YTL POWER INTERNATIONAL BERHAD 406684-H the journey continues... www.ytlpowerinternational.com YTL POWER INTERNATIONAL BERHAD www.ytlcommunity.com YTL POWER INTERNATIONAL BERHAD 406684-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 406684-H annual report 2013 annual report 2013 Contents Corporate Review Financial Highlights 2 Chairman’s Statement 4 Corporate Events 12 Notice of Annual General Meeting 16 Statement Accompanying Notice of Annual General Meeting 20 Corporate Information 21 Profile of the Board of Directors 22 Statement of Directors’ Responsibilities 27 Audit Committee Report 28 Statement on Corporate Governance 32 Statement on Risk Management & Internal Control 36 Disclosure of Recurrent Related Party Transactions of a Revenue or Trading Nature 40 Analysis of Share/Warrant Holdings 43 Statement of Directors’ Interests 47 Schedule of Share Buy-Back 51 List of Properties 52 Financial Statements Directors’ Report 54 Income Statements 65 Statements of Comprehensive Income 66 Statements of Financial Position 67 Consolidated Statement of Changes in Equity 69 Company Statement of Changes in Equity 71 Statements of Cash Flows 72 Notes to the Financial Statements 74 Statement by Directors 165 Statutory Declaration 165 Independent Auditors’ Report 166 Form of Proxy YTL POWER INTERNATIONAL BERHAD 406684-H FINANCIAL HIGHLIGHTS 2013 2012 2011 2010 2009 Revenue (RM‘000) 15,835,993 15,870,343 14,662,559 13,442,917 6,093,394 Profit Before Taxation (RM‘000) 1,329,423 1,391,476 1,556,906 1,684,915 1,386,872 Profit After Taxation (RM‘000) 1,044,759 1,156,961 1,247,462 1,208,712 646,593 Profit for the Year Attributable to 1,069,646 1,232,211 1,364,168 1,208,838 646,605 Owners of the Parent (RM‘000) Total Equity Attributable to Owners 10,004,044 9,259,708 8,335,475 7,210,066 6,101,924 of the Parent (RM‘000) Earnings per Share (Sen) 14.74 16.99 18.93 18.60 11.35 Dividend per Share (Sen) 1.88 5.64 9.39 13.13 15.75 Total Assets (RM‘000) 38,926,260 38,970,196 35,245,784 33,918,933 34,689,180 Total Equity Attributable to Owners 1.41 1.27 1.15 1.00 1.04 of the Parent per Share (RM) 1,684,915 15,870,343 15,835,993 1,556,906 14,662,559 1,391,476 13,442,917 1,386,872 1,247,462 1,329,423 1,208,712 1,156,961 1,044,759 646,593 6,093,394 ’09 ’10 ’11 ’12 ’13 ’09 ’10 ’11 ’12 ’13 ’09 ’10 ’11 ’12 ’13 REVENUE PROFIT BEFORE TAXATION PROFIT AFTER TAXATION (RM’000) (RM’000) (RM’000) 18.93 18.60 16.99 10,004,044 9,259,708 14.74 8,335,475 2 1,364,168 Annual Report 2013 • YTL Power International Berhad 7,210,066 1,232,211 11.35 1,208,838 6,101,924 1,069,646 646,605 ’09 ’10 ’11 ’12 ’13 ’09 ’10 ’11 ’12 ’13 ’09 ’10 ’11 ’12 ’13 PROFIT FOR THE YEAR TOTAL EQUITY ATTRIBUTABLE EARNINGS PER SHARE ATTRIBUTABLE TO OWNERS TO OWNERS OF THE PARENT (SEN) OF THE PARENT (RM’000) (RM’000) 38,970,196 38,926,260 1.41 35,245,784 34,689,180 33,918,933 1.27 15.75 1.15 1.04 1.00 13.13 9.39 5.64 1.88 ’09 ’10 ’11 ’12 ’13 ’09 ’10 ’11 ’12 ’13 ’09 ’10 ’11 ’12 ’13 DIVIDEND PER SHARE TOTAL ASSETS TOTAL EQUITY ATTRIBUTABLE (SEN) (RM’000) TO OWNERS OF THE PARENT PER SHARE (RM) 1,684,915 15,870,343 15,835,993 1,556,906 14,662,559 1,391,476 13,442,917 1,386,872 1,247,462 1,329,423 Financial Highlights 1,208,712 1,156,961 1,044,759 646,593 6,093,394 ’09 ’10 ’11 ’12 ’13 ’09 ’10 ’11 ’12 ’13 ’09 ’10 ’11 ’12 ’13 REVENUE PROFIT BEFORE TAXATION PROFIT AFTER TAXATION (RM’000) (RM’000) (RM’000) 18.93 18.60 16.99 10,004,044 9,259,708 14.74 8,335,475 1,364,168 7,210,066 1,232,211 11.35 1,208,838 6,101,924 1,069,646 646,605 ’09 ’10 ’11 ’12 ’13 ’09 ’10 ’11 ’12 ’13 ’09 ’10 ’11 ’12 ’13 PROFIT FOR THE YEAR TOTAL EQUITY ATTRIBUTABLE EARNINGS PER SHARE ATTRIBUTABLE TO OWNERS TO OWNERS OF THE PARENT (SEN) OF THE PARENT (RM’000) (RM’000) 38,970,196 38,926,260 1.41 35,245,784 34,689,180 33,918,933 1.27 15.75 1.15 1.04 1.00 13.13 9.39 5.64 1.88 ’09 ’10 ’11 ’12 ’13 ’09 ’10 ’11 ’12 ’13 ’09 ’10 ’11 ’12 ’13 DIVIDEND PER SHARE TOTAL ASSETS TOTAL EQUITY ATTRIBUTABLE (SEN) (RM’000) TO OWNERS OF THE PARENT PER SHARE (RM) Annual Report 2013 • YTL Power International Berhad 3 CHAIRMAN’S STATEMENT On behalf of the Board of Directors of YTL Power International Berhad (“YTL Power” 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 (the “Group”) for the financial year ended 30 June 2013. OVERVIEW The Group registered another strong performance for the financial year under review. YTL Power’s water and sewerage operations in the United Kingdom (UK), together with its power generation and merchant multi-utilities business in Singapore, continue to contribute the bulk of earnings, with the power generation, power transmission and communications businesses in Malaysia, Indonesia and Australia all delivering stable results for the year. TAN SRI DATUK SERI PANGLIMA (DR) YEOH TIONG LAY Executive Chairman Chairman’s Statement The Malaysian economy performed In line with the Group’s policy of Overall plant availability remained good better during the 2012 calendar year, creating value for shareholders through during the year under review with registering gross domestic product a sustainable dividend policy, YTL Power 94.75% at Paka Power Station and (GDP) growth of 5.6% on the back of declared an interim dividend of 1.875% 99.26% at Pasir Gudang Power Station. resilient domestic demand, compared to or 0.9375 sen per ordinary share of 50 Combined power production by both 5.1% in 2011. The first half of 2013, sen each in respect of the financial year stations for the year stood at 98.54% of however, has seen growth moderate to ended 30 June 2013, the 16th the scheduled quantities. an average of 4.2%, affected by a consecutive year that the Company has weaker external sector. In other major declared dividends since listing on the Operations in Singapore economies where the Group’s main Main Market of Bursa Malaysia Securities operations are located, Singapore Berhad in 1997. Therefore, the Board of The Group has a 100% stake in YTL registered lower growth of 1.3% in Directors of YTL Power did not PowerSeraya Pte Ltd (“YTL PowerSeraya”) 2012 compared to 5.2% in 2011, but recommend a final dividend for the in Singapore, which owns 3,100 MW of GDP growth increased to 2.0% during financial year under review. installed capacity comprising steam the first half of 2013. Meanwhile, the turbine plants, combined-cycle plants UK economy grew by about 0.9% in and co-generation combined-cycle the first half of 2013 following marginal REVIEW OF OPERATIONS plants, representing about 25% of growth of 0.3% in 2012 (sources: Singapore’s total installed generation Ministry of Finance Malaysia, Bank Negara Power Generation, Merchant capacity. Malaysia, Singapore Ministry of Trade & Multi-Utilities & Power Industry, UK Office for National Statistics Transmission YTL PowerSeraya captured a total market updates & reports). generation share of 24.5% and sold The Group’s power generation (in both 10,933 gigawatt hours (GWh) of electricity contracted and merchant markets), during the financial year. With the co- merchant multi-utilities and power FINANCIAL PERFORMANCE generation and combined-cycle units now transmission businesses are carried out on-line, about 944,992 metric tonnes of The Group recorded revenue of by its wholly-owned subsidiaries in high pressure steam was generated and RM15,836.0 million for the financial Malaysia and Singapore, and associated sold to nearby petrochemical companies year ended 30 June 2013 compared to companies in Indonesia and Australia. on Jurong Island. RM15,870.3 million for the previous financial year ended 30 June 2012, with Operations in Malaysia In April 2013, YTL PowerSeraya received the decrease arising mainly due to lower YTL Power Generation Sdn Bhd Singapore’s first degasified liquefied fuel oil trading volumes and prices in (“YTLPG”), a wholly-owned subsidiary of natural gas (LNG) to be used for power the Group’s merchant multi-utilities YTL Power, is the owner of the Group’s generation. While this signals the start operations. two combined-cycle, gas-fired power of supply of a new fuel source for the stations. Located in Paka, Terengganu, division, it also presents new LNG- Profit attributable to owners of the and Pasir Gudang, Johor, the stations related opportunities that YTL parent, meanwhile, stood at RM1,069.6 have a total generating capacity of PowerSeraya is ready to capitalise on to million for the financial year under 1,212 megawatts (MW) – 808 MW at grow its business. review compared to RM1,232.2 million Paka Power Station and 404 MW at last year, mainly as a result of impairment Pasir Gudang Power Station.