Annual Report GENTING BERHAD (7916-A) Genting Berhad (7916-A) 24th Floor, Wisma Genting Jalan Sultan Ismail 50250 Kuala Lumpur, Malaysia T : +603 2178 2288 / 2333 2288 F : +603 2161 5304 www.genting.com We are a leading multinational corporation committed to Our Vision enhancing shareholder value and maintaining long-term sustainable growth in our core businesses. ////////////////////////////////////////////////// Our Mission We will: Be responsive to the changing demands of our customers and excel in providing quality products and services. Be committed to innovation and the adoption of new technology to achieve competitive advantage. Generate a fair return to our shareholders. Pursue personnel policies which recognise and reward performance and contributions of employees and provide proper training, development and opportunities for career advancement. Be a responsible corporate citizen, committed to enhancing corporate governance and transparency. ////////////////////////////////////////////////// Genting Berhad (www.genting.com), Malaysia’s leading Corporate Prole corporation is the holding company of the Genting Group, one of Asia’s best-managed conglomerates. The Group comprises four listed entities namely Genting Berhad and its subsidiaries, Genting Malaysia Berhad (“Genting Malaysia”), Genting Plantations Berhad (“Genting Plantations”) and Genting Singapore PLC (“Genting Singapore”) with a combined market capitalisation of about RM110 billion (USD34 billion). With about 55,000 employees, 4,500 hectares of prime resort land and about 228,300 hectares of plantation land, the Group’s principal businesses include leisure & hospitality, power generation, oil palm plantations, property development, biotechnology and oil & gas. The Genting Group has established premier leisure brands such as “Resorts World™”, “Genting Club”, “Crockfords” and “Maxims”. In addition to Premium Outlets®, Genting companies have tie ups with Universal Studios®, Hard Rock Hotel and other renowned international brand partners. Backed by 48 years of solid financials and strong management leadership, the Genting Group is committed to grow in strength as a responsible global corporation. Contents ///////////////////////////////////////////////////////////////////////////// Chairman’s Statement / Penyata Pengerusi / 主席文告 2 Board of Directors 10 Directors’ Profile 12 Management & Corporate Information 16 Group Corporate Structure 17 Corporate Diary 18 Financial Highlights 19 Management’s Discussion and Analysis of Business Operations and Financial Performance 20 Year in Review 22 Awards and Accolades 38 Sustainability Report 39 Corporate Governance 49 Audit Committee Report 57 Statement on Risk Management and Internal Control 60 Directors’ Report and Statement by Directors 62 ////////////////////////////////////////////////////////////////// Financial Statements: Income Statements 68 Statements of Comprehensive Income 69 Statements of Financial Position 70 Statements of Changes in Equity 71 Statements of Cash Flows 74 Notes to the Financial Statements 78 Statement on Directors’ Responsibility 155 Statutory Declaration 155 Independent Auditors’ Report 156 Five-Year Summary 157 List of Properties Held 158 Analysis of Shareholdings/Warrantholdings 163 Notice of Annual General Meeting 166 Statement Accompanying Notice of Annual General Meeting 168 Form of Proxy Group Offices Genting Premier Brands /////////////////////////////////////////////////////////// GENTING BERHAD Annual Report 2013 1 Chairman’s Statement /////////////////////////////////////////////////////////// Dear Fellow Shareholders, On behalf of the Board of Directors, I am pleased to present to you the Annual Report and Audited Financial Statements of Genting Berhad (“the Company”) and its group of companies (“the Group”) for the financial year ended 31 December 2013. The Group delivered a credible set of financial results in 2013, despite the Resorts World Genting unveiled its brand new, luxurious Genting Club and prolonged uncertainty in the global economy, weaker regional currencies, Crockfords suites to cater to the elite customers who appreciate the highest escalating operating costs and tight labour conditions experienced in many level of sophistication and style. local markets. Under these challenging conditions, the Group recorded higher revenue but lower earnings. Group revenue of RM17.1 billion (2012: RM16.5 On 17 December 2013, Genting Malaysia launched the Genting Integrated billion) and profit before tax of RM4.3 billion (2012: RM4.8 billion) were Tourism Plan (“GITP”), a phased 10-year master plan estimated at RM5 billion registered from continuing operations. to reinvigorate and transform Resorts World Genting. We are pleased to inform that this master plan has been designated as an Entry Point Project by the East Resorts World Sentosa remains the choice resort destination in Singapore. Coast Economic Region Development Council in Malaysia. Marine Life ParkTM comprising the S.E.A. Aquarium and Adventure Cove Waterpark, made its first full year of contribution in 2013. Universal Studios Resorts World Genting formalised its partnership with Twentieth Century Singapore in its third year of operations remained a favourite crowd puller Fox Consumer Products in 2013 to develop the first international Twentieth as the only Universal Studios theme park in Southeast Asia. The attractions Century Fox World theme park at the resort. The new theme park, the first of registered strong visitation of more than 6.7 million visitors in 2013. its kind in the world, is anticipated to drive the growth in tourist visitations both to the country and to the resort upon its expected opening in 2016. The world- I am deeply encouraged by the third consecutive win by Resorts World Sentosa class Twentieth Century Fox World theme park will feature over 25 themed of the title “Best Integrated Resort” at the Annual TTG Travel Awards. In a short rides and attractions with unique cinematic concepts, including spectacular span of time since its opening in 2010, we have built up an excellent model special effects from top movies such as Ice Age, Rio and Night at the Museum. that has put us ahead of our competitors in the tourism industry. In addition to the new theme park, phase one of the GITP includes a new In Singapore, the new Genting Hotel located in the Jurong Lake district, is 1,300-room hotel adjacent to First World Hotel, state-of-the-art infrastructures progressing on schedule to open in mid 2015. and amenities as well as the upgrading of existing hotels at the resort, a show arena with a 10,000-seat capacity, a new cable car system from the mid hill Over the past 48 years, significant changes have been made at Resorts World to the hill top along with a multi-storey car park and additional bus bays. Phase Genting and we will continue to improve and evolve to provide the best to two of the GITP development will comprise two new high-end tower hotels to our esteemed customers. In line with the Group’s efforts to strengthen our offer a luxurious treat to our discerning customers. These development plans international brands – Genting and Resorts World, Genting Malaysia completed will enhance the status of Resorts World Genting as a provider of world class a re-branding exercise on its leisure properties in Malaysia in early 2013. entertainment, as well as shopping and dining facilities. 2 GENTING BERHAD Annual Report 2013 In the United Kingdom (“UK”), I am pleased that Genting UK recorded a the second half of 2016, this new power plant in China will add another third successive year of double digit growth percentages in 2013. The 980MW of net attributable capacity to our portfolio of power assets in Asia. encouraging results were attributable to the Group’s success in leveraging on our extensive Asian clientele to boost the business volume at Genting In Indonesia, construction of the 660MW coal-fired power plant in Banten, UK’s London casinos. I am confident we will continue on our growth Java started in November 2013. Our team successfully raised project journey, having started an expansion programme as well as implemented financing of US$730 million that was not backed by any Indonesian an extensive property refurbishment and upgrading initiative to provide government guarantee - a precedent in Indonesia. For this, it won the high class leisure experiences. Genting Casino Chinatown (formerly Asia Pacific “Power Deal of the Year 2013” awards by Project Finance known as Fox Poker Club) re-opened in London city in March 2013 while International (PFI - Thomson Reuters) and Project Finance Magazine outside London, refurbishment works on seven Genting UK casinos were (Euromoney). The power plant is expected to start commercial operation completed during the financial year. A new casino, Genting Club Southport in 2017. was opened in April 2013. In Birmingham, the construction of the £150 million Resorts World Birmingham is well underway, following its official In Indonesia, Genting Energy has so far drilled a total of 7 exploration wells ground-breaking in February 2013 and is scheduled to open in mid 2015. and is analysing the oil and gas samples extracted from two exploration wells, namely Asap-4X and Kido-1X in the Kasuri Production Sharing In the United States of America (“US”), Resorts World Casino New York City Contract in West Papua (“Kasuri PSC”), which appear to be of high quality. continues to perform with commendable results in the State of New York. The oil and gas column found in Asap-4X has