Investor Relations

Good corporate governance and investor relations continue to form an integral part of Keppel Land’s corporate culture, even as rising corporate scandals reinforce the importance and necessity for good corporate governance practices.

The Company implemented quarterly reporting from the first quarter of 2002, a year before the new Code of Corporate Governance became effective.

Its results announcements are all made within 30 days from the end of the reporting period. In accordance to corporate transparency, joint briefings are held for analysts and press at the full-year and interim results announcements allowing for open interaction with management.

As a move to strengthen the independence element of the Board of Directors, Keppel Land appointed one new independent Director in 2002 in addition to two new Directors appointed in 2001. The new Directors have since undergone an orientation programme which has given them a good insight of Keppel Land’s major developments and operations. In August-September 2002, a China trip was organised for Directors to visit the Company’s projects in Shanghai, Beijing and Chengdu so that they would have a better understanding of different market conditions.

The addition of independent Directors has contributed to a more well-balanced Board, facilitated the formation of the Remuneration and Nominating Committees, and the reconstitution of the Audit Committee, leveraging their professional experience in finance and law. The Remuneration Committee reviews the terms, conditions and remuneration of senior executives and ensures accountability to shareholders while the Nominating Committee performs Board appraisal.

An enterprise risk management system was also introduced to identify and put in place systems to mitigate the major risks faced by the Company.

COMMUNICATION WITH SHAREHOLDERS

The Group places emphasis on investor friendliness and effective communication with shareholders and the investing public with regards to the Group’s strategic focus, major corporate developments and financial performance.

Keppel Land is well covered by most stockbroking houses in Singapore as it is a component stock of the following indices: the Morgan Stanley Capital Index Singapore Free, the Straits Times Index, the All-Singapore Equities Index, All-Singapore Equities Property Index, Singapore Equities Mainboard Index and UOB Blue Chip Index.

The Company is also a member of European Real Estate Association which keeps it in touch with the latest developments of the international real estate community. Keppel Land is also a member of the Investor Relations Association (Asia) which serves the Company in keeping abreast of the best investor relations practices.

With more than 40% free float, it is estimated that 20-30% of Keppel Land’s shares are held by institutional shareholders. Hence, management invests time to meet up with fund managers regularly in Singapore and overseas. With the global slowdown, foreign fund managers have cut back on travelling due to budget constraints. As a result, the Company’s efforts in making trips to meet them are usually very much appreciated.

Keppel Land won the Best Annual Report Award for 2002 for its commitment to good corporate governance and investor relations

In September 2002, management met with fund managers in Netherlands and United Kingdom. In early 2003, as part of the Keppel Group, senior management participated in an European roadshow covering seven cities to meet shareholders and investors to address concerns and explain growth prospects. Keppel Land also participated in a major Asia Pacific property conference in Amsterdam in March 2003, as well as visited shareholders and potential investors in Scandanavian countries.

The corporate website is frequently used by fund managers and analysts as it is a rich source of information capturing the major corporate developments, property description as well as the Company’s ten years’ financial information, results’ presentation slides, annual reports and press releases. An electronic "live" ticker tape provides real-time information on the latest share price and volume traded. An additional page featuring frequently-asked questions (FAQs) has been added. Other material information such as Keppel Land’s strategies and directions, awards and accolades, residential developments and landbank, and office portfolio are also included.

With increased interest from shareholders in Singapore, the Company enlarged its sitting capacity for its Annual General Meeting in 2002, and provided facilities for shareholders to view the proceedings on television screens and participate through video-conferencing.

In anticipation of an even larger turnout for the Annual General Meeting in 2003, the event will be held at a hotel.

RECOGNITION FOR EFFORTS

In all, Keppel Land has won the Grand Award eight times at the Annual Reports Awards Competition

Recognition of our commitment and continual efforts towards greater disclosure for the benefits of shareholders and investors came from different quarters.

Keppel Land won the Best Annual Report Award at the 29th Annual Report Awards Competition in January 2003. This is the 15th time that the Company has taken the top prize, and a testimony to the Company’s commitment of providing greater disclosure for the benefits of shareholders and investors.

Previously, the competition also used to present the Grand Award to the company which took the top prize for three consecutive years. In all, Keppel Land has won the Grand Award eight times before the award was discontinued this year. The competition is organised by the Institute of Certified Public Accountants of Singapore (ICPAS), the Securities Investors Association (Singapore), the Singapore Institute of Management, the Singapore Exchange Securities Trading Ltd, the Singapore Institute of Directors and The Business Times.

Keppel Land achieved a higher score under the revamped Business Times Corporate Transparency Index which now emphasises more on content rather than context. The Company received an overall score of 82 points for full-year 2002 financial results compared with 74 points for the previous year, when it nonetheless ranked among the top 5% of the 278 companies scored in the index. The Company took the runner-up prize for the Most Transparent Company Award in the properties category from the Securities Investors Association (Singapore). Keppel Land has won this award for the third consecutive year.

Keppel Land took the tenth place in the latest corporate governance ranking exercise by European broking house CLSA. The score of 76.2% is an improvement over last year’s 72.8%. The Company has continued to achieve one of the best scores among listed property companies in Singapore.