annual report - Tenaga Nasional Berhad

InvestmentManagementDato’ Nik Ibrahimbin Nik MohamedVice PresidentDivisional GoalsThe Investment Management Division manages an extensiveportfolio of equity investments of the Company and the Groupwith the objective of ensuring positive value addition to TNBGroup as a whole. The Division is currently monitoring equityinvestments in 68 subsidiaries and associate companies andother long-term investments in core and non-core businesseswith a market value of approximately RM4.949 billion.Operational SummaryThe Division assumes the role of setting strategic directionfor the subsidiaries and streamlining their operations withinthe Group. It also formulates long term and short terminvestment strategies for the equity investments within theGroup. The Division also plays the leading role in overseeingand monitoring the performances of the 68 companieswhile administratively overseeing 10 subsidiaries involvedin such sectors as manufacturing, services and consultancy,education, mining and utility. 83% of these companies arelocally registered.Management of Major Equity InvestmentAmong the subsidiaries in which TNB has equity participationand which are under the management of the Division arehighlighted below:[ Tenaga Nasional Berhad ] [ Annual Report 2008 ]861. Malaysia Transformer Manufacturing Sdn. Bhd. (MTM)Malaysia Transformer Manufacturing Sdn. Bhd. (MTM)became a wholly-owned subsidiary of the Group followingthe successfully acquisition of 27 percent of its equity byTNB from ABB in 2007. MTM continues to maintain itsidentity to leverage on its long history in the region, whilestrengthening its corporate governance and improving itsbusiness orientation.MTM’s strategy is to maintain its leading role as a manufacturerof transformers such as Distribution System Transformers from300 kVA to 3000 kVA 11 kV to 33 kV, and Transmission SystemTransformers from 7.5 to 90 MVA 33 kV to 132 kV and to increaseits presence as a service provider in Remanufacturing andTransformer Life Management Services and Project, Installation,Testing and Commissioning in Malaysia and the region.The company’s turnover rose by 17.8% to RM227.0 millionand contributes a profit after tax of RM21.8 million, attributedmainly to the increase in demand for Distribution SystemTransformers from 300 kVA to 3000 kVA 11 kV to 33 kV.