Annual Report 2002 Cover Concept "Source of LIFE" Rivers have been the life source of living communities since time immemorial. Their fresh, ever-flowing waters support life, carry life and above all, nourish the lives of all those who reside within them and around their productive plains. This year, our Annual Report cover pays tribute to the mighty Sungai Selangor, whose strength, versatility and ability to sustain growth wherever it flows are true reflections of Puncak Niaga’s inherent qualities. As Malaysia’s Leading Water Specialist, Puncak Niaga practises the highest standards of excellence and integrity in all that it pursues. Like the nurturing river, we do our utmost to ensure that the quality and outcome of our core activities significantly enhance the quality of life for our customers, our shareholders and our country. And just as the river flows continuously forward, Puncak Niaga works relentlessly towards increasing its strength and value, surging ahead to become Malaysia’s Leading and Dynamic Integrated Water Services Company. Cover Photo: Sungai Selangor meandering through the lush terrain. Contents 2-3 Corporate Information 4-5 Fact Sheet 8 Financial Highlights 9 Financial & Share Performances 10-11 Corporate Profile 12 Corporate Structure 13 Organisation Structure 14-15 Corporate Achievements 18-27 Board of Directors 28-33 Senior Management Sixth Annual General Meeting 34-35 Vision & Mission Statements 36-41 Executive Chairman Speaks Date :Wednesday, 25 June 2003 Time :9.30 a.m 44-59 Operations Review Venue :Banquet Hall 60-65 Corporate Calendar of Events Kuala Lumpur Golf & Country Club 68-76 Statement on Corporate Governance No. 10 Jalan 1/70D 77-78 Statement on Internal Control Off Jalan Bukit Kiara 60000 Kuala Lumpur 79-85 Audit Committee Report 86-90 Risk Management Policy & Report 91-93 Investor Relations Policy & Report Pull Out Environmental Policy & Report 96 Organisational Safety and Health Policy 97 Quality Policy 98-101 Newspaper Clippings 104-109 Distribution Schedule of Equity Securities & Property 111-159 Financial Reports 160-161 Notice of Annual General Meeting 162 Statement Accompanying the Notice of Annual General Meeting 163-164 Other Compliance Information 167-168 Proxy Form Corporate Information Board of Directors Principal Office YBhg Tan Sri Rozali Ismail Suite 2601-2606, 26th Floor Executive Chairman Plaza See Hoy Chan Jalan Raja Chulan Encik Ruslan Hassan 50200 Kuala Lumpur Executive Vice Chairman/ Tel:03-2031 8648 Executive Director Fax : 03-2031 8658 Corporate Affairs Division website : www.puncakniaga.com.my e-mail (general) : [email protected] Encik Mat Hairi Ismail e-mail (investors) : [email protected] Executive Director Finance Division Date and Place of Incorporation 7 January 1997, Malaysia Ir Lee Miang Koi Executive Director Company Number Project & Business Development Division 416087-U Encik Abdul Majid Abdul Karim Auditors Independent Non-Executive Director Messrs PricewaterhouseCoopers (AF 1146) YBhg Dato' Hari Narayanan Govindasamy Tax Advisor Independent Non-Executive Director PricewaterhouseCoopers Taxation Services Sdn Bhd (464731-M) YB Dato' Seri Dr Ting Chew Peh Independent Non-Executive Director Principal Bankers RHB Bank Berhad (6171-M) Group Company Secretary Bumiputra-Commerce Bank Berhad (13491-P) Madam Tan Bee Lian, MAICSA 7006285 United Overseas Bank (Malaysia) Berhad (271809-K) Registered Office Solicitors Suite 1401-1406, 14th Floor Messrs Kadir, Andri Aidham & Partners Plaza See Hoy Chan Messrs Wong & Partners Jalan Raja Chulan Messrs Lee Hishammuddin 50200 Kuala Lumpur Messrs Sivananthan Tel: 03-2031 8648 Messrs Ng Yook Woon, Andrew TC Saw & Co Fax : 03-2078 4386 Messrs Azian Haslina & Co Puncak Niaga Holdings Berhad Annual Report 2002 2 Share Registrar Remuneration Committee (Place where all registers of securities are kept) Chairman: Tenaga Koperat Sdn Bhd (118401-V) YB Dato' Seri Dr Ting Chew Peh 20th Floor, Plaza Permata Jalan Kampar Members: Off Jalan Tun Razak YBhg Dato' Hari Narayanan Govindasamy 50400 Kuala Lumpur Encik Abdul Majid Abdul Karim Tel : 03-4041 6522 Encik Mat Hairi Ismail Fax : 03-4042 6352 Secretary: Stock Exchange Listing Madam Tan Bee Lian Main Board of Kuala Lumpur Stock Exchange (KLSE) under the Nomination Committee Infrastructure Project Companies Sector Chairman: YB Dato' Seri Dr Ting Chew Peh Indices KLSE Composite Index Members: KLSE Syariah Index YBhg Dato' Hari Narayanan Govindasamy MSCI Index Encik Abdul Majid Abdul Karim Audit Committee Secretary: Chairman: Madam Tan Bee Lian Encik Abdul Majid Abdul Karim Compliance, Internal Control and Members: Risk Policy Committee (CICR) YBhg Dato' Hari Narayanan Govindasamy Chairman: YB Dato' Seri Dr Ting Chew Peh YB Dato' Seri Dr Ting Chew Peh Encik Mat Hairi Ismail Members: Secretary: Encik Ruslan Hassan (Head of CICR) Madam Tan Bee Lian Encik Sonari Solor Mr Ng Wah Tar Madam Tan Bee Lian Secretary: Encik Mohammed Sofian Ismail (Head of Risk Management Section) Puncak Niaga Holdings Berhad Annual Report 2002 3 Fact Sheet PUNCAK NIAGA HOLDINGS BERHAD’S FACT SHEET AS AT 29 APRIL 2003 Group Staff Strength Management Staff 55 Executive Staff 177 Non-Executive Staff 373 Total 605 No. of Puncak Niaga’s Water Treatment Plants 28 No. of Water Treatment Plants with ISO Certifications 14 Authorised Share Capital RM1,000,000,000 Paid-Up Share Capital RM439,278,000 (comprising 439,278,000 ordinary shares of RM1.00 each) Number of RUN Issued 546,875,000 RUN Coupon Rates 2.5% per annum for the first 10 years and 3.5% per annum for the remaining 5 years RUN Semi-Annual Coupon Payment Dates 20 May and 20 November RUN Maturity Date 18 November 2016 RUN Holders’ Put Option Date 20 November 2011 Number of Warrants Issued 109,374,869 Warrant Conversion Price RM2.62 Number of Warrants Converted None Warrant Maturity Date 20 November 2006 Effective Date of ESOS 25 February 2002 Expiry Date of ESOS 24 February 2007 ESOS Exercise Price (1st Tranche) RM2.37 per share ESOS Exercise Price (2nd Tranche) RM2.47 per share ESOS Exercise Price (3rd Tranche) RM2.13 per share Number of ESOS Offered (1st Tranche) 33,422,000 Number of ESOS Offered (2nd Tranche) 2,933,000 Number of ESOS Offered (3rd Tranche) 2,817,000 Number of ESOS Exercised To-Date 1,778,000 Puncak Niaga Holdings Berhad Annual Report 2002 4 List Of Corporate Memberships:- 1. Malaysian Water Association Member since 1994 2. Malaysia South-South Association Member since 1995 3. Federation of Public Listed Companies Member since 1999 4. Malaysian Employers Federation Member since 1999 5. Malaysian Industry-Government Group For Member since 2001 High Technology (MIGHT) 6. Malaysian-German Chamber of Commerce Member since 2002 and Industry (MGCCI) 7. National Institute of Occupational Safety Member since 2002 and Health (NIOSH) 8. American Water Works Association (AWWA) Member since 2002 9. Malaysian-French Chamber of Commerce Member since 2002 and Industry (MFCCI) 10. British Malaysian Chamber of Commerce Member since 2003 List Of Water Treatment Plants Telephone Nos. 1. Ampang Intake* 03-4291 4040 2. Batang Kali* 03-6057 3255 3. Bernam River Headworks* 03-6046 1259 4. Bukit Nanas* 03-2078 0782 5. Bukit Tampoi* 03-8768 6216 6. Cheras Mile 11* 03-8736 0427 7. Gombak* 03-6189 5255 8. Kalumpang 03-6049 1366 9. Kepong 03-6274 9495 10. Kuala Kubu Bharu 03-6064 1327 11. North Hummock* 03-3341 2052 12. Rantau Panjang* 03-3271 0948/9133 13. Salak Tinggi* 03-8706 1103 14. Sungai Batu* 03-6189 0267 15. Sungai Buaya 03-6028 1146 16. Sungai Dusun 03-6046 3649 17. Sungai Keroh 03-6274 9495/03-6091 0001 18. Sungai Langat* 03-9074 9430 19. Sungai Lolo 03-9075 3977/03- 9021 5993 20. Sungai Pangsoon 03-9021 5993 21. Sungai Pusu 03-6189 5255/03-6185 6631 22. Sungai Rangkap 03-6091 0001 23. Sungai Rumput 03-6185 6631 24. Sungai Selangor Phase 2* 03-3279 2008 25. Sungai Selisek 05-454 2003 26. Sungai Serai 03-9075 3977 27. Sungai Tengi 03-6042 2035 28. Wangsa Maju* 03-4143 7006 *Water Treatment Plants with ISO 9002 Certification. Puncak Niaga Holdings Berhad Annual Report 2002 5 ChartingCourse our Puncak Niaga Holdings Berhad Annual Report 2002 6 From the onset of its journey high above in the Titiwangsa Range, the Selangor River works to achieve the perfect balance between the amount of water it carries, and the sediment it transports downstream. Guided by a clear vision to become the Leading and Dynamic Integrated Water Services Company, Puncak Niaga is continuously striving to balance the development of existing water resources with our economic, social and environmental responsibilities. Puncak Niaga Holdings Berhad Annual Report 2002 7 Financial Highlights In RM’000 Year 2002 Year 2001 Year 2000 Balance sheet Property, plant and equipment 1,528,703 1,606,425 1,659,010 Project development expenditure 245,838 255,727 248,967 Other non-current assets 185,740 236,520 50,045 Current assets 907,107 601,693 561,935 Total tangible assets 2,856,603 2,688,980 2,507,973 Issued and paid-up capital Share capital 439,278 437,500 437,500 Reserves 737,906 555,724 376,410 Shareholders’ fund 1,177,184 993,224 813,910 Net tangible assets per share (RM) 2.66 2.24 1.83 Ratios and statistics Turnover 565,105 552,337 350,564 Net profit after tax 179,745 179,314 91,225 Interest bearing debt 1,529,608 1,585,076 1,579,372 In sen Earnings per share 40.99 40.99 21.84 In % of turnover Operating profit 32 32 26 In times Gearing ratio 1.30 1.60 1.94 Current ratio 3.66 2.72 2.11 FINANCIAL CALENDAR Financial year end 31 December 2002 Announcement of results 1st quarter results