Ytl Corporation Berhad 92647-H
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YTL CORPORATION BERHAD YTL CORPORATION 92647-H YTL CORPORATION BERHAD 92647-H 11th Floor Yeoh Tiong Lay Plaza 55 Jalan Bukit Bintang 55100 Kuala Lumpur YTL Malaysia CORPORATION Tel • 603 2117 0088 603 2142 6633 BERHAD 92647-H Fax • 603 2141 2703 www.ytl.com www.ytlcommunity.com the journey continues... annual report 2014 annual report 2014 Contents Corporate 002 Financial Highlights 053 Statement of Directors’ Responsibilities Review 004 Chairman’s Statement 054 Audit Committee Report 010 Managing Director’s Review 058 Nominating Committee Statement 012 Operations Review 061 Statement on Corporate Governance 032 Corporate Events 066 Statement on Risk Management & 042 Notice of Annual General Meeting Internal Control 045 Statement Accompanying 070 Analysis of Shareholdings Notice of Annual General Meeting 072 Statement of Directors’ Interests 046 Corporate Information 076 Schedule of Share Buy-Back 048 Profile of the Board of Directors 077 List of Properties Financial 081 Directors’ Report 098 Statements of Financial Position Statements 093 Statement by Directors 101 Statements of Changes in Equity 093 Statutory Declaration 104 Statements of Cash Flows 094 Independent Auditors’ Report 107 Notes to the Financial Statements 096 Income Statements 268 Supplementary Information 097 Statements of Comprehensive Income • Form of Proxy YTL CORPORATION BERHAD (92647-H) YTL Corporation Berhad Financial Highlights 2014 2013 2012 2011 2010 (Restated) (Restated) Revenue (RM‘000) 19,269,237 20,033,117 20,195,789 18,354,770 16,505,033 Profit Before Taxation (RM‘000) 2,811,599 2,299,379 2,450,154 2,351,949 2,278,404 Profit After Taxation (RM‘000) 2,604,930 1,830,905 1,974,090 1,835,920 1,619,092 Profit for the Year Attributable to 1,554,980 1,266,665 1,181,123 1,034,569 844,165 Owners of the Parent (RM‘000) Total Equity Attributable to 14,386,764 13,142,113 11,943,641 10,365,853 9,630,115 Owners of the Parent (RM’000) Earnings per Share (Sen) 15.00 12.20 12.25 11.53 9.45 Dividend per Share (Sen) 2.5 2.5 4.0 2.0 1.5 Total Assets (RM‘000) 61,042,410 53,603,401 51,599,872 48,266,185 46,060,048 Net Assets per Share (RM) 1.39 1.27 1.23 1.15 1.07 002 Annual Report 2014 Financial Highlights 2,811,599 2,604,930 20,195,789 20,033,117 19,269,237 18,354,770 2,450,154 2,351,949 2,299,379 2,278,404 16,505,033 1,974,090 1,835,920 1,830,905 1,619,092 Profit Profit Before After Revenue Taxation Taxation (RM’000) (RM’000) (RM’000) 10 11 12 13 14 10 11 12 13 14 10 11 12 13 14 15.00 1,554,980 14,386,764 12.25 12.20 11.53 13,142,113 1,266,665 1,181,123 9.45 11,943,641 1,034,569 Profit for 844,165 10,365,853 9,630,115 the Year Total Equity Attributable Attributable to Owners to Owners of the of the Earnings Parent Parent per Share (RM’000) 10 11 12 13 14 (RM’000) 10 11 12 13 14 (Sen) 10 11 12 13 14 4.0 1.39 1.27 1.23 1.15 1.07 61,042,410 53,603,401 51,599,872 2.5 2.5 48,266,185 46,060,048 2.0 1.5 Dividend Total Net Assets per Share Assets per Share (Sen) 10 11 12 13 14 (RM’000) 10 11 12 13 14 (RM) 10 11 12 13 14 003 YTL Corporation Berhad Chairman’s Statement TAN SRI DATO’ SERI (DR) YEOH TIONG LAY Executive Chairman On behalf of the Board of OVERVIEW The Malaysian economy recorded Directors of YTL Corporation gross domestic product (GDP) growth The Group performed well for the Berhad (“YTL Corp” or the of 4.7% for the 2013 calendar year, financial year under review with the “Company”), I have the affected by a weaker external sector, cement, property development and compared to 5.6% in 2012. However, pleasure of presenting to you investment and hotels divisions the Annual Report and the the first half of 2014 registered delivering strong results. In the utilities stronger growth of approximately audited financial statements division, the power generation, 6.3%, supported by higher exports of the Company and its water and sewerage and mobile and continued strength in private subsidiaries (the “Group”) broadband segments registered better domestic demand. Meanwhile, in for the financial year ended performance, offsetting lower sales in other major economies where the 30 June 2014. the merchant multi-utilities division. Group operates, the United Kingdom 004 Annual Report 2014 Chairman’s Statement (UK) registered growth of approximately being impacted by lower vesting Construction Contracting 1.8% during 2013, with the first 6 non-fuel margins and volumes, whilst The domestic construction sector’s months of 2014 showing improved in Malaysia, the Yes mobile Internet growth tapered to 10.9% for the 2013 growth. Singapore’s economy grew with voice service registered good calendar year compared to the 18.6% 4.1% in 2013 over 1.9% in 2012, growth of its subscriber base. surge in 2012. However, construction although growth had moderated to activity was buoyant for the first approximately 2.4% at the end of the Cement Manufacturing half of the 2014 calendar year with second quarter of the 2014 calendar Malaysia’s cement industry remained growth of 14.3%, owing mainly to the year (sources: Ministry of Finance robust in tandem with the ongoing residential segment and large-scale Malaysia, Bank Negara Malaysia, strength of the construction sector, infrastructure projects in the civil Singapore Ministry of Trade & Industry, supported by better performance engineering sub-sector, including the UK Office for National Statistics updates across the board in the non-residential ongoing rail extension projects across & reports). building and civil engineering, the Klang Valley (sources: Ministry of residential and special trade subsectors Finance, Bank Negara Malaysia updates Utilities (source: Ministry of Finance updates & reports). The utilities division recorded a sound & reports). set of results for the financial year During the financial year, the under review, led by its power The Group’s cement division achieved construction division completed work generation and water and sewerage another excellent performance for the on several phases in the Group’s operations. The Group’s merchant financial year, supported by the residential property developments, with multi-utilities business in Singapore strength of its operations across progress well underway on the newer continued to perform well despite Malaysia and Singapore. launches such as The Fennel in Sentul. 005 YTL Corporation Berhad Chairman’s Statement Operation & Maintenance (O&M) Property Development & Investment Meanwhile, the Group increased its Activities Consumer sentiment began to show stake in Singapore-listed Starhill In its O&M division, the Group signs of moderation as the domestic Global REIT to 36.27% (from 29.38% provides condition monitoring services property market digests the cooling previously) via the conversion of for its power stations, cement plants measures introduced last year to curb convertible preference units held in and the Express Rail Link (ERL), in highly speculative activities, including the Trust. Starhill Global REIT, which addition to external clients in the oil measures to control excessive owns retail and office assets in and gas, water, chemical engineering household debt levels and reinforce Singapore, Malaysia, Australia, Japan and other sectors. responsible lending practices, the and China, delivered another strong removal of arrangements such as the set of results for the year, underpinned Internationally, the Group carries out Developer Interest Bearing Scheme mainly by its assets in Singapore, O&M for the 480 megawatt (MW) (DIBS) and the revisions in the real Malaysia and Australia. Deir Amar and 480 MW Zahrani property gains tax regime (sources: combined-cycle power stations in Ministry of Finance economic reports; Hotel Development & Management Lebanon. For its financial year ended Bank Negara Malaysia quarterly Malaysia’s tourism industry achieved a 31 December 2013, net generation at bulletins and annual reports). 2.8% growth in tourist arrivals to 25.7 the Deir Amar station increased to million for the 2013 calendar year. 2,947 gigawatt hours (GWh) whilst The Group has maintained its long- Visit Malaysia Year 2014 was launched generation at the Zahrani station was standing stance in timing and pricing in January this year, with a target of 2,966 GWh. Despite ongoing military its launches to meet the demands of attracting 28 million tourists for the activity in the Tripoli area during the genuine buyers and, during the year full year, and saw an increase in tourist year, the division continued to fulfil under review, continued to focus on arrivals of approximately 10% the first its contract requirements with the its ongoing developments in its Sentul five months of 2014 over the same highest commitment. urban regeneration project, The Capers period last year as programmes under and The Fennel, as well as its exclusive this initiative get underway (sources: project in Singapore, 3 Orchard By- Ministry of Finance, Bank Negara The-Park, which has already been Malaysia, Tourism Malaysia updates). awarded the BCA Green Mark Gold Plus Award 2014 by the Building Control Authority of Singapore. 006 Annual Report 2014 Chairman’s Statement Meanwhile, in international economies Information Technology Initiatives Higher revenue from the Group’s where the Group operates, Japan’s The domestic information technology cement, property development and economy registered measured growth and communications sector continued investment and hotels divisions was of about 1.5% for the 2013 calendar to register moderate growth, with the offset mainly by lower revenue in the year and has continued to recover broadband penetration rate increasing construction division as well as the moderately as a trend, although a to approximately 67.2% as at the end utilities segment which was affected subsequent decline in demand has of June 2014, supported by improved by fewer units of electricity sold, been observed following the network coverage and facilities, as lower fuel oil trading activities and consumption tax hike from 5% to 8% well as upgraded 4G services (source: lower margins on retail contracts in in April this year.