Gardensand Butterworth 8 condominiums allow residents to bookfacilities online.Scrap paper, old newspapers and magazines are sent torecycling agencies. Recycling bins placed in residentialdevelopments such as Caribbean at Keppel Bay encourageresidents to adopt the good habit. Rain water is alsocollected in the large-scale waterfront development forcleaning the underground carpark.Hotels and resorts under Keppel Land’s hotel arm, SedonaHotels International, use old guest laundry bags as wastebin bags and recycle old linen in the housekeeping andstewarding departments. Suppliers are also encouraged tosupply food and drink items in reusable crates and bottles.Environmental reporting and auditFor the past 10 years, Keppel Land has dedicated a sectionin its annual report detailing its environmental initiatives.A link to its latest environment report is also placed on thefront page of its website.In addition, Keppel Land’s property management teamconducts tests in office buildings and tenants’ premisesevery two years, based on the guidelines provided by theNational Environment Agency. This ensures high standardsof indoor environment in terms of temperature, humidity,lighting and indoor air quality. Water meter readings are alsoread daily to allow the maintenance staff to identify andprevent instances of irregular high consumption resultingfrom occurrences such as leaking pipes.Contributing to the communityKeppel Volunteers ProgrammeKeppel Land continues to participate actively in the KeppelVolunteers Programme. Started in 2000 as a Keppel groupwidevolunteer movement, the programme has to-dateseen more than 60 Keppel Land staff volunteering theirservices at its adopted charity, the Association of Personswith Special Needs (APSN). APSN runs five special schools,comprising three primary schools (Chaoyang, Jervois andKatong special schools), one intermediate school (TanglinSpecial School) for those aged 13-16, one senior school(APSN Delta Senior School) for those aged 16-18, and theAPSN Centre for adults.Besides activities which aim to familiarise and integrate thestudents with society at large, a fund-raising event was heldin 2006, during which a total of about $23,000 was raised.This went towards training senior students of APSN inwork-related skills. A workshop to equip staff with the skillsto interact with children with special needs was also heldduring the year.Believing that charity goes beyond just giving out cash tobeneficiaries, management strongly supports volunteeractivities and gives every staff two days off from work eachyear to do voluntary work.Opening doors through educationKeppel Land is committed to doing its part to provide accessto education opportunities that open new doors to progress.In this respect, Keppel Land has come to the aid ofunderprivileged children through the MILK (Mainly I LoveKids) Fund. MILK is a charity organisation that gives hopeto disadvantaged children by funding their education, careand guidance, medical treatment or other special needs andguiding them back to mainstream society.Through MILK, Keppel Land contributed RMB 1 million to theconstruction of a middle school hostel for the needy childrenof Luo Yuan County, a rural community in Fujian Province,China. The hostel can house about 1,000 students, whowould otherwise have to walk at least four hours to and froeveryday to get to school.Corporate and social responsibilityKeppel Land LimitedReport to Shareholders 2006161

Corporate and social responsibilityKeppel Land is committedto positively impactingcommunities wherever itoperates.During the Chinese New Year season, Keppel Land’s staffcontributed to MILK’s Share a Meal (SAM) fund, which wasset up for needy students from low income families in crisis.Keppel Land matched dollar-for-dollar the amount that staffdonated to the fund.In August 2006, Keppel Land’s Saigon Sports City in Ho ChiMinh City (HCMC), Vietnam presented a US$15,000 SaigonSports City Education Scholarship towards the education ofneedy youths in HCMC, in celebration of Singapore’s 41stNational Day and the country’s ties with Vietnam.In Myanmar, Hotel Sedona Mandalay sponsored 21 localyouths on a one-year Hospitality Training Course in 2006.This is the ninth batch of students that the hotel has trained.Upon completion, outstanding trainees were employed bythe hotel. The hotel also invited 111 orphans from the Girl’sTraining School to its premises for a luncheon in May.Networking through Bull Run 2006In November, Marina Bay Financial Centre (MBFC)sponsored the Bull Run 2006, an annual charity fun race nowinto its third year. In addition to the $40,000 sponsorshipcontribution, MBFC rallied its shareholders, architects andbusiness associates for the run. The event raised a total of$2.9 million, up from the previous year’s $2.3 million.This amount went towards 13 charities, including theAutism Association of Singapore and The Straits TimesSchool Pocket Money Fund.Supporting Heart BusesIn support of the President’s Challenge 2006, Keppel Landsponsored two SBS Heart Buses. The buses will ply thestreets from February to July 2007. Beneficiaries of theHeart Bus project include Rainbow Centre, Pathlight Schooland Community Chest.Wishing Christmas treesCapitalising on its large tenant base, Christmas trees carryingwish tags from children from the APSN schools are setup each year at the lobbies of office buildings managedby Keppel Land, including Ocean Building, Ocean Towersand Equity Plaza. Now into its fourth year, the project hasfulfilled more than 2,000 wishes of children, aged betweensix and 17 years old. In 2006, all 780 wishes from children ofChaoyang, Katong, Tanglin and Delta special schools, weregranted by generous tenants of the buildings.Aiding overseas communitiesIn its continuous effort to contribute to the local community,Keppel Land’s Spring City Golf & Lake Resort in Kunming,China, tied up with the Swedish International DevelopmentCooperation Agency (SIDA) to provide healthcare anddental services to the villagers. SIDA is an initiative of theSwedish government aimed at improving living conditionsof the poor in some 120 countries across Africa, Asia, LatinAmerica and Europe, through emergency relief projectsto long-term development programmes. Spring City alsoassists healthcare professionals from across Sweden, China162Corporate and social responsibilityKeppel Land LimitedReport to Shareholders 2006

and Singapore in identifying secluded villages and providingtransportation to these remote areas. In addition, SpringCity initiated a staff fund-raising programme to encourageemployees to pledge a part of their monthly pay to helpfund hygiene, health, dental as well as water and sanitationprogrammes for the villages.Keppel Land’s office in Bangalore, India worked closely withthe local residents’ committee to fund the redevelopment ofa 1.7 km stretch of road near the Group’s Elita Promenadeproject which had been damaged by a heavy downpour. A3,800 sm local community park was also redeveloped andsome 200 light bulbs were donated to replace damagedstreet lamps on the main road.In Thailand, Keppel Land not only educated residents at itsVilla Arcadia at Srinakarin and Villa Arcadia at Watcharapolprojects in Bangkok on the bird flu pandemic, but alsohelped to set up aid equipment and emergency responseprocedures. It also donated food to the public through theThai Red Cross Society in September 2006.Following the outbreak of a major earthquake in Yogyakarta,Indonesia in May 2006, Ria Bintan held a golf charity event inJuly to raise funds for the recovery of the Central Java city.BG Junction in Surabaya also helped raised funds for victimsof the earthquake.In Beijing, Keppel Land’s staff brought cheer to the BeijingZhi Guang Special Education School, home to over 100mentally and physically disabled children, during the Mid-Autumn Festival and Christmas, during which they donatedbooks, stationery, clothes, computer and a television set tothe children.Similarly, staff at Sedona Hotel Yangon in Myanmargenerously donated food, toys, books and old clothings everymonth to the School for the Blind and various orphanagesincluding the nursery school for orphans under six yearsof age, the school for disabled children, and the vocationaltraining centre for disabled adults.Keppel Land’scommitment to its stakeholdersOur customersTo develop quality homes and products with premierinvestment value, and build on brand equity to enhanceits competitive edgeOur investorsTo build on strong fundamentals to deliver continuedearnings growth and maximise shareholder returnsOur staffTo realise their full potential and cultivate knowledgebasedemployees with good work-life balance for amotivated and dedicated workforceOur business partnersTo integrate the strengths of partners, strong regionalnetwork and knowledge as well as brand equity tocapitalise on opportunitiesOur contractors and suppliersTo team up with quality contractors and supplierswho share the Group’s commitment to high quality,environmental, health and safety standardsOur environmentTo create an optimal living environment whichepitomises quality, innovation and integrityOur communityTo be a committed and responsible corporate citizen,improving the welfare of the needy and contributing tothe communities that the Group operates inCorporate and social responsibilityKeppel Land LimitedReport to Shareholders 2006163

Statutory report and accounts

Directors’ reportFor the financial year ended 31 December 2006The Directors submit their report together with the audited consolidated financial statements of the Group for the year ended31 December 2006 and balance sheet and statement of changes in equity of the Company for the year ended 31 December 2006.1. DirectorsThe Directors of the Company in office at the date of this report are:Lim Chee Onn, ChairmanKevin Wong Kingcheung, Managing DirectorKhor Poh HwaLim Ho KeeTsui Kai ChongLee Ai MingTan Yam PinNiam Chiang MengHeng Chiang MengEdward Lee Kwong Foo (Appointed on 1 July 2006)Choo Chiau BengTeo Soon HoeThai Chee Ken, who was also the Chairman of the Audit Committee, resigned on 16 March 2006.The Directors holding office at the end of the financial year and their interests in the share capital of the Company andrelated companies as recorded in the register of Directors’ shareholdings were as follows:At 1.1.06 or Dateof Appointment At 31.12.06 At 21.1.07Interest in shares in the Company:Kevin Wong Kingcheung 256,400 1,239,400 1,239,400Lim Ho Kee 150,000 - -Interest in share options in the Company:Kevin Wong Kingcheung 1,283,000 500,000 500,000Interest in shares in Keppel Corporation Limited (“KCL”):Lim Chee Onn 977,083 1,357,083 1,357,083Tan Yam Pin (Deemed interest) 65,000 65,000 65,000Choo Chiau Beng 505,833 860,833 975,833Choo Chiau Beng (Deemed interest) - 100,000 100,000Teo Soon Hoe 1,074,166 1,354,166 1,354,166Interest in share options in KCL:Lim Chee Onn 1,620,000 1,550,000 1,550,000Choo Chiau Beng 1,200,000 920,000 805,000Teo Soon Hoe 1,200,000 1,150,000 1,150,000Interest in Keppel Structured Notes Pte Limited(S$ Commodity Linked Guaranteed Note Series 1 due 2011)Teo Soon Hoe - $100,000 $100,000166Directors’ reportKeppel Land LimitedReport to Shareholders 2006

At 1.1.06 or Dateof Appointment At 31.12.06 At 21.1.07Interest in units in K-REIT Asia:Kevin Wong Kingcheung - 247,880 247,880Interest in shares in Keppel Telecommunications& Transportation Limited:Lim Chee Onn 23,000 23,000 23,000Teo Soon Hoe 28,000 28,000 28,000Interest in Keppel Philippines Holdings Inc(“B” shares of 1 Peso each):Lim Chee Onn 2,000 2,000 2,000Choo Chiau Beng 2,000 2,000 2,000Teo Soon Hoe 2,000 2,000 2,000Interest in Keppel Philippines Marine Inc(Shares of 1 Peso each):Lim Chee Onn 246,457 246,457 246,457Choo Chiau Beng 283,611 283,611 283,611Teo Soon Hoe 302,830 302,830 302,830Interest in Keppel Philippines Properties Inc(Shares of 1 Peso each):Teo Soon Hoe 2,916 2,916 2,916Interest in share options in Evergro Properties Limited(Formerly known as Dragon Land Limited):Kevin Wong Kingcheung 840,000 - -Since the end of the previous financial year, no Director has received or become entitled to receive benefits undercontracts required to be disclosed by Section 201(8) of the Companies Act, Cap. 50.Neither at the end of the financial year, nor at any time during the year, did there subsist any arrangements, to which theCompany or any of its subsidiary companies is a party, whereby the Directors might acquire benefits by means ofacquisition of shares in or debentures of the Company or any other body corporate other than the Keppel Land ShareOption Scheme approved by shareholders at an Extraordinary General Meeting.In accordance with the Company’s Articles of Association, the following Directors retire at the forthcoming AnnualGeneral Meeting, and being eligible, offer themselves for re-election:Kevin Wong KingcheungKhor Poh HwaNiam Chiang MengEdward Lee Kwong FooDirectors’ reportKeppel Land LimitedReport to Shareholders 2006167

Directors’ report2. Share Options of the CompanyThe particulars of share options of the Company are as follows:(a)(b)Details of share options granted under the Keppel Land Share Option Scheme (“the Scheme”) are disclosed in Note10 to the financial statements.Options to take up 1,275,500 shares were granted to senior employees during the financial year. Altogether4,080,500 shares were issued by virtue of the exercise of options, and options to take up 196,500 shares werecancelled during the financial year. At the end of the financial year, there were 3,839,500 shares under optionas follows:Number of Share OptionsAt 1.1.06Date of or Date Cancelled/ At Expiry Subscription Value ofGrant of Grant Exercised Lapsed 31.12.06 Date Price ($) Options($)05.03.99 134,000 (102,000) - 32,000 04.03.09 1.71 0.793820.08.99 498,000 (369,000) - 129,000 19.08.09 2.48 1.202006.04.00 326,000 (199,000) - 127,000 05.04.10 1.87 0.900414.11.00 787,000 (578,000) - 209,000 13.11.10 2.47 1.203011.10.01 727,000 (617,000) (4,000) 106,000 10.10.11 1.35 0.618507.08.02 1,150,500 (914,500) (15,000) 221,000 06.08.12 1.44 0.640710.02.03 388,000 (388,000) - - 09.02.13 1.17 0.486007.08.03 380,500 (380,500) - - 06.08.13 1.48 0.662711.02.04 520,000 (325,000) - 195,000 10.02.14 1.86 0.819311.08.04 590,000 (207,500) (37,500) 345,000 10.08.14 1.84 0.807009.12.05 670,000 - (70,000) 600,000 08.12.15 2.38 1.083009.12.05 670,000 - (70,000) 600,000 08.12.15 3.07 1.43976,841,000 (4,080,500) (196,500) 2,564,00008.02.06 616,000 - - 616,000 07.02.16 3.90 1.362010.08.06 659,500 - - 659,500 09.08.16 4.06 1.38948,116,500 (4,080,500) (196,500) 3,839,500The value of each option granted at the date of grant is estimated using the Black-Scholes model with a 5-yearmaturity.168 Directors’ reportKeppel Land LimitedReport to Shareholders 2006

(c)The information on Directors of the Company participating in the Scheme is as follows:Aggregate Options Aggregate OptionsGranted since Excercised sinceCommencement Commencement of Aggregate OptionsOptions Granted of the Scheme to the Scheme to Outstanding asName during the the End of the the End of the at the End of theof Director Financial Year Financial Year Financial Year Financial YearKevin Wong Kingcheung 200,000 2,202,360 1,309,400 500,000(d)No employee has received 5 per cent or more of the total number of options available under the Scheme.3. Share Options of Evergro Properties Limited (Formerly Known as Dragon Land Limited)At the end of the financial year, there were no unissued shares (2005 : 2,935,000 shares) of Evergro PropertiesLimited (“Evergro”) under its Employees’ Share Option Scheme. Mr Kevin Wong Kingcheung, being a director ofthe company, was granted an option, and the amount outstanding as at 31 December 2005 was for 840,000 shares.The option for these 840,000 shares had been exercised in full during the year and the benefit arising therefromwas transferred to the Company in accordance with the Company’s remuneration policy. Details and terms of theoptions are disclosed in the annual report of Evergro.4. Audit CommitteeThe Audit Committee comprises three independent Directors. Members of the Committee are:Thai Chee Ken, Chairman (Resigned on 16 March 2006)Tsui Kai Chong (Appointed as Chairman on 26 April 2006)Lee Ai MingHeng Chiang Meng (Appointed on 26 April 2006)The Audit Committee carried out its functions in accordance with the Companies Act, Cap. 50 which included thefollowing:- Reviewed the audit plans and reports of the Company’s external auditors and internal auditors, and considered theeffectiveness of actions/policies taken by management on their recommendations and observations;- Reviewed the assistance given by the Company’s officers to the auditors;- Carried out review of quarterly financial reports and year-end financial statements;- Examined the effectiveness of financial, operating and compliance controls;- Reviewed the independence and objectivity of the external auditors;- Reviewed the nature and extent of non-audit services performed by auditors;- Met with external auditors and internal auditors, without the presence of management;- Ensured that the internal audit function is adequately resourced and has appropriate standing within the Company;- Reviewed interested person transactions;- Reviewed the effectiveness of the Group’s risk management policies, processes and strategies; and- Investigated any matters within the Audit Committee’s term of reference.The Audit Committee has recommended to the Board of Directors the re-appointment of Ernst & Young, Certified PublicAccountants as external auditors of the Company at the forthcoming Annual General Meeting.Directors’reportKeppel Land LimitedReport to Shareholders 2006169

Directors’ report5. AuditorsThe auditors, Ernst & Young, Certified Public Accountants, have expressed their willingness to accept re-appointment asauditors.On Behalf of the BoardLIM CHEE ONNChairmanKEVIN WONG KINGCHEUNGManaging DirectorSingapore, 9 March 2007170 Directors’ reportKeppel Land LimitedReport to Shareholders 2006

Statement by directorsFor the financial year ended 31 December 2006We, LIM CHEE ONN and KEVIN WONG KINGCHEUNG, being two of the Directors of Keppel Land Limited, do hereby state that,in the opinion of the Directors:(a)(b)the accompanying balance sheets, consolidated profit and loss account, statements of changes in equity, andconsolidated cash flow statement together with the notes thereto are drawn up so as to give a true and fair view of thestate of affairs of the Group and of the Company as at 31 December 2006 and the results of the business, changes inequity, and cash flows of the Group and the changes in equity of the Company for the year then ended on that date; andat the date of this statement, there are reasonable grounds to believe that the Company will be able to pay its debts asand when they fall due.On behalf of the BoardLIM CHEE ONNChairmanKEVIN WONG KINGCHEUNGManaging DirectorSingapore, 9 March 2007Statement by directorsKeppel Land LimitedReport to Shareholders 2006171

Auditors’ report to the members ofKeppel Land LimitedFor the financial year ended 31 December 2006We have audited the accompanying financial statements of Keppel Land Limited (the Company) and its subsidiaries (collectively ,the Group) set out on Pages 173 to 224 which comprise the balance sheets of the Group and the Company as at 31 December2006, the statements of changes in equity of the Group and the Company, the profit and loss account and cash flow statementof the Group for the year then ended, and a summary of significant accounting policies and other explanatory notes.Directors’ Responsibility for the Financial StatementsThe Company’s Directors are responsible for the preparation and fair presentation of these financial statements in accordancewith the provision of the Singapore Companies Act, Cap. 50 (“the Act”) and Singapore Financial Reporting Standards. Thisresponsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentationof financial statements that are free from material misstatement, whether due to fraud or error; selecting and applyingappropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.Auditors’ ResponsibilityOur responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordancewith Singapore Standards on Auditing. Those standards require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement ofthe financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal controlrelevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that areappropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internalcontrol. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accountingestimates made by Directors, as well as evaluating the overall presentation of the financial statements.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.In our opinion,(i) the consolidated financial statements of the Group and the balance sheet and statement of changes in equity of theCompany are properly drawn up in accordance with the provisions of the Act and Singapore Financial ReportingStandards so as to give a true and fair view of the state of affairs of the Group and of the Company as at 31 December2006 and the results, changes in equity and cash flows of the Group and the changes in equity of the Company for theyear ended on that date; and(ii)the accounting and other records required by the Act to be kept by the Company and by those subsidiaries incorporatedin Singapore of which we are the auditors have been properly kept in accordance with the provisions of the Act.ERNST & YOUNGCertified Public AccountantsSingapore, 9 March 2007172Auditors’ reportKeppel Land LimitedReport to Shareholders 2006

Consolidated profit and loss accountFor the financial year ended 31 December 20062006 2005Note $’000 $’000Sales 2 948,018 586,391Cost of Sales (711,401) (405,509)Gross Profit 236,617 180,882Marketing expenses (4,113) (3,561)Administrative and other expenses (67,177) (30,719)Other income 38,755 -Operating Profit 3 204,082 146,602Interest and investment income 2 & 4 56,713 34,016Interest expense 5 (70,418) (25,397)Share of results of associated companies 17 27,606 28,228Gains from enbloc property sales, less impairment loss 6 45,425 1,188Profit before Taxation 263,408 184,637Taxation 7 & 17 (46,152) (35,562)Profit after Taxation 217,256 149,075Attributable to:Shareholders of the Company 200,310 155,709Minority interests 16,946 (6,634)Profit after Taxation 217,256 149,075Basic Earnings Per Share (Cents) 9 27.9 21.8Diluted Earnings Per Share (Cents) 9 27.9 21.8The notes shown on Pages 180 to 224 form an integral part of the financial statements.Consolidated profit and loss accountKeppel Land LimitedReport to Shareholders 2006173

Balance sheetsAs at 31 December 2006GroupCompany2006 2005 2006 2005Note $’000 $’000 $’000 $’000(As restated)SHARE CAPITAL 10 1,183,413 357,576 1,183,413 357,576RESERVES 11 407,521 1,321,356 402,184 1,140,211SHARE CAPITAL AND RESERVES 1,590,934 1,678,932 1,585,597 1,497,787MINORITY INTERESTS 310,018 280,577 - -TOTAL EQUITY 1,900,952 1,959,509 1,585,597 1,497,787LONG-TERM BORROWINGS 12 2,111,107 2,625,273 1,482,108 1,710,6124,012,059 4,584,782 3,067,705 3,208,399Represented by:FIXED ASSETS 13 205,137 253,187 62 68INVESTMENT PROPERTIES 14 1,199,722 1,655,370 - -PROPERTIES HELD FOR DEVELOPMENT 15 183,327 213,801 - -INVESTMENTSSubsidiary companies 16 - - 1,186,013 1,150,635Associated companies 17 624,134 388,189 135,320 155,193Other investments 18 35,241 26,953 3,313 2,819659,375 415,142 1,324,646 1,308,647CURRENT ASSETSProperties held for sale 19 1,352,915 1,379,511 - -Stocks 20 3,437 3,644 - -Debtors 21 159,358 140,180 1,568 2,316Amounts owing by holding and related parties 22 917,282 892,373 2,100,713 2,142,596Fixed deposits, bank balances and cash 23 580,951 597,677 2,114 1,2953,013,943 3,013,385 2,104,395 2,146,207Less:CURRENT LIABILITIESCreditors 24 623,403 602,492 14,422 13,782Net tax provision 7 86,378 58,739 1,458 882Short-term borrowings 25 439,619 206,923 267,290 151,160Amounts owing to holding and related parties 22 65,607 50,604 66,557 76,1031,215,007 918,758 349,727 241,927NET CURRENT ASSETS 1,798,936 2,094,627 1,754,668 1,904,280DEFERRED TAXATION 7 (34,438) (47,345) (11,671) (4,596)4,012,059 4,584,782 3,067,705 3,208,399The notes shown on Pages 180 to 224 form an integral part of the financial statements.174Balance sheetsKeppel Land LimitedReport to Shareholders 2006

Consolidated statement of changes in equityFor the financial year ended 31 December 2006PropertyRevaluation Foreignand Other CurrencyShare Share Capital Translation Revenue Minority TotalCapital Premium Reserves Account Reserves Total Interests Equity$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000Balance at 1 January 2006 357,576 818,794 311,284 (17,697) 208,975 1,678,932 280,577 1,959,509Net surplus/(deficit) on revaluation ofinvestment properties - - 2,559 - - 2,559 (27,186) (24,627)Net fair value change onavailable-for-sale financial assets - - 1,466 - - 1,466 - 1,466Exchange difference adjustmentarising on consolidation - - - (19,653) - (19,653) (13,936) (33,589)Net gain/(losses) not recognisedin profit and loss account - - 4,025 (19,653) - (15,628) (41,122) (56,750)Net profit for the year - - - - 200,310 200,310 16,946 217,256Total recognised gains/(losses) for the year - - 4,025 (19,653) 200,310 184,682 (24,176) 160,506Issue of shares under the Keppel LandShare Option Scheme 6,076 967 - - - 7,043 - 7,043Transfer of share premium reserve toshare capital account 819,761 (819,761) - - - - - -(see Notes 10 and 11)Net revaluation surplus realised andtransferred to profit and loss account - - (13,040) - - (13,040) - (13,040)Net exchange gain realised and transferredto profit and loss account - - - (1,286) - (1,286) - (1,286)Cost of share-based payments - - 1,542 - - 1,542 - 1,542Dividend paid (see Note 8) - - - - (35,962) (35,962) (6,550) (42,512)Distribution in specie (see Note 8) - - - - (262,894) (262,894) - (262,894)Revaluation surplus of investment propertiessold to K-REIT Asia transferred torevenue reserves - - (25,564) - 25,564 - - -Capital contribution - - - - - - 11,052 11,052Issue of convertible bond -equity component - - 31,917 - - 31,917 - 31,917Set-off against advances from a minorityshareholder - - - - - - 65,498 65,498Acquisition of interest from minorityshareholders - - - - - - (14,755) (14,755)Minority interest of a non-wholly ownedsubsidiary disposed - - - - - - (1,628) (1,628)Balance at 31 December 2006 1,183,413 - 310,164 (38,636) 135,993 1,590,934 310,018 1,900,952The notes shown on Pages 180 to 224 form an integral part of the financial statements.Consolidated statement of changes in equityKeppel Land LimitedReport to Shareholders 2006175

Consolidated statement of changes in equityFor the financial year ended 31 December 2005PropertyRevaluation Foreignand Other CurrencyShare Share Capital Translation Revenue Minority TotalCapital Premium Reserves Account Reserves Total Interests Equity$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000Balance at 1 January 2005As previously reported 355,975 814,751 361,444 (28,650) 103,286 1,606,806 225,627 1,832,433Effect of adopting FRS 102 - - 781 - (781) - - -As restated 355,975 814,751 362,225 (28,650) 102,505 1,606,806 225,627 1,832,433Effect of adopting FRS 39 - - 4,694 - (20,684) (15,990) - (15,990)355,975 814,751 366,919 (28,650) 81,821 1,590,816 225,627 1,816,443Net surplus on revaluation of investmentproperties and other assets - - 13,490 - - 13,490 5,016 18,506Net fair value change on available-for-salefinancial assets - - (1,154) - - (1,154) 7 (1,147)Transfer from revenue reserves to capitalredemption reserves - - 12 - (12) - - -Exchange difference adjustment arisingon consolidation - - - 10,953 - 10,953 1,175 12,128Net gains/(loss) not recognised in profitand loss account - - 12,348 10,953 (12) 23,289 6,198 29,487Net profit/(loss) for the year - - - - 155,709 155,709 (6,634) 149,075Total recognised gains/(loss) for the year - - 12,348 10,953 155,697 178,998 (436) 178,562Issue of shares under the Keppel LandShare Option Scheme 1,601 4,043 - - - 5,644 - 5,644Net revaluation surplus realised andtransferred to profit and loss account - - (68,616) - - (68,616) - (68,616)Cost of share-based payments - - 633 - - 633 - 633Dividend paid (see Note 8) - - - - (28,543) (28,543) (12,793) (41,336)Capital contribution - - - - - - 29,685 29,685Acquisition of interest from minority shareholders - - - - - - (2,598) (2,598)Minority interests of a non-wholly ownedsubsidiary acquired - - - - - - 41,092 41,092Balance at 31 December 2005 357,576 818,794 311,284 (17,697) 208,975 1,678,932 280,577 1,959,509The notes shown on Pages 180 to 224 form an integral part of the financial statements.176 Consolidated statement of changes in equityKeppel Land LimitedReport to Shareholders 2006

Company statement of changes in equityFor the financial year ended 31 December 2006PropertyRevaluation Foreignand Other CurrencyShare Share Capital Translation RevenueCapital Premium Reserves Account Reserve Total$’000 $’000 $’000 $’000 $’000 $’000Balance at 1 January 2006As previously reported 357,576 818,794 1,414 - 501,148 1,678,932Adjustment to reinstate investmentsin subsidiaries and associatedcompanies to cost - - - - (181,145) (181,145)As restated 357,576 818,794 1,414 - 320,003 1,497,787Net fair value change foravailable-for-sale financial assets - - 494 - - 494Net gain not recognised inprofit and loss account - - 494 - - 494Net profit for the year - - - - 345,670 345,670Total recognised gains for the year - - 494 - 345,670 346,164Issue of shares under theKeppel Land Share Option Scheme 6,076 967 - - - 7,043Transfer of share premium reserve toshare capital account(see Notes 10 and 11) 819,761 (819,761) - - - -Cost of share-based payments - - 1,542 - - 1,542Dividend paid (see Note 8) - - - - (35,962) (35,962)Distribution in specie (see Note 8) - - - - (262,894) (262,894)Issue of convertible bond -equity component - - 31,917 - - 31,917Balance at 31 December 2006 1,183,413 - 35,367 - 366,817 1,585,597Balance at 1 January 2005As previously stated 355,975 814,751 - (34,983) 471,063 1,606,806Effect of adopting FRS 21 - - - 34,983 (34,983) -Adjustment to reinstate investmentsin subsidiaries and associatedcompanies to cost - - - - (153,809) (153,809)Effect of adopting FRS 102 - - 781 - - 781As restated 355,975 814,751 781 - 282,271 1,453,778Net profit for the year - - - - 66,275 66,275Issue of shares under theKeppel Land Share Option Scheme 1,601 4,043 - - - 5,644Cost of share-based payments - - 633 - - 633Dividend paid (see Note 8) - - - - (28,543) (28,543)Balance at 31 December 2005 357,576 818,794 1,414 - 320,003 1,497,787The notes shown on Pages 180 to 224 form an integral part of the financial statements.Company statement of changes in equityKeppel Land LimitedReport to Shareholders 2006177

Consolidated cashflow statementFor the financial year ended 31 December 20062006 2005$’000 $’000Cash Flow from Operating Activities:Operating profit before interest and taxation 204,082 146,602Adjustments for:Depreciation of fixed assets 11,226 17,320Write-back of provision for properties held for sale (47,475) (17,161)Allowance/(write-back of allowance) for doubtful debts and bad debts 7,281 (3,099)Cost of share-based payments 1,542 633Operating Income before Reinvestment in Working Capital 176,656 144,295(Increase)/decrease in debtors (37,610) 12,346Increase in work-in-progress and stocks (94,164) (82,565)Development expenditure (495,125) (656,367)Proceeds from progress billings 567,099 552,875Increase in creditors 51,104 5,273Cash from/(Used in) Operations 167,960 (24,143)Interest received and investment income 56,713 34,016Interest paid (70,418) (25,397)Income taxes paid (16,154) (9,879)Net Cash from/(Used in) Operating Activities 138,101 (25,403)Cash Flow from Investing Activities:Purchase of fixed assets and improvement in investment properties (29,765) (4,549)Divestment of investment properties 191,871 -Repayments of loan by/(investment in) investee company 2,041 (12,646)Additional investment in subsidiary companies (28,602) (139,517)Divestment of/(additional investment in) associated companies 67,292 (18,780)Proceeds from sale of fixed assets 138 903Net Cash from/(Used in) Investing Activities 202,975 (174,589)Cash Flow from Financing Activities:Proceeds from issuance of shares by Company 7,043 5,644Loan repayments less proceeds from convertible bond issue (345,869) 645,550Advances from minority shareholders of certain subsidiaries 5,983 47,822Loans from/(to) related and associated companies, less dividends received 25,347 (295,199)Dividends paid to shareholders (35,962) (28,543)Contributions from, less dividends to, minority shareholders ofsubsidiary companies 4,502 15,149Net Cash (Used in)/from Financing Activities (338,956) 390,423Net Increase in Cash and Cash Equivalents 2,120 190,431Cash and Cash Equivalents at Beginning of Year 597,677 392,924Exchange adjustments (18,846) 14,322Cash and Cash Equivalents at End of Year 580,951 597,677178Consolidated cashflow statementKeppel Land LimitedReport to Shareholders 2006

2006 2005$’000 $’000Represented By:Cash and Cash EquivalentsFixed deposits, bank balances and cash 548,186 453,500Deposits with related companies 32,765 144,177580,951 597,677The acquisitions of shares in subsidiary companies have been shown as a separate item, and their effect on the individual assetsand liabilities of the Group is not reflected in the above statement. During the year, the fair values of net assets of a subsidiarycompany acquired were as follows:2006 2005$’000 $’000Net assets acquired:Fixed assets and investment properties 220,000 168,774Development property - 20,561Investments - 15,269Properties held for sale - 52,175Net creditors (34,703) (14,121)Net bank balances 4,906 23,994Short and long-term loans (214,369) (9,648)Taxation - (29,161)Minority interests 8,548 (41,092)Amount previously accounted for as anassociated company 8,546 (23,240)Settlement of shareholder’s advance 24,938 -17,866 163,511Less: New bank balances acquired (4,906) (23,994)Net cash outflow on acquisition of subsidiaries 12,960 139,517The notes shown on Pages 180 to 224 form an integral part of the financial statements.Consolidated cashflow statementKeppel Land LimitedReport to Shareholders 2006179

Summary of significant accounting policiesFor the financial year ended 31 December 2006Corporate InformationThe Company is a limited liability company incorporated in Singapore, and is listed on the Singapore Exchange Securities TradingLimited. The address of its registered office is 230 Victoria Street #15-05, Bugis Junction Towers, Singapore 188024.The financial statements of Keppel Land Limited for the year ended 31 December 2006 were authorised for issue on 9 March2007 in accordance with a resolution of the Board of Directors.The immediate and ultimate holding company is Keppel Corporation Limited, incorporated in Singapore.Summary of Significant Accounting PoliciesThe following summary explains the Group’s significant accounting policies which have been consistently applied, and are thesame as those used in the previous financial year, except where otherwise indicated:(a)Basis of Preparation and Change in Accounting Policy(i) Basis of PreparationThe financial statements are prepared in accordance with Singapore Financial Reporting Standards (”FRS”). Thefinancial statements have been prepared under the historical cost convention, except as disclosed in theaccounting policies below.In the current year, the Group and the Company adopted all the applicable new/revised FRS and Interpretations toFRS (”INT FRS”) that are relevant to the operations and effective for annual periods beginning on or after 1 January2006. The adoption of the new/revised FRS and INT FRS has no material effect on the accounts of the Group andthe Company.The financial statements are expressed in Singapore dollars and all values are rounded to the nearest thousand($’000), except when otherwise indicated.(ii)Change in Accounting PolicyAs of 1 January 2006, investments in subsidiaries and associated companies in the books of the Company werestated at cost less impairment loss, as fair values under the previous basis cannot be reliably determined in the lightof volatile property prices. In past years, they were stated at the Company’s attributable share of the fair values oftheir combined net assets. The change in accounting policy has resulted in a decrease of $181,145,000 in therevenue reserve of the Company as at 1 January 2006. However, this change has no impact on the results andrevenue reserve of the Group.(b)Critical Accounting Estimates and JudgementsAssumptions concerning the future and judgements are made in the preparation of the financial statements. They affectthe application of the Group’s accounting policies, reported amounts of assets, liabilities, income and expenses, anddisclosure of contingent assets and liabilities. They are assessed on an on-going basis and are based on experience andrelevant factors, including expectations of future events that are believed to be reasonable under the circumstances.(i)Key Sources of Estimation UncertaintyThe key assumptions concerning the future and other key sources of estimation uncertainty at the balancesheet date that have a significant risk of causing a material adjustment to the carrying amounts of assets andliabilities within the next financial year are as follows:Impairment in Value of Fixed AssetsDetermining whether fixed asset value is impaired requires an estimation of the value in use of the cash-generatingunits. This requires the Group to estimate the future cashflows expected from the cash-generating units and anappropriate discount rate in order to calculate the present value of the future cashflows. The carrying amount offixed assets at the balance sheet date is disclosed in Note 13.180Summary of significant accounting policiesKeppel Land LimitedReport to Shareholders 2006

Revenue RecognitionThe Group recognises revenue from partly completed projects based on the stage of completion method.The stage of completion is measured in accordance with the accounting policy stated in (j) below. Significantassumptions are required in determining the stage of completion, the total estimated development costs and theestimated total revenue. In making the assumptions, the Group evaluates them by relying on past experience andthe work of professionals and specialists. Revenue from partly completed projects is disclosed in Note 2.Income TaxesThe Group has exposure to income taxes in numerous jurisdictions. Significant assumption is required indetermining the provision for income taxes. There are certain transactions and computations for which the ultimatetax determination is uncertain during the ordinary course of business. The Group recognises liabilities for expectedtax issues based on estimates of whether additional taxes will be due. Where the final tax outcome of thesematters is different from the amounts that were initially recognised, such differences will impact the income tax anddeferred tax provisions in the year in which such determination is made. The carrying amounts of taxation anddeferred taxation are disclosed in the balance sheet.(ii)Critical Judgement in Applying the Group’s Accounting PoliciesIn the process of applying the Group’s accounting policies, management is of the opinion that the instances ofapplication of judgement are not expected to have a significant effect on the amounts recognised in the financialstatements, apart from those involving estimations.(c)Subsidiaries and Principles of Consolidation(i) SubsidiariesA subsidiary is an entity over which the Group has the power to govern the financial and operating policies so as toobtain benefits from its activities. The existence and effect of potential voting rights that are currently exercisable orconvertible are considered when assessing whether the Group controls another entity.Investments in subsidiary companies are stated in the accounts of the Company at cost less impairment loss.(ii)Principles of ConsolidationThe consolidated financial statements comprise the financial statements of the Company and its subsidiaries as atthe balance sheet date. The financial statements of the subsidiaries are prepared for the same reporting date as theparent company. Consistent accounting policies are applied for like transactions and events in similarcircumstances.All intra-group balances, transactions, income and expenses and profits and losses resulting from intra-grouptransactions that are recognised in assets are eliminated in full.Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Group obtains control,and continue to be consolidated until the date that such control ceases.Acquisitions of subsidiaries are accounted for using the purchase method. The cost of an acquisition is measuredas the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date ofexchange, plus costs directly attributable to the acquisition. Identifiable assets acquired and liabilities andcontingent liabilities assumed in a business combination are measured initially at their fair values at the acquisitiondate, irrespective of the extent of any minority interest.Summary of significant accounting policiesKeppel Land LimitedReport to Shareholders 2006181

Summary of significant accounting policies(ii)Principles of Consolidation (cont’d)Any excess of the cost of the business combination over the Group’s interest in the net fair value of theidentifiableassets, liabilities and contingent liabilities represents goodwill. The goodwill is accounted for in accordance with theaccounting policy for goodwill stated in (d) below.Any excess of the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilitiesover the cost of business combination is recognised in the profit and loss account on the date of acquisition.Minority interests represent the portion of profit or loss and net assets in subsidiaries not held by the Group. Theyare presented in the consolidated balance sheet within equity, separately from the parent shareholder‘s equity, andare separately disclosed in the consolidated profit and loss account.(d)(e)GoodwillGoodwill acquired in a business combination is initially measured at cost being the excess of the cost of the businesscombination over the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities.Following initial recognition, goodwill is measured at cost less any accumulated impairment loss. Goodwill is reviewedfor impairment, annually or more frequently if events or changes in circumstances indicate that the carrying value maybe impaired.Associated CompaniesAssociated companies are those in which the Group has a long-term substantial equity interest and in whose commercialand financial policy decisions the Group actively participates. Investments in associated companies are accounted forin the consolidated financial statements using the equity method of accounting whereby the Group’s share of profits lesslosses of associated companies, as shown in their audited accounts for the year ended 31 December (except for certainassociated companies), is included in the Group’s results and the Group’s share of net assets of the associated companyis included in the balance sheet.The results of certain associated companies which do not prepare audited accounts at 31 December are based on theirlatest audited accounts and unaudited management accounts for the ensuing months up to 31 December.Investments in associated companies are stated in the Company’s accounts at cost less impairment loss.(f)Other InvestmentsOther investments represent non-derivative financial assets that are designated as available-for-sale. After initialrecognition, available-for-sale financial assets are measured at fair value with gains or losses being recognised in the fairvalue adjustment reserve until the investment is derecognised or until the investment is determined to be impaired atwhich time the cumulative gain or loss previously reported in equity is included in the profit and loss account.The fair value of investments that are actively traded in organised financial markets is determined by reference to therelevant stock exchanges’ quoted market bid prices at the close of business on the balance sheet date. For investmentswhere there is no active market, the fair value is determined using valuation techniques. Such techniques include usingrecent arm’s length transactions, reference to the underlying net asset value of the investee companies and discountedcash flow analysis.182 Summary of significant accounting policiesKeppel Land LimitedReport to Shareholders 2006

(g)Fixed AssetsFixed assets are stated at cost less accumulated depreciation and any impairment in value.All fixed assets are depreciated evenly over their estimated useful lives and residual values have also been taken intoaccount where appropriate. Long leasehold land are those with unexpired tenures of over 20 years. The estimated usefullives of the Group’s fixed assets have been taken as follows:BuildingsMachinery and equipmentMotor vehicles30 to 50 years3 to 7 years4 to 5 yearsProfits or losses on disposal of all fixed assets are included in the profit and loss account.(h)Investment PropertiesInvestment properties are accounted for as long-term investments and stated at valuation made each year. Revaluationsurpluses arising on annual valuations of the Group’s investment properties are credited directly to capital reserves.Revaluation deficits are taken to the profit and loss account in the absence of or to the extent that they exceed anysurpluses held in reserves relating to previous revaluations.Profits or losses on disposal of all investment properties are included in the profit and loss account. Any surpluses held incapital reserves in respect of previous revaluations of investment properties disposed of are regarded as having becomerealised and are transferred to the profit and loss account.(i)Properties Held for DevelopmentProperties held for development are stated at cost less impairment, which includes cost of land and construction, relatedoverhead expenditure and financing charges and other net costs incurred during the period of development. They areconsidered completed and are transferred to investment properties or fixed assets when they are ready for their intendeduse.Each property under development is accounted for as a separate project. Where a project comprises more than onecomponent or phase with a separate temporary occupation permit, each component or phase is treated as a separateproject, and interest and other net costs are apportioned accordingly.(j)Properties Held for SaleDevelopment properties held for sale are stated at the lower of cost and net realisable value. Upon receipt of temporaryoccupation permits, they are transferred to completed properties held for sale.Profit recognised on partly completed projects which are held for sale is based on the percentage of completion methodas follows :(i)(ii)For Singapore trading properties under development, the profit recognition upon the signing of sales contracts andpayment of the first instalment is 20% of the total estimated profit attributable to the actual contracts signed.Subsequent recognition of profit is based on the stage of physical completion;For overseas trading properties under development, the profit recognition upon the signing of sales contracts is thedirect proportion of total expected project profit attributable to the actual sales contracts signed, but only to theextent that it relates to the stage of physical completion.Summary of significant accounting policiesKeppel Land LimitedReport to Shareholders 2006183

Summary of significant accounting policies(j)Properties Held for Sale (cont’d)Progress claims made against partly completed projects are offset against their development costs.When losses are expected, full provision is made in the accounts after adequate allowance has been made for estimatedcosts to completion. Any expenditure incurred on abortive projects is written off in the profit and loss account.Profit on partly completed projects which are held for sale less any provision to reduce cost to estimated realisable valueas well as the profit or loss on sale of completed properties are included in the operating results.Completed properties held for sale are stated at the lower of cost and net realisable value. Cost includes cost of landand construction related overhead expenditure, and financing charges and other net costs incurred during the periodof development.(k)(l)(m)StocksStocks are valued at the lower of weighted average cost and net realisable value after adequate provision is made fordamaged, obsolete or slow-moving stocks on an item by item basis.Cash and Cash EquivalentsCash and cash equivalents comprise cash on hand, demand deposits, and short-term, highly liquid investments that arereadily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Thesealso include bank overdrafts that form an integral part of the Group’s cash management.Financial AssetsFinancial assets are classified as either financial assets at fair value through profit or loss, loans and receivables, held tomaturity investments or available-for-sale financial assets, as appropriate. Financial assets are recognised in the balancesheet when, and only when, the Group becomes a party to the contractual provisions of the financial instrument.When financial assets are recognised initially, they are measured at fair value, plus, in the case of financial assets not atfair value through the profit and loss account, directly attributable transaction costs. The Group determines theclassification of its financial assets after initial recognition and, where allowed and appropriate, re-evaluates thisdesignation at each financial year-end.(i)(ii)Financial Assets at Fair Value through Profit and Loss AccountDerivative financial instruments whose fair value is positive are classified as financial assets at fair value throughprofit and loss account. The accounting policy for derivative financial instruments is included in (o).Loans and ReceivablesNon-derivative financial assets with fixed or determinable payments that are not quoted in an active market areclassified as loans or receivables. Such assets are carried at amortised cost using the effective interest method, lessimpairment loss. Gains and losses are recognised in the profit and loss account when the loans or receivables arederecognised or impaired, as well as through the amortisation process.The Group classifies the following financial assets as loans or receivables as appropriate:- cash and short term deposits- trade and other receivables, including amounts due from subsidiaries, associated companies, related companiesand loans to related companies.184Summary of significant accounting policiesKeppel Land LimitedReport to Shareholders 2006

(iii)Available-For-Sale Financial AssetsThe Group classifies its investment securities as available-for-sale financial assets.Available-for-sale financial assets are those non-derivative financial assets that are designated as available-for-sale orare not classified in any of the other categories. After initial recognition, available-for-sale financial assets aremeasured at fair value with gains or losses being recognised in the fair value adjustment reserve until theinvestment is derecognised or until the investment is determined to be impaired at which time the cumulative gainor loss previously reported in equity is included in the profit and loss account.The fair value of investments that are actively traded in organised financial markets is determined by reference tothe relevant exchanges’ quoted market bid prices at the close of business on the balance sheet date. Forinvestments where there is no active market, fair value is determined using valuation techniques. Investments inequity instruments that do not have a quoted market price in an active market and whose fair value cannot bereliably measured are measured at cost less impairment loss.(n)(o)Financial LiabilitiesFinancial liabilities include trade, intercompany and other payables and borrowings. Trade, intercompany and otherpayables are stated at their fair value. Interest-bearing borrowings are initially measured at fair value and are subsequentlymeasured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption value istaken to the profit and loss account over the period of the borrowings using the effective interest method.Derivative Financial InstrumentsDerivative financial instruments are classified as financial assets or liabilities at fair value through the profit and lossaccount and are initially recognised at fair value on the date on which a derivative contract is entered into and aresubsequently remeasured at fair value at each balance sheet date.Any gains or losses arising from changes in fair value on derivative financial instruments are taken to the profit and lossaccount for the year.(p)Impairment of Non Financial AssetsAt each balance sheet date, the Group reviews the carrying amounts of its non financial assets to determine whetherthere is any indication that the assets have suffered an impairment loss.If any such indication exists, the recoverable amount (i.e. the higher of fair value less cost to sell and value in use) of theasset is estimated in order to determine the extent of the impairment loss. Whenever the recoverable amount of anasset is estimated to be less than its carrying amount, the impairment loss is recognised in the profit and loss account.Reversal of impairment loss recognised previously is recorded when there is an indication that the impairment lossrecognised for the asset no longer exists or has decreased. The reversal is recorded in the profit and loss account.However, the increased carrying amount of an asset due to any reversal of impairment loss is recognised to the extentthat it does not exceed the cost, net of depreciation of that asset at the date of such reversal.Summary of significant accounting policiesKeppel Land LimitedReport to Shareholders 2006185

Summary of significant accounting policies(q)Impairment of Financial AssetsThe Group assesses at each balance sheet date whether there is any objective evidence that a financial asset or a groupof financial assets is impaired.(i)Assets Carried at Amortised CostIf there is objective evidence that an impairment loss on financial assets carried at amortised cost has beenincurred, the amount of the loss is measured as the difference between the asset’s carrying amount and thepresent value of estimated future cash flows discounted at the financial asset’s original effective interest rate.The carrying amount of the asset is reduced through the use of an allowance account. The amount of the loss isrecognised in the profit and loss account.If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectivelyto an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed.Any subsequent reversal of an impairment loss is recognised in the profit and loss account, to the extent that thecarrying value of the asset does not exceed its amortised cost at the reversal date.(ii)(iii)Assets Carried at CostIf there is objective evidence that an impairment loss on a financial asset carried at cost has been incurred, theamount of the loss is measured as the difference between the asset’s carrying amount and the present value ofestimated future cash flows discounted at the current market rate of return for a similar financial asset. Suchimpairment losses are not reversed in subsequent periods.Available-For-Sale Financial AssetsIf an available-for-sale financial asset is impaired, an amount comprising the difference between its cost (net of anyprincipal payment and amortisation) and its current fair value, less any impairment loss previously recognised in theprofit and loss account, is transferred from equity to the profit and loss account. Reversals of impairment loss inrespect of equity instruments are not recognised in the profit and loss account. Reversals of impairment losses ondebt instruments are reversed through the profit and loss account, if the increase in fair value of the instrument canbe objectively related to an event occurring after the impairment loss was recognised in the profit and loss account.(r)Derecognition of Financial AssetsA financial asset is derecognised where the contractual rights to receive cash flows from the asset have expired.On derecognition of a financial asset, the difference between the carrying amount and the sum of the considerationreceived and any cumulative gain or loss that has been recognised directly in equity is recognised in the profit andloss account.(s)ProvisionsProvisions are recognised when the Group has a present legal or constructive obligation as a result of past events, andwhen it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate of theamount can be made.186Summary of significant accounting policiesKeppel Land LimitedReport to Shareholders 2006

(t)Revenue RecognitionRental and related income from operating leases on investment properties are recognised on a straight-line basis over thelease term.Revenue recognition from trading properties is set out in paragraph (j) above.Revenue from the rendering of services is recognised when the service is rendered.Dividend income is recognised in the accounts when it is declared to be payable by the investee companies.Interest income is recognised as interest accrues (using the effective interest method) unless collectibility is in doubt.(u)Employee Benefits(i) Defined Contribution PlanThe Group makes contributions to pension schemes as defined by the laws of the countries in which it hasoperations. In particular, the Singapore companies in the Group make contributions to the Central Provident Fund inSingapore, a defined contribution pension scheme. Contributions to pension schemes are recognised as anexpense in the period in which the related service is performed.(ii)(iii)Employee Leave EntitlementEmployee entitlements to annual leave are recognised when they accrue to employees. A provision is made for theestimated liability for leave as a result of services rendered by employees up to the balance sheet date.Share Option SchemeThe Company has in place Keppel Land Share Option Scheme for the granting of options to eligible employees ofthe Group to subscribe for shares in the Company. Details of the scheme are disclosed in Note 10. The fair valueof the employee services rendered in exchange for the grant of the options is recognised as an expense in the profitand loss account with a corresponding increase in the share option reserve over the vesting period. The totalamount to be recognised over the vesting period is determined by reference to the fair value of the options grantedon the date of the grant.(v)(w)Current TaxCurrent tax assets and liabilities for the current and prior periods are measured at the amount expected to be recoveredfrom or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that areenacted or substantively enacted by the balance sheet date.Deferred TaxationDeferred taxation is provided in full, using the liability method, on all temporary differences between the tax bases ofassets and liabilities at the balance sheet date and their carrying amounts.The principal temporary differences arise from depreciation of fixed assets, offshore income and certain provisions orcharges in the accounts for which the tax relief is not immediately available.Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available againstwhich the temporary differences can be utilised.Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset isrealised or the liability is settled, based on tax rates enacted or substantively enacted at the balance sheet date.Summary of significant accounting policiesKeppel Land LimitedReport to Shareholders 2006187

Summary of significant accounting policies(x)(y)Borrowing CostsBorrowing costs incurred to finance the development of properties are capitalised during the period of time that isrequired to complete and prepare the assets for their intended use. Capitalisation of borrowing costs commences whenthe activities to prepare the asset for its intended use or sale are in progress and the expenditures and borrowing costsare being incurred. Borrowing costs are capitalised until the assets are ready for their intended use. Other borrowingcosts are taken to the profit and loss account over the period of borrowing using the effective interest rate method.Foreign CurrenciesTransactions in foreign currencies are measured in the functional currencies of the respective countries which the Groupoperates in and are recorded at exchange rates approximating those ruling at the transaction dates.Foreign currency monetary assets and liabilities are measured using the exchange rates ruling at each balance sheet date.All resultant exchange differences arising from the conversion are dealt with through the profit and loss account.For inclusion in Group accounts, all assets and liabilities of foreign subsidiaries and associated companies are translatedinto Singapore dollars, the functional currency of the Company, at the exchange rates ruling at each balance sheet date.Exchange differences due to such currency translations as well as the exchange differences in respect of offsettingforeign currency loans or other hedging instruments are dealt with in reserves. The trading results of foreign subsidiariesand associated companies are translated into Singapore dollars at the average exchange rates for the year.188Summary of significant accounting policiesKeppel Land LimitedReport to Shareholders 2006

Notes to the financial statementsFor the financial year ended 31 December 20061. Principal ActivitiesThe principal activity of the Company is that of a holding, management and investment company.The principal activities of the Company and its subsidiary companies (“the Group”) consist of property investment anddevelopment, and property-related services.2. RevenueGroup2006 2005$’000 $’000Sale of trading properties 809,751 465,057Rental income from investment properties 67,274 69,368Revenue from hospitality, asset management andproperty services 70,993 51,966Sales 948,018 586,391Dividend income (gross) 2,020 589Interest income 54,693 33,427Interest and investment income 56,713 34,016Total revenue 1,004,731 620,407Sales represent the invoiced value of goods and services supplied. Inter-company transactions and the sales ofassociated companies have been excluded from Group sales.Notes to the financial statementsKeppel Land LimitedReport to Shareholders 2006189

Notes to the financial statements3. Operating ProfitGroup2006 2005$’000 $’000The following amounts have been charged / (credited) in arriving at operating profit:Depreciation of fixed assets (Note 13):Freehold buildings 26 5Leasehold properties 7,578 12,418Machinery, equipment and vehicles 3,622 4,89711,226 17,320Auditors’ remuneration:Auditors of the Company 733 561Other auditors 696 486Directors’ fees 637 610Key managers’ emoluments :Short-term benefits (including annual base salaries and annualperformance incentives) 6,977 4,390Employer’s contribution to defined contribution plans, includingthe Central Provident Fund 59 55Cost of share-based payments 825 3777,861 4,822Staff costs (see note below):Short-term benefits (including annual base salaries and annualperformance incentives) 48,936 39,404Employer’s contribution to defined contribution plans, includingthe Central Provident Fund 2,942 2,564Cost of share-based payments 717 25652,595 42,224Value of properties held for sale recognised as expense 686,539 355,383Foreign exchange loss/(gain) 612 (2,138)Allowance/(write-back of allowance) for doubtful debts and bad debts 7,281 (3,099)Write-back of provisions for properties held for sale (47,475) (17,161)Staff costs capitalised during the year under properties held for development and sale amounted to $6,500,000(2005: $4,711,000).190 Notes to the financial statementsKeppel Land LimitedReport to Shareholders 2006

4. Interest and Investment IncomeGroup2006 2005$’000 $’000Gross dividends from:Quoted investments - 254Unquoted investments 2,020 335Interest from deposits and short-term loans with:Banks 9,073 13,071Holding and related companies (see note below) 59,421 46,035Associated companies 34,286 13,562Other companies 4,567 3,139109,367 76,396Interest capitalised (52,654) (42,380)56,713 34,016Included in interest income from deposits and short-term loans with holding and related companies is $52,654,000(2005: $42,380,000) of interest earned from loans to certain subsidiary companies which capitalised the interest asproperty development cost. Interest on deposits with related companies is earned at rates ranging between 2.9% and4.9% (2005: 0.17% and 5.4%) per annum.5. Interest ExpenseGroup2006 2005$’000 $’000Fair value (loss)/gain on revaluation of interest rate hedging instruments (2,403) 9,464On convertible bond (6,899) -On bond due 2005 - (2,237)On fixed term loans from banks (24,425) (14,234)On other term loans and overdrafts from:Related companies (49,924) (36,538)Banks (4,823) (4,934)Other companies (5,933) (1,364)On borrowings under MTN Programme (see also Notes 12 and 25) (28,665) (17,934)(123,072) (67,777)Interest capitalised (see also Note 4) 52,654 42,380(70,418) (25,397)Interest is charged by related companies at rates ranging from 3.6% to 6.59% (2005: 1.85% to 6.23%) per annum.Notes to the financial statementsKeppel Land LimitedReport to Shareholders 2006191

Notes to the financial statements6. Gains from Enbloc Property Sales, less Impairment LossGroup2006 2005$’000 $’000Net gain on Bugis Junction transactions 57,689 37,791Profit from the sale of Company’s interest in an associated company holding a30% stake in Ocean Towers, Shanghai 27,076 -Impairment loss in respect of:Investment in associated companies with hotel interests in Indonesia andSingapore (5,041) (14,870)Group’s hotels in Myanmar (see Note 13) (32,199) (21,733)Evergro’s investment property (2,100) -45,425 1,188Add:Minority shareholder’s share of impairment loss of Evergro’s investmentproperty 601 -Group’s net share 46,026 1,1887. TaxationGroup2006 2005$’000 $’000Current tax:Singapore 6,546 5,408Foreign 49,423 37,488Deferred tax:Singapore (12,616) (6,176)Foreign 4,411 313Current year’s tax expense 47,764 37,033Under/(over) provision in respect of prior years 3,494 (1,270)Associated companies 6,888 5,468Group relief and others (11,994) (5,669)Tax expense 46,152 35,562192 Notes to the financial statementsKeppel Land LimitedReport to Shareholders 2006

A reconciliation between the tax expense reported and the product of accounting profit multiplied by the applicable taxrate is as follows :Group2006 2005$’000 $’000Profit before tax and gain from enbloc property sales and impairment loss 217,983 183,449Tax at the rates applicable 43,597 36,690Write-back of provisions for properties heldfor sale not subject to tax (9,495) (3,432)Deferred tax write-back, net of provision (8,205) (5,863)Losses not deductible for tax purposes 13,085 16,644Expenses not deductible for tax purposes 2,319 1,562Utilisation of capital allowances and losses (1,243) (1,864)Different tax rates in other jurisdictions 14,615 12,421Non-taxable income (7,128) (13,729)Others 219 (5,396)Current year’s tax expense 47,764 37,033The statutory income tax rate applicable to Singapore Group companies for Year of Assessment 2007 is 20% (Year ofAssessment 2006 : 20%).Under the group tax relief system introduced by the Inland Revenue Authority of Singapore (“IRAS”), a Singaporeincorporated company may, upon satisfaction of the criteria set out by IRAS, transfer its current year’s unabsorbed capitalallowances, trade losses and donations to another company belonging to the same group, to be deducted against theassessable income of the latter company. The loss so utilized is recognised as a deferred tax asset in the accounts of thetransferor company.Net Tax ProvisionGroupCompany2006 2005 2006 2005$’000 $’000 $’000 $’000Provision for taxation 100,758 67,728 1,458 882Income tax refund receivable (14,380) (8,989) - -86,378 58,739 1,458 882Subject to Sections 23 and 37 of the Income Tax Act, Cap 134, the Group has certain unutilised tax losses of$363,004,000 (2005: $318,741,000) and capital allowances of $8,002,000 (2005: $3,322,000) at 31 December 2006 forwhich related tax benefits totalling $74,201,000 (2005: $64,413,000) have not been included in the accounts. The taxlosses are available for offset against future taxable profits of the companies in which the losses arose but for whichno deferred tax asset has been recognised due to uncertainty of their recoverability.Notes to the financial statementsKeppel Land LimitedReport to Shareholders 2006193

Notes to the financial statements7. Taxation (cont’d)Deferred TaxationDeferred tax at the end of the year consists of the following :GroupCompany2006 2005 2006 2005$’000 $’000 $’000 $’000Deferred tax liabilities :Differences in depreciation 5,837 15,813 - -Offshore income not remitted 5,532 5,892 4,207 4,596Difference in fair values and book valuesof assets of subsidiaries acquired 15,605 25,640 - -For convertible bond 7,464 - 7,464 -34,438 47,345 11,671 4,5968. Dividends(a) Distribution in specieIn April 2006, the Company declared and paid in specie a distribution of K-REIT Asia units of 36.6 cents net pershare in respect of the year ended 31 December 2006.The dividend comprises:Gross Dividend RateIncome Tax Rate(i) 36.875 cents per share 20%(ii) 7.1 cents per share Tax exempt (One-tier)(b)(c)Final dividend paidGroup and Company2006 2005$’000 $’000Final one-tier of 5 cents per share (2005: 5 cents pershare less tax) 35,962 28,543The Directors propose that a final one-tier dividend of 6 cents per share (2005: 5 cents per share) be paid for theyear ended 31 December 2006.194 Notes to the financial statementsKeppel Land LimitedReport to Shareholders 2006

9. Earnings per ShareGroup2006 2005(a)The calculation of basic earnings per shareis based on the following:Profit after tax and minority interests ($’000) 200,310 155,709Weighted average number of shares (’000) 717,624 713,456(b)The calculation of diluted earnings per shareis based on the following:The average fair value of one ordinary share ($) 6.9 3.66$’000 $’000Profit after tax and minority interests 200,310 155,709Interest expense on convertible bond 1,082 -Profit used to determine diluted earnings per share 201,392 155,709GroupNumber of Shares2006 2005’000 ’000Weighted average number of shares(used in the calculation of basic earningsper share) 717,624 713,456Assumed conversion of convertible bond 4,047 -Number of unissued shares under option 1,364 4,391Number of shares that would have beenissued at fair value (375) (2,096)Adjusted weighted average number of shares 722,660 715,75110. Share CapitalGroup and Company Group and Company2006 2005 2006 2005Shares Shares’000 ’000 $’000 $’000Issued and fully paid: 719,233,581(2005: 715,153,081) shares 719,234 715,153 1,183,413 357,576Issued and fully paid:At 1 January 715,153 711,950 357,576 355,975Shares issued under the Keppel LandShare Option Scheme 4,081 3,203 6,076 1,601Transfer of share premium reserve to share capitalaccount - - 819,761 -At 31 December 719,234 715,153 1,183,413 357,576With effect from 30 January 2006, the concepts of “par value” and “authorised capital” were abolished under theCompanies (Amendment) Act 2005. The amount standing to the credit of the Company’s share premium account as at30 January 2006 has became part of the Company’s share capital as at that date (see also Note 11).Notes to the financial statementsKeppel Land LimitedReport to Shareholders 2006195

Notes to the financial statements10. Share Capital (cont’d)The holders of ordinary shares are entitled to receive dividends as and when declared by the Company. All ordinaryshares carry one vote per share without restrictions.During the year, the Company issued for cash 4,080,500 shares comprising 102,000 shares at $1.71 per share,369,000 shares at $2.48 per share, 199,000 shares at $1.87 per share, 578,000 shares at $2.47 per share,617,000 shares at $1.35 per share, 914,500 shares at $1.44 per share, 388,000 shares at $1.17 per share,380,500 shares at $1.48 per share, 325,000 shares at $1.86 per share, and 207,500 shares at $1.84 per share to certainfull-time employees on exercise of options under the Keppel Land Share Option Scheme.Keppel Land Share Option Scheme(a) The Keppel Land Share Option Scheme (“the Scheme”) which has been approved by the shareholders of theCompany is administered by the Remuneration Committee whose members are:Tan Yam Pin, ChairmanLim Ho KeeTsui Kai Chong(b)(c)Under the Scheme, an option may, except in certain special circumstances, be exercised at any time after twoyears but no later than the expiry date. The shares under option may be exercised in full or in respect of 100 sharesor a multiple thereof, on the payment of the subscription price. The subscription price is based on the average lastbusiness done price for the shares of the Company on the Singapore Exchange Securities Trading Limited for thethree market days preceding the date of offer. The Remuneration Committee may at its discretion fix thesubscription price at a discount not exceeding 20% of the abovementioned average market price. None of theoptions offered in the financial year was granted at a discount. The executive employees to whom the optionshave been granted do not have the right to participate by virtue of the options in a share issue of any othercompany.Movements in the number of share options and their weighted average exercise prices are as follows:2006 2005WeightedWeightedAverageAverageNumber of Exercise Number of ExerciseOptions price Options priceBalance at 1 January 6,841,000 $1.93 9,423,000 $1.77Granted 1,275,500 $3.98 1,340,000 $2.73Exercised (4,080,500) $1.93 (3,202,500) $1.75Cancelled (196,500) $2.01 (719,500) $1.89Balance at 31 December 3,839,500 $2.37 6,841,000 $1.93Exercisable at 31 December 1,364,000 $1.88 4,391,000 $1.75The weighted average share price at the date of exercise for options exercised during the financial year was $4.68(2005 : $3.06). The options outstanding at the end of the financial year had a weighted average exercise price of$1.88 (2005 : $1.75) and a weighted average remaining contractual life of 7.8 years (2005 : 6.9 years).196 Notes to the financial statementsKeppel Land LimitedReport to Shareholders 2006

(d)On 8 February 2006 and 10 August 2006, the Company granted options of 616,000 and 659,500 respectively underthe Scheme. The estimated fair values of the options granted are $1.362 and $1.3894 respectively. These fairvalues are determined using the Black-Scholes pricing model. The significant inputs into the model are as follows:2006 2005Date of grant 8.2.06 10.8.06 9.12.05 9.12.05(First (SecondTranche) Tranche)Share price $3.90 $4.06 $2.38 $3.07Exercise price $3.90 $4.06 $2.38 $3.07Expected volatility 39.42% 38.15% 58.66% 58.77%Expected life 5 years 5 years 5 years 5 yearsRisk free rate 3.19% 3.22% 2.22% 2.22%Expected dividend yield 1.28% 1.23% 1.68% 1.3%The expected volatility is determined by calculating the historical volatility of the Company’s share price over theprevious five years. The expected life used in the model has been adjusted, based on management’s bestestimate, for the effects of non-transferability, exercise restrictions and behavioural considerations.(e)At 31 December 2006, there were options granted to certain employees to take up 3,839,500 unissued shares inthe Company as follows :Subscription Price Number of$ Shares1.71 32,0002.48 129,0001.87 127,0002.47 209,0001.35 106,0001.44 221,0001.86 195,0001.84 345,0002.38 600,0003.07 600,0003.90 616,0004.06 659,5003,839,500(f)Details of share options granted by Evergro Properties Limited (“Evergro”), subsidiary of the Company aredisclosed in the annual report of Evergro.Notes to the financial statementsKeppel Land LimitedReport to Shareholders 2006197

Notes to the financial statements11. ReservesGroupCompany2006 2005 2006 2005$’000 $’000 $’000 $’000Share premium (see Note 10) - 818,794 - 818,794Capital reserves:Capital redemption reserves - 4,005 - -Asset revaluation reserves 263,043 299,088 - -Equity component of convertible bond 31,917 - 31,917 -Share option reserves 2,956 1,414 2,956 1,414Available-for-sale asset reserves 5,006 3,540 494 -Others 7,242 3,237 - -310,164 311,284 35,367 1,414Foreign currency translation account (38,636) (17,697) - -Revenue reserves (see note below) 135,993 208,975 366,817 320,003407,521 1,321,356 402,184 1,140,211Capital redemption reserves represented the amount by which the issued share capital of certain subsidiaries had beendiminished on redemption of redeemable preference shares.Asset revaluation reserves of the Group represent mainly the revaluation surplus from the Group’s investment buildings.None of the above capital reserves is free for distribution as dividends.The foreign currency translation account of the Group represents exchange differences arising from the translation of thefinancial statements of foreign subsidiaries and associated companies, and exchange differences in respect of offsettingforeign currency loans. The Group’s investments in Indonesia have been written down vide such year-end translation offoreign currencies, and the deficits have been included in this foreign currency translation account.Revenue reserves are retention of distributable profits which can be franked out of tax credits available in Singapore andMalaysia at the prevailing tax rates applicable to dividends. These tax credits have been utilised in full with theestablishment of K-REIT Asia in April 2006 by way of distribution in specie.Movements in Group and Company reserves are set out in the statements of changes in equity.198 Notes to the financial statementsKeppel Land LimitedReport to Shareholders 2006

12. Long-term BorrowingsGroupCompany2006 2005 2006 2005$’000 $’000 $’000 $’000Borrowings under MTN Programme 369,750 765,750 369,750 765,750Liability component of convertible bond 257,639 - 257,639 -Bank borrowings:Secured 267,517 104,657 - -Unsecured 370,000 588,660 370,000 420,670637,517 693,317 370,000 420,670Loans from related companies, unsecured 846,201 1,166,206 484,719 524,192Total 2,111,107 2,625,273 1,482,108 1,710,612The Company has a US$800 million Multicurrency Medium Term Note (“MTN”) Programme under which it can issuenotes in series or tranches and may be denominated in Singapore dollars, United States dollars or other currency deemedappropriate at the time.Notes which were outstanding at balance sheet date amounted to $369,750,000. The notes are unsecured and comprise(a) fixed rate notes due in 2008 of $30,000,000, and (b) variable rate notes due in 2008 of $79,750,000, 2009 of$50,000,000, 2010 of $150,000,000, 2012 of $15,000,000 and 2013 of $45,000,000. Interest payable is based on moneymarkets rates ranging from 2.35% to 4.2% (2005: 1.26% to 4.39%) per annum. Variable rate notes are repriced within 3to 6 months.The Group’s secured bank borrowings bear interest at rates of 3.1% to 12.69% (2005: 2.88% to 16.02%) per annum,repriced within 1 to 12 months. The securities are mortgages of properties held by subsidiary companies and arerepayable between 2 to 5 years.Interest on the Group’s unsecured bank borrowings is payable at rates ranging from 2.95% to 4.23% (2005: 1.7% to4.91%) per annum, repriced every 6 months and are repayable between 2 to 5 years.The above long-term borrowings are repayable between 2 and 8 years. Borrowings repayable within 1 year are shownunder current liabilities.Loans from related companies have no fixed terms of repayment and are not expected to be repaid over the next 12months. Interest is payable at rates ranging from 3.6% to 6.59% (2005: 1.85% to 6.23%) per annum and are repriceddaily or within 7 days to 3 months.Convertible BondOn 23 June 2006, the Company issued $300,000,000 2.5%, 7-year convertible bond. Interest is payable semi-annually.The bond maturing on 23 June 2013 is convertible at the option of bondholders to ordinary shares of the Company at theconversion price of $6.55 per share. Any bondholder may request that the Company redeems all or some of its bonds on23 June 2011 or in the event that the Company’s shares ceased to be listed or admitted to trading on the SingaporeExchange Securities Trading Limited.Notes to the financial statementsKeppel Land LimitedReport to Shareholders 2006199

Notes to the financial statementsConvertible Bond (cont’d)The convertible bond is recognised on the balance sheet as follows:The Group and Company2006 2005$’000 $’000Face value of convertible bond issued on 23 June 2006 300,000 -Equity conversion component, net of deferred income tax liability (31,917) -Deferred income tax liability (7,979) -Liability component on initial recognition on 23 June 2006 260,104 -Interest expense 6,899 -Interest paid (3,914) -Prepaid issued expenses (5,450) -Liability component at 31 December 2006 257,639 -Interest expense on the convertible bond is calculated based on the effective interest method by applying the interestrate of 4.78% per annum for an equivalent non-convertible bond to the liability component of the convertible bond.The carrying amounts of long-term borrowings are denominated in the following currencies:GroupCompany2006 2005 2006 2005$’000 $’000 $’000 $’000Singapore dollars 1,480,141 1,903,499 997,389 1,186,419United States dollars 549,964 658,702 444,384 488,289Others 81,002 63,072 40,335 35,9042,111,107 2,625,273 1,482,108 1,710,612200 Notes to the financial statementsKeppel Land LimitedReport to Shareholders 2006

13. Fixed AssetsLand and Buildings MachineryLong EquipmentFreehold Lease & Vehicles Total$’000 $’000 $’000 $’000GroupCostAt 1 January 2006 156 292,093 138,468 430,717Additions 22 2,715 4,336 7,073Disposals - - (2,643) (2,643)Write-off to profit and loss account - (911) - (911)Costs adjustment - (1,849) 680 (1,169)Reclassified from development properties - 8,848 941 9,789Exchange differences arising on consolidation - (24,202) (8,695) (32,897)At 31 December 2006 178 276,694 133,087 409,959Accumulated Depreciation and ImpairmentAt 1 January 2006 88 54,291 123,151 177,530Depreciation for the year 26 7,578 3,622 11,226Disposals - - (2,565) (2,565)Write-off to profit and loss account - (119) - (119)Impairment in value - 28,011 4,188 32,199Exchange differences arising on consolidation 1 (5,719) (7,731) (13,449)At 31 December 2006 115 84,042 120,665 204,822Net Book Value 63 192,652 12,422 205,137Owing to the continued uncertainty in Myanmar, the Group made an additional impairment charge of $32,199,000 in theGroup’s profit and loss account (2005 : $21,733,000) during the year based on the Directors’ assessment of therecoverable amounts of the two hotels which were determined by discounting their future estimated cashflows fromoperations to present value at 8.5% (2005 : 7.5%).FreeholdLand andBuildings$’000CompanyCostAt 1 January 2006 and at 31 December 2006 156DepreciationAt 1 January 2006 88Depreciation for the year 6At 31 December 2006 94Net Book Value 62Notes to the financial statementsKeppel Land LimitedReport to Shareholders 2006201

Notes to the financial statements13. Fixed Assets (cont’d)Land and Buildings MachineryLong EquipmentFreehold Lease & Vehicles Total$’000 $’000 $’000 $’000GroupCostAt 1 January 2005 156 269,551 128,483 398,190Additions - 105 4,278 4,383Disposals - (706) (243) (949)Costs adjustment - (1,169) - (1,169)Exchange differences arising on consolidation - 9,186 3,696 12,882Subsidiaries acquired - 15,126 2,254 17,380At 31 December 2005 156 292,093 138,468 430,717Accumulated Depreciation and ImpairmentAt 1 January 2005 83 31,578 100,607 132,268Depreciation for the year 5 12,418 4,897 17,320Disposals - - (232) (232)Impairment in value - 8,263 13,470 21,733Exchange differences arising on consolidation - 1,568 3,167 4,735Subsidiaries acquired - 464 1,242 1,706At 31 December 2005 88 54,291 123,151 177,530Net Book Value 68 237,802 15,317 253,187FreeholdLand andBuildings$’000CompanyCostAt 1 January 2005 and at 31 December 2005 156DepreciationAt 1 January 2005 83Depreciation for the year 5At 31 December 2005 88Net Book Value 68202 Notes to the financial statementsKeppel Land LimitedReport to Shareholders 2006

14. Investment PropertiesGroupLand and BuildingsLongFreehold Lease Total$’000 $’000 $’000ValuationAt 1 January 2006 406,137 1,249,233 1,655,370Revaluation deficit (4,311) (89,056) (93,367)Reclassified (to)/from properties held for sale (11,000) 53,681 42,681Impairment in value (2,100) - (2,100)Improvements to buildings - 22,692 22,692Sale to K-REIT Asia (353,500) (277,200) (630,700)Disposals (1,300) - (1,300)Subsidiary acquired - 220,000 220,000Exchange differences arising on consolidation 608 (14,162) (13,554)At 31 December 2006 34,534 1,165,188 1,199,722The Group’s investment properties (including integral plant and machinery) are stated at Directors’ valuation based on thefollowing valuations (open market value basis) by independent firms of professional valuers as at 31 December 2006:(a)(b)(c)(d)Colliers International Consultancy & Valuation (Singapore) Pte Ltd and DTZ Debenham Tie Leung (SEA) Pte Ltd forproperties in Singapore;Associated Properties Consultants for properties in Vietnam;PT. Wilson Properti Advisindo for a property in Indonesia;Agency for Real Estate Affairs for a property in Thailand.Based on these valuations, the Group’s share of net revaluation deficit amounted to $83,024,000 (2005 : surplus of$6,034,000) and was taken directly to capital reserves.Properties amounting to $279,000,000 (2005 : $13,100,000) in value and included in the above balances were mortgagedto banks as securities for borrowings referred to in Notes 12 and 25.Notes to the financial statementsKeppel Land LimitedReport to Shareholders 2006203

Notes to the financial statements15. Properties Held for DevelopmentGroup2006 2005$’000 $’000Properties held for development comprise:Land costs 111,411 127,432Development costs incurred 71,916 86,369183,327 213,801Properties held for development are transferred to fixed assets or investment properties when the respectivedevelopments are completed.16. Subsidiary CompaniesCompany2006 2005$’000 $’000Quoted shares, at cost 127,615 111,974(Market value $139,271,000; 2005 : $59,877,000)Unquoted shares, at cost 1,215,128 1,183,4311,342,743 1,295,405Impairment in value (156,730) (144,770)1,186,013 1,150,635The following subsidiary was acquired by the Group during the financial year:EffectiveEffectiveInterestInterestName of before Interest after Net AssetsSubsidiary Acquisition Acquired Acquisition Acquired Consideration$’000 $’000D.L. Properties Pte Ltd 35.3% 29.3% 64.6% 17,866 17,866Loss of the acquired subsidiary from the date of acquisition to 31 December 2006 amounted to $16,000. If theacquisition had occurred on 1 January 2006, Group revenue and attributable profit would have been $958,024,000 and$198,598,000 respectively.Details of fair values of net assets acquired are disclosed in the consolidated cash flow statement.204 Notes to the financial statementsKeppel Land LimitedReport to Shareholders 2006

17. Associated CompaniesGroupCompany2006 2005 2006 2005$’000 $’000 $’000 $’000At cost 468,924 342,891 137,576 169,409Share of post-acquisition retained revenue reserves(Distributable) 66,053 23,994 - -Capital and other reserves (Non-distributable) 89,157 21,304 - -Investment in associated companies (See note below) 624,134 388,189 137,576 169,409Impairment in value - - (2,256) (14,216)624,134 388,189 135,320 155,193Investment in associated companies is represented by:Quoted shares (Market value, 2006: $244,882,000) 199,621 - - -Unquoted shares 424,513 388,189 135,320 155,193624,134 388,189 135,320 155,193Group’s share of profit for the year:2006 2005$’000 $’000Profit before taxation 27,606 28,228Taxation (6,888) (5,468)Profit after taxation 20,718 22,760The summarised financial information of the associated companies on a 100% basis is as follows:2006 2005$’000 $’000Total assets 6,625,539 6,187,315Total liabilities (4,814,331) (4,968,070)Revenue for the year 506,597 591,828Profit for the year 42,673 80,63218. Other InvestmentsGroupCompany2006 2005 2006 2005$’000 $’000 $’000 $’000Quoted shares in corporations, at market value 5,273 5,157 - -Unquoted shares in corporations 3,451 3,046 3,313 2,819Private property fund 26,517 18,750 - -35,241 26,953 3,313 2,819Notes to the financial statementsKeppel Land LimitedReport to Shareholders 2006205

Notes to the financial statements19. Properties Held for SaleGroup2006 2005$’000 $’000(a)Properties under Development:Land cost 1,547,608 1,680,769Development cost incurred to-date 828,399 561,735Related overhead expenditure 410,583 445,126Development profit 168,519 159,787Progress billings received and receivable (1,372,056) (976,795)Provisions (306,730) (593,381)1,276,323 1,277,241Analysis of provisions:At 1 January (593,381) (658,332)Transfer to properties held for sale 14,786 13,006Provisions written back 41,888 13,171Provisions utilised 229,977 38,774At 31 December (306,730) (593,381)(b) Completed Properties Held for Sale 98,810 132,487Provisions (22,218) (30,217)76,592 102,270Analysis of provisions:At 1 January (30,217) (21,326)Transfer from properties under development (14,786) (13,006)Provisions written back 5,587 3,990Provision utilised 17,198 125At 31 December (22,218) (30,217)Total 1,352,915 1,379,511Interest capitalised during the year was $61,106,000 (2005 : $50,566,000) at rates ranging from 3% to 16%(2005 : 3% to 16%) per annum.Properties amounting to $195,983,000 (2005 : $291,285,000) in value and included in the above balances weremortgaged to banks as securities for borrowings referred to in Notes 12 and 25.20. StocksGroup2006 2005$’000 $’000Spare parts and consumable stores 3,437 3,644206 Notes to the financial statementsKeppel Land LimitedReport to Shareholders 2006

21. DebtorsGroupCompany2006 2005 2006 2005$’000 $’000 $’000 $’000(a)(b)Trade Debtors:Trade debtors 52,488 24,529 - -Allowance for doubtful debts (4,326) (3,038) - -48,162 21,491 - -Other Debtors:Prepaid project costs and prepayments 22,143 16,749 957 1,596Deposits paid 3,822 1,716 - -Interest receivable 3,446 6,102 - -Derivative financial assets 5,263 7,665 - -Advances to corporations in which theGroup has investment interests 23,088 37,550 - -Advances to minority shareholders ofsubsidiary companies 4,047 3,532 - -Other debtors 29,696 12,740 - -Other recoverable amounts 36,528 43,256 611 720128,033 129,310 1,568 2,316Less: Allowance for doubtful debts (16,837) (10,621) - -111,196 118,689 1,568 2,316Total 159,358 140,180 1,568 2,316Advances to corporations in which the Group has investment interests are unsecured, have no fixed terms ofrepayment and are interest-free. These advances represent mainly the Group’s interest in the underlying propertydevelopment projects undertaken by a Singapore corporation and a Hong Kong corporation.Advances to minority shareholders are unsecured, have no fixed terms of repayment and are interest-free.Debtors are denominated in the following currencies:GroupCompany2006 2005 2006 2005$’000 $’000 $’000 $’000Singapore dollars 75,957 95,435 1,568 2,316Renminbi 29,522 12,450 - -United States dollars 17,094 14,258 - -Others 36,785 18,037 - -159,358 140,180 1,568 2,316Notes to the financial statementsKeppel Land LimitedReport to Shareholders 2006207

Notes to the financial statements21. Debtors (cont’d)Derivative financial assets for the Group consist of:2006 2005Cap/Swap Notional Fair Notional FairRate Maturity Amount Value Amount Value$’000 $’000 $’000 $’000Interest rate capagreements 2.65% July 2002 1,000,000 5,263 1,000,000 7,329to 2.99% to September 2007Interest rate swapagreement 2.89% November 2006 - - 150,000 3361,000,000 5,263 1,150,000 7,66522. Amounts Owing by/(to) Holding and Related PartiesGroupCompany2006 2005 2006 2005$’000 $’000 $’000 $’000Advances to (non-trade):Subsidiary companies - - 2,093,638 2,135,149Associated companies 896,967 865,606 2,907 2,907Related companies 20,315 26,767 4,168 4,540917,282 892,373 2,100,713 2,142,596Advances from (non-trade):Subsidiary companies - - 3,649 30,674Associated companies 59,012 44,046 57,057 41,168Current account (non-trade) owing to holdingand related companies 6,595 6,558 5,851 4,26165,607 50,604 66,557 76,103The advances to and from subsidiary companies are unsecured and have no fixed terms of repayment. Interest-bearingadvances of $2,017,226,000 (2005 : $1,889,917,000) to subsidiary companies are charged at rates ranging from 2.94%to 6.63% (2005: 1.26% to 4.91%) per annum.The advances to subsidiary companies are denominated in the following currencies as at 31 December :Company2006 2005$’000 $’000Singapore dollars 1,548,926 1,333,021United States dollars 504,379 713,267Others 40,333 88,8612,093,638 2,135,149The advances from subsidiary companies are largely denominated in Singapore dollars as at 31 December 2006, whereasas at 31 December 2005 the advances were substantially denominated in Hong Kong dollars.The advances to and from associated companies are unsecured and have no fixed terms of repayment. Interest bearingadvances by the Group to associated companies of $776,577,000 (2005 : $671,506,000) are charged at rates rangingfrom 1% to 8.59% (2005: 1% to 7.57%) per annum. These advances are largely denominated in Singapore dollars.208 Notes to the financial statementsKeppel Land LimitedReport to Shareholders 2006

Advances to related companies are interest-free, unsecured, have no fixed terms of repayment and are denominated inthe following currencies as at 31 December:GroupCompany2006 2005 2006 2005$’000 $’000 $’000 $’000Singapore dollars 2,093 12,533 1,432 1,540Hong Kong dollars 14,582 10,830 - -Others 3,640 3,404 2,736 3,00020,315 26,767 4,168 4,540Current account (non-trade) owing by holding and related companies are largely denominated in the United States dollars.Related companies are subsidiary companies of Keppel Corporation Limited.23. Fixed Deposits, Bank Balances and CashGroupCompany2006 2005 2006 2005$’000 $’000 $’000 $’000Fixed deposits with banks 283,932 303,439 - -Bank balances and cash 264,254 150,061 1,084 902Deposits with related companies 32,765 144,177 1,030 393580,951 597,677 2,114 1,295Fixed deposits, bank balances and cash are denominated in the following currencies as at 31 December:GroupCompany2006 2005 2006 2005$’000 $’000 $’000 $’000Singapore dollars 205,404 217,739 1,042 858Renminbi 301,082 328,330 - -United States dollars 16,821 25,757 1,072 44Others 57,644 25,851 - 393580,951 597,677 2,114 1,295Fixed deposits with banks mature on varying periods of between 7 days to 9 months (2005 : 7 days to 6 months) fromthe financial year. The interest rates of these deposits range from 0.25% to 9.07% (2005 : 0.61% to 12.75%) per annum.Included in fixed deposits, banks balances and cash are:Group2006 2005$’000 $’000(a) Amounts held under Project Account Rules 1985, withdrawalsfrom which are restricted to payments for expendituresincurred on projects 162,594 73,334(b)Amount held in escrow accounts for payment of constructioncosts and progress billings received 1,407 18,579Notes to the financial statementsKeppel Land LimitedReport to Shareholders 2006209

Notes to the financial statements24. CreditorsGroup Company2006 2005 2006 2005$’000 $’000 $’000 $’000Trade creditors 94,380 64,348 - -Deposits received 35,166 21,729 - -Loans from minority shareholders ofcertain subsidiary companies 244,856 273,676 - -Interest payable 18,912 15,250 7,526 8,349Derivative financial liabilities - 602 - -Retention monies 25,870 20,837 - -Accruals and other payables 204,219 206,050 6,896 5,433623,403 602,492 14,422 13,782The loans from the minority shareholders of certain subsidiary companies are unsecured and have no fixed terms ofrepayment. Interest-bearing loans from the minority shareholders amounted to $159,865,000 (2005 : $188,893,000) andinterest is payable at rates ranging from 4.06% to 5% (2005: 4.2% to 5%) per annum.Creditors are denominated in the following currencies as at 31 December:GroupCompany2006 2005 2006 2005$’000 $’000 $’000 $’000Singapore dollars 372,307 376,326 13,013 12,370Renminbi 106,683 97,729 - -United States dollars 67,749 72,807 241 221Others 76,664 55,630 1,168 1,191623,403 602,492 14,422 13,78225. Short-term BorrowingsGroupCompany2006 2005 2006 2005$’000 $’000 $’000 $’000Unsecured borrowings under MTN Programme 221,000 151,160 221,000 151,160Bank borrowings:Secured 9,175 38,177 - -Unsecured 209,444 17,586 46,290 -218,619 55,763 46,290 -Total 439,619 206,923 267,290 151,160Unsecured borrowings under MTN Programme bear interest at rates ranging from 2.3% to 4.1% (2005 : 2.23% to 2.34%)per annum, repayable within one year and are repriced within 3 to 6 months.210Notes to the financial statementsKeppel Land LimitedReport to Shareholders 2006

Secured bank borrowing bears a fixed interest rate of 5.5% per annum. The security is a mortgage of investmentproperty held by a subsidiary company. The secured bank borrowings for 2005 were charged interest at rates of 4.25%to 5.5% and were secured by mortgages of an investment property and development property held by subsidiarycompanies.Unsecured bank borrowings are charged interest at rates ranging from 2.9% to 10% (2005 : 4.39% to 7.25%) per annumand repriced within 1 to 6 months.Short-term borrowings are denominated in the following currencies as at 31 December:GroupCompany2006 2005 2006 2005$’000 $’000 $’000 $’000Singapore dollars 380,209 125,000 221,000 151,160United States dollars 46,290 43,582 46,290 -Others 13,120 38,341 - -439,619 206,923 267,290 151,16026. Sales, Profits and Assets Employed by Segment(a)By Industry - SegmentRevenue and profit by industry segment are as follows:Revenue Profit before Taxation Attributable Profit2006 2005 2006 2005 2006 2005$’000 $’000 $’000 $’000 $’000 $’000Property trading 809,751 465,057 207,693 144,572 150,723 111,897Property investment 67,274 69,368 37,434 41,678 27,552 39,654Hospitality, asset managementand property services 70,993 51,966 (27,144) (2,801) (23,991) 2,970948,018 586,391 217,983 183,449 154,284 154,521Gains from enblocproperty sales, lessimpairment loss - - 45,425 1,188 46,026 1,188948,018 586,391 263,408 184,637 200,310 155,709Notes to the financial statementsKeppel Land LimitedReport to Shareholders 2006211

Notes to the financial statements26. Sales, Profits and Assets Employed by Segment (cont’d)(b) By Geographical Location - 2006Other ConsolidatedSingapore Countries Total$’000 $’000 $’000Sales 455,612 492,406 948,018ResultsOperating profit 63,821 140,261 204,082Investment income and net (interest expense)/interest income (14,756) 1,051 (13,705)Share of results of associated companies 8,031 19,575 27,606Gains from enbloc property sales, lessimpairment loss 55,589 (10,164) 45,425Profit before taxation 112,685 150,723 263,408Assets and liabilitiesSegment assets 2,897,831 1,739,539 4,637,370Investment in associated companies 477,893 146,241 624,134Total assets 3,375,724 1,885,780 5,261,504Segment liabilities 340,155 348,855 689,010Net tax provision and deferred taxation 12,099 108,717 120,816352,254 457,572 809,826Unallocated liabilities - - 2,550,726Total liabilities - - 3,360,552Other segment information:Purchase of fixed assets and improvement ininvestment properties 23,759 6,006 29,765Depreciation charge 1,306 9,920 11,226(Write-back)/impairment in value of investmentin associated companies with hotel interests inIndonesia and Singapore (7,570) 5,041 (2,529)Impairment in value of the Group’s hotels inMyanmar - 32,199 32,199212 Notes to the financial statementsKeppel Land LimitedReport to Shareholders 2006

(c) By Geographical Location - 2005Other ConsolidatedSingapore Countries Total$’000 $’000 $’000Sales 207,282 379,109 586,391ResultsOperating profit 36,852 109,750 146,602Investment income and net interestincome 4,067 4,552 8,619Share of results of associated companies 20,333 7,895 28,228Gains from enbloc property sales, lessimpairment loss 30,221 (29,033) 1,188Profit before taxation 91,473 93,164 184,637Assets and liabilitiesSegment assets 3,362,342 1,800,354 5,162,696Investment in associated companies 193,884 194,305 388,189Total assets 3,556,226 1,994,659 5,550,885Segment liabilities 327,643 325,453 653,096Net tax provision and deferred taxation 22,713 83,371 106,084350,356 408,824 759,180Unallocated liabilities - - 2,832,196Total liabilities - - 3,591,376Other segment information:Purchase of fixed assets and improvement ininvestment properties 3,625 2,093 5,718Depreciation charge 893 16,427 17,320Impairment in value of investment in associatedcompanies with hotel interests in Indonesiaand Singapore 7,570 7,300 14,870Impairment in value of the Group’s hotels inMyanmar - 21,733 21,733Notes to the financial statementsKeppel Land LimitedReport to Shareholders 2006213

Notes to the financial statements27. Capital and Lease CommitmentsGroup2006 2005$’000 $’000(a)(b)(c)Estimated development costs forproperties held for sale:(i) Contracted for 537,720 927,973(ii) Not contracted for 554,712 545,2771,092,432 1,473,250Less: Minority shareholders’ share (198,019) (288,243)894,413 1,185,007Estimated capital subscription in associatedcompanies 621,895 381,780Operating lease commitments are as follows:The future minimum rental payments receivable under significant non-cancellable leases are as follows:Group2006 2005$’000 $’000Within one year 40,826 56,918Between two and five years 45,389 61,370Beyond five years 16,147 1,717102,362 120,005Non-cancellable leases in relation to four buildingsearmarked for sale to K-REIT Asia - (58,207)102,362 61,798Most of the Group’s non-cancellable leases are for terms of three years.28. Contingent Liabilities, UnsecuredGroupCompany2006 2005 2006 2005$’000 $’000 $’000 $’000(i)Unsecured guarantees given to financialinstitutions in connection with:(a) Facilities given to subsidiary companies - - 172,479 226,718(b) Facilities given to associated companies 6,255 7,347 - 500(c) Facilities given to investee company 307 307 307 307(d)Facilities given to certain end-purchasersof overseas residential properties 2,478 3,005 - -No material losses under these guarantees are expected.(ii)Business taxes on the Group’s profits ofoverseas projects - 20,400 - -214Notes to the financial statementsKeppel Land LimitedReport to Shareholders 2006

29. Significant Related Party Transactions(a) Significant related party transactions entered into by the Group with the holding company, fellow subsidiaries andrelated parties are as follows:2006 2006 2005 2005$’000 $’000 $’000 $’000with Holdingwith HoldingCompany with Group’s Company with Group’sand Fellow Associated and Fellow AssociatedSubsidiaries Companies Subsidiaries CompaniesInterest income 6,767 34,286 3,655 13,562Interest expense (49,924) - (36,538) -Management fees paid (3,174) - (2,971) -Rental expense (1,293) - - (1,589)Project and development managementfees received 1,266 143 338 1,377Property management fees received 939 63 430 54Marketing commission received 2,082 4,106 2,961 1,702Management and support services 1,244 1,202 1,749 1,490Asset management fees 2,667 - - -Other products and services (559) - (788) (1,000)(b)Transactions entered into by the Group with the Directors of the Company and Directors of Keppel CorporationLimited are as follows:2006 2005$’000 $’000Consideration for the sale of units in Singapore and overseasresidential developments to Directors of the Company andDirectors of Keppel Corporation Limited and their immediatefamily members at prevailing prices applicable to third parties 41,265 779(c)Transactions entered into by the Group with the Temasek Group:(i) Compensation received from Capitaland Retail ManagementPte Ltd on termination of Parco Bugis Junction retail malladvisory services agreement 2,161 -(ii) Management fee paid (228) -(iii) Sale of Parco Bugis Junction to CapitaMall Trust and theCompany’s purchase of the office subsidiary in Bugis Junction - 148,000The related party transactions in (a) and (c) above are entered into in the normal course of business based on negotiatedarm’s length prices.Notes to the financial statementsKeppel Land LimitedReport to Shareholders 2006215

Notes to the financial statements30. Financial InstrumentsFinancial Risk Management Objectives and PoliciesThe Group is exposed to a variety of market risks including the effects of changes in interest rates and foreign currencyexchange rates. Assessment of financial risks is carried out regularly by management.To manage the market risks, the Group uses derivative financial instruments where appropriate, eg interest rate swaps,interest rate cap agreements, and forward foreign exchange and non-deliverable forward contracts. The Group does notissue or hold derivative financial instruments for trading purposes.The risk management policies are summarised as follows:Interest Rate RiskThe Group’s exposure for changes in interest rates is in respect of deposits and debt obligations with related companiesand external financial institutions.The interest rate management policy is aimed at optimising net interest cost and reducing volatility. The Group borrows amix of fixed and variable rate debts with varying tenors. The Group also uses interest rate swaps and caps to hedgeagainst changes in interest rates on the underlying debt obligations.Foreign Currency RiskThe Group is exposed to foreign exchange movements on its net investment in foreign subsidiaries, which generaterevenue and incur costs denominated in foreign currencies. Assets held in foreign currencies are, to a large extent,financed by borrowings in the same currencies. Where appropriate, the Group will also enter into forward foreignexchange contracts to hedge against its foreign exchange risk in anticipated purchase or sale transactions denominated inforeign currencies.Credit RiskCredit risk arises in the event of the inability of a counterparty to meet the terms of the Group’s financial instrumentcontracts. It is generally limited to the amounts, if any, by which the counterparty’s obligations exceed the obligations ofthe Group. It is also the Group’s policy to enter into financial instrument contracts with a diversity of prime financialinstitutions.31. Fair Value of Financial Assets and LiabilitiesThe carrying amounts of the following financial assets and liabilities of the Group and Company approximate their fairvalues due to their short-term nature : Bank and cash balances, debtors, creditors and amounts due from / (to) relatedcompanies.The fair values of the short-term and long-term borrowings as at 31 December 2006 are as stated below. They areestimated using discounted cash flow analysis based on current rates for similar types of borrowing arrangements.GroupCompanyCarrying Fair Carrying FairAmount Value Amount Value$’000 $’000 $’000 $’000Short-term borrowings 439,619 439,294 267,290 266,965Long-term borrowings 2,111,107 2,129,164 1,482,108 1,500,165216Notes to the financial statementsKeppel Land LimitedReport to Shareholders 2006

32. Financial Reporting Standards (“FRS”), FRS Interpretations (“INT FRS”) and Recommended Accounting Practice(“RAP”)The Group has not applied the following FRS and INT FRS that have been issued for implementation in future years:Effective Date(Annual Periodsbeginning on or after)FRS 1 : Amendement to FRS 1 (revised):Presentation of financial statements (Capital disclosures) 1 January 2007FRS 40 : Investment property 1 January 2007FRS 107 : Financial instruments: Disclosures 1 January 2007INT FRS 107 : Applying the restatement approach under FRS 29,Financial reporting in hyperinflationary economies 1 March 2006INT FRS 108 : Scope of FRS 102, Share-based payment 1 May 2006INT FRS 109 : Reassessment of embedded derivatives 1 June 2006INT FRS 110 : Interim financial reporting and impairment 1 November 2006The Directors expect that the adoption of the above pronouncements will have no material impact to the financialstatements in the period of initial application, except for FRS 40, FRS 107 and the amendment to FRS 1, and also RAP 11as indicated below:(a)FRS 40 Investment PropertyThe Group will adopt FRS 40 on 1 January 2007, which is the effective date of the FRS.Currently, investment properties are accounted for in accordance with the accounting policy as set out in item (h) ofSummary of Significant Accounting Policies. Under FRS 40, changes in fair values of investment properties arerequired to be included in the profit and loss account. On transition to FRS 40 on 1 January 2007, the amountaccumulated in the asset revaluation reserve at 31 December 2006 of $263,043,000 will be adjusted against therevenue reserves at 1 January 2007.(b)FRS 107 Financial Instruments: Disclosure, and a Complementary Amendment to FRS 1 Presentation of FinancialStatements (Capital Disclosures)The Group will adopt FRS 107 on 1 January 2007, which is the effective date of the FRS. FRS 107 introduces newdisclosures to improve the information about financial instruments. It requires the disclosure of qualitative andquantitative information about exposure to risks arising from financial instruments, including minimum disclosuresabout credit risk, liquidity risk and market risk (including sensitivity analysis to market risk). It replaces the disclosurerequirements in FRS 32 on Financial instruments: Disclosure and presentation. The amendment to FRS 1 introducesdisclosures about the level of an entity’s capital and how it manages capital.(c)RAP 11 Pre-Completion Contracts for the Sale of Development PropertyRAP 11 was issued by the Institute of Certified Public Accountants of Singapore in October 2005. In the RAP, it ismentioned that a property developer’s sales and purchase agreement is not a construction contract as defined inFRS 11 (Construction contracts) and the percentage of completion (“POC”) method of recognising revenue, whichis allowed under FRS 11 for construction contracts, may not be applicable for property developers. The relevantstandard for revenue recognition by property developers is FRS 18 (Revenue), which addresses revenuerecognition generally for all types of entities. However, there is no clear conclusion in FRS 18 whether the POCmethod or the completion of construction (“COC”) method is more appropriate for property developers. The issueis being addressed by the International Accounting Standards Board.Notes to the financial statementsKeppel Land LimitedReport to Shareholders 2006217

Notes to the financial statements(c)RAP 11 Pre-Completion Contracts for the Sale of Development Property (cont’d)The Group uses the POC method for recognising revenues from partly completed residential projects which are held forsale. Had the COC method been adopted, the impact on the financial statements will be as follows:2006 2005$’000 $’000Decrease in revenue recognised for the year (619,350) (21,414)Decrease in opening revenue reserve (72,314) (75,405)(Decrease)/increase in profit for the year (82,232) 3,091Decrease in carrying value of properties held for sale:Balance as at 1 January (97,134) (114,085)Balance as at 31 December (195,546) (97,134)Decrease in minority interests:Balance as at 1 January (1,632) (747)Share of profit for the year (7,694) (885)33. Significant Group CompaniesInformation relating to the significant subsidiary companies consolidated in these accounts and to the associatedcompanies whose results are included in the accounts is given on Pages 219 to 224.218 Notes to the financial statementsKeppel Land LimitedReport to Shareholders 2006

Significant subsidiary and associated companiesCountry ofEffectiveIncorporation/Equity Interest Place of Principal2006 2005 Business Activities% %SubsidiariesAcresvale Investment Pte Ltd 100 100 Singapore Property development and investmentAlpha Investment Partners Limited 100 100 Singapore Fund managementAvenue Park Development Pte Ltd* 52 - Singapore Property development(Incorporated on 2.3.06)Bayfront Development Pte Ltd* 100 100 Singapore Investment holdingBintan Bay Resort Pte Ltd* 90 90 Singapore Investment holdingBoulevard Development Pte Ltd* 100 100 Singapore Investment holdingBCH Office Investment Pte Ltd* 100 100 Singapore Investment holdingBukit Timah Hill Development Pte Ltd 100 100 Singapore Property developmentCastlehigh Pte Ltd 100 100 Singapore Investment holdingDL Properties Limited (35% 65 35 Singapore Property investmentinterest up to 30.11.06)Denton Investment Pte Ltd 100 100 Singapore Investment holdingDevonshire Development Pte Ltd* 60 60 Singapore Property developmentDovesdale Development Pte Ltd 100 100 Singapore Investment holdingEvergro Properties Limited 71 56 Singapore Property investment and(Formerly Dragon LanddevelopmentLimited, 56% interest up to19.1.06; 67% interest up to19.7.06)Evansville Investment Pte Ltd 100 100 Singapore Property developmentExperre Pte Ltd Singapore Investment holdingOrdinary Shares 100 100Preference Shares 100 100Fernland Investment Pte Ltd 55 55 Singapore Investment holdingFlanningan Investment Pte Ltd Singapore Investment holdingOrdinary Shares 100 100Preference Shares 100 100Floraville Estate Pte Ltd 100 100 Singapore Investment holdingGlenville Estate Investment Pte Ltd 100 100 Singapore Investment holdingGreenfield Development Pte Ltd Singapore Investment holdingOrdinary Shares 100 100Preference Shares 100 100Hampshire Pte Ltd 100 100 Singapore Investment holdingHarvestland Development Pte Ltd 100 100 Singapore Property development andinvestmentHigh Point Development Pte Ltd 100 100 Singapore Investment holdingHillwest Pte Ltd 100 100 Singapore Property holdingK-REIT Asia Investment Pte Ltd* 100 100 Singapore Investment holding(Formerly Keppel Land (PalmGardens) Pte Ltd)K-REIT Asia Management Limited 100 100 Singapore Property fund managementK-REIT Asia PropertyManagement Pte Ltd 100 100 Singapore Property management servicesKeplandeHub Limited Singapore Investment holdingOrdinary Shares 100 100Preference Shares 100 100Significant subsidiary and associated companiesKeppel Land LimitedReport to Shareholders 2006219

Significant subsidiary and associated companiesSubsidiariesCountry ofEffectiveIncorporation/Equity Interest Place of Principal2006 2005 Business Activities% %Keppel Digihub Holdings Pte Ltd* 100 100 Singapore Investment, management andholding companyKeppel Digihub Limited* 100 100 Singapore Property investmentKeppel Land China Holdings Pte Ltd 100 100 Singapore Investment holdingKeppel Land Financial Services Pte Ltd 100 100 Singapore Financial servicesKeppel Land International Limited Singapore Property servicesOrdinary Shares 100 100Preference Shares 100 100Keppel Land Properties Pte Ltd Singapore Investment holdingOrdinary Shares 100 100Preference Shares 100 100Keppel Land Realty Pte Ltd 100 100 Singapore Property development andinvestmentKeppel Land (Tower D) Pte Ltd* 100 100 Singapore Investment holdingKingsley Investment Pte Ltd 100 100 Singapore Investment holdingLe-Vision Pte Ltd 100 100 Singapore Investment holdingMansfield Developments Pte Ltd 100 100 Singapore Property developmentMansfield Realty Limited 100 100 Singapore Investment holdingMeadowsville Investment Pte Ltd Singapore Investment holdingOrdinary Shares 100 100Preference Shares 100 100Merryfield Investment Pte Ltd* 100 100 Singapore Investment holdingMontfort Development Pte Ltd Singapore Investment holdingOrdinary Shares 100 100Preference Shares 100 100Ocean & Capital Properties Pte Ltd* 100 100 Singapore Property/investmentholdingOcean Properties Pte Ltd* 76 76 Singapore Property investmentOIL (Asia) Pte Ltd Singapore Investment holdingOrdinary Shares 100 100Preference Shares 100 100Palmsville Investment Pte Ltd 84 84 Singapore Investment holdingPasir Panjang Realty Pte Ltd 100 100 Singapore Investment holdingPrestige Landmark Pte Ltd 51 51 Singapore Investment holdingSaigon Centre Holdings Pte Ltd Singapore Investment holdingOrdinary Shares 100 100Preference Shares 100 100Sedona Corporate Residence Pte Ltd* 100 100 Singapore Property servicesSedona Hotels International Pte Ltd 100 100 Singapore Hotel and resort managementSherwood Development Pte Ltd 100 100 Singapore Property developmentSilkland Investment Pte Ltd Singapore Investment holdingOrdinary Shares 100 100Preference Shares 100 100Spring City Resort Pte Ltd Singapore Investment holdingOrdinary Shares 100 100Preference Shares 100 100220Significant subsidiary and associated companiesKeppel Land LimitedReport to Shareholders 2006

Country ofEffectiveIncorporation/Equity Interest Place of Principal2006 2005 Business Activities% %SubsidiariesStraits Properties Limited 100 100 Singapore Property developmentStraits Property Investments Pte Ltd 100 100 Singapore Investment holdingStraits-CM Village Hotel Pte Ltd* 39 39 Singapore Investment holdingStraits-KMP Resort Development Pte Ltd* 46 46 Singapore Investment holdingSunlake Development Pte Ltd Singapore Investment holdingOrdinary Shares 100 100Preference Shares 100 100Tat Chuan Development Pte Ltd 100 100 Singapore Property developmentToshmatic Pte Ltd Singapore Investment holdingOrdinary Shares 100 100Preference Shares 100 100Waterville Investment Pte Ltd 100 100 Singapore Investment holdingWiseland Investment Pte Ltd 100 100 Singapore Investment holdingWisley Pte Ltd 100 100 Singapore Investment holdingAintree Assets Ltd (H) 100 100 British Virgin Investment holdingIslandsDouble Peak Holdings Ltd (H) British Virgin Investment holdingOrdinary Shares 100 100 IslandsPreference Shares 100 100 / SingaporeErskine Holdings Ltd* (H) 70 70 British Virgin Investment holdingIslands/ Hong KongJencity Ltd* (H) 90 90 British Virgin Investment holdingIslands/ VietnamPembury Properties Ltd* (H) 100 100 British Virgin Investment holdingIslands/ SingaporeRed Vibrant Investments Ltd (H) 100 100 British Virgin Investment holdingIslands/ VietnamSaigon Centre Investment Ltd* (H) 100 100 British Virgin Investment holdingIslands/ Hong KongSouthwick Developments Ltd (H) 100 100 British Virgin Investment holdingIslands/ ChinaVanese International Ltd* (H) 70 70 British Virgin Investment holdingIslands/ Hong KongBeijing Kingsley Property 100 100 China Property developmentDevelopment Co Ltd* (A)Chengdu Hillwest Development Co Ltd* (A) 100 100 China Property developmentShanghai Floraville Land Co Ltd* (A) 99 99 China Property developmentShanghai Merryfield Land Co Ltd* (A) 99 99 China Property developmentShanghai Minghong Property Co Ltd* (A) 99 99 China Property developmentSignificant subsidiary and associated companiesKeppel Land LimitedReport to Shareholders 2006221

Significant subsidiary and associated companiesCountry ofEffectiveIncorporation/Equity Interest Place of Principal2006 2005 Business Activities% %SubsidiariesShanghai Pasir Panjang Land Co Ltd* (A) 99 99 China Property developmentTianjin Merryfield Property 100 100 China Property developmentDevelopment Co Ltd* (A)Keppel Land (Saigon Centre) Ltd* (G) 100 100 Hong Kong Investment holdingStraits-KMP (HK) Ltd* (G) 51 51 Hong Kong Investment holdingVentek International Ltd* (G) 70 70 Hong Kong Investment holdingDuit Investment Ltd* (G) 100 100 Hong Kong Investment holdingKeppel Puravankara Development Pvt Ltd* (G) 51 51 India Property developmentPT Kepland Investama* (E) 100 100 Indonesia Property investmentPT Kepindo Properti* (E) 100 100 Indonesia Property servicesPT Keppel Land* (A) 100 100 Indonesia Property services andinvestment holdingPT Mitra Sindo Makmur* (E) 51 51 Indonesia Property development andinvestmentPT Mitra Sindo Sukses* (E) 51 51 Indonesia Property development andinvestmentPT Ria Bintan* (E) 46 46 Indonesia Golf course ownership and operationPT Sedona Hotels Indonesia* (A) 100 100 Indonesia Hotel and resort managementPT Sentral Supel Perkasa* (A) 80 80 Indonesia Property development andinvestmentPT Sentral Tanjungan Perkasa* (A) 80 80 Indonesia Property developmentPT Straits CM Village* (E) 39 39 Indonesia Hotel ownership and operationMagus Bengal Developers Pvt Ltd* 74 - India Property development(I) (Acquired on 22.12.06)Keppel Investment (Mauritius) Pte Ltd* (A) 100 100 Mauritius Investment holdingRochor Investment Ltd* (G) 55 55 Mauritius Investment holdingStraits Greenfield Ltd* (G) 100 100 Myanmar Hotel ownership and operationWiseland Investment Myanmar Ltd* (G) 100 100 Myanmar Hotel ownership and operationKeppel Philippines Properties Inc.(B) Philippines Investment holdingOrdinary shares 51 51Preference shares 100 100Keppel Thai Properties Public Co Limited (A) 45 45 Thailand Property development andinvestmentTop Property Co Ltd* (A) 66 66 Thailand Property developmentUtayan Thani Co Ltd* (A) 49 49 Thailand Investment holdingStraits (USA) Inc 100 100 United States Investment holdingof AmericaInternational Centre* (E) 43 43 Vietnam Property investmentKeppel Land Watco I Co Ltd* (F) 68 68 Vietnam Property investmentQuang Ba Royal Park JV Co* (F) 59 59 Vietnam Property investmentSaigon Riviera JV Co Ltd* (A) 90 90 Vietnam Property developmentSaigon Sports City* (A) 90 90 Vietnam Property development222 Significant subsidiary and associated companiesKeppel Land LimitedReport to Shareholders 2006

Country ofEffectiveIncorporation/Equity Interest Place of Principal2006 2005 Business Activities% %AssociatesAsia Real Estate Fund Management Limited* 50 50 Singapore Fund managementBFC Development Pte Ltd* 33 33 Singapore Property developmentBugis City Holdings Pte Ltd 42 42 Singapore Property investmentCityOne Township Development Pte Ltd* 50 50 Singapore Investment holdingChina World Investments Pte Ltd* 50 50 Singapore Investment holdingEM Services Pte Ltd (G) 25 25 Singapore Property managementK-REIT Asia* (Listed on 28.4.06) 41 - Singapore Real estate investment trustKeppel Bay Pte Ltd (C) 30 30 Singapore Property developmentKeppel Point Pte Ltd (C) 30 30 Singapore Property investmentKingsdale Development Pte Ltd* 50 50 Singapore Investment holdingOne Raffles Quay Pte Ltd* 33 33 Singapore Property developmentParksville Development Pte Ltd* 50 50 Singapore Property investmentSAFE Enterprises Pte Ltd (D) 25 25 Singapore Investment holdingSing-Mas Investment Pte Ltd* (D) - 30 Singapore Investment holding(Sold on 3.11.06)Singapore Suzhou Industrial Holdings Pte Ltd* (D) - 26 Singapore Investment holding(Sold on 29.9.06)Yihe Holdings Pte Ltd* 45 45 Singapore Investment holdingWuxi Cityone Development Co Ltd* (A) 50 50 China Property developmentAsia No. 1 Property Fund Ltd (See Note 6)* (E) 10 10 Guernsey Property investmentPT Pantai Indah Tateli* (A) 50 50 Indonesia Property developmentPT Pulomas Gemala Misori* (G) 25 25 Indonesia Property developmentPT Purimas Straits Resort* (G) 25 25 Indonesia Development of holiday resortPT Purosani Sri Persada* (F) 20 20 Indonesia Property investmentJernih Rezeki Sdn Bhd* (A) 49 49 Malaysia Property developmentRenown Property Holdings (M) Sdn Bhd (A) 40 40 Malaysia Property investmentTropical Garden NV* (G) 25 25 Netherlands Investment holdingAntillesSignificant subsidiary and associated companiesKeppel Land LimitedReport to Shareholders 2006223

Significant subsidiary and associated companiesNotes:1. The holding in the equity shown for each subsidiary and associated company is the proportion attributable to Keppel Land Limited. Changes in interest, if any,and subsidiary and associated companies acquired or disposed of during the year are as indicated in brackets against the companies concerned. Subsidiaries(including their subsidiaries and associated companies) and associated companies directly owned by Keppel Land Limited are included in the above list.2. Associated companies are those in which the Group has a long-term substantial equity interest and in whose commercial and financial policy decisions theGroup actively participates.3. Companies indicated with an asterisk (*) are indirectly held by Keppel Land Limited.4. All the active companies operate in their respective countries of incorporation, unless otherwise specified.5. All the companies are audited by Ernst & Young, Singapore except for the following :(A)(B)(C)(D)(E)(F)(G)(H)(I)Audited by member firms of Ernst & Young Global in the respective countriesAudited by Sycip Gorres Velayo & Co, Philippines, an associated firm of Ernst & YoungAudited by Pricewaterhouse Coopers, SingaporeAudited by KPMG, SingaporeAudited by an overseas practice of Deloitte & ToucheAudited by an overseas practice of KPMGAudited by other firms of auditorsNot required to be audited by law in the country of incorporation.Not appointed yet as company was incorporated for less than one year.6. Asia No. 1 Property Fund Ltd is equity accounted for in the consolidated financial statements not withstanding that the Group holds less than 20% of the votingpower in this company on the ground that the Group exercises significant influence by virtue of its right to appoint two directors to its board.7. In accordance with Rule 716 of The Singapore Exchange Securities Trading Limited, the Audit Committee and Board of Directors of the Company confirm thatthey are satisfied that the appointment of different auditors for certain of its subsidiaries and associated companies will not compromise the standard andeffectiveness of the audit of the Group.224Significant subsidiary and associated companiesKeppel Land LimitedReport to Shareholders 2006

Corporate informationBoard of DirectorsLim Chee OnnChairmanKevin Wong KingcheungManaging DirectorKhor Poh HwaLim Ho KeeTsui Kai ChongLee Ai MingTan Yam PinNiam Chiang MengHeng Chiang MengEdward Lee Kwong Foo(Appointed on 1 July 2006)Choo Chiau BengTeo Soon HoeAudit CommitteeTsui Kai Chong(Appointed as Chairman on 26 April 2006)Lee Ai MingHeng Chiang Meng(Appointed on 26 April 2006)Nominating CommitteeLim Ho KeeChairmanKhor Poh HwaNiam Chiang MengRemuneration CommitteeTan Yam PinChairmanLim Ho KeeTsui Kai ChongBoard Risk CommitteeHeng Chiang MengChairmanKhor Poh HwaLim Ho KeeTsui Kai ChongNiam Chiang MengBoard Safety CommitteeTan Yam PinChairmanKhor Poh HwaLee Ai MingEdward Lee Kwong FooJoint Company SecretariesChoo Chin TeckYeo Kah TiangRegistered Office230 Victoria Street #15-05Bugis Junction TowersSingapore 188024Telephone: 63388111Facsimile: 63377168Website: http://www.keppelland.com.sgAuditorsErnst & YoungCertified Public AccountantsSingaporeAudit Partner: Fang Ai Lian(With effect from year ended 31 December 2002)RegistrarKCK Corpserve Pte Ltd(Formerly known as Kon Choon Kooi Pte Ltd)47 Hill Street #06-02Chinese Chamber of Commerce & Industry BuildingSingapore 179365Telephone: 63363355Facsimile: 63372197Share ListingThe Company’s shares are listed on theSingapore Exchange Securities Trading Limited.GeneralFor further information about Keppel Land Limited,please contact the Secretariat at the Registered Office.Corporate informationKeppel Land LimitedReport to Shareholders 2006225

Calendar of financial eventsFY 2006 FY 2007Announcement of results:First quarter 26 April 2006 April 2007Interim 26 July 2006 July 2007Third quarter 25 October 2006 October 2007Total year 25 January 2007 January 2008End of financial year 31 December 2006 31 December 2007Despatch of Summary Financial Report 27 March 2007 March 2008Despatch of Annual Report 12 April 2007 April 2008Annual General Meeting 27 April 2007 April 2008Dividend Payment Date 22 May 2007 May 2008226 Calendar of financial eventsKeppel Land LimitedReport to Shareholders 2006

Corporate structure100%Keppel Land International Limited50%Asia Real EstateFund Management LimitedSingapore Projects100%Alpha Investment Partners Limited100%Straits Properties Limited100%Straits Property Investments Pte Ltd76%Ocean Properties Pte Ltd100%Mansfield Realty Limited100%Keppel Land Realty Pte Ltd100%Sherwood Development Pte Ltd100%Glenville Estate Investment Pte Ltd100%Harvestland Development Pte Ltd100%Acresvale Investment Pte Ltd100%Bukit Timah Hill Development Pte Ltd100%Evansville Investment Pte Ltd100%Tat Chuan Development Pte Ltd100%Avenue Park Development Pte Ltd100%K-REIT Asia Property Management Pte LtdKeppel Land Limited100%K-REIT Asia Management Pte Ltd1%100%K-REIT Asia Investment Pte Ltd40%K-REIT Asia100%Keppel Land (Tower D) Pte Ltd100%Boulevard Development Pte Ltd33%One Raffles Quay Pte Ltd100%Bayfront Development Pte Ltd33%BFC Development Pte Ltd100%Keppel Land Properties Pte Ltd100%Keppel Land Investment Pte Ltd100%Ocean & Capital Properties Pte Ltd100%BCH Office Investment Pte Ltd60%Devonshire Development Pte Ltd100%Aintree Assets Ltd50%Rochor Investment Ltd19.5%Bugis City Holdings Pte Ltd100%10%Asia No 1 Property Fund Ltd50%31%100%Denton Investment Pte Ltd50%Parksville Development Pte Ltd100%KeplandeHub Limited100%Keppel Digihub Holdings Limited100%Keppel Digihub Limited65%D.L. Properties Limited30%Keppel Bay Pte Ltd30%Keppel Point Pte LtdCorporate structureKeppel Land LimitedReport to Shareholders 2006227

Corporate structureKeppel Land Limited100%100%100%100%100%100%100%51%25%25%100%100%100%100%100%84%100%100%40%100%51%100%100%45%100%100%100%100%100%100%100%100%100%71%20%Silkland Investment Pte Ltd25%Flannigan Investment Pte Ltd50%Montfort Development Pte Ltd80%Meadowsville Investment Pte Ltd100%Keppel Land International Limited100%51%Le-Vision Pte Ltd51%Castlehigh Pte Ltd35%Prestige Landmark Pte Ltd30%Tropical Garden NVSafe Enterprises Pte LtdKeppel Land (Hong Kong) LtdStraits (USA) Inc100%Oil (Asia) Pte Ltd70%90%100%Saigon Centre Holdings Pte Ltd50%Fernland Investment Pte Ltd79%Palmsville Investment Pte Ltd70%Keppel Land Vietnam Properties Pte Ltd100%90%Red Vibrant Investment Ltd45%Renown Properties Holdings (M) Sdn Bhd49%High Point Development Pte Ltd100%40%Keppel Philippines Properties Inc100%Greenfield Development Pte Ltd100%Wiseland Investment Pte Ltd61%Keppel Thai Properties PCL39%Hampshire Pte Ltd74%Wisley Pte Ltd100%Pasir Panjang Realty Pte Ltd99%100%Kingsley Investment Pte Ltd100%50%Keppel Land China Holdings Pte Ltd50%99%Floraville Estate Pte Ltd100%Hillwest Pte Ltd50%Spring City Resort Pte LtdSunlake Development Pte LtdEvergro Properties LimitedP.T. Purosani Sri PersadaP.T. Pulomas Gemala MisoriP.T. Pantai Indah TateliP.T. Sentral Tunjungan PerkasaP.T. Keppel LandP. T. Kepland InvestamaP.T. Mitra Sindo SuksesP.T. Mitra Sindo MakmurP.T. Purimas Straits ResortsPembury Properties LtdErskine Holdings LtdJencity LtdSaigon Centre Investment Ltd50%Keppel Land (Saigon Centre) LtdInternational CentreQuang Ba Royal Park JV CoWillowville Pte LtdSaigon Riviera JV Co LtdTanah Suture Development Sdn BhdJernih Rezeki Sdn BhdBuena Homes IncSM-Keppel Land IncStraits Greenfield LtdWiseland Investment Myanmar LtdTop Property Co LtdMagus Bengal Developers Pvt LtdKeppel Investment (Mauritius) Pte LtdShanghai Pasir Panjang Land Co LtdBeijing Kingsley Property Development LtdMerryfield Investment Pte LtdCityone Township Development Pte LtdChina World Investments Pte LtdShanghai Floraville Land Co LtdChengdu Hillwest Development Co LtdKingsdale Development Pte Ltd80%P.T. Sentral Supel Perkasa90%Bintan Bay Resort Pte Ltd85%Straits-CM Village Hotel Pte Ltd100%PT Straits-CM Village10% Avondale Properties Ltd100%Saigon Sports City68%Keppel Land Watco l Co. Ltd60%Keppel Land Agtex Ltd40%Buena Homes (Sandoval) Inc51% Keppel Puravankara Development Pvt Ltd19%81%Tianjin Merryfield Land Co Ltd99%Shanghai Merryfield Land Co Ltd30%40%Wuxi Cityone Development Co Ltd51%Quivivet Pte Ltd10%83%Chengdu Century Development Co LtdOverseas Projects51%Straits-KMP Resort Development Pte Ltd100%P.T. Ria Bintan100%Union Charm Development Ltd1%99%Shanghai Ming Hong Property Co Ltd228 Corporate structureKeppel Land LimitedReport to Shareholders 2006

Property portfolioGroup Properties (Singapore)Description Held by % Owned Site Area Estimated Estimated Year of Tenure(sm) Building Floor Gross Lettable CompletionArea (sm) Area (sm)Completed PropertiesOcean Buildinga 29-storey office building Ocean 75.7% 6,109 50,143 39,255 1974 999-yearlocated at the Collyer Quay Properties leaseholdcorner of Raffles PlaceOcean Towersa 27-storey office tower Ocean 75.7% 2,781 # 32,881 22,990 1992 999-yearlocated in Raffles Place Properties leaseholdOne Raffles Quaytwo office towers located One 33.3% 11,367 147,770 124,435 2006 99-yearat the New Downtown Raffles Quay leaseholdat Marina BayEquity Plazaa 28-storey office building DL 64.6% 2,345 31,538 23,962 1992 99-yearlocated in Raffles Place Properties leaseholdKeppel Bay Toweran 18-storey office building HarbourFront 11.7% 17,267 41,823 36,673 2002 99-yearat HarbourFront Avenue One leaseholdHarbourFront Tower Onean 18-storey office building HarbourFront 11.7% 15,072* 40,278 34,861 2002 99-yearat HarbourFront Place Two leaseholdHarbourFront Tower Twoa 13-storey office building HarbourFront 11.7% 15,072* 19,227 14,550 2003 99-yearat HarbourFront Place Two leaseholdHeritage Courtconservation shophouses Glenville 100% 1,150 - 534 1996 99-yearlocated at Peck Seah Street Estate (retained interest) leaseholdInvestmentJoo Chiat Shophousesconservation shophouses Keppel Land 100% 784 - 1,232 1996 Freeholdlocated in the Joo Chiat area Realty (retained interest)Freesia Woodsa 129-unit condominium Keppel Land 100% 12,536 17,550 2,865 2003 Freeholddevelopment at Sunset Way Realty (retained interest)Property portfolioKeppel Land LimitedReport to Shareholders 2006229

Property portfolioGroup Properties (Singapore) (cont’d)Description Held by % Owned Site Area Estimated Estimated Year of Tenure(sm) Building Floor Gross Lettable CompletionArea (sm) Area (sm)Completed Properties (cont’d)Nassim Woodsa 35-unit luxurious Parksville 50% 5,785 9,256 8,468 1998 99-yearcondominium development Development leaseholdin the exclusiveNassim Road enclavePebble Baya 510-unit luxurious Waterfront 50% 32,300 - 244 1997 99-yearcondominium development Properties (retained interest) leaseholdat Tanjong RhuCaribbean at Keppel Baya 969-unit luxurious waterfront Keppel Bay 30% 97,494 132,780 19,561 2004 99-yearcondominium development (retained interest) leaseholdat Keppel Bay. Some 168 unitshave been kept ascorporate residencesThe Elysiaa 40-unit apartment Bukit Timah Hill 100% 1,589 4,448 1,120 2005 999-yeardevelopment at Development (retained interest) leaseholdMar Thoma RoadThe Linca 51-unit apartment Keppel Land 100% 2,369 6,605 603 2006 Freeholddevelopment at Lincoln Road Realty (retained interest)Quartz Industrial Buildinga modern 8-storey Harvestland 100% 5,657 - 3,569 1997 Freeholdindustrial building Development (retained interest)at Upper Aljunied LinkOrion Industrial Buildinga modern 8-storey Acresvale 100% 5,790 - 4,723 1997 Freeholdindustrial building Investment (retained interest)at Paya LebarKeppel Digihuba modern 6-storey Keppel Digihub 100% 7,333 18,345 12,580 1997 30-yearindustrial building atleaseholdSerangoon North Ave 5with optionfor another30 years# Part of Ocean Building site area* Comprises both HarbourFront Tower One and Two230Property portfolioKeppel Land LimitedReport to Shareholders 2006

Group Properties (Singapore) (cont’d)Description Held by % Owned Site Area Estimated Estimated Expected Tenure(sm) Building Floor Gross Lettable Year ofArea (sm) Area (sm) CompletionProperties under DevelopmentMarina Bay Financial Centre BFC 33.33% 20,505 189,000 211,736 2010 99-year(Phase 1) Development (Office and retail) leaseholdan integrated development 55,000comprising office,residential(Residential)and retail componentsCluny Hill Land16 plots of good-class bungalows Straits 100% 1,403 - - - Freeholdwith customised design Properties (retained interest)and build options (15 plots sold)Urbanaa 126-unit condominium Sherwood 100% 5,639 16,547 - 2007 Freeholddevelopment atDevelopmentRiver Valley RoadPark Infinia at Wee Nama 486-unit condominium Keppel Land 100% 21,733 61,616 - 2007 Freeholddevelopment atRealtyWee Nam / Keng Lee RoadDevonshire Road Developmenta 157-unit luxurious Devonshire 60% 7,400 20,720 - 2008 Freeholdcondominium development Developmentat Devonshire RoadThe Tresora 62-unit condominium Keppel Land 100% 7,479 10,469 - 2007 999-yeardevelopment at Duchess Road Realty leaseholdMarina at Keppel Baya marina development at Keppel Bay 30% 6,211 3,000 - 2007 99-yearKeppel Bay (Plot 5)leaseholdProperty portfolioKeppel Land LimitedReport to Shareholders 2006231

Property portfolioGroup Properties (Singapore) (cont’d)Description Held by % Owned Site Area Estimated Estimated Expected Tenure(sm) Building Floor Gross Lettable Year ofArea (sm) Area (sm) CompletionProperties under Development (cont’d)LandbankReflections at Keppel Baya 1,129-unit waterfront Keppel Bay 30% 83,591 193,400 - - 99-yearcondominium developmentleaseholdat Keppel BayKeppel Bay Plot 3a 307-unit waterfront Keppel Bay 30% 38,822 47,380 - - 99-yearcondominium developmentleaseholdat Keppel BayKeppel Bay Plot 6a 101-unit waterfront Keppel Bay 30% 43,797 21,000 - - 99-yearcondominium developmentleaseholdat Keppel BayHarbourFront Avenue (Plot 4)a 234-unit waterfront HarbourFront 11.7% 28,676 32,000 - - 99-yearcondominium development Three leaseholdat HarbourFront AvenueNaga Court Developmenta 58-unit condominium Keppel Land 100% 4,568 10,294 - - Freeholddevelopment atRealtyBukit Timah RoadThe Crest @ Cairnhilla 15-unit apartment Tat Chuan 100% 1,039 2,909 - - Freeholddevelopment at Cairnhill Circle Development232Property portfolioKeppel Land LimitedReport to Shareholders 2006

Group Properties (Overseas)Description Location Held by % Owned Site Area Estimated Estimated Year of Tenure(sm) Building Floor Gross Lettable CompletionArea (sm) Area (sm)(Commercial)/No. of Units(Residential)Completed PropertiesChinaSpring City Golf& Lake Resortan integrated resort Kunming, Spring 40% 2,884,749 2,717,134 Two 18-hole 1998 50 yearscomprising golf courses, China City Golf golf courses, leaseresort homes and a clubhouse, 1998and resort facilities Lake Resort 50 resort homes 1999 70 yearsCo (Primrose), lease83 resort homes 2001 70 years(Magnolia),lease71 resort homes 2004 70 years(Azalea I),lease32 resort homes 2006 70 years(Azalea II)lease5 luxury units 2007 70 years(Azalea I)leaseOffice Development #^office units - Shanghai, Evergro 71.4% - 635 635 2001 50 yearsNos. 901-905 and 912, China Properties leaseLevel 9, Tianshan Building,No. 30A Tian Shan Road,Changning DistrictGolf Course Development #^land for golf course Jiangyin, Jiangyin 67.8% 957,281 - - 2006 40 years/development on the China Yangtze 50 yearsnorth side of Bunjiang Road, International leaseCheng-jiang TownCountry ClubCoGolf Course Development #^land for golf course Tianjin, Tianjin 71.4% 787,405 - - 2006 40 yearsdevelopment in China Pearl Beach leaseHangu DistrictInternationalCountry ClubCoHong KongThe Waterfronta condominium Kowloon, Union 7% 16,969 147,639 1,288 2000 51 yearsdevelopment at the Hong Kong Charm residential leaseKowloon Station along Development apartmentsthe airport MTRC lineProperty portfolioKeppel Land LimitedReport to Shareholders 2006233

Property portfolioGroup Properties (Overseas) (cont’d)Description Location Held by % Owned Site Area Estimated Estimated Year of Tenure(sm) Building Floor Gross Lettable CompletionArea (sm) Area (sm)(Commercial)/No. of Units(Residential)Completed Properties (cont’d)IndonesiaClub Med Ria Bintana beachfront hotel at Bintan, PT Straits - 39% 200,000 - 302-room hotel 1997 30 yearsRia Bintan Resort Indonesia CM Village lease withoption foranother50 yearsRia Bintan (Phase 1)a 36-hole golf course Bintan, PT Ria 45.9% 1,467,000 - 36-hole 1998 30 yearsIndonesia Bintan golf course lease withwith club houseoption foranother50 yearsMelia Purosani Hotela 5-star hotel with retail Yogyakarta, PT Purosani 20% 18,189 26,398 296-room hotel 1994 20 yearsoutlets in Yogyakarta Indonesia Sri Persada lease withoption foranother20 yearsNongsa Point Marinaa waterfront resort with Batam, PT Nongsa 17% 100,000 - 192 rooms/ 1995 30 yearsa marina and hotel-style Indonesia Point Marina chalets and lease withchalets 178 berths option foranother50 yearsPasadenia Garden(Phase 1)a residential development Jakarta, PT Pulomas 25% 32,586 32,490 147 units of 1996 30 yearsin Pulomas, Indonesia Gemala strata-titled lease witha fast growing Misori condominium, option forresidential district 50 units of rental anotherin Jakarta apartments and 20 yearsa 2-storeyclubhouseWisma BCAa prime office Jakarta, PT Kepland 100% 10,444 48,267 38,093 1985 20 yearsdevelopment located Indonesia Investama lease within Jakarta CBDoption foranother20 years234Property portfolioKeppel Land LimitedReport to Shareholders 2006

Group Properties (Overseas) (cont’d)Description Location Held by % Owned Site Area Estimated Estimated Year of Tenure(sm) Building Floor Gross Lettable CompletionArea (sm) Area (sm)(Commercial)/No. of Units(Residential)Completed Properties (cont’d)Hotel Sedona Manadoa 5-star international Manado, PT Pantai 50% 243,083 - 247-room hotel 2006 30 yearsclass hotel Indonesia Indah Tateli (Phase 1 - (Phase 1) lease with143 rooms) option foranother20 yearsBG Junctiona retail/commercial Surabaya, PT Sentral 80% 25,840 154,734 41,245 2006 30 yearsdevelopment Indonesia Supel lease within Surabaya Perkasa option foranother20 yearsMalaysiaTaman Sutera, Skudaia township comprising Johor, Tanah 18% 892,676 - 1,869 2003/2005 Freeholdresidential units, Malaysia Sutera residential units,commercial space and Development 191 shop offices,recreational facilitiesand 2 commercialunitsMyanmarSedona Hotel Yangona 5-star hotel fronting Yangon, Straits 100% 31,889 53,489 334 rooms, 1997 30 yearsYangon’s famous Myanmar Greenfield 32 serviced BOT withInya Lake apartments option forandanother30 office suites three5-yearextensionsSedona Hotel Mandalayan international class hotel Mandalay, Wiseland 100% 16,467 19,835 220 rooms 1998 30 yearsopposite the famous Myanmar Investment and BOTancient Mandalay Palace (Myanmar) 27 servicedapartmentsPhilippinesSampaguita Ville12 units of linked houses Cebu, Opon Realty 20.2% 5,498 960 - 1996 FreeholdPhilippines and Devt CorpProperty portfolioKeppel Land LimitedReport to Shareholders 2006235

Property portfolioGroup Properties (Overseas) (cont’d)Description Location Held by % Owned Site Area Estimated Estimated Year of Tenure(sm) Building Floor Gross Lettable CompletionArea (sm) Area (sm)(Commercial)/No. of Units(Residential)Completed Properties (cont’d)Thailand^^Jewellery Centrea 34-storey strata titled Bangkok, Keppel Thai 45.5% 5,866 42,834 12,146 1993 Freeholdcommercial building Thailand Properties (retained interest)at Nares RoadSukhaphiban 3 Mansiona 19-storey strata-titled Bangkok, Gold Star 45.5% 4,440 70,000 119 1994 Freeholdresidential apartment Thailand Property (retained interest)at Sukhaphiban 3 RoadVietnamInternational Centrean 8-storey office Hanoi, International 43% 1,450 9,064 7,009 1995 45 yearsdevelopment at Vietnam Centre JV Co lease17 Ngo Quyen StreetRoyal Park Complexa serviced apartment Hanoi, Quang Ba 59% 28,400 23,130 155 1998 50 yearsdevelopment at Vietnam Royal Park serviced leaseQuang Ba JV Co apartmentsand 20 villasSaigon Centre (Phase 1)a 25-storey office, retail Ho Chi Keppel Land 68% 2,730 32,499 10,443 sm office, 1996 50 yearscum serviced apartment Minh City, Watco Co 3,663 sm retail, leasedevelopment at Vietnam 305 sm post office,Le Loi Boulevardand 89 servicedapartmentsPetro Vietnam Towersa 10-storey Vung Tau, Petro Tower 12.9% 6,191 17,026 12,465 1997 40 yearsoffice development Vietnam leaseUSATCB Buildinga 12-storey office building Houston, Keppel 30% 13,015 27,323 26,858 1982 Freeholdlocated in the prestigious Texas, HoustonGalleria area of Houston USA GroupPartnership^^Assets owned by Keppel Thai Properties Co Ltd in which the Group has a 45.5% stake.#^Assets owend by Evergro Properties Ltd in which the Group has 71.4% stake.236Property portfolioKeppel Land LimitedReport to Shareholders 2006

Group Properties (Overseas) (cont’d)Description Location Held by % Owned Site Area Estimated Estimated Expected Tenure(sm) Building Floor Gross Lettable Year ofArea (sm) Area (sm) Completion(Commercial)/No. of Units(Residential)Properties Under DevelopmentChinaSpring City Golf& Lake Resortan integrated resort Kunming, Spring 40% 2,157,361 - Resort homes 2010 70 yearscomprising golf courses, China City Golf and leaseresort homes andLake Resort Coresort facilities8 Park Avenuea 946-unit residential Shanghai, Shanghai 99% 33,432 133,393 946 2009/2010 70 yearsdevelopment complete China Pasir Panjang residential leasewith recreational facilities Land Co (Plot B) apartmentsPark Avenue Centrala 708-unit residential Shanghai, Shanghai 99% 28,488 99,708 708 2010/2011 70 yearsdevelopment complete China Floraville residential leasewith recreational facilities Land Co (Plot C) apartmentsVilla Rivieraa 168-unit Shanghai, Shanghai 99% 153,726 53,796 168 units 2007/2008 70 yearslanded development China Ming Hong of villas and leasein Xujing Town, Property Co landed homesQingpu DistrictThe Seasonsa 1,859-unit Beijing, Beijing 100% 71,984 264,245 1,859 2008 70 yearsresidential development China Kingsley residential leasecomplete with Property Devt Co apartmentsrecreational facilitiesThe Waterfronta 1,143-unit Chengdu, Chengdu 100% 40,906 166,285 1,143 2007 70 yearsresidential development China Hillwest residential leasecomplete with Development Co apartmentsrecreational facilitiesThe Botanicaan 8,200-unit residential Chengdu, Chengdu 44.1% 417,139 1,049,438 970 2006/2007 70 yearstownship development China Century residential units (Phase 1) leasewith integrated facilities, Development Co (Phase 1) 2007/2008 (residential)to be developed 1,476 (Phase 2) 40 yearsin phases residential units lease(Phase 2)(commercial)Property portfolioKeppel Land LimitedReport to Shareholders 2006237

Property portfolioGroup Properties (Overseas) (cont’d)Description Location Held by % Owned Site Area Estimated Estimated Expected Tenure(sm) Building Floor Gross Lettable Year ofArea (sm) Area (sm) Completion(Commercial)/No. of Units(Residential)Properties Under Development (cont’d)Mixed Development^#an integrated Jiangyin, Jiangyin 70.6% 82,987 305,786 2,161 2010 70 yearsdevelopment with China Evergro Land residential leaseresidential apartments, Co apartments, (residential)offices and retail 25,000 sm (Office) 50 yearscomponents 45,000 sm (Retail) lease(office)40 yearslease(retail)The Arcadiaa 168-unit villa Tianjin, Tianjin 100% 133,400 61,687 168 villas 2008 70 yearsdevelopment complete China Merryfield leasewith facilitiesProperty CoResidential Development #^one plot of residential Tianjin, Tianjin 71.4% 114,172 28,376 28,036 2007 70 yearsland on the west side of China Fushi Property leaseHan Bei Road,DevelopmentHangu DistrictCoResidential Development #^three plots of residential Tianjin, Tianjin 71.4% 431,756 - - - 70 yearsland on the west side of China Fushi Property leaseHan Bei Road,DevelopmentHangu DistrictCoMixed Development #^a piece of land for Tianjin, Tianjin 71.4% 666,670 - - - 40 years/mixed development China Fushi Property 70 yearsin North Island, Development leaseYingcheng Reservoir,CoYingcheng Town,Hangu DistrictMixed Development #^a piece of land for Tianjin, Tianjin 71.4% 1,000,000 - - - 40 years/mixed development China Fushi Property 70 yearsin North Island, Development leaseYingcheng Reservoir,CoYingcheng Town,Hangu District238Property portfolioKeppel Land LimitedReport to Shareholders 2006

Group Properties (Overseas) (cont’d)Description Location Held by % Owned Site Area Estimated Estimated Expected Tenure(sm) Building Floor Gross Lettable Year ofArea (sm) Area (sm) Completion(Commercial)/No. of Units(Residential)Properties Under Development (cont’d)Township Developmenta 4,700-unit residential Wuxi, CityOne 49.7% 352,534 670,460 1,498 2009 70 yearstownship development China Development residential (Phase 1) leasewith integrated facilities, (Wuxi) Co units (residential)to be developed in phases (Phase 1) 40 yearslease(commercial)50 yearslease(others)Residential Development #^two plots of land for Changzhou, Changzhou 71.4% 46,108 84,780 83,210 2008 70 yearsresidential development, China Fushi Housing leaseon the north side ofDevelopmentDong Fang Avenue,Qi-shu-yan EconomicDevelopment Zone,Lu-cheng Town,Qi-shu-yan DistrictIndiaElita Promenadea 1,573-unit high-rise Bangalore, Keppel 51% 96,618 236,656 1,573 2009 Freeholdcondominium India Puravankara residentialdevelopment in Development apartmentsJP Nagar DistrictElita Horizona 1,060-unit mid-rise Bangalore, Keppel 51% 71,920 155,077 1,060 2010 Freeholdcondominium India Puravankara residentialdevelopment off Development apartmentsKanakapura RoadResidential Development Kolkata, Magus 74% 99,978 206,490 1,376 2011 Freeholda 1,376-unit mid-rise India Bengal residentialcondominium development Developers apartmentswithin Rajarhat TownshipProperty portfolioKeppel Land LimitedReport to Shareholders 2006239

Property portfolioGroup Properties (Overseas) (cont’d)Description Location Held by % Owned Site Area Estimated Estimated Expected Tenure(sm) Building Floor Gross Lettable Year ofArea (sm) Area (sm) Completion(Commercial)/No. of Units(Residential)Properties Under Development (cont’d)IndonesiaRia Bintan Resort(Phase 2 onwards)an integrated resort Bintan, PT 45.9% 2,803,000 - Resort homes ** 30 yearswith golf courses, Indonesia Ria-Bintan (Phase 2a) lease witha Club Med Villageoption forand resort homesanother50 yearsPasadenia Garden(Phase 2)a residential development Jakarta, PT Pulomas 25% 47,454 - Residential ** 30 yearsin the Pulomas district Indonesia Gemala units lease withMisorioption foranother20 yearsJakarta Garden Citya 7,000-unit Jakarta, PT Mitra 51% 2,700,000 - 7,000 2008 30 yearsresidential township Indonesia Sindo Sukses residential (Phase 1) lease within Cakung, East Jakarta (Site A - Southern) units option forPT Mitra Sindo Makmur (Phase 1 - another(Site B - Northern) 1,100 units) 20 yearsGalleria Tunjungana retail/commercial Surabaya, PT Sentral 80% 23,768 - ** ** 30 yearscomplex in Surabaya Indonesia Tunjungan lease withPerkasaoption foranother20 yearsTanah Lot Resortan integrated resort Bali, PT 26% 910,020 - Resort ** 30 yearsincorporating Indonesia Purimas bungalows lease withresort bungalows, Straits Resort (Phase 1) option forspa village andanotherrecreational facilities20 years240 Property portfolioKeppel Land LimitedReport to Shareholders 2006

Group Properties (Overseas) (cont’d)Description Location Held by % Owned Site Area Estimated Estimated Expected Tenure(sm) Building Floor Gross Lettable Year ofArea (sm) Area (sm) Completion(Commercial)/No. of Units(Residential)Properties Under Development (cont’d)MalaysiaTaman Sutera, Skudaia township comprising Johor, Tanah 18% 3,974,912 ## - 120 residential 2007/2008 Freeholdresidential units, Malaysia Sutera (82,716 units and 2commercial space Development currently under commercial unitsand recreational facilities development) currently underdevelopmentPhilippinesSM-KL Towers, Ortigastwo 55-storey office Manila, SM 24.2% 20,000 13,630 10,238 1985 Freeholdtowers and a 70-storey Philippines Keppel Land (Benguet (Benguet (Benguetresidential tower, Centre) Centre) Centre)interlinked by a 5-storey retail 26,767 18,518 2001podium called The Podium. (Phase 1- (Phase 1- (Phase 1-To be developed in phases. The Podium) The Podium) The Podium)Vacant landat Carajay Road Cebu, Opon 20.2% 7,838 - - - FreeholdPhilippines Realty andDevelopmentCorpPalmdale Heightsa 29-block residential Pasig City, Buena 30.9% 76,156 229,416 174,653 2004 Freeholddevelopment with Philippines Homes (Residential) (Residential) (Phases 1 & 24,000 apartment units, (Sandoval) 5,749 3,031 comprising 63 parking buildings and (Commercial) (Commercial) residential blocks2 commercial buildings 19,137 820 lots and facilities)(Parking) (Parking)Metro North Townshipan option with San Jose Swansville 46.1% 6,000,000 ** ** ** FreeholdAraneta Properties del Monte, Investmentto jointly develop a Bulacan (Philippines)residential township (north ofon a 600-ha site. To be Ortigas CBD),developed in phases. PhilippinesThailand^^Vacant Landfor residential Chonburi, Keppel 45.5% 355,996 - - - Freeholddevelopment at Highway Thailand Thai332 in Sattahip PropertiesProperty portfolioKeppel Land LimitedReport to Shareholders 2006241

Property portfolioGroup Properties (Overseas) (cont’d)Description Location Held by % Owned Site Area Estimated Estimated Expected Tenure(sm) Building Floor Gross Lettable Year ofArea (sm) Area (sm) Completion(Commercial)/No. of Units(Residential)Properties Under Development (cont’d)Villa Arcadia at Srinakarina 367-unit detached Bangkok, Thai-Kami 45.5% 159,706 - 367 2009 Freeholdhousing development Thailand detachedoff Srinakarin RoadhousesVilla Arcadia at Watcharapola 270-unit detached Bangkok, TOP 66.7% *^ 124,912 - 270 2009 Freeholdhousing development Thailand Property detachedat Watcharapol RoadhousesVietnamSaigon Centre(Phase 2 onwards)a 25-storey office, Ho Chi Keppel Land 68% 2,886 - 212 units of 2008 50 yearsretail cum Minh City, Watco Co (Phase 2) serviced (Phase 2) leaseserviced apartment Vietnam 14,090 apartments withdevelopment at (Subsequent retail podiumLe Loi Boulevard phases) (Phase 2)Tamarind Parka 20-storey Ho Chi Keppel Land 60% 2,808 - 173 2010 45 yearsapartment tower Minh City, Agtex apartment leasewith swimming pool Vietnam unitsand recreational facilitieslocated in prime District 1Saigon Sports Citya 3,000-unit residential Ho Chi Saigon 90% 640,476 - 740 2010 50 yearstownship with Minh City, Sports City apartment (Phase 1) leasequality housing, Vietnam unitscommercial complexes (Phase 1)and public sports facilitiesThe Estellaa 1,500 to 1,600-unit Ho Chi Estella 55% 47,906 - 750 2010 50 yearsapartment development Minh City, Joint apartment (Phase 1) leasein prime An Phu Ward Vietnam Venture unitsin District 2 Co (Phase 1)##Including land to be developed in later stages^^Assets owned by Keppel Thai Properties Co Ltd (KTP) in which the Group has a 45.5% stake**Plans are under review in accordance to market conditions*^Keppel Land owns a 39% direct stake in Top Property Co Ltd as well as a 45.5% stake in KTP which also has a 61% stake in Top Property Co Ltd^#Keppel Land owns a 39% direct stake in Jiangyin Evergro Properties Co Ltd (JEP) as well as a 71.4% stake in Evergro Properties Ltd which also has a 44.3%stake in JEP#^Assets owned by Evergro Properties Ltd in which the Group has a 71.4% stake242Property portfolioKeppel Land LimitedReport to Shareholders 2006

Statistics of shareholdingsAs at 1 March 2007Number of issued shares : 719,344,581Class of shares : Ordinary shares with equal voting rightsNumber ofNumber ofSize of Shareholdings Shareholders % Shares %1 - 999 831 12.81 257,031 0.031,000 - 10,000 5,025 77.48 14,938,182 2.0810,001- 1,000,000 617 9.51 29,056,033 4.041,000,001 and above 13 0.20 675,093,335 93.85Total 6,486 100.00 719,344,581 100.00Number ofNumber ofLocation of Shareholdings Shareholders % Shares %Singapore 5,818 89.70 715,258,750 99.43Malaysia 500 7.71 3,007,736 0.42Others 168 2.59 1,078,095 0.15Total 6,486 100.00 719,344,581 100.00Statistics of shareholdingsKeppel Land LimitedReport to Shareholders 2006243

Statistics of shareholdingsTwenty Largest ShareholdersNumber of Shares %1. Keppel Corporation Limited 379,697,733 52.782. DBS Nominees Pte Ltd 76,908,047 10.693. Citibank Nominees Singapore Pte Ltd 62,670,111 8.714. HSBC (Singapore) Nominees Pte Ltd 48,488,333 6.745. DBSN Services Pte Ltd 45,041,912 6.266. United Overseas Bank Nominees Pte Ltd 22,444,003 3.127. Raffles Nominees Pte Ltd 18,182,120 2.538. DB Nominees (S) Pte Ltd 7,836,941 1.099. Morgan Stanley Asia (Singapore) Sec. Pte Ltd 7,795,571 1.0810. Selat Pte Limited 1,691,972 0.2411. Merrill Lynch (Singapore) Pte Ltd 1,678,436 0.2312. OCBC Nominees Singapore Pte Ltd 1,548,156 0.2213. Bank of China Nominees Pte Ltd 1,110,000 0.1514. BNP Paribas Nominees Singapore Pte Ltd 955,000 0.1315. Island Investment Company Pte Ltd 904,718 0.1316. Hong Leong Finance Nominees Pte Ltd 843,000 0.1217. The Asia Life Assurance Society Ltd - Par Fund 791,000 0.1118. Singapore Engineers Pte Ltd 790,725 0.1119. Royal Bank of Canada (Asia) Ltd 748,000 0.1020. Lee Foundation 593,247 0.08Total 680,719,025 94.62Substantial ShareholdingsNumber of Shares %1. Temasek Holdings (Pte) Ltd (Deemed interest) 383,605,733 53.332. Keppel Corporation Limited (Including holdings by subsidiary companies) 379,697,733 52.78Temasek Holdings (Pte) Ltd holds 21.92% in the share capital of Keppel Corporation Limited, and is deemed to be interested inthe shares of Keppel Land Limited held by Keppel Corporation Limited.Approximately 46% of the issued shares of Keppel Land Limited are held by the public. Accordingly, Rule 723 of the ListingManual of the Singapore Exchange Securities Trading Limited has been complied with.244Statistics of shareholdingsKeppel Land LimitedReport to Shareholders 2006

Notice of annual general meeting andclosure of booksKeppel Land LimitedCo. Reg No: 189000001G(Incorporated in the Republic of Singapore)ALL MEMBERS ARE CORDIALLY INVITED to attend the Annual General Meeting of the Company which will be held atInterContinental Singapore, Ballrooms 1 & 2 (Level 2), 80 Middle Road, Singapore 188966 on Friday, 27 April 2007 at 10.30 a.m.to transact the following businesses:AS ORDINARY BUSINESS1. To receive and, if thought fit, adopt the Directors’ Report and Accounts for the year ended 31 December 2006.(Resolution 1)2. To declare the final dividend as recommended by the Directors for the year ended 31 December 2006(2005: $35,962,000). (Resolution 2)3. To re-elect the following Directors who are retiring in accordance with the Articles of Association of the Companyand who have offered themselves for re-election:Mr Kevin Wong Kingcheung (see Note 2) (Resolution 3)Mr Khor Poh Hwa (see Notes 2 and 3) (Resolution 4)Mr Niam Chiang Meng (see Notes 2 and 3) (Resolution 5)Mr Edward Lee Kwong Foo (see Notes 2 and 3) (Resolution 6)4. To approve Directors’ fees of $637,000 for the year ended 31 December 2006 (2005: $610,000). (Resolution 7)5. To re-appoint Messrs Ernst & Young as Auditors, and to authorise the Directors to fix their remuneration. (Resolution 8)AS SPECIAL BUSINESS6. To consider and, if thought fit, approve with or without modification, the following Ordinary Resolutions:6.1 That pursuant to Section 161 of the Companies Act, Cap. 50 of Singapore and Article 8(B) of the Company’s Articles ofAssociation, authority be and is hereby given to the Directors of the Company to:(a) (i) issue shares in the capital of the Company (“Shares”) whether by way of right, bonus or otherwise, andincluding any capitalisation pursuant to Article 136 of the Company’s Articles of Association of any sum for thetime being standing to the credit of any of the Company’s reserve accounts or any sum standing to the creditof the profit and loss account or otherwise available for distribution; and/or(ii)make or grant offers, agreements or options that might or would require Shares to be issued (including butnot limited to the creation and issue of warrants, debentures or other instruments convertible into Shares)(collectively “Instruments”),at any time and upon such terms and conditions and for such purposes and to such persons as the Directors may intheir absolute discretion deem fit; andNotice of annual general meeting and closure of booksKeppel Land LimitedReport to Shareholders 2006245

Notice of annual general meeting and closure of books(b)(notwithstanding that the authority so conferred by this Resolution may have ceased to be in force) issue Shares inpursuance of any Instrument made or granted by the Directors while the authority was in force, provided that:(i)(ii)the aggregate number of Shares to be issued pursuant to this Resolution (including Shares to be issued inpursuance of Instruments made or granted pursuant thereto and any adjustments effected under anyrelevant Instrument) does not exceed 50% of the issued share capital of the Company (as calculated inaccordance with sub-paragraph (ii) below), of which the aggregate number of Shares to be issued other thanon a pro rata basis to shareholders of the Company (including Shares to be issued in pursuance ofInstruments made or granted pursuant to this Resolution and any adjustments effected under any relevantInstrument) does not exceed 20% of the issued share capital of the Company (as calculated in accordancewith sub-paragraph (ii) below);for the purpose of determining the aggregate number of Shares that may be issued under sub-paragraph (i)above, the percentage of issued share capital shall be calculated based on the issued share capital of theCompany as at the date of the passing of this Resolution after adjusting for:(aa)(bb)(cc)new Shares arising from the conversion or exercise of convertible securities;new Shares arising from exercising share options or vesting of share awards outstanding orsubsisting as at the date of the passing of this Resolution approving the mandate, provided theoptions or awards were granted in compliance with the rules and regulations of the SingaporeExchange Securities Trading Limited (the “SGX-ST”); andany subsequent consolidation or sub-division of Shares;(c)(d)in exercising the power to make or grant Instruments (including the making of any adjustments under the relevantInstrument), the Company shall comply with the provisions of the Listing Manual of the SGX-ST for the time beingin force (unless such compliance has been waived by the SGX-ST) and the Articles of Association for the time beingof the Company; andthe authority conferred by this Resolution shall, unless revoked or varied by the Company in general meeting,continue in force until the conclusion of the next Annual General Meeting or the expiration of the period withinwhich the next Annual General Meeting of the Company is required by law to be held, whichever is the earlier (seeNote 4). (Resolution 9)6.2 (1) That for the purposes of the Companies Act, Cap. 50 of Singapore (the “Companies Act”), the exercise by theDirectors of the Company of all the powers of the Company to purchase or otherwise acquire issued ordinaryshares fully paid in the capital of the Company (the “Shares”) not exceeding in aggregate the Maximum Limit (ashereafter defined), at such price(s) as may be determined by the Directors of the Company from time to time up tothe Maximum Price (as hereafter defined), whether by way of:(a)(b)market purchase(s) (each a “Market Purchase”) on the SGX-ST; and/oroff-market purchase(s) (each an “Off-Market Purchase”) in accordance with any equal access scheme(s) asmay be determined or formulated by the Directors as they consider fit, which scheme(s) shall satisfy all theconditions prescribed by the Companies Act;and otherwise in accordance with all other laws and regulations, including but not limited to, the provisions of theCompanies Act and listing rules of the SGX-ST as may for the time being be applicable, be and is hereby authorisedand approved generally and unconditionally (the “Share Purchase Mandate”);246Notice of annual general meeting and closure of booksKeppel Land LimitedReport to Shareholders 2006

(2) unless varied or revoked by the members of the Company in a general meeting, the authority conferred on theDirectors of the Company pursuant to the Share Purchase Mandate may be exercised by the Directors of theCompany at any time and from time to time during the period commencing from the date of the passing of thisOrdinary Resolution and expiring on the earlier of:(a)(b)the date on which the next annual general meeting of the Company (“AGM”) is held or required by law to be held; orthe date on which the purchases or acquisitions of Shares by the Company pursuant to the Share PurchaseMandate are carried out to the full extent mandated,whichever is the earlier;(3) in this Ordinary Resolution:“Maximum Limit” means that number of issued Shares representing 10% of the total number of Shares of theCompany as at the date of the last AGM or at the date of the passing of this Ordinary Resolution, whichever ishigher, unless the Company has effected a reduction of the share capital of the Company in accordance with theapplicable provisions of the Companies Act, at any time during the Relevant Period, in which event the total numberof Shares of the Company shall be taken to be the total number of Shares of the Company as altered (excluding anytreasury shares that may be held by the Company from time to time);“Relevant Period” means the period commencing from the date on which the last AGM was held and expiring onthe date the next AGM is held or is required by law to be held, whichever is the earlier, after the date of thisOrdinary Resolution; and“Maximum Price”, in relation to a Share to be purchased or acquired, means the purchase price (excludingbrokerage, stamp duties, commission, applicable goods and services tax and other related expenses) which shallnot exceed:(a)(b)in the case of a Market Purchase, 105% of the Average Closing Price; andin the case of an Off-Market Purchase pursuant to an equal access scheme, 120% of the Average Closing Price,where:“Average Closing Price” means the average of the closing market prices of the Shares over the last five MarketDays, on which transactions in the Shares were recorded, in the case of Market Purchases, before the day onwhich the purchase or acquisition of Shares was made and deemed to be adjusted for any corporate action thatoccurs after the relevant five Market Days or in the case of Off-Market Purchases, before the date on which theCompany makes an announcement of the offer; and(4) the Directors of the Company and/or any of them be and are hereby authorised to complete and do all such actsand things (including executing such documents as may be required) as they and/or he may consider necessary,expedient, incidental or in the interests of the Company to give effect to the transactions contemplated and/orauthorised by this Ordinary Resolution (see Note 5). (Resolution 10)6.3 (1) That approval be and is hereby given for the purposes of Chapter 9 of the Listing Manual of the SGX-ST, for theCompany, its subsidiaries and target associated companies or any of them to enter into any of the transactionsfalling within the types of Interested Person Transactions, particulars of which are set out in the Company’s Circularto Shareholders dated 27 March 2007 (the “Circular”), with any party who is of the class of Interested Personsdescribed in the Circular, provided that such transactions are made on normal commercial terms and will not beprejudicial to the interests of the Company and its minority shareholders and in accordance with the reviewprocedures set out in the Circular (the “IPT Mandate”);Notice of annual general meeting and closure of booksKeppel Land LimitedReport to Shareholders 2006247

Notice of annual general meeting and closure of books(2) the IPT Mandate shall, unless revoked or varied by the Company in general meeting, continue in force until the datethat the next Annual General Meeting of the Company is held or is required by law to be held, whichever is earlier;(3) the Audit Committee of the Company be and is hereby authorised to take such action as it deems proper in respectof such procedures and/or to modify or implement such procedures as may be necessary to take into considerationany amendment to Chapter 9 of the Listing Manual which may be prescribed by the SGX-ST from time to time; and(4) the Directors of the Company be and are hereby authorised to complete and do all such acts and things (includingexecuting all such documents as may be required) as they may consider expedient or necessary or in the interest ofthe Company to give effect to this Resolution (see Note 6). (Resolution 11)7. To transact other business which can be transacted at the Annual General Meeting of the Company.The Company had on 25 January 2007 advised that the Register of Members of the Company will be closed from 9 May 2007 to10 May 2007 (both dates inclusive) for the preparation of dividend warrants. Duly completed transfers received by theCompany’s registrar, KCK Corpserve Pte Ltd (formerly known as Kon Choon Kooi Pte Ltd) at 47 Hill Street #06-02, SingaporeChinese Chamber of Commerce & Industry Building, Singapore 179365 up to the close of business at 5:00 p.m. on 8 May 2007will be registered before entitlements to the proposed dividend for the year ended 31 December 2006 are determined.Directors have recommended a final dividend of 6 cents per share amounting to $43.2 million on the existing capital(2005: 5 cents per share or $35.9 million) in respect of the financial year ended 31 December 2006 for approval by Members atthe Annual General Meeting to be held on 27 April 2007. The final dividend, if approved, will be payable on 22 May 2007.By Order of the BoardChoo Chin TeckJoint Company SecretariesYeo Kah TiangSingapore, 27 March 2007Notes:1. A Member is entitled to appoint one proxy or two proxies to attend and vote in his place. A proxy need not also be a Member of the Company. A Memberwhich is a corporation is entitled to appoint its authorised representative or proxy to vote on its behalf. Members wishing to vote by proxy at the Meeting mayuse the Proxy Form enclosed. To be valid, the completed Proxy Form must be lodged at the Registered Office of the Company at 230 Victoria Street #15-05,Bugis Junction Towers,Singapore 188024 not less than 48 hours before the Meeting.2. Detailed information on the Directors can be found in the Board of Directors, and Profile of Directors and Senior Management sections of the Company’sAnnual Report for the financial year ended 31 December 2006.3. Messrs Khor Poh Hwa, Niam Chiang Meng and Edward Lee Kwong Foo are considered independent Directors pursuant to Rule 704(8) of the Listing Manual ofthe SGX-ST.4. Ordinary Resolution No. 9 is to empower the Directors from the date of the Annual General Meeting until the date of the next Annual General Meeting to issuefurther Shares and Instruments in the Company, including a bonus or rights issue. The maximum number of Shares which the Directors may issue under thisResolution shall not exceed the quantum set out in the Resolution.5. Ordinary Resolutioin No. 10 relates to the renewal of a mandate first approved by Members on 5 October 1999 authorising the Company to purchase its ownshares subject to and in accordance with the guidelines set out in the Circular to Members dated 14 September 1999, the Singapore Companies Act, Cap. 50and the rules of the SGX-ST. Please refer to Appendix A of the Circular to Shareholders dated 27 March 2007 for details.6. Ordinary Resolution No. 11 relates to the renewal of a mandate first given by Members to the Company on 25 June 1997 allowing the Company and its relatedcorporations to enter into transactions with interested persons as defined in Chapter 9 of the Listing Manual of the SGX-ST, details of which are set out in theCircular to Shareholders dated 27 March 2007.248 Notice of annual general meeting and closure of booksKeppel Land LimitedReport to Shareholders 2006

Share transaction statisticsComparative Price TrendsKeppel Land Straits Times Index SGX All-S Equities PropClosing Normalised Closing Normalised Closing NormalisedMonth End Price (S$) Values Index Values Index ValuesJan 06 3.80 100.00 2412 100.00 764 100.00Feb 06 4.42 116.32 2482 102.90 800 104.71Mar 06 4.94 130.00 2533 105.02 917 120.03Apr 06 4.74 124.74 2610 108.21 900 117.80May 06 4.04 106.32 2383 98.80 799 104.58Jun 06 4.04 106.32 2435 100.95 813 106.41Jul 06 3.92 103.16 2445 101.37 789 103.27Aug 06 4.44 116.84 2482 102.90 883 115.58Sep 06 4.96 130.53 2569 106.51 953 124.74Oct 06 5.50 144.74 2702 112.02 1030 134.82Nov 06 6.60 173.68 2838 117.66 1146 150.00Dec 06 6.90 181.58 2986 123.80 1187 155.37Jan 07 7.50 197.37 3125 129.56 1295 169.50Normalised Values2202102001901801701601501401301201101009080JanFeb Mar Apr May Jun Jul Aug Sep Oct Nov Dec JanKeppel Land Straits Times Index SGX All-S Equities PropKeppel Land’s share price appreciated 82% during the year. It started at $3.80 in January and closed at $6.90 in December. Theshare price crossed the $4 level in February and consistently outperformed the Straits Times Index and the SGX All-SingaporeEquities Properties Index during the year.Besides striving for more value creating businesses, the Group will also continue to direct efforts towards maintaining highstandard of corporate governance and transparency.Share transaction statisticsKeppel Land LimitedReport to Shareholders 2006249

Share transaction statisticsShare Prices and Turnover16014012010080604020Share Prices (S$)8765432102002 2003 2004 2005 2006Turnover High and Low Prices02007Straits Times and Straits Times Properties IndicesIndex35003000250020001500100050002002 2003 2004 2005 2006 2007Straits Times IndexStraits Times Properties IndexInvestor Data2002 2003 2004 2005 2006Earnings per share (cents) (Note 1) 3.7 14.2 18.7 21.8 27.9Dividend per share (cents) (Note 2) 3.5 4 5 5 6Special dividend in specie (gross equivalent) - - - - 44Share price (cents) (Note 3)Highest 234 192 226 428 710Lowest 93 96 147 224 360Average 163 139 184 300 486Last done 97 158 225 366 690Turnover (million shares) 379.9 534.5 41.4 560.2 694.7Dividend yield (%) (Note 4) 2.1 2.9 2.7 1.7 1.2Net price-earnings ratio (Note 4) 44.1 9.8 9.8 13.8 17.4Net tangible assets per share ($) 2.09 2.09 2.26 2.35 2.21Notes1 Earnings represent Group attributable profits.2 For 2002, 2003 and 2004, these are gross dividends declared out of taxed profits. For 2005 and 2006, these are tax exempt.3 Share prices reflect transactions recorded on the Singapore Exchange Securities Trading Limited.4 In calculating dividend yields and net price-earnings ratios, the average share prices have been used. If the special dividend in specie is included, dividend yieldfor 2006 will be 10.3%.250 Share transaction statisticsKeppel Land LimitedReport to Shareholders 2006

Fold and glue along dotted lineProxy formIMPORTANT:Keppel Land LimitedCo Reg No: 189000001G(Incorporated in the Republic of Singapore)ANNUAL GENERAL MEETING1. This Report is also forwarded to investors who have used their CPFmonies to buy shares in the Company at the request of their CPFApproved Nominees, and is sent solely for their information only.2. The Proxy Form is, therefore, not valid for use by CPF Investors andshall be ineffective for all intents and purposes if used or purported tobe used by them.I / We(name)ofbeing (a) Member(s) of Keppel Land Limited (the “Company”), hereby appoint:(address)NameAddressNRIC/Passport NumberProportion ofShareholdingsNo. of Shares %and/or (delete as appropriate)NameAddressNRIC/Passport NumberProportion ofShareholdingsNo. of Shares %Fold and glue along dotted lineas my / our proxy / proxies to vote on my / our behalf at the Annual General Meeting of the Company to be held on 27th day ofApril 2007 at 10.30 a.m. I / We direct my / our proxy / proxies to vote (see Note 4) for or against the Resolutions to be proposed at theMeeting as hereunder indicated.No.Resolutions1. To receive and adopt the Directors’ Report and Accounts for the year ended31 December 20062. To declare the final dividend as recommended by Directors for the year ended31 December 2006 (2005: $35,962,000)3. To re-elect Mr Kevin Wong Kingcheung as Director4. To re-elect Mr Khor Poh Hwa as Director5. To re-elect Mr Niam Chiang Meng as Director6. To re-elect Mr Edward Lee Kwong Foo as Director7. To approve Directors’ fees of $637,000 for 2006 (2005: $610,000)8. To re-appoint Messrs Ernst & Young as Auditors, and to authorise the Directorsto fix their remuneration9. To approve the Ordinary Resolution pursuant to Section 161 of the CompaniesAct, Cap. 5010. To approve Ordinary Resolution pursuant to Share Purchase MandateTo be Used ona Show of HandsFor*Against*To be Used in theEvent of a PollNumberof Votesfor**Numberof Votesagainst**11. To approve Ordinary Resolution pursuant to IPT Mandate* Please indicate your vote “For” or “Against” with an “X” within the box provided.** If you wish to exercise all your votes “For” or “Against”, please indicate with an “X” within the box provided. Alternatively, please indicate the number ofvotes as appropriate.Dated this _________ day of __________________2007Total Number ofShares Held__________________________________________Signature(s) or Common Seal of Member(s)IMPORTANT: Please read the notes overleaf before completing this Proxy FormFold and glue along dotted line

Notes:1. Every Member of the Company is entitled to appoint one proxy or two proxies (or an authorised representative in the case of acorporation) to attend the Meeting and vote on his behalf. Where a Member appoints two proxies, the appointments shall be invalidunless he specifies the proportion of his shareholding (expressed as percentage of the whole) to be represented by each proxy. A proxyneed not be a Member of the Company.2. A Member should insert the total number of shares held. If the Member has shares entered against his name in the Depository Register(as defined in Section 130A of the Companies Act, Cap. 50), he should insert that number of shares. If the Member has sharesregistered in his name in the Register of Members of the Company, he should insert that number of shares. If the Member has sharesentered against his name in the Depository Register and registered in his name in the Register of Members, he should insert theaggregate number of shares. If no number is inserted, this Proxy Form will be deemed to relate to all the shares held by the Member.3. The Proxy Form must be signed by the appointer or his attorney duly authorised in writing or, if the Member is a corporation, must beexecuted under its common seal or the hand of its attorney duly authorised in writing. The power of attorney or a duly certified copythereof must be deposited at the Company’s Registered Office within the period stated below. In the case of joint Members, all jointMembers must sign the Proxy Form.Fold along this line (1)AffixPostageStampThe Company SecretaryKeppel Land Limited230 Victoria Street #15-05Bugis Junction TowersSingapore 188024Fold along this line (2)4. Please indicate with an “X” in the appropriate box against each Resolution how you wish your proxy / proxies to vote. If this Proxy Formis returned without any indication as to how the proxy / proxies shall vote, the proxy / proxies will vote or abstain as he / they think(s) fit.5. To be effective, the Proxy Form must be completed and deposited at the Registered Office of the Company, at 230 Victoria Street#15-05, Bugis Junction Towers, Singapore 188024, not less than 48 hours before the Meeting or adjourned meeting.6. The Company shall be entitled to reject a Proxy Form which is incomplete, improperly completed, illegible or where the true intentionsof the appointer are not ascertainable from the instructions of the appointer specified on the Proxy Form. In addition, in the case ofshares entered in the Depository Register, the Company may reject a Proxy Form if the Member, being the appointer, is not shown tohave shares entered against his name in the Depository Register as at 48 hours before the time appointed for holding the Meeting,as certified by The Central Depository (Pte) Limited to the Company.

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