Tanjong Plc -investor Kit

Investor Briefing www.tanjongplc.com

Contents

Index

TANJONG public limited company

Group Overview Corporate Structure

Core Businesses Power Generation Gaming Leisure

Group Corporate Matters Group revenue & EBITDA Balance sheet Key corporate metrics Shareholders’ Profile Rewarding Our Shareholders 2

Group Overview

Corporate Structure

TANJONG public limited company

TANJONG PLC 100%

Tanjong Power Holdings Sdn Bhd

PMP Sdn Bhd NFO & RTO

75%

100%

Tanjong Energy Holdings Sdn Bhd 100%

Powertek Bhd Power Generation 10%

Tanjong Entertainment Sdn Bhd

100%

55%

Kuasa Nusajaya (L) Ltd

Pendekar Energy (L) Ltd

Power Generation

Power Generation

100%

Tropical Islands S.ar.l

TGV Cinemas Sdn Bhd

Tropical Islands

Film exhibition

Tanjong Asset Holdings 67%

Impian Klasik Sdn Bhd Property Investment

Taweelah Asia Power Co Power Generation & Water Desalination

Power Generation

Gaming

Leisure

Property

3

Core Business

TANJONG public limited company

Power Generation Leveraging on our core strengths to maintain growth momentum

4

Core Business

Power Generation

TANJONG public limited company

Our Performance 3,200 2,800

Turnover & EBIT (RM million)

2,400

712

725

2,000 108 1,600 625

674

662

1,200

1,042 987

800

595

400

387 1,087

1,057

1,074

2006

2007

2008

2009

Malaysia

EBIT

898 683

708

775

1,299 1,050

794

1,365

1,333

0

PEL

Egypt

2010*

EBITDA

*Annualised from 1st half results 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

5

Core Business

Power Generation

TANJONG public limited company

Our Performance Initial success in Malaysia 1993

440 MW Open Cycle Gas Turbine Plant – fast track completion 13 months to 1995

1999

Acquired 330 MW Combined Cycle Gas Turbine from Tenaga

2001- Build, own & operate 720 MW Combined Cycle Gas Turbine plant on a fast track 2003 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.

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Core Business

Power Generation

TANJONG public limited company

Where are we? Company

Location

Name

Effective Stake

PPA Expiry

Net/Effective Capacity

Powertek Bhd

Malaysia

Powertek Pahlawan Panglima

100% 100% 100%

2016 2020 2023

440 MW 330 MW 720 MW

Kuasa Nusajaya Ltd

Pendekar Energy Ltd

Pendekar Power (L) Ltd Total

Port Said Suez Gulf Egypt Bangladesh Bangladesh Bangladesh Pakistan Sri Lanka Sri Lanka Abu Dhabi

Sidi Krir Meghnaghat Haripur NEPC Kabirwala Ace Horana Ace Matara Taweelah B

100% 100% 55% 55% 55% 28% 23% 16% 16% 10%

2023 2023 2022 2024 2023 2014 2029 2012 2012 2028

EBIT (RM million) 2008 2009

431

253

294

291

55

312

13

19

793

875

683 MW 683 MW 375 MW 248 MW 198 MW 30 MW 36 MW 4 MW 4 MW 200 MW

3951 MW

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Core Business

Power Generation

TANJONG public limited company

Strategic 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 engineering 2. Emission Trading Schemes 3. Appropriate vertical integration

•

To restructure O&M as a separate business.

8

Core Business

Power Generation

TANJONG public limited company

Our Core Competencies

Greenfield Developments

<

Operations

>

Mergers & Acquisitions

• Teluk Gong (Malaysia)

• Least Cost Operator

• Pahlawan (Malaysia)

• Panglima (Malaysia)

• Availability

• Suez Gulf (Egypt)

• Taweelah B Extension (Abu Dhabi)

• Risk Management

• Port Said (Egypt)

• Knowledge Management

• Sidi Krir (Egypt)

• Commercial Contractual Skills

• Meghnaghat (Bangladesh)

• Cultural Diversity • Own O&M work with smart partnership (Fortum, E.ON)

• 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

9

Core Business

Power Generation

TANJONG public limited company

International Opportunities Country Power Strategy • Risk/return paradigm Regions with attractive long term contracted cash flows & abundant fossil fuel reserves

• Plant size • Level of control • PPA / fuel preference • Velocity of returns

Greenfield: • Asia Pacific

Where?

• MENA

How much? Risk/Returns

• O & M philosophy

• South Asia • Greenfield development and M&A • Renewable • Leverage on core competencies

How?

End Game

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

- Generation - O&M

10

Core Business

TANJONG public limited company

Gaming Continuing with leadership in innovation, Continuing with leadership in innovation, branding and product appeal branding and product appeal

www.damacai.com.my 11

Core Business

Gaming

TANJONG public limited company

NFO - Performance 2,400 2,000

Revenue & EBITDA (RM'm)

2,087 1,600

1,925

1,993

2,026

1,990

215.0

173.0

243.0

244.0

2006

2007

2008

2009

1,200 800 400

320.0

0

Turnover

2010*

Financial Year EBITDA

*Annualised from 1st half results 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

12

Core Business

Gaming

TANJONG public limited company

NFO – Competitive Landscape NFO Market Share

100% 80% 60%

24.2%

23.8%

23.3%

21.8%

23.0%

PMP

36.7%

37.4%

36.4%

34.5%

36.2%

Magnum

39.1%

38.8%

40.3%

43.7%

40.8%

BST

FY2006

FY2007

FY2008

FY 2009

1QFY10

40% 20% 0% * source from Bursa Malaysia announcements PMP & BST Feb-Jan, Magnum Jan-Dec

• 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.

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Core Business

Gaming

TANJONG public limited company

NFO – The Real Competition NFO Market by number of outlets

PMP (343)

Magnum (485)

BToto (681) Others

Unauthorised 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 14

Core Business

Gaming

TANJONG public limited company

NFO – Strategic Initiatives • 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?

15

Core Business

Leisure

TANJONG public limited company

Tropical Islands Completing the product & reaching for a wider market

www.my-tropical-islands.com 16

Core Business

Leisure

TANJONG public limited company

Tropical Islands - Performance 180

Revenue & EBITDA (RM'm)

130

80

103 67

97

32

30

-20

163

141

1.7

2006 -45

2007

2008 -23

2009

(59.0) (69.0)

(2.4)

(34.0)

-34

-70

2010*

(59.0)

Financial Year Turnover

EBITDA

EBIT

st

*Annualised from 1 quarter results 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

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Core Business

Leisure

TANJONG public limited company

Tropical Islands Phase 1 – Existing Attractions

™

Tropical Rainforest −

™

Tropical Village −

™

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

South Sea −

™

Authentic houses from 6 tropical countries, a colourful marketplace and the Wayang stage

Paradise Beach −

™

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

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

Bali Lagoon −

32oC water, water slides, whirlpools, waterfall

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Core Business

Leisure

TANJONG public limited company

Tropical Islands Phase 2 – Completing the Product

™

Themed Children’s Play Area −

™

Germany’s tallest water slide −

™

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 −

™

The Rainforest will form the backdrop for six different wellness areas

Beach and Kid’s Paddling Pool −

™

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 −

™

4,000m2 Kid’s Paradise - a push go-kart track, adventure playground, power paddling boat lake, ball arena and eight trampolines

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

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Core Business

Leisure

TANJONG public limited company

Tropical Islands Map (Phase 1 & 2)

Foyer & Shopping Boulevard

Bali Lagoon

Tropical Village

Children’s Play Area new

new Water Slides new Rainforest Wellness Complex

Rainforest

South Sea & Paradise Beach

Kids’ Paddling Pool

Camping Ground

20

Core Business

Leisure

TANJONG public limited company

Tropical Islands Phase 3 – Optimising the Potential of the Project

21

Core Business

Leisure

TANJONG public limited company

Tropical Islands Current onsite accommodation Internal: 120 tents (356 beds) 14 “Asiana” lodges (28 beds) External : Caravan parks Hotels Partner Hotels

22

Core Business

Leisure

TANJONG public limited company

Tropical Islands Our partners Developer

Marketer

•

•

•

•

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

• •

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

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Core Business

Leisure

TANJONG public limited company

Tropical Islands Going forward ¾ 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 ¾ Options being considered to increase accommodation • Additional 1525 homes – assuming full use of land • Hotels: 9 200 room MICE hotel (3 star) 9 150 rooms budget hotel (1 star) ¾ Potential for additional leisure facilities to complement current offerings (restaurants, cinemas, sports & recreation facilities, etc.) ¾ Potential tie ups with other leisure industry players & investors.

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Corporate Information

25

Group Overview (RM'm) 4,400 4,000 3,600 3,200 2,800 2,400 2,000 1,600 1,200 800 400 0

Group Revenue

TANJONG public limited company

3,895 3,641

715 2,385 1,882

97

2006 TI & TGV

2,671

724 636 2,718

698 1,087

795

2,799

1,844 1,682 67

103

2007

2008

208

301

2009

2010*

Power Generation

Gaming

*Annualised from 1st half results 26

Group Overview

Group EBITDA

TANJONG public limited company

(RM'm) 1,900 1,610

1,500

261 1,203 1,023

1,100 754

700

1,276

222

239

1,299

159 987

204

1,042

898

300 -100

595

(45)

2006 TI & TGV

(34)

2007

12

50

2009

2010*

(23)

2008

Power Generation

Gaming

*Annualised from 1st half results 27

Group Overview

Balance Sheet

TANJONG public 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

Gearing (x) Assumed Debt Capacity

3,746

-

1.0

2,000

Gearing of 1.5x

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Group Overview

Key Corporate Metrics

TANJONG public limited company

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

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Group Corporate Matters

Corporate Information

TANJONG public limited company

Shareholders’ Profile Malaysian Usaha Tegas Sdn. Bhd.

31%

Ultimate Corporation Sdn. Bhd.

8%

Others

24%

Malaysian 63%

Free Float of 56%

Foreign 37%

[Shareholder analysis as at 31 July 2009] 30

Group Corporate Matters

Corporate Information

TANJONG public limited company

Rewarding our shareholders

Sen

Distribution to Shareholders 140 120 100 80 60 40 20

Dividend Analysis 2006 Gross Payout 75% Gross Yield 5.0%

138 126

115

93 22

34

48

48

34

20

56

70

2007 65% 6.0%

2008 66% 5.2%

2009 78% 6.3%

48 0 18

2006

2007

2008

2009

1QFY10

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.” 31

Group Corporate Matters 2008 Asia’s Best Companies Poll - Malaysia

Awards & Accolades

TANJONG public limited company

2006 Asia’s Best Companies Poll - Malaysia

> No 4 “Most Commitment to Strong Dividend Policy”

> No 1 “Best Investor Relations”

> No 6 “Best Investor Relations”

> No 4 “Best Corporate Governance” > No 5 “Overall Best Managed Company” > No 5 “Best Commitment to Strong Dividend Payments”

2008 Best Corporate Governance Poll Malaysia > No 1 “Best Investor Relations” in Malaysia > No 1 “Best Investor Relations Officer” in Malaysia

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

> No 2 “Overall Best Corporate Governance” in Malaysia

2005 & 2004 Global Emerging Markets Corporate Governance Rankings > No 1 in Malaysia

2004 Asia’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”

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TANJONG public limited company

Thank You

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