GENTING BERHAD ANNUAL REPORT 2014 ANNUAL REPORT Forging ahead towards the Genting Group’s 50th year and beyond Genting Berhad (7916-A) 24th Floor, Wisma Genting Jalan Sultan Ismail 50250 Kuala Lumpur, Malaysia T : +603 2178 2288 / 2333 2288 F : +603 2161 5304 ANNUAL www.genting.com GENTING BERHAD (7916-A) REPORT Genting Berhad (7916-A) 24th Floor, Wisma Genting Jalan Sultan Ismail 50250 Kuala Lumpur, Malaysia T : +603 2178 2288 / 2333 2288 F : +603 2161 5304 www.genting.com Genting, the Genting logo and all Genting elements and related indicia ™ & © 2015 Genting International Management Limited. All rights reserved. Puss In Boots © 2015 DreamWorks Animation L.L.C. Battlestar Galactica ® Universal Studios. © Universal Network Television LLC. All rights reserved. UNIVERSAL STUDIOS, UNIVERSAL STUDIOS SINGAPORE, Universal Globe logo, and all Universal elements and related indicia TM & © Universal Studios. All Rights Reserved. Resorts World, the Resorts World logo and all Resorts World elements and related indicia TM & © Genting International Management Limited. All rights reserved. Those who view the world with vision Rising above have the power to change it. Forging ahead Every instinct in the human being was made for movement – and moving forth. Here at Genting, we took our instincts a step further by moving forward in time…and going forth into the unknown. Even if we had to overcome the seemingly impossible. Genting Group stands on a mountain of hard-won achievements. Yet even now, our journey is far from over. For us, the road goes ever on and on. In everything we do lies an enduring visionary spirit that keeps us as young as when we first began. Here’s to 50 years of passion. And countless more years of burning ambition. Here’s to a future forged by the strength to say Yes to the impossible. Relive the Genting journey at www.genting50.com WHAT DO YOU SEE? Celebrating Genting’s 50th anniversary 2015 A whole year of thrills and rewards awaits you! 2015 marks 50 years of excellence at Genting. Enjoy the best in food, entertainment, live music and a host of attractions at Resorts World properties. Be part of the excitement as we forge ahead to greater times. Check out the latest offers and attractions at www.resortsworld.com We are a leading multinational corporation committed to enhancing shareholder value and maintaining long-term OUR VISION sustainable growth in our core businesses. ////////////////////////////////////////////////////////////////// OUR MISSION We will: Be responsive to the changing demands of our customers and excel in providing quality products and services. Be committed to innovation and the adoption of new technology to achieve competitive advantage. Generate a fair return to our shareholders. Pursue personnel policies which recognise and reward performance and contributions of employees and provide proper training, development and opportunities for career advancement. Be a responsible corporate citizen, committed to enhancing corporate governance and transparency. ////////////////////////////////////////////////////////////////// Genting Berhad is the holding company of the Genting Group CORPORATE (www.genting.com), one of Asia’s leading and best-managed multinationals. The Genting Group is led by Tan Sri Lim Kok Thay, a visionary entrepreneur who has established Resorts World branded properties in Malaysia, Singapore, the PROFILE Philippines, the United States, the Bahamas, the United Kingdom and soon in South Korea, as well as spearheading global investments in oil palm plantations, power generation, oil and gas, property development, cruise, biotechnology and other industries. The Genting Group and its affiliates comprise five public companies listed on the stock exchanges of Malaysia, Singapore and Hong Kong - namely Genting Berhad, Genting Malaysia Berhad (“Genting Malaysia”), Genting Plantations Berhad (“Genting Plantations”), Genting Singapore PLC (“Genting Singapore”) and Genting Hong Kong Limited. The five listed companies have a combined market capitalisation of about RM110 billion (USD31 billion). The Group and its affiliates employ more than 60,000 people worldwide and has over 4,500 hectares of prime resort land and 246,000 hectares of plantation land. Genting’s premier leisure brands include “Resorts World”, “Genting Club”, “Crockfords” and “Maxims”. In addition to Premium Outlets®, Genting companies have tie ups with Universal Studios®, Hard Rock Hotel, Twentieth Century Fox and other renowned international brand partners. Backed by 50 years of solid financials and strong management leadership, the Genting Group is committed to grow in strength as a responsible global corporation. CONTENTS Chairman’s Statement / Penyata Pengerusi / 主席文告 2 Financial Statements: Board of Directors 10 Income Statements 69 Directors’ Profile 12 Statements of Comprehensive Income 70 Management & Corporate Information 16 Statements of Financial Position 71 Group Corporate Structure 17 Statements of Changes in Equity 72 Corporate Diary 18 Statements of Cash Flows 75 Financial Highlights 19 Notes to the Financial Statements 78 Management’s Discussion and Analysis of Business Statement on Directors’ Responsibility 164 Operations and Financial Performance 20 Statutory Declaration 164 Year in Review 22 Independent Auditors’ Report 165 Awards and Accolades 38 Five-Year Summary 166 Sustainability Report 39 List of Properties Held 167 Corporate Governance 51 Analysis of Shareholdings/Warrantholdings 172 Audit Committee Report 58 Notice of Annual General Meeting 176 Statement on Risk Management and Internal Control 61 Statement Accompanying Notice of Directors’ Report and Statement by Directors 63 Annual General Meeting 180 Form of Proxy Group Offices Genting Premier Brands CHAIRMAN’S STATEMENT Dear Fellow Shareholders, It gives me great pleasure to inform you that the Genting Group is celebrating the 50th anniversary of its historic founding this year. As we enter into a new era, we will continue to grow and forge ahead into the future. We aim to be a trendsetter in the international integrated resorts arena, whilst strengthening our Genting and Resorts World brands globally. On behalf of the Board of Directors, I am pleased to report that Genting Berhad (“the Company”) and its group of companies (“the Group”) have performed well despite the continued uncertainty of the global economy, weak regional currencies, adverse conditions in the Asian gaming industry and escalating inflationary pressures. In 2014, the Group recorded revenue of RM18.2 billion (2013: RM17.1 billion) while adjusted earnings before interest, tax, depreciation and amortisation was RM6.6 billion (2013: RM6.1 billion) from continuing operations. We will continue to work diligently to fortify Genting’s businesses worldwide, especially the Resorts World properties in Malaysia, Singapore and other countries in the world. Resorts World Genting and Resorts World Sentosa have transformed the tourism landscape in their respective countries while creating thousands of jobs and attracting millions of visitors every year. Resorts World Sentosa, the first integrated resort to operate in Singapore, is celebrating its 5th anniversary this year. I am pleased to inform that the resort has been voted “Best Integrated Resort” for four consecutive years at the Travel Trade Gazette Travel Awards, which recognises the best travel industry players in Asia Pacific. Universal Studios Singapore launched a new ride attraction, “Puss In Boots’ Giant Journey” in April 2015 and will soon re-launch Battlestar Galactica, a thrilling dueling roller coaster. Genting Hotel Jurong, the seventh hotel property of Resorts World Sentosa was opened on 30 April 2015. This 550-room hotel located in Jurong, is part of our business strategy to drive more visitors to Resorts World Sentosa. 2 GENTING BERHAD Annual Report 2014 CHAIRMAN’S STATEMENT (cont’d) Genting Malaysia has embarked on a massive project to I am pleased to report that Resorts World Las Vegas broke transform Resorts World Genting under the Genting Integrated ground on 5 May 2015. The resort is expected to open its Tourism Plan (“GITP”). GITP is expected to complete in doors in mid-2018. This new Chinese-themed resort will phases from 2016 onwards. include three hotels with 3,500 total rooms, a world-class casino, numerous dining and retail outlets, a top tier nightlife The development of GITP was showcased in December 2014 venue and extensive entertainment options to cater to both via Horizon 50, an immersive visual experience that presents high-end visitors and budget-minded tourists. We will give a glimpse of the fascinating journey of Resorts World Genting first-time guests a new reason to visit Las Vegas and other and its many new attractions to come. Visitors can discover tourists a good reason to return. something new each time they visit Horizon 50, in line with the constant developments of the Group. The showcase event In South Korea, Genting Singapore’s joint venture project, also introduced Tan Sri Michelle Yeoh, a world-renowned Resorts World Jeju broke ground on 12 February 2015. The actress appointed as the resort’s new brand ambassador and resort is expected to open in 2017 and will include a world- Sky Avenue, the upcoming lifestyle mall in Resorts World class theme park, meetings & conventions facilities, sizeable Genting. retail space, gaming and entertainment facilities as well as luxury hotels. It is highly anticipated to be a magnet for the In the United Kingdom (“UK”), we will focus on implementing regional