EIGHTH KHAZANAH ANNuAl REvIEw - Khazanah Nasional Berhad

6
7
2012: EXECuTING STRATEGIC INITIATIvES
New economy investments (“Neis”)
Total committed
investments of
RM84.8bn from
2006 to Dec 2011, of
which 45% has been
actualised
Price ↑ by ~ 400%
since listing in
Nov 2008
Source: Iskandar Regional Development Authority (“IRDA”); Bloomberg
Selected Neis
iskandar Malaysia leisure & tourism khazanah - temasek
Joint investments
Supporting the National transformation Policy
X Corporate
Responsibility
FLAGSHIP A
JOHOR BAHRU CITY CENTRE
• Central Business District
• Danga Bay Integrated
Waterfront City
• Upgrading of Central Business District
• Tebrau-Plentong Mixed Development
• Customs, Immigration and
Quarantine Complex (CIQ)
• Johor-Singapore Causeway
• Lido Boulevard
• Conservation and Heritage Zones
FLAGSHIP B
NUSAJAYA
FLAGSHIP C
WESTERN GATE DEVELOPMENT
• Port of Tanjung Pelepas
• Tanjung Bin Power Plant
• Malaysia - Singapore Second Link
• RAMSAR World Heritage
• Tanjung Piai - Southernmost Tip
of Mainland Asia
• Free Trade Zone
FLAGSHIP D
EASTERN GATE DEVELOPMENT
• Tanjung Langsat Industrial Complex
• Tanjung Langsat Port
• Johor Port
• Pasir Gudang Industrial Park
• APTEC (Lakehill Resort City)
X Knowledge Development
Barefoot leadership
Complexity of FTAs
8 Summary and focus for 2012
Summary for 2011
X Steady financial performance: Net sellers, Markedto-Market
portfolio dragged by regulated companies
and soft markets, contrasted with record Profit
Before Tax and dividend payout and stronger
balance sheet covers
X Significant on-going strategic progress: Defining
year from various strategic and key transactions
Khazanah and investee companies coverage across the region
M+S Pte. Ltd.
Urban Wellness and Resort
Wellness developments in
Iskandar Malaysia
FLAGSHIP E
SENAI DAI
• Senai International Aiport
• Senai Cargo Hub
• Senai High-Tech Park
• Sedenak Industrial Park
• MSC Cyberport City
• Johor Technology Park
• Johor Premium Outlets®
Healthcare
X Support of National
Transformation Initiatives
ISKANDAR MALAYSIA - FIVE YEAR PROGRESS REPORT 1
Outlook for 2012: Building True Value
X Cautious investment outlook
X On-going 5++ transformation strategy (GLCT, Regionalisation, NEIs, Collaboration
and Co-investment, Core focus and strategic divestment)
X Continuing support of National Transformation Policy
X Institutionalisation
THE JOURNEY CONTINUES
5/2004 2005 2006 2007 2010 2015
Phase 1: Mobilisation, Phase 2: Generate Phase 3: Tangible Phase 4:
Diagnosis & Planning Momentum
Results
Full National Benefit
14 months 12-17 months
2-5 years
5-10 years onwards
5/2004
1/2005
2004 Measures PCG formed
KPI and PLCs Performance 29th July 2005
Transformation
Manual Launch
Targeted outcomes:
The GLCT Programme was established as
a 10-year journey over four phases. The
Programme is now in its 7th year, just having
entered Phase 4, which anticipates reaping
the full national benefit by 2015. As such,
it is timely to undertake this review of the
performance and direction of the Programme,
notwithstanding the financial and strategic
achievements thus far.
Given Malaysia’s aspirations to achieve
developed nation status by 2020, the target of
producing regional and domestic champions
from amongst the ranks of the GLCs remains
highly critical.
Hence GLCs must relentlessly stay the course
set out by the programme, and pursue the
need to become champions and regionalise,
while playing their roles in support of national
development. These are among the roles
required of GLCs in support of the New
Economic Model.
GLCs are clearly establishing their positions
as domestic leaders and competitive at
the regional level. Maybank and CIMB have
branch networks across ASEAN which are on
par with regional banking groups. Axiata has
a subscriber base of 160 million across nine
countries. Sime Darby derives more than 90% 31 of the 135 Entry Point Projects announced
of its profits from global businesses spanning under the ETP, and must be accountable for
20 countries. Tabung Haji’s operational delivery of these.
efficiency have made it a recognised brand
across the world.
Thus while GLCs have made great strides
forward, there is still much work to be
In terms of national development, GLCs have done. The journey must continue, since the
actively contributed to the national efforts in destination - a high income, inclusive and
NKRAs and NKEAs. The G20 are involved in sustainable nation - is worth enduring the
challenges.
contracts
Monitoring Phase
Regular PCG Meetings
Board composition reform
Revamp of Khazanah
Policy Guidelines
GLC leadership changes Ten 2005/6 Initiatives
Diagnosis of GLCs
2005/6 Initiatives
Maintain momentum
Several regional champions
conducted
implemented
Tangible & sustained benefits Most GLCs performing at par
Determination of Policy Full roll-out in place
across GLCs
with competitors
Principles
Key policies endorsed Visible benefits to all
Initial 2004 Initiatives
and executed upon
stakeholders, e.g., customers,
launched
Early fruits of
vendors, employees, etc.
sustainable
Large scale strategic and
improvements
financial changes made
Material changes to Boards
Source: GLC Transformation Manual, July 2005; PCG Analysis
TODAY
CHART 5: G20 asset distribution by
geography
1,000,000 Domestic Overseas
900,000
800,000
23%
700,000
1,000,000 Domestic Overseas
600,000
900,000
500,000
800,000
23%
400,000
700,000
14%
300,000
77%
600,000
200,000
500,000
86%
100,000
400,000
0
14%
300,000
77%
FY2004 FY2010
200,000
86%
100,000
0
180,000 FY2004
Domestic Overseas
FY2010
160,000
140,000
31%
180,000 120,000
Domestic Overseas
160,000 100,000
140,000 80,000
25%
31%
120,000 60,000
100,000 40,000
75% 69%
80,000 20,000
25%
60,0000
FY2004 FY2010
40,000
75% 69%
20,000
0
FY2004 FY2010
24,927
22,093
24,927
19,307
22,093
17,292
19,307
14,696
17,292
11,635
10,617
14,696
9,602
7,628
11,635
10,617
9,602
7,628
CHART 6: G20 revenue distribution by
geography
RM bn
24,000
22,000
RM bn
24,000
20,000
22,000
18,000
20,000 16,000
18,000
14,000
16,000
12,000
14,000 10,000
12,000
8,000
10,000
6,000
FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011F FY2012F
8,000
6,000
FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011F FY2012F
31%
OVERSEAS
REVENUE
in 2010, up from 25% in
2004, pointing to the
growth of the G20’s
regional footprint
participating companies
(423858-X)
www.pcg.gov.my
TH Plantations Berhad
For further information,
please visit our website at
GLCs PERFORMANCE
REPORT CARD
2004 - 2010
www.glcopenday.com.my
2012: EXECUTING STRATEGIC INITIATIVES
6 New Economy Investments (“NEIs”)
7 Supporting the National Transformation Policy
Summary for 2011
portfolio dragged by regulator companies and soft
markets, contrasted with record PBT and dividend
payout and stronger balance sheet covers
year from various strategic and key transactions
Outlook for 2012: Building True Value
and Co-investment, Core focus and strategic divestment)
X Corporate
X Knowledge Development
X Support of National
Responsibility
8 Summary and Focus for 2012
X Steady financial performance: Net sellers, MTM
X Significant on-going strategic progress: Defining
Khazanah and investee companies coverage across the region
Total committed
investments of
RM84.8bn from
2006 to Dec 2011, of
which 45% has been
actualised
Price ↑ by ~400%
since listing in
Nov 2008
Source: Iskandar Regional Development Authority (“IRDA”)
Selected NEIs
THE JOURNEY CONTINUES
The GLCT Programme was established as
a 10-year journey over four phases. The
Programme is now in its 7th year, just having
entered Phase 4, which anticipates reaping
the full national benefit by 2015. As such,
it is timely to undertake this review of the
performance and direction of the Programme,
notwithstanding the financial and strategic
achievements thus far.
Given Malaysia’s aspirations to achieve
developed nation status by 2020, the target of
producing regional and domestic champions
from amongst the ranks of the GLCs remains
highly critical.
Hence GLCs must relentlessly stay the course
set out by the programme, and pursue the
need to become champions and regionalise,
while playing their roles in support of national
development. These are among the roles
required of GLCs in support of the New
Economic Model.
GLCs are clearly establishing their positions
as domestic leaders and competitive at
the regional level. Maybank and CIMB have
branch networks across ASEAN which are on
par with regional banking groups. Axiata has
a subscriber base of 160 million across nine
countries. Sime Darby derives more than 90% 31 of the 135 Entry Point Projects announced
of its profits from global businesses spanning under the ETP, and must be accountable for
20 countries. Tabung Haji’s operational delivery of these.
efficiency have made it a recognised brand
across the world.
Thus while GLCs have made great strides
forward, there is still much work to be
In terms of national development, GLCs have done. The journey must continue, since the
actively contributed to the national efforts in destination - a high income, inclusive and
NKRAs and NKEAs. The G20 are involved in sustainable nation - is worth enduring the
challenges.
Source: GLC Transformation Manual, July 2005; PCG Analysis
X Cautious investment outlook
X On-going 5++ transformation strategy (GLCT, Regionalisation, NEIs, Collaboration
X Continuing support of National Transformation Policy
X Institutionalisation
FLAGSHIP A
JOHOR BAHRU CITY CENTRE
• Central Business District
• Danga Bay Integrated
Waterfront City
• Upgrading of Central Business District
• Tebrau-Plentong Mixed Development
• Customs, Immigration and
Quarantine Complex (CIQ)
• Johor-Singapore Causeway
• Lido Boulevard
• Conservation and Heritage Zones
TM
FLAGSHIP B
NUSAJAYA
Iskandar Malaysia Leisure & Tourism Khazanah - Temasek JVs Healthcare
Barefoot leadership
Complexity of FTAs
5/2004 2005 2006 2007 2010 2015
Phase 1: Mobilisation, Phase 2: Generate Phase 3: Tangible Phase 4:
Diagnosis & Planning Momentum
Results
Full National Benefit
CHART 5: G20 asset distribution by
geography
CHART 6: G20 revenue distribution by
geography
in 2010, up from 25% in
2004, pointing to the
growth of the G20’s
regional footprint
14 months 12-17 months
2-5 years
5-10 years onwards
5/2004
1/2005
2004 Measures PCG formed
KPI and PLCs Performance 29th July 2005
Transformation
Manual Launch
Targeted outcomes:
contracts
Monitoring Phase
Regular PCG Meetings
Board composition reform
Revamp of Khazanah
GLC leadership changes
Diagnosis of GLCs
conducted
Determination of Policy
Principles
Initial 2004 Initiatives
launched
Policy Guidelines
Ten 2005/6 Initiatives
2005/6 Initiatives
Maintain momentum
Several regional champions
Tangible & sustained benefits Most GLCs performing at par
across GLCs
with competitors
Visible benefits to all
stakeholders, e.g., customers,
vendors, employees, etc.
Large scale strategic and
financial changes made
Material changes to Boards
implemented
Full roll-out in place
Key policies endorsed
and executed upon
Early fruits of
sustainable
improvements
participating companies
1,000,000 Domestic Overseas
900,000
800,000
23%
700,000
1,000,000 Domestic Overseas
600,000
900,000
500,000
800,000
23%
400,000
700,000
14%
300,000
77%
600,000
200,000
500,000
86%
100,000
400,000
0
14%
300,000
77%
FY2004 FY2010
200,000
86%
100,000
0
180,000 FY2004
Domestic Overseas
FY2010
160,000
140,000
31%
180,000 120,000
Domestic Overseas
160,000 100,000
140,000 80,000
25%
31%
120,000 60,000
100,000 40,000
75% 69%
80,000 20,000
25%
60,0000
FY2004 FY2010
40,000
75% 69%
20,000
0
FY2004 FY2010
24,927
22,093
24,927
19,307
22,093
17,292
19,307
14,696
17,292
11,635
10,617
14,696
9,602
7,628
11,635
10,617
9,602
7,628
RM bn
24,000
22,000
RM bn
24,000
20,000
22,000
18,000
20,000 16,000
18,000
14,000
16,000
12,000
14,000 10,000
12,000
8,000
10,000
6,000
FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011F FY2012F
8,000
6,000
FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011F FY2012F
31%
OVERSEAS
REVENUE
TODAY
GLCs PERFORMANCE
REPORT CARD
2004 - 2010
TH Plantations Berhad
For further information,
please visit our website at
www.pcg.gov.my
www.glcopenday.com.my
ISKANDAR MALAYSIA - FIVE YEAR PROGRESS REPORT 1
Urban Wellness and Resort
Wellness developments in
Iskandar Malaysia
TM
CHAPTER 2 - STRATEGIC POSITIONING
Transformation Initiatives
FLAGSHIP C
WESTERN GATE DEVELOPMENT
• Port of Tanjung Pelepas
• Tanjung Bin Power Plant
• Malaysia - Singapore Second Link
• RAMSAR World Heritage
• Tanjung Piai - Southernmost Tip
of Mainland Asia
• Free Trade Zone
FLAGSHIP D
• Tanjung Langsat Industrial Complex
• Tanjung Langsat Port
• Johor Port
• Pasir Gudang Industrial Park
• APTEC (Lakehill Resort City)
M+S Pte. Ltd.
EASTERN GATE DEVELOPMENT
JOHOR
FLAGSHIP E
SENAI DAI
• Senai International Aiport
• Senai Cargo Hub
• Senai High-Tech Park
• Sedenak Industrial Park
• MSC Cyberport City
• Johor Technology Park
• Johor Premium Outlets®
ISKANDAR MALAYSIA - FIVE YEAR PROGRESS REPORT 1
This brochure is printed on environmentally friendly paper.
Please recycle and help save our planet.
January 2012
TM
CHAPTER 2 - STRATEGIC POSITIONING
JOHOR
CHAPTER 2 - STRATEGIC POSITIONING
www.khazanah.com.my
EIGHTH
KHAZANAH ANNUAL REVIEW
18 JANUARY 2012
REVIEW OF 2011 & OUTLOOK FOR 2012
TM
CHAPTER 2 - STRATEGIC POSITIONING
ISKANDAR MALAYSIA - FIVE YEAR PROGRESS REPORT 1
2012
January 2012
This brochure is printed on environmentally friendly paper.
Please recycle and help save our planet.
EIGHTH
KHAZANAH ANNuAl REvIEw
Review of 2011 & outlook foR 2012
18 JaNuaRy 2012
www.khazanah.com.my
2012

1
(33.5%)
• 2,148 families including in East Malaysia
Building Award FIABCI Malaysia
FIG FINANCIAl PERFORMANCE have received benefits
Property Award 2009’
Property
FINANCIAl PERFORMANCE 140
1.6%
• CATAlYSING RM1.5bn (1.4) (37.4%) of procurement GROwTH & vAluE CREATION
financial & portfolio performance
.4% Listed Portfolio TSR
.3%
KLCI
.9%
SET Index
.4% Straits Times Index
.3% Jakarta Stock Price Index
Hang Seng Index
Shanghai Composite Index
.3%
SENSEX
8% MSCI Emerging Markets
5% MSCI Asia ex-Japan
8% MSCI AC World
10% 20% 30% 40% 50%
K-9 TSR
KLCI
Jakarta
Composite
Index
SE
ailand
Index
SENSEX
3
Technology Life
Sciences
0.4%
Agriculture Leisure Automotive
0.4% 0.5% & Tourism 1.0%
0.8%
Sustainable
Transportation
G-20 and K-9 have
Development
& Logistics
0.2%
CAGR* outperformed the other
4.7%
• Higher service delivery and quality
• >5,000 graduates placed in 638
290
Total Economic Profit for G-20 Total Economic Profit for K-9
levels
constituents of the KLCI
Education
Healthcare
companies; 72% have secured jobs
G-20 Index 14.5%
Total Economic Loss for G-20 Total Economic Loss for K-9
by 1.1% and 2.0%
0.1%
5.1%
• ‘Skytrax 2010 World Airport Awards’
FBM KLCI ex G-20 13.4%
• 207 schools adopted by 25 GLCs, covering
respectively
3.5
Infrastructure &
• ‘The Edge Malaysia's Developers
more than 103,000 students
240
Construction
K-9 Index
Awards No.1 property company in
15.1%
Media &
9.7%
Others
FBM KLCI ex K-9 13.1%
1.8
• ‘Straight As’ UPSR results exceeded
Malaysia’ 2009
Comms
10.4%
national average for 2007, 2008 and
• ‘World's Leading Airline to Asia’
22.8%
190
0.3
2009
Utilities
• The Curve – ‘Best Commercial
10.8%
• 2,148 families including in East Malaysia
Building Award FIABCI Malaysia
FIG
have received benefits
Property Award 2009’
Property
140
(1.4)
19.1%
31 Dec-11
(1.7)
14.0%
(1.9)
(1.8)
COMMUNITY AND CSR CUSTOMERS
(3.0)
100=14/5/04
VENDORS AND SUPPLIERS EMPLOYEES & HUMAN CAPITAL
(3.7)
90
May Jan Sep May Jan Sep May Jan Sep May Jan Sep (4.6)
-04 -05 -05 -06 -07 -07 -08 -09 -09 -10 -11 -11
2005 2006 2007 2008 2009
• 130 graduates of ‘Vendor Development
* Compounded Annual Growth Rate for the period of 14 May 2004 to 31 December 2011
Programme’ since 2004
• G-GLC Cross Fertilisation Programme –
2nd cycle, 30 participants cross assigned
• Assisting Bumiputera vendors to
to increase public-private cooperation
develop Halal products
• Collaboration with universities:
• HSBB – Contracts to Bumiputeras >53%
by value
Middle East
Aggregate earnings have increased for G20 by
343
Others
1.0%
RM7.7bn and for K9 by RM5.3bn from ‘04 to ‘10
1.0%
India
• 70% of procurement spend awarded to
1.5% Bumiputera vendors
23.1
293
China
G-20
273
1.6%
• RM1.5bn (37.4%) of procurement
G-20
19.3
Singapore directed to 60% Bumi vendors
19.0
K-9
K-9
224
4.9%
17.3
204
Malaysia
14.7
181
172
159
155
90.0%
152
11.7
136
10.6
9.6
97
108
101
7.6 10.8
10.8
11.6
8.5
7.4
Stay the course in executing
6.5 6.5
5.5
the 10 year GLCT
Programme
3.3
14 May 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec
Continue
focus on core
1
2004 2005 2006 2007 2008 2009 2010 2011F 2012F 2004 2005 2006 2007 2008 2009 2010
operations: level
Relentless
playing 5
drive to
field and
2
GLIC/GLC become
exit non-core/
non-competitive
regional
roles in NEM
assets
champions
4
3
RM bn
111.6
120
91.2
Collaborate and Pursue new economy
100
co-invest with investments in line
private sector with NEM
80
60
50.9
40
Khazanah’s
NWA growth 20
31 Dec
31 Dec
0.4%
0
2010
14 May
2009
2004
4.1%
74.8
RM bn
80
39.1%
70
53.8
60
124.6%
6.5%
50
40
33.3
1.2%
30
20
10
31 Dec
31 Dec
0
2010
14 May
2009
2004
MSCI
Emerging Markets
%
(7.0%)
(15.7%)
MSCI
AC World (3.7%)
Straits
Times Index
Shanghai
Composite Index
(11.9%)
(13.6%)
MSCI
Asia ex-Japan (14.4%)
RealiSable aSSet value (“Rav”) Net woRtH aDJuSteD
(RM bn)
108.1
Hang Seng
(14.5%)
Index
1 Based on unaudited accounts
2 NWA: RAV less Total Liabilities and adjusted to measure value created
3 TSR: Total Shareholders’ Return
4 In MYR terms
2 (“Nwa”)
(RM bn)
70.0
RM bn
120
100
80
60
40
20
31 Dec
31 Dec
31 Dec
2011
0 14 May 2009
2010
2004
1
RM bn
75.2
70.0
53.8
33.3
31 Dec
31 Dec
31 Dec
2011
14 May 2009
2010
2004
1
RM bn
120
100
80
60
40
20
31 Dec
31 Dec
31 Dec
2011
0 14 May 2009
2010
2004
112.6
108.1
91.2
50.9
80
70
60
50
40
30
20
10
0
RM bn
90
78
80
69
70
60
56
50
42
40
30 26
20
11
10
0
2006 2007 2008 2009 2010 Sep-11
Manufacturing
Properties
Utilities, Tourism & Others Government
Committed Investment
1
RM bn
75.2
70.0
53.8
33.3
31 Dec
31 Dec
31 Dec
2011
14 May 2009
2010
2004
1
Portfolio value as at 14 May 04 31 Dec 09 31 Dec 10 31 Dec 11
112.6
108.1
91.2
50.9
80
70
60
50
2 Portfolio activity and segmentation
40
30
20
10
0
Technology Life
Sciences
33.4% Listed Portfolio TSR
0.4%
Agriculture Leisure Automotive
0.4% 0.5% & Tourism 1.0%
0.8%
Sustainable
Transportation
23.3%
KLCI Development
RM bn
& Logistics
0.2%
90
4.7%
• Higher service delivery and quality
• >5,000 graduates placed in 638
78
levels
80
69 45.9%
SET Index Education
Healthcare
companies; 72% have secured jobs
70
0.1%
5.1%
• ‘Skytrax 2010 World Airport Awards’
• 207 schools adopted by 25 GLCs, covering
60
56
Infrastructure &
• ‘The Edge Malaysia's Developers
10.4% Straits Times Index
Construction
more than 103,000 students
50
Awards No.1 property company in
42
Media &
9.7%
40
Others
• ‘Straight As’ UPSR results exceeded
Malaysia’ 2009
30 26
41.3% Jakarta Stock Price Index
Comms
10.4%
national average for 2007, 2008 and
• ‘World's Leading Airline to Asia’
22.8%
2009
20
11
Utilities
• The Curve – ‘Best Commercial
10
(3.8%)
Technology Hang Life Seng Index
10.8%
• 2,148 families including in East Malaysia
Building Award FIABCI Malaysia
0
Sciences
2006 33.4% 2007 2008 2009 Listed 2010Portfolio Sep-11 TSR
0.4%
Agriculture Leisure Automotive FIG
have received benefits
Property Award 2009’
0.4%
& Tourism 1.0%
Property
0.5%
(19.7%) Shanghai Composite Index 0.8%
19.1%
14.0%
Manufacturing
Properties
Sustainable
COMMUNITY AND CSR CUSTOMERS
Transportation
23.3%
KLCI Development
Utilities, Tourism & Others Government
& Logistics
0.2%
• Higher service delivery and quality
CAGR*
10.3%
SENSEX
4.7%
VENDORS AND SUPPLIERS EMPLOYEES
• >5,000 graduates placed in 638
290 & HUMAN CAPITA
Committed Investment
levels
Healthcare
45.9%
SET Index Education
companies; 72% have secured jobs
G-20 Index 14.5%
0.1%
5.1%
• 130 graduates of ‘Vendor • Development
‘Skytrax 2010 World Airport Awards’
5.8% MSCI Emerging Markets
FBM KLCI ex G-20 13.4%
• 207 schools adopted by 25 GLCs, covering
Infrastructure &
Programme’ since 2004
• G-GLC Cross Fertilisation Programme –
• ‘The Edge Malaysia's Developers
10.4% Straits Times Index
Construction
more than 103,000 students
2nd cycle, 30 participants 240
K-9 cross Indexassigned Awards No.1 property company in
15.1%
Media &
9.7%
• Assisting Bumiputera vendors to
6.5% MSCI Asia ex-Japan
Others
• ‘Straight As’ UPSR results exceeded
Malaysia’ 2009
to increase public-private FBM cooperation KLCI ex K-9 13.1%
41.3% Jakarta Stock Price Index
Comms
develop Halal products
10.4%
national average for 2007, 2008 and
• ‘World's Leading Airline to Asia’
• Collaboration with universities:
22.8%
190
0.8% MSCI AC World
2009
• HSBB – Contracts to Bumiputeras >53%
Utilities
• The Curve – ‘Best Commercial
by value
(3.8%)
Hang Seng Index
10.8%
• 2,148 families Middle including East in East Malaysia
Building Award FIABCI Malaysia
FIG
Others
have received benefits
Property Award 2009’
(20%) (10%) 0% 10% 20% 30% 40% 50% Property
1.0%
1.0%
India
• 70% of procurement spend awarded to
140
(19.7%) Shanghai Composite Index
19.1%
14.0%
1.5% Bumiputera vendors
COMMUNITY China AND CSR CUSTOMERS
1.6%
• RM1.5bn (37.4%) of procurement
100=14/5/04
10.3%
SENSEX
VENDORS AND Singapore SUPPLIERS directed to 60% Bumi vendors EMPLOYEES & HUMAN CAPITAL
90
4.9%
May Jan Sep May Jan
-04 -05 -05 -06 -07
• 130 graduates of ‘Vendor Development
5.8% MSCI Emerging Markets
* Compounded Annual Growth Rate fo
Malaysia
Programme’ since 2004
• G-GLC Cross Fertilisation Programme –
90.0%
2nd cycle, 30 participants cross assigned
• Assisting Bumiputera vendors to
6.5% MSCI Asia ex-Japan
to increase public-private cooperation
develop Halal products
• Collaboration with universities:
0.8% MSCI AC World
1
Rav (RM bn) 50.9 91.2 112.6 108.1
Nwa2 (RM bn) 33.3 53.8 75.2 70.0
Rav/liability Cover (x) 2.9 2.1 2.6 2.9
Shareholders’ funds (RM bn) 7.7 17.6 21.4 24.6
4 Selected key transactions in 2011
fy ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11
5 Selected progress on regionalisation
1
Profit
before tax 282 (831) 1,014 5,110 128 791 2,081 5,334
(RM m)
Dividends
Declared 30 30 100 1,000 100 100 500 3,000
(RM m)
Total Return 20114 31 Dec
31 Dec
2011
2010
Strategic divestment of Khazanah’s 32% stake in POS
Malaysia for RM623m. The two-stage divestment process
sets a template for future transactions
Mitsui acquires a 30% stake in IHH for RM3.3bn.
Subsequently, IHH and Khazanah co-invest USD1.0bn for
75% of Acibadem Hospitals in Turkey, resulting in one of the
world’s largest healthcare companies
Three Malaysian airlines enter into a Comprehensive
Collaboration Framework, which will result in increased
choice and improved service quality for consumers
Resolution of PoA leads to joint developments in Iskandar
Malaysia and Singapore, with total Gross Development Value
(“GDV”) estimated at RM30bn
Collaboration with a private sector company in a joint
development in Zone F Medini, with total GDV estimated
at RM12bn
RM23bn privatisation of PLUS by UEM Group and EPF,
concurrent with revised toll concessions to reduce burden
on users
1
75.2
69.9
31 Dec
31 Dec
2011
2010
1
X
s
n
ive
tSR iNDeX fRoM 14 May ‘04 to 31 DeC ‘11
aggRegate eaRNiNgS (RM bn)
d
tion
G-20 and K-9 have
stics112.6
108.1
CAGR* outperformed the other
.7%
• Higher service delivery and quality
• >5,000 graduates placed in 638
290
Total Economic Profit for G-20 Total Economic Profit for K-9
levels
constituents of the KLCI
care
companies; 72% have secured jobs
G-20 Index 14.5%
Total Economic Loss for G-20 Total Economic Loss for K-9
.1%
• ‘Skytrax 2010 World Airport Awards’
by 1.1% and 2.0%
FBM KLCI ex G-20 13.4%
• 207 schools adopted by 25 GLCs, covering
respectively
3.5
• ‘The Edge Malaysia's Developers
more than 103,000 students
240
K-9 Index
Awards No.1 property company in
15.1%
1.8
• ‘Straight As’ UPSR results exceeded
Malaysia’ 2009
FBM KLCI ex K-9 13.1%
national average for 2007, 2008 and
• ‘World's Leading Airline to Asia’
190
0.3
2009
• The Curve – ‘Best Commercial
• 2,148 families including in East Malaysia
Building Award FIABCI Malaysia
have received benefits
Property Award 2009’
140
(1.4)
31 Dec-11
(1.7)
(1.9)
(1.8)
COMMUNITY AND CSR CUSTOMERS
(3.0)
100=14/5/04
VENDORS AND SUPPLIERS EMPLOYEES & HUMAN CAPITAL
(3.7)
90
May Jan Sep May Jan Sep May Jan Sep May Jan Sep (4.6)
-04 -05 -05 -06 -07 -07 -08 -09 -09 -10 -11 -11
2005 2006 2007 2008 2009
• 130 graduates of ‘Vendor Development
* Compounded Annual Growth Rate for the period of 14 May 2004 to 31 December 2011
Programme’ since 2004
• G-GLC Cross Fertilisation Programme –
2nd cycle, 30 participants cross assigned
• Assisting Bumiputera vendors to
to increase public-private cooperation
develop Halal products
• Collaboration with universities:
• HSBB – Contracts to Bumiputeras >53%
by value
Aggregate earnings have increased for G20 by
343
• 70% of procurement spend awarded to
RM7.7bn and for K9 by RM5.3bn from ‘04 to ‘10
Bumiputera vendors
23.1
293
na
G-20
273
%
• RM1.5bn (37.4%) of procurement
G-20
19.3
ingapore directed to 60% Bumi vendors
19.0
K-9
K-9
224
4.9%
17.3
204
14.7
181
172
159
155
78
152
11.7
136
69 track record of profitability and dividend to shareholders
10.6
9.6
97
108
101
56
7.6 10.8
10.8
11.6
K-9 TSR
8.5
7.4
Stay the course in executing
6.5 6.5
KLCI
5.5
the 10 year GLCT
Programme
3.3
14 May 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec
Continue
2004 2005 2006 2007 2008 2009 2010
2009 2010 Sep-11
focus on core
1
2004 2005 2006 2007 2008 2009 2010 2011F 2012F
Jakarta operations: level
Relentless
Properties
Composite
playing 5
drive to
field and
2
Others Government
Index GLIC/GLC become
exit non-core/
regional
ent
SE non-competitive roles in NEM
ailand assets
champions
Index
NWA Movement
4
3
RM bn
111.6
(RM bn)
120
91.2
Collaborate and Pursue new economy
100
co-invest with investments in line
private sector with NEM
80
75.2 Excluding companies with
50.9
regulatory constraints and within
60
challenging industries, Khazanah’s
40
NWA movement was RM2.3bn
(3.1% growth)
20
31 Dec
31 Dec
0
2010
14 May
2009
(2.3)
2004
2.3 70.0
74.8
RM bn
(1.5)
80
39.1%
70
53.8
60
124.6%
50
t Before Tax
(3.7)
40
33.3
5.3
dend Declared
30
20
NWA CIMB TNB Aviation Remaining NWA
10
31 Dec
31 Dec
3.0 2010
Portfolio 2011
0
2010
14 May
2009
2004
3
VENDORS AND SUPPLIERS
• 130 graduates of ‘Vendor Development
Programme’ since 2004
EMPLOYEES & HUMAN CAPITAL
90
May Jan Sep May Jan Sep May Jan Sep May Jan Sep
-04 -05 -05 -06 -07 -07 -08 -09 -09 -10 -11 -11
* Compounded Annual Growth Rate for the period of 14 May 2004 to 31 December 2011
• G-GLC Cross Fertilisation Programme –
2nd cycle, 30 participants cross assigned
(4.6)
2005 2006 2007 2008 2009
• Assisting Bumiputera vendors to
to increase public-private cooperation
develop Halal products
• Collaboration with universities:
• HSBB – Contracts to Bumiputeras >53%
by value
Middle East
Aggregate earnings have increased for G20 by
343
Others
1.0%
RM7.7bn and for K9 by RM5.3bn from ‘04 to ‘10
1.0%
India
• 70% of procurement spend awarded to
1.5% Bumiputera vendors
23.1
293
China
G-20
273
1.6%
• RM1.5bn (37.4%) of procurement
G-20
19.3
Singapore directed to 60% Bumi vendors
19.0
K-9
K-9
224
4.9%
17.3
204
Malaysia
14.7
181
172
159
155
90.0%
152
11.7
136
10.6
9.6
97
108
101
7.6 10.8
10.8
11.6
8.5
7.4
Stay the course in executing
6.5 6.5
5.5
the 10 year GLCT
Programme
3.3
14 May 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec
Continue
focus on core
1
2004 2005 2006 2007 2008 2009 2010 2011F 2012F 2004 2005 2006 2007 2008 2009 2010
operations: level
Relentless
playing 5
drive to
field and
2
GLIC/GLC become
exit non-core/
non-competitive
regional
roles in NEM
assets
champions
4
3
RM bn
111.6
120
91.2
Collaborate and Pursue new economy
100
co-invest with investments in line
private sector with NEM
80
60
50.9
40
nah’s
owth 20
31 Dec
31 Dec
0.4%
0
2010
14 May
2009
2004
4.1%
74.8
RM bn
80
39.1%
70
53.8
60
124.6%
6.5%
50
40
33.3
1.2%
30
20
10
31 Dec
31 Dec
0
2010
14 May
2009
2004
(20) (15) (10) (5) 0 5 10
(7.0%)
.7%)
MSCI
C World (3.7%)
glCs continue to show steady outperformance
Source: G-20 Financial Reports; Bloomberg; consensus estimates (as at 31 Dec 2011); PCG analysis
K-9 TSR
KLCI
Jakarta
Composite
Index
SE
ailand
Index
SENSEX
(11.9%)
3.6%)
.5%)
.4%)
3
Malaysia
90.0%
Stay the course in executing
the 10 year GLCT
Programme
Continue
focus on core
1
operations: level
Relentless
playing 5
drive to
field and
2
GLIC/GLC become
exit non-core/
non-competitive
regional
roles in NEM
assets
champions
4
3
Collaborate and Pursue new economy
co-invest with investments in line
private sector with NEM
Khazanah’s
NWA growth
0.4%
4.1%
6.5%
1.2%
MSCI
Emerging Markets
%
(7.0%)
(15.7%)
MSCI
AC World (3.7%)
Straits
Times Index
Shanghai
Composite Index
(11.9%)
(13.6%)
MSCI
Asia ex-Japan (14.4%)
(423858-X)
investments No. of transactions investment amount
(RM bn)
2004-2010 76 39.7
2011 13 5.8
TOTAL 89 45.5
Divestments No. of transactions Divestment gains on Divestments
Hang Seng Proceeds (RM bn) (RM bn)
(14.5%)
2004-2010 Index 37 24.0 11.6
2011 8 7.7
5 Total divestment proceeds of RM16.6bn including PLUS shares held indirectly via UEM Group Berhad
pending
(423858-X)
5 2.0
TOTAL 45 31.7 13.6
bn
.
x
x
x
22.8%
19.1%
+ RM57.2bn
+ RM36.7bn
10.2% p.a.
14.0%
(35) (30) (25) (20) (15) (10) (5) 0 5 10
10.4%
Utilities
10.8%
Source: Bloomberg; Khazanah analysis
05 2006 2007 2008 2009 2010 20115 GLCs
BENEFIT
ALL STAKE-
HOLDERS
national average for 2007, 2008 and
2009
+ RM57.2bn
+ RM36.7bn
10.2% p.a.
(20%) (10%) 0% 10% 20% 30% 40% 50%
GLCs
BENEFIT
ALL STAKE-
HOLDERS
COMMUNITY AND CSR CUSTOMERS
GLCs
BENEFIT
ALL STAKE-
HOLDERS
• ‘World's Leading Airline to Asia’
(20%) • (10%) The Curve 0% – ‘Best 10% Commercial 20% 30% 40% 50%
(33.5%)
Others
1.0%
Middle East
1.0% India
1.5%
190
100=14/5/04
(35) (30) (25) (20) (15) (10) (5) 0 5 10
Others
1.0%
Middle East
1.0% India
1.5%
China
• HSBB – Contracts to Bumiputeras >53%
by value
• 70% of procurement spend awarded to
Bumiputera vendors
31 Singapore Dec-11
4.9%
0.3
• 70% of procurement spend awarded to
Bumiputera vendors
(3.7)
directed to 60% (1.9) Bumi vendors
GLCs
BENEFIT
ALL STAKE-
HOLDERS
(1.7) (1.8)
(3.0)
3 Khazanah and GLC Transformation drivers
GLCs
BENEFIT
ALL STAKE-
HOLDERS
Stay the course in executing
the 10 year GLCT
Programme
Aggregate earnings have in
RM7.7bn and for K9 by RM5