Eng - IOI Group

HIGHLIGHTS cont’d• Net operating profit after tax (“NOPAT”) of the Group for FY 2003 was RM721.9 million as compared to RM496.2million the previous year, a 45% increase. Returns are expected to further improve in line with increasedcontribution from new acquisitions and new capacities added.• The Group’s Economic Profit increased from RM136.6 million to RM260.1 million, based on a weighted average costof capital (“WACC”) of 7.57% (2002 - 7.54%).• The Return on Equity (“ROE”) improved to 15.64% as compared to 12.86% for the previous year.• Net operating cash flow for the year was RM777.3 million. After deducting capital expenditure of RM192.8 million,mainly in respect of new planting expenditure for oil palm, CPO milling capacities as well as other plantationinfrastructure to enhance the productivity and capacity of our plantation business and additional facilities for ouroleochemical business, free cash flow from operations was RM584.5 million for FY 2003.41IOI Corporation BerhadAnnual Report 2003