Annual Report
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Malaysia Mining Corporation Berhad (30245-H) 2004 annual report Two tunnel boring machines, each almost the length of a football field, will bore 9.7 km under Kuala Lumpur city to create a stormwater tunnel that will divert flood water away from and bypass the city centre. Imaginative ideas and advanced technologies are employed to overcome some of our toughest problems. 01 cover rationale continuous momentum We have focused on consolidating our operations and growing our core businesses. From here on, we will continue the momentum to position the Group for future growth. 02 contents corporate 3 > 36 compliance and voluntary reports 37 > 58 financials 59 > 151 others 152 > 164 19 37 59 11 development growth opportunities performance 3 corporate information 55 additional compliance 4 5-year financial highlights information 5 profile of directors 56 corporate social responsibility report 13 management team 58 shared services report 15 chairman’s letter to stakeholders 59 financial statements 21 management’s discussion 152 shareholding statistics & analysis (MD&A) 155 list of properties 35 highlights of the year 161 notice of annual 39 audit committee report general meeting 43 statement on corporate governance 163 statement accompanying 49 internal control statement notice of annual general meeting 53 risk management report proxy form 03 corporate information Board of directors Dato’ Wira Syed Abdul Jabbar bin Syed Hassan Dato’ Ismail Shahudin Tan Sri Dato’ Thong Yaw Hong Tan Sri Dato’ Dr. Secretaries Abdul Khalid Sahan Elina Mohamed Tan Sri Dato’ Ir. (Dr.) Wan Abdul Muhammad Firdaus Abdullah Rahman bin Haji Wan Yaacob Registered office Dato’ Hilmi bin Mohd. Noor 10th Floor, Block B, HP Towers Dato’ Abdullah bin Mohd. Yusof No 12, Jalan Gelenggang Datuk Ir. (Dr.) Haji Ahmad Bukit Damansara Zaidee bin Laidin 50490 Kuala Lumpur Tel: +603 2092 5588 Encik Halim bin Haji Din Fax: +603 2093 9917 Datuk Mohd Sidik Shaik Osman Email: [email protected] Encik Feizal Ali (appointed on 24 March 2004) Website: www.mmc.com.my Auditors PricewaterhouseCoopers Chartered Accountants Share registrar Signet Share Registration Services Sdn Bhd Level 26, Menara Multi Purpose Capital Square, No. 8, Jalan Munshi Abdullah 50100 Kuala Lumpur Tel: +603 2721 2222 Fax: +603 2721 2530 Principal banker Bumiputra-Commerce Bank Berhad Stock exchange listing Main Board Malaysia Securities Exchange Board 1,167 7 469 583 847 6 730 5 5 5 703 674 405 249 290 228 220 205 248 112 96 87 73 47 36 RM in millions Sen 00 01 02 03 0400 01 02 03 04 00 01 02 03 04 00 01 02 03 04 Revenue EBITDA / EBIT Profit Dividend per before tax share 04 5-year financial highlights 2004 2003 2002 2001 2000 Profit before tax 220.5 205.4 228.8 469.1 249.3 Profit after tax and minority interest 116.2 110.7 165.4 400.0 104.5 Gross assets 7,310.2 7,018.2 2,977.8 3,438.0 2,600.8 Shareholders’ funds 3,103.9 3,008.8 2,043.4 1,904.2 1,579.7 Market value of quoted investments 2,239.8 1,761.1 1,671.2 1,593.1 1,503.3 Pre-tax return on shareholders’ funds (%) 7.1 7.4 11.2 24.6 15.8 Earnings per share (sen) 10.3 12.9 19.8 47.8 12.5 Dividend per share (sen) 5.0 5.0 5.0 7.0 6.0 Net asset per share (sen) 276.2 349.9 244.0 228.0 189.0 RM in millions Dato’ Wira Syed Abdul Jabbar bin Syed Hassan Dato’ Ismail Shahudin Tan Sri Chairman Group Chief Executive Dato’ Thong Yaw Hong Dato’ Wira Syed Abdul Dato’ Ismail Shahudin, 53, was Tan Sri Dato’ Thong Yaw Hong, 74, Jabbar bin Syed Hassan, 65, appointed Group Chief Executive and joined the Board on 27 October 1986 was appointed non- Executive Director of the Company on and is an independent Director. independent, non-executive 1 August 2002. He is also a member of He is also a member of the Audit, Chairman of the Company the Executive Committee of the Board. Nomination and Remuneration on 7 July 2000. Dato’ Wira Committees and the Senior Upon his graduation in 1974, Syed Abdul Jabbar also Independent Director of the Board. Dato’ Ismail joined ESSO Malaysia chairs the Nomination, Berhad and served for five years in its Tan Sri Dato’ Thong served in the Remuneration and Executive Finance division. He joined Citibank Economic Planning Unit in the Prime Committees of the Board. Malaysia in 1979 and served at the Minister’s Department since 1957 and Dato’ Wira Syed Abdul bank’s headquarters in New York in 1984 became its Director General from Jabbar was the Chief as part of the team in the Asia Pacific 1971 to 1978. He was the Secretary Executive Officer of the division. Upon his return to Malaysia, General of the Ministry of Finance Kuala Lumpur Commodity he was promoted to the position of Vice from 1979 until his retirement in 1986. Exchange from 1980 to 1996, President & Group Head of Public Tan Sri Dato’ Thong is the Chairman the Executive Chairman of Sector and Financial Institutions Group of Public Bank Berhad and the Public the Malaysia Monetary in Citibank Malaysia. In 1988, he served Bank Group of companies. He is also Exchange from 1996 to 1998 United Asian Bank Berhad as Deputy a Board member of Batu Kawan and the Executive Chairman General Manager until 1992 when the Berhad, Berjaya Land Berhad, of the Commodity and bank was taken over by the Bank of Gleanealy Plantations (M) Berhad, Monetary Exchange of Commerce. Subsequently, he joined Kuala Lumpur Kepong Berhad, Malaysia from 1998 to 2000. Maybank as General Manager of Public Finance Berhad, Public Corporate Banking and in 1997 Dato’ Wira Syed Abdul Merchant Bank Berhad, Malaysia was appointed Executive Director of Jabbar is a Malaysian Airports Holdings Berhad, HHB Maybank. He left Maybank in July 2002 Holdings Berhad and Berjaya citizen and holds a Bachelor to assume his current position at MMC. Sports Toto Berhad. of Economics degree and a Masters of Science degree Dato’ Ismail is a Malaysian citizen Tan Sri Dato’ Thong Yaw Hong is a in Marketing. He is also the and holds a Bachelor of Economics Malaysian citizen and graduated with Chairman of MARDEC (Honours) degree from University a Bachelor of Arts (Honours) degree Berhad and a Board member Malaya, majoring in Business in Economics from Universiti Malaya of Star Publications Administration. He is also Chairman of and a Masters degree in Public (Malaysia) Berhad, Malaysia Bank Muamalat Malaysia Berhad and Administration from Harvard Smelting Corporation sits on the Boards of Malakoff Berhad, University. He also attended the Berhad and Integrated Tronoh Mines Malaysia Berhad, Advanced Management Programme Rubber Corporation Berhad Malaysia Smelting Corporation Berhad, at Harvard University and is a (formerly known as Berjuntai Kramat Tin Dredging Berhad and member of the Institute of Bankers Tin Dredging Berhad). IJM Corporation Berhad. (Malaysia). 05-06 profile of directors Dato’ Wira Syed Abdul Dato’ Ismail Tan Sri Dato’ Jabbar bin Syed Hassan Shahudin Thong Yaw Hong Tan Sri Dato’ Dr. Tan Sri Dato’ Ir. (Dr.) Wan Abdul Abdul Khalid Sahan Rahman bin Haji Wan Yaacob Tan Sri Dato’ Dr. Abdul Khalid Tan Sri Dato’ Ir. (Dr.) Wan Abdul Rahman bin Sahan, 70, joined the Board Haji Wan Yaacob, 63, joined the Board on 26 August on 10 March 1989 as a non- 1999 as a non-independent, non-executive Director. independent, non-executive Tan Sri Dato’ Ir. (Dr.) Wan Abdul Rahman served in the Director. He is also a member of the Public Works Department since 1964 and became its Executive Committee of the Board. Director General from 1990 until his retirement in 1996. Tan Sri Dato’ Dr. Abdul Khalid Tan Sri Dato’ Ir. (Dr.) Wan Abdul Rahman is also the was a former Director General of Chairman of IJM Corporation Berhad and a Board the Health Ministry. He is the member of Lingkaran Trans Kota Holdings Berhad, Chairman of Tronoh Mines Malaysia Lysaght Galvanised Steel Berhad, Malaysian Berhad and Rating Agency Malaysia International Development Finance Berhad, Saujana Berhad and a Board member of Consolidated Berhad, Sime UEP Properties Bhd and Daibochi Plastic & Packaging Northport Corporation Berhad. Industry Berhad and Kejora Harta Tan Sri Dato’ Ir. (Dr.) Wan Abdul Rahman is a Berhad. Malaysian citizen and holds a Diploma in Tan Sri Dato’ Dr. Abdul Khalid is a Civil & Structural Engineering from the Brighton Malaysian citizen and holds a College of Technology, United Kingdom and is a M.B.B.S. (Malaya), D.P.H. (London) Fellow of the Chartered Institute of Buildings (U.K.), and D.I.H. (England). He is also a Institute of Highways & Transportation (U.K.), member of the Malaysian Medical Institute of Civil Engineers (UK) and the Institution Association. of Engineers, Malaysia. Dato’ Hilmi bin Mohd. Noor Dato’ Abdullah bin Mohd. Yusof Dato’ Hilmi bin Mohd. Noor, 62, joined the Dato’ Abdullah bin Mohd. Yusof, 65, Board on 10 October 2000 as a non- joined the Board as an independent independent, non-executive Director. Director on 31 October 2001. He is also Dato’ Hilmi is also a member of the a member of the Audit and Nomination Remuneration and Executive Committees Committees of the Board. of the Board. Dato’ Abdullah is a partner in the legal Dato’ Hilmi was a former Secretary firm of Abdullah & Zainuddin. He is General of the Ministry of Energy & also the Chairman of Jaya Jusco Multimedia. He is also the Chairman of Stores Berhad and a Board member of Kramat Tin Dredging Berhad and a Board Pernas International Holdings Berhad member of CN Asia Berhad, Johor Port and Tronoh Mines Malaysia Berhad.