UEM Sunrise : Latest Report

ABOUT THIS REPORT

SUSTAINABILITY

In 2022, UEM Sunrise produced a Sustainability Statement in line with our progress to aligning our reporting practices more closely with Integrated Reporting. Thus, while there are specific sections with disclosures about our economic, environmental and social initiatives, narratives of these elements

FORWARD-LOOKING STATEMENTS

Throughout the Integrated Report, we use forward-looking statements that relate to the plans, goals, strategies and future operations and performance of our organisation. These statements are not guarantees of future performance, as they involve risks and assumptions in the context of potential scenarios. While we endeavour to progress with our strategies

In mitigating the impact brought on by the pandemic, UEM Sunrise Berhad (UEM Sunrise or the Company) has intensified its digital-first approach through seamless

COVER RATIONALE

STRONGER TOGETHER

will also be embedded throughout the Integrated Report. This year, you will find the following sustainability content in these sections.

•	Our Approach to Sustainability	pages 4 to 5
•	Sustainability Statement	pages 130	to 173
•	Our Material Matters	pages 74 to 77
•	Sustainability Governance	pages 136	to 137
		and 209

and plans, changes in macroeconomic and operating landscapes may require us to adapt to follow suit.

UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS (UN SDG)

As part of UEM Sunrise's strategy, we have prioritised

the following SDG to ensure our business is environmentally, socially and economically sustainable:

and elevated customer experiences. Virtual tours, a revamped and optimised website with live chat and chatbot as well as the hUb Prop mobile application are among the tools and initiatives introduced as

At UEM Sunrise, we believe in the power of unity and collaboration, which is reflected in the theme of 'Stronger Together' as we take firm and proactive action to future-proof our products and achieve greater efficacy.

We recognise the importance of strengthening our fundamentals and putting in place the relevant building blocks to rebuild stronger and drive competitiveness. By doing so, we are paving the way towards becoming a balanced real estate player that is resilient, agile and sustainable.

As a leading property developer, we remain in tune with the needs

of our customers. We strive to deliver excellence and value in all that we do, and we understand that we cannot do this alone. It is only through

FEEDBACK

We value your feedback as we continuously strive to improve our reporting. For feedback and enquiries regarding our reporting suite and information contained within, please contact our Investor Relations team at: [e-mail]

NAVIGATION ICONS

United Nations Sustainable Development Goals Adopted

For more information on our Sustainable Development Goals (SDG), please visit our website uemsunrise.com/sustainability

adaptable solutions in keeping with customers' needs during the current operating environment.

collaboration with our customers, partners, and stakeholders that we can achieve our goals and aspirations.

Together, we can create a better future for ourselves and the communities we serve by working hand-in-hand, where we can all thrive and prosper. Stronger together, we can overcome any challenges and achieve greatness.

Our Capital

1. Financial Capital

1. Manufactured Capital

Material Matters

M1 Customer

Management

M2 Economic Presence

M3	Ethical Business

M14	Indirect Economic
Impacts
M15	Water and Effluents

M16 Biodiversity

Our Strategic Thrust

Triage Sustain

SCOPE AND BOUNDARIES

This Integrated Report describes our financial and non- financial performances during the period from 1 January 2022 to 31 December 2022. It covers all aspects of UEM Sunrise's businesses in Malaysia, particularly in the Central and Southern regions and internationally, namely Australia and South Africa. Apart from reporting on performance, the report considers challenges to the business, and opportunities and risks that could impact our value creation process.

MATERIALITY

The principle of materiality is applied in assessing what information is to be included in our Integrated Report. This report focuses particularly on those issues, opportunities and challenges that may materially impact UEM Sunrise and our ability to be a sustainable business that consistently delivers value to our shareholders

and stakeholders. These material issues are reviewed each year during the course of the strategic planning process.

COMBINED ASSURANCE

We employ a combined assurance model to manage various aspects of our business operations, including elements of external reporting. The assurance for this report is provided by management, our internal auditors, and independent external service providers, as well as oversight by our Board of Directors.

BOARD RESPONSIBILITY STATEMENT

UEM Sunrise acknowledges its responsibility to ensure the integrity of this Integrated Report. We believe that the report addresses all material matters and provides

a balanced view of UEM Sunrise's strategy and its ability to create and preserve value in the short, medium,

and long-term. We confirm that this report has been prepared in accordance with the Framework and has been authorised for release on 28 April 2023.

1. Social and Relationship Capital

1. Intellectual Capital

1. Natural Capital

Key Risks

R1 Global Pandemic Risk

R2 Competition Risk

R3 People Risk

R4	Regulatory and
Corruption Risk

R5 Financial Risk

R6 Operational Risk

Practices

M4 Employee Management

M5 Health and Safety

M6	Data Privacy and
Cybersecurity

M7 Climate Change

M8 Local Community

M9 Waste

M10 Supply Chain Management

M11 Human Rights

M12 Market Presence

M13 Materials

M17 Procurement Practices

Key Stakeholders Groups

Customers and

Tenants

Employees

Investors, Shareholders,

Analysts

Business Partners

(MoU, Joint Venture)

Government Agencies,

Authorities

Banks, Rating Agencies,

Sukuk Holders

Service Providers

(Vendors, Suppliers,

Contractors, Lawyers)

Media

Local Communities

Stabilise

WHAT'S INSIDE

This Integrated Report is available at

uemsunrise.com

ABOUT THIS REPORT SUSTAINABILITY @ UEM SUNRISE

OVERVIEW OF UEM SUNRISE

1. Vision | Mission | Values

1. Who We Are

1. Our Property Portfolio

1. 2022 Performance Snapshot
   10 Financial Highlights
   11 Business Highlights
   12 Sustainability Highlights

1. 2022 Significant Events

1. Awards & Recognitions

1. What Differentiates Us

1. Indices Representation/Credit Ratings

1. Our Strategic Partners
2. Group Corporate Structure
3. What We Do: Core Business Segments & Highlights

1. Our Presence

LEADERSHIP INSIGHTS

26 Chairman's Statement

32 From the Desk of our CEO

VALUE CREATION AT UEM SUNRISE

1. Integrated Approach to Value Creation

1. Our Value Creation Model

1. Performance by Capitals

1. Stakeholder Engagement & Value Creation

MANAGEMENT DISCUSSION AND ANALYSIS

1. Strategic Review
   68 Property Market & Outlook
   72 Key Market Trends Shaping Our Business
   74 Our Material Matters
   78 Key Risks and Mitigations
   81 Our Strategy
   82 Strategic Performance Review
   87 Key Performance Indicators
2. Financial Performance Review
   90 Financial Review by Chief Financial Officer
   94 Five-Year Financial Highlights
   95 Five-Year Group Performance
   96 Five-Year Financial Review of the Group
   97 Group Quarterly Performance
   98 Segmental Analysis
   99 Simplified Group Statements of Financial Position
   100 Statement of Value Added
   101 Financial Calendar
   102 Investor Information
3. Business Review
   109 Central Region
   117 Southern Region
   125 International

SUSTAINABILITY

1. Sustainability Statement

1. Sustainability Governance

1. Sustainability Risk Management
2. Economic Impact

1. Environmental Impact

1. Social Impact

CHIEFs Hafrizam, Ailing, Syaza and Yuki embracing the CHIEFs' core values of Caring, Honest, Involved, Enthusiastic and Fun-loving

LEADERSHIP

1. Corporate Information
2. Board at a Glance
3. Board of Directors' Profile

1. Joint Secretaries
2. Senior Management Team's Profile

1. Leadership Team

1. Organisation Structure

COMMITMENT TO STRONG GOVERNANCE

1. Corporate Governance Overview Statement

1. Audit Committee Report

1. Statement on Risk Management and Internal Control

1. Risk Management Report

1. Additional Compliance Information
2. Directors' Responsibility Statement in respect of Audited Financial Statements

FINANCIAL STATEMENTS

244 Directors' Report

1. Statement by Directors

1. Statutory Declaration
2. Independent Auditors' Report

1. Statements of Profit or Loss
2. Statements of Comprehensive Income
3. Statements of Financial Position

1. Statements of Changes in Equity
2. Statements of Cash Flows

1. Notes to the Financial Statements

SHAREHOLDERS' INFORMATION

375 GRI Content Index

381 Analysis of Shareholdings

1. Material Properties of UEM Sunrise Berhad Group
2. Notice of Annual General Meeting

389 Statement Accompanying Notice of Annual General Meeting

• Form of Proxy

4	UEM Sunrise Berhad
Integrated Report 2022

SUSTAINABILITY @ UEM SUNRISE

UEM Sunrise continues to create value and positive impacts for our business and stakeholders as we embrace sustainability in every step of decision-making. As a responsible developer, we have long recognised the need to balance contributions to the environment, society and economy, which are all crucial in preserving our long-term growth.

As such, we are committed to long-term value generation with our developments and continue to design townships that fulfil communities' social, physical and spiritual needs.

We adopt a holistic approach to our sustainability agenda, as guided by the UEM Sunrise Sustainability Blueprint 1.0 (Sustainability Blueprint). The blueprint is anchored on our four pillars for sustainability: Liveability, Affordability, Sustainability and Resilience.

Among the action plans under the Sustainability Blueprint is to improve the sustainability of our design processes via the development of Sustainable Development Design Guidelines (SDDG). The SDDG will be a reference guide for us to comply with when integrating sustainability elements into our design decision. As we are committed to delivering our aspirations under the Sustainability Blueprint, we place high importance on the development of the SDDG.

The SDDG is currently being devised. We plan to seek the Board's consent upon completion and target to distribute it to relevant stakeholders, i.e. our designers and engineers, for them to entrench into their design processes directly contributing to our sustainability movement.

Carbon
Neutrality	Sustainability
2050	Blueprint

Ambition

Zero 2040

Liveability

Affordability

Sustainability

Resilience

Building a Low	Digital &	Talent &	Stakeholder	Strategic	Value-
Carbon Future
Innovation	Knowledge	Engagement	Partnership	proofing
by 2030

5

UEM SUNRISE SUSTAINABILITY MILESTONES

Committed to a low carbon future by 2030 and Carbon Neutrality by 2050

		Developed a framework
Achieved Green Building	to encapsulate and
certifications for three	strengthen sustainability
projects	practices within			Presented
		UEM Sunrise
					the Sustainability
					Blueprint to the
					Board for approval
					and execution
					at the organisation
					level

2015

2020

2021

2022

	Initiated the
		development of
Established a Sustainability		the SDDG for the
Sukuk Framework to
	Board of Directors'
manage the ASEAN
	endorsement
Sustainability SRI Sukuk
Murabahah

Launched an inaugural
UEM Sunrise partnered
campaign Towards Safety,	with GENTARI and
Health and Environment	PETRONAS Global
Excellence (SHE Excellence)	Technical Solutions
	Sdn. Bhd.

6	UEM Sunrise Berhad
Integrated Report 2022

OVERVIEW OF UEM SUNRISE

Vision

7

MissionValues

Building communities of the future with you and for you.

Who We Are

UEM Sunrise is a public-listed company and one of Malaysia's leading property developers. It is the flagship company for the township and property development of UEM Group Berhad (UEM Group) and Khazanah Nasional Berhad (Khazanah).

The Company has core competencies in macro township development, high-rise residential, commercial, retail and integrated developments.

It is the master developer of Iskandar Puteri, Johor, envisioned to become one of the largest fully integrated urban development in Southeast Asia. UEM Sunrise is also renowned as the pioneer award- winning developer of Mont'Kiara, an upmarket and affluent neighbourhood in Kuala Lumpur and has continued its success in numerous other areas in the Greater Klang Valley. The Company has since extended its mark internationally with acclaimed development projects in Singapore, Australia, Canada and South Africa.

Mont'Kiara

UEM Sunrise's brand essence comes from the belief that everyone has a right to happiness. Therefore, the Company will continue to create opportunities for others to find their happiness conscientiously, guided by the ethos and tagline "Find Your Happy" and driven by the core values of CHIEF (Caring, Honest, Involved, Enthusiastic, and Fun-loving) to inspire joy and happiness in one space at a time.

UEM Sunrise brings together the talented and skilled, the imaginative and the courageous. We create sustainable environments loved by homeowners, acclaimed by investors and recognised by the industry. We believe in thinking big and acting quickly to unlock potential; to thrive in a changing world.

We are CHIEF Happiness Officers; our values inspire us to create excitement and bring joyful experiences to all.

Caring

We care about others as much as doing good work. We take pride in what we do and have the desire to do the best we can consistently while conscientiously finding ways to improve. We find joy in the work we do, the people we do it with and the environment we create to do it in. We care for people, the places we create, and our planet.

Honest

This interest we have in inspiring others in their quest for happiness must come from a place of honesty. Through honesty with an intent to build, we create trust. This becomes the foundation from which our business is built on and prospers. We are here to inspire and help others find their happy through the environment we create, the products we offer, the services we provide and the initiatives we do - one space at a time.

Involved

We are actively involved in supporting our customers and stakeholders on their Find your Happy journey regardless of whether it is a masterplan we are developing, a residential tower we are building, a commercial centre we are constructing, a space we are creating or a child whose education we are helping. When we are actively involved and genuinely interested, we will always find ways to help inspire hopefulness in our customers', stakeholders' and colleagues' Find your Happy journey.

Enthusiastic

We remain optimistic and enthusiastic on the outcome and effect our efforts are contributing to the lives of all the people we touch in their Find Your Happy journey. With this enthusiasm, positivity and belief comes a confidence borne out of a principled approach.

Fun-loving

As all our ideas, creativity and decisions are made to positively impact others, we find this journey both fulfilling and enjoyable. We seek and generate ways to find the fun, excitement and happiness in everything we do, as much as we can.