Ytl Corporation Berhad 92647-H
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YTL CORPORATION BERHAD 92647-H the journey continues... YTL CORPORATION BERHAD YTL CORPORATION www.ytlcommunity.com YTL CORPORATION BERHAD 92647-H 11th Floor Yeoh Tiong Lay Plaza 55 Jalan Bukit Bintang 55100 Kuala Lumpur Malaysia Tel • 603 2117 0088 603 2142 6633 Fax • 603 2141 2703 92647-H annual report 2009 annual report 2009 Contents Corporate Review 2 Financial Highlights 4 Chairman’s Statement 12 Managing Director’s Review 14 Operations Review 32 Corporate Events 44 Notice of Annual General Meeting 47 Statement Accompanying Notice of Annual General Meeting 48 Corporate Information 49 Profile of the Board of Directors 53 Statement of Directors’ Responsibilities 54 Audit Committee Report 57 Statement on Corporate Governance 61 Statement on Internal Control 64 Analysis of Shareholdings 66 Statement of Directors’ Interests 71 Schedule of Share Buy-Back 72 List of Properties Financial Statements 76 Directors’ Report 90 Statement by Directors 90 Statutory Declaration 91 Independent Auditors’ Report 93 Income Statements 94 Balance Sheets 96 Consolidated Statement of Changes in Equity 100 Statement of Changes in Equity 101 Cash Flow Statements 104 Notes to the Financial Statements Form of Proxy YTL CORPORATION BERHAD 92647-H annual report 2009 YTL CORPORATION BERHAD Financial Highlights 2 annual report 2009 2009 2008 2007 2006 2005 Revenue (RM’000) 8,892,125 6,549,860 6,015,309 5,496,373 4,936,850 Profit Before Taxation (RM’000) 2,288,197 1,829,842 1,555,744 1,469,954 1,256,603 Profit After Taxation (RM’000) 1,401,615 1,376,487 1,340,308 1,190,428 910,716 Profit for the Year Attributable to Shareholders of the Company (RM’000) 834,472 769,786 701,371 698,009 558,516 Total Equity Attributable to Shareholders of the Company (RM’000) 9,447,165 7,714,420 7,396,831 6,814,678 5,562,388 Earnings per Share (Sen) 54.10 51.54 47.72 49.39 39.97 Dividend per Share (Sen) 2.5 25 25 7.5 7.5 Total Assets (RM’000) 45,413,832 38,458,561 33,912,520 30,370,822 28,980,646 Net Assets per Share (RM) 5.37 5.16 4.91 4.74 3.91 REVENUE PROFIT BEFORE RM‘000 TAXATION RM‘000 8,892,125 2,288,197 1,829,842 6,549,860 6,015,309 1,555,744 5,496,373 1,469,954 4,936,850 1,256,603 05 06 07 08 09 05 06 07 08 09 PROFIT AFTER PROFIT FOR THE YEAR TAXATION ATTRIBUTABLE TO RM‘000 SHAREHOLDERS OF THE COMPANY RM‘000 1,401,615 1,376,487 1,340,308 834,472 769,786 1,190,308 701,371 698,009 910,716 558,516 05 06 07 08 09 05 06 07 08 09 YTL CORPORATION BERHAD annual report 2009 3 TOTAL EQUITY EARNINGS ATTRIBUTABLE TO PER SHARE SHAREHOLDERS OF SEN THE COMPANY 54.10 51.54 RM‘000 49.39 47.72 9,447,165 39.97 7,714,420 7,396,831 6,814,678 5,562,388 05 06 07 08 09 05 06 07 08 09 DIVIDEND TOTAL ASSETS PER SHARE RM‘000 25.0 SEN 25.0 45,413,832 38,458,561 33,912,520 30,370,822 28,980,646 7.5 7.5 2.5 05 06 07 08 09 05 06 07 08 09 NET ASSETS PER SHARE RM 5.37 5.16 4.91 4.74 3.91 05 06 07 08 09 YTL CORPORATION BERHAD Chairman’s Statement 4 annual report 2009 for the financial year ended 30 June 2009 On behalf of the Board of Directors of YTL Corporation Berhad (“YTL Corp” or the “Company”), I have the pleasure of presenting to you the Annual Report and the audited financial statements of the Company and its subsidiaries (“Group”) for the financial year ended 30 June 2009. OVERVIEW YTL Corp achieved a robust set of results for the financial year ended 30 June 2009 on the back of acquisition-driven growth in its utilities and property investment divisions, and better selling TAN SRI DATO’ SERI (DR) YEOH TIONG LAY prices and improved operational performance in its cement Executive Chairman division. YTL CORPORATION BERHAD annual report 2009 5 Global gross domestic product (GDP) Utilities Following the price liberalisation undertaken growth stood at an approximately 3.4% by the Government last year, prices have for the 2008 calendar year compared to The addition of PowerSeraya to the begun to reflect customer preferences and 5.2% in 2007, sustained largely by growth Group’s utility portfolio represents demand and supply equilibrium. The in the first half of 2008. In the second half significant participation in the Singapore liberalised cost structure has enabled the of the year, the unprecedented energy market and will enable the Group Group to better manage steeper production developments in the international financial to grow its utility business in the region. costs arising from increases in the costs of markets triggered a widespread loss of As an established industry player with a raw materials, packaging and transportation, confidence that continues to manifest itself strong track record in utility investments, whilst at the same time offering customers in ongoing volatility in economies around the Group has the ability to utilise its the most advantageous terms and the the globe. On the Malaysian front, after expertise and experience to add value to highest quality products. As a result, the recording GDP growth of 4.6% in 2008 Singapore’s electricity market, and Group remains well-positioned in its ability (compared to 6.2% in 2007), the domestic PowerSeraya in particular. to cater to the requirements of its customer economy contracted by an estimated 5.1% base. in the first half of 2009 (source: Ministry of The Group’s diversified income streams Finance quarterly updates; Bank Negara continue to provide an optimal buffer Regionally, the division continued to Malaysia quarterly bulletins and annual against ongoing economic volatility both streamline and improve operations at its reports). in Malaysia and abroad and its China plant, and continued to see increases concentration on the ownership and in export demand during the year under Despite these difficult economic conditions management of regulated utilities operating review, enabling the Group to further and ongoing volatility, both locally and under long-term concessions underpins develop this extensive new market for its internationally, YTL Corp continued to the Group’s ability to continue to perform products. grow organically and also embarked on well even in times of global economic two significant acquisitions in Singapore uncertainty. during the year under review. Construction Contracting These businesses now encompass power On 31 December 2008, the Group generation in both contracted and The local construction sector recorded a completed its acquisition of a 26% stake merchant markets in Malaysia, Singapore positive growth rate for the second in Starhill Global Real Estate Investment and Indonesia, power transmission in successive year in 2008, with growth of Trust (“Starhill Global REIT”) and 50% of Australia, the provision of water and 2.1%, supported by higher activities across the holding company of Starhill Global sewerage services in the United Kingdom the civil engineering, residential and non- REIT’s manager. Listed on the Singapore (“UK”), and plant operations and residential sub-sectors. In the first half of stock exchange, Starhill Global REIT owns maintenance (“O&M”). the 2009 calendar year, the construction stakes in Ngee Ann City and Wisma Atria, industry continued to register higher two landmark properties on Singapore’s Foreign operations remain the most growth as implementation commenced on renowned Orchard Road shopping significant contributors to the earnings of projects related to the Government’s precinct, as well as 7 properties in the the Group’s utilities division, and the stimulus packages (source: Ministry of prime Tokyo areas of Aoyama, Roppongi, addition of PowerSeraya to the fold during Finance quarterly updates; Bank Negara Harajyuku, Meguro and Ebisu, and a the year under review has reinforced the Malaysia quarterly bulletins and annual premier retail property in Chengdu, strength and diversity of the Group’s reports). China. earnings base. The Group’s construction division Then, in March 2009, the Group acquired performed steadily throughout the year a 100% equity interest in PowerSeraya Cement Manufacturing under review, completing construction on Limited (“PowerSeraya”) in Singapore for several phases of residential housing a purchase consideration of SGD3.6 The Group’s cement division delivered projects, and continuing work on the billion. With a total licensed capacity of another strong set of results for the year Electrified Double Track Railway Project 3,100 megawatts, PowerSeraya owns under review, sustained by its strategy of between Sentul and Batu Caves for approximately 25% of Singapore’s total organic and acquisition-driven growth, Malaysia’s Ministry of Transport. licensed generation capacity, and also coupled with increased plant and logistical operates oil trading and multi-utility efficiencies. businesses. YTL CORPORATION BERHAD Chairman’s Statement for the financial year ended 30 June 2009 6 annual report 2009 YTL CORPORATION BERHAD annual report 2009 7 O&M Activities In light of economic volatility and the tightening in bank lending conditions, the There has been sound growth in the Group proceeded with caution in launching business development of the Group’s new phases in order to avoid building O&M activities. Condition monitoring new phases during a period when services are currently being provided for consumers have decided to hold back on the Group’s power plants, cement plants home ownership decisions. The Group and the Express Rail Link (“ERL”), in remains committed to its long-term vision addition to external clients in the oil and for its communities and this strategy has gas, water, chemical engineering and been borne out in the form of appealing other sectors.