TANJONG public limited company (990903-V)
QUARTERLY REPORT ON CONSOLIDATED RESULTS FOR THE FOURTH QUARTER
ENDED 31 JANUARY 2002
The figures have not been audited.
CONSOLIDATED INCOME STATEMENT
INDIVIDUAL QUARTER
PRECEDING
YEAR
CURRENT
CORRESYEAR
PONDING
QUARTER
QUARTER
31/01/2002
31/01/2001
RM'000
RM'000
1 (a) Revenue
CUMULATIVE QUARTER
PRECEDING
YEAR
CURRENT
CORRESYEAR
PONDING
TO DATE
PERIOD
31/01/2002
31/01/2001
RM'000
RM'000
511,938
554,923
2,098,842
2,092,674
488
1,880
7,247
7,400
3,623
4,365
13,585
16,259
147,098
139,158
521,072
507,511
(6,277)
(14,184)
(32,949)
(57,329)
(c) Depreciation and amortisation
(27,341)
(30,050)
(108,970)
(113,294)
(d) Exceptional items
(67,653)
(b) Investment income
(c) Other income
2 (a) Profit/(loss) before finance cost,
depreciation and amortisation,
exceptional items, income tax, minority
interests and extraordinary items
(b) Finance cost
(e) Profit/(loss) before income tax,
minority interests and extraordinary items
45,827
-
(67,653)
94,924
-
311,500
336,888
(f) Share of profits and losses of associated
companies
1,151
(g) Profit/(loss) before income tax, minority
interests and extraordinary items
46,978
94,206
311,588
334,718
(35,486)
(29,152)
(120,809)
(109,648)
11,492
65,054
190,779
225,070
(5,018)
(6,238)
(29,427)
(21,931)
6,474
58,816
161,352
203,139
-
-
-
-
-
-
-
-
6,474
58,816
161,352
203,139
(a) Basic (based on 2002: 380,354,980
(2001:378,750,961) ordinary shares) - (sen)
1.7
15.5
42.4
53.6
(b) Fully diluted (based on 2002: 380,634,607
(2001:380,500,485) ordinary shares) - (sen)
1.7
15.5
42.4
53.4
30.0
30.0
(h) Income tax
(i) (i) Profit/(loss) after income tax
before deducting minority interests
(ii) Less minority interests
(j) Net profit/(loss) from ordinary activities
attributable to members of the company
(k) (i) Extraordinary items
(ii) Less minority interests
(iii) Extraordinary items attributable to
members of the company
(l) Net profit/(loss) attributable
to members of the company
(718)
88
(2,170)
3 Earnings per share based on 2(l) above
after deducting any provision for
preference dividends, if any :-
4 (a) Dividend per share (sen)
(b) Dividend description
- Interim (8 sen)
-
Final (22 sen)
Page 1
Tax exempt
Tax exempt
Gross
Gross
TANJONG public limited company (990903-V)
QUARTERLY REPORT ON CONSOLIDATED RESULTS FOR THE FOURTH QUARTER
ENDED 31 JANUARY 2002
CONSOLIDATED BALANCE SHEET
AS AT
END OF
CURRENT
QUARTER
31/01/2002
RM'000
(Unaudited)
1
2
3
4
5
Property, plant and equipment *
Investment property
Investment in associated companies
Long term investments
Intangible assets
AS AT
PRECEDING
FINANCIAL
YEAR END
31/01/2001
RM'000
(Audited)
2,173,588
365,000
30,710
12,691
60,457
1,712,328
365,000
30,461
25,958
73,562
91,837
92,757
26,629
465,924
14,451
39,816
731,414
90,846
64,148
37,917
450,618
34,427
42,213
720,169
37,874
127,070
175,299
18,093
64,374
422,710
41,812
183,432
118,853
24,569
86,759
455,425
308,704
264,744
2,951,150
2,472,053
136,033
135,375
65,547
9,915
1,363,809
1,575,304
54,645
9,915
1,292,766
1,492,701
10 Minority interests
253,145
231,673
11 Long term borrowings
12 Other long term liabilities
13 Deferred taxation
970,960
5,604
146,137
186,400
450,226
111,053
2,951,150
2,472,053
3.97
3.74
6 Current Assets
Inventories
Trade receivables
Short term investments
Short term placements
Cash
Other debtors, deposits and prepayments
7 Current Liabilities
Trade payables
Other payables
Short term borrowings
Provision for taxation
Proposed dividend
8 Net Current Assets
9 Shareholders' funds
Share Capital
Reserves
Share premium
Revaluation reserve
Retained profit
14 Net tangible assets per share (RM)
* Included in property, plant and equipment is construction in progress amounting to
RM468.1 million (31.1.2001 - RM186.0 million)
Page 2
TANJONG public limited company (990903-V)
QUARTERLY REPORT ON CONSOLIDATED RESULTS FOR THE FOURTH QUARTER
ENDED 31 JANUARY 2002
NOTES
1.
Accounting policies
The quarterly financial statements have been prepared based on the accounting policies and
methods of computation consistent with those adopted in the annual audited accounts for the
year ended 31 January 2001.
2.
Exceptional item
An impairment provision of RM67.7 million has been made in the current quarter and financial
year to date pursuant to a review of the carrying value of the underlying fixed assets relating to
the Liquefied Petroleum Gas (“LPG”) investments in China.
3.
Extraordinary item
There was no extraordinary item for the current quarter and financial year to date.
4.
Taxation
Individual Quarter
31/1/2002
31/1/2001
RM'000
RM'000
Malaysian taxation
Income tax
- Current year
- Prior year
Deferred tax
Foreign taxation
21,153
(191)
20,962
14,475
35,437
49
35,486
21,524
21,524
7,631
29,155
(3)
29,152
Cumulative Quarter
31/1/2002
31/1/2001
RM'000
RM'000
84,854
(97)
84,757
35,366
120,123
686
120,809
79,400
193
79,593
29,876
109,469
179
109,648
The effective tax rates for current quarter and financial year to date are 75.5% and 38.8%
respectively. The variance between these rates and the statutory tax rate is mainly due to
impairment provision as discussed in Note 2, being not deductible for tax purposes and losses of
subsidiaries not available for relief at Group level.
5.
Profits/(losses) on sale of unquoted investments and/or properties
There were no disposals of unquoted investments and/or properties for the current quarter and
financial year to date.
Page 3
TANJONG public limited company (990903-V)
QUARTERLY REPORT ON CONSOLIDATED RESULTS FOR THE FOURTH QUARTER
ENDED 31 JANUARY 2002
6.
Quoted securities
(a) Summary of dealings in quoted securities for the current quarter and financial year
to date ended 31 January 2002:Individual Cumulative
Quarter
Quarter
(i) Total purchase consideration
(ii) Total sale proceeds
(iii) Total profit on disposal
RM'000
RM'000
544
1,809
262
5,159
23,637
6,123
(b) Investments in quoted securities as at the reporting period:
RM'000
At cost
At carrying value/book value; and
At market value
7.
33,327
26,629
31,817
Changes in the composition of the Group
On 4 February 2002, Tanjong Entertainment Sdn Bhd, a wholly-owned subsidiary of the
Company, acquired one ordinary share in Global Entertainment And Management Systems Sdn
Bhd (“GEMS”) presently representing one third of the issued share capital of GEMS. The
remaining shares are held in equal proportions by Golden Harvest Cinemas Holding Limited and
PPB Group Berhad pursuant to a joint venture between the parties to acquire a 25% equity
interest in Tanjong Golden Village Sdn Bhd for a total cash consideration of RM12.92 million.
Apart from the changes reported above and in the first quarter, there have been no other changes
in the composition of the Group for the financial year to date.
8(a).
Status of corporate proposals announced but not completed
(i) Powertek Berhad (“Powertek”), a subsidiary of Tanjong, had on 28 December 2001
announced on behalf of its wholly-owned subsidiary, Pahlawan Power Sdn Bhd
(“Pahlawan”), the proposed issue of RM450.0 million nominal value Al-Bai’ Bithaman Ajil
Islamic Debt Securities Facility (“BaIDS”) and RM100.0 million nominal value Murabahah
Commercial Papers (“MuCP”)/Medium Term Notes (“MTN”) Programme.
As at the date of this report, the aforementioned RM450.0 million BaIDS has been fully
issued while the RM100.0 million MuCP/MTN remains unissued.
(ii) The Company had on 20 February 2002 announced its proposal to amend certain clauses
and definitions in the Bye-Laws governing the Company’s Employees’ Share Option
Scheme No. 2. An application is to be submitted to the Securities Commission for its
approval within three months from the aforesaid date.
8(b).
Status of utilisation of proceeds raised from the corporate proposal
The proceeds of the BaIDS issued by Pahlawan, were mainly utilised to fully repay the amount
due to Tenaga Nasional Berhad (“TNB”) of RM444 million.
Page 4
TANJONG public limited company (990903-V)
QUARTERLY REPORT ON CONSOLIDATED RESULTS FOR THE FOURTH QUARTER
ENDED 31 JANUARY 2002
9.
Issuance of debt and equity securities
9.1
Debt Securities
The following debt securities were issued for the current financial year to date:
Applicable Interest/
Total Issued
Date of
Profit Margin
RM’000
Issuance
per annum
Unsecured
(a) Redeemable Bonds
350,000
29/8/01
5.50% to 6.80%
(b) Commercial Papers
(“CoP”)
Secured
(c) BaIDS
169,859
12/11/01 to
11/1/02
2.92% to 3.10%
450,000
31/1/02
5.05% to 6.90%
969,859
(a) The unsecured Redeemable Bonds of nominal value were issued by Powertek at par in
three tranches on 29 August 2001, with tenures between 5 to 10 years.
(b) These CoP with a nominal value of RM170 million were issued at a discount by Powertek
to advance to its wholly-owned subsidiary, Panglima Power Sdn Bhd (“Panglima”) to
finance the construction costs of its new power plant. These CoP are expected to be
refinanced with the issuance of debt securities by Panglima within the next financial year.
(c) BaIDS with a nominal value of RM450 million was issued by Pahlawan on 31 January
2002. Please refer to Note 8 for further details.
9.2
Issue of new shares
During the current period, 1,854,000 new shares in the Company were issued pursuant to
exercise of options for a total subscription amount of RM11.6 million by eligible employees
under the Company’s Employees’ Share Option Scheme No. 2.
Page 5
TANJONG public limited company (990903-V)
QUARTERLY REPORT ON CONSOLIDATED RESULTS FOR THE FOURTH QUARTER
ENDED 31 JANUARY 2002
10.
Group borrowings and debt securities
Short
Term
RM'000
Long
Term
RM'000
Total
RM’000
5,440
5,440
170,960
450,000
620,960
176,400
450,000
626,400
169,859
169,859
350,000
350,000
350,000
169,859
519,859
175,299
970,960
1,146,259
Secured
Syndicated loan
BaIDS
Unsecured
Redeemable Bonds
CoP
Total as at 31 January 2002
11.
Contingent liabilities
Pursuant to the Power Purchase Agreement signed between Panglima and TNB, liquidated
damages will be payable to TNB in the event Panglima fails to meet its scheduled Commercial
Operations Date (“COD”) for its new 460MW Open Cycle Gas Turbine (“OCGT”) power plant.
The OCGT power plant comprises two gas turbine units of 230MW each.
As at the date of this report, Panglima has achieved COD in respect of its first gas turbine unit.
Except as disclosed above, there is no contingent liability for the Group as at the date of this
report.
12.
Off balance sheet financial instruments
Powertek’s wholly-owned subsidiary, Panglima is obliged to make progressive payments in
EURO currency pursuant to the Engineering, Procurement and Construction Contract (“EPC
Contract’’) entered for the construction and development of the new 720 MW combined cycle
power plant. In this respect, Panglima has entered into forward contracts to hedge the above
progressive payments in EURO currency. These contracts are executed with large financial
institutions and are accounted for on a basis which is consistent with the accounting policies
adopted by the Group.
At the date of this report, the notional principal amount outstanding under the forward contracts
entered into by Panglima is RM348.9 million. These contracts have various maturity periods
straddling over the next twelve months to meet the payment obligations under the EPC Contract.
Page 6
TANJONG public limited company (990903-V)
QUARTERLY REPORT ON CONSOLIDATED RESULTS FOR THE FOURTH QUARTER
ENDED 31 JANUARY 2002
13.
Litigation
There is no pending material litigation since the last annual balance sheet date to the date of
issue of this quarterly report.
14.
Segmental results
Year ended
31 January 2002
Revenue
RM'000
Malaysia
NFO
Power Generation
Property Investment
RTO
People's Republic
of China
Liquefied Petroleum Gas
Segment totals
Inter-segment elimination
Non-segment operating
expenditure
Non-segment net assets
Net assets/
(liabilities)
RM'000
Revenue
RM'000
Operating
profit/(loss)
RM'000
Net assets/
(liabilities)
RM'000
1,397,501
191,835
(10,442)
1,478,116
175,196
(36,126)
588,690
229,301
1,123,196
533,463
229,819
990,592
39,316
24,429
184,033
33,286
20,501
161,596
9,600
(29,505)
44,568
6,919
(32,036)
52,957
2,035,107
416,060
1,341,355
2,051,784
393,480
1,169,019
72,137
(75,392)
6,080
48,853
(8,614)
80,200
2,107,244
340,668
1,347,435
2,100,637
384,866
1,249,219
(8,402)
(7,963)
(2,098)
(2,996)
481,014
Investment income
Provision for diminution
in value
Foreign exchange loss
Net interest expense
Interest income
Interest expense
2,098,842
15.
Operating
profit/(loss)
RM'000
Year ended
31 January 2001
475,155
7,247
7,400
(13,228)
(5,981)
(5,984)
1,416
(1,725)
(5,328)
13,585
(32,949)
(19,364)
16,259
(57,329)
(41,070)
311,500
1,828,449
2,092,674
336,888
1,724,374
Variation of current quarter’s profit before tax to preceding quarter
The current quarter’s profit before taxation of RM47.0 million is lower than the preceding
quarter’s RM117.6 million mainly because of the impairment provision of RM67.7 million
discussed in Note 2.
Page 7
TANJONG public limited company (990903-V)
QUARTERLY REPORT ON CONSOLIDATED RESULTS FOR THE FOURTH QUARTER
ENDED 31 JANUARY 2002
16.
Review of performance
16.1
Material factors affecting current quarter’s results
The current quarter’s profit before taxation of RM47.0 million is lower than the corresponding
quarter’s profit before taxation of RM94.2 million due mainly to the RM67.7 million
impairment provision referred to in Note 2.
16.2
Material factors affecting financial year to date results
Group turnover for the current financial year increased marginally to RM2,098.8 million from
the RM2,092.7 million reported in the previous financial year (“corresponding year”). Group
operating profit is, at RM311.5 million, lower by RM25.4 million.
Power Generation recorded a higher turnover of RM588.7 million against RM533.5 million for
the corresponding year on the back of increased energy billings by the Teluk Gong plant.
Operating profit for this segment was however lower by RM0.5 million due to higher
maintenance costs arising from plant inspections that were carried out in the first quarter of this
year.
The revision in Betting & Sweepstake Duties has led to an overall improvement in the operating
results for the Numbers Forecast Operations (“NFO”) and for the Racing Totalisator Operations
("RTO") segments during the current financial year. However, the NFO segment recorded a
lower turnover of RM1,397.5 million against RM1,478.1 million in the corresponding year due
to softer demand and four fewer draws.
Net interest expense is at RM19.4 million, significantly lower than the RM41.1 million in the
corresponding year, due to early repayment of a fixed rate term loan and amount due to TNB of
RM444 million during the financial year.
The RM67.7 million impairment provision relating to the LPG plants has been the major factor
in the overall reduction in profit attributable to shareholders from RM203.1 million to RM161.3
million and the consequent decrease in earnings per share from 53.6 sen to 42.4 sen in the
current financial year.
17.
Material subsequent events
Subsequent to the end of current quarter, Panglima has commenced commercial operations in
respect of the first gas turbine unit of its OCGT power plant.
18.
Seasonal / cyclical factors
The principal business operations of the Group were not materially affected by seasonal or
cyclical factors during the quarter under review.
19.
Current year prospects
The Board anticipates a satisfactory performance for the Group for the financial year ending 31
January 2003 with contributions from the NFO and Power Generation segments, barring
unforeseen circumstances.
20.
Profit forecast or profit guarantee
The Group did not issue any profit forecast or profit guarantee during the current period.
Page 8
TANJONG public limited company (990903-V)
QUARTERLY REPORT ON CONSOLIDATED RESULTS FOR THE FOURTH QUARTER
ENDED 31 JANUARY 2002
21.
Dividend
(a)
An interim dividend of 8.0 sen per share exempt from Malaysian income tax [2001 : 8.0
sen exempt from Malaysian income tax] in respect of the financial year ended 31
January 2002 amounting to RM30,467,291 [2001 : RM30,347,291] was paid on 11
December 2001.
(b)
The Directors are recommending a final gross dividend of 22.0 sen per share [2001 :
22.0 sen] less Malaysian income tax at 28% in respect of the financial year ended 31
January 2002 amounting to RM60,410,772 [2001 : RM60,192,338]. The proposed
dividend, if approved at the forthcoming Annual General Meeting, will be paid on 9
August 2002 to all shareholders on the record of the Company on 12 July 2002.
The Register of Members of the Company will be closed from 13 July 2002 to 16 July 2002
(both dates inclusive) for the purpose of determining each shareholder’s entitlement to the
dividend.
Each person whose name appears in the Register of Members or the Record of Depositors as at
the close of business on 12 July 2002 (the “Record Date”) shall be entitled to participate in the
dividend in respect of those shares of which they are registered as member or recorded as
depositor.
Registrable transfers received by the Company's Branch Registrars in Malaysia, Signet
Share Registration Services Sdn. Bhd. at 11th Floor, Tower Block, Kompleks
Antarabangsa, Jalan Sultan Ismail, 50250 Kuala Lumpur, Malaysia, or the Company's
Principal Registrars in the United Kingdom, Capita IRG Plc at Balfour House, 390/398
High Road, Ilford, Essex IG1 1NQ, England, up to the close of business at 5.00 p.m. (local
time) on 12 July 2002 will be registered by the Record Date.
A holder of a securities account maintained with the Malaysian Central Depository Sdn. Bhd.
(“Depositor”) shall qualify for entitlement only in respect of :(a)
shares deposited into the Depositor’s securities account before 12.30 p.m. (Malaysian
time) on 10 July 2002 (in respect of shares which are exempted from mandatory
deposit);
(b)
shares transferred into the Depositor's securities account before 12.30 p.m. (Malaysian
time) on 12 July 2002 in respect of ordinary transfers; and
(c)
shares bought on the Kuala Lumpur Stock Exchange on a cum entitlement basis
according to the Rules of the Kuala Lumpur Stock Exchange.
Any employee of the Company who has exercised, or wishes to exercise, an option to subscribe
for shares in the Company granted to such employee under the Tanjong public limited company
Employees’ Share Option Scheme No. 2 should note that the shares to be issued upon the
exercise of such option will not confer on any person any entitlement to the dividend unless as at
the Record Date such person is recorded as depositor of such shares under the Record of
Depositors.
By order of the Board
Siuagamy Ramasamy
Group Company Secretary
26 March 2002
Kuala Lumpur
Page 9