YTL CORPORATION BERHAD 92647-H the journey continues... YTL CORPORATION BERHAD YTL CORPORATION www.ytl.com.my www.ytlcommunity.com YTL CORPORATION BERHAD 92647-H 11th Floor Yeoh Tiong Lay Plaza 55 Jalan Bukit Bintang 55100 Kuala Lumpur Malaysia Tel • 603 2117 0088 603 2142 6633 92647-H Fax • 603 2141 2703 annual report 2010 annual report 2010 YTL CORPORATION BERHAD 92647-H annual report 2010 Contents Corporate Review Financial Statements 2 Financial Highlights 82 Directors’ Report 4 Chairman’s Statement 95 Statement by Directors 10 Managing Director’s Review 95 Statutory Declaration 12 Operations Review 96 Independent Auditors’ Report 42 Corporate Events 98 Income Statements 50 Notice of Annual General Meeting 99 Balance Sheets 53 Statement Accompanying 101 Consolidated Statement of Notice of Annual General Meeting Changes in Equity 54 Corporate Information 105 Statement of Changes in Equity 55 Profile of the Board of Directors 106 Cash Flow Statements 59 Statement of Directors’ Responsibilities 109 Notes to the Financial Statements 60 Audit Committee Report 64 Statement on Corporate Governance Form of Proxy 68 Statement on Internal Control 71 Analysis of Shareholdings 73 Statement of Directors’ Interests 78 Schedule of Share Buy-Back 79 List of Properties 2 YTL Corporation Berhad annual report 2010 Financial Highlights 2010 2009 2008 2007 2006* Revenue (RM’000) 16,505,033 8,892,125 6,549,860 6,015,309 5,496,373 Profit Before Taxation (RM’000) 2,284,050 2,288,197 1,829,842 1,555,744 1,469,954 Profit After Taxation (RM’000) 1,624,738 1,401,615 1,376,487 1,340,308 1,190,428 Profit for the Year Attributable to 849,811 834,472 769,786 701,371 698,009 Equity Holders of the Company (RM’000) Total Equity Attributable to 9,723,922 9,447,165 7,714,420 7,396,831 6,814,678 Equity Holders of the Company (RM’000) Earnings per Share (Sen) 47.56 54.10 51.54 47.72 49.39 Dividend per Share (Sen) 7.5 2.5 25 25 7.5 Total Assets (RM’000) 46,153,855 45,413,832 38,458,561 33,912,520 30,370,822 Net Assets per Share (RM) 5.42 5.37 5.16 4.91 4.74 Profit Before Profit After Revenue Taxation Taxation (RM’000) (RM’000) (RM’000) 2,284,050 2,288,197 16,505,033 1,624,738 1,829,842 1,401,615 1,376,487 1,340,308 1,555,744 1,190,428 1,469,954 8,892,125 6,549,860 6,015,309 5,496,373 06 07 08 09 10 06 07 08 09 10 06 07 08 09 10 Total Equity Profit for the Year Attributable to Attributable to Equity Holders of Earnings per Share Equity Holders of the Company (Sen) the Company (RM’000) (RM’000) 9,723,922 54.10 9,447,165 51.54 49.39 849,811 47.72 47.56 834,472 769,786 7,714,420 7,396,831 701,371 698,009 6,814,678 06 07 08 09 10 06 07 08 09 10 06 07 08 09 10 Net Assets per Dividend Total Assets Share (RM) 25.0 25.0 per Share (RM’000) (Sen) 5.42 5.37 5.16 4.91 46,153,855 45,413,832 4.74 38,458,561 33,912,520 30,370,822 7.5 7.5 2.5 06 07 08 09 10 06 07 08 09 10 06 07 08 09 10 Profit Before Profit After Revenue Taxation Taxation (RM’000) Profit(RM’000) Before Profit(RM’000) After Revenue Taxation Taxation 2,284,050 (RM’000) (RM’000) 2,288,197 (RM’000) 16,505,033 1,624,738 2,284,050 2,288,197 1,829,842 1,401,615 1,376,487 1,340,308 16,505,033 1,624,738 1,555,744 1,190,428 1,469,954 1,829,842 1,401,615 1,376,487 1,340,308 1,555,744 8,892,125 YTL Corporation Berhad annual report 2010 3 1,190,428 1,469,954 6,549,860 6,015,309 8,892,125 5,496,373 6,549,860 6,015,309 065,496,373 07 08 09 10 06 07 08 09 10 06 07 08 09 10 06 07 08 09 10 06 07 08 09 10 06 07 08 09 10 Total Equity Profit for the Year Attributable to Attributable to Earnings per Share TotalEquity Equity Holders of Equity Holders of (Sen) Profit for the Year Attributablethe Company to the Company Attributable to Equity(RM’000) Holders of Earnings per Share (RM’000) Equity Holders of the Company (Sen) 9,723,922 the Company 54.10 (RM’000) 9,447,165 (RM’000) 51.54 49.39 849,811 47.72 47.56 834,472 9,723,922 54.10 9,447,165 769,786 51.54 7,714,420 7,396,831 49.39 701,371 849,811 47.72 47.56 834,472 698,009 6,814,678 769,786 7,714,420 7,396,831 701,371 698,009 6,814,678 06 07 08 09 10 06 07 08 09 10 06 07 08 09 10 06 07 08 09 10 06 07 08 09 10 06 07 08 09 10 Net Assets per Dividend Total Assets Share (RM) 25.0 25.0 per Share (RM’000) Net Assets per Dividend(Sen) Total Assets Share 5.42 (RM) 5.37 5.16 25.0 25.0 per Share (RM’000) 4.91 46,153,855 45,413,832 (Sen) 4.74 5.42 5.37 5.16 4.91 38,458,561 46,153,855 45,413,832 4.74 33,912,520 38,458,561 30,370,822 33,912,520 30,370,822 7.5 7.5 7.5 7.5 2.5 06 07 08 09 10 06 07 08 09 10 06 07 08 09 10 2.5 06 07 08 09 10 06 07 08 09 10 06 07 08 09 10 4 YTL Corporation Berhad annual report 2010 Chairman’s Statement for the financial year ended 30 June 2010 TAN SRI DATo’ SERI (DR) YEOH TIONG LAY Executive Chairman On behalf of the Board of Directors of YTL Corporation Berhad (“YTL Corp” 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 2010. YTL Corporation Berhad annual report 2010 5 OVERVIEW PowerSeraya’s competitive position as an integrated energy company The Group’s performance for the financial year under review grew that aims to offer greater value through a bundled multi-utility significantly on the back of the maiden consolidation of a full year’s package of steam, electricity and water to its customers. results from PowerSeraya Limited (“PowerSeraya”), and bolstered by strong performances across the rest of the utilities division and the In its communications division, the newest addition to the Group’s cement division. utility operations, development is well underway on a fourth generation (“4G”) wireless network which is expected to be rolled The international economic environment continued to show signs of out across the Peninsula in late 2010. Leveraging on partnerships recovery throughout 2009 and the first half of the 2010 calendar with industry leaders such as Samsung, Clearwire, Cisco and GCT year, although this was tempered by the euro-area sovereign debt Semiconductor, the Group is building the world’s first converged crisis and persistent concerns globally over the health of the banking nationwide 4G network that uses an all-IP (Internet Protocol) sector. Meanwhile, whilst the Malaysian economy experienced an architecture to deliver next generation services which include mobile overall contraction of 1.7% for the 2009 calendar year, the first half broadband and mobile voice. of 2010 saw a strengthening recovery with gross development product (GDP) growth of approximately 9.5%. In the other major Meanwhile, Wessex Water Limited, the Group’s wholly-owned economies where the Group operates, Singapore experienced a 2.0% subsidiary in the United Kingdom, continued to achieve the highest contraction in GDP for the 2009 calendar year but rebounded levels of quality, compliance and customer service and was, once sharply for the first half of 2010, with growth of 18.8%, whilst the again, recognised as the best water and sewerage company in British economy registered growth of 0.7% for the first half of 2010 England and Wales by Ofwat, its industry regulator, for its regulatory after contracting 5.0% in 2009 (source: Malaysian Ministry of Finance year which ended on 31 March 2010. economic reports; quarterly bulletins published by Bank Negara Malaysia, Monetary Authority of Singapore, Bank of England). Cement Manufacturing As has been the case for the past few years, foreign operations The Group undertook a reorganisation during the year under review, continue to constitute the largest part of the Group’s earnings, injecting its quarry-operating subsidiary, Batu Tiga Quarry Sdn Bhd underpinning the operational strength and geographical diversity of (“BTQ”), directly into its cement division, in order to strengthen the its income streams. division’s supply chain by providing secure and sustained access to key raw materials used in the production process. Utilities Overseas operations, particularly the supply of cement and concrete The Group’s utilities registered strong performances across the board in China and Singapore, continued to grow during the year under during the year under review, with growth being driven primarily by review, further developing new markets for the Group’s products.