Aseana Prop. Regulatory News (ASPL)

29 August 2013

Aseana Properties Limited("Aseana" or the "Company")

Half-Year Results for the Six Months Ended 30 June 2013

Aseana Properties Limited (LSE: ASPL), a property developer investing in Malaysia and Vietnam, listed on the Main Market of the London Stock Exchange, announces its half-year results for the six-month period ended 30 June 2013.

Financial highlights:

· Unaudited revenue of US$10.22 million for the six-month period ended 30 June 2013 (30 June 2012 (unaudited): US$18.52 million)

· Unaudited loss before tax for the six-month period ended 30 June 2013 of US$13.73 million (30 June 2012 (unaudited): loss of US$2.34 million)

· Unaudited loss after tax for the six-month period ended 30 June 2013 of US$14.44 million (30 June 2012 (unaudited): loss of US$3.11 million)

· Loss on foreign currency translation differences for foreign operations of US$3.50 million (30 June 2012 (unaudited): loss of US$0.18 million)**

· Unaudited consolidated comprehensive expense of US$13.57 million for the six months period ended 30 June 2013 (30 June 2012 (unaudited): expense of US$3.29 million)

· Unaudited net asset value of US$170.92 million at 30 June 2013 (31 December 2012 (audited): US$183.58 million) or US$0.806 per share* (31 December 2012 (audited): US$0.866 per share)

· Unaudited realisable net asset value of US$281.07 million at 30 June 2013 (31 December 2012 (unaudited): US$244.84 million) or US$1.326 per share* (31 December 2012 (unaudited): US$1.155 per share)

Operational highlights:

· Sale of SENI Mont' Kiara is progressing well achieving 80% sales to date.

· The RuMa Hotel and Residences ("The RuMa") achieved 22% sales based on sales and purchase agreement signed with a total sales value of about US$49.67 million.

· The Aloft Kuala Lumpur Sentral Hotel ("Aloft") commenced business on 22 March 2013, with occupancy improving progressively since opening and reaching 56% in July 2013.

· The Four Points by Sheraton Sandakan Hotel recorded an improved occupancy rate of 33% in July 2013.

· The City International Hospital ("CIH") has successfully obtained its operating license on 31 May 2013 from Vietnam's Ministry of Health ("MOH) and commencement of operation is planned for September 2013.

· Two plots of land in International Hi-Tech Healthcare Park ("IHTHP") were sold with proceeds collected in July 2013 amounting to US$7.4 million. The sale price is in line with the ascribed valuation in the RNAV figures.

· Nam Long's share price improved to VND23,000 per share on 28 August 2013 compared to carrying value of VND16,800 per share. Aseana holds approximately 15.58 million shares representing 16.3% of total outstanding shares of Nam Long.

* NAV per share and RNAV per share as at 30 June 2013 are calculated based on 212,025,000 voting shares (31 December 2012: 212,025,000 voting shares).

** Exchange rate - 30 June 2013: US$1:RM3.1606; US$1:VND21,170; 31 December 2012: US$1:RM3.0581; US$1:VND20,840

Commenting on the results, Mohammed Azlan Hashim, Chairman of Aseana, said:

"The property markets and economic conditions in both Malaysia and Vietnam continue to be challenging as reflected in the H1 2013 results. Nonetheless the Company maintains its focus to ensure that the performance of a number of key operating assets within the Group continues to be on the right path for eventual sale, as well as continuing its efforts to convert sales bookings of The RuMa Hotel and Residences and SENI Mont Kiara into contract of sales."

The Company has also published its Quarterly Investment Update (including updates on projects and RNAV figures) for the period to 30 June 2013, which can be obtained on its website at www.aseanaproperties.com/quarterly.htm.

For further information:

Notes to Editors:

London-listed Aseana Properties Limited (LSE: ASPL) is a property developer investing in Malaysia and Vietnam.

Ireka Development Management Sdn Bhd ("IDM") is the exclusive Development Manager for Aseana. It is a wholly-owned subsidiary of Ireka Corporation Berhad, a company listed on the Bursa Malaysia since 1993, which has over 40 years' experience in construction and property development. IDM is responsible for the day-to-day management of Aseana's property portfolio and the introduction and facilitation of new investment opportunities.

CHAIRMAN'S STATEMENT

Introduction

I am pleased to report on the half-year results for Aseana Properties Limited ("Aseana") and its group of companies ("the Group") for the six months ended 30 June 2013.

During the first half of 2013, the global economy was on an uneven and hesitant recovery path. Growth in the Euro region remained weak, whilst the pace of growth in the Asian region has also been slower than expected.

In Malaysia, the domestic economy demonstrated resilience supported by strong growth in both private and public investment. The business environment had shown signs of a gradual recovery in business investment post-election, with progress in the implementation of long gestation infrastructure related projects. The government continues to introduce and implement new measures to stabilise the property market to ensure sustainable growth over a longer period.

The economy in Vietnam edged towards slow recovery since the beginning of the year. However, it still faces difficulties due to a weak banking system that is limiting growth of many businesses. On a positive note, the stabilization efforts by the government including numerous interest rate reductions combined with an influx of foreign direct investments over the past 6 months have positioned Vietnam's economy on a recovery path.

Results

For the six months ended 30 June 2013, Aseana and its group of companies (the "Group") recorded unaudited revenue of US$10.22 million (H1 2012 (unaudited): US$18.52 million), which was mainly attributable to the sale of completed units in SENI Mont' Kiara. No revenue was recognised for The RuMa, in accordance with IFRIC 15 - Agreements for Construction of Real Estate which prescribes that revenue be recognised only when the properties are completed and occupancy permits are issued.

The Group recorded an unaudited loss before tax for the period of US$13.73 million (H1 2012 (unaudited): loss of US$2.34 million). Operating losses of Four Points by Sheraton Sandakan hotel and Harbour Mall Sandakan, together with the pre-opening expenses and operating loss of Aloft Kuala Lumpur Sentral Hotel contributed US$5.96 million to the loss. The results have also included a share of the losses of associate of US$3.03 million attributed to the financing charges incurred in relation to the Sentral office towers following the completion of the towers.

The Group recorded unaudited consolidated comprehensive expense of US$13.57 million for the six months period ended 30 June 2013 (30 June 2012 (unaudited): expense of US$3.29 million). This has included an increase in the fair value of the share investment in Nam Long Investment Corporation of US$4.36 million and a foreign currency translation loss of US$3.50 million arising from a strengthening of US Dollars against Ringgit.

Unaudited net asset value for the Group for the period under review decreased to US$170.92 million (31 December 2012 (audited): US$183.58 million) or US$0.806 per share (31 December 2012: US$0.866 per share) due to losses incurred for the year. However, unaudited realisable net asset value improved to US$281.07 million at 30 June 2013 (31 December 2012 (unaudited): US$244.84 million) or US$1.326 per share (31 December 2012 (unaudited): US$1.155 per share).

Review of Activities and Property Portfolio

Sales status (based on Sales and Purchase agreements signed):

Malaysia

The RuMa Hotel and Residences is progressing well since commencement of sale in March 2013. The RuMa has achieved 20% sales based on sales and purchase agreements signed at the end of July 2013. Sales booking is also encouraging and the Manager is working to convert the bookings into contract of sales. Numerous marketing events were held to-date in major cities within Asia - Kuala Lumpur, Singapore, Hong Kong, Taiwan and Shanghai. On site, piling works for The RuMa started in February 2013 and are expected to complete in September 2013. Construction of the main building works is planned for October 2013.

Stricter lending conditions by the banks in Malaysia have continued to affect the sales performance of SENI Mont' Kiara, which consists of larger residential units. SENI Mont' Kiara recorded 80% sales as at July 2013, compared to 79% reported in May 2013. The Manager continues to explore all opportunities to drive sales at SENI Mont' Kiara.

The 482-room Aloft Kuala Lumpur Sentral Hotel ("Aloft"), managed and operated by Starwood Asia Pacific Hotels Resort Pte. Ltd, has achieved occupancy rate of 56% in July 2013 since its opening in March 2013. Over the next year, Aloft will continue to build up its occupancy rates and improve room rates in order to achieve stabilisation levels.

In Sandakan, the business environment has remained uncertain for a good part of the year, due to an incursion by a small group of armed dissidents in Sabah, until Malaysian security forces successfully overcame them in March 2013. Travel advisory notices from United Kingdom and Australia were lifted in July 2013, but those from US, Canada and New Zealand still remain in place. To-date, Harbour Mall Sandakan is 40.8% tenanted, a slight decrease compared to May 2013 due to termination of two tenancy agreements. On a positive note, The Manager is currently concluding a number of new tenancies which will increase the tenancy rate of the Mall to 45% over the next 3 months. The Four Points by Sheraton Sandakan Hotel recorded an improved occupancy rate of 33% in July 2013, against year-to-date of 26% as at May 2013.

The remaining of the year will be a busy period for Aseana as it focuses on the operation and performance of key operating assets. The Company will also continue to focus on realising the remaining units at SENI Mont' Kiara and to drive new sales for The RuMa.

Vietnam

CIH, the maiden project at the International Hi-Tech Healthcare Park, Ho Chi Minh City, was completed in March 2013. Testing and commissioning of all hospital facilities and medical equipment are on-going. The hospital has successfully obtained its operating license on 31 May 2013 from Vietnam's Ministry of Health and is expected to commence operation in September 2013.

In addition, the Group has also successfully sold and collected proceeds for two plots of land within the IHTHP for a total of US$7.4 million (VND 155 billion) in July 2013. The sale price is in line with the ascribed valuation in the RNAV figures. The proceeds from the sale went towards the repayment of a bank loan and for working capital purposes.

Nam Long share price improved to VND23,000 per share on 28 August 2013 compared to carrying value of VND16,800 per share. Aseana holds approximately 15.58 million shares representing 16.3% of total outstanding shares of Nam Long.

MOHAMMED AZLAN HASHIM

Chairman

28 August 2013

Malaysia's economy in the first and second quarter of 2013 grew at 4.1% and 4.3% year-on-year ("y-o-y") respectively compared to a GDP growth of 6.5% y-o-y in the fourth quarter of 2012 as the challenging external conditions remain a drag to domestic economic activity.

For the first half of 2013, exports declined by 3.8% to RM337.82 billion compared to first half of 2012 while imports expanded 4.4% to RM313.23 billion in the same period, however a balance of trade surplus of RM24.59 billion was recorded. Exports shrank by 6.9% on a year-on-year basis as shipments of electronics and palm oil remained sluggish. The annual contraction in export is also largely due to slower demand from China, United States and Japan.

In July 2013, Fitch Ratings had downgraded Malaysia's economic outlook from "stable" to "negative". Following that, in August 2013 the Malaysian Government has revised downwards the overall GDP growth target for Malaysia in 2013 to 4.5% - 5.0% from its earlier target of 5.0% - 6.0%. The GDP growth in 2013 will be largely driven by government support, private consumption, private investment and public expenditure. Firm domestic activity is also expected to be the main driver of the growth, with the Economic Transformation Programme ("ETP") and Government Transformation Programme ("GTP") continuing to be the main catalyst. To date, the Government has unveiled 161 projects under the ETP with investments totaling RM209.78 billion (US$66.37 billion).

Ringgit Malaysia sank to a three-year low having depreciated against the US dollar by 8.1% since May 2013. The weakening ringgit was a result of ongoing capital outflow from emerging economies in anticipation of a retraction in US Federal Reserve stimulus program, coupled with the consequential effect of a slower Malaysian economy.

The Central Bank of Malaysia held the overnight policy rate at 3.0% for the 14th consecutive month in view of low inflation rate at 1.6% in the first half of the year and the weaker global environment.

The Consumer Sentiment Index and the Business Conditions Index issued by the Malaysian Institute of Economic Research ("MIER") for the second quarter of 2013 show that consumer and business confidence indices are moving in opposite directions again. The Business Conditions Index increased significantly by 21.6 points to 114.2 points (Q1 2013: 92.6 points) attributed to increased sales, higher production and higher local sales expectations over the next three months. On the other hand, the Consumer Sentiment Index declined by 13.2 points to 109.7 points (Q1 2013: 122.9 points) due to worsening inflationary expectations and gloomier financial as well as job outlooks.

Source: Bank Negara Malaysia website, Jones Lang Wootton Q2 report, MIER, various publications

Exchange rate - 30 June 2013: US$1:RM3.1606

Vietnam has experienced the longest period of slow growth since the economic reforms in the late 1980s. Nonetheless, General Statistics Office ("GSO") of Vietnam states that economic performance improved in the first half of 2013. Measures set out by the government including resolving bad debts, stimulating demand and reducing inventories have helped in stabilising the macroeconomy and sustain moderate growth. Vietnam's GDP achieved a growth of 4.9% from 4.4% in 1H 2012. The Vietnamese Government forecasted a growth for 2013 of 5.5% and strives for annual growth of 6% in 2014 that will be predicated on the ability to boost foreign direct investment and control the non-performing loans situation.

Vietnam's June 2013 CPI rose 2.4% from December 2012, which was much lower than the half-year target of 6.81% set for 2013 by the National Assembly. The low six-month CPI is a result of effective controls implemented by the government since the beginning of year 2012 which include credit tightening measures to real estate sector, share trading activities, and limiting the convertibility and trading of gold.

The government has been seen to be more proactive in the first half of the year in reviving the Vietnamese economy and most notably, the real estate market. One of the initiatives taken was the setting-up of Vietnam Asset Management Company ("VAMC") to address nearly US$5 billion of non-performing loans and to promote credit growth in the banking system. Furthermore, the SBV allocated VND30 trillion (US$1.43 billion) under the new regulation for preferential home loans at an interest rate of 6% per annum for low income earners. In an attempt to bolster businesses and encourage investments to revive the economy, The National Assembly of Vietnam has approved reductions in Vietnam's corporate tax rates from 25% to 22% beginning 1 January 2014, and to 20% from 1 January 2016. The rate for companies with fewer than 200 employees and total revenue of less than VND20 billion will be lowered to 20% from 1 July 2013 and to 17% from 1 January 2016.

Despite the signs of recovery, Vietnam's economy is still facing challenges due to weak domestic demand and high cost of production.

Source: General Statistics Office of Vietnam, Savills, CBRE, various publications

Exchange rate - 30 June 2013: US$1:VND21,170

LAI VOON HON

President / Chief Executive Officer

Ireka Development Management Sdn. Bhd.

Development Manager

28 August 2013

PROPERTY PORTFOLIO AS AT 30 JUNE 2013

n/a: Not available / not applicable

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2013

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD ENDED 30 JUNE 2013 - UNAUDITED

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD ENDED 30 JUNE 2012 - UNAUDITED

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2012 - AUDITED

During the financial period, the Group acquired property, plant and equipment with an aggregate cost of US$91,000 (30 June 2012: US$323,000; 31 December 2012: US$311,833) of which US$41,005 (30 June 2012: US$Nil; 31 December 2012: US$32,700) was acquired by means of finance leases.

During the financial period, US$170,000 (30 June 2012: US$8,431,000; 31 December 2012: US$9,026,000) of ordinary shares of subsidiaries were issued to non-controlling shareholders, of which US$170,000 (30 June 2012: US$1,951,000; 31 December 2012: US$2,546,000) was satisfied via cash consideration. The remaining amount of US$Nil (30 June 2012: US$6,480,000; 31 December 2012: US$6,480,000) was satisfied via contribution of land held for property development by non-controlling interest. 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2013

1. General Information

The principal activities of the Group are acquisition, development and redevelopment of upscale residential, commercial, hospitality and healthcare projects in the major cities of Malaysia and Vietnam. The Group typically invests in development projects at the pre-construction stage and may also selectively invests in projects in construction and newly completed projects with potential capital appreciation.

2. Summary of Significant Accounting Policies

2.1. Basis of Preparation

The interim condensed consolidated financial statements for the six months ended 30 June 2013 has been prepared in accordance with IAS 34, Interim Financial Reporting.

The interim condensed consolidated financial statements should be read in conjunction with the annual financial statements for the year ended 31 December 2012 which has been prepared in accordance with IFRS.

Taxes on income in the interim period are accrued using the tax rate that would be applicable to expected total annual earnings.

The interim results have not been audited nor reviewed and do not constitute statutory financial statements.

The preparation of financial statements in conformity with IFRS requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Although these estimates are based on management's best knowledge of the amount, event or actions, actual results ultimately may differ from those estimates.

The accounting policies applied are consistent with those of the annual financial statements for the year ended 31 December 2012 as described in those annual financial statements.

The interim report and financial statements were approved by the Board of Directors on 28 August 2013.

3. SegmentAL Information

The Group's assets and business activities are managed by Ireka Development Management Sdn. Bhd. ("IDM") as the Development Manager under a management agreement dated 27 March 2007.

Segmental information represents the level at which financial information is reported to the Executive Management of IDM, being the chief operating decision maker as defined in IFRS 8. The Executive Management consists of the Chief Executive Officer, the Chief Financial Officer and the Chief Operating Officer of IDM. The management determines the operating segments based on reports reviewed and used by the Executive Management for strategic decision making and resource allocation. For management purposes, the Group is organised into project units.

The Group's reportable operating segments are as follows:

(i) Investment Holding Companies - investing activities;

(ii) Ireka Land Sdn. Bhd. - develops Tiffani by i-ZEN and 1 Mont' Kiara by i-ZEN;

(iii) ICSD Ventures Sdn. Bhd. - develops Sandakan Harbour Square;

(iv) Amatir Resources Sdn. Bhd. - develops SENI Mont' Kiara; and

(v) Hoa Lam-Shangri-La Healthcare Group - develops City International Hospital and Hi-Tech

Healthcare Park.

Other non-reportable segments comprise the Group's other new development projects. None of these segments meets any of the quantitative thresholds for determining reportable segments in 2013 and 2012.

Information regarding the operations of each reportable segment is included below. The Executive Management monitors the operating results of each segment for the purpose of performance assessments and making decisions on resource allocation. Performance is based on segment gross profit and profit before taxation, which the Executive Management believes are the most relevant in evaluating the results relative to other entities in the industry. Segment assets and liabilities are presented inclusive of inter-segment balances and inter-segment pricing is determined on an arm's length basis.

The Group's revenue generating development projects are currently only in Malaysia since development activities in Vietnam are still at approved and construction stages.

Operating Segments - ended 31 December 2012

Geographical Information - ended 30 June 2013

For the financial period ended 30 June 2013, no single customer exceeded 10% of the Group's total revenue.

Geographical Information - ended 30 June 2012

For the financial period ended 30 June 2012, no single customer exceeded 10% of the Group's total revenue.

Geographical Information - ended 31 December 2012

For the financial year ended 31 December 2012, no single customer exceeded 10% of the Group's total revenue.

4. Seasonality

The Group's business operations are not materially affected by seasonal factors for the period under review.

5. Cost of Sales

6. Foreign exchange (loss)/GAIN

7. Taxation

The numerical reconciliation between the income tax expenses and the product of accounting results multiplied by the applicable tax rate is computed as follows:

* The applicable corporate tax rate in Malaysia and Vietnam is 25%.

** The applicable corporate tax rate in Singapore is 17%. A subsidiary of the Group, Hoa Lam-Shangri-La Healthcare Ltd Liability Co is granted preferential corporate tax rate of 10% for its profit arising from hospital income. The preferential income tax is given by the government of Vietnam due to the subsidiary's involvement in the healthcare and education industries.

The Company is treated as a tax resident of Jersey for the purpose of tax laws and is subject to a tax rate of 0%.

A Goods and Services Tax was introduced in Jersey in May 2008. The Company has been registered as an International Services Entity so that it does not have to charge or pay local GST. The cost for this registration is £200 per annum.

The Directors intend to conduct the Group's affairs such that the central management and control is not exercised in the United Kingdom and so that neither the Company nor any of its subsidiaries carries on any trade in the United Kingdom. The Company and its subsidiaries will thus not be residents in the United Kingdom for taxation purposes. On this basis, they will not be liable for United Kingdom taxation on their income and gains other than income derived from a United Kingdom source.

8. LOSS Per Share

Basic and diluted loss per ordinary share

The calculation of basic and diluted loss per ordinary share for the period/year ended was based on the loss attributable to equity holders of the parent and a weighted average number of ordinary shares outstanding, calculated as below:

9. Loans and Borrowings

The effective interest rates of the bank loans and hire purchase arrangement for the period ranged from 5.20% to 23% (30 June 2012: 5.80% to 23%; 31 December 2012: 5.20% to 23%) per annum and is 2.50% (30 June 2012: n/a; 31 December 2012: 2.50%) per annum respectively.

Borrowings are denominated in Malaysian Ringgit, United States Dollars and Vietnam Dong.

Bank loans are repayable by monthly or quarterly instalments.

Bank loans are secured by land held for property development and work-in-progress and some by the corporate guarantee of the Company.

The carrying amount of borrowings approximates its fair value at statement of financial position date and non-current bank loans earn interest at floating rates.

Finance lease liabilities are payable as follows:

10. Medium Term Notes

The medium term notes were issued by a subsidiary, incorporated on 5 May 2011, to fund two development projects known as Sandakan Harbour Square and Aloft Kuala Lumpur Sentral hotel in Malaysia. US$77.3 million had been drawn down in 2011 for Sandakan Harbour Square. US$4.9 million had been drawn down in 2012 for Aloft Kuala Lumpur Sentral hotel and the remaining US$80.4 million has been fully drawn down in 2013. The weighted average interest rate of the loan was 5.51% per annum at the statement of the financial position date. The effective interest rates of the medium term notes and their outstanding amounts are as follows:

The medium term notes are secured by way of:

(i) bank guarantee from two financial institutions in respect of the BG Tranches;

(ii) financial guarantee insurance policy from Danajamin Nasional Berhad in respect to the FG Tranches;

(iii) a first fixed and floating charge over the present and future assets and properties of Silver Sparrow Berhad, ICSD Ventures Sdn. Bhd. and Iringan Flora Sdn. Bhd. by way of a debenture;

(iv) a third party first legal fixed charge over ICSD Ventures Sdn. Bhd.'s assets and land;

(v) assignment of all Iringan Flora Sdn. Bhd.'s present and future rights, title, interest and benefits in and under the Sales and Purchase Agreement to purchase the Aloft Kuala Lumpur Sentral hotel from Excellent Bonanza Sdn. Bhd.;

(vi) first fixed land charge over the Aloft Kuala Lumpur Sentral hotel and the Aloft Kuala Lumpur Sentral hotel's land (to be executed upon construction completion);

(vii) a corporate guarantee by Aseana Properties Limited;

(viii) letter of undertaking from Aseana Properties Limited to provide financial and other forms of support to ICSD Ventures Sdn. Bhd. to finance any cost overruns associated with the development of the Sandakan Harbour Square;

(ix) assignment of all its present and future rights, interest and benefits under the ICSD Ventures Sdn. Bhd.'s and Iringan Flora Sdn. Bhd.'s Put Option Agreements and the proceeds from the Harbour Mall Sandakan, Four Points by Sheraton Sandakan hotel and Aloft Kuala Lumpur Sentral hotel;

(x) assignment over the disbursement account, revenue account, Harbour Mall Sandakan operating account, sales proceed account, debt service reserve account and sinking fund account;

(xi) assignment of all ICSD Ventures Sdn. Bhd.'s and Iringan Flora Sdn. Bhd.'s present and future rights, title, interest and benefits in and under the insurance policies; and

(xii) a first legal charge over all the shares of the Silver Sparrow Berhad, ICSD Ventures Sdn. Bhd. and Iringan Flora Sdn. Bhd. and any dividends, distributions and entitlements.

11. Related Party Transactions

Transactions between the Group and the Company with Ireka Corporation Berhad ("ICB") and its group of companies are classified as related party transactions based on ICB's 23.07% shareholding in the Company.

12. Dividends

The Company has not paid or declared any dividends during the financial period ended 30 June 2013.

13. Events after the Statement of Financial Position Date

There were no material adjusting events after the statement of financial position date ended 30 June 2013 that have not been reflected in the interim consolidated financial statements.

14. Interim Statement

Copies of this interim statement are available on the Company's website www.aseanaproperties.com or from the Company's registered office at 12 Castle Street, St. Helier, Jersey, JE2 3RT, Channel Islands.

Principal Risks and Uncertainties

The Board has overall responsibility for risk management and internal control. The following have been identified previously as the areas of principal risk and uncertainty facing the Company, and they remain relevant in the second half of the year.

· Economic

· Strategic

· Regulatory

· Law and regulations

· Tax regimes

· Management and control

· Operational

· Financial

· Going concern

For greater detail, please refer to page 18 of the Company's Annual Report for 2012, a copy of which is available on the Company's website www.aseanaproperties.com.

RESPONSIBILITY STATEMENT

The Directors of the Company confirm that to the best of their knowledge that:

a) The condensed consolidated financial statements have been prepared in accordance with IAS 34 (Interim Financial Reporting);

b) The interim management report includes a fair review of the information required by DTR 4.2.7R (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year); and

c) The interim management report includes a fair review of the information required by DTR 4.2.8R (disclosure of related party transactions and changes therein).

On behalf of the Board