Annual Report GENTING MALAYSIA BERHAD (58019-U) www.gentingmalaysia.com Our Vision To be the leading integrated resort operator in the world. ////////////////////////////////////////////////// We are committed towards providing the most delightful and memorable Our Mission experiences to our customers. We aim to generate sustainable growth and profits, and to consistently enhance our stakeholders’ value. ////////////////////////////////////////////////// Genting Malaysia Berhad (“Genting Malaysia”) (www.gentingmalaysia.com) Corporate Prole is one of the leading destination resorts operator in the world. Incorporated in 1980, Genting Malaysia was subsequently listed on Bursa Malaysia’s Main Market in 1989. Genting Malaysia has a well-established reputation of being a premier provider of leisure and entertainment services and has a market capitalisation of RM25 billion as at 31 December 2013. Genting Malaysia owns and operates major properties including Resorts World Genting in Malaysia, Resorts World Casino New York City in the United States, over 40 casinos in the United Kingdom and Resorts World Bimini in the Bahamas. Genting Malaysia also owns and operates two seaside resorts in Malaysia, namely Resorts World Kijal in Terengganu and Resorts World Langkawi on Langkawi island. Resorts World Bimini in the Bahamas, Genting Malaysia’s latest addition, was launched on 1 July 2013. The resort was introduced concurrently with its newly acquired cruise ship, Bimini SuperFast, which is capable of connecting Miami to the resort in just over two hours. Development is currently in progress for Resorts World Birmingham, a leisure and entertainment complex located in Birmingham, United Kingdom. On 17 December 2013, Genting Malaysia announced its estimated RM5 billion Genting Integrated Tourism Plan (“GITP”), a major 10-year master plan for the development, expansion, enhancement and refurbishment of hotels, theme park and infrastructure at Resorts World Genting. The GITP which will be carried out in phases includes the development of the world’s first Twentieth Century Fox World theme park. Genting Malaysia is a member of the Genting Group, one of Asia’s leading and best-managed multinationals. The Genting Group is the collective name for Genting Berhad, its subsidiaries and associates, which have significant interests in leisure and hospitality, power generation, palm plantation, property development, biotechnology and oil and gas related activities. Contents ///////////////////////////////////////////////////////////////////////////// Chairman’s Statement / Penyata Pengerusi / 主席文告 2 Board of Directors 8 Directors’ Profile 10 Management & Corporate Information 15 Corporate Diary 16 Financial Highlights 17 Management’s Discussion and Analysis of Business Operations and Financial Performance 18 Year in Review 20 Awards and Accolades 28 Sustainability Report 29 Corporate Governance 42 Audit Committee Report 49 Statement on Risk Management and Internal Control 51 Directors’ Report and Statement by Directors 53 ////////////////////////////////////////////////////////////////// Financial Statements: Income Statements 57 Statements of Comprehensive Income 58 Statements of Financial Position 59 Statements of Changes in Equity 60 Statements of Cash Flows 63 Notes to the Financial Statements 65 Statement on Directors’ Responsibility 114 Statutory Declaration 114 Independent Auditors’ Report 115 Five-Year Summary 116 List of Properties Held 117 Analysis of Shareholdings 120 Notice of Annual General Meeting 122 Statement Accompanying Notice of Annual General Meeting 124 Form of Proxy Group Offices Genting Premier Brands /////////////////////////////////////////////////////////// GENTING MALAYSIA BERHAD Annual Report 2013 1 Chairman’s Statement /////////////////////////////////////////////////////////// Dear Fellow Shareholders, On behalf of the Board of Directors, I am delighted to present to you the Annual Report and Audited Financial Statements of Genting Malaysia Berhad (“Company”) and its group of companies (“Group”) for the financial year ended 31 December 2013. 2013 proved another rewarding year for the Group as we achieved growth In 2013, we continued to build upon our core competence in the leisure, across our international operations and further strengthened our position entertainment and hospitality industry via our business strategy of yield as one of the leading global operators of integrated destination resorts. The management and efficiency enhancement. We recognised the need to provide Group’s revenue grew 6% year-on-year to RM8.33 billion in 2013 and profit unique offerings and unparalleled experiences to our valued guests, and before tax was RM1.77 billion. took major steps to achieve these goals. These are evident from the major corporate developments undertaken by the Group during the year. Over the Our performance for the year was driven by our core leisure and hospitality past 48 years, significant changes have been made at Resorts World Genting business segment: (“RWG”) and we will continue to improve and evolve to provide the best to our esteemed customers. • Our Malaysian operations remained the primary contributor to the Group’s performance, posting revenue of RM5.69 billion compared to the prior In line with our efforts to strengthen our international brands – Genting year of RM5.50 billion. and Resorts World – a number of our properties in Malaysia were involved in a rebranding exercise which was completed in early 2013. Our flagship • Our United Kingdom (“UK”) operations generated higher revenue of destination resort, RWG, unveiled its brand new, luxurious Genting Club and RM1.59 billion, representing an increase of 12%. Crockfords suites to cater to our elite customers who appreciate the highest level of sophistication and style. • Our leisure and hospitality business in the United States of America (“US”), including contributions from our latest venture in Bimini in the Bahamas, RWG’s upcoming transformation is an inevitability underscored by the launch reported a 10% increase in revenue to RM941.8 million in 2013. of the Genting Integrated Tourism Plan (“GITP”) on 17 December 2013. The estimated RM5 billion GITP is a phased 10-year master plan to reinvigorate We are mindful of the need to conserve cash for future investments whilst and transform RWG. The GITP is set to be a major investment in the East Coast also rewarding our shareholders. The Company paid on 22 October 2013 an Economic Region. We are pleased that the GITP has been designated as an interim dividend of 4.3 sen less 25% tax per ordinary share of 10 sen each, Entry Point Project by the East Coast Economic Region Development Council. amounting to RM182.9 million. The Board of Directors has recommended a final single-tier dividend of 3.9 sen per share for the approval of shareholders During the year, RWG formalised its partnership with Twentieth Century Fox at the forthcoming Annual General Meeting. If approved, total dividend for the Consumer Products to develop the first international Twentieth Century Fox financial year 2013 would amount to 8.2 sen. World theme park at the resort. The new theme park, the first of its kind in the world, is anticipated to drive the growth in tourist visitations both to the country and to RWG upon its expected opening in 2016. The world-class Twentieth Century Fox World theme park will feature over 25 themed rides and attractions with unique cinematic concepts, including spectacular effects from top movies such as Ice Age, Rio and Night at the Museum. 2 GENTING MALAYSIA BERHAD Annual Report 2013 In addition to the new theme park, phase one of the GITP includes a The tourism industry in Malaysia recorded 25.7 million tourist visitations new 1,300-room hotel adjacent to First World Hotel, state-of-the-art and tourism receipts of RM65.4 billion in 2013. These are projected to infrastructures and amenities as well as the upgrading of existing hotels grow in the years ahead. As one of the top holiday destinations in Malaysia, at the resort. Other expansion plans include a show arena with a 10,000 RWG is well-positioned to benefit from this growth. With the closure of the seating capacity enabling RWG to feature top-notch entertainment acts outdoor theme park in September 2013 to make way for the development and further enhance the status of the resort as a provider of world class and construction works at RWG under the GITP, the Group has introduced entertainment, as well as shopping and dining facilities. To support the innovative indoor activities, attractions and events to boost visitations to anticipated increase in visitations to the resort from 2015 onwards, a new RWG. We also remain committed to further improve operational efficiencies cable car system from the mid hill to the hill top will also be developed, and yield management whilst intensifying our targeted marketing initiatives along with a multi-storey car park and additional bus bays. Phase two of in order to address intense competition in the region. the GITP development will comprise two new high-end tower hotels to offer a luxurious treat to our discerning customers. With the anticipated opening of the Twentieth Century Fox World in 2016 and the major developments that are taking place, we believe the GITP In the UK, we are pleased with the performance of our casinos which will bring about an era of change and transformation for both the tourism recorded a third successive year of double digit growth percentages. The landscape and integrated resort industry