SEGi_AR16 (CORP)v3.qxp_Layout 1 4/28/17 9:24 AM Page b VISION SEGi will place quality education within the reach of willing minds and natural talents. MISSION To be the premier regional higher education provider offering quality employability-based international programmes on accessible terms, delivered through the most innovative technologies and student- centric learning techniques. Cover Rationale At SEGi, we are shaping the future by educating the leaders of tomorrow. Thousands of the best and brightest young minds from around the world gather at our five campuses to learn via innovative technologies and student-centric techniques. We take great pride in developing their potential, so that they can contribute significantly to the enhancement of life on earth. SEGi_AR16 (CORP)v3.qxp_Layout 1 4/28/17 9:24 AM Page 1 CONTENTS 02 03 04 06 14 Corporate Financial Board of Directors’ Management Information Highlights Directors Profile Discussion & Analysis 28 29 31 33 38 Senior Key Management Key Academic Key Academic At Our Heart: Management Members Council Members Team Members SEGi Programmes 44 48 54 58 62 Strong Foundation: Centre of Strategic Excellence Going Global SEGi Campuses Excellence Collaborations: at SEGi University Partners 64 70 84 98 99 Corporate 2016 at Corporate Other Information Statement of Directors’ Responsibility A Glance Governance Required by the Responsibilities Report Statement Bursa Securities Listing in respect of the Requirements Audited Financial Statements 100 102 105 109 198 Audit Statement on Risk Notice of Annual Financial Group Committee Management & General Meeting Statements Properties Report Internal Control 200 203 Analysis of SEGi Education • Proxy Form Shareholdings Network SEGi_AR16 (CORP)v3.qxp_Layout 1 4/28/17 9:24 AM Page 2 CORPORATE INFORMATION Board Of Directors Tan Sri Dato' Seri Megat Najmuddin Bin Mr. Nicholas Rupert Heylett Bloy Dato’ Seri Dr. Haji Megat Khas Non-Independent Non-Executive Director Independent Non-Executive Chairman Dato’ Amos Siew Boon Yeong Tan Sri Clement Hii Chii Kok Independent Non-Executive Director Group Managing Director Mr. Goh Leng Chua Datuk Mohamed Azahari Independent Non-Executive Director Bin Mohamed Kamil Executive Director / Group President Mr. Edwin Fua Chye Jin Non-Independent Non-Executive Director Ms. Hew Moi Lan Executive Director / Chief Executive Officer Company Secretaries Ms. Chong Poh Yee Ms. Hew Ling Sze (MIA 7620) (MAICSA 7010381) Registered Office 6th Floor, SEGi University Tel : 603 6287 3752 No. 9, Jalan Teknologi Fax : 603 6145 2679 Taman Sains Selangor Kota Damansara, PJU 5 47810 Petaling Jaya Selangor Darul Ehsan Auditors Ernst & Young (EY) Level 23A Menara Milenium Tel : 603 7495 8000 Jalan Damanlela Fax : 603 2095 5332 Pusat Bandar Damansara 50490 Kuala Lumpur Stock Exchange Listing Main Market of Bursa Malaysia Securities Berhad | Annual Report 2016 Registrar Symphony Share Registrars Sdn Bhd SEGi Level 6, Symphony House Tel : 603 7841 8000 Pusat Dagangan Dana 1 Fax : 603 7841 8151/52 Jalan PJU 1A/46 47301 Petaling Jaya 2 Selangor Darul Ehsan SEGi_AR16 (CORP)v3.qxp_Layout 1 4/28/17 9:24 AM Page 3 FINANCIAL HIGHLIGHTS Group Five Years Financial Summary 2012 2013 2014 2015 2016 RM’000 RM’000 RM’000 RM’000 RM’000 Revenue 284,863 236,774 242,012 253,183 260,133 Profit before tax 68,383 31,709 24,412 26,797 30,046 Profit for the year - attibutable to shareholders 60,343 32,978 23,363 24,046 27,111 Share capital 166,219 167,090 175,017 187,024 187,024 Shareholders’ fund 266,872 253,559 221,461 219,738 204,354 Total assets 386,160 355,037 375,479 356,438 300,314 Basic earnings per share (sen) 10.18 5.14 3.63 3.43 3.75 Dividend for the year (sen) 5.00 7.50 11.00 7.00 6.00 2016 Financial Summary +3% +12% +13% Annual Report 2016 PROFIT PROFIT FOR REVENUE BEFORE TAX THE YEAR (RM’000) (RM’000) (RM’000) | 260,133 30,046 27,111 SEGi 3 SEGi_AR16 (CORP)v3.qxp_Layout 1 4/28/17 9:24 AM Page 4 BOARD OF DIRECTORS | Annual Report 2016 SEGi Sitting: Tan Sri Dato’ Seri Megat Najmuddin Bin Dato’ Seri Dr. Haji Megat Khas 4 Standing from left to right: Mr. Nicholas Rupert Heylett Bloy, Datuk Mohamed Azahari Bin Mohamed Kamil, Ms. Hew Moi Lan SEGi_AR16 (CORP)v3.qxp_Layout 1 4/28/17 9:24 AM Page 5 BOARD OF DIRECTORS (continued) Annual Report 2016 | SEGi Sitting: Tan Sri Clement Hii Chii Kok Standing from left to right: Mr. Edwin Fua Chye Jin, Mr. Goh Leng Chua, Dato’ Amos Siew Boon Yeong 5 SEGi_AR16 (CORP)v3.qxp_Layout 1 4/28/17 9:24 AM Page 6 DIRECTORS’ PROFILE TAN SRI DATO’ SERI MEGAT NAJMUDDIN BIN DATO’ SERI DR. HAJI MEGAT KHAS Independent Non-Executive Chairman - Malaysian - Aged 72, he was appointed to the Board on 2 February 2001 and assumed the position as Chairman on 27 August 2008. Tan Sri Dato’ Seri Megat Najmuddin was a lawyer by profession who Darul Ridzuan in Wilayah Persekutuan and Selangor (a welfare obtained his Honours Degree in Law from Singapore University in organisation). Besides, he is the Advisor of Tan Sri Muhyiddin 1970. He started his working life in 1970 with First National City Charity Golf; and also a trustee of MyKasih (Charity) Foundation Bank (now Citibank) for 2 years and went into law practice with a and the Vijayaratnam Foundation. leading law firm in Kuala Lumpur for another two years, after which he started his own law firm which flourished. In 1986 he retired from In business, Tan Sri Dato’ Seri Megat Najmuddin is Chairman of law practice and went headlong into politics, ultimately becoming Asian Pac Holdings Berhad, Omesti Berhad and MajuPerak UMNO Chief of Petaling Jaya. He then served as State Assemblyman Holdings Berhad. He also serves as a Non-Executive Independent of Kelana Jaya in Selangor for two terms (1986-1995) and as Director of PETRONAS. municipal councillor for two decades. In SEG International Bhd, Tan Sri Dato’ Seri Megat Najmuddin Tan Sri Dato’ Seri Megat Najmuddin is active in Non-Governmental also serves as the Chairman of the Nominating and Remuneration Organisations (NGOs). He was elected as Executive Committee Committees and has attended five Board meetings held during | Annual Report 2016 Member of the Federation of Public Listed Companies Berhad the year. (FPLC) in August 1994 and was elected as its President in October SEGi 1997. He represented this organisation to the High Level Finance He has no family relationship with any director and/or major Committee of the Ministry of Finance until 2000. He was the shareholder of the Company. He has not entered into any President of Kelab Golf Negara Subang and the Malay College Old transaction, whether directly or indirectly, which has a conflict of Boys’ Association (MCOBA). He was the President of Malaysian interest with the Company, other than those disclosed in the Institute of Corporate Governance (MICG) and currently the accompanying financial statements, if any, and has no conviction of 6 Honorary Patron of MICG. He is current President of Persatuan offences within the past five years other than traffic offences, if any. SEGi_AR16 (CORP)v3.qxp_Layout 1 4/28/17 9:24 AM Page 7 DIRECTORS’ PROFILE (continued) TAN SRI CLEMENT HII CHII KOK Group Managing Director - Malaysian - Aged 59, he was appointed to the Board on 3 September 2001 as an Executive Director of the Company and subsequently assumed the position of Chief Executive Officer on 10 October 2001. On 27 August 2008, Tan Sri Clement Hii was appointed from June 2012 to April 2014. Currently, Tan Sri Clement Hii the Managing Director/Chief Executive Officer and re-designated is the Executive Chairman of HCK Capital Group Bhd. He also as Group Managing Director in January 2009. Tan Sri Clement Hii holds positions in numerous private limited companies and is also a member of the Remuneration Committee, charitable foundations. Executive Committee and Long Term Incentive Plan Committee of the Company. Tan Sri Clement Hii attended all the five Board meetings held during the year ended 31 December 2016. Annual Report 2016 He graduated with a Bachelor of Laws (Hons) degree from the United Kingdom. He was conferred honorary doctorate degrees by He has no family relationship with any director and/or major the University of Sunderland, University of Southern Queensland shareholder of the Company. He has not entered into any and his alma mater, the University of Wolverhampton. transaction, whether directly or indirectly, which has a conflict of interest with the Company, other than those disclosed in the He was the Executive Deputy Chairman of Star Publications (M) accompanying financial statements and has no conviction for Bhd for two years, until end of December 2010. He was also a offences within the past five years other than traffic offences, if any. | Non-Independent Non-Executive Director of SYF Resources Berhad SEGi 7 SEGi_AR16 (CORP)v3.qxp_Layout 1 4/28/17 9:24 AM Page 8 DIRECTORS’ PROFILE (continued) Datuk Mohamed Azahari Bin Mohamed Kamil Executive Director / Group President - Malaysian - Aged 58, he was appointed to the Board on 24 May 2016. Datuk Mohamed Azahari Bin Mohamed Kamil is a member of Risk Fellow for Public Universities on the International Islamic University Management Committee and Executive Committee of the Company. of Malaysia (IIUM). Datuk Mohamed Azahari is a Chartered Banker as well as a Datuk Mohamed Azahari is also the Corporate Advisor for Johor Chartered Professional in Islamic Finance of the Asian Institute of Corporation and a Board member of its subsidiary companies, Chartered Bankers. He holds a Master of Business Administration Syarikat Larkin Sentral Property Sdn Bhd and QSR Brands (M) (Finance) from Central Michigan University and a Bachelor Degree Holdings Sdn Bhd.