MMTF_C83317_Cover_M6.aiTF_C83317_Cover_M6.ai 6/6/076/6/07 11:32:1811:32:18 PMPM Contents 2007 2 Company Profile 3 Corporate Information 4 Board of Directors 8 Senior Management 9 Group Financial Highlights 13 Group Segmental Information 14 Chairman’s Statement 18 Business Review 28 Corporate Social Responsibility Statement 30 Corporate Governance Statement 36 Audit Committee Report 40 Internal Control Statement 43 Financial Statements 119 Additional Compliance Information 120 Analysis of Shareholdings 125 List of Properties 127 Notice of Eightieth Annual General Meeting Form of Proxy Company Profile 2007 Tanjong public limited company (“Tanjong” or “Company”) was incorporated in England on 2 January 1926 as Tanjong Tin Dredging Limited. The Company assumed its present name in 1991 following the restructuring of the Company and the acquisition of Pan Malaysian Pools Sdn Bhd. Tanjong shares were re-listed on the Kuala Lumpur Stock Exchange (now Bursa Malaysia Securities Berhad, referred to as Bursa Securities throughout the Annual Report and Financial Statements) and the London Stock Exchange plc on 24 December 1991. The authorised capital of the Company is £33,750,000, comprising 450,000,000 shares of 7.5 pence each of which 403,256,136 shares of 7.5 pence each have been issued and fully paid as at 15 May 2007. The Company is an investment holding company of a group of subsidiaries whose principal activities relate to Power Generation, Gaming, Leisure and Property Investment. 2 TANJONG PUBLIC LIMITED COMPANY annual report & financial statements 2007 Corporate Information 2007 BOARD OF DIRECTORS REGISTRARS IN MALAYSIA Dato’ Robert Cheim Dau Meng (1) Symphony Share Registrars Sdn Bhd Chairman Level 26, Menara Multi-Purpose Independent Non-Executive Director Capital Square No. 8 Jalan Munshi Abdullah Leong Wai Hoong 50100 Kuala Lumpur Independent Non-Executive Director Malaysia Tel No. 603 2721 2222 Dato’ Larry Gan Nyap Liou @ Fax No. 603 2721 2530 / 2721 2531 Gan Nyap Liow (2) E-mail Address: [email protected] Independent Non-Executive Director Khoo Teik Chooi STOCK EXCHANGE LISTINGS Non-Executive Director Bursa Securities Augustus Ralph Marshall London Stock Exchange plc Executive Director STOCKBROKERS GROUP COMPANY SECRETARY Hoare Govett Limited, United Kingdom Siuagamy Ramasamy PRINCIPAL BANKERS REGISTERED OFFICE IN ENGLAND CIMB Bank Berhad (formerly known as The Registry Bumiputra-Commerce Bank Berhad), 34 Beckenham Road, Beckenham Malaysia Kent BR3 4TU, England National Westminster Bank plc, United Tel No. 020 863 92000 Kingdom Fax No. 020 865 83430 SOLICITORS PRINCIPAL OFFICE IN MALAYSIA Slaughter and May, United Kingdom Level 30, Menara Maxis Cheong Kee Fong & Co, Malaysia Kuala Lumpur City Centre 50088 Kuala Lumpur Malaysia AUDITORS Tel No. 603 2381 3388 PricewaterhouseCoopers LLP, United Fax No. 603 2381 3399 Kingdom Website: www.tanjongplc.com PRINCIPAL REGISTRARS Capita Registrars The Registry 34 Beckenham Road, Beckenham Kent BR3 4TU, England Tel No. 020 863 92157 Fax No. 020 863 92342 E-mail Address: [email protected] (1) He is also referred to as Dato’ Robert Cheim in other sections of the Annual Report & Financial Statements. (2) He is also referred to as Dato’ Larry Gan in other sections of the Annual Report & Financial Statements. TANJONG PUBLIC LIMITED COMPANY annual report & financial statements 2007 3 AUGUSTUS RALPH MARSHALL DATO’ ROBERT CHEIM KHOO TEIK CHOOI Executive Director Chairman/Independent Non-Executive Director Non-Executive Director DATO’ LARRY GAN LEONG WAI HOONG Independent Non-Executive Director Independent Non-Executive Director 4 TANJONG PUBLIC LIMITED COMPANY annual report & financial statements 2007 Board of Directors 2007 DATO’ ROBERT CHEIM Chairman/Independent Non-Executive Director Malaysian. Age 56. A Fellow of the Institute of Chartered Accountants in England and Wales and a Member of the Malaysian Institute of Accountants. Appointed Chairman/Independent Director to the Board of Tanjong in May 2005. A Non-Independent Non-Executive Director of Bumiputra-Commerce Holdings Berhad since November 2006. Currently an Adviser to CIMB Investment Bank Berhad. Joined CIMB Investment Bank Berhad in 1984, was Chief Executive Officer from 1993 to 1999 and also Executive Director from January 1992 to July 2006. DATO’ ROBERT CHEIM Between 1977 and 1984, held various management positions with the former United Asian Bank Berhad (now known as CIMB Bank Berhad). LEONG WAI HOONG Independent Non-Executive Director Malaysian. Age 61. Degree in Bachelor of Arts (Hons.) from the University of Malaya. Between 1977 and 1994, he held senior positions in R.J. Reynolds Berhad which was acquired by JT International Group in 1996. Joined Usaha Tegas Group (“UTSB”) in 1994 and held senior management and marketing positions in Binariang Sdn. Bhd. (now known as Maxis Communications Berhad). Appointed Non-Executive Director of Tanjong in April 1994 and has been an Independent Director since September 1996, upon his resignation from UTSB. Was the Regional Vice President (S.E.Asia), JT International in 1996. In the same year, he was appointed the Managing Director of JT International Berhad (listed on the Bursa Securities) until his retirement in January 2000 and currently serves on its board as a Non-Executive Director. Has extensive experience in business development, sales, marketing and general management. LEONG WAI HOONG TANJONG PUBLIC LIMITED COMPANY annual report & financial statements 2007 5 DATO’ LARRY GAN Independent Non-Executive Director Malaysian. Age 52. A Fellow of the Association of Chartered Certified Accountants and a Member of the British Institute of Management, Malaysian Institute of Accountants and Institute of Management Consultants respectively. Appointed Independent Director to the Board of Tanjong in May 2005. He retired in December 2004 from the global Accenture organization, a leading management and technology consulting firm. He spent 26 years with the firm, 16 as Partner, and had many global leadership roles. He was Managing Partner – Malaysia from 1989 to retirement, Managing Partner – ASEAN 1993-1996, Managing Partner – ASIA 1997-1999 and Managing Partner, Corporate Development, ASIA PACIFIC – 1999 to 2002. Between 1997 and 2004, he was a member of the Global Management Council, and sat on the many global management committees governing partner admission, rewards and compensation. Is a Board Member of MIMOS Berhad (the Malaysian Government technology research corporation), REDtone Berhad, Datascan Berhad, Ambank (M) Berhad, AmInvestment DATO’ LARRY GAN Group Berhad and Tien Wah Press Holdings Berhad. He has also served as Chairman of the Association of Computer Industry Malaysia (PIKOM) and a Member of the Copyright Tribunal and The Labuan International Financial Exchange Committee. KHOO TEIK CHOOI Non-Executive Director Malaysian. Age 69. Qualified in automotive engineering in South Bedfordshire Technical College, Luton, UK. Appointed Director to the Board of Tanjong in October 1991 and was appointed its Chairman in July 1992. Retired as Chairman and Executive Director of Tanjong on 1 April 2003 and remains as Non-Executive Director. Between 1961 and 1969, served in various management positions with Borneo Motors Ltd. From 1969 to 1987, held various senior marketing and management positions in the Shell group of companies in Malaysia prior to joining the Group. Was responsible for the establishment of the Numbers Forecast Totalisator business. Has extensive experience in business, sales and marketing and general management. KHOO TEIK CHOOI AUGUSTUS RALPH MARSHALL Executive Director Malaysian. Age 55. An Associate of the Institute of Chartered Accountants in England and Wales, and a Member of the Malaysian Institute of Certified Public Accountants and has some 30 years experience in financial and general management. Has been a Director of Tanjong since August 1991 and an Executive Director since February 1992. Is primarily responsible for providing strategic direction and investment policy decisions. He also serves on the Boards of several companies listed on the Bursa Securities viz ASTRO ALL ASIA NETWORKS plc (“Astro”) as Executive Deputy Chairman, Maxis Communications Berhad (“Maxis”), MEASAT Global Berhad and KLCC Property Holdings Berhad as Non- Executive Director. His other directorships include Powertek Berhad, Arnhold Holdings Limited (listed on The Stock Exchange of Hong Kong Limited) and Overseas Union Enterprise Limited (“OUE”) (listed on the Singapore Exchange Securities Trading Limited). He is also an Executive Director of Usaha Tegas Sdn Bhd, which has significant interests in Tanjong, Maxis, Astro and OUE among others. AUGUSTUS RALPH MARSHALL 6 TANJONG PUBLIC LIMITED COMPANY annual report & financial statements 2007 Board of Directors (continued) Details of membership in Board Committees BOARD COMMITTEES DIRECTORS Audit Remuneration Nominating Committee Committee Committee Dato’ Robert Cheim – – Chairman Leong Wai Hoong Member Chairman Member Dato’ Larry Gan Chairman Member – Khoo Teik Chooi – – Member (w.e.f. 1.2.2007) Augustus Ralph Marshall Member Member – (w.e.f. 1.2.2007) (w.e.f. 1.2.2007) Tan Poh Ching (1) Member Member Member (ceased w.e.f. 1.2.2007) (ceased w.e.f. 1.2.2007) (ceased w.e.f. 1.2.2007) (1) Tan Poh Ching ceased as a Director of Tanjong w.e.f. 1 February 2007. As a consequence of his cessation as Director, he ceased his membership of the Audit, Remuneration and Nominating Committees of Tanjong simultaneously. • Directors’ attendance at the