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CONTENTS

Page

Notice o Meeting 1

Corporate Inormation 5

Directors Profle 6

Corporate Governance Statement 9

Statement on Internal Control 14

Audit Committee Report 15

Nomination Committee 19

Remuneration Committee 19

5 Years Group Financial Highlights 20

Chairmans Statement:

English 21

Bahasa Malaysia 27

Chinese 33

Financial Statements:

Directors Report 37

Statement by Directors 42

Statutory Declaration 42

Independent Auditors Report 43

Income Statements 45

Statements o Comprehensive Income 46

Statements o Financial Position 47

Consolidated Statement o Changes in Equity 49

Company Statement o Changes in Equity 51

Statements o Cash Flows 52

Notes to the Financial Statements 54

List o Group Properties 150

Material Contracts 150

Analysis o Shareholdings 151

Other Inormation 154

Form o Proxy Enclosed


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NOTICE OF MEETING

NOTICE IS HEREBY GIVEN THAT the Twenty-Eighth Annual General Meeting o Parkson Holdings Berhad will beheld at the Meeting Hall, Level 16, Oce Tower, No. 1 Jalan Nagasari (O Jalan Raja Chulan), 50200 Kuala Lumpuron 5 December 2011 at 10.00 am or the ollowing purposes:

AGENDA

1. To receive the Directors Report and Audited Financial Statements or the nancial year ended30 June 2011.

2. To approve the payment o a nal single tier dividend o 5.0 sen per ordinary share.

3. To approve the payment o Directors ees amounting to RM273,500 (2010 : RM200,000).

4. To re-elect Directors:

In accordance with Article 98 o the Companys Articles o Association, the ollowing Directorsretire and, being eligible, oer themselves or re-election:

Y. Bhg. Dato Hassan bin Abdul MutalipMr Yeow Teck Chai

In accordance with Article 99 o the Companys Articles o Association, Y. Bhg. Tan Sri AbdRahman bin Mamat who was appointed during the nancial year retires and, being eligible,oers himsel or re-election.

5. To re-appoint Auditors to hold oce until the conclusion o the next annual general meetingand to authorise the Directors to x their remuneration.

6. Special Business

6.1 To consider and, i thought t, pass the ollowing ordinary resolutions:

6.1.1 Authority to Directors to issue shares

THAT pursuant to Section 132D o the Companies Act, 1965 and subject to the approval oall relevant authorities being obtained, the Directors be and are hereby empowered to issueshares in the Company at any time and upon such terms and conditions and or such purposesas the Directors may, in their absolute discretion deem t, provided that the aggregate numbero shares issued pursuant to this resolution does not exceed 10% o the issued and paid-upcapital o the Company or the time being and that such authority shall continue to be in orceuntil the conclusion o the next annual general meeting o the Company.

6.1.2 Proposed Shareholders Mandate or Recurrent Related Party Transactions

THAT approval be and is hereby given or the Company and its subsidiaries to enter intorecurrent related party transactions o a revenue or trading nature which are necessary or itsday-to-day operations as detailed in paragraph 3.3 and with those related parties as set out inparagraph 3.2 o Part A o the Circular to Shareholders o the Company dated 11 November2011 (Related Parties) which has been despatched to the shareholders o the Company,provided that such transactions are undertaken in the ordinary course o business and are onnormal commercial terms which are consistent with the Groups usual business practices andpolicies, and on terms not more avourable to the Related Parties than those generally availableto the public and are not to the detriment o the minority shareholders; and

Note 3

Resolution 1

Resolution 2

Resolution 3Resolution 4

Resolution 5

Resolution 6

Resolution 7

Resolution 8


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THAT authority conerred by this ordinary resolution will only continue to be in orce until:

(i) the conclusion o the next annual general meeting o the Company at which time it willlapse, unless by a resolution passed at the meeting, the authority is renewed;

(ii) the expiration o the period within which the next annual general meeting ater thatdate is required to be held pursuant to Section 143(1) o the Companies Act, 1965 (butmust not extend to such extension as may be allowed pursuant to Section 143(2) o theCompanies Act, 1965); or

(iii) revoked or varied by resolution passed by the shareholders o the Company in generalmeeting,

whichever is the earlier; and

THAT the Directors o the Company be and are hereby authorised to complete and do all suchacts and things to give eect to the transactions contemplated and/or authorised by this ordinaryresolution.

6.1.3 Proposed Renewal o Authority or Share Buy-Back

THAT, subject to the Companies Act, 1965, the provisions o the Articles o Association othe Company, the Bursa Malaysia Securities Berhad (Bursa Securities) Main Market ListingRequirements, and the approvals o all relevant governmental and/or regulatory authorities, theCompany be and is hereby authorised to buy-back such amount o ordinary shares o RM1.00each in the Company as may be determined by the Directors o the Company rom time totime through Bursa Securities upon such terms and conditions as the Directors may deem tand expedient in the interest o the Company provided that:

(i) the aggregate number o shares bought-back does not exceed 10% o the total issuedand paid-up capital o the Company at any point o time; and

(ii) the maximum unds to be allocated or the share buy-back shall not exceed the retainedprots or the share premium account o the Company or both, based on its latest auditednancial statements available up to the date o the share buy-back transaction

(hereinater reerred to as the Proposed Share Buy-Back); and

THAT authority conerred by this ordinary resolution shall commence immediately upon thepassing o this resolution and will only continue to be in orce until:

(i) the conclusion o the next annual general meeting o the Company, unless by ordinary

resolution passed at that meeting, the authority is renewed, either unconditionally orsubject to conditions; or

(ii) the expiration o the period within which the next annual general meeting ater that dateis required by law to be held; or

(iii) revoked or varied by resolution passed by the shareholders o the Company in generalmeeting,

whichever occurs rst; and

THAT authority be and is hereby given to the Directors o the Company to decide in theirabsolute discretion to retain the ordinary shares o RM1.00 each in the Company so purchasedby the Company as treasury shares and/or cancel them and to distribute the treasury shares asshare dividends and/or resell the treasury shares; and

Resolution 9


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FURTHER, THAT authority be and is hereby unconditionally and generally given to the Directorso the Company to take all such steps as are necessary or expedient and/or enter into any andall agreements, arrangements and guarantee with any party or parties to implement, naliseand give ull eect to the Proposed Share Buy-Back with ull powers to assent to any conditions,modications, revaluations, variations and/or amendments (i any) as may be imposed by therelevant authorities.

7. To transact any other business or which due notice shall have been given.

DIVIDEND ENTITLEMENT

NOTICE IS ALSO HEREBY GIVEN THAT a depositor shall qualiy or entitlement to the dividend only in respect o:

(a) shares deposited into the depositors securities account beore 12.30 pm on 6 December 2011 in respect o shares

exempted rom mandatory deposit;

(b) shares transerred into the depositors securities account beore 4.00 pm on 8 December 2011 in respect otransers; and

(c) shares bought on the Exchange on a cum entitlement basis according to the Rules o the Exchange.

The dividend, i approved, will be paid on 21 December 2011 to shareholders on the Register o Members and theRecord o Depositors o the Company at the close o business on 8 December 2011.

By Order o the Board

CHAN POH LANLIM KWEE PENGSecretaries

Kuala Lumpur11 November 2011


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Notes:

1. Proxy

Inrespectofdepositedsecurities,onlyMemberswhosenamesappearintheRecordofDepositorson25November2011shallbeeligibletoattendtheMeeting.

AmemberentitledtoattendandvoteattheAnnualGeneralMeetingisentitledtoappointaproxytoattendandvoteinsteadofhim.AproxyneednotbeamemberoftheCompany.Theinstrumentappointingaproxymustbeinwritingunderthehandoftheappointororhisattorneydulyauthorisedinwritingor,iftheappointorisacorporation,eitherundersealorthehandofanofcerorattorneydulyauthorised.

TheinstrumentofproxyshallbedepositedattheofceoftheRegistraroftheCompany,Level13,OfceTower,No.1JalanNagasari(OffJalanRajaChulan),50200KualaLumpurnotlessthanforty-eight(48)hoursbeforethetimeforholdingtheMeeting.

CompletedFormofProxysentthroughfacsimiletransmissionshallnotbeaccepted.

2. CirculartoShareholdersdated11November2011(Circular)

DetailsonthefollowingaresetoutintheCircularenclosedtogetherwiththe2011AnnualReport:

(i) PartA-ProposedShareholdersMandateforRecurrentRelatedPartyTransactions

(ii) PartB-ProposedRenewalofAuthorityforShareBuy-Back

3. AgendaItem1

ThisitemoftheAgendaismeantfordiscussiononly.TheprovisionsofSection169oftheCompaniesAct,1965requirethattheDirectorsReportandtheAuditedFinancialStatementsbelaidbeforetheCompanyatitsAnnualGeneralMeeting.Assuch,thisAgendaitemisnotabusinesswhichrequiresaresolutiontobeputtovotebyshareholders.

4. Resolution2

ItisproposedthatthefeesfortheDirectorsbeincreasedduetotheincreasingdutiesandresponsibilities.

5. Resolution7

ThisapprovalwillallowtheCompanytoprocuretherenewalofthegeneralmandate(GeneralMandate)whichwillempowertheDirectorsoftheCompanytoissuesharesintheCompanyuptoanamountnotexceedingintotal10%oftheissuedandpaid-upcapitaloftheCompany.Thisauthority,unlessrevokedorvariedatageneralmeeting,willexpireattheconclusionofthenextannualgeneralmeetingoftheCompany.

AsatthedateofthisNotice,nonewsharesintheCompanywereissuedpursuanttothemandategrantedtotheDirectorsatthelastAnnualGeneralMeetingoftheCompanyheldon23November2010whichwilllapseattheconclusionofthisAnnualGeneralMeeting.

TheGeneralMandatewillprovideexibilitytotheCompanyforanypossiblefundraisingactivities,includingbutnotlimited

toplacingofsharesforpurposesoffundingfutureinvestmentprojects,workingcapitaland/oracquisitions.

6. Resolution8

ThisapprovalwillallowtheCompanyanditssubsidiariestoenterintorecurrentrelatedpartytransactionsofarevenueortradingnaturewiththoserelatedpartiesassetoutinparagraph3.2ofPartAoftheCircular,whicharenecessaryfortheGroupsday-to-dayoperationsundertakenintheordinarycourseofbusinessandareonnormalcommercialtermswhichareconsistentwiththeGroupsusualbusinesspracticesandpolicies,andontermsnotmorefavourabletotherelatedpartiesthanthosegenerallyavailabletothepublicandarenottothedetrimentoftheminorityshareholders.

7. Resolution9

ThisapprovalwillempowertheDirectorsoftheCompanytopurchasetheCompanyssharesupto10%oftheissuedandpaid-upcapitaloftheCompanyatanypointoftime.Thisauthority,unlessrevokedorvariedatageneralmeeting,willexpireattheconclusionofthenextannualgeneralmeetingoftheCompany.


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CORPORATE INFORMATION

Board o Directors : Y. Bhg. Tan Sri William H.J. Cheng (ChairmanandManagingDirector)

Y. Bhg. Tan Sri Abd Rahman bin MamatY. Bhg. Dato Hassan bin Abdul MutalipMr Yeow Teck ChaiDr Folk Jee YoongMr Cheng Sin Yeng

Secretaries : Ms Chan Poh LanMs Lim Kwee Peng

Company No : 89194-P

Registered Ofce : Level 14, Oce TowerNo. 1 Jalan Nagasari (O Jalan Raja Chulan)50200 Kuala LumpurTel No : 03-21420155Fax No : 03-21413448Homepage : http://www.lion.com.my/parkson

Share Registrar : Secretarial Communications Sdn BhdLevel 13, Oce TowerNo. 1 Jalan Nagasari (O Jalan Raja Chulan)50200 Kuala LumpurTel Nos : 03-21420155, 03-21418411

Fax No : 03-21428409

Auditors : Ernst & YoungLevel 23A, Menara MileniumJalan DamanlelaPusat Bandar Damansara50490 Kuala Lumpur

Principal Bankers : JPMorgan Chase BankCIMB Bank BerhadRHB Bank BerhadIndustrial and Commercial Bank o China (Malaysia) Berhad

Stock Exchange Listing : Bursa Malaysia Securities Berhad (Bursa Securities)

Stock Name : PARKSON

Bursa Securities Stock No : 5657

Reuters Code : PRKN.KL

ISIN Code : MYL5657OO001


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DIRECTORS PROFILE

Tan Sri William H.J. ChengNon-IndependentChairmanandManagingDirector

Y. Bhg. Tan Sri William H.J. Cheng, a Malaysian, aged 68, was appointed to the Board on 30 March 1989. He was appointedthe Managing Director and the Chairman o the Company on 16 August 2006 and 13 November 2006 respectively.

Tan Sri William Cheng has more than 35 years o experience in the business operations o The Lion Group encompassingsteel, retail, property development, computer, motor and plantation.

Tan Sri William Cheng is the President o The Associated Chinese Chambers o Commerce and Industry o Malaysia andThe Chinese Chamber o Commerce and Industry o Kuala Lumpur and Selangor.

Tan Sri William Chengs other directorships in public listed companies are as ollows:

ChairmanofLionDiversiedHoldingsBerhadandLionForestIndustriesBerhad ChairmanandManagingDirectorofLionCorporationBerhad

He is also the Chairman o Lion AMB Resources Berhad and ACB Resources Berhad and a Director o The CommunityChest, a company limited by guarantee incorporated or charity purposes.

Tan Sri William Cheng has a direct shareholding o 245,539,012 ordinary shares o RM1.00 each and an indirect interestin 280,582,673 ordinary shares o RM1.00 each in the Company. By virtue o his substantial interest in the Company,he is deemed to be interested in the subsidiaries o the Company, both wholly-owned and those set out on page 153o this Annual Report.

Tan Sri William Cheng is the uncle o Y. Bhg. Tan Sri Cheng Yong Kim, a major shareholder o the Company.

Tan Sri William Cheng attended all seven (7) Board Meetings o the Company held during the nancial year ended 30June 2011.

Tan Sri Abd Rahman bin MamatIndependentNon-ExecutiveDirector

Y. Bhg. Tan Sri Abd Rahman bin Mamat, a Malaysian, aged 59, was appointed to the Board on 14 March 2011. He isalso a member o the Audit Committee o the Company.

Tan Sri Abd Rahman graduated with a Bachelor o Economics (Honours) degree rom University Malaya, Malaysia and hasan Advanced Management Programme qualication rom Harvard Business School, Boston, the United States o America.

Tan Sri Abd Rahman joined the Ministry o International Trade and Industry (MITI) as an Assistant Director on 18 April1975 and served in various capacities in MITI or 35 years which included Deputy Trade Commissioner, Malaysian TradeOce, New York, the United States o America; Director o Trade, Malaysian Trade Centre, Taipei, Taiwan; EconomicCounsellor/Trade Commissioner and Deputy Permanent Representative to the United Nations Economic and SocialCommission (ESCAP), Malaysian Trade Oce, Bangkok, Thailand; Special Assistant to the Minister o InternationalTrade and Industry, Tan Sri Radah binti Abdul Aziz; Director, Export Promotion Bureau, Malaysia External Trade

Development Corporation (MATRADE); Director o Industries; Senior Director, Policy and Industry, Services Division;Deputy Secretary-General (Industry); and in September 2006, Secretary-General o MITI, a post Tan Sri Abd Rahmanheld until his retirement on 5 December 2010.

During his tenure in MITI, he also served as MITIs representative on the board o various companies and corporationsincluding Malaysian Industrial Development Authority (MIDA), MATRADE, Johor Corporation, Regional EconomicDevelopment Authority (RECODA) and Lembaga Kena dan Tembakau Negara.

Tan Sri Abd Rahman has represented Malaysia in a number o international meetings, negotiations, conerences andsymposiums and has also contributed towards ormulating, implementing and monitoring policies and programs oninternational trade and industrial growth. He is an honorary member o the ASEAN Federation o Engineering Organisationsand a Malaysian Leader or the High Level Task Force on ASEAN Economic Integration.

He is also a Director o Hiap Teck Venture Berhad, a public listed company.

Tan Sri Abd Rahman attended the one (1) Board Meeting o the Company held during the nancial year ended 30 June2011 subsequent to his appointment.


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Dato Hassan bin Abdul MutalipIndependentNon-ExecutiveDirector

Y. Bhg. Dato Hassan bin Abdul Mutalip, a Malaysian, aged 66, was appointed to the Board on 4 July 2001. He is alsothe Chairman o the Audit Committee, Nomination Committee and Remuneration Committee, and a member o theExecutive Share Option Scheme Committee o the Company.

Dato Hassan holds a Diploma in Police Science rom Universiti Kebangsaan Malaysia, a Certicate in Management romLouisiana State University in the United States o America, a Certicate in Senior Police Administrators rom NationalPolice Academy, Japan and a Certicate in Prosecution rom Police College, Polis DiRaja Malaysia. Dato Hassan is aretired Deputy Commissioner o Police with more than 30 years o experience in the police orce.

Dato Hassan attended all seven (7) Board Meetings o the Company held during the nancial year ended 30 June 2011.

Yeow Teck Chai

IndependentNon-ExecutiveDirector

Mr Yeow Teck Chai, a Malaysian, aged 61, was appointed to the Board on 16 August 2006. He is also the Chairman othe Executive Share Option Scheme Committee, and a member o the Audit Committee, Nomination Committee andRemuneration Committee o the Company.

Mr Yeow holds a Bachelor o Economics (Hons) degree rom the University o Malaya.

Mr Yeow served the Malaysian Industrial Development Authority (MIDA) or 32 years and held the post o DeputyDirector General prior to his retirement in August 2006. He was responsible or the promotion, coordination anddevelopment o the manuacturing and services sectors in MIDA.

Mr Yeow attended six (6) o the seven (7) Board Meetings o the Company held during the nancial year ended 30 June2011.

Dr Folk Jee YoongIndependentNon-ExecutiveDirector

Dr Folk Jee Yoong, a Malaysian, aged 50, was appointed to the Board on 18 October 2001. He is also a member o theAudit Committee and Nomination Committee o the Company.

Dr Folk received his Bachelor o Business degree in Accounting and Secretarial Administration rom the Curtin Universityo Technology in Perth, Western Australia, Bachelor o Economics degree rom the University o Western Australia,Master o Commerce degree in Accounting rom the University o Auckland, New Zealand and Doctor o BusinessAdministration rom the University o South Australia. He is a member o the Australian Society o Certied PractisingAccountants and the Malaysian Institute o Accountants. He also holds a certicate in Investor Relations rom the IRSociety, United Kingdom.

Dr Folk has over 20 years o experience in corporate nance, restructuring, audit and nancial management in diversiedindustries such as mortgage banking, property development, construction, seaood trawling and processing, pulp andpaper, jewellery, oce urniture, multi-level marketing, plastic injection moulding, timber plantation and processing,hospitality and thermo vacuum orming. Between 1984 and 1990, amongst other public accounting rms, he wasattached, to Deloitte, Haskins & Sells, New Zealand and McLaren & Stewart, Perth, Australia. He has also workedwith multi-national rms such as Sinar Mas Group, Raja Garuda Mas Group and Fletcher Challenge Group in variouscountries such as New Zealand, India and Indonesia.

Dr Folk attended six (6) o the seven (7) Board Meetings o the Company held during the nancial year ended 30 June2011.


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Cheng Sin YengNon-IndependentNon-ExecutiveDirector

Mr Cheng Sin Yeng, a Malaysian, aged 59, was appointed to the Board on 29 August 2001. He is also a member o theRemuneration Committee o the Company.

Mr Cheng is a member o the Malaysian Institute o Certied Public Accountants and the Malaysian Institute oAccountants. He was attached to Coopers & Lybrand (now known as PricewaterhouseCoopers) or seven (7) years asan audit assistant. Ater completing his proessional examination as a Certied Public Accountant, he joined the HongLeong Group and was with its Property Division or three (3) years as an Accountant. Mr Cheng joined The Lion Groupin 1982 as the Chie Accountant o Posim Berhad (now known as Lion Forest Industries Berhad). He was subsequentlydesignated the Senior Chie Accountant o the Property & Construction Division and is currently the General Manager- Accounts based in The Lion Group Finance Division.

Mr Cheng attended six (6) o the seven (7) Board Meetings o the Company held during the nancial year ended 30

June 2011.

Save as disclosed above, none o the Directors has (i) any interest in shares in the Company or its subsidiaries; (ii) anyamily relationship with any Director and/or major shareholder o the Company; (iii) any confict o interests with theCompany; and (iv) any conviction or oences within the past 10 years.


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CORPORATE GOVERNANCE STATEMENT

The Board o Directors (Board) recognises the importance o practising and maintaining good corporate governanceto direct the businesses o the Group towards enhancing business prosperity and long term value or its shareholders.The Board is ully committed in ensuring that the highest standard o corporate governance is practised and maintainedthroughout the Group as the underlying principle in discharging its responsibilities.

The Board is pleased to present below a description o how the Group has applied the principles o good governanceand the extent to which it has complied with the best practices set out in the Malaysian Code on Corporate Governance(Code). These principles and best practices have been applied consistently throughout the nancial year ended 30

June 2011 except where otherwise stated herein.

1. DIRECTORS

The Board

The Board is entrusted with the responsibility in leading and directing the Group towards realising long termshareholders values. The Board retains ull and eective control o the Groups strategic plans, overseeing theconduct o the Groups businesses, implementing an appropriate system o risk management and ensuring theadequacy and integrity o the Groups system o internal control.

The Board meets on a quarterly basis, with additional meetings convened as and when necessary. During thenancial year ended 30 June 2011, seven (7) Board Meetings were held and each Director attended at least50% o the total Board Meetings held during the nancial year. Details o attendance and a brie prole o eachmember o the Board are set out in the Directors Prole section o this Annual Report.

Board Composition and Balance

The Board comprises six (6) Directors, ve (5) o whom are non-executive. The current Board compositioncomplies with the Bursa Malaysia Securities Berhad (Bursa Securities) Main Market Listing Requirements (ListingRequirements). The broad range o experience, skills and knowledge o the Directors eectively acilitate thedischarge o the Boards stewardship.

Represented on the Board are our (4) independent non-executive Directors who bring their independent advice,views and judgement to bear on the decision-making process o the Group to ensure that a balanced and unbiaseddeliberation process is in place to saeguard the interests o other stakeholders. As and when a potential conficto interest arises, it is mandatory practice or the Directors concerned to declare their interests and abstain romthe decision-making process.

The Group Chairman also assumes the position o the Groups Managing Director. He brings with him a wealtho over 35 years o experience in the business operations o the Group and possesses the calibre to ensure thatpolicies and strategies approved by the Board are eectively implemented. In view o the vast experience o

the Group Chairman/Managing Director, the Board considers the departure rom the recommended practice oseparating the unctions as appropriate under the present circumstances.

Board Committees

The Board delegates certain unctions to several committees, namely the Audit Committee, Nomination Committee,Remuneration Committee and Executive Share Option Scheme Committee to support and assist in dischargingits duciary duties and responsibilities. The respective committees report to the Board on matters considered andtheir recommendations thereon. The ultimate responsibility or the nal decision on all matters, however, lieswith the Board.

The Board may orm other committees delegated with specic authorities to act on its behal whenever required.These committees operate under approved terms o reerence or guidelines set out by the Board.


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Supply o Inormation

The Board as a whole and in their individual capacities, have unrestricted access to complete inormation on atimely basis in the orm and quality necessary or the discharge o their duties and responsibilities. Prior to eachBoard meeting, all Board members are urnished with the relevant documents and sucient inormation to enablethem to obtain a comprehensive understanding o the issues to be deliberated upon and senior management othe Group and external advisers are also invited to attend Board meetings to provide their proessional views,advice and explanation on specic items on the agenda in order to arrive at an inormed decision.

Besides direct access to management sta, external independent proessional advisers are also made availableto render their independent views and advice to the Board, whenever deemed necessary and under appropriatecircumstances, at the Companys expense.

The Company Secretaries advise the Board on their duties and obligations, and the appropriate requirements,disclosures and procedures to be complied with in relation thereto. The Company Secretaries are also responsible

in ensuring that Board meeting procedures are ollowed and that applicable rules and regulations are compliedwith.

Appointments to the Board

The Nomination Committee is responsible or recommending the right candidates with the necessary mix o skills,experience and competency to be appointed to the Board and Board Committees to ensure the eectiveness othe Board. Newly appointed Directors will be given an orientation programme to amiliarise themselves with theGroups operations to better understand the Groups businesses.

The process o assessing the Directors is an on-going responsibility o the Nomination Committee and the Board.

The members and terms o reerence o the Nomination Committee are presented on page 19 o this AnnualReport.

Re-election o Directors

In accordance with the Articles o Association o the Company, one-third (1/3) o the Directors shall retire romoce at every annual general meeting and all Directors shall retire rom oce at least once in every three (3)years. Retiring Directors can oer themselves or re-election. Directors who are appointed by the Board duringthe nancial year are subject to re-election by the shareholders at the next annual general meeting ollowing theirappointment.

Directors Training

All members o the Board have attended Bursa Securities Mandatory Accreditation Programme.

The Directors are also encouraged to attend relevant external proessional programmes as necessary to keepabreast o issues acing the changing business environment within which the Group operates.


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During the nancial year, the Directors had participated in the ollowing seminars, orums, conerences andtraining programmes (Programmes):

Name o Directors Programmes

TanSriWilliamH.J. ForumonActivateAsiaInsightIndonesiaCheng 2010NationalEntrepreneursConvention SeminaronSwiftletNestFarmingEnterprise ForumonActivateAsia:VietnaminView InteractionForumforMalaysian&TaiwaneseChambersofCommerceonTrade

between Malaysia and Taiwan Malaysia-InternationalChineseBusinessForum ForumonFightCorruptionbyBusinessCommunity UniversityTunkuAbdulRahman:EntrepreneurialExperienceSharing Interaction Forum with Students of University of Malaya on Prospect and

Opportunity o Future Career SeminaronGoodsandServicesTaxinMalaysia SeminaronHowYouCanParticipate&BenetfromEconomicTransformation

Programme ForumonFamilyBusiness:TheNextGeneration TheAssociatedChineseChambersofCommerceand IndustryofMalaysia

4th Youth Conerence on Entrepreneurship

TanSriAbdRahman SustainabilityProgrammeforCorporateMalaysia-ConsumerProducts,Finance,bin Mamat Technology & Closed End Funds MandatoryAccreditationProgrammeforDirectorsofPublicListedCompanies Bursa-TheBoardsResponsibilityforCorporateCulture-SelectedGovernance

Concerns and Tools or addressing Corporate Culture and Board Perormance TheInstituteofCharteredAccountantsinEnglandandWales-TalkonTheCFO

and Conficts o Interest

DatoHassanbin Bursa-AssessingtheRiskandControlEnvironmentAbdulMutalip SustainabilityProgrammeforCorporateMalaysia-ConsumerProducts,Finance,Technology & Closed End Funds

Bursa-TheBoardsResponsibilityforCorporateCulture-SelectedGovernanceConcerns and Tools or addressing Corporate Culture and Board Perormance

SeminarKenaliPotensiDiri-Dr.Azizan

YeowTeckChai ConferenceonInvestMalaysia2011 SustainabilityProgrammeforCorporateMalaysia-ConsumerProducts,Finance,

Technology & Closed End Funds

DrFolkJeeYoong ShouldtheChineseYuanBeRevalued?-PerspectivesofaScholarfromChina EastAsianEconomicReorganisation:PropagandaandReality PriceandVolumeAnalysisinFuturesTrading ChinasFinancialMarketandInternationalisationofitsNationalCurrency

ManagementBudget2011 GlobalEconomicStatus:ProspectsandChallengesforMalaysia MalaysianCompaniesActandRegulationsandCorporateDisclosurePolicyand

Overview on Chapter 10 o the Listing Requirements - Transactions EastAsianDevelopmentsandVaryingASEANViewsonEastAsianRegionalism GlobalEconomicCrisisSmashEffectSimulator:TheChineseandWorldEconomy Sustainability-NewThinkingforANewandBetterWorld BrandingintheNewMillenia-CreditabilityforAccountingPractices TheRoleofAuditCommitteeinInuencingAuditQuality TheImpactofthe2008FinancialCrisisonChinasRoleinGlobalGovernance SustainabilityProgrammeforCorporateMalaysia-ConsumerProducts,Finance,

Technology & Closed End Funds PracticalstepstoimplementaneffectiveIRprogramme NationalAchieversCongress2011 IslamicFinanceandtheMalaysianCapitalMarkets

IPOorDualListingonHKSE AccessingtheBondMarket


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Name o Directors Programmes

ChengSinYeng SustainabilityProgrammeforCorporateMalaysia-ConsumerProducts,Finance,Technology & Closed End Funds

MSWGSeminaronLessonsfromtheInvestmentGurus:LearningfromBenjaminGraham and Warren Buett

In addition, the Company would arrange site visits or the Directors, whenever necessary, to enhance theirunderstanding o the Groups businesses and have a better awareness o the risks associated with the Groupsoperations.

The Directors are also updated on a continuing basis by the Company Secretaries on new and/or revisedrequirements to the Listing Requirements as and when the same were advised by Bursa Securities (ContinuingUpdates).

The Board views the aorementioned Programmes attended and/or participated by the Directors, and the ContinuingUpdates provided to the Directors as adequate to enhance the Directors skills and knowledge to carry out theirduties as Directors.

The Board will, on a continuing basis, evaluate and determine the training needs o each Director, particularly onrelevant new laws and regulations, and essential practices or eective corporate governance and risk managementto enable the Directors to eectively discharge their duties.

2. DIRECTORS REMUNERATION

The Company has adopted the objective as recommended by the Code in determining the remuneration o executiveDirectors so as to ensure that it attracts and retains the Directors needed to manage the Company and the Groupeectively. Directors do not participate in decisions regarding their own remuneration. The responsibilities ordeveloping the remuneration policy and determining the remuneration packages o executive Directors lie with theRemuneration Committee. Nevertheless, it is the ultimate responsibility o the Board to approve the remuneration

o these Directors. The members and terms o reerence o the Remuneration Committee are presented on page19 o this Annual Report.

Directors ees are recommended by the Board or the approval by shareholders o the Company at the annualgeneral meeting.

For condentiality, the details o the Directors remuneration are not disclosed or each individual Director.The transparency and accountability aspects o corporate governance applicable to Directors remunerationrecommended by the best practices o the Code are deemed appropriately served by the disclosures in the ensuingparagraphs.

The aggregate remuneration o Directors who served during the nancial year ended 30 June 2011 are categorisedas ollows:

Salaries

& OtherFees Emoluments TotalRM000 RM000 RM000

Executive Director 109 451 560Non-executive Directors* 224 224

333 451 784

The number o Directors whose total remuneration all into the respective bands are as ollows:

Number o DirectorsRange o Remuneration (RM) Executive Non-executive*

25,000 & below 225,001 50,000 4550,001 600,000 1

* Including a Director who resigned subsequent to the nancial year.


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3. RELATIONS WITH SHAREHOLDERS AND INVESTORS

The annual general meeting is the principal orum or dialogue with shareholders. Shareholders are providedwith an opportunity to participate in the question and answer session in which shareholders may raise questionsregarding the proposed resolutions at the meeting as well as on matters relating to the Groups businesses andaairs. The Chairman and the Board members are in attendance to respond to shareholders queries.

The Group also values dialogues with institutional investors, und managers and analysts. The Group has beenpractising open discussions with investors/und managers/analysts upon request. In this regard, inormation isdisseminated with strict adherence to the disclosure requirements o Bursa Securities.

The Companys homepage at www.lion.com.my/parkson provides easy access to corporate inormation pertainingto the Group and its activities.

The Board has identied the Company Secretaries to whom concerns may be conveyed and who would bring

the same to the attention o the Board.

4. ACCOUNTABILITY AND AUDIT

The Audit Committee supports the Board in its responsibility to oversee the nancial reporting and the eectivenesso the internal controls o the Group. The Audit Committee comprises our (4) Directors, all o whom areindependent. The terms o reerence and activities o the Audit Committee are set out in the Audit CommitteeReport on pages 15 to 18 o this Annual Report.

Financial Reporting

The Board aims to present a balanced and clear assessment o the Groups position and prospect to the Companysshareholders through the annual nancial statements and quarterly announcements. The Board is also responsiblein ensuring that the accounting records o the Group are properly kept. The Board discusses and reviews therecommendations proposed by the Audit Committee prior to the adoption o the nancial statements o the Groupand o the Company.

Directors Responsibility in Financial Reporting

The Board is satised that or the nancial year ended 30 June 2011, the nancial statements presented give atrue and air view o the state o aairs, results and cash fows o the Group and o the Company. In preparing thenancial statements, the Group has applied, on a consistent basis, the applicable approved accounting standardsand the provisions o the Companies Act, 1965.

Internal Control

The Board has overall responsibility in maintaining a sound internal control system or the Group to achieve itsobjectives within an acceptable risk prole as well as saeguarding shareholders investment and the Groupsassets. An overview o the state o internal control within the Group is set out in the Statement on Internal Controlon page 14 o this Annual Report.

Relationship with the Auditors

The Board has established a ormal and transparent relationship with the auditors. The Audit Committee recommendsthe appointment o the external auditors and their remuneration. The appointment o the external auditors issubject to the approval o shareholders at the annual general meeting whilst their remuneration is determinedby the Board. While the internal auditors attend all meetings o the Audit Committee, the external auditors meetwith the Audit Committee at least twice a year and attend the annual general meeting o the Company.


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STATEMENT ON INTERNAL CONTROL

Introduction

The Board o Directors (Board) acknowledges the importance o maintaining a sound system o internal control tosaeguard shareholders investments and the Groups assets. Guided by the StatementonInternalControl:GuidanceforDirectorsofPublicListedCompanies, the Board is pleased to present the Statement on Internal Control o the Group(excluding associated companies, as the Board does not have control over their operations) pursuant to the BursaMalaysia Securities Berhad Main Market Listing Requirements.

Board Responsibility

The Board arms its overall responsibility or the Groups system o internal control and risk management, and orreviewing the adequacy and integrity o these systems. However, in view o the inherent limitations in any system, suchinternal control systems are designed to manage rather than to eliminate risks that may impede the achievement o theGroups objectives. The systems can thereore only provide reasonable and not absolute assurance against materialmisstatements, rauds or losses. The system o internal control covers risk management and nancial, organisational,operational and compliance controls.

The Board conrms that there is an on-going process o identiying, evaluating and managing signicant risks by themanagement. This process has been put in place or the year and is reviewed periodically by the Board through its AuditCommittee which is supported by the Internal Auditors.

Risk Management

The Board regards risk management as an integral part o business operations. A Corporate Risk Management Frameworkwas developed and documented via a Corporate Risk Management Manual which sets out in a comprehensive mannerthe process adopted by the Group towards risk identication, evaluation, control and monitoring. The Risk ManagementCommittee continues to play a pivotal role in overseeing the implementation o the risk management ramework,periodically reviewing the risk management scorecards and reporting the status to the Audit Committee.

Control and Monitoring Process

The Board is committed to maintaining a strong internal control structure or the proper conduct o the Groups businessoperations. The key elements include:

Anoperationalstructurewithdenedlinesofresponsibilityanddelegationofauthoritytogetherwithahierarchicalstructure o reporting and accountability

Internal policiesand proceduresthatareregularly updatedtoreectchangingrisksor resolveoperationaldeciencies including to clearly dene limits o authority

Adetailedbudgetingprocesswhichrequiresallbusinessunitstopreparebudgetandbusinessplanonanannualbasis

ReviewofkeybusinessvariablesandthemonitoringoftheachievementsoftheGroupsperformanceonaquarterlybasis by the Board and the Audit Committee

Conrmationoftheeffectivenessofinternalcontrolandriskassessmentprocessbythechiefexecutiveofceror general manager o key operating companies by way o completion o the Internal Control Sel-AssessmentQuestionnaireonanannualbasis

Periodicexaminationofbusinessprocessesandsystemsofinternalcontrolbytheinternalauditfunctionwhichregularly submits its reports to the Audit Committee

Adequateinsuranceandphysical safeguardsonmajorassets are inplace toensureassets oftheGrouparesuciently covered

ACodeofEthicsforallemployeeswhichdenestheethicalstandardsandconductatwork

AWhistleblowerPolicyestablishedundertheHumanResourcePolicyManualwhichdenestherightsofinformantsand also the protections accorded them. The channels o escalation are also documented to encourage and enableconcerned parties to report any wrongdoings so that they can be properly addressed

Conclusion

The Board is o the view that the system o internal control in place is generally satisactory and sucient to saeguardall stakeholders interest.


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AUDIT COMMITTEE REPORT

COMPOSITION

As at the date o this Annual Report, the composition o the Audit Committee is as ollows:

Members

Y. Bhg. Dato Hassan bin Abdul Mutalip (Chairman,IndependentNon-ExecutiveDirector)

Y. Bhg. Tan Sri Abd Rahman bin Mamat (IndependentNon-ExecutiveDirector)

Mr Yeow Teck Chai (IndependentNon-ExecutiveDirector)

Dr Folk Jee Yoong (IndependentNon-ExecutiveDirector)

The composition o the Audit Committee complies with Chapter 15 o the Bursa Malaysia Securities Berhad(Bursa Securities) Main Market Listing Requirements (Listing Requirements).

Secretaries

The Secretaries o Parkson Holdings Berhad, Ms Chan Poh Lan and Ms Lim Kwee Peng, are also Secretaries othe Audit Committee.

TERMS OF REFERENCE

Membership

The Audit Committee shall be appointed by the Board rom amongst their number and shall consist o not lessthan three (3) members, all o whom shall be non-executive Directors with a majority o them being independentDirectors. The composition o the Audit Committee shall ulll the requirements as prescribed in the ListingRequirements. The Chairman o the Audit Committee shall be an independent Director appointed by the Board.

MeetingsandMinutes

The Audit Committee shall meet at least our (4) times annually and the Chie Internal Auditor and the ChieFinancial Ocer shall normally be invited to attend the meetings. A majority o independent Directors presentshall orm a quorum. The Audit Committee shall meet with the external auditors without the executive Boardmembers being present at least twice a year.

Minutes o each meeting shall be kept and distributed to each member o the Audit Committee and the Board.The Chairman o the Audit Committee shall report on each meeting to the Board.

Authority

In conducting its duties and responsibilities, the Audit Committee shall have:

(a) the authority to investigate any matter within its terms o reerence.(b) the resources which are required to perorm its duties.(c) ull and unrestricted access to any inormation pertaining to the Company and the Group.(d) direct communication channels with the external and internal auditors.(e) the right to obtain independent proessional or other advice as necessary.() the right to invite other Directors and/or management o the Company to attend any particular Audit

Committee meeting to discuss specic issues.(g) the right to be able to meet with the external auditors, internal auditors or both, excluding the attendance

o other Directors or employees o the Company, whenever deemed necessary.


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Duties

The duties o the Audit Committee are:

(a) To consider the appointment, resignation and dismissal o external auditors and the audit ee.

(b) To discuss with the external auditors, prior to the commencement o audit, the nature and scope o auditand to ensure co-ordination o audit where more than one audit rm is involved.

(c) To review and assess the annual and quarterly nancial statements prior to the approval o the Board,ocusing on:

- going concern assumption- compliance with accounting standards and regulatory requirements- changes in accounting policies and practices

- signicant issues arising rom audit

(d) To discuss problems and reservations arising rom the interim and nal audits, and any matter the auditorsmay wish to discuss excluding the attendance o other Directors and employees o the Company, wheneverdeemed necessary.

(e) To review the external auditors management letter and managements response thereto.

() To establish the ollowing with the internal audit unction:

- review the adequacy o the scope, unctions, competency and resources o the internal audit unctionand that it has the necessary authority to carry out its work

- review internal audit programme- ensure co-ordination o external audit with internal audit- consider the major ndings o internal audit reviews/investigations and managements response, and

ensure that appropriate actions are taken on the recommendations o the internal audit unction

(g) To review any related party transaction and confict o interests situation that may arise within the Companyand the Group.

(h) To consider the appointment o independent advisers or corporate proposals involving related parties.

(i) To assess the quality and eectiveness o the system o internal control and eciency o operations, andto review the risk policy and implementation o the risk management ramework.

(j) To promptly report to Bursa Securities on any matter where the Audit Committee is o the view that thematter reported by it to the Board has not been satisactorily resolved resulting in a breach o the Listing

Requirements.

(k) To review any appraisal or assessment o the perormance o the members o the internal audit unction,approve any appointment or termination o senior sta members o the internal audit unction and beinormed o any resignation o senior internal audit sta members and reasons thereo.

(l) To perorm any other such unction as may be directed by the Board.

ACTIVITIES DURING THE FINANCIAL YEAR

During the nancial year under review, eight (8) Audit Committee Meetings were held. Whilst Y. Bhg. Tan Sri AbdRahman bin Mamat attended all the three (3) meetings held subsequent to his appointment as a member o the AuditCommittee, all other members o the Audit Committee had ull attendance or all the eight (8) meetings held except orMr Yeow Teck Chai who was absent or one (1) meeting held.

The Audit Committee carried out its duties in accordance with its Terms o Reerence during the year.


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The main activities undertaken by the Audit Committee during the year were as ollows:

FinancialResults

(a) Reviewed the interim unaudited nancial statements o the Group prior to recommending them or approvalby the Board.

(b) Reviewed the annual nancial statements o the Group prior to submission to the Board or its considerationand approval ocusing particularly on changes in or implementation o major accounting policies, signicantand unusual events and compliance with applicable accounting standards approved by the MalaysianAccounting Standards Board (MASB) and other legal requirements.

InternalAudit

(a) Reviewed the annual audit plan to ensure adequate scope and coverage on the activities o the Group,

taking into consideration the assessment o key risk areas.

(b) Reviewed the audit programmes, resource requirements and skill levels o the internal auditors or the yearand assessed the perormance o the internal audit unction.

(c) Reviewed the internal audit reports, audit recommendations made and managements response to theserecommendations and actions taken to improve the system o internal control and procedures.

(d) Monitored the implementation o the audit recommendations to ensure that all key risks and controls havebeen addressed.

(e) Reviewed the Internal Control Sel-Assessment ratings submitted by the respective operations management.

ExternalAudit

(a) Reviewed with external auditors the audit planning memorandum covering the audit objectives andapproach, audit plan, key audit areas and relevant technical pronouncements and accounting standardsissued by MASB.

(b) Reviewed with external auditors the results o the audit and the audit report in particular, accounting issuesand signicant audit adjustments arising rom the external audit.

(c) Reviewed with external auditors the memorandum o comments and recommendations arising rom theirstudy and evaluation o the system o internal and accounting controls together with managements responseto the ndings o the external auditors.

(d) Evaluated the perormance o the external auditors and made recommendations to the Board on their

appointment and remuneration.

(e) Convened meetings with the external auditors without executive Board members and management beingpresent to discuss issues arising rom their review.

RiskManagement

Reviewed the Corporate Risk Scorecard o key operations and the mitigating controls to address identied risks.

RelatedPartyTransactions

Reviewed related party transactions entered into by the Group. Reviewed recurrent related party transactions oa revenue or trading nature on a quarterly basis or compliance under the Shareholders Mandate.

MaterialTransactions

Reviewed material transactions entered into by the Group.


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INTERNAL AUDIT FUNCTION

The internal audit unction is undertaken by the Group Management Audit Department (GMA Department). Its principalactivity is to perorm regular and systematic reviews o the system o internal controls so as to provide reasonableassurance that such systems continue to operate satisactorily and eectively.

The purpose, authority and responsibility o the internal audit unction as well as the nature o the assurance activitiesprovided by the unction are articulated in the Internal Audit Charter.

In discharging its unction, the GMA Department adopts the InternationalStandardsfortheProfessionalPracticeofInternalAuditingas well as established auditing guidelines to enhance its competency and prociency.

A risk-based audit plan is tabled to the Audit Committee or approval on an annual basis. The audit plan covers keyoperational and nancial activities that are signicant to the overall perormance o the Group and is developed toensure adequate coverage on a regular basis. Key risk areas are continuously identied and prioritised to ascertain the

scope o the audit activities through the adoption by the operation management o the Internal Control Sel-AssessmentQuestionnaireandtheStrategicCorporateRiskManagementScorecard.

During the nancial year, the internal auditors had conducted independent reviews and evaluated risk exposures relatingto the Groups governance, operations and inormation system as ollows:

Reliabilityandintegrityofnancialandoperationalinformation Effectivenessandefciencyofoperations Safeguardingofassets Compliancewithsetpoliciesandprocedures Identicationofopportunitiestoimprovetheoperationsandprocesses Investigationsandspecialauditreviews

The internal auditors also established ollow-up review to monitor and to ensure that internal audit recommendationsare eectively implemented.

The internal audit activities have been carried out according to the internal audit plan approved by the Audit Committeeor the nancial year.

The total cost incurred in managing the internal audit unction o the Group or the nancial year was RM385,000.


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NOMINATION COMMITTEE

REMUNERATION COMMITTEE

Chairman : Y. Bhg. Dato Hassan bin Abdul Mutalip (IndependentNon-ExecutiveDirector)

Members : Mr Yeow Teck Chai (IndependentNon-ExecutiveDirector)

Dr Folk Jee Yoong (IndependentNon-ExecutiveDirector)

Terms o Reerence : TorecommendtotheBoard,candidatesfordirectorshipsin Parkson Holdings Berhad

Toconsider,inmakingitsrecommendations,candidatesor directorships proposed by the Chie Executive Ocerand, within the bounds o practicability, by any other

senior executive or any Director or shareholder

TorecommendtotheBoard,DirectorstolltheseatsonBoard Committees

ToassisttheBoardinreviewingonanannualbasis,therequired mix o skills and experience and other qualities,including core competencies which non-executiveDirectors should bring to the Board

Toassess,onanannualbasis, theeffectivenessof theBoard as a whole, the committees o the Board and thecontribution o each individual Director, based on theprocess and procedure laid out by the Board

Chairman : Y. Bhg. Dato Hassan bin Abdul Mutalip (IndependentNon-ExecutiveDirector)

Members : Mr Yeow Teck Chai (IndependentNon-ExecutiveDirector)

Mr Cheng Sin Yeng (Non-IndependentNon-ExecutiveDirector)

Terms o Reerence : To recommend to the Board, the remunerationof theexecutive Directors in all its orms, drawing rom outsideadvice as necessary

Tocarryoutotherresponsibilities,functionsorassignmentsas may be dened by the Board rom time to time


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5 YEARS GROUP FINANCIAL HIGHLIGHTS

Financial years ended 30 June 2007 2008 2009 2010 2011RM000 RM000 RM000 RM000 RM000

Revenue 2,139,136 2,354,028 2,583,705 2,722,256 2,925,082

Prot beore taxation 384,877 760,838 939,033 704,173 805,267

Prot ater taxation 271,779 638,048 775,433 533,598 606,622

Dividends:

- Cash dividend

Rate (%) 15.0 5.0 6.0 15.0

Amount (Net o tax) 154,128 50,727 64,803 162,538

- Share dividend (No. o shares) 1 or 100 1 or 100

Total assets employed 4,866,539 5,462,982 6,526,179 6,738,500 7,270,943

Net assets 1,089,154 1,249,494 1,749,581 1,882,680 2,236,090

Sen Sen Sen Sen Sen

Net assets per share 112 120 171 183 205

Earnings per share 13.7 45.6 53.3 28.0 32.3


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CHAIRMANS STATEMENT

On behal o the Board o Directors, it is my pleasure once again to present the Annual Report and Audited Financial

Statements o Parkson Holdings Berhad or the nancial year ended 30 June 2011.

FINANCIAL PERFORMANCE

The year under review witnessed some drastic changes in the global economic landscape. The gradual recovery o theglobal economy which started in the last nancial year and was gaining momentum in the rst hal o this nancial yearwas abruptly aected by the US credit rating downgrade and the debt burden in Europe. Amidst the growing uncertaintiesin the West, emerging economies in Asia were aced with new challenges required to boost this altering economicgrowth. New measures included the strengthening o domestic demand through the accelerated implementation opublic development projects and the introduction o new scal policies to stimulate the economy.

Despite the slower regional growth, the Group continued to deliver a strong set o revenue and earnings or the nancial

year ended 30 June 2011:

HighergrosssalesproceedsofRM9.49billion,upbyabout10%ascomparedtoRM8.62billioninthepreviousyear; HigheroperatingprotofRM971million,upbyabout11%ascomparedtoRM875millioninthepreviousyear;and HighernetearningsofRM348million,upbyabout22%ascomparedtoRM285millioninthepreviousyear.

Localisation and consistent market positioning is the key strategy or the continuous growth and success o the Group.We tailor our merchandise assortments, brand mix and foor space allocation on a store-by-store basis to better serveour targeted middle to middle-upper end consumers in every city that we operate in.

As at 30 June 2011, the Groups balance sheet remains healthy in a net cash position and with shareholders unds omore than RM2 billion. This position o strength will allow the Group to maximise returns rom its existing businessesand also explore merger and acquisition opportunities.

Higher gross salesproceeds o

RM9.49 billion,

up by about 10%TAN SRI WILLIAM H.J. CHENGChairman


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CORPORATE DEVELOPMENTS

During and subsequent to the nancial year, the Group had undertakenthe ollowing signicant corporate events:

(i) In November 2010, Parkson Retail Group Limited (Parkson Retail),a 51.5% owned subsidiary o the Company, completed the disposalo its entire 55% equity interest in Yangzhou Parkson Plaza Co Ltd asthe location was no longer desirable or department store operation;

(ii) In April 2011, East Crest International Limited (ECIL), a wholly-owned subsidiary o the Company, and Parkson Retail Asia Limited(Parkson Asia), a wholly-owned subsidiary o the ECIL, enteredinto a conditional joint-venture agreement with PT Mitra Samaya(MS), the major shareholder o PT Tozy Bintang Sentosa (TBS)or the purposes o combining the Malaysian and Vietnamese retailbusiness o the Company with the Indonesian retail business oTBS (Proposed Collaboration). The Proposed Collaboration was

completed in June 2011; and

(iii) In August 2011, Parkson Asia submitted an application in connectionwith the proposed listing o Parkson Asias shares on the SingaporeExchange Securities Trading Limited (SGX-ST) (Proposed Listing).

The Proposed Listing involves, amongst others, the oering oordinary shares o Parkson Asia by way o a public oer to the publicin Singapore and a placement to institutions and/or other investorsin Singapore and overseas. The oering will be a combination ooering o new shares or subscription and existing shares or sale.

On 27 September 2011, Parkson Asia received the conditional

eligibility-to-list letter rom the SGX-ST in relation to the ProposedListing.

REVIEW OF OPERATIONS

The Group is principally engaged in the operations o the Parksonand Centro brands department stores. The Group oers a wide rangeo internationally renowned brands o ashion and liestyle relatedmerchandise ocusing on our main categories namely: Fashion &Apparel, Cosmetics & Accessories, Household & Electrical and Groceries& Perishables, targeting the young and contemporary market segment.

Higher operating prot oRM971 million,up by about 11%

Malaysia

China

Vietnam


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The businesses are located in Malaysia, the Peoples Republic oChina (China or PRC), Vietnam and Indonesia. The number oowned and managed stores and the perormance in each locationare as ollows:

Number o Stores

(As at 30 June) 2011 2010

Malaysia (Parkson) 36 35China (Parkson) 46 45Vietnam (Parkson) 7 6Indonesia (Centro & Kem Chicks) 6

95 86

Higher net earnings oRM348 million,up by about 22%

Revenue Segment Proft/(Loss)

(RMMillion) 2011 2010 2011 2010

Operations in- Malaysia 766 697 92 68- China 2,048 1,927 729 712- Vietnam 101 98 23 23- Indonesia * 10 2 Investment holding (15) (13)

2,925 2,722 831 790

(Segmentprot/(loss)referstooperatingprot/(loss)beforeemployeeshare-basedpayments,interests,

shareofresultsofanassociateandtaxation)

* The acquisition was completed in the beginning o June 2011.

Malaysia (Parkson)

Amidst gradual subsidy rationalisation causing infationary and rising cost o living concerns, Parkson Malaysia continuedto produce strong creditable perormance in its retailing business. The growth was contributed by new stores openedin the past ew years and also rom overall better perormance o existing stores. During the nancial year, we addedanother store to our chain with the opening o Parkson 1st Avenue in Penang in November 2010.

Our rst local sel-owned new retail mall, with Parkson as its anchor tenant, is located in Setapak Kuala Lumpur. Themall, which was originally scheduled to be opened in the beginning o 2011, had opened its door to the communityin October 2011. This shopping mall promotes a convenient and comortable shopping style or all shoppers in the

neighbourhood and surrounding communities. With a total net lettable area o approximately 500,000 square eet,the 4-level shopping centre oers an assortment o merchandise or everyone. The maiden launch o this retail mall isexpected to translate into a new recurring income stream or the Group in the coming years.


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The Group will continue to ocus on improving its market share in existing and new markets by leveraging on thestrength o its fagship store in cities or markets wherein the Group has established a strong presence with strong brandequity. Attention will also be given to relatively afuent cities or new markets in order to urther expand the Groupsnetwork and brand image.

The Group believes that the PRC economy, being the largest developing economy and the second largest economy inthe world, will continue to expand at a robust pace despite the temporary set-back caused by the debt problem in theWest. The Group plans to add on an average o 20% new operating areas to its portolio and intends to open 8 to 10new stores annually or the years 2011 and 2012 to capitalise on the growing domestic consumption market.

Vietnam (Parkson)

Parkson is the rst and only licensed oreign department store chain in Vietnam. Our oray into the Vietnamese retailmarket in 2005 through the rst fagship store in Ho Chi Minh City has yielded encouraging results. The success o therst store and the experiences that we have accumulated over the years have set the stage or our uture growth strategies.

We will continue to execute our well-developed expansion plans and strengthen our oothold in Vietnam as the longterm prospects remain bright. During the nancial year, Parkson Vietnam opened its 7th outlet, namely Parkson Paragonin Ho Chi Minh City. All our 7 Parkson stores (inclusive o 3 managed stores) are located in the top 3 cities in Vietnam,namely Ho Chi Minh City, Hanoi and Hai Phong.

Following the maturing o the existing stores together with the merchandise mix adjustments and aggressive marketing

programmes, the Division continued to perorm well with strong SSS growth o about 20% and was able to contributehigher revenue and prot to the Group. However, due to the appreciation o the Ringgit Malaysia against the VietnameseDong, only marginal improvement in revenue was consolidated and reported by the Group.

Indonesia (Centro & Kem Chicks)

In June 2011, the Group completed the acquisition o PT Tozy Sentosa (Tozy), a company incorporated in Indonesia.Tozy is one o the leading retail companies in Indonesia and operates 6 retail stores under the brand name o CentroLiestyle Department Store and Kem Chicks supermarket, located in Jakarta, Yogyakarta and Bali.

The acquisition marked another new milestone or the Group and will provide the Group with a unique opportunity topenetrate and extend its international network into Indonesia which has a large domestic retail market with approximately240 million consumers. Plans are in place to expand the existing business by opening more stores in choice locationsin Indonesia over the next ew years.

China (Parkson)

Parkson China is one o the ew nationwide departmentstore chain operators in the PRC. The Parkson brand wasintroduced to the Beijing market in the early 1990s and hastodate expanded to cover 30 major cities across the PRCmarket. In line with the economic recovery and strongerconsumption sentiments, the Group continued to achievehigh productivity and recorded stronger same-store sales(SSS) in its stores.

The Group opened 4 new stores during the nancial year.The Beijing Sun Palace store, Wuxi New District store andHeei Yaohai store were ocially opened in the rst halo the nancial year. Our rst store in Zigong, Sichuan

Province, was opened in January 2011. As at 30 June 2011,the Group operates 46 stores o which 45 are sel-ownedstores and 1 is a managed store.


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Interim - Cash Dividend 10 sen

Final - Proposed:- Cash Dividend 5 sen 6 sen- Share Dividend 1 or 100

The dividends are proposed ater taking into account a reasonable balance between rewarding shareholders and undsset aside or uture investments and business growth.

CORPORATE SOCIAL RESPONSIBILITY

We uphold the importance o Corporate Social Responsibility (CSR) as an integral part o business and incorporatinga CSR ramework into our business plan to enhance stakeholder condence, accountability and transparency. CSR isan important component o good business practice aimed at improving society and the environment.

Society

In carrying out its business activities, the Group is mindul o its responsibilities as a corporate citizen, in contributingto society while enhancing the bottom-line and shareholders value. The Group is ocused on improving the communitythrough education and medical care via the two Foundations established by the Lion Group o Companies o whichthe Group is a member.

The Lion-Parkson Foundation disburses unds or various needs such as education, charity and scientic research;and every year, awards scholarships and education loans to undergraduates in the local universities. The Lion GroupMedical Assistance Fund provides nancial assistance to the less ortunate who require medical treatment includingsurgery, purchase o medical equipment and medication. The Fund also sponsors community health programmes suchas medical camps, and the purchase o dialysis machines or Dialysis Centres providing subsidised treatment to those

suering rom kidney ailure.

DIVIDENDS

The Board o Directors is pleased to recommend a nal single tierdividend o 5 sen per share in respect o the nancial year ended 30

June 2011, or the approval o the shareholders at the orthcomingAnnual General Meeting. Net dividend payable will amount toapproximately RM55 million.

Total Dividend

(Financial year ended 30 June) 2011 2010

The Group also organises its yearly Back-To-School CharityDrive with Parkson stores nationwide providing collectionbins or the public to donate essential school items such asuniorms, shoes and stationery, which are distributed to needyschool children throughout the country.

The Group also supports the community by participating incharity programmes and undraising drives to assist those inneed.

Environment

Under its ParksonCaresMyPark programme, the Group hasadopted parks in various states with the objective to maintainthe parks or the enjoyment and benet o the surrounding


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communities. The programme involves restoration, enhancement and upgrading acilities to improve the condition othe parks and recreational amenities in promoting a green environment and healthier liestyle. The Parkson stores arealso participating in the No Plastic Bag Day in line with the environmental initiative by a ew states to reduce the useo plastic bags.

PROSPECTS

Moving ahead, even though regional economic growth will be dampened by the woes besetting Europe and the US, theGroup will continue to ocus on expanding its regional presence and moving into new retail markets. In this respect, ourtie-up with the Indonesian partner and the subsequent listing o shares on the SGX-ST augur well or the uture growtho Parkson in Indonesia as well as in other Asian countries.

The management is condent o successully executing the Groups rened and proven expansion strategy going orward.Leveraging on the Groups strong balance sheet, avourable business model, strong brand equity, and huge customer

base rom the existing Parkson Loyalty Card programme, the management believes that the Group is well-positioned toconsolidate and maintain its leadership position.

BOARD OF DIRECTORS

The Board would like to extend its warm welcome to Y. Bhg. Tan Sri Abd Rahman bin Mamat on his appointment as aDirector o the Company during the nancial year.

I would also like to record a vote o thanks and appreciation to Y. Bhg. Dato Mohamad Daud bin Haji Dolmoin whoresigned rom the Board subsequent to the nancial year, or his contributions during his tenure as a Director o theCompany.

ACKNOWLEDGEMENT

On behal o the Board, I wish to extend my sincere thanks to all our valued customers, suppliers, nanciers, businessassociates, Government authorities and shareholders or their continued support, co-operation and condence in theGroup.

I would also like to convey my sincere appreciation and gratitude to my ellow Directors or their invaluable guidanceand contributions throughout the year as well as to record my appreciation to our employees at all levels or theirdedication, commitment and contributions to the Group.

TAN SRI WILLIAM H.J. CHENGChairman


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PENYATA PENGERUSI

Bagi pihak Ahli Lembaga Pengarah, saya dengan sukacitanya sekali lagi membentangkan Laporan Tahunan dan PenyataKewangan Beraudit Parkson Holdings Berhad bagi tahun kewangan berakhir 30 Jun 2011.

PRESTASI KEWANGAN

Tahun kewangan dalam kajian menyaksikan perubahan ketara dalam corak ekonomi sejagat. Pemulihan beransur-ansur ekonomi dunia yang bermula dalam tahun kewangan lalu dan mendapat momentum pada separuh pertamatahun kewangan ini telah terjejas oleh penurunan penaraan kredit AS dan beban hutang di Eropah. Di tengah-tengahketidaktentuan yang semakin meruncing di negara Barat, ekonomi baru muncul di Asia berdepan dengan cabaran baruyang memerlukan mereka untuk merangsang pertumbuhan ekonomi yang goyah ini. Langkah-langkah baru termasukmemperkukuhkan permintaan domestik dengan mempercepatkan pelaksanaan projek-projek pembangunan awam danpengenalan dasar-dasar skal baru bagi merangsang ekonomi.

Di sebalik pertumbuhan serantau yang perlahan, Kumpulan terus mencatatkan aliran pendapatan dan perolehan kukuhbagi tahun kewangan berakhir 30 Jun 2011:

HasiljualankasaryangtinggiberjumlahRM9.49bilion,meningkatkira-kira10%berbandingdenganRM8.62bilion pada tahun sebelumnya;

KeuntunganoperasiyangtinggiberjumlahRM971juta,meningkatkira-kira11%berbandingdenganRM875jutapada tahun sebelumnya; dan

PerolehanbersihyangtinggiberjumlahRM348juta,meningkatkira-kira22%berbandingdenganRM285jutapada tahun sebelumnya.

Tumpuan setempat dan usaha memantapkan kedudukan pasaran secara konsisten merupakan strategi utama bagipertumbuhan berterusan dan kejayaan Kumpulan. Kita menyesuaikan aneka barangan, campuran jenama dan peruntukanruang lantai berasaskan kedudukan stor untuk memberi perkhidmatan terbaik kepada pelanggan sasaran kita yang terdiridaripada golongan pertengahan hingga pertengahan atas di setiap bandar kita beroperasi.

Setakat 30 Jun 2011, kunci kira-kira Kumpulan kekal sihat dengan kedudukan tunai bersih dan dana pemegang saham

lebih daripada RM2 bilion. Kedudukan kukuh ini membolehkan Kumpulan memaksimumkan pulangan daripadaperniagaan sedia ada dan juga meneroka peluang penggabungan dan pengambilalihan.

Hasil jualan kasar

lebih tinggi berjumlahRM9.49 bilion,meningkat kira-kira 10%


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PERKEMBANGAN KORPORAT

Sepanjang dan berikutan tahun kewangan dalam kajian, Kumpulan melaksanakan langkah korporat utama berikut;

(i) Pada November 2010, Parkson Retail Group Limited (Parkson Retail), sebuah subsidiari milik 51.5% Syarikat,menyelesaikan pelupusan keseluruhan 55% kepentingan ekuiti dalam Yangzhou Parkson Plaza Co Ltd berikutanlokasi itu tidak lagi menarik untuk operasi gedung serbaneka;

(ii) Pada April 2011, East Crest International Limited (ECIL), subsidiari milik penuh Syarikat, dan Parkson RetailAsia Limited (Parkson Asia), subsidiari milik penuh ECIL, memeterai perjanjian usahasama bersyarat denganPT Mitra Samaya (MS), pemegang saham terbesar PT Tozy Bintang Sentosa (TBS) bertujuan menggabungkanperniagaan runcit Syarikat di Malaysia dan Vietnam dengan perniagaan runcit TBS di Indonesia (CadanganKerjasama). Cadangan Kerjasama ini dimuktamadkan pada Jun 2011; dan

(iii) Pada Ogos 2011, Parkson Asia mengemukakan permohonan berhubung cadangan penyenaraian saham ParksonAsia di Bursa Saham Singapura (SGX-ST) (Cadangan Penyenaraian).

Cadangan penyenaraian merangkumi, antara lain, tawaran saham dalam Parkson Asia menerusi tawaran awam

kepada orang awam di Singapura dan penempatan saham kepada institusi dan/atau pelabur-pelabur lain diSingapura dan luar negara. Tawaran ini membabitkan gabungan tawaran saham baru untuk langganan dan jualansaham sedia ada.

Pada 27 September 2011, Parkson Asia menerima surat kelayakan untuk penyenaraian bersyarat daripada SGX-STberhubung Cadangan Penyenaraian.

TINJAUAN OPERASI

Kumpulan pada dasarnya terlibat dalam operasi gedung beli-belah jenama Parkson dan Centro. Kumpulanmenawarkan pelbagai esyen dan barangan berkaitan gaya hidup jenama terkenal antarabangsa dengan memokuskankepada empat kategori utama barangan iaitu; Fesyen & Pakaian, Kosmetik & Aksesori, Kelengkapan Rumah & Barangan

Elektrik dan Barangan Runcit & Tidak Tahan Lama, yang mensasarkan segmen pasaran golongan muda dan kontemporari.

Keuntungan operasi lebih tinggi berjumlah

RM971 juta, meningkat kira-kira11%


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Pendapatan Untung/(Rugi) Segmen

(RMJuta) 2011 2010 2011 2010

Operasi di- Malaysia 766 697 92 68- China 2,048 1,927 729 712- Vietnam 101 98 23 23- Indonesia * 10 2 Pegangan pelaburan (15) (13)

2,925 2,722 831 790

(Untung/(rugi)Segmenmerujukkepadauntung/(rugi)operasisebelumpembayaranasasperkongsian

kakitangan,faedah,hasilkeputusansyarikatsekutudanpercukaian)

* Pengambilalihan diselesaikan pada awal Jun 2011.

Malaysia (Parkson)

Berikutan penyelarasan subsidi secara berperingkat yang membangkitkan kebimbangan terhadap peningkatan infasi dankos sara hidup, Parkson Malaysia terus menyumbangkan prestasi memberangsangkan dalam perniagaan peruncitannya.Pertumbuhan ini disumbangkan oleh gedung-gedung baru yang dibuka dalam tempoh beberapa tahun lalu dan jugadaripada prestasi keseluruhan yang baik dari gedung-gedung sedia ada. Pada tahun kewangan ini, kita telah menambahsatu lagi gedung dalam rangkaian kita dengan pembukaan Parkson 1st Avenue di Pulau Pinang pada November 2010.

Pusat beli-belah baru milik sendiri yang pertama dalam negara terletak di Setapak Kuala Lumpur di mana Parkson adalahpenyewa utamanya. Pusat beli-belah ini asalnya dijadualkan dibuka pada awal 2011, telah membuka pintu kepada oangramai pada Oktober 2011. Pusat beli-belah ini menawarkan suasana membeli-belah yang mudah dan selesa kepada

para pengunjung daripada komuniti kejiranan dan sekeliling. Dengan jumlah bersih ruang boleh sewa seluas kira-kira500,000 kaki persegi, pusat beli-belah 4-tingkat ini menawarkan pelbagai barangan kepada setiap orang. Pelancaran

Perolehan bersih lebih tinggi berjumlah

RM348 juta, meningkat kira-kira22%Perniagaan ini terletak di Malaysia, Republik Rakyat China (Chinaatau PRC), Vietnam dan Indonesia. Bilangan gedung beli-belah yangdimiliki/diuruskan dan prestasi setiap lokasi adalah seperti berikut:

Jumlah Gedung Beli-Belah

(Pada 30 Jun) 2011 2010

Malaysia (Parkson) 36 35China (Parkson) 46 45Vietnam (Parkson) 7 6Indonesia (Centro & Kem Chicks) 6

95 86


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Kumpulan membuka 4 gedung baru dalam tahun kewangan ini. Gedung Beijing Sun Palace, gedung Wuxi New Districtdan gedung Heei Yaohai dibuka secara rasmi pada separuh masa pertama tahun kewangan ini. Gedung pertama kitadi Zigong, Wilayah Sichuan, dibuka pada Januari 2011. Setakat 30 Jun 2011, Kumpulan mengendalikan 46 gedungbeli-belah yang mana 45 daripadanya dimiliki sendiri dan sebuah lagi adalah gedung yang diuruskan.

Kumpulan terus memberi tumpuan untuk meningkatkan penguasaan di pasaran sedia ada dan pasaran baru denganmemanaatkan kekuatan rangkaian gedung utama di bandar-bandar atau pasaran di mana Kumpulan telah teguh bertapakdan ekuiti jenama kukuh. Tumpuan juga akan diberikan kepada bandar-bandar atau pasaran baru yang agak mewahdalam usaha memperluaskan lagi rangkaian dan imej jenama Kumpulan.

Kumpulan percaya bahawa ekonomi PRC, yang merupakan ekonomi terbesar negara membangun dan ekonomi keduaterbesar di dunia, akan terus berkembang kukuh di sebalik rintangan sementara yang disebabkan oleh masalah hutangdi Barat. Kumpulan merancang untuk menambah purata 20% ruang operasi baru kepada portolionya dan bercadanguntuk membuka 8 hingga 10 gedung baru setiap tahun bagi tempoh 2011 dan 2012 bagi mengambil kesempatandaripada perkembangan pasaran penggunaan domestik.

Vietnam (Parkson)

Parkson adalah rangkaian gedung beli-belah asing yang pertama dan satu-satunya di Vietnam. Penerokaan kita ke pasaranperuncitan Vietnam pada 2005 menerusi gedung pertama di Bandaraya Ho Chi Minh telah menghasilkan pulanganmemberangsangkan. Kejayaan gedung pertama dan pengalaman yang dikumpul sejak beberapa tahun lalu, menjadilandasan kukuh untuk strategi pertumbuhan pada masa depan.

Kita akan terus melaksanakan rancangan pengembangan pembangunan dan memantapkan kehadiran kita di sanamemandangkan prospek jangka panjang kekal cerah. Dalam tahun kewangan ini, Parkson Vietnam membuka cawangan7, dikenali sebagai Parkson Paragon di Bandaraya Ho Chi Minh. Kesemua 7 gedung Parkson (termasuk 3 gedung yang

diuruskan) terletak di 3 bandar utama di Vietnam, iaitu Bandaraya Ho Chi Minh, Hanoi dan Hai Phong.

Berikutan kematangan gedung-gedung sedia ada berserta pelarasan kepelbagaian barangan dan program pemasaranyang agresi, Bahagian ini terus menunjukkan prestasi baik dengan pertumbuhan SSS yang kukuh kira-kira 20% dandapat menyumbang perolehan dan keuntungan yang lebih tinggi kepada Kumpulan. Walau bagaimanapun, disebabkanoleh pengukuhan nilai Ringgit Malaysia berbanding Dong Vietnam, hanya sedikit peningkatan dalam hasil digabungkandan dilaporkan oleh Kumpulan.

Indonesia (Centro & Kem Chicks)

Pada Jun 2011, Kumpulan menyelesaikan pengambilalihan PT Tozy Sentosa (Tozy), sebuah syarikat diperbadankandi Indonesia. Tozy ialah salah satu syarikat peruncitan terkemuka di Indonesia dan mengendalikan 6 gedung runcit dibawah nama jenama Centro Liestyle Department Store and Kem Chicks yang terletak di Jakarta, Yogyakarta dan Bali.

sulung pusat beli-belah ini dijangka menyumbang kepadaaliran pendapatan berulang yang baru untuk Kumpulan padatahun-tahun akan datang.

China (Parkson)

Parkson China adalah salah satu daripada pengendalirangkaian gedung beli-belah di seluruh PRC. Jenama Parksondiperkenalkan kepada pasaran Beijing pada awal 1990-andan kini telah berkembang ke 30 bandar utama di seluruhpasaran PRC. Seiring dengan pemulihan ekonomi dansentimen penggunaan yang kukuh, Kumpulan terus menikmatiproduktiviti tinggi dan mencatatkan jualan gedung sama(SSS) yang lebih kukuh.

parkson-cover to page 30 (2.7mb)

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