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YTLCORPORATIONBERHAD 92647-H


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annal report

2010

Contents

Corporate Review2 Financial Highlights

4 Chairmans Statement

10 Managing Directors Review

12 Operations Review

42 Corporate Events

50 Notice o Annual General Meeting

53 Statement Accompanying

Notice o Annual General Meeting

54 Corporate Inormation

55 Prole o the Board o Directors

59 Statement o Directors Responsibilities

60 Audit Committee Report

64 Statement on Corporate Governance

68 Statement on Internal Control

71 Analysis o Shareholdings

73 Statement o Directors Interests

78 Schedule o Share Buy-Back

79 List o Properties

Financial Statements82 Directors Report

95 Statement by Directors

95 Statutory Declaration

96 Independent Auditors Report

98 Income Statements

99 Balance Sheets

101 Consolidated Statement o

Changes in Equity

105 Statement o Changes in Equity

106 Cash Flow Statements

109 Notes to the Financial Statements

Form o Proxy


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Financial Hihlihts

2010 2009 2008 2007 2006*

Revenue (RM000) 16,505,033 8,892,125 6,549,860 6,015,309 5,496,373

Prot Beore Taxation (RM000) 2,284,050 2,288,197 1,829,842 1,555,744 1,469,954

Prot Ater Taxation (RM000) 1,624,738 1,401,615 1,376,487 1,340,308 1,190,428

Prot or the Year Attributable to

Equity Holders o the Company (RM000)

849,811 834,472 769,786 701,371 698,009

Total Equity Attributable to

Equity Holders o the Company (RM000)

9,723,922 9,447,165 7,714,420 7,396,831 6,814,678

Earnings per Share (Sen) 47.56 54.10 51.54 47.72 49.39

Dividend per Share (Sen) 7.5 2.5 25 25 7.5

Total Assets (RM000) 46,153,855 45,413,832 38,458,561 33,912,520 30,370,822

Net Assets per Share (RM) 5.42 5.37 5.16 4.91 4.74

Profit BeforeTaxation(RM000)

Profit AfterTaxation(RM000)

Revenue(RM000)

06 07 100908 06 07 10090806 07 100908 06 07 100908 06 07 100908

5,4

96,

373

6,

015,

309

6,

549,

860

8,

892,

125

16,

505,

033

1,

469,

954

1,

555,

744

1,

829,

842

2,

288,

197

2,2

84,0

50

1,

190,

428

1,

340,

308

1,

376,

487

1,

401,

615

1,

624,

738

2 YTL Corporation Berhad annual report 2010


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Profit for the YearAttributable toEquity Holders ofthe Company(RM000)

Total EquityAttributable toEquity Holders ofthe Company(RM000)

Earnings per Share(Sen)

06 07 100908 06 07 100908 06 07 0908

698,

009

701,

371

769,

786

834,

472

849,

811

6,

814,

678

7,

396,

831

7,

714,

420

9,4

47,1

65

9,

723,

922

49.

39

47.

72 5

1.

54

54.

10

Dividendper Share(Sen)

Total Assets(RM000)

Net Assets perShare(RM)

06 07 100908 06 07 100908 06 07 0908

7.

5

25.

0

25.

0

2.

5

7.

5

30,

370,

822

33,

912,

520

38,

458,

561

45,

413,

832

46,

153,

855

4.

74

4.

91

5.

16 5

.37

YTL Corporation Berhad annual report 20


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Chairans Stateentor the fnancial year ended 30 June 2010

On behal o the Board o Directors o YTL Corporation Berhad (YTLCorp or the Company), I have the pleasure o presenting to you theAnnual Report and the audited fnancial statements o the Company andits subsidiaries (the Group) or the fnancial year ended 30 June 2010.

Tan Sri DaTo Seri (Dr) Yeoh Tiong LaYExecutive Chairman



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OvERvIEw

The Groups perormance or the nancial year under review grew

signicantly on the back o the maiden consolidation o a ull years

results rom PowerSeraya Limited (PowerSeraya), and bolstered by

strong perormances across the rest o the utilities division and the

cement division.

The international economic environment continued to show signs o

recovery throughout 2009 and the rst hal o the 2010 calendar

year, although this was tempered by the euro-area sovereign debt

crisis and persistent concerns globally over the health o the banking

sector. Meanwhile, whilst the Malaysian economy experienced an

overall contraction o 1.7% or the 2009 calendar year, the rst hal

o 2010 saw a strengthening recovery with gross development

product (GDP) growth o approximately 9.5%. In the other major

economies where the Group operates, Singapore experienced a 2.0%

contraction in GDP or the 2009 calendar year but rebounded

sharply or the rst hal o 2010, with growth o 18.8%, whilst the

British economy registered growth o 0.7% or the rst hal o 2010

ater contracting 5.0% in 2009 (source: Malaysian Ministry o Finance

economic reports; quarterly bulletins published by Bank Negara Malaysia,

Monetary Authority o Singapore, Bank o England).

As has been the case or the past ew years, oreign operations

continue to constitute the largest part o the Groups earnings,

underpinning the operational strength and geographical diversity o

its income streams.

Utilities

The Groups utilities registered strong perormances across the board

during the year under review, with growth being driven primarily by

the consolidation o a ull years results rom PowerSeraya in Singapore,

acquired in March 2009. PowerSeraya has a licensed capacity o3,100 megawatts (MW), and owns generation assets comprising

oil-red steam turbines, gas-red combined cycle plants and diesel-

red open cycle gas turbine plants.

During the year, construction was completed on PowerSerayas 800

MW natural-gas red co-generation combined cycle power plant,

which replaces three oil-red steam units. Technical conversion works

or two existing combined cycle plants into co-generation units were

also completed and these developments have strengthened

PowerSerayas competitive position as an integrated energy com

that aims to oer greater value through a bundled multi-u

package o steam, electricity and water to its customers.

In its communications division, the newest addition to the Gr

utility operations, development is well underway on a ogeneration (4G) wireless network which is expected to be

out across the Peninsula in late 2010. Leveraging on partne

with industry leaders such as Samsung, Clearwire, Cisco and

Semiconductor, the Group is building the worlds rst conve

nationwide 4G network that uses an all-IP (Internet Prot

architecture to deliver next generation services which include m

broadband and mobile voice.

Meanwhile, Wessex Water Limited, the Groups wholly-ow

subsidiary in the United Kingdom, continued to achieve the hi

levels o quality, compliance and customer service and was,

again, recognised as the best water and sewerage compa

England and Wales by Owat, its industry regulator, or its regu

year which ended on 31 March 2010.

Cement Manufacturing

The Group undertook a reorganisation during the year under re

injecting its quarry-operating subsidiary, Batu Tiga Quarry Sdn

(BTQ), directly into its cement division, in order to strengthe

divisions supply chain by providing secure and sustained acce

key raw materials used in the production process.

Overseas operations, particularly the supply o cement and con

in China and Singapore, continued to grow during the year u

review, urther developing new markets or the Groups produc

Construction Contracting

The domestic construction sector registered growth o 6.3% o

rst hal o the 2010 calendar year, supported mainly by s

growth in the non-residential sub-sector and continuing expansi

the civil engineering sub-sector (source: Ministry o Finance eco

updates; Bank Negara Malaysia quarterly bulletins and annual rep



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Chairans Stateent

The Groups construction division perormed steadily throughout the

year, completing construction on several phases o residential housing

projects and the Electried Double Track Railway Project between

Sentul and Batu Caves or Malaysias Ministry o Transport. Work has

also commenced on base stations which orm part o the inrastructure

or the Groups 4G platorm, currently under development.

Operation & Maintenance (O&M) Activities

The Groups O&M activities, which comprise one o its core centres

o technical expertise, continued to expand during the year under

review. Condition monitoring services are currently being provided

or the Groups power plants, cement plants and the Express Rail Link

(ERL), in addition to external clients in the oil and gas, water,

chemical engineering and other sectors. The Group provides expertise

by seconding engineers and trainers to various Siemens and other

projects in countries including in western Europe, the Middle East

and the Pacic Rim.

The KLIA Ekspres and KLIA Transit services continued to perormsteadily, sustaining ridership levels o around 4 million passengers or

the year. YTL Corp holds a 50%-stake in Express Rail Link Sdn Bhd

(ERLSB), the concession company responsible or constructing and

operating the high-speed rail link between Kuala Lumpur Sentral

Station and Kuala Lumpur International Airport. ERLSB operates under

a 30-year concession rom the Malaysian Government (which includes

an option to extend or another 30 years) to own and operate the

ERL.

Property Development & Investment

Perormance o the Malaysian residential sector improved during the

year under review, although launches within the high-end segment

remained subdued. Recovering economic conditions have beenrefected in improved consumer sentiments and better responses to

new residential launches, despite initial steps taken to normalise

interest rates via increases in the benchmark overnight policy rate

(OPR) during the year, which had a resultant eect on home loan

interest rates (source: Ministry o Finance economic reports; Bank Negara

Malaysia quarterly bulletins and annual reports).

The division remained ocused on its long-term development strategy,

launching limited new phases o its Lake Edge and Lake Fields

projects to very strong take-up rates. The Groups cornerstone

communities, which include Lake Edge in Puchong, Lake Fields in

Sungei Besi and Pantai Hillpark and Sentul in Kuala Lumpur, hav

continued to fourish as a result o careul timing o launches t

ensure that the capital value and appeal o existing developments a

maintained and enhanced.

Meanwhile, the Group embarked on a rationalisation o its retail anhospitality assets, the rst stage o which was completed during th

year under review. This involved the disposal by Starhill Real Esta

Investment Trust (Starhill REIT) o Starhill Gallery and its parcels

Lot 10 Shopping Centre to Starhill Global Real Estate Investme

Trust (SG REIT) in Singapore. The rationalisation will enable Starh

REIT to ocus on a sole class o hotel and hospitality-related asset

whilst SG REIT ocuses on international retail assets.

Hotel Development & Management

The domestic tourism industry experienced growth o approximate

7.2% during the 2009 calendar year compared to 2008, and touri

arrivals or the rst hal o 2010 registered a 4.6% increase over th

same period last year. International tourism levels have continued weather the eects o recessionary pressures in global economie

bolstered by increasing tourism activities particularly in Asia and oth

parts o the Pacic Rim (source: Ministry o Finance economic report

Tourism Malaysia).

In April 2010, the Group acquired Niseko Village K.K., which include

the Hilton Niseko, ski trails, gol courses, natural hot springs and

number o other owned or leased recreational activities such as hor

riding and tennis courts. Operations also commenced at Muse Ht

De Luxe in St. Tropez, a unique boutique hotel in France.

Information Technology Initiatives

The countrys broadband penetration rate, one o the Governmentkey indicators in its National Broadband Initiative to boost th

knowledge economy and narrow the digital divide across the countr

had increased to approximately 31.7% by the end o the 200

calendar year, compared to 21.1% in 2008 (source: Ministry

Finance economic reports; Bank Negara Malaysia quarterly bulletins an

annual reports).

The Groups operating segments continued to perorm well durin

the year under review. These comprise ee income rom its WiMA

(Worldwide Interoperability or Microwave Access) spectrum

alternative voice service provider operations and digital med

applications.



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On 26 March 2010, YTL Industries Berhad (YTL Industries), awholly-owned subsidiary o the Company, completed the disposal

o its entire equity interest in BTQ or a cash consideration o

RM150 million, to YTL Cement. Consequent thereto, BTQ became

a direct wholly-owned subsidiary o YTL Cement and remains an

indirect subsidiary o the Company.

On 1 April 2010, YTL Hotels & Properties Sdn Bhd, a wholly-

owned subsidiary o YTL Corp, completed its acquisition o a

100% equity interest in Niseko Village K.K. (including repayment

o specied amounts owing by the company and the purchase o

certain properties) or a total amount o JPY6.0 billion.

On 19 April 2010, Starhill Global REIT Management Limited, an

indirect wholly-owned subsidiary o the Company, entered intoan agreement with Paciic Star REIT Management Holdings

Limited to acquire ordinary and redeemable preerence shares

(Sale Shares) representing the remaining 50% o the issued and

paid-up share capital o YTL Starhill Global REIT Management

Holdings Pte Ltd (YSGRMH) or a total consideration o S$40

million. The Sale Shares are to be transerred in two tranches, the

rst o which was completed on 7 May 2010 and resulted in

YSGRMH becoming 75%-owned indirect subsidiary o YTL Corp.

The second tranche will be completed 24 months rom the date

o the agreement.

On 28 June 2010, Starhill REIT completed the disposal o Starhill

Gallery and its parcels in Lot 10 Shopping Centre to SG REIT

pursuant to a proposed rationalisation exercise to reposition

Starhill REIT as a global hospitality REIT.

On 20 September 2010, YTL Cement applied to the Securities

Commission (SC) or an extension o time to implement its

proposal to issue guaranteed exchangeable bonds o up to

US$200 million via a wholly-owned subsidiary to be incorporated

in the Federal Territory o Labuan, the current approval or which

expired on 4 October 2010. A decision rom the SC is pending.

The proceeds arising rom the bond issue will be utilised to und

uture investments and projects.

Status of Utilisation of Proceeds from Fund-Raising Exercises

O the net proceeds received rom the issue o the US$300 million

Guaranteed Exchangeable Bonds due 2012 (2012 Bonds),

approximately US$209.0 million was utilised or the payment o the

acquisition o SG REIT and YSGRMH and related expenses, as well as

or the purchase o nil-paid rights in the open market and partial

subscription o pro-rata rights entitlement pursuant to the rights issue

undertaken by SG REIT.

The balance o the proceeds o the 2012 Bonds and part o the net

proceeds received rom the issue o the 2015 Bonds were utilised to

repay a principal amount o US$291.1 million o the 2012 Bonds

pursuant to the exercise by bondholders o their right under thedeed dated 15 May 2007 constituting the 2012 Bonds to requir

Company to redeem all or some o the 2012 Bonds on 15 May

at 108.70% o their principal amount, amounting to US$3

million. The balance o the proceeds o the 2015 Bonds is curr

placed under xed deposits pending investment.

CORPORATE RESPONSIBILITY & SuSTAINABILITY INITIATIvES

For the ourth consecutive year, YTL Corp has issued its Sustaina

Report 2010 as a separate report, to enable our shareholders

stakeholders to better quantiy and assess the Groups sustaina

record. Meanwhile, YTL Corps statements on corporate govern

and internal control, which elaborate urther its systems and con

can be ound as a separate section in this Annual Report.

FuTuRE PROSPECTS

The Malaysian economy is expected to continue to recover,

GDP projected to grow approximately 4.5% to 5.5% or the

calendar year, whilst expansion in the international econom

expected to be modest arising rom the ongoing delevera

process and eorts by governments around the world to ad

high unemployment and improve the strength o their ina

systems (source: Ministry o Finance economic reports; Bank N

Malaysia quarterly bulletins and annual reports).

The Group will continue to ocus on its core capabilities, leveragin

its established track record in managing investments, supportetechnical know-how and O&M expertise to ensure the Groups on

growth and development.

The Board o Directors o YTL Corp wishes to thank the Gr

shareholders, investors, customers, business associates and the regu

authorities or their ongoing support. We also extend our gra

to the management and sta o the Group or their eo

enabling YTL Corp to deliver another year o strong perorman

TAN SRI DATO SERI (DR) YEOH TIONg LAYPSM, SPMS, DPMS, KMN, PPN, PJK



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manain Directors Reieor the fnancial year ended 30 June 2010

The Group achieved an excellent set o results or the 2010 fnancial year,with the signifcant growth in revenue and proft arising mainly rom themaiden consolidation o a ull-years results o PowerSeraya Limited(PowerSeraya) in Singapore, our most recent large-scale utility acquisition,completed in March 2009.

Tan Sri DaTo (Dr) FranciS Yeoh Sock Ping, CBE, FICManaging Director



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With a licenced generation capacity o 3,100 megawatts (MW),

PowerSeraya owns about a quarter o the islands total licensed

generating capacity and also operates merchant multi-utility

businesses, proving a strong synergistic t with our existing utility

portolio. This portolio now encompasses 1,212 MW o generation

capacity in Malaysia, our 35% interest in P.T. Jawa Powers 1,220MW power station in Indonesia, water and sewerage services in the

United Kingdom and ourth generation (4G) wireless communications

in Malaysia. The newest addition our utilities business, the Groups

4G wireless platorm is currently under development and is targeted

to be rolled out across the Peninsula in late 2010.

The year under review also saw the completion o our acquisition o

Niseko Village, a prime winter and summer destination located at the

south-eastern oothills o Mt. Niseko Annupuri in Hokkaido, Japan.

Our vision or Niseko Village is to realise the resorts untapped

potential by creating a unique, sophisticated village atmosphere

oering private houses and ski-in, ski-out estates, and eaturing all

the hallmarks o the YTL brand that we have successully employed

at our other luxury resorts. We also commenced operations at MuseHtel De Luxe in St. Tropez, our new boutique hotel in the south o

France.

The Group has experienced signicant growth, both organic and

acquisition-driven, over the past decade in particular and we embarked

on two rationalisation exercises this year, with the intention o

streamlining our operations and improving synergies.

In January 2010, YTL Cement Berhad (YTL Cement), our listed

cement division, acquired Batu Tiga Quarry Sdn Bhd (BTQ) rom

YTL Industries Berhad, a wholly-owned subsidiary o YTL Corp,

thereby consolidating the BTQ groups quarry assets, limestone

quarrying services and premix products business into YTL Cements

operations. This move has strengthened the vertical integration o theGroups cement operations, in addition to streamlining our cement

divisions production processes, supply chain and logistics network.

Subsequently, in June 2010, we completed the irst stage

rationalisation o our retail and hospitality assets, involvin

disposal by Starhill Real Estate Investment Trust (Starhill REIT

Malaysia o Starhill Gallery and the trusts parcels in Lot 10 Sho

Centre to Starhill Global Real Estate Investment Trust (SG REIT

Singapore. Starhill REIT is now embarking on a rebranding exto transorm itsel into a pure-play hospitality REIT, to build valu

ocusing on a single class o hotel and hospitality-related assets

SG REIT, meanwhile, has expanded its global ootprint to includ

David Jones Building in Perth, Australia, and the new retail prop

in Malaysia, complementing its existing portolio o retail ass

Singapore, Japan and China.

The strength and stability o our core businesses have continu

sustain the Group and enabled us to improve our nancial perorm

or the year under review. And whilst the wider operating environ

has seen some improvement, this has been tempered o

international level by concerns over the sovereign debt crises plag

certain European economies, recessionary developments andlong-term strength and perormance o the global banking se

However, our business segments have continued to retain a d

o insulation rom downward pressures, owing to regul

concessions and long-term contracts in our utilities division, as

as a strong ongoing ocus on reducing costs and improving opera

eciencies in our cement, hotel and plant operation and mainte

(O&M) divisions.

Our longer-term shareholders and stakeholders know that the

o our journey has never wavered rom the long term growth

prospects o the Group, and this continues to orm the basis o

direction today and or the year ahead.

Thank you to all our stakeholders and God bless all o you.

TAN SRI DATO (DR) FRANCIS YEOH SOCK PINgPSM, FICE, CBE, SIMP, DPMS, DPMP, JMN, JP



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Operations Reie

Utlts

The Groups utility businesses registered strong perormances acro

the board during the year under review. These businesses compri

power generation (in both contracted and merchant markets)

Malaysia, Singapore and Indonesia, power transmission in Australi

the provision o water and sewerage services in the United Kingdom

(UK) and communications in Malaysia, as well as power plan

operation and maintenance (O&M) expertise and multi-utili

businesses.

POwER gENERATION, POwER TRANSmISSION & muLTI-uTILITIE

The Groups contracted and merchant power generation businesse

power transmission and multi-utility businesses comprise 100% stake

in YTL Power Generation Sdn Bhd (YTLPG) in Malaysia an

PowerSeraya in Singapore, as well as a 35% equity interest in Jaw

Power in Indonesia and an indirect investment o 33.5% in ElectraN

Pty Ltd (ElectraNet) in Australia.



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The technical conversion works or two existing combined

plants into co-generation units or the supply o stea

PetroChemical Corporation o Singapore were also complete

2009.

Meanwhile, the Groups 10,000m3 per day desalination plant sawater sampling and saety plans approved by the relevant autho

This will enable PowerSeraya to supply o potable water t

customers, enhancing its multi-utility oering.

The company has continued to strengthen its uel portolio by u

diversiying its energy sources and mix or power generation. Foc

on the needs o an increasing number o customers who requi

more complex and customised product packages, the compan

continued to retain its position as market leader or the

consecutive year by commanding 29.5% o the contestable

market, up rom 29.2% last year. Correspondingly, sales volum

this segment reached 9,570 GWh or the nancial year ende

June 2010, an annualised increase o 9.3% over last years volu

PowerSerayas trading and uel management arm has continue

leverage its uel-related assets to build value. Its 25,000m

blending tanks commenced commercial operations in 2

complementing the divisions existing 860,000m3 tank sto

capacity. Moving orward, the division will continue to optimis

use o its operational assets and enhance its jetty acilities to r

greater benet and revenue via a well-integrated terminal cong

or cargo and bunker trading.

Jawa Power, Indonesia

In Indonesia, Jawa Power continued to operate at optimal leve

meet Indonesias demand or electricity. For its nancial year e

31 December 2009, Jawa Power posted another year o stoperational perormance with average availability o 93.98%, w

excess o the 83% rate contracted under its power purc

agreement. The station generated 9,105 GWh o electricity com

to 8,685 GWh last year or its sole otaker, P.T. Perusahaan L

Negara (Pesero) (PLN), which is Indonesias national utility com

For the six months ended 30 June 2010, the plant poste

availability o 84.7%.

YTLPG, Malaysia

Overall plant availability increased during the year under review with

the availability o the two plants standing at 98.62% at Paka Power

Station and 93.99% at Pasir Gudang Power Station. During the year,

combined power production by both stations was 100.18% o the

scheduled quantities. Saety was excellent with no reportable accidentsoccurring during the year. Major scheduled maintenance was carried

out during the year on Pasir Gudang Power Stationss Gas Turbine

11 upon reaching 100,000 equivalent operating hours (EOH). Minor

inspections were also done on three gas turbines at Paka Power

Station during the year.

Located in Paka, Terengganu, and Pasir Gudang, Johor, YTLPGs two

combined-cycle, gas-red power stations have a total generating

capacity o 1,212 MW 808 MW at Paka Power Station and 404

MW at Pasir Gudang Power Station. YTLPG has a 21-year power

purchase agreement with Tenaga Nasional Berhad. O&M or the

Paka and Pasir Gudang power stations continues to be undertaken by

YTL Power Services Sdn Bhd, a wholly-owned subsidiary o the

Group.

PowerSeraya, Singapore

Despite fuctuations and decreases in Singapores electricity demand

and ongoing volatility in the oil market, PowerSeraya maintained its

market generation share o approximately 27% or the nancial year

under review, due to its prudent bidding, hedging and risk

management strategy, enabling the company to support competitive

pricing or customers. For the nancial year ended 30 June 2010, the

Group sold 13,825GWh o electricity, representing a 7.9% increase

on an annualised basis over last years sales.

PowerSeraya has a licensed capacity o 3,100 MW and owns

generation assets comprising oil-ired steam turbines, gas-iredcombined cycle plants and diesel-red open cycle gas turbine plants.

During the year, construction was completed on an 800 MW Co-

Generation Combined Cycle Power Plant (CCCP), replacing three

oil-red steam units and which is expected to generate electricity and

steam at higher eciencies and reliability.



16/22

Operations Reie

wATER & SEwERAgE OPERATIONS

The Groups water and sewerage operations are carried out by i

100%-owned subsidiary, Wessex Water, in the UK. Despite the eec

o the economic slowdown, Wessex Water continued to regist

strong results during the year under review, achieving its highe

levels o quality, compliance and customer service. The company wa

recognised as the best water and sewerage company in England an

Wales by Owat, the independent economic regulator o the wat

and sewerage industry with responsibility or setting prices an

ensuring companies carry out and nance their business properly.

For its regulatory year, which ended on 31 March 2010, Wesse

Water achieved an Overall Perormance Assessment (OPA) score

97% o the maximum number o points, the highest-ever score

the industry since the measure was introduced. The company als

maintains some o the highest standards o customer servic

remaining at the top o Owats independent survey o custom

satisaction with telephone service.

Wessex Water continued to improve its water and sewera

inrastructure with major extensions to its sewage treatment works

Wiveliscombe and Bridgwater to deal with increases in industr

fows and a number o projects to improve the security o wat

supply in Wiltshire, Dorset and Somerset, including improving trun

main transers to reduce the number o customers dependent osingle sources o supply. Wessex Water provides water services to 1

million customers and sewerage acilities to 2.7 million custome

over an area o approximately 10,000 square kilometres in the sout

west o England which includes Dorset, Somerset, Bristol, most o

Wiltshire and parts o Gloucestershire and Hampshire.

Jawa Power is the owner o a 1,220 MW coal-red thermal power

station consisting o two electricity generation units with a net

installed capacity o 610 MW each. The plant is located at the Paiton

Power Generation Complex on Indonesias most developed and

populated island, Java, and supplies power to PLN under a 30-year

power purchase agreement. O&M or Jawa Power continues to becarried out by P.T. YTL Jawa Timur, a wholly-owned subsidiary o YTL

Power, under a 30-year agreement.

ElectraNet, Australia

In Australia, ElectraNet continued to perorm well during the year

under review. ElectraNet is a regulated transmission network service

provider in Australias National Electricity Market (NEM) and owns

South Australias high voltage electricity transmission network, which

transports electricity rom electricity generators to receiving end-users

across the state. ElectraNets network covers approximately 200,000

square kilometres o South Australia via more than 5,700 circuit

kilometres o transmission lines and 76 high voltage substations. The

company also provides the important network link rom SouthAustralia to the NEM via two regulated interconnectors, one o which

is owned by ElectraNet. YTL Power also has a 33.5% investment in

ElectraNet Transmission Services Pty Limited, which manages

ElectraNets transmission assets.

ElectraNet is regulated by the Australian Energy Regulator which sets

revenue caps based on the companys expected capital expenditure

requirements or a ve-year regulatory period. The current revenue

cap became eective on 1 July 2008 and is valid or a period o ve

years until 30 June 2013.



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In November 2009, Owat issued its nal determinations on price

limits which cover the 5-year period rom 2010 to 2015. Wessex

Waters inal determination will result in an annual increase in

customers bills o about 0.6% or the ve-year period. Plans or the

period include an investment plan o 1.0 billion, integrating water

supply assets to improve security o supply, dealing with raw waterquality and improving river fows, improving drinking water quality,

achieving urther reductions in risks o fooding to properties and

urther reducing the companys carbon ootprint through increased

use o renewable energy sources.

Wessex Waters regulated asset base (RAB) increased moderately by

4.2% to 2,262 million (RM11.3 billion, based on the average

exchange rate o 1.00 : RM5.00) or its regulatory year ended

31 March 2010, compared to 2,171 million (RM10.9 billion) or its

previous regulatory year.

COmmuNICATIONS

The Groups communications operations are carried out by YTL

Comms in Malaysia. Pursuant to the approval rom the Malaysian

Communications and Multimedia Commission (MCMC) to operate

a 2.3 gigahertz (GHz) wireless broadband network in Malaysia, YTL

Comms is developing the worlds rst converged nationwide 4G

network and will oer mobile Internet services designed to change

the way people access the Internet and provide a platorm to deliver

innovations to improve the way people work, learn and play.

YTL Comms partners include some o the most advanced global

technology pioneers in their respective ields, including Cisco,

Clearwire, GCT Semiconductor and Samsung, and in November

2009, YTL Comms announced the ormation o a 4G Innovation

Network, in cooperation with these partners.

The 4G Innovation Network in Malaysia is linked to Clearw

Innovation Network in Silicon Valley and is designed to acilitat

ree fow o ideas and inormation across borders, expandin

ecosystem to link Malaysian and other Asian developers directly

some o the worlds most creative minds in Silicon Valley. This a

developers to incubate their ideas, with the support o world lein mobile Internet technology, giving consumers in Malaysia a

level o mobile Internet experience with products and ser

optimised or a high bandwidth, low latency 4G network.

In conjunction with the Innovation Network, the Group launch

US$1,000,000 mYprize Global Developer Challenge, a world

competition aimed at engaging developers and inventive min

create innovative applications and devices or YTL Comms nation

4G mobile Internet network. The competition is intended to p

Malaysia into a truly cutting-edge incubation centre o

innovation.

The Group has also entered into a Licence and Services Agree

with Sezmi Corporation o the United States that gives the Grourights to deploy a hybrid TV service in Malaysia and throughou

Pacic. Hybrid TV brings together broadcast content and Intern

the same device and through its 4G network, the Group will b

rst in the world to oer an all wireless hybrid TV service whe

service is launched at the end o 2011. The Sezmi system is cur

commercially available in the United States and is a proven

running innovator in redening television viewing experience.



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Operations Reie

cmtMuftu

The Group undertook a reorganisation o its quarry businesses durin

the year under review with the injection o Batu Tiga Quarry Sdn Bh

(BTQ) into the Groups cement division. BTQ, one o the large

quarry operators in the country, has strengthened the division

supply chain and augurs well with the Groups existing cemen

businesses, as well as its ready-mixed concrete operations, which a

the largest in Malaysia.



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reducing the usage o clinker and total carbon dioxide emissio

well improving the quality and perormance o the products

cement division continues to rene and urther develop ble

cement products, and has begun exporting the blended produc

Singapore.

In April 2010, the Group received certication or its products

the Singapore Environment Council (SEC) under the Singapore G

Labelling Scheme (SGLS). The certiication indicates that

products are eco-riendly building materials which make an impo

contribution to environmental sustainability and the reductio

carbon emissions. The products that were certied included gr

granulated blasturnace slag, blasturnace cement CEM

blasturnace cement CEM III/B, Portland composite cement CE

B-M, ground granulated blasturnace slag and blasturnace ce

CEM III/A.

The Groups nation-wide distribution network and overseas oper

enabled the division to maintain market share in its operating

during the year under review, supported by strong customer demThe Groups cement division remains the only operator wit

ability to manuacture and supply bespoke building materials

products o the highest quality to meet the increasingly sophisti

engineering specications o customers.

OvERSEAS OPERATIONS

The Groups plant in China, which has production capacities or

million tonnes per annum o clinker and 2.00 million tonne

annum o cement, continued to perorm at satisactory levels

plant is situated in the Linan district o the Zhejiang Provin

China and is one o the dominant suppliers in the wider Hang

market.

Meanwhile, operations in Singapore continued to perorm str

during the year under review. The Group was the sole supplier t

biggest integrated resort development on the iconic Sentosa I

and has successully established a ully-operational divisio

Singapore. The Group continues to rene and urther develo

range o blended cement products, and has begun exporting

blended products to Singapore.

OPERATIONS IN mALAYSIA

The addition o the BTQ group to the Groups cement division

during the year under review has enabled it to urther streamline its

production process and supply chain, and has strengthened the

vertical integration o the Groups operations. The BTQ group is a

substantial supplier o aggregates and manuactured sand used in the

Groups ready-mixed concrete manuacturing business, with 11

quarry sites across the Peninsula.

BTQ also provides limestone quarrying services and undertakes the

manuacture and distribution o premix products which augment its

business. These include Asphaltic Concrete Wearing Course, Asphaltic

Concrete Binder Course, Dense Bitumen Macadam, Normal Premix

Wearing Course and Normal Premix Binder Course, and these are

used primarily in the construction o large-scale inrastructure,

including roads, highways and airports.

Across all operating divisions, the Group continued to meet its key

perormance targets in its ongoing programme to improve operational

perormance by reducing costs and ensuring the cohesiveness o its

logistics network and supply chains to meet customers needs. The

ully-integrated production processes and geographical diversity o

the Groups plants enabled it to realise cost savings and economies

o scale generated rom its annual production capacity o 6.0 million

metric tonnes or clinker and 8.0 million metric tonnes or cement.

The division has also continued to make good progress in the

utilisation o alternative uels and energy sources to reduce the eects

o increases in conventional uel costs and to reduce the Groups

overall carbon ootprint. In 2009, the Group commenced trials or

uel-switching rom coal to waste products and materials such as

empty ruit bunches and palm kernel shells rom the palm oil

industry, shredded rubber tyres, solvents, and industrial sludge

pellets. A system or storing and transporting the new uel eedstockwas built, the utilisation o which reduces the use o coal and its

subsequent carbon emissions, replacing the ossil uel with palm oil

plantation and mill waste and less carbon-intensive eedstock such as

rubber tyres and solvents. Industrial gypsum is also being used to

partially substitute natural gypsum.

The Group has intensiied the production o blended cement,

substituting a portion o the clinker with high quality limestone, as a

plasticising material, to improve the workability o the cement, thus



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