ASIA MEDIA GROUP BERHAD • GROUP MEDIA ASIA ANNUAL REPORT ANNUAL 2013 ANNUAL REPORT 2013 ASIA MEDIA GROUP BERHAD ASIA MEDIA GROUP BERHAD (Company No. 813137-V) (Company No. 813137-V) (Incorporated in Malaysia under the Companies Act, 1965) (Incorporated in Malaysia under the Companies Act, 1965) HEAD OFFICE No: 35, 1st Floor, Jalan Bandar 16, Pusat Bandar Puchong, 47100 Puchong, Selangor Darul Ehsan, Malaysia Tel +603 5882 7788 Fax +603 5882 6622 www.asiamedia.net.my TABLE OF CONTENTS 02 Corporate Philosophy 03 Corporate Structure 04 Corporate Information 05 Financial Highlights 08 Chairman’s Statement 10 Chief Executive Officer’s Report 12 Significant Milestones 25 Event Highlight 26 Management Discussion and Analysis 31 Board of Directors’ Profile 33 Corporate Sustainability Statement 34 Statement on Directors’ Responsibilities 35 Corporate Governance Statement 47 Additional Compliance Information 49 Statement on Risk Management and Internal Control 51 Audit Committee Report 55 Financial Statements 107 Analysis of Shareholdings 109 Analysis of Warrant Holdings 111 Notice Of Sixth Annual General Meeting Proxy Forms 2 ASIA MEDIA GROUP BERHAD (813137-V) Corporate Philosophy We, Asia Media Group Berhad and our subsidiaries, contribute to the sustainable development of society through our business activities that we carry out in the country and region based on our Corporate Philosophy. Based on our philosophy of “Customer Centric”, we develop and provide innovative and high-quality products and services that meet a wide variety of customers’ demands in order to build a reputable presence in the country’s digital out-of-home industry. Forerunner To be a forerunner in digital transit media advertising and provide innovative advertising solutions for our clients. Pacesetter To set a challenging employee goal, building on previous years’ success and to make a strong corporate commitment and enhance corporate value while achieving stable and long-term growth for the benefit of our shareholders. Customer Centric To forge partnerships with our customers and strive to exceed their expectations. Human Capital To emphasize on human capital value and foster corporate culture and policies to enhance our team strength. Social Responsibility To promote and engage both individually and with partners in social contribution activities that help strengthen communities and contribute to the enrichment of society. In order to contribute to sustainable development, we believe that Management interaction with its stakeholders is of considerable importance and we will endeavor to build and maintain good relationships with our stakeholder. ANNUAL REPORT 2013 3 Corporate Structure ASIA MEDIA GROUP BERHAD (“AMGB” or “Company”) (Company No.813137-V) (Incorporated in Malaysia under the Companies Act, 1965) Asia Media Sdn Bhd (“AMSB” or “Asia Media”) * Asia Media Transnet Asia Media Asia Media Marketing Express Interactive Broadcasting Sdn Bhd Sdn Bhd Sdn Bhd Sdn Bhd (“AMMSB”) (“TESB”) (“AMISB”) (“AMBSB”) Ω Ω Ω ∆ * 100% owned subsidiary of Asia Media Group Berhad Ω 100% owned subsidiary of Asia Media Sdn Bhd ∆ 70% owned subsidiary of Asia Media Sdn Bhd 4 ASIA MEDIA GROUP BERHAD (813137-V) Corporate Information Board of Directors Remuneration Principal Bankers Committee Datuk Seri Syed Ali AmBank (M) Berhad Bin Tan Sri Abbas Alhabshee Dato’ Hussian @ HSBC Amanah Malaysia (Independent Non-Executive Rizal Bin A. Rahman Berhad Chairman) Chairman Auditors Dato’ Wong Shee Kai Dato’ Wong Shee Kai (Executive Director and Chief Member STYL Associates (AF 001929) Executive Officer) Yeong Siew Lee Chartered Accountants Dato’ Hussian @ Member 107B Jalan Aminuddin Baki Rizal Bin A. Rahman Taman Tun Dr Ismail (Independent Non-Executive Company Secretaries 60000 Kuala Lumpur Director) T : 03-7727 5573 F : 03-7727 0771 Yeong Siew Lee See Siew Cheng (MAICSA 7011225) (Independent Non-Executive Share Registrar Director) Leong Shiak Wan (MAICSA 7012855) Tricor Investor Services Audit Committee Registered Office Sdn Bhd Level 17, The Gardens Dato’ Hussian @ Level 8, Symphony House North Tower Rizal Bin A. Rahman Pusat Dagangan Dana 1 Mid Valley City Chairman Jalan PJU 1A/46 Lingkaran Syed Putra Datuk Seri Syed Ali Bin 47301 Petaling Jaya 59200 Kuala Lumpur Tan Sri Abbas Alhabshee Selangor Darul Ehsan T : 03-2264 3883 Member T : 03-7841 8000 F : 03-2282 1886 F : 03-7841 8199 Yeong Siew Lee Stock Exchange Member Principal Place Of Listing Nomination Business Main Market of Bursa Malaysia Committee No. 35, First Floor Securities Berhad Jalan Bandar 16 Stock Name : AMEDIA Dato’ Hussian @ Pusat Bandar Puchong Stock Code : 0159 Rizal Bin A. Rahman 47100 Puchong Chairman Selangor Darul Ehsan Datuk Seri Syed Ali Bin T : 03-5882 7788 Tan Sri Abbas Alhabshee F : 03-5882 6622 Member W : www.asiamedia.net.my Yeong Siew Lee Member ANNUAL REPORT 2013 5 Financial Highlights Revenue Gross Profit (RM’mil) (RM’mil) (3) (3) (3) CAGR 44.77 CAGR (3) 46.93% 36.55 50.54% (2) 35.23 (3) (3) 27.81 (2) 23.88 (2) 22.71 20.86 (2) (2) (2) 13.15 (2) 11.33 (2) 6.53 6.88 3.83 3.5 1.79 2007(1) 2008(1) 2009(1) 2010(1) 2011 2012 2013 2007(1) 2008(1) 2009(1) 2010(1) 2011 2012 2013 Profit Before Tax Earnings Per Share (“EPS”) (RM’mil) (sen) CAGR CAGR 47.18% 7.21% (3) (3) (2) (3) 6.61 5.95 15.87 15.01 (3) (2) (2) (3) (2) (2) 7.23 7.74 (3) (2) (2) (2) 2.58 2.38 3.36 1.09 0.82 1.41 0.54 0.71 2007(1) 2008(1) 2009(1) 2010(1) 2011 2012 2013 2007(1) 2008(1) 2009(1) 2010(1) 2011 2012 2013 Notes: 1. Proforma consolidated results prepared for illustration purposes is based on the audited financial statement of the companies in the group and on the assumption that the current structure of the group has been in existence through out the period under review. 2. Based on proforma consolidated results for the financial years ended 31 December 2007, 2008, 2009 and 2010 respectively for illustrative purposes. 3. Based on audited financial statement of the group for the financial year ended 31 December. CAGR = Compound Annual Growth Rate 6 ASIA MEDIA GROUP BERHAD (813137-V) Financial Highlights (Cont’d) SUMMARISED GROUP INCOME STATEMENTS Financial Year Ended 31 December (“FYE”) Proforma Audited Audited Audited Audited 2007 2008(1) 2009(1) 2010(1) 2010(2) 2011(2) 2012(2) 2013(2) (3 months) (12 months) (12 months) (12 months) (15 months) (12 months) (12 months) (12 months) FYE 31 December RM RM RM RM RM RM RM RM Revenue 3,501,620 6,533,187 13,150,080 23,375,537 16,554,093 36,548,114 44,766,888 35,233,480 Cost of Sales (1,709,095) (2,702,900) (6,267,488) (12,050,436) (8,644,850) (13,834,194) (16,949,986) (14,369,304) Gross Profit (“GP”) 1,792,525 3,830,287 6,882,592 11,325,101 7,909,243 22,713,920 27,816,902 20,864,176 EBITDA 968,759 2,187,285 4,233,739 9,246,887 11,297,585 17,224,148 21,749,103 15,559,347 Less: Amortisation – (5,422) (5,458) (25,979) (24,176) (263,705) (281,370) (259,741) Depreciation (143,721) (815,758) (830,127) (1,439,401) (960,720) (2,319,794) (5,818,644) (8,267,271) Net Interest Income / (Cost) (113,993) 45,682 (39,664) (39,414) (26,074) 372,796 228,781 195,370 Profit Before Taxation (“PBT”) 711,045 1,411,787 3,358,490 7,742,093 10,286,615 15,013,445 15,877,870 7,227,705 Taxation (5,821) – – (4,872) (4,872) (4,450) (4,170,387) (2,066,189) ProfitAfter Taxation (“PAT”) 705,224 1,411,787 3,358,490 7,737,221 10,281,743 15,008,995 11,707,483 5,161,516 Non-Controlling Interests – – – – – 2,652 14,775 100,448 Net ProfitAttributable to Shareholders 705,224 1,411,787 3,358,490 7,737,221 10,281,743 15,011,647 11,722,258 5,261,964 Weighted Average Number of Share 130,000,000 130,000,000 130,000,000 130,000,000 69,124,736 227,194,521 492,224,590 640,840,783 Basic EPS (sen) 0.54 1.09 2.58 5.95 14.87 6.61 2.38 0.82 Profit Margin GP Margin (%) 51.2 58.6 52.3 48.5 47.8 62.1 62.1 59.2 EBITDA Margin (%) 27.7 33.5 32.2 39.6 68.2 47.1 48.6 44.2 PBT Margin (%) 20.3 21.6 25.5 33.1 62.1 41.1 35.5 20.5 PAT Margin (%) 20.1 21.6 25.5 33.1 62.1 41.1 26.2 14.6 Growth Rates Revenue (%) N/A 86.6 101.3 77.8 N/A 56.4 22.5 (21.3) EBITDA (%) N/A 125.8 93.6 118.4 N/A 86.3 26.3 (28.5) PBT (%) N/A 98.6 137.9 130.5 N/A 94.0 5.8 (54.5) PAT (%) N/A 100.2 137.9 130.4 N/A 94.0 (22.0) (55.9) ANNUAL REPORT 2013 7 Financial Highlights (Cont’d) SUMMARISED GROUP’S FINANCIAL POSITION As at 31 December 2013 Audited RM Current Assets 36,302,034 Current Liabilities 1,271,295 Current Ratio (Times) 28.56 Total Equity 142,538,489 Cash Reserve 16,852,257 Net Cash 16,852,257 Net Assets / Share 0.22 Notes: 1. Based on proforma consolidated results for the FYE 2008, 2009 and 2010 respectively for illustrative purposes. 2. Based on audited financial statement of the group as at 31 December.