tanjong plc -investor kit

Investor Briefingwww.tanjongplc.com

2

Group Corporate Matters

Key corporate metrics

Rewarding Our Shareholders

Power GenerationGaming

Core Businesses

Group OverviewCorporate Structure

Leisure

TANJONGpublic limited company

Group revenue & EBITDA

Contents Index

Balance sheet

Shareholders’ Profile

3

TANJONG PLC

Tanjong Asset Holdings

Impian Klasik Sdn BhdProperty

Investment

GamingPower Generation Property

67%

Tanjong Entertainment Sdn Bhd

TGV Cinemas Sdn Bhd

Film exhibition

100%75%

Tanjong Power Holdings Sdn Bhd

Tanjong Energy Holdings Sdn Bhd

Powertek Bhd

Power Generation

100%

100%

Taweelah Asia

Power CoPower

Generation & Water

Desalination

10%

100%

PMP Sdn Bhd NFO & RTO

Kuasa Nusajaya

(L) LtdPower

Generation

Pendekar Energy (L) LtdPower

Generation

100% 55%

Leisure

Tropical Islands S.ar.l

Tropical Islands

TANJONGpublic limited companyGroup Overview Corporate Structure

4

Power GenerationPower Generation

Leveraging on our core strengths to maintain growth momentum

Core Business TANJONGpublic limited company

5

1,087 1,057 1,074 1,333 1,365

625 662 674 708 108

712 725

387 683 775 794 1,050 595 898 987

1,042 1,299

0

400

800

1,200

1,600

2,000

2,400

2,800

3,200

2006 2007 2008 2009 2010*Turn

over

& E

BIT

(RM

mill

ion)

PEL Egypt Malaysia EBIT EBITDA

Our PerformanceOur Performance

Core Business Power Generation TANJONGpublic limited company

2006 2007 2008 2009 2010*

Net Generating Capacity (MW)

1,490 1,490 3,055 3,951 3,951

Export Energy (GWh)

7,612 14,846 15,974 26,000 25,600

Weighted Ave. Availability (%)

90.4 92.3 88.4 92.8 n/a

*Annualised from 1st half results

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Our PerformanceOur PerformanceInitial success in Malaysia1993 440 MW Open Cycle Gas Turbine Plant – fast track completion 13 months to 1995

1999 Acquired 330 MW Combined Cycle Gas Turbine from Tenaga

Build, own & operate 720 MW Combined Cycle Gas Turbine plant on a fast track basis

2nd largest IPP in Malaysia with total generating capacity of 1,490 MW

Going International

2005 Acquired a 10% stake in the 2000 MW and 160 MIGD Taweelah B IWPP in Abu Dhabi

2006 Acquired 2 thermal power plants in Egypt with a combined generating capacity of 1365 MW

2007 Acquisition of 896 MW interest in 7 plants in Egypt, Bangladesh, Pakistan & Sri Lanka.

The Group’s effective power generating capacity has more than doubled to 3,951 MW over the last 3 years and water desalination capacity of 16 MIGD.

2001-2003


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Where are we?

Company Location Name Effective Stake PPA Expiry Net/Effective

CapacityEBIT (RM million)

2008 2009

Powertek Bhd Malaysia PowertekPahlawanPanglima

100%100%100%

201620202023

440 MW330 MW720 MW

431 253

Kuasa Nusajaya Ltd

Port SaidSuez Gulf

100%100%

20232023

683 MW683 MW

294 291

Pendekar Energy Ltd

EgyptBangladeshBangladeshBangladesh

PakistanSri LankaSri Lanka

Sidi KrirMeghnaghat

HaripurNEPC

KabirwalaAce HoranaAce Matara

55%55%55%28%23%16%16%

2022202420232014202920122012

375 MW248 MW198 MW30 MW36 MW4 MW4 MW

55 312

Pendekar Power (L) Ltd

Abu Dhabi Taweelah B 10% 2028 200 MW13 19

Total 3951 MW 793 875


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Core Business Power Generation

Strategic ObjectivesStrategic Objectives


> Strategies

• To develop Tanjong Energy Holdings (TEH) as a global brand

• To build a balanced asset portfolio through a combination of M&A and Greenfield in both developed and developing countries, paying due regard to the business cycle

• To invest in contracted assets and mature merchant markets

• To form strategic alliances with reputable equity and EPC partners, and to enhance relationship with OEMs and financiers.

• To enhance the value of existing and future assets through:1. Financial & technical engineering2. Emission Trading Schemes3. Appropriate vertical integration

• To restructure O&M as a separate business.

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Our Core CompetenciesOur Core Competencies

GreenfieldDevelopments Operations Mergers &

Acquisitions< >• Teluk Gong (Malaysia)• Panglima (Malaysia)• Taweelah B Extension

(Abu Dhabi)

• Least Cost Operator• Availability• Risk Management• Knowledge Management• Commercial Contractual

Skills• Cultural Diversity• Own O&M work with smart

partnership (Fortum, E.ON)

• Pahlawan (Malaysia)• Suez Gulf (Egypt)• Port Said (Egypt)• Sidi Krir (Egypt)• Meghnaghat (Bangladesh)• Haripur (Bangladesh)• NEPC (Bangladesh)• Kabirwala (Pakistan)• Ace Horana (Sri Lanka)• Ace Matara (Sri Lanka)• Taweelah B (Abu Dhabi)

Financing

• Non-recourse Debt

• Prudent Capital Structure

Core Business TANJONGpublic limited companyPower Generation

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InternationalInternational OpportunitiesOpportunities

Country Power Strategy

Where?Where? How much?How much?Risk/ReturnsRisk/Returns

How?How? End GameEnd Game

Regions with attractive long term contracted cash flows & abundant fossil fuel reserves

Greenfield: • Asia Pacific• MENA• South Asia

• Greenfield development and M&A

• Renewable• Leverage on core

competencies- Generation- O&M

• Risk/return paradigm• Plant size• Level of control

• PPA / fuel preference• Velocity of returns• O & M philosophy

• Portfolio strategy: diverse tenures, energy sources & risk/reward profiles in markets with stable and regulated returns

• Ultimately self sustaining cash flows

Core Business TANJONGpublic limited companyPower Generation

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GamingGaming

www.damacai.com.my

Continuing with leadership in innovation, branding and product appeal

Core Business TANJONGpublic limited company

Continuing with leadership in innovation, branding and product appeal

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NFO NFO -- PerformancePerformance

Core Business TANJONGpublic limited companyGaming

1,925 1,993 2,026 1,990

2,087

215.0 173.0 243.0 244.0 320.0

0

400

800

1,200

1,600

2,000

2,400

2006 2007 2008 2009 2010*Reve

nue

& EB

ITDA

(RM

'm)

Financial YearTurnover EBITDA

2006 2007 2008 2009 2010*

Turnover per normal draw (RM)

10.7 11.1 11.5 12.2 11.2

Payout Ratio (%) 64.6 68.7 65.1 64.6 61.8


13

BST

Magnum

PMP

NFO Market Share

• Top line CAGR of 3% since FY2005• BToto’s introduction of new jackpot product in 2007 has enabled it to increase its market share over PMP

& Magnum• Significant changes to FY2009 and 1QFY10 market share resulting mainly from timing difference of

special draws.

* source from Bursa Malaysia announcements PMP & BST Feb-Jan, Magnum Jan-Dec

NFO NFO –– Competitive LandscapeCompetitive Landscape


39.1% 38.8% 40.3% 43.7% 40.8%

36.7% 37.4% 36.4% 34.5% 36.2%

24.2% 23.8% 23.3% 21.8% 23.0%

0%

20%

40%

60%

80%

100%

FY2006 FY2007 FY2008 FY 2009 1QFY10

14

NFO NFO –– The Real CompetitionThe Real Competition

NFO Marketby number of outlets

PMP(343)

Magnum(485) BToto

(681)

OthersUnauthorised

Operators

• Split between the legal and illegal NFO market is now believed to be 55:45

• There is considerable opportunity in garnering market share from the unauthorised operators


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• Branding exercise to promote in the market place

• Operator incentives

• transformation program

• Special draws?

• New products and more outlets?

• Mergers, acquisitions & strategic alliances to diversify our risks?

NFO NFO –– Strategic InitiativesStrategic Initiatives


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Tropical IslandsTropical Islands

www.my-tropical-islands.com

Completing the product & reaching for a wider market

Core Business TANJONGpublic limited companyLeisure

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97 67

103 141

163

-45 -34

-23

1.7

32

(69.0)

(59.0) (59.0)

(34.0)

(2.4)

-70

-20

30

80

130

180

2006 2007 2008 2009 2010*

Reve

nue &

EBI

TDA

(RM

'm)

Financial YearTurnover EBITDA EBIT

Tropical Islands Tropical Islands -- PerformancePerformance

Core Business Leisure TANJONGpublic limited company

2006 2007 2008 2009 2010*

Average visitors per day

2,458 1,404 1,893 2,280 2,751

Average spend per visitor (€)

24.4 30.0 31.7 34.2 34.8

*Annualised from 1st quarter results

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Tropical Rainforest− 20,000 plants, more than 500 species, almost 1 km jungle path

Tropical Village− Authentic houses from 6 tropical countries, a colourful marketplace and the

Wayang stage

Paradise Beach− The world’s biggest indoor beach: 8,000m2 of white sand for fun and sports

South Sea− 140 meters long, 4,000m2 of water surface, 28oC warm

Bali Lagoon− 32oC water, water slides, whirlpools, waterfall

Phase 1 – Existing Attractions



Core Business Leisure

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Germany’s tallest water slide− 25-meter high water slide tower featuring 4 different water slides from a

leisure slide to a high-speed power slide reaching speeds of up to 70km/h

Jungle Wellness− The Rainforest will form the backdrop for six different wellness areas

Beach and Kid’s Paddling Pool− More relaxation areas and a kid’s paddling pool will allow visitors to keep an

eye on their children while at the beach

Tropical Shopping Mile− A street offering merchandise bargains

The Food Experience− A brand new food experience at Tropical Village ranging from Street Food

around the world to a Polynesian Barbecue

Themed Children’s Play Area− 4,000m2 Kid’s Paradise - a push go-kart track, adventure playground, power

paddling boat lake, ball arena and eight trampolines

Phase 2 – Completing the Product

TANJONGpublic limited companyCore Business


Leisure

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MapMap (Phase 1 & 2)(Phase 1 & 2)

new

new

new

Foyer & Shopping Boulevard Bali Lagoon Tropical

Village

South Sea & Paradise Beach

Rainforest

Children’s Play Area

Water Slides

Rainforest Wellness Complex

Kids’ Paddling Pool

Camping Ground



LeisureCore Business

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Phase 3 – Optimising the Potential of the Project



Leisure

Internal:120 tents (356 beds)

14 “Asiana” lodges (28 beds)

External :Caravan parks

HotelsPartner Hotels

Current onsite accommodation

Core Business Leisure TANJONGpublic limited company


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23



Leisure

Developer• Responsible for development of 375

homes by Dec 2011(Stage 1)• Largest Developer of holiday homes

in Denmark & Northern Germany. Has 14 year track record, over 7000 homes built.

• Has 2 manufacturing plants in Denmark & Germany

Marketer• Responsible for marketing of rental of

homes & provide ancillary services• Largest vacation homes marketer in

Southern Europe• Part of RCI Group world No 1

Vacation Exchange Network with 3.4 million members, owned by Wyndham Worldwide Group

Our partnersOur partners

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Leisure

Going forwardGoing forward

Need to fully utilise Dome capacity of 7000 visitors/day (5000 p.o.g.) • Current :900K p.a. or 2300/day• With 375 homes/lodges: 1300K p.a. or 3600/day

Options being considered to increase accommodation• Additional 1525 homes – assuming full use of land• Hotels:

200 room MICE hotel (3 star)150 rooms budget hotel (1 star)

Potential for additional leisure facilities to complement current offerings (restaurants, cinemas, sports & recreation facilities, etc.)Potential tie ups with other leisure industry players & investors.

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Corporate Information

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Group Revenue TANJONGpublic limited company

67 103 208 301 1,087

1,682 1,844

2,718 2,799698

636 724

715 795

0400800

1,2001,6002,0002,4002,8003,2003,6004,0004,400

2006 2007 2008 2009 2010*

(RM'm)

TI & TGV Power Generation Gaming

1,882

2,3852,671

3,6413,895

97

Group Overview


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Group EBITDA TANJONGpublic limited companyGroup Overview

(34) (23)

12 50

595 898

987 1,042

1,299

204

159 239 222

261

-100

300

700

1,100

1,500

1,900

2006 2007 2008 2009 2010*

(RM'm)

TI & TGV Power Generation Gaming

754

1,023

1,203 1,276

1,610

(45)


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Group Overview Balance Sheet TANJONGpublic limited company

Balance Sheet Summary as at 1HFY10 (RM mil)

Debt Power Others Group RM Others

Fixed 1,396 75 1,471 1,210 261

Floating 4,036 351 4,387 305 4,082

5,432 426 5,858 1,515 4,343

Cash/Liquid Resources (1,578) (482) (2,060)

Net Debt 3,854 (56) 3,798

Equity 3,746

Gearing (x) - 1.0

Assumed Debt Capacity 2,000 Gearing of

1.5x

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Key Corporate Metrics as at FY09

2009 2008 2007 2006 2005

Return on Equity (%) 14.1 17.1 16.7 14.0 17.4

Return on Total Assets (%) 10.2 9.9 12.3 10.0 12.0

Interest Cover (x) 2.3 3.3 3.2 4.4 5.0

Net Tangible Assets per Share (RM)

7.96 8.06 7.81 7.11 5.88

Net Debt to Equity (x) 1.36 1.27 0.84 0.19 0.33

Free Cash Flow per Share (RM) 2.09 1.72 1.70 1.15 1.33

Gross Dividend per Share (RM) 90.0 90.0 82.0 70.0 70.0

Dividend Yield (%)* 6.3 5.2 6.0 5.0 5.5

* Based on gross dividend expressed as a percentage of the weighted average share price during the financial year

Group Overview Key Corporate Metrics

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MalaysianUsaha Tegas Sdn. Bhd. 31%Ultimate Corporation Sdn. Bhd. 8%Others 24%

[Shareholder analysis as at 31 July 2009]

ShareholdersShareholders’’ ProfileProfile

Free Float of 56%

Malaysian63%

Foreign37%

Group Corporate Matters TANJONGpublic limited companyCorporate Information

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Distribution to Shareholders

Group Corporate Matters TANJONGpublic limited companyCorporate Information

48 48 56 7018

22 34 34 20

0

93

126138

115

48

20406080

100120140

2006 2007 2008 2009 1QFY10

Sen

Financial Year

Interim dividend Final dividend Basic EPS

Dividend policy

“The Group has adopted a progressive dividend policy that seeks to achieve a balance between long-term capital growth and immediate cash returns to shareholders. As such, it will maintain an attractive payout ratio, while conserving adequate funds to enable us to pursue new investment opportunities vital to our long-term growth.”

Rewarding our shareholdersRewarding our shareholdersDividend Analysis

2006 2007 2008 2009Gross Payout 75% 65% 66% 78%Gross Yield 5.0% 6.0% 5.2% 6.3%

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20042004Asia’s Best Companies Poll> No 1 in Asia “Most Transparent Accounts”

> No 1 in Asia “Most Accessible Senior Management”

> No 1 in Asia “Best Treatment of Minority Shareholders”

> No 4 in Asia “Most Useful & Informative Website”

20082008

2005 & 20042005 & 2004Asia Equities Market Report - Best Investor Relations> No 1 in Asia in the Hotels, Restaurants & Leisure Sector

Best Corporate Governance PollMalaysia

> No 1 “Best Investor Relations” in Malaysia

> No 1 “Best Investor Relations Officer” in Malaysia

> No 2 “Overall Best Corporate Governance” in Malaysia

2005 & 20042005 & 2004

Global Emerging Markets Corporate Governance Rankings> No 1 in Malaysia

20062006Asia’s Best Companies Poll - Malaysia> No 1 “Best Investor Relations”

> No 4 “Best Corporate Governance”

> No 5 “Overall Best Managed Company”

> No 5 “Best Commitment to Strong Dividend Payments”

20082008Asia’s Best Companies Poll - Malaysia> No 4 “Most Commitment to Strong Dividend Policy”

> No 6 “Best Investor Relations”

Group Corporate Matters TANJONGpublic limited companyAwards & Accolades

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Thank You


tanjong plc -investor kit

Documents

mw acquisition

core competencies generation

mw ebit rm

pendekar power

core strengths

core businesswhere

thermal power plants

groups effective power