ABoUT FABER - malaysiastock.biz 2011 Frost & Sullivan Malaysia Excellence Award 3 Awards ... of Sharjah. LRT Station at KL ... l Technical and Educational Consultancy Services

ABoUT FABER1 2010 Key Highlights 2 Our Vision, Mission and Core Values 3 Company Profi le6 Integrated Facilities Management Services

STRIvING FoR GRoWTH 10 Chairman’s Statement 16 Managing Director’s Review 26 Operations Review

l Integrated Facilities Management l Property Development

PERFoRMANCE REvIEW 38 5-Year Group Financial Highlights 39 Group Financial Summary 40 Group Quarterly Performance 41 Group Statement of Value Added 42 Share Price Movement 43 Group Financial Calendar 44 Group Manpower Summary CoRPoRATE FRAMEWoRK 48 Corporate Structure 49 Organisation Chart 50 Corporate Information 52 Group Milestones 54 Our Achievements 55 Past Achievements 56 Calendar of Events 2010 58 Media Highlights LEADERSHIP 62 Board of Directors 64 Board of Directors’ Profi le 70 Group Management Profi le 72 Heads of Overseas Subsidiaries Profi le 73 Senior Management Team

KEY INITIATIvES 78 Human Capital Development 79 Enhancing Employees’ Value 83 Enriching Stakeholders’ Value 86 Our Focus on Quality 92 Our Commitment to Occupational Safety, Health & Environment 98 Making a Difference in Society

TRANSPARENCY 102 Statement on Corporate Governance119 Statement on Internal Control 124 Audit and Risk Committee Report 132 Statement of Directors’ Responsibility in Respect of Audited Financial Statements FINANCIAL REvIEW 134 Financial Statements ACCoUNTABILITY240 Analysis of Shareholdings 243 Properties Held by the Group 244 Additional Compliance Information 245 Recurrent Related Party Transactions 250 Notice of the 48th Annual General Meeting 254 Statement Accompanying Notice of the 48th Annual General Meeting

l Proxy Form l Group Directory

48 TH ANNUAL GENERAL MEETING

Date : 18 May 2011, Wednesday Time : 10.00 a.m.venue : Ballroom 1, 1st Floor Sime Darby Convention Centre 1A, jalan Bukit Kiara 1 60000 Kuala Lumpur

Enriching Lives

In 2010, Faber posted its best ever revenue in its history. Since streamlining our core businesses in 2008 we have defi ned a roadmap to achieve our vision:

• To be the no. 1 partner in Integrated Facilities Management

• To be a niche Property Developer

Our in-depth technical know-how, human capital development, continual improvement initiatives, and supporting social and environmental causes are the drivers of our business growth. Driven by our core values of professional, passionate, caring, innovative and trustworthy, we are optimistic that our efforts will enable us to sustain our competitive advantage.

Our more than 7,300 strong and growing employees take great pride in the role they play in supporting and expanding the lifespan of our clients’ assets. The investments we have made to develop our employees’ skills and in technological advancements have resulted in greater convenience, value and reliability for our clients. In return, these initiatives have enabled us to share our successes with our strategic business partners, vendors, shareholders and the communities where we operate. This further underscores our commitment in enriching the lives of whomever we come in contact with.

TABLE OF CONTENTS

Faber Group Berhad l Annual Report 2010 1

Faber achieved its Headline Key Performance Indicators for Financial Year 2010

with Revenue Growth of 12.6% and Return On Equity of 19.5%

About Faber

2010 Key Highlights

14-yearhistory of Faber’s initiatives in the successful implementation of the

privatisation exercise.

Launch of “Accolades - A Tribute to Malaysia’s Privatisation of Hospital

Support Services” coffee table book.

l Best Practices-Healthcare Asset Management Award 2011

Institute for Infrastructure Asset Management (United States of America)

l Winner - Marketplace Category(Companies below RM1 billion market capitalisation)

StarBiz-ICR Malaysia Corporate Responsibility Awards 2010

l Facilities Management Company of the Year2011 Frost & Sullivan Malaysia Excellence Award

3Awards

Recipient of

Shareholders’ Funds increased by 15.3%

RM448.9 million

Return On Equity of

19.5%

Dividend Payout increased by 33.7%

RM21.8 million

Revenue increased by 12.6%

RM888.8 million

Launched

RM325.5million

worth of high-end niche property projects.

Talent pool of over

7,300employees

Faber Group Berhad l Annual Report 20102

our vision, Mission and Core valuesAbout Faber

oUR vISIoN l To be the no. 1 partner in Integrated Facilities Management

l To be a niche Property Developer

oUR MISSIoN l To continuously raise standards in Integrated Facilities Management

l To deliver valued realty

oUR CoRE vALUES l Professional

l Passionate

l Caring

l Innovative

l Trustworthy


About Faber

Company Profi le

Faber Group Berhad (“Faber” or “the Group”) is listed on the Main Market of Bursa Malaysia Securities Berhad under the Trading/Services Sector. From a Malaysian hospitality concern over 45 years ago, Faber has, following a successful restructuring exercise and strategic initiatives, grown into a leading player in the Integrated Facilities Management (“IFM”) and Property Development sectors.

Today, Faber is one of the largest companies providing IFM for Hospital Support Services ranging from Facilities Engineering Maintenance Services (“FEMS”), Biomedical Engineering Maintenance Services (“BEMS”), Cleansing Services (“CLS”), Linen and Laundry Services (“LLS”) to Clinical Waste Management Services (“CWMS”). Faber also provides IFM services internationally, offering professionally managed IFM services to perpetuate asset lifespan, functionality and reliability.

Integrated Facilities Management [Concession]Malaysia Faber Medi-Serve Sdn Bhd

n Serves 81 Government hospitals (including 2 laboratories) in 6 states: Perak, Kedah, Penang, Perlis, Sabah and Sarawak.

n Undertakes CWMS for more than 650 private clinics and private hospitals throughout the country.

n Maintains more than 110,000 healthcare assets.

n FEMSl Maintains RM1.7 billion value of assets.

n BEMSl Maintains RM1.7 billion value of assets.l Maintains 653 different types of therapeutic, diagnostic and

laboratory equipment.

n CLSl Cleans more than 3.0 million sq. meters of fl oor area daily.l Invested RM5.2 million in cleansing equipment since 1997.

n LLSl Purchased RM135.0 million worth of linen since 1997.l Invested more than RM58.4 million in laundry plants and

equipment.

n CWMSl Invested more than RM62.4 million in clinical waste management

plants and equipment.l Undertakes almost 700,000 scheduled pick-ups each year.

Different types of therapeutic, diagnostic and laboratory equipment are maintained under BEMS.

Safe treatment of CWMS at the Kamunting Incineration Plant, Perak.

Maintenance of ambulances under FEMS.


About Faber

Company Profile (continued)

Integrated Facilities Management [Non-Concession] Malaysia Faber Facilities Sdn Bhd

n Maintains 16 properties comprising 11 commercial properties and 5 residential properties.

n Commercial properties include Kota Iskandar (formerly known as Johor State New Administration Centre) in Johor; Rapid KL LRT Stations, Menara Worldwide, Persada PLUS, Faber Towers, Mercu UEM in the Klang Valley; Mahkota Medical Centre in Malacca; Kuantan Medical Centre in Pahang; Kolej Yayasan UEM and TESCO (Kajang) in Selangor; and the International Medical University in Kuala Lumpur.

n Residential properties include Danau Impian, Danau Murni, Taratak Muhibbah 1, Taratak Muhibbah 2 and Seroja Apartment, which are all located in Kuala Lumpur.

IndiaFaber Sindoori Management Services Private Limited

n Joint venture with Apollo Sindoori Hotels Limited.

n Provides CLS and BEMS to Apollo Group of Hospitals.

n Undertakes FEMS for the Rajiv Gandhi International Airport in Hyderabad.

Faber Star Facilities Management Limited

n Joint venture with Singa Real Estates Limited.

n Provides FEMS for 2 commercial facilities in Delhi and BEMS for 4 Fortis hospitals owned by Fortis Healthcare Group.

United Arab EmiratesFaber L.L.C.

n Provides FEMS and BEMS services for Sheikh Khalifa Medical City, Al-Rahbah Hospital, Madinat Zayed Hospital, Liwa Hospital and Mirfa Hospital under the auspices of the General Health Authority, and various veterinary clinics for the Department of Agriculture in the Emirate of Abu Dhabi.

n Provides BEMS for Khorfakkan Hospital, Kalba Hospital and Dhaid Hospital under the auspices of the Ministry of Health in the Emirate of Sharjah.

LRT Station at KL Sentral transportation hub in Kuala Lumpur.

Rajiv Gandhi International Airport in Hyderabad, India.

Al-Rahbah Hospital in the United Arab Emirates.


About Faber

Company Profile (continued)

Property Development Division Malaysia Faber Development Holdings Sdn Bhd

n A reputable, established and reliable developer with a track record spanning almost 40 years.

n Differentiates itself from the competitors by undertaking the development of properties focusing on prime location, competitive pricing and quality finishings.

n Focuses on enhancing value propositions with innovative designs and well planned development projects to attract property investors and buyers.

n Property Development will continue to remain as one of Faber’s core businesses and a significant revenue contributor to the Group.

n Flagship developments include:lTaman Desa, Taman Danau Desa and Laman Rimbunan in Kuala Lumpur.lTaman Grandview, Sandakan and Taman Hilltop Perdana, Kota Kinabalu in Sabah.

n Track record of completed projects to date:l1,328 units of landed residential units. l546 units of commercial properties.l5,191 units of condominiums and apartments.

n Adopts QLASSIC standards established by the Construction Industry Development Board (“CIDB”) to improve the delivery and quality of products.

3-storey semi-detached homes of Areca Residence in Kepong, Kuala Lumpur. Exclusive lakeside link-bungalows of Vila Prima in Taman Danau Desa, Kuala Lumpur.

Distinctively designed bungalows of Armada Villa in Taman Danau Desa, Kuala Lumpur.


About Faber

Integrated Facilities Management Services


About Faber

Integrated Facilities Management Services (continued)

CLINICAL WASTE MANAGEMENT SERvICES (“CWMS”)l Clinical Waste Segregation, Collection and Storagel Spillage Management l Hygienic and Infectious Control Managementl Incineration and Treatmentl Inert Ash Disposal into Approved Land Fillsl On-Line and Manual Waste Movement Tracking System l Operational Adherence to Guidelines by Department

of Environment (“DoE”), World Health Organization (“WHO”) and Environment Quality Act (“EQA”) 1974

l Supply of Clinical Waste Supplies and Consumables l Supply of Scheduled Waste Approved and Registered

Fleetl Technical and Educational Consultancy Servicesl Treatment plants comply to the United States

Environmental Protection Agency (“USEPA”) Standards

LINEN AND LAUNDRY SERvICES (“LLS”)l Linen and Laundry Management Services covering:

- Identification, Inventory and Delivery- Management of Loss and Condemnation- Linen Procurement

l Linen Processing Management: Sorting, Washing, Drying, Ironing, Folding, Packing and Salvation

l Operational and Linen Quality Test in line with Guidelines set by United Kingdom and Australian Standards

l Quality Assurance Programmes

HEALTHCARE QUALITY AND ACCREDITATIoN CoNSULTANCY SERvICES

IFM SERvICES FoR CoMMERCIAL BUILDINGS SECToRl Office / Residential Towers and Buildingsl Airport Terminalsl Port Terminals and Storage Facilitiesl Gated Residential and Industrial Communities

oTHER RELATED SERvICESl Green IFM Services including Testing and

Commissioning, Consultancy and Post Certifications Sustainable IFM Management

l Facility Management Consultancy

FACILITIES ENGINEERING MAINTENANCE SERvICES (“FEMS”)l Asset and Equipment Inventory Managementl Asset Maintenance Services: Breakdown, Corrective,

Planned Preventive and Predictive Maintenancel Civil, Mechanical and Electrical Systems including Lifts,

Escalators and Lightning Protectionl Communications and Audio Visual Systemsl Energy and Environment Management l Fire and Emergency Response Managementl Fleet and Vehicle Maintenancel Ground Maintenance and Landscapingl Medical Gasses, LPG, Industrial Gas and Steam Supply

Systemsl Occupational Safety and Health Managementl On Premise, Road and Drainage Systemsl Pest Control Managementl Quality Assurance Programmesl Safety and Securityl Sanitary Plumbing and Sewerage Managementl Technical Consultancy

BIoMEDICAL ENGINEERING MAINTENANCE SERvICES (“BEMS”)l Acceptance, Calibration and Performance Testing l Emergency Response and Repairl Equipment Maintenance Services: Breakdown, Corrective,

Planned Preventive and Predictive Maintenance l Equipment Failure Analysis and Risk Factor Calculationsl Equipment Safety Testingl Hazardous and Contaminated Devices Handlingl Asset Inventory Tracking and Management Programmesl Spare Parts Planning and Procurement Supportl Warranty Management

CLEANSING SERvICES (“CLS”) l External Facade Cleaningl General and Public Area Cleaningl Hygienic and Infectious Control Managementl Specialised Area Cleaningl Spillage Managementl Provision of Cleaning Supplies and Consumablesl Systematic and Consistent Cleaning Schedulesl Waste Collection and Storagel Quality Assurance Programmes


We understand the importance of uncompromising quality...Enriching Lives


Adnan bin Mohammad

Managing DirectorFaber Group Berhad

We are committ ed towards building a talent pool that is competent and highly skilled, and is focused on conducti ng business dealings in an ethical manner. We encourage our people to share ideas as well as develop and provide comprehensive and innovati ve soluti ons.

CORE VALUE

ProfessionalWe are committ ed towards building a talent pool that is competent andhighly skilled, and is focused on conducti ng business dealings in an ethical manner. We encourage our people to share ideas as well as develop and provide comprehensive and innovati ve soluti ons.

DATo’ IKMAL HIjAz BIN HASHIMChairman



Striving for Growth

Chairman’s Statement

Dear Shareholders,I am pleased to announce that Faber Group Berhad (“Faber” or “the Group”) has recorded another good year for 2010. The Group achieved its best ever revenue in its 47-year history especially after we expanded our business overseas. This strategic move has resulted in us strengthening our foundation for sustainable long term growth. Nevertheless, it is important that we maintain adequate focus in the foreign environment so that any differences in business culture are well managed and business processes are in compliance with international standards and practices.

Faber continues to focus on delivering quality services and products to enrich the lives of our shareholders, employees, clients, end-users and other stakeholders. The theme for this year’s Annual Report, “Enriching Lives” aptly reflects the positive impact of our core businesses on society, industry, economy and the nation.

In order to sustain commendable performance, our company must and will continue to seek for new opportunities with high growth potential both locally and overseas, whilst at the same time we will continue to build on our strength to focus on customer service and product offerings. Through Integrated Facilities Management (“IFM”) services, we provide efficient operations and management of assets, which assist our clients to focus on their core activities in serving their respective constituencies. In Property Development, we have differentiated ourselves from our competitors by developing high-end niche and attractive residential and commercial properties. This strategy will ensure our development projects will not only be well received with its contemporary and distinctive architectural styles but also to optimise and secure better returns from our precious remaining land bank. Faber’s core focus on IFM and Property Development continues to underpin the Group’s capability to generate healthy returns and consistently deliver profits to our shareholders.

IMPRovED FINANCIAL PERFoRMANCE

For the financial year ended 31 December 2010, the Group posted revenue of RM888.8 million compared to RM805.3 million the previous year. The higher revenue was achieved on the back of IFM contracts in the United Arab Emirates (“UAE”). The commendable performance by the IFM sector contributed RM819.7 million or 92% to Group’s revenue (2009: RM682.8 million) and Profit Before Tax (“PBT”) of RM136.2 million (2009: RM127.9 million). The Property Development Division posted revenue of RM69.1 million only (2009: RM122.5 million) but nevertheless generated a PBT of RM15.4 million (2009: RM28.1 million).

The Group had registered lower PBT amounting to RM129.2 million (after off-setting corporate office expenses) against RM141.2 million in 2009, largely due to a much lower PBT contribution from the Group’s property arm, which cautiously deferred several launches arising from the then uncertain market factors.

In 2010, Faber realised both its Headline Key Performance Indicators (“KPIs”). Faber achieved a 12.6% 1 Revenue Growth against its target of between 12% and 15% and exceeded its KPI for Return On Equity (“ROE”) with a growth rate of 19.5% 2 against targets of between 15% and 18%.

The year’s performance has thus placed the Group in a stronger financial position with increased Shareholders’ Funds to RM448.9 million representing an increase of 15.3% from RM389.2 million in 2009. Operational Earnings Per Share (“EPS”) marginally decreased to 21.7 sen (2009: 22.9 sen).

1 FY2009 revenue excludes a non-recurring one-off item of RM16.0 million.

2 For the computing of ROE above, the Profit Attributable to Owners of the Parent for FY2010 excludes the negative impact of non-recurring one-off items of RM3.1 million.

DIvIDEND

In line with our vision to share healthy returns with our investors, the Board of Directors is pleased to propose for financial year 2010 a final dividend of 8% less 25% taxation, equivalent to 6.0 sen net per ordinary share (2009: 4.5 sen) on 363 million ordinary shares. The Board seeks the approval of the shareholders for a total net dividend payout of RM21.8 million (2009: RM16.3 million).

This marks the fifth consecutive year where Faber has increased its dividend payout. As you are aware, Faber announced the first-ever dividend of 2% in 2006 after a lapse of 22 years and this was followed by a consistently incremental rise in dividend in the following years (2007: 3%; 2008: 4%; 2009: 6%).

We will continue to adopt this dividend payout policy in the coming years by ensuring sustainable growth and returns in our businesses portfolios.


Striving for Growth

Chairman’s Statement (continued)

Kamunting Incineration and Laundry Plant, Perak.

Abu Dhabi Blood Bank, Sheikh Khalifa Medical City (“SKMC”).

Rajiv Gandhi International Airport in Hyderabad, India.


Striving for Growth


INTEGRATED FACILITIES MANAGEMENTPushing the Boundaries in a Competitive Environment

The Group’s entry into IFM began with a Government Concession for Hospital Support Services (“HSS”), which commenced on 1 January 1997. Since then, we have incrementally built a foundation for the business by developing highly trained and knowledgeable human capital supported by a comprehensive structure of systems and practices. Today, Faber is the largest service provider of IFM in Malaysia and is intent to continue pursuing commercially viable projects not only in Malaysia butalso overseas particularly in the UAE and the Indian Continent where we have established our footing. This we will do by leveraging on our competencies and experiences developed over the years.

In Malaysia, IFM operations are undertaken by two wholly owned subsidiaries, Faber Medi-Serve Sdn Bhd (“FMS”) and Faber Facilities Sdn Bhd (“FFSB”). FMS provides HSS comprising Facilities Engineering Maintenance Services (“FEMS”), Biomedical Engineering Maintenance Services (“BEMS”), Cleansing Services (“CLS”), Linen & Laundry Services (“LLS”) and Clinical Waste Management Services (“CWMS”) to 81 Government hospitals including two laboratories. The HSS covers the states of Perak, Kedah, Penang, Perlis, Sabah and Sarawak under an existing15-year Government Concession, which is due to expire in October 2011. Faber is currently in negotiations with the Ministry of Health (“MoH”) for the renewal of the Concession. In addition, the company also undertakes CWMS for more than 650 private clinics and some private hospitals throughout the country.

Our FFSB’s scope of IFM services on the other hand coversnon-healthcare FEMS and general maintenance services. The company currently provides a mix of IFM services for fi ve offi ce buildings and fi ve residential properties. In 2010, several new projects were secured, where the main contract is for the provision of CLS for 49 Light Rail Transit (“LRT”) stations. Apart from its operations in the country, FFSB also provides IFM services in India, which comprise CLS, BEMS and FEMS for private hospitals and commercial properties.

Our key business strategy is to focus on the expansion of our IFM businesses and enhancing the competencies as well as broadening the technical skills of our human resource. This is to enable Faber to offer IFM services for other sectors such as Oil & Gas (“O&G”) Instrumentation, Airports and Ports, which require certain specialisation that is unique to each sector.

Intensifying our Efforts Overseas

Faber undertakes IFM services in the UAE through our subsidiary Faber L.L.C. while the operations in India are managed by FFSB via its subsidiaries Faber Star Facilities Management Limited (“Faber Star”) and Faber Sindoori Management Services Private Limited (“Faber Sindoori”).

United Arab Emirates (“UAE”)

Faber L.L.C. is a joint venture company incorporated in Dubai to tap the IFM opportunities in the UAE. The Group holds 75% beneficiary interest in the company.

Faber L.L.C. secured a new three-year contract worth a total of RM20.0 million to provide HSS to the Sheikh Khalifa Medical City in Abu Dhabi commencing 16 August, 2010. Faber L.L.C. current contracts for the provision of BEMS and FEMS at seven hospitals total RM12.6 million per annum.

In 2009, Faber L.L.C. was awarded a contract for infrastructure maintenance and two contracts for residential maintenance (worth an estimated annual total contract value of RM184.0 million) with the option to extend the contracts on a yearly basis for a four-year period by the Department of Municipal Affairs, Western Region Municipality (“WRM”) in Abu Dhabi.

Subsequently in January 2011, Faber received notices of non-renewal for the three contracts of which the infrastructure maintenance contract has ceased with effect from 3 April, 2011 and the residential maintenance contracts will cease with effect from 1 June, 2011. Notwithstanding this setback, our long term focus will still be on strengthening and expanding our foothold in the UAE. India

The Group made its fi rst entry into India in 2006 through its joint venture companies Faber Star and Faber Sindoori. Since then the total Indian operations have achieved revenue of RM28.9 million in 2010. Faber Star based in New Delhi, now undertakes BEMS for four Fortis hospitals as well as FEMS for a residential and a commercial building at a combined annual value of RM6.5 million. Faber Sindoori, our Chennai based joint venture has fi ve contracts to provide BEMS and 37 contracts for CLS at Apollo Group of Hospitals, and another two contracts to provide FEMS to the Rajiv Gandhi International Airport in Hyderabad with a total annual value of RM24.8 million.

With our existing presence in India, we believe we are well placed to capitalise on future IFM opportunities in the world’s second most populous country.


Striving for Growth


PRoPERTY DEvELoPMENTTowards Better Prospects in 2011

Property Development remains a core sector of Faber undertaken by wholly owned subsidiary, Faber Development Holdings Sdn Bhd (“FDH”). The subsidiary has consistently delivered valued and quality real estate thereby evoking favourable response from house buyers and investors. Against this backdrop, FDH has established a commendable reputation, which is synonymous with quality, reliability, innovation and integrity. Owing to the economic downturn in 2008/2009, the Board decided to defer the launches of some projects, which in hindsight proved to be prudent and beneficial.

The Armada Villa, which consists of 40 units of semi-detached houses, 5 bungalows and a clubhouse fronting the lake in Taman Danau Desa, Kuala Lumpur was eventually launched in April, 2010. The Areca Residence Sections 1 and 2, which comprises 102 units of 3-storey semi-detached houses in Laman Rimbunan, Kepong, Kuala Lumpur followed in November 2010. The response for these high-end niche developments have been highly encouraging demonstrating buyers more discerning taste for quality products.

The year 2011 is expected to be exciting for FDH with three high-end projects in the pipeline. Auguring the New Year was the launch of Vila Prima in February 2011, one of Faber’s prestigious offerings in the highly sought after location of Taman Danau Desa. This project consists of 34 link-bungalows and 3 detached bungalows with attractive landscaped gardens and water views. Vila Prima is poised to become the lakeside residence of choice for those more discerning buyers who are looking for comfort and luxurious lifestyle.

The Areca Residence Section 3, which comprises 54 units of 3-storey semi-detached houses in Laman Rimbunan, Kepong, Kuala Lumpur is targeted to be launched in mid 2011. This will be followed by the launch of 192 units of high-end condominiums along Persiaran Gurney, Kuala Lumpur in the last quarter of 2011. This high-end condominium project places special emphasis on green landscaping, efficient energy utilisation and a wide range of recreational facilities.

Vila Prima and Areca Residence represent the final phases of development by FDH in their respective townships and suburbs. FDH will seek to acquire new land banks so that it can continue to focus on projects at the high-end market, which incorporates innovative designs. The strategic direction of FDH is to acquire strategically located land for high-end niche developments. Efforts in this direction are being rigorously pursued and more concerted actions will be necessary to ensure sustainability and continuity of the business. Other options will also be considered to uphold shareholders’ value. Our shareholders will be duly apprised in time.

LooKING AHEAD WITH oPTIMISM

IFM outsourcing is picking up momentum particularly in the emerging markets throughout Asia, as industries and individual organisations continue to streamline their businesses to focus on their core activities.

Faber is strategically positioned to capitalise on this market trend as the Group has spent the past 14 years delivering consistently high level of services in IFM. We are now poised to leverage on our technical competencies, experiences and regional presence to expand our IFM operations both vertically and horizontally into other markets and industry sectors.

In general, the Group’s short term and long term strategy for its IFM business is to focus on improving its service quality to meet the rising client expectations and managing the increasing costs of various offerings. As for FDH, the specific short term challenge is to ensure the success of the new high-end development launches while the midterm challenge is to secure strategically located land to add to our depleting land bank.

MAINTAINING oUR vALUES AND EFFECTIvE GovERNANCE

The Group upholds the core values of corporate governance, integrity, transparency and accountability in the conduct of its business operations. We will enhance our ability to manage and mitigate risk to meet the increasing expectations of the industry, regulators and other stakeholders as well as upholding strong corporate governance practices. Moving forward, to meet these challenges, we will continue to invest in technologies that will contribute towards improved efficiency and productivity, while technical and professional training will be intensified to further develop the quality of our human resource.


Striving for Growth


ExTENDING GRATITUDE To ALL STAKEHoLDERS

Faber’s strong performance over the past few years is a refl ection of the vision and inspiration provided by the leadership as well as the commitment to excellence and dedication to continuous improvement shown by our employees.

On behalf of the Board of Directors, I would like to thank Dato’ Rosli bin Sharif, who resigned from the Board on 5 August 2010, for his dedicated service to the Group. I would also like to welcome Dato’ Mohd Izzaddin bin Idris and Encik Suhaimi bin Halim as members of the Board, following their appointments on 5 August 2010 and 1 September 2010 respectively. In this regard, my sincere appreciation also goes to members of the Board and Encik Adnan Mohammad together with his Management Team and all employees in Malaysia and our overseas bases in realising the Group’s plans to fruition.

To our shareholders and clients, we are grateful for your unwavering support, which has enabled Faber to pursue its aspirations with total confi dence.

Finally our sincere appreciation to all our stakeholders, our customers, bankers, business partners, the Government and all relevant Regulatory Authorities for making 2010 a defi ning year for Faber. May we continue to receive your valued support in the years to come.

Thank you.

Dato’ Ikmal Hijaz Bin HashimChairman

The Areca Residence comprises spacious semi-detached homes nestled in a peaceful centre within the bustling Kepong community in Kuala Lumpur.

Vila Prima link-bungalows with garden and water views, a lakeside sanctuary at the heart of Taman Danau Desa, Kuala Lumpur.

An innovatively designed 3-storey bungalow at Armada Villa in Taman Danau Desa, Kuala Lumpur.

ADNAN BIN MoHAMMADManaging Director



The portable incinerator in Lahad Datu, Sabah is a modular plant, which can be dismantled and relocated.

Striving for Growth

Managing Director’s Review

As a corporation, Faber Group Berhad (“Faber” or “the Group”) has always been cognisant that our responsibility lies in creating and maintaining our stakeholders’ value. The greater challenge is to continuously generate and support the momentum for sustainable growth. In this regard, Faber is committed towards improving its financial and operational performance by strengthening its core competencies, value propositions and market position.

We have carefully harnessed and nurtured our strategic strengths into centrepieces of growth. This has resulted in our core businesses of Integrated Facilities Management (“IFM”) and Property Development migrating up the value chain. For IFM, we are moving into specialised industry sectors and for Property Development we are focusing on niche projects.

ExPANDING oUR IFM CAPABILITIES

Continuing our efforts to cater for the increasing capacity of our IFM services, the Group invested a total of RM20.5 million in the year under review for a new laundry plant in Bukit Beruntung, Selangor and a portable incinerator in Lahad Datu, Sabah.

The RM17.0 million new laundry plant is poised to increase our market positioning to capture additional private sector business beyond our Government Concession for Hospital Support Services (“HSS”). Meanwhile, the RM3.5 million portable incinerator in Lahad Datu represents a new wave of facilities for our provision of Clinical Waste Management Services (“CWMS”) as it can be easily and readily relocated depending on demand and logistics. These investments have further strengthened Faber’s position as one of the largest operators of Linen and Laundry Services and CWMS in the country.

The new Bukit Beruntung Laundry Plant is equipped with the latest equipment and technology.

FMS provision of Linen and Laundry Services offers a one-stop centre for the total care and supply of linen to ensure consistency in the quality and quantity of linen at all times.t


Striving for Growth

Managing Director’s Review (continued)

Faber has commenced a pilot project to audit the energy usage at five Government buildings in the Northern States of Peninsular Malaysia.

SUPPoRTING NATIoNAL ASPIRATIoNS

Faber is spearheading the proposed project on Energy Performance Management System (“EPMS”) for Government entities, which forms part of Malaysia’s Economic Transformation Programme (“ETP”). The Government’s unveiling of the ETP is to raise the country’s Gross National Income (“GNI”) per capita by 2020 and will further encourage the creation of new jobs.

For this proposed projects, the Group has commenced a pilot project to audit the energy usage at selected Government buildings located in the northern states of Peninsular Malaysia. The results of the audit will be used to determine action plans to achieve optimisation of energy usage and promote savings in Government buildings. This is in support of the Entry Point Project (“EPP”) - Improving Energy Efficiency within the ETP. This pilot project, which covers five buildings is expected to have a GNI impact of RM18 million by 2020.

The EPP is an enhancement of our existing IFM services and we will continuously strive to meet the Government’s objectives and visions for energy efficiencies and carbon emission reductions.

ExPANDING oUR IFM CAPABILITIES (contd.)

Another emerging discipline, which Faber has embarked on is Green IFM (“GIFM”). Currently, GIFM is at an early stage of development in the region and we are strategically positioning ourselves to tap into this area of expertise. We expect to see an increase in demand for this service as the awareness of GIFM services increases in the region. Essentially, GIFM involves minimising and optimising the use of energy such as electricity and water as well as controlling the air quality in buildings.

The Green Building Index (“GBI”) is Malaysia’s industry recognised green rating measurement for buildings to promote sustainability in the built environment. As at November 2010, Faber has personnel who were certified as GBI Commissioning Specialists (“CxS”) to carry out both green building facilitation and commissioning activities. The specific tasks of the CxS are to evaluate and verify as to whether comprehensive green building pre-commissioning and commissioning activities are performed.

Faber is spearheading the Energy Performance Management System under the Malaysia Economic Transformation Programme.


Striving for Growth


CREATING A PoSITIvE PERCEPTIoN

On 7 July 2010, Dato’ Sri Liow Tiong Lai, Minister of Health, Malaysia launched a coffee table book entitled “Accolades – A Tribute to Malaysia’s Privatisation of Hospital Support Services”, which was published by Faber Medi-Serve Sdn Bhd (“FMS”). This noteworthy project documents FMS achievements and the development of the five HSS since the beginning of the concession in 1996. The information presented in this book is particularly useful for our employees, healthcare providers, relevant regulatory authorities and Government bodies as it provides comprehensive insight of HSS.

Revitalising the Faber Brand

We have embarked on a brand strategy project to establish a comprehensive corporate brand strategy for the future strategic growth and development of the Faber brand. The objective of undertaking this brand enhancement exercise is to create a cohesive and focused identity for Faber. Throughout 2010, we successfully completed the required phases to chart the Brand Strategy Blueprint. The Internal Brand Awareness Programme kicked-off in March 2011 to communicate and introduce the Brand Personality amongst the Group’s employees.

Driven by our core values and brand personality of being Professional, Passionate, Caring, Innovative and Trustworthy, we are optimistic that our efforts will enable us to further enhance our presence and competitive advantage as well as strengthen the Faber brand.

The coffee table book published by Faber Medi-Serve Sdn Bhd outlines the company’s 14-year experience in Hospital Support Services.

t

t

The brand strategy programme - towards creating a cohesive and focused identity for Faber.


Striving for Growth


CREATING A PoSITIvE PERCEPTIoN (contd.) Recognising Excellence

In December 2010, Faber was ranked as one of the Top 100 Companies under the Malaysian Corporate Governance Index 2009, which was conducted by the Minority Shareholders Watchdog Group. Assessments were based on information disclosed in companies’ annual reports and this is testimony to our commitment to excel, belief in transparency, strong corporate culture and teamwork.

Our continuous drive to raise the standards in IFM, especially in HSS was duly recognised when Faber clinched the Award for Best Practices in Healthcare Asset Management conferred by the Institute for Infrastructure Asset Management, the United States of America. The awards ceremony, which was held on 23 February 2011 was in conjunction with the 1st World Congress and Exhibition - Infrastructure Asset Management held in Kuala Lumpur.

Faber was also honoured to receive the 2011 Frost & Sullivan Malaysia Excellence Award for Facilities Management Company of the Year and also won the StarBiz-ICR Corporate Responsibility Awards 2010 for the Marketplace category for companies below RM1 billion market capitalisation.

The award recognition was based on the following criteria:

• CorporateGovernance(Boardcomposition,committeesandpractices);

• StakeholderEngagement(Policies,engagementwithcustomers, suppliers, government, civil society groups, media, investors and communities);

• CSRManagement(Reportingandcommunications);• Procurement&CodeofEthics(Policiesandtrainingof

employees);• ProductResponsibility,and• CodesofConduct&adherencetointernationalstandards.

Faber previously won the Workplace category in 2008.

Brand Training for the Group’s employees.

Faber is listed under the top 100 Companies of the Malaysian Corporate Governance Index 2010.


Striving for Growth


Faber won the two top company awards at

the “Malam Anugerah Kumpulan UEM 2010” for best achievements

and oustanding financial performance in 2009.

CREATING A PoSITIvE PERCEPTIoN (contd.) Recognising Excellence (contd.)

At the “Malam Anugerah Kumpulan UEM 2010”, the annual awards ceremony organised by the UEM Group, Faber walked away with two top company awards. The first was the “Anugerah Sri Cemerlang” for best achievements in 2009 for Financial, Customer Service, Internal Business Processes, and Organisational Learning and Growth. The second was the “Anugerah Sri Maju” in recognition of our exemplary financial performance in 2009.

CoMMITMENT To QUALITY

The Group’s diligent efforts to continuously improve its management system have resulted in better operational efficiency and productivity throughout the organisation. All companies within Faber have successfully upgraded their Quality Management System to the revised ISO 9001:2008 standard. The following were certifications obtained in 2010:

• Faber Facilities Sdn Bhd - OHSAS 18001:2007 certification for Safety and Health Management System• Faber Group Berhad - ISO 14001:2004 and OHSAS 18001:2007• FMS Kuala Ketil Laundry Plant - ISO 9001:2008, ISO 14001:2004, OHSAS 18001:2007, MS 1722:2005 and

5S for Quality Environment• FMS - ISO 13485:2003 certification for Biomedical Engineering Maintenance Services (“BEMS”)

The 5S Programme implemented at all employee levels is aimed at improving the workplace and enhancing their work efficiency. Based on the five principles of “Sort, Set in Order, Shine, Standardise and Sustain”, the programme not only improves the physical work environment but also enhances thinking processes. To date, 26 sites throughout the country have received the 5S certification from the Malaysia Productivity Corporation in recognition of their successful implementation of 5S. FMS also rendered its assistance to several hospitals in obtaining their 5S certification, which were issued directly to the respective hospitals.


CoMMITMENT To QUALITY (contd.)

The Faber Improvement Programme (“FIP”), which is initiated and implemented by our employees, promotes continuous improvement and innovation to enhance operational efficiency and boost cost reduction. In 2010, the Group successfully implemented 153 value creation initiatives, resulting in savings amounting to RM9.05 million.

‘Brainwave‘ was introduced in 2009 to solicit ideas from employees with the objectives of improving the Group’s bottom-line, enhance the work environment, increase productivity and service efficiency, streamline processes and procedures, and develop the well-being of employees. An independent committee reviews viable ideas, which are then forwarded to the respective Heads of Departments for implementation accordingly either at a particular department level or Group wide.

The Group continues its journey towards attaining distinction by embracing the Business Excellence Framework to improve its overall leadership, management, systems and processes.

INvESToR AND MEDIA RELATIoNS

In the best interest of our shareholders and the investment community, we strive to uphold the highest standards of transparency, accountability and integrity while conducting our business activities. Our Investor Relations (“IR”) portal, www.fabergroup.com.my/investor_relations, allows users to keep abreast with the Group’s corporate developments and business operations.

All announcements, regulatory authorities’ disclosure requirements and additional important information of the Group are disclosed in a timely manner to Bursa Malaysia Securities Berhad.

The IR Department maintains a database of shareholders and investors who want to be updated on the Group’s corporate developments and performance via e-mail. Interested parties can email their contact

Striving for Growth


details via [email protected] or write in to the Company Secretary, Faber Group Berhad, 20th Floor, Menara 2, Faber Towers, Jalan Desa Bahagia, Taman Desa, 58100 Kuala Lumpur.

In September 2010, Faber participated in the 17th CLSA Investors’ Forum in Hong Kong, which was the largest event to date organised by Asia’s leading independent brokerage and investment group, CLSA Asia-Pacific Markets.

We also conducted regular meetings with analysts, fund managers and members of the media to provide them with financial and corporate updates of the Group.

NURTURING oUR EMPLoYEES

Faber recognises its human capital as the most valuable asset of the Group. Our workforce is our strength in delivering our services. In 2010, the Group spent a total of RM3.6 million on training and development of our workforce. 65% of this investment was spent on developing technical competencies including courses and programmes, which covered new sectors in IFM. The training investment was also focused on leadership, customer relations, quality and improvement programmes.

CoNTINUING oUR CoMMITMENT To SoCIETY

The Group’s Corporate Social Responsibility (“CSR”) flagship programme is focused on education with the objective of developing skilled personnel especially in the areas of FEMS and BEMS. This programme is an ongoing collaboration with the Ministry of Higher Education. On 25 February 2010, a new Advanced Diploma Programme - the Advanced Diploma in Electronics Engineering (Medical) was introduced, which is being offered by Polytechnic Sultan Salahuddin Abdul Aziz Shah in Shah Alam, Selangor.


Active participation by our shareholders during the 47th Annual General Meeting of Faber in 2010.

Striving for Growth


The investment community and the public are kept up-to-date on the Group’s activities via our website.

As part of our business development, we participated in the 17th CLSA Investors’ Forum 2010 in Hong Kong.

The Faber Improvement Programme focuses on upgrading employees’ skills in problem solving and innovation.

Faber employees carry out their duties diligently to ensure our clients’ requirements and demand for superior services are met.

Press conference session after Faber’s 47th Annual General Meeting in 2010.


Striving for Growth


We held a Welcome Ceremony on 14 January 2010 to receive the first batch of students undertaking the Work Based Learning Advanced Diploma in Electronics Engineering (Medical) Programme.

CoNTINUING oUR CoMMITMENT To SoCIETY (contd.)

Contributions were also channelled to the IJN Foundation to support its care of heart patients. Other contributions included donations to three mosques in Tambun, Perak for upgrading of facilities; the Children’s Ward at Hospital Semporna in Sabah and 114 regional employees and their families who were affected by the recent floods in December 2010 in Kedah and Perlis.

DEvELoPING A NEW GENERATIoN oF ENTREPRENEURS

Faber’s Vendor Development Programme (“VDP”) has been an important contribution to the nation’s aspiration to create and develop capable and competent entrepreneurs.

Under the VDP, the Group provides opportunities to vendors to improve their entrepreneurial abilities in meeting our extensive sourcing and supply demands. The programme includes training sessions in crisis management, quality management, communications and financial management to ensure that vendors can sustain and enhance their performance, leading to a win-win situation between the two parties.

On 11 March 2010, the Group hosted its first “Anugerah E.M.A.S” (Entrepreneur, berMutu, Amanah, Sistematik) where awards were presented to high performing vendors. It is envisaged that this initiative will create a healthy competitive environment and spur better conformance, performance and practices by the vendors.

For us to remain on track and keep up our performance momentum we need to continuously reassess and improve our work processes, service levels, skills and knowledge. With the continuous support and guidance from our Board of Directors coupled with the commitment and dedication from the Management Team and employees, we have managed the challenges in 2010. My sincere appreciation goes out to all, for your perseverance and untiring contributions towards ensuring a better future for Faber.

Adnan bin MohammadManaging Director

Our employee development programmes are strategised to bring a culture of leadership to every level of the organisation.


Striving for Growth


The ‘Anugerah E.M.A.S’ (Entrepreneur, berMutu, Amanah, Sistematik) was introduced to encourage continuous improvement and enhance the performance of our vendors.

Appreciation Ceremony for graduates of the fi rst batch of students undertaking the Work Based Learning Advanced Diploma in Facilities Maintenance and Management held on 7 June 2010 .


Striving for Growth

Operations ReviewIntegrated Facilities Management

The growth and dominance of Faber Group Berhad’s (“Faber” or “the Group”) Integrated Facilities Management (“IFM”) business is a reflection of the strides made by the Group since it was first awarded a 15-year Government Concession to provide Hospital Support Services (“HSS”) to Government hospitals by the Ministry of Health (“MoH”) in late 1996. The Concession became a catalyst for the emergence of IFM outsourcing in Malaysia and Faber being one of the pioneers in this field continuously strives to raise the standards of IFM.

The Integrated Facilities Management (“IFM”) Division has steadily increased its contribution to the Group’s revenue from RM458.3 million or 69.0% in 2007 to RM819.7 million or 92.2% in 2010 (2008: RM507.9 million or 76.8%; 2009: RM682.8 million or 84.8%).

Over the years, the Group has developed a comprehensive framework for the provision of HSS consisting of human capital with technical expertise and management experience, extensive infrastructure of facilities, as well as tried and tested processes and practices.

20092008

(RM Million)Profi t Before Tax

2010

67.2

94.285.3

20092008

(RM Million)Revenue

2010

489.1

536.1

557.8

Queen Elizabeth 2 Hospital in Kota Kinabalu, Sabah.Slim River Hospital, Perak.

Faber has since expanded its portfolio beyond the Concession to provide HSS for private healthcare institutions and IFM for non-healthcare facilities for both the domestic and regional markets. The Group’s domestic operations are performed by wholly owned subsidiaries Faber Medi-Serve Sdn Bhd (“FMS”) and Faber Facilities Sdn Bhd (“FFSB”). FFSB also provides IFM in India through its joint venture companies, Faber Star Facilities Management Limited (“Faber Star”) and Faber Sindoori Management Services Private Limited (“Faber Sindoori”). The Group’s activities in the United Arab Emirates (“UAE”) are undertaken by joint venture company, Faber L.L.C.

FABER MEDI-SERvE SDN BHD (“FMS”)FINANCIAL REvIEW

FMS achieved a marginal 4.0% growth in revenue to RM557.8 million (2009: RM536.1 million) for the year under review and recorded RM85.3 million PBT for 2010, down from RM94.2 million in 2009.


Striving for Growth

Operations ReviewIntegrated Facilities Management (continued)

ovERvIEW oF oPERATIoNSGovERNMENT CoNCESSIoN

FMS has been operating and maintaining HSS for Government hospitals for the past 14 years. Based on the concession agreement executed on 28 October 1996, FMS was required to notify the Government of its intention to extend the Concession period before 28 October 2009. In accordance with the Concession Agreement, FMS notified the MoH of its intention to extend the Concession on 22 October 2009 and subsequently submitted the financial proposal to the Government on 29 June 2010.

The current provision of HSS to 81 hospitals including two laboratories encompasses Facilities Engineering Maintenance Services (“FEMS”), Biomedical Engineering Maintenance Services (“BEMS”), Cleansing Services (“CLS”), Linen and Laundry Services (“LLS”) and Clinical Waste Management Services (“CWMS”). Another two hospitals were recently added, which are extensions to existing hospitals. These are the Queen Elizabeth Hospital 2, which was previously known as the Sabah Medical Centre and “Pusat Jantung, Hospital Umum Sarawak”, previously known as the Sarawak International Medical Centre (“SIMC”).

Darul Ehsan Medical Centre, Selangor.Hospital Angkatan Tentera Tuanku Mizan, Kuala Lumpur.

NoN-CoNCESSIoN ACTIvITIES

FMS currently provides selected HSS to more than 650 private clinics and some private hospitals, which mainly encompasses CWMS. In 2010, FMS was awarded contracts worth approximately RM3.0 million per annum for several established institutions. These include:

Hospital Angkatan Tentera Tuanku Mizan, Kuala LumpurFMS was awarded contracts to provide CWMS and LLS at this military hospital with effect from 1 February 2010. For CWMS, the contract worth RM0.76 million is for a two-year period while the LLS contract worth RM2.82 million is for a one-year period with an option for renewal for another two years. Officially opened on 20 August 2009, the 282 bedded five-storey hospital spans over 40 acres of land, which caters to the primary and secondary healthcare needs of military personnel and their immediate families.

Hospital Angkatan Tentera Lumut, PerakFMS provides CWMS for this 150 bedded hospital, which is located at the Royal Malaysian Lumut Naval Base.

Ministry of Defence (“MINDEF”) clinicsFMS was appointed as a subcontractor to collect and treat clinical waste from clinics throughout Peninsular Malaysia. This contract is for a one-year period, which started on 1 July 2010.

Gleneagles KL Sdn Bhd, Kuala LumpurFMS was contracted for a two-year period to provide CWMS, which is valued at RM0.52 million commencing 8 November 2010. This 330 bedded tertiary care hospital with a separate Medical Office Building accommodates 110 specialists’ consulting suites, a 180-seat auditorium, a retail pharmacy, a bank and a café.

Darul Ehsan Medical Centre, SelangorFMS has secured a two-year contract to provide CWMS for Darul Ehsan Medical Centre, which commenced on 1 December 2010.

Darul Ehsan Medical Centre, Selangor.


Striving for Growth


oPERATIoNAL HIGHLIGHTS

New Laundry Plant for LLS ExpansionIn 2010, FMS invested RM17.0 million for a new laundry plant in Bukit Beruntung, Selangor as part of its expansion plans to cater for the growing demand of LLS for the Concession and Non-Concession businesses. The new plant is strategically located in northern Selangor to capitalise on private sector opportunities in the Klang Valley and Selangor, and is also to cater for the increasing demand not only from the hospitals under the concession but also from private hospitals.

Scheduled to be operational in April 2011, the plant, equipped with advanced technology, can initially process up to 12 metric tonnes of laundry per day. It can be expanded to process a maximum capacity of up to 40 metric tonnes of linen per day when it is fully upgraded and equipped, which is expected to be undertaken in stages in the next five years. The Bukit Beruntung facility is FMS fifth laundry plant with large capacity apart from the Kuala Ketil Plant in Baling, Kedah; the Kota Kinabalu Laundry Plant in Sabah; the Kamunting Laundry Plant in Perak and the Sijingkat Laundry Plant in Sarawak.

Improving Incineration Capacity for CWMSFMS currently treats and disposes approximately 17 metric tonnes of clinical waste per day from medical facilities nationwide. Its main facility in Peninsular Malaysia is the RM16.8 million Kamunting Incineration Plant with a capacity of 18 tonnes per day. In Sabah, the new portable incinerator in Lahad Datu is poised to support the existing facility in Lok Kawi by May 2011. The RM3.5 million portable incinerator is a modular plant that can be dismantled and set up at a different location.

Quality ExcellenceFMS services are certified to ISO 9001:2008; ISO 14001:2004, OHSAS 18001:2007, ISO 13485: 2003 and MS 1722:2005 standards. The services also comply with the best practices and guidelines of leading international organisations in their fields, including the World Health Organization, the American Society for Hospital Engineering, the Institute of Healthcare Engineering and Estate Management, the European Union Emission Standards and the British Institute of Cleansing Science, among others. The Group also has the necessary expertise to assist the hospitals in Malaysia in their quest to be accredited by the Malaysian Society for Quality in Health (“MSQH”) or Joint Commission International (“JCI”).

Faber’s IFM Services comply with the best practices and guidelines of international organisations to improve healthcare services.

Schematic drawing of the new portable incinerator in Lahad Datu, Sabah.

The Bukit Beruntung Laundry Plant caters to the rising needs for Linen and Laundry Services in the Klang Valley and Selangor.



Striving for Growth

20092008


2010

0.5

0.7

0.6

20092008

(RM Million)Revenue

2010

18.9

31.943.8

FABER FACILITIES SDN BHD (“FFSB”)

In 2010, FFSB successfully developed several growth areas, making inroads into multiple site projects, which include hypermarkets, and the stations and offices of the Light Rail Transit (“LRT”). The company also secured new contracts for two private medical centres and an IFM contract for Menara Worldwide, which is a Green Building Index (“GBI”) rated office tower. FFSB’s foray into implementing energy performance management systems will allow continuous improvement of energy efficiency for its clients. This programme decreases energy consumption and contributes to creating healthier micro (interior) and macro (community) environments. Faber’s Green Building and Renewable Energy Services offerings are intended to promote environmentally sustainable Green Buildings, which are designed, constructed and operated in an efficient manner with regards to the utilisation and conservation of natural resources.

As part of the initiatives to increase customer service levels, FFSB is in the midst of setting up a mobile unit for the convenience of its clients. The mobile unit will have at its disposal a specially designed van to house equipment and tools to facilitate the mobile team in undertaking Planned Preventive Maintenance (“PPM”) for Mechanical and Engineering (“M&E”) services at existing sites managed by FFSB. The team will also be able to attend to major M&E breakdowns and repairs, which include both scheduled and unscheduled maintenance works. The mobile team will comprise various technical specialists who are able to attend to any complex breakdowns immediately without the need to outsource. At the outset, the mobile unit will cater for clients in the Klang Valley.

FINANCIAL REvIEW

For financial year 2010, FFSB increased its revenue by 37.3% to RM43.8 million from RM31.9 million the previous year. The favourable variance resulted from new contracts secured in Malaysia and India. Local projects contributed RM14.9 million to total revenue while FFSB’s Indian operations accounted for RM28.9 million. FFSB achieved RM0.6 million in PBT as compared to RM0.7 million in 2009.

Pasar Seni LRT Station, Kuala Lumpur.Mahkota Medical Centre, Malacca. Menara Worldwide, Kuala Lumpur.


Striving for Growth

oPERATIoNS IN MALAYSIA

PENETRATING NEW INDUSTRY SECToRS

FFSB secured five new contracts in 2010 worth a combined RM6.1 million annually:


Mercu UEM, Kuala Lumpur.Persada PLUS in Selangor.

Mahkota Medical Centre, MalaccaFFSB has secured a two-year contract to provide cleaning services to this private medical centre, commencing May 2010. The Mahkota Medical Centre consists of 288 beds in six wards, an Intensive Care Unit, a Coronary Care Unit and a Cardiac Intensive Care Unit.

Kuantan Medical Centre, PahangFFSB is providing cleaning services to this 67 bedded private hospital under a two-year contract, which started in July 2010.

MAINTAINING oUR MoMENTUM

FFSB’s reliable service level coupled with growing client confidence built over the years has resulted in the renewal of several long term contracts worth RM10.8 million annually. These IFM service contracts include:• Kota Iskandar (formerly known as the Johor State New

Administrative Centre)• TheInternationalMedicalUniversity• MercuUEM• PersadaPLUS• FaberTowers• Fivecondominiumandapartmentblocks

Apart from Kota Iskandar, which is located in Nusajaya, Johor, all other sites are located in the Klang Valley.

Rangkaian Pengangkutan Integrasi Deras Sdn Bhd (“Rapid KL”)This project involves IFM for 49 LRT stations and two main offices along the Kelana Jaya-Gombak and Ampang-Sri Petaling lines in the Klang Valley. The annual contract is for two years beginning August 2010 with an option to extend for a further one-year period.

Tesco Kajang, SelangorFFSB has embarked to provide IFM for multi-sites such as hypermarkets. The one-year IFM contract for Tesco Kajang, which commenced in April 2010, will serve as the platform for FFSB to expand its scope of clients in this area.

Menara Worldwide, Kuala LumpurThis is the first Green Building Index (“GBI”) rated office tower maintained by FFSB since November 2010 and comes in the wake of Faber’s drive to expand on its green IFM services. The 25-storey with a 4-level podium block Menara Worldwide, which is strategically located in Kuala Lumpur’s Golden Triangle, is rated Grade A under Malaysia’s fledging GBI. Green buildings are designed to save energy and resources, recycle materials and reduce the emission of toxic substances.



Striving for Growth

Fortis Hospital, Noida, India.

oPERATIoNS IN INDIA

FFSB’s operations in India are undertaken by the following companies:

Faber Star Facilities Management Limited (“Faber Star”)Based in New Delhi, Faber Star is currently undertaking six projects worth a combined total value of RM6.5 million annually, including FEMS and BEMS for four hospitals under the Fortis Healthcare Group (“Fortis”) and FEMS for a residential and commercial building. Based on its track record of consistent quality and efficient services, Faber Star is confident of securing further projects from Fortis, which operates numerous hospitals in India. This will enable Faber Star to seize vast growth opportunities in this regional market.

Faber Sindoori Management Services Private Limited (“Faber Sindoori”)Faber Sindoori has five contracts to provide BEMS and 37 contracts for CLS with the Apollo Group of Hospitals, which is one of the largest hospital chains in India. Additionally, Faber Sindoori is also providing FEMS for the Rajiv Gandhi International Airport in Hyderabad. The combined contract value of these projects is RM24.8 million per annum.

Tolstoy House, New Delhi, India.

EMBRACING QUALITY To IMPRovE WoRK PRoCESSES

FFSB achieved the OHSAS 18001:2007 certification for the Safety and Health Management System in May 2010. It also successfully renewed its ISO 9001:2008 certification for another three years beginning August 2010. Armed with these certifications, FFSB will be in a better position to compete more effectively in securing new contracts, while improving its operational efficiency and enhancing business operations.

Apollo Group of Hospitals: Rajashtan, India.


FABER L.L.C.

Faber L.L.C. is a joint venture company based in Dubai, the United Arab Emirates (“UAE”) with Faber holding 75.0% beneficial shareholding. The entity was incorporated in Dubai to tap IFM opportunities in the region by providing the Group with a presence in this buoyant market.

FINANCIAL REvIEW

Faber L.L.C. has increased its revenue for the year under review to RM224.0 million against RM123.2 million in 2009. The PBT for 2010 also improved to RM45.7 million compared to RM33.0 million in 2009.

20102009


33.0

45.7

20102009

(RM Million)Revenue

123.2

224.0

Striving for Growth


BUILDING oN CoNSISTENCY

Sheikh Khalifa Medical CityOn 16 October 2010, the company secured a three-year contract for the provision of HSS for the Sheikh Khalifa Medical City (Main Campus) and affi liated buildings in Abu Dhabi, valued at RM20.0 million. The contract scope includes a Surgical Pavillion, a Medical Pavillion, Outpatient Specialty Clinics, Abu Dhabi Health Services Co (“SEHA”) buildings, Facilities and Home Care Building, Cleanco Offi ces, Medical Waste Store, General Warehouse and Medical Gas Cylinder Store. The facilities and buildings are part of the Sheikh Khalifa Medical City, which is managed by Cleveland Clinics and accredited by Joint Commission International (“JCI”).

Sheikh Khalifa Medical City.

Madinat Zayed – Zone 1Faber L.L.C. is in the second year of a contract to improve, upgrade and maintain the infrastructure facilities and projects by the Western Region Municipality (“WRM”) in the Emirate of Abu Dhabi. The contract worth RM129.4 million commenced on 1 June 2009 and will cease with effect from 1 June 2011. Madinat Zayed & LiwaFaber L.L.C. has a second contract from the WRM to provide civil, mechanical and electrical maintenance for two residential projects also in the Emirate of Abu Dhabi. The contract worth RM55.4 million commenced on 3 March 2009 and had ceased with effect from 3 March 2011.

EARMARKING NEW GRoWTH AREAS

Although the Government Concession ensured resilient earnings over the years, Faber sees the need to expand its operations to include other aspects of IFM. Catalysing on the experience and expertise gathered over 15 years in HSS, Faber will strategically leverage on its effi cient and effective models of operations to undertake specialised IFM for other sectors.

The Group has taken a proactive stance and has embarked on training programmes to equip its employees with the necessary skills required to tap into other industry sectors, which include oil and Gas (“o&G”) Instrumentation, Airports and Ports. The demand for IFM services is expected to increase in the markets where Faber operates, and the trend of outsourcing to IFM service providers is rapidly growing. Annually, Faber allocates a considerable amount of investment in training, which also includes training for IFM services in new sectors to enhance its human resources’ competencies and technical skills. The investment in continuous training and education for technical and professional employees’ development are central in the Group’s key business focus and strategy, which is the expansion of its IFM business.


Operations ReviewProperty Development

Striving for Growth

20092008

(RM Million)Profit Before Tax

2010

42.728.1

15.4

20092008

(RM Million)Revenue

2010

153.3122.5

69.1

Property Development remains a principal activity of Faber, consistently contributing positively to the Group’s results by delivering niche and innovative properties to property buyers and investors over the years. The flagship properties of the Group in Taman Desa, Taman Danau Desa and Laman Rimbunan, Kepong in Kuala Lumpur have over the years appreciated in value as these are developments located in prime locations within established townships with excellent infrastructure. Previous projects such as Danau Villa in Taman Danau Desa comprising 64 lakeside villas and Phase 1, 2 and 3 of Laman Rimbunan, which were completed and handed over to purchasers have chalked up substantial capital appreciation.

During the financial year under review, this Division launched two upmarket property developments namely Armada Villa in Taman Danau Desa and Areca Residence in Laman Rimbunan, Kepong. Armada Villa, a high-end lakeside development launched in April 2010, comprises 45 units of semi-detached houses and bungalows. Meanwhile, Section 1 and 2 of Areca Residence were launched in November 2010, which comprises 102 units of semi-detached houses. The growing market confidence in Faber’s properties coupled with the improved property market sentiment has resulted in very successful launches for both these properties. More than 70% of the units were sold within two days of the launching. The keen interest of repeat customers for these latest launches further reinforces this inference. Indeed, the Division’s shift towards innovative and niche property products has proven to be the right strategy to contribute positively towards the Group’s revenue.

FABER DEvELoPMENT HoLDINGS SDN BHD (“FDH”)FINANCIAL REvIEW

The Group’s property arm, FDH registered a decline in revenue from RM122.5 million in 2009 to RM69.1 million for the year under review. Correspondingly, FDH’s PBT also dipped to RM15.4 million as compared to RM28.1 million in 2009.

The decline in financial performance was a result of the Group’s decision to defer three project launches in year 2009 namely Armada Villa, Areca Residence and Vila Prima, which were eventually launched in April 2010, November 2010 and February 2011 respectively. Prior to these launches, FDH took the opportunity to refine the designs in meeting the demand of potential buyers and to capitalise on the right timing to ride on the upswing in the property market in 2010. With the staggered launches in 2010 and early 2011, the Division’s 2011 financial performance is expected to improve.

CoMPLETED PRojECTS

• Matahari(3-storeyTerraceHouses) Phase 3 Laman Rimbunan Kepong, Kuala Lumpur Launched in March 2008, all the 193 units of 3-storey terrace houses have been fully sold in 2009. The houses with an

average built-up area of 3,025 sq ft and priced between RM550,800.00 and RM1.0 million were completed and handed over to purchasers in March 2010.

• TamanHilltopPerdana(3-storeySemi-detachedHousesandBungalows) Kota Kinabalu, Sabah Launched in August 2008, all 32 units of 3-storey semi-detached houses and 2 bungalows in this development have been

completed. To date, 23 units with an average built-up area of 3,000 sq ft and priced from a minimum of RM0.8 million have been sold.


Operations ReviewProperty Development (continued)

Striving for Growth

CURRENT PRojECTS

• ArmadaVilla(Semi-detachedHousesandBungalows) Taman Danau Desa, Kuala Lumpur This exclusive residential enclave with a Gross

Development Value (“GDV”) of RM140.5 million was launched in April 2010 and has already achieved 77% sales. A joint venture with Dewan Bandaraya Kuala Lumpur (“DBKL”), the lakeside development comprises 40 semi-detached houses and 5 bungalows complete with a clubhouse spread across 5.64 acres. Priced between RM2.6 million and RM3.4 million, thesemi-detached houses feature an average built-up area of 3,944 sq ft. The bungalows offer an averagebuilt-up area of 6,365 sq ft and are available in four unique designs, two of which include private swimming pools. The units, which are priced from RM4.7 million to RM7.5 million, are scheduled for completion in April 2013.

• ArecaResidence(3-storeySemi-detachedHouses) Section 1 and 2: Laman Rimbunan, Kepong, Kuala Lumpur The last section of the final phase of this township,

the Areca Residence development with a GDV of RM185.0 million has received exceptional response since its launch in November 2010. House buyers have already snapped up 80% of the 102 units of 3-storeysemi-detached houses. The development with perimeter fencing, consists of three sizes of houses ranging from built-up areas of 3,070 sq ft to 4,295 sq ft. Priced from RM1.48 million to RM2.6 million, this project is scheduled to be completed by November 2012.

• VilaPrima(4-storeyLinkVillasandBungalows)TamanDanau Desa, Kuala Lumpur

FDH’s latest exclusive offering is Vila Prima, launched in February 2011. It is strategically located at Taman Danau Desa within a gated and guarded community. The lakeside development with a GDV of RM148 million caters for discerning house buyers who are attracted by the modern design and innovative features including individual glass lifts and a minimum of four parking bays per unit. Built over a land area of 2.77 acres, this modern resort concept project consists of 31 unitsof semi-detached houses and 3 bungalows with average built-up areas of 4,500 sq ft and 5,800 sq ft respectively. The project also features a clubhouse for the exclusive use of the residents. The prices range from RM3.5 million to RM6.1 million. Vila Prima is targeted for completion by end 2013. Vila Prima represents another significant milestone for the Group’s Property Development Division.

These two developments of Areca Residence in Laman Rimbunan, Kepong and Vila Prima in Taman Danau Desa are the final developments of its respective neighbourhoods.

FUTURE PRojECTS

• ArecaResidence(3-storeySemi-detachedHouses)Section 3:Laman Rimbunan, Kepong, Kuala Lumpur

The final development in Laman Rimbunan, Section 3 of Areca Residence consists of 54 units of 3-storey semi-detached houses. The units with built-up of 3,372 sq ft are intended to be priced from RM1.7 million to RM2.3 million and are scheduled for launch by mid 2011.

• ProposedHigh-EndCondominiumat Persiaran Gurney, Kuala Lumpur The 2.5-acre parcel of prime land at Persiaran

Gurney is earmarked for the development of 2 blocks of 17-storey high-end condominium comprising 192 units. The condominium project is located within a 2 km radius of the Kuala Lumpur City Centre (“KLCC”). The project features an infinity pool and unique interior designs, which allow residents to enjoy the green landscape surrounding the area with natural lighting. Pending approval from the local authorities, the project is expected to be launched by the fourth quarter of 2011.

• LuckyHeights,KotaKinabalu,Sabah FDH plans to develop a high-end condominium

featuring 413 units on a 5-acre piece of land in Lucky Heights. The development is scheduled to be launched in 2012.

FoCUSING oN INNovATIvE PRoDUCTS FoR THE NICHE MARKET

Over the years, Faber has shifted its focus to the high-end market segment in its provision of property products and solutions for a vibrant and resilient domestic market. The Group will continue to cater to the high-end niche market by leveraging its expertise and experience as well as its comparative advantage in offering property solutions with innovative designs and quality finishing.

Currently, the Quality Assessment System in Construction (“QLASSIC”) programme is being undertaken for Armada Villa, Areca Residence and Vila Prima. QLASSIC measures and evaluates the quality of workmanship of construction work based on the relevant approved standards assessed by the Construction Industry Development Board (“CIDB”). By adopting QLASSIC standards in our development projects, we are confident of enhancing our delivery of quality properties to purchasers.


Operations ReviewProperty Development (continued)

Striving for Growth

Armada Villa - luxurious lakeside bungalows in Taman Danau Desa, Kuala Lumpur. Areca Residence - contemporary tropical living that fl ourishes privately in the heart of Kepong, Kuala Lumpur.

Vila Prima is immersed in the essence of exclusivity.

INTENSIFYING EFFoRTS To SUSTAIN PERFoRMANCE FoR IFM AND PRoPERTY DEvELoPMENT

2010 was another year in which Faber sustained its financial performance by capitalising on opportunities in both the IFM and Property Development Divisions. At the same time, the Group also enhanced its operational performance via its commitment to a culture of continuous improvement. Faber will continue to build on the strides it has made in the past few years and step up its expansion plans for its core businesses. For IFM, there is still a lot of growth opportunities in the UAE and with the focus on accelerating expansion in India, the Group is optimistic that its business model will continue to sustain mid and long term growth.


We focus on the smallestof details...Enriching Lives


Syed A Hamid bin Syed A Rahman

Chief Executive Offi cerFaber Medi-Serve Sdn Bhd

We pride ourselves with our human capital’s unwavering level of commitment. We are inspired to create a bett er environment for our people, stakeholders and the society.

CORE VALUE

Passionate We pride ourselves with our human capital’s unwavering level of commitment. We are inspired to create a bett er environment for our people, stakeholders and the society.


Performance Review

5-Year Group Financial Highlights

Profit Before Tax

0(RM Million)

75 150

2006 96.2

99.42007

111.52008

129.22010

141.22009

Revenue

0(RM Million)

300 600 900

2006 591.0

669.72007

2010 888.8

805.32009

661.22008

Earnings Per Share

0(Sen)

25 50

162007

232009

222010

432008

2006 13

Shareholders’ Funds

0(RM Million)

261.82006

318.12008

448.92010

389.22009

296.32007

Total Assets

0(RM Million)

300

100

600

200

900

300

2010 989.6

890.52009

759.42008

890.02007

2006 851.1

Net Tangible Assets Per Share

0(Sen)

50 100

2006 85

1142010

802007

772008

972009

150

1200

400 500


Performance Review

Group Financial SummarySTATEMENTS oF FINANCIAL PoSITIoN AS AT 31 DECEMBER IN RM MILLIoN 2006 2007 2008 2009 2010ASSETS

Non-current assets 378.0 158.7 172.5 188.9 154.6 Current assets 473.1 519.8 586.9 701.6 835.0 Assets of disposal group/Non-current asset classified as held for sale - 211.5 - - -

ToTAL ASSETS 851.1 890.0 759.4 890.5 989.6

EQUITY AND LIABILITIES Equity attributable to owners of the parent

Share capital 298.0 363.0 363.0 363.0 363.0Share premium 116.0 116.0 116.0 116.0 116.0 Redeemable Convertible Preference Shares 180.0 115.0 - - - Other reserves 26.1 13.5 (0.3) (0.8) (4.3)Accumulated losses (358.3) (311.2) (160.6) (89.0) (25.8)

261.8 296.3 318.1 389.2 448.9

Non-controlling interests 82.1 106.4 59.1 67.2 67.0

Total equity 343.9 402.7 377.2 456.4 515.9 Non-current liabilities 272.9 208.4 193.5 183.3 166.6Current liabilities 234.3 211.8 188.7 250.8 307.1Liabilities directly associated with assets classified as held for sale - 67.1 - - -

Total liabilities 507.2 487.3 382.2 434.1 473.7

ToTAL EQUITY AND LIABILITIES 851.1 890.0 759.4 890.5 989.6

Net tangible asset per share (sen) 85.4 80.1 77.3 97.5 113.6Current ratio (times) 2.0 2.5 3.1 2.8 2.7Liquidity ratio (times) 0.8 1.0 1.7 1.2 0.9Gearing ratio (times) 1.0 0.7 0.6 0.5 0.4

INCoME STATEMENTS AS AT 31 DECEMBER IN RM MILLIoN 2006 2007 2008 2009 2010CoNTINUING oPERATIoNS

Revenue 591.0 669.7 661.2 805.3 888.8

Earnings before interest, tax, depreciation and amortisation 121.2 127.5 143.0 169.0 158.2

Profit before tax 96.2 99.4 111.5 141.2 129.2Income tax expense (24.9) (25.4) (29.8) (34.8) (25.8)

Profit from continuing operations, net of tax 71.3 74.0 81.7 106.4 103.4

Discontinued operations Profit/(loss) from discontinued operation, net of tax (6.6) 3.3 93.2 (0.3) -

Profit net of tax 64.7 77.3 174.9 106.1 103.4

Attributable to:

Owners of the parent 36.7 52.0 155.7 82.7 78.8 Non-controlling interests 28.0 25.3 19.2 23.4 24.6

64.7 77.3 174.9 106.1 103.4

Earnings per share (sen) 12.8 16.0 42.9 22.8 21.7Earnings before interest, tax, depreciation and amortisation as a percentage of revenue (%) 21 19 22 21 18Pre-tax profit as a percentage of revenue (%) 16 15 17 18 15Pre-tax profit as a percentage of shareholders’ funds at year end (%) 37 34 35 36 29


Revenue by Segment(RM Million)

Profit /(Loss) Before Tax by Segment(RM Million)

Performance Review

Group Quarterly Performance

Integrated Facilities Management Property Development Others/Elimination

FoR THE YEAR ENDED 31 DECEMBER 2010 Quarter

1st 2nd 3rd 4th Total

RM’000Revenue 183,987 270,216 230,694 203,949 888,846Operating expenses (154,424) (220,670) (183,802) (181,051) (739,947)Other Income 1,504 2,118 2,178 3,487 9,287Earnings before interest, taxation, depreciation and amortisation 31,067 51,664 49,070 26,385 158,186 Profit before tax 23,873 44,439 41,640 19,208 129,160 Profit attributable to owners of the parent 14,394 32,466 29,014 2,906 78,780Earnings per share (sen) 4.0 8.9 8.0 0.8 21.7 BY SEGMENT Quarter 1st 2nd 3rd 4th Total

RM’000 Revenue Integrated Facilities Management 181,857 249,673 221,051 167,194 819,775 Property Development 2,130 20,543 9,643 36,755 69,071

Group 183,987 270,216 230,694 203,949 888,846

Profit before tax Integrated Facilities Management 28,947 45,225 48,755 13,295 136,222 Property Development (1,744) 2,798 1,563 12,802 15,419 Others/Elimination (3,330) (3,584) (8,678) (6,889) (22,481)

Group 23,873 44,439 41,640 19,208 129,160

28.9

2.8

48.8

12.8

Q4Q3Q1 Q2

(1.7

)

45.2

1.6

13.3

(3.3

)

(3.6

)

(8.7

)

(6.9

)

0

20

-20

40

60

167.

2

Q4Q3

2.1

Q1 Q2

181.

9

249.

7

20.5 36

.8

221.

1

0

90

180

270

9.6


Performance Review

Group Statement of value Added

STATEMENT oF vALUE ADDED 2010 2009 RM Million RM Million

vALUE ADDED

Revenue 889 805Other income 1 2 Interest income 8 5Operating expenses (567) (487)Finance cost (7) (7)

value added available for distribution 324 318 DISTRIBUTIoN

To Employees Employee cost 172 156

To Government Taxation 26 35

To Shareholders Dividend 16 11 Non-controlling interests 25 23

Retained for reinvestment and future growth Depreciation, amortisation 22 21 Retained earnings 63 72

Total distributed 324 318

DISTRIBUTIoN oF vALUE ADDED

2010 2009

Employee cost

Taxation Depreciation, amortisation & retained earnings

Dividend & Non-controlling interests

53% 49%

8% 11%

13%11%

26% 29%


Performance Review

Share Price Movement

SHARE PRICE MovEMENT FoR THE PERIoD FRoM 31 MARCH 2010 To 31 MARCH 2011

Highest volume during this period is 177,159 on 13 january 2011

Price RM Date

Highest 3.29 22 September 2010

Lowest 1.57 2 March 2011

1.40 1211

1.711261

2.02

1311

2.33

1361

2.64

1411

2.95

1461

3.26

1511

Pri

ce p

er u

nit

1 Jul 2010 4 Nov 2010 31 Jan 2011

Faber FBM KLCI

1561


Performance Review

Group Financial Calendar

25 February 2010• Announcementoffinancialresultsforthe4th

quarter ended 31 December 2009.• Announcementofproposedfinaldividendfor

fi nancial year 2009.• Announcement of KPI Targets for financial

year 2010.

3 March 2010Analysts and Media Briefi ng.

30 March 2010Payment of RSLS coupon due for the fi rst six months from 1 October 2009 to 31 March 2010 and partial redemption of cumulative outstanding balance of RSLS amounting to RM6.2 million.

5 May 2010Announcement of fi nancial results for the 1st

quarter ended 31 March 2010.

18 May 201047th Annual General Meeting.

19 May 2010Announcement on the renewal of the contract awarded by the Department of Municipal Affairs, Western Region Municipality, Emirate of Abu Dhabi for residential maintenance with an estimated total contract price of RM58 million annually.

23 june 2010Payment of fi nal dividend of 6% less 25% income tax per ordinary share of RM1.00 each for fi nancial year ended 31 December 2009.

12 january 2011• Announcement on the non-renewal of the contract awarded by the Department of Municipal Affairs, Western Region

Municipality, Emirate of Abu Dhabi for infrastructure maintenance with an estimated total contract price of RM129 million annually.

• Announcement on the non-renewal of the contract awarded by the Department of Municipal Affairs, Western RegionMunicipality, Emirate of Abu Dhabi for residential maintenance with an estimated total contract price of RM55 million annually.

25 February 2011• Announcementoffinancialresultsforthe4th quarter ended 31 December 2010• AnnouncementofKPITargetsforthefinancialyear2011• Announcementofproposedfinaldividendforfinancialyear2010.

17 March 2011Announcement on the Proposed Par Value Reduction, Proposed Share Premium Reduction and Proposed Amendment to the Memorandum of Association of FGB to facilitate the Proposed Par Value Reduction.

31 March 2011Payment of RSLS coupon due for the fi rst six months from 1 October 2010 to 31 March 2011 and partial redemption ofcumulative outstanding balance of RSLS amounting to RM6.1 million.

5 july 2010Announcement on the award of contract by Abu Dhabi Health Services Company (“SEHA”), Emirate of Abu Dhabi, for hospitals maintenance with an estimated total contract price of RM20.38 million for athree-year completion period.

5 August 2010• Announcement of financial results for the 2nd quarter ended

30 June 2010.• Announcement on the resignation of Dato’ Rosli bin Sharif as

Non-Independent Non-Executive Director of Faber.• AnnouncementontheappointmentofDato’MohdIzzaddinbinIdris

as Non-Independent Non-Executive Director of Faber.

1 September 2010Announcement on the appointment of Suhaimi bin Halim asNon-Independent Non-Executive Director of Faber.

30 September 2010Payment of RSLS coupon due for the second six months from 1 April 2010 to 30 September 2010 and partial redemption of cumulative outstanding balance of RSLS amounting to RM6.1 million.

10 November 2010Announcement on Share Purchase Agreement entered into by and amongst Faber Facilities Sdn Bhd (“FFSB”), a wholly owned subsidiary of FGB, Singa Real Estates Ltd (“SREL”) and Faber Star Facilities Management Ltd (“Faber Star”) in relation to the proposed acquisition by FFSB or any person nominated by FFSB of 490,000 equity shares of RM0.69 each, representing 49% of the total issued, subscribed andpaid-up equity share capital of Faber Star which are held by SREL andits nominees for a purchase price of RM699,000.00.

16 November 2010Announcement of fi nancial results for the 3rd quarter ended30 September 2010.


Performance Review

Group Manpower Summary

EMPLoYEE CoMPoSITIoN BY LEvEL 2010

Managerial

Non-Executive

Executive

Malay/Bumiputera

Indian

Chinese

EMPLoYEE CoMPoSITIoN BY ETHNICITY 2010

Others

85.0%

12.4%

2.6%

MANPoWER STRENGTH BY REGIoNas at 31 December 2010

2010

43.5%53.8%

2.7%

3.0%

90.8%

0.7%

5.5%

Total:7,358

Malaysia

United Arab Emirates

India


Performance Review

Group Manpower Summary (continued)

96.1%

Executive Emerging Leadership Programmeand Continuing Education Programme

IFM (Concession)

IFM (Non-concession) Corporate Offi ce

Property Development

86.1%

3.5%

3.5%

6.9%

91.2%

2.0%

1.9%

4.9%

Management Non-Executive

TRAINING ExPENDITURE DISTRIBUTIoN 2010

29.0%

13.3%

22.3%

35.4%0.7%

2.4% 0.8%


We are committed towards undertaking our responsibilities...Enriching Lives


S Sunthara Moorthy S Subramaniam

Chief Executive Offi cerFaber Facilities Sdn Bhd

CORE VALUE

Caring We care about attaining our clients’ goals and deliver what we promise. Adopting a warm and friendly approach, we act responsively in all our business dealings.


Corporate Framework

Corporate StructureThe Group’s Key Operating Companies

INTEGRATED FACILITIES MANAGEMENT DIvISIoN

100% Faber Union Sdn Bhd

100% Country View Development Sdn Bhd

100% Faber Grandview Development (Sabah) Sdn Bhd

55% Rimbunan Melati Sdn Bhd

100%Faber Development Holdings Sdn Bhd

PRoPERTY DEvELoPMENT DIvISIoN

100%Faber Facilities Sdn Bhd

100% Faber Facilities Management Sdn Bhd

51% Faber Star Facilities Management Limited

51% Faber Sindoori Management Services Private Limited

75% Faber L.L.C.

60% Healthtronics (M) Sdn Bhd

60% Fresh Linen Services (Sabah) Sdn Bhd

55% Fresh Linen Services (Sarawak) Sdn Bhd

100%Faber Healthcare Management Sdn Bhd

57%

Faber Medi-Serve Sdn Bhd

43%


Corporate Framework

organisation Chart

BoARD oF DIRECToRSAudit and Risk Commitee

Nomination and Remuneration Committee

Investment Committee

MANAGING DIRECToR CoRPoRATE oFFICE

oPERATIoNS

Corporate Services

Corporate Communications

Corporate Human Resourceand Administration

Corporate Finance and Investor Relations

Corporate Organisational Improvement and Compliance

Corporate Legal and Secretarial

INTEGRATED FACILITIES MANAGEMENT

PRoPERTY DEvELoPMENT

Concession

Non-Concession

^ member of the Malaysian Institute of Certified Public Accountants * member of the Malaysian Institute of Accountants

BoARD oF DIRECToRS

No

MIN

ATIo

N A

ND

R

EMU

NER

ATIo

N

CoM

MIT

TEE

Name

DATo’ IKMAL HIjAz BIN HASHIM

ADNAN BIN MoHAMMAD

DATUK zAINAL ABIDIN BIN ALIAS

DATUK MoHAMED zAIN BIN MoHAMED YUSUF

DATo’ MoHD IzzADDIN BIN IDRIS

oH KIM SUN^

ELAKUMARI A/P KANTILAL*

PUASA BIN oSMAN

SUHAIMI BIN HALIM

ANNUAR MARzUKI BIN ABDUL AzIz

Chairman/Independent Non-Executive

Managing Director

Senior Independent Non-Executive

Independent Non-Executive

Non-Independent Non-Executive






AU

DIT

AN

D R

ISK

Co

MM

ITTE

E

Position

Chairman Member

Corporate InformationCorporate Framework

INvE

STM

ENT

CoM

MIT

TEE


Corporate Framework

51Faber Group Berhad l Annual Report 2010

Corporate Information (continued)

2010 April l Faber Development Holdings

Berhad launched Armada Villa in Taman Danau Desa, Kuala Lumpur with a Gross Development Value (“GDV”) of RM140.5 million.

40 semi-detached houses and 5 bungalows complete with a clubhouse spread across 5.64 acres.

Novemberl Areca Residence in

Kepong, Kuala Lumpur was the second property development launched by Faber Development Holdings Berhad with a GDV of RM185.0 million.

102 units of 3-storey semi-detached houses.

200918 Marchl Faber L.L.C. was awarded

contracts by the Department of Municipal Affairs, Western Region Municipality, Emirate of Abu Dhabi for residential maintenance. The annual total contract is estimated at RM62 million.

23 Novemberl Faber L.L.C. was awarded a

contract by the Department of Municipal Affairs, Western Region Municipality, Emirate of Abu Dhabi for infrastructure maintenance with an estimated annual total contract price of RM144 million.

30 Decemberl Exit from Food and Nutritional

Services upon completion of the disposal of Kesan Suci Sdn Bhd.

200818 Februaryl The sale of Sheraton Hanoi Hotel

marks Faber’s exit from the Hotel sector.

26 junel Faber Medi-Serve Sdn Bhd

became a wholly owned subsidiary of Faber with the acquisition of the remaining 30% equity interest from Medlux Overseas (Gurnsey) Ltd.

3 Novemberl Capital repayment to Jeram

Bintang Sdn Bhd of RM115 million Redeemable Convertible Preference Shares.

2007Faber paid a dividend of 2% less 27% taxation in respect of FY2006 after a lapse of 22 years.

Group MilestonesCorporate Framework


200430 Septemberl Completed Second

Restructuring Exercise and formation of Special Purpose Vehicle.

5 Novemberl Bursa Malaysia Securities

Berhad (“Bursa Securities”) uplifted Faber’s PN4 condition.

8 Novemberl Faber reclassified under the

Trading/Services Sector on the Main Board of Bursa Securities.

200318 NovemberFaber fell under PN4 condition due to negative shareholders’ funds.

2000Completed the First Debt Restructuring Exercise under the purview of the Corporate Debt Restructuring Committee.

199628 octoberAwarded a 15-year concession for Hospital Support Services to 71 Government hospitals in Perak, Penang, Kedah, Perlis, Sabah and Sarawak. Embarked on service provision for the Integrated Facilities Management Sector.

1993Embarked on expansion and rebranding of the Hotel Division with the tie-up with Starwood International to rebrand some of the hotels to the “Sheraton” brand.

199022 NovemberChanged name to Faber Group Berhad.

1972Merged with Faber Union Sdn Bhd, a property developer company to form Faber Merlin Malaysia Berhad.

19642 january Listed under the Hotel Sector on the Main Board of the Kuala Lumpur Stock Exchange.

196331 May Incorporated as Merlin Hotels Malaysia Berhad. Hotel owner and manager of the “Merlin” brand.

Group Milestones (continued)

Corporate Framework

53Faber Group Berhad l Annual Report 2010


Corporate Framework

our Achievements

Encik Adnan Mohammad, Managing Director of Faber (3rd from left) received the Institute for Infrastructure Asset Management (“IIAM”) Notable Award 2011 for the category of Best Practices – Healthcare Asset Management. The award, conferred by the IIAM (the United States of America) was to acknowledge Faber’s contribution towards its efforts for Healthcare Asset Management. The award ceremony was held in conjunction with the 1st World Congress and Exhibition on Infrastructure Asset Management.

Faber was declared the Winner for the Marketplace Category for companies below RM1 billion market capitalisation at the 3rd StarBiz-ICR Malaysia Corporate Responsibility Awards 2010. Faber was also shortlisted as Finalists for the Workplace and Environment Categories. The event was jointly organised by the STAR Publications (M) Bhd and the Institute of Corporate Responsibility Malaysia.

The 2011 Frost & Sullivan Malaysia Excellence Award for Facilities Management Company of the Year was presented to Faber. Faber was recognised as contributing signifi cantly to effective management in building facilities through the deployment of innovative solutions and services, which is aligned with a sustainable and environmentally conscious objective within the industry sector.

World Congress and Exhibition on Infrastructure Asset

Documents

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