Directors - Boustead Holdings Berhad

Affin Moneybrokers reported a profit of RM1.6 million while Affin
Securities was able to capitalise on a resurgent Bursa Malaysia to
record a higher profit of RM2.4 million. Affin Insurance Brokers
recorded a profit of RM215,000 despite a drop in net brokerage income
and net interest income.
AXA AFFIN Life Insurance Berhad, a joint venture between AXA Asia
Pacific Holdings Ltd and Affin Holdings Berhad commenced operations
of its life insurance business activity in the second half of 2006,
following the successful acquisition of the life insurance business of
Tahan Malaysia Berhad. AXA Affin General Insurance Berhad recorded a
pre-tax profit of RM42.5 million due to higher earned premium and
investment income.
Royal & Sun Alliance Insurance (M) Berhad closed the year with a
pre-tax profit of RM49 million. Gross premium grew by 25% to RM278
million, and investment profit improved by 13%. In addition, operating
ratios were capped at 85% and solvency margins remained strong at
215%.
Perimekar Sdn Bhd, an associate company of the Group engaged in the
marketing, upgrading, maintenance and related services for the Malaysian
maritime defence industry, contributed positively to our earnings due to a
strong revenue stream derived from contract billings. While Boustead
Credit Sdn Bhd remained profitable due to strict credit control policies
designed to keep doubtful debts at manageable levels.
The Group raised its stake in Boustead Naval Shipyard Sdn Bhd
(BNS) from 31% to 41% at the end of December 2006. Since our
takeover in 2005, BNS successfully handed over the first two patrol
vessels to Tentera Laut DiRaja Malaysia in 2006. Delivery for the
remaining four new generation patrol vessels is scheduled in three
years.
52