2 stQuarter Report of MTDC | 1 April - 30...2 nd2 stQuarter Report of MTDC | 1 April - 30 th Jun...

1 2nd

Quarter Report of MTDC | 1st

April - 30th

Jun 2011

1. Corporate Information

Name of the Company:

Maldives Tourism Development Corporation Plc Registered Address:

First Floor, G. Fathuru Vehi Buruzu Magu, Male’ 20124 Republic of Maldives Contact Details:

Phone: + 960 334 7766 Fax: + 960 334 7733 Email: [email protected] URL: www.mtdc.com.mv

Company Registration No:

C - 280/2006 Legal Form

Public Limited Liability Company, Incorporated in Maldives at the Ministry of Economic Development under the Company Law no. 10/96. Stock Exchange listing

Ordinary Shares listed on the Maldives Stock Exchange. Board of directors as at 30th June 2011

Name Position Representation

Mr. Ibrahim Saleem Director Non Executive Mr. Mohamed Mihad Acting Managing Director Executive Mr. Ismail Yasir Director Non Executive Mr. Hussein Thoufeeq Ali Director Non Executive Dr. Ahmed Shamheed Director Non Executive Mr. Mohamed Farshath Director Non Executive Mr. Shimad Ibrahim Director Non Executive Mr. Ibrahim Firushan Director Non Executive Mr. Mohamed Azmath Director Non Executive

Board of directors as at 15th June 2011

Name Position Representation

Mr. Ibrahim Saleem Chairman Non Executive Mr. Mohamed Mihad Managing Director Executive Mr. Ismail Yasir Director Non Executive Mr. Hussein Thoufeeq Ali Director Non Executive Mr. Ahmed Shamheed Director Non Executive Mr. Mohamed Saeed Director Non Executive Mr. Ismail Hameed Director Non Executive Mr. Mohamed Azmath Director Non Executive

Audit committee members as at 30th June 2011

Name Position

Mr. Shimad Ibrahim (Committee Chairman) Non Executive Director Dr. Ahmed Shamheed Non Executive Director Mr. Mohamed Azmath Non Executive Director Mr. Ibrahim Saleem Non Executive Director Mr. Ibrahim Firushan Non Executive Director

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Audit committee members as at 15th June 2011

Name Position

Mr. Ismail Hameed (Committee Chairman) Non Executive Director Dr. Ahmed Shamheed Non Executive Director Mr. Mohamed Azmath Non Executive Director Mr. Mohamed Saeed Non Executive Director Mr. Hussein Thoufeeq Ali Non Executive Director

Nomination and Remuneration committee members as at 30th June 2011

Name Position

Mr. Mohamed Farshath(Committee Chairman) Non Executive Director Mr. Ismail Yasir Non Executive Director Mr. Hussein Thoufeeq Ali Non Executive Director Dr. Ahmed Shamheed Non Executive Director Mr. Mohamed Azmath Non Executive Director

Nomination and Remuneration committee members as at 15th June 2011

Name Position

Mr. Hussein Thoufeeq Ali (Committee Chairman) Non Executive Director Mr. Ismail Yasir Non Executive Director Dr. Ahmed Shamheed Non Executive Director Mr. Mohamed Saeed Non Executive Director Mr. Mohamed Azmath Non Executive Director

Company Secretary (Acting)

Ms. Fathmath Thahany Shihab Appointed auditors of the company

KPMG Ford, Rodes, Thornton & Co 2A , H. Miyalani, Sosun Magu, Male, Maldives Details of any subsidiary, joint venture & associate companies

Company Name: ENA Hotel Holding Company Pvt Ltd

Address: 2nd floor, H. Aage, Boduthakurufaanu Magu, Male’, Maldives Ownership nature: Joint Venture % of MTDC Ownership: 20%

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2. About MTDC

Vision

MTDC envisions becoming the most efficient Public Limited Company in the Maldives, by leveraging its core competencies and financial strength to achieve the expectations of shareholders and stakeholders to enhance the macro and micro economic potentials of the tourism industry. Mission

MTDC’s Mission is to source diverse investments and efficiently deploy its resources to ensure that the investment yields the highest returns which will maximize the wealth of its shareholders. Today MTDC is actively engaged in the tourism industry. It is engaged in developing resort islands and aspires to turn the green islands into green resorts that would invite foreigners to relax, enjoy and create lasting memories. The core business of MTDC is coined in its mission statement without reference to any specific industry. Rather, it embraces and empowers MTDC to pursue the development of diverse investments. Core Purpose

The Core Purpose of MTDC is to give every Maldivian the chance to invest in things that will be rewarding. Armed with this conviction every staff of MTDC come to work every morning, and engage in dialogue with other counterparts. It is this belief that sparks debates and contests, and at the end of the day every staff wins out with a smile of reassurance that the Core Purpose of why they come to work every day will never be compromised. Core Values

The Core Values of MTDC which are vehemently held on by all staff and executives alike, which form the foundation on which the company conducts its business, are:- • Protecting the interest of shareholders at all times • Being open minded and transparent • Challenging the status-quo • Caring, respecting and recognizing individual ability • Being candid as a way of life Business Principles and Strategies

• Create an above market average dividend yield for shareholders to allow them to access the direct benefit of tourism quickly.

• Ensure that dividend policy and plans are sustainable in the long term while allowing for gradual growth.

• Build the organization around principles of getting the benefits of centralized knowledge flow and the efficiencies of decentralized operations.

• Monitor the market forces effectively to grasp changes in the market beforehand to create competitive advantages.

• Strategize business and asset development to diversify the risks related to the business.

• Diversify into horizontal unrelated markets to shelter the Company from any potential disasters in the industry.

• Diversify horizontally and vertically into related industries to attain higher efficiencies and reduce the cost of operation of core business.

• Create and sustain a knowledge based workforce with an innovation inductive environment to attain higher efficiencies.

• Challenge the norms of the industry to attain higher benefit both economically and socially.

• Always strive to attain the highest ethical standards in governance of the Company.

• Conform to the Corporate Governance Code of CMDA and listing rules and other relevant laws and regulations of Maldives.

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3. Highlights of Business Activities

Holding MTDC Annual General Meeting 2010

MTDC held its Annual General Meeting for the year 2010 on the 15th of July 2011at 9:00PM at the Main Hall of Islamic Center. Temporary Shutdown of Operations at Herathera Island Resort

As part of the rebranding process of Herathera Island Resort to Amari Addu Maldives, the resort had been closed from 14th June 2011 to undertake renovation and upgrading works. The renovation and upgrade project is scheduled to be completed by end of July 2011 and normal operations of the resort will resume on the 1st August 2011. The major works carried out under the renovation and upgrade project at Herathera Island Resort includes beach replenishment work, upgrade of the guest arrival jetty and guest rooms. Issuance of Commercial Papers

• On 9th May 2011 issued a commercial paper of US$3 million (United States Dollar Three Million) to State Trading Organization Plc (STO) at the interest rate of 5.39% per annum for a period of 3 months for meeting the general corporate purposes

• On 25th May 2011 Issued a commercial paper of Rf10 million (Maldivian Ten million Rufiyaa) to Allied Insurance Company of the Maldives Pvt Ltd at the interest rate of 7% per annum for a period of 12 months for meeting the general corporate purposes

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4. Status of Ongoing Resort Development Projects

ULIGAM

Location: Haa Alifu Atoll; 45-minute speedboat ride from HDh Hanimaadhoo Regional Airport Status: approx. 40% complete Development Mode: Wholly owned Details: 4-star, 100 beds over 36 hectares plot of land in HDh. Uligamu Island VODAMULAA

Location: Gaafu Alifu Atoll; 50-minute speedboat ride from GDh Kaadedhoo Regional Airport Status: Under development Development Mode: Joint Venture Partnership with between MTDC and Coasteast Investments Pte Ltd Details: 4-star, 300 beds over 50 hectares EKULHIVARU

Location: Noonu Atoll Status: Under development Development Mode: Joint venture Partnership between MTDC and Ritz Carlton Group Details: Deluxe, 180 beds Expected date of completion: Second Quarter of 2013 KIHIVAH HURAVALHI

Location: Baa Atoll Status: Under Operation from February 2011 onwards Development Mode: Sublease Details: 5-star deluxe, 156 beds KONDEYMATHEELAABADH

Location: Gaafu Alifu Atoll Status: Conceptual development complete Development Mode: Sublease Details: 100 beds MAGUDHUVAA

Location: Gaafu Dhaalu Atoll Status: Under development, 90% complete Development Mode: Sublease Available Details: 5-star, 200 beds Expected date of completion: Fourth Quarter of 2011 NAAGOASHI

Location: Haa Dhaalu Atoll Status: Under development, 50% complete Development Mode: Sublease Available Details: 5-star, 600 beds Expected date of completion: Fourth Quarter of 2012 EMBUDHUFUSHI AND OLHUVELI

Location: Dhaalu Atoll Status: Under development, 35% complete Development Mode: Sublease Available Details: 5-star deluxe, 220 beds Expected date of completion: Fourth Quarter of 2011

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Jun 2011

5. Employment data

MTDC Head Office number of staffs: April 2011 – 17 employees May 2011 – 17 employees June 2011 – 17 employees

Mr. Hassan Shameem (Project Director) resigned from MTDC on the 17th of May 2011.

6. Board Meetings held and Attendees

Name Position Attendance

Mr. Ibrahim Saleem Director 4/4

Mr. Mohamed Mihad Director 4/4

Mr. Hussain Thoufeeq Ali Director 4/4

Mr. Ismail Yasir Director 4/4

Mr. Mohamed Azmath Director 4/4

Mr. Ismail Hameed Director 3/3

Dr. Ahmed Shamheed Director 3/3

Mr. Mohamed Saeed Director 1/3

Mr. Shimad Ibrahim Director 1/1

Mr. Ibrahim Firushan Director 1/1

Mr. Mohamed Farshath Director 1/1

Number of Board Directors: 9 Required Quorum: 5 7. Audit Committee Meetings held and Attendees


Mr. Shimad Ibrahim Chairman 1/1



Mr. Ibrahim Firushan Director 1/1

Mr. Ibrahim Saleem Director 1/1

Number of Committee members: 5 Required Quorum: 3

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8. Nomination and Remuneration Committee Meetings held and Attendees


Mr. Mohamed Farshath Chairman 2/2



Mr. Hussain Thoufeeq Ali Director 2/2

Mr. Ismail Yasir Director 2/2 Number of Committee members: 5 Required Quorum: 3 9. Share Trading History

Market Highlights for the Quarter

� Highest Traded Price - MRF 125

� Lowest Traded Price - MRF 118

� Weighted Average Traded Price – MRF 121

� Market Capitalization – MRF 370,988,578

� Price Earnings Ratio – 29.44

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Jun 2011

10. Corporate Governance Compliance

- MTDC strives to adhere to the highest principles of Corporate Governance by establishing standards and systems that promotes transparency, accountability, integrity and fairness at all levels and in all spheres of its operations.

- Relevant information on company business operations had been provided to shareholders on a timely basis in the form of press releases and media press conferences (TV & Radio interviews).

- All fees and taxes had been paid to date to relevant authorities in compliance with the Companies

Act as well as other relevant regulations and acts. - Although an extension of 15 days (i.e. deadline of 15th May 2011) was given by CMDA to all public listed companies as a due date for the publication of the 2010 Annual Report and Financial Statements vide CMDA Circular Ref. No: 179-4.1/CIR/2011/14 (Dated: 03 May 2011), the Maldives Stock Exchange Company Pvt. Ltd. (MSE) had fined MTDC for 14 days (at the rate of 500 per day amounting MRF7000) for late publishing of 2010 Annual Report and Financial Statements.

MTDC published its 2010 Annual Report and Financial Statements on the 15th of May 2011 within the deadline/extension period granted by CMDA for all public listed companies, for the publication of 2010 Annual Report and Financial Statements. MTDC had paid the MSE imposed fine payment of MRF 7000 within the MSE stipulated payment period.

- This quarterly report of MTDC is compiled with the relevant information to ensure that MTDC meets with the Minimum Quarterly Reporting Requirements/Standards for public listed companies.

11. Brief of Board and Circular Resolutions Passed

1. 111th Board Meeting Board Resolution: 10th April 2011: Passing of Herathera Island Resort Budget 2011

2. 111th Board Meeting Board Resolution: 10th April 2011: Addendum to Joint Venture Agreement between MTDC and Coasteast Investments for development of GA. Vodamulaa

3. Circular Board Resolution: 12th April 2011: Authorizing Herathera Resort personnel to draw payments from given accounts

4. Circular Board Resolution: 26th April 2011: MTDC registration for Internet Banking

5. 112th Board Meeting Board Resolution: 8th May 2011: resolved that directors who had applied to contend for the directorship positions of MTDC are eligible to contend for directorship position at the 2010 Annual General Meeting.

6. Circular Board Resolution: 9th May 2011: to issue fixed term promissory notes and corporate bonds to State Trading Organization PLC (STO)

7. Circular Board Resolution: 15th May 2011: approval of audited financial statements for the year 2010

8. Circular Board Resolution: 15th May 2011: approval of annual report 2010

9. Circular Board Resolution: 25th May 2011: to issue fixed term promissory notes and corporate bonds to Allied Insurance Company

10. 114th Board Meeting Board Resolution: 27th June 2011: appointment of Acting Managing Director, Board Committees: Audit Committee, Nomination and Remuneration Committee, Tender Evaluation Committee, Directors to ENA Hotel Holding Company and appointment of acting company secretary

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Jun 2011

MALDIVES TOURISM DEVELOPMENT CORPORATION PLC

INTERIM FINANCIAL STATEMENTS

QUARTER ENDED

30 June 2011

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April - 30th

Jun 2011

Maldives Tourism Development Corporation Plc

INCOME STATEMENT Provisional financial statements

Quarter ended 30 June 2011

Quarter ended Quarter ended

30.06.2011 31.03.2011

Rf Rf

Revenue 55,077,817 55,077,817

Cost of sales (32,297,385) (32,297,385)

Gross profit 22,780,432 22,780,432

Other income/ (Loss) 2,771,502 17,463,108

Selling and distribution costs (159,626) (510,695)

Administrative expenses (9,715,179) (11,409,101)

Operating profit 15,677,129 28,323,744

Finance revenue 3,859,637 3,715,515

Finance cost (9,077,802) (8,546,196)

Profit for the period 10,458,964 23,493,064

Earnings per share 4.11 9.23

Note: The above figures are subject to audit.

The provisional financial statements have been prepared on the basis of same accounting policies

and methods applied for the year ended 31 December 2010.

18 July 2011

Male'

11 2nd


April - 30th

Jun 2011


STATEMENT OF THE FINANCIAL POSITION Provisional financial statements

As at 30 June 2011

As at As at

30.06.2011 31.03.2011

Rf Rf

Assets

Non-current assets

Property, plant and equipment

107,239,445

101,360,994

Investment property

884,162,862

874,356,009

991,402,307

975,717,003

Current assets

Trade and other receivables

724,026,426

673,237,732

Inventories

7,750,025

7,245,672

Cash and bank balances

228,048,678

233,985,644

959,825,130

914,469,048

Total assets

1,951,227,437

1,890,186,051

Equity and liabilities

Equity attributable to equity-

Share capital

259,446,622

256,787,728

Revaluation reserve

155,776,213

155,776,213

Share premium

29,868,972

29,868,972

Accumulated Profit

113,109,493

102,650,529

Total equity

558,201,300

545,083,442

Non-current liabilities

Interest bearing borrowings

235,264,975

239,802,225

Current liabilities

Interest bearing borrowings

14,389,251

9,852,001

Trade and other payables

968,650,086

902,760,723

Bank overdraft

174,721,825

192,687,659

1,157,761,162

1,105,300,384

Total equity and liabilities

1,951,227,437

1,890,186,051




18 July 2011

12 2nd


April - 30th

Jun 2011


CASH FLOW STATEMENT Provisional financial statements

Quarter ended 30 June 2011

As at As at

30.06.2011 31.03.2011

Rf Rf

Operating activities

Profit for the period 10,458,964 23,493,064

Adjustments to reconcile profit to net cash flows

Non-Cash

Depreciation 46,819 51,385

Amortization of intangible assets 60 1,866

Interest income (3,859,637) (3,715,515)

Finance cost 9,077,802 8,546,196

Capitalisation of lease rent 2,658,894 2,215,745

Working capital adjustments

Decrease/(Increase) in inventories (504,353) 743,563

Increase in trade and other receivable (50,788,694) (43,515,795)

(Decrease)/Increase trade and other payable 75,073,685 11,964,757

Net cash (used)/from operating activities 42,163,540 (214,735)

Investing activities

Purchase of property, plant and equipment (5,925,270) (5,031,647)

Addition for investment property (9,806,853) (556,009)

Share issue expenses - -

Payment of dividend (905,410) (845,320)

Interest received (3,859,637) 3,715,515

Net cash used in investing activities (20,497,171) (2,717,460)

Financing activities

Proceeds from issuance of share capital - -

Repayment of interest bearing borrowings - -

Interest paid (9,637,500) (8,546,196)

Net cash from/(used) financing activities (9,637,500) (8,546,196)

Net (Decrease)/ increase in cash and cash equivalents 12,028,869 (11,478,391)

Cash and cash equivalents at the beginning of the period 41,297,985 52,776,375

Cash and cash equivalents at end of period 53,326,853 41,297,985




18 July 2011

Male'

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