BUILDING THE RIGHT THING - YTL e-Solutions

1 Annual Report 2020 Annual Report 2020 BUILDING THE RIGHT THINGThe Journey CORPORATION BERHADA nnual Report 2020 CONTENTSCORPORATE REVIEW02 Chairman s Statement04 Managing Director s Review07 Management Discussion & Analysis37 Managing Sustainability39 Corporate Events41 Notice of Annual General Meeting44 Statement Accompanying Notice of Annual General Meeting45 Corporate Information46 Profile of the Board of Directors51 Profile of Key Senior Management52 Statement of Directors Responsibilities53 Audit Committee Report56 Nominating Committee Statement61 Corporate Governance Overview Statement69 Statement on Risk Management & Internal Control73 Analysis of Shareholdings75 Statement of Directors Interests78 List of PropertiesFINANCIAL STATEMENTS81 Directors Report91 Statement by Directors91 Statutory Declaration92 Independent Auditors Report100 Income Statements101 Statements of Comprehensive Income102 Statements of Financial Position104 Statements of Changes in Equity106 Statements of Cash Flows110 Notes to the Financial Statements Form of ProxyCompany No.

2 198201012898 (92647-H)TAN SRI DATO (DR) FRANCISYEOH SOCK PINGKBE, CBE, FICEE xecutive ChairmanYTL Corporation Berhad ( YTL Corp ) and its subsidiaries ( Group ) posted a 6% increase in revenue to billion for the financial year ended 30 June 2020, contributed mainly by our construction and cement segments. After eliminating the losses arising from fair value changes, impairments and inventory write-downs of million, the Group recorded profit before tax of million for the current financial Malaysian economy registered lower gross domestic product (GDP) growth of for the 2019 calendar year compared to in 2018, impacted by weaker external demand and investment activity, as well as supply disruptions in the commodities sector.

3 The economy contracted by in the first quarter and in the second quarter of 2020, resulting from the concurrent supply and demand shocks due to weak external conditions and the strict measures implemented to contain the COVID-19 pandemic (sources: Ministry of Finance malaysia , Bank Negara malaysia updates & reports).Meanwhile, in other major economies in which the Group operates, the United Kingdom registered GDP growth of approximately during 2019, with the economy contracting by an estimated and , respectively, in the first and second quarters of the 2020 calendar year. Singapore s economy showed growth of in 2019, followed by contractions of and , respectively, in the first and second quarters of the 2020 calendar year (sources: Ministry of Finance malaysia , Singapore Ministry of Trade & Industry, UK Office for National Statistics updates & reports).

4 02 YTL CORPORATION BERHADC hairman s StatementThe outbreak of the COVID-19 pandemic has not spared any country or industry, necessitating the closure of borders, the imposition of movement control orders and restrictions on the provision of non-essential services across the globe. The last four months of the financial year, covering the period from March to June 2020, encompassed some of the most stringent measures, hampering the operations of parts of our businesses during various , our utilities division has stood as a bulwark, continuing to operate throughout the control period as the businesses all provide essential services water, electricity and telecommunications.

5 Our cement and construction businesses also returned to operation relatively expeditiously, whilst our hotels have started to see recovery particularly from domestic travellers holidaying within the order to ensure that shareholders will continue to be rewarded with healthy dividend yields, whilst enabling our Group to conserve cash to provide increased flexibility and options to optimally manage our existing businesses and invest in future opportunities, YTL Corp declared a 1-for-30 share dividend with an entitlement date of 28 October 2020. This represents a dividend yield of about based on the average share price for the year of per share.

6 YTL Corp has a consistent dividend track record and has declared dividends to shareholders for 36 consecutive years since listing on the Kuala Lumpur stock exchange in Group s long-term growth and development strategies, centred around geographic diversification and expansion of our revenue base, focusing on regulated utility assets providing essential services and other core businesses such as cement and construction, served us well this year, facilitating our ability to function even at restricted levels and providing the necessary protection and stability to the Group in the face of unpredictable global remain committed to the prudent financial management that has fortified our Group in times of uncertainty.

7 Our financial structure will continue to be safeguarded by our long-standing policy of maintaining cash reserves and financing acquisitions on a ring-fenced, non-recourse basis that ensures the stand-alone viability of the business. This structure is further bolstered by our regulated assets which deliver asset values that increase over time and optimise capital expenditure, in addition to flowing up dividends from operational will continue to improve on our track record and ensure that our ventures are sustainable over the long-term in order to deliver returns to our shareholders, protect the livelihoods of the employees who form the backbone of our Group, offer world class products and services at competitive prices to our customers and advance the communities where we SRI DATO (DR)

8 FRANCIS YEOH SOCK PINGPSM, KBE, CBE, FICE, SIMP, DPMS, DPMP, JMN, JP03 ANNUAL REPORT 2020 Chairman s StatementFINANCIAL OVERVIEWB usinesses across the globe faced unprecedented operational challenges following the outbreak of the COVID-19 pandemic in early 2020. Countries where YTL Corporation Berhad ( YTL Corp or Company ) and its subsidiaries ( Group or YTL Corp Group ) operate implemented various movement control orders and limited the operation of non-essential , the Group s businesses have been cushioned by its Utilities segment which provides essential services that have continued to operate throughout the control period.

9 The construction and cement segments re-commenced in stages as permitted and operations have normalised, whilst the Group s property and hotels segments have faced slower recovery in light of the effects of pandemic restrictions on the hospitality, retail and property Group recorded revenue of billion for the financial year ended 30 June 2020 compared to billion for the financial year ended 30 June 2019, and profit before taxation of million for the financial year under review, compared to RM1, million last Corp declared a share dividend in respect of the financial year under review comprising a distribution of 1 treasury share for every 30 ordinary shares in the Company held as at the entitlement date of 28 October the Group s key Utilities division, higher revenue in the water and sewerage sub-segment in the United Kingdom (UK) was primarily due to differing weather conditions leading to changes in supply volumes and partially offset by a price decrease determined by the industry regulator.

10 Lower profit before tax resulted mainly from a higher allowance for impairment of receivables due to the potential impact of the pandemic on customers, as well as the price decrease. However, once such impairments are realised, the UK regulatory regime allows for recovery of these amounts against future merchant multi-utilities sub-segment in Singapore registered lower revenue due to the decrease in fuel oil prices and lower units sold, partially offset by higher sales of fuel oil, whilst the loss before tax narrowed due mainly to the absence of a one-off charge for impairment of receivables recognised last year.