5
14
4 San
20
07 | INTERNATIONAL PRESENCE
Francisco
Istanbul
2
Beijing
Mumbai
3
Kuala Lumpur
1
# Khazanah
# Investee
offices
companies’ presence
08 | RETURNS TO STAKEHOLDERS
•RM336 million contributed since 2006 for Corporate
Responsibility ("CR") purposes
•RM10 million committed in 2013 for flood relief and
disaster preparedness efforts
•Yayasan Hasanah established in Dec 2013 focusing on five core pillars: Education,
Community Development, Environment, Arts, Heritage & Culture and Knowledge.
SELECTED CR INITIATIVES
 Yayasan Sejahtera Poverty alleviation
 Trust schools/school transformation programme
 Cruyff Courts –
providing public
playing fields for disadvantaged
children, youths and community
09 | KNOWLEDGE DEVELOPMENT
•Support for government policy formation and national knowledge development
•Building international linkages via partnerships and collaborations
•Committed to a learning organisation and deepening the national knowledge pool through
events and publications
•Newly-established Khazanah Research Institute (KRiS) to provide research and analysis on
matters related to the nation's on-going economic development
For further information,
visit our website at
www.khazanah.com.my
10 | OUTLOOK FOR 2014
•In its 10th year of the transformation programme, Khazanah will fundamentally stay the
course of its revamp programme.
•General outlook in markets, economies and societal and political trends continue to be
cautious and uncertain, but there are also several bright pockets in various sectors and
geographies that we are invested in. Our overall investment stance remains cautious where
there is a premium on remaining alert and nimble.
•Ongoing work on strengthening Khazanah as an institution will continue into 2014.
•Thankfully, we enter 2014 from a position of relative strength financially and operationally.
• As such, we look forward to taking on both the challenges and opportunities of 2014 and the
medium term to 2016, mindful of three important milestones:
2014: 10th anniversary of the Khazanah revamp programme and 20th anniversary of
Khazanah;
2015: 10th anniversary and graduation of the GLC Transformation Programme; and
2016: 10th anniversary of the launch of Iskandar Malaysia.
10 TH KHAZANAH ANNUAL REVIEW
Review of 2013 & Outlook for 2014
20 JANUARY 2014



This brochure is printed on environmentally friendly paper.
Please recycle and help save our planet.
20 JANUARY 2014
14 May 2004
NWA
2004
01 | 2013 FINANCIAL PERFORMANCE
121.5
Net Worth Adjusted 33.3
G20 and K-7 are broadly
(“NWA”)
350
CAGR4
(p.a.)
14.0%
13.8%
13.9%
FBM KLCI
150
27.0
28.3
TNB
CIMB
Healthcare Aviation Others
(Net)
NWA
9.7
LEISURE & TOURISM
13.4 1.7%
11.8
103.5
(times)
10.4 9.6
11.4
6.9
3.7
02 | 10-YEAR FINANCIAL TRACK RECORD
RAV (RM bn)
K-7
90
9.7
134.9
17.1
+RM84.0bn
14.5
(+10.6% p.a.)
120
50.9
6.3
6.3
4.9
200
7.5
30
2.7
0
150
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013E
14 May 2004
31 Dec 2013
103.5
2004
CAGR4
(p.a.)
+RM70.2bn
p.a.)
100
+RM46bn
(+374%)
12
14.5
25
100=14/5/04
14 May 2004
1.2%
2013
CHINA
2.9%
RETURNS ("TSR")
SINGAPORE
Industry reforms
13.4
3.5%
12.9
+RM37bn
TOTAL
(+133%)SHAREHOLDERS’
11.8
28
-RM1bn
5 (-12%)
2013
10.5
9.7 64
2004 2
10.4 9.6
and K-7 are broadly
6.9 G20 11.4
350 in line with KLCI
7.5performance
+RM10bn
6.3
MALAYSIA
6.3
Financial restructuring and
(+600%)
MALAYSIA
4.9
89.9%
4
CAGR
careful regional expansion
112.7 89.6%
300
(p.a.)
INTERNSHIP
PROGRAMME
ALLIANCES
2013
31 Dec 2013
2004
59
+RM37bn
(+133%)
64
25.8 26.2
AGAINST REFERENCE ASIAN MARKETS
NWA
2004
Telcos
UEM
Group
3.5
TNB
CIMB
19.1%
LEISURE & TOURISM
1.7%
OTHERS
1.5%
TECHNOLOGY
1.0%
USTAINABLE DEV.
0.9%
AGRICULTURE
0.3%
LIFESCIENCES
0.3%
CREATIVE
Total
0.2%
Return
20135
CASH
3.8%
Healthcare Aviation Others
(Net)
Khazanah NWA
14.4%
INFRASTRUCTURE
& CONSTRUCTION
4.2%
7.3%
MOVEMENT SINCE MAY 2004
NWA
2013
-15%
-10% -5%
40%
RM bn
FBM KLCI
Straits Times Index
20%
11.1%
10.8%
MEDIA & COMMS
24.2%
-15% -10% -5%
4.8%
SENSEX
POWER
15.6%
MSCI Asia ex-Japan
12.8
18.9%
10%
21.3
HEALTHCARE
Hang Seng
Index
5.4%
11.6
33.3
0%
9.6%
TM
MALAYSIA
Axiata
CIMB
64.4%
0
-10%
FIG
MSCI Emerging
Markets
17.6%
5% 10% 15% 20%
-20%
NWA
2004
Telcos
UEM
Group
TNB
CIMB
50.9
Healthcare Aviation Others
(Net)
NWA
2013
1. Based on unaudited 2013 accountsMIDDLE
INDIA
2. RAV: Market value of all equities, securities
and cash held. Where no market price is available, a conservative estimate
OTHERS EAST 1.0% TURKEY
of value is used
0.8% LEISURE &1.2%
TOURISM
CASH INFRASTRUCTURE
0.7%
3. NWA: RAV less Total Liabilities and adjusted to measure
1.7%value created
3.8% & CONSTRUCTION
CHINA
4.2%
4. Compounded Annual Growth Rate
2.9%
OTHERS
5. In RM terms
1.5%
SINGAPORETRANSPORT
PROPERTY
Source: Bloomberg; Khazanah analysis
TECHNOLOGY
3.5%
6.7%
1.0%
10.9%
14.4%
(14.4%)
14 May 2004
10.8%
0
10%
8.6 (3.6) 3.7 103.5
ALLIANCES
11.6
-15% -10% -5%
15.8 5% 10% 15% 20%
KNOWLEDGE
SERIES
9%
Key changes to Boards
5%
10%
INTERNSHIP
PROGRAMME
SENSEX
MSCI Asia ex-Japan
DIVESTMENTS
2004
TELCOS
18.9%
14 May6.8%
2004
-
61+RM49bn
(+164%)
30
79
MILESTONES (2004 to 2013)
(+374%)
Regional
leadership
BANKING
59
+RM37bn
(+133%)
28
•Regional expansion
64
2013
Challenging global operating
environment
2 position
•National project •Strengthening
2004
market
•Turnaround and restructuring
Industry reforms
•Mergers and acquisitions
•Divestment of non-coreand
assets
Financial restructuring
careful regional expansion
+RM10bn
(+600%)
11
2013
37.2
16.4 of
Demerger
and streamlining
focus; regional growth strategy
INSURANCE
UEM GROUP
+RM9bn
(+782%)
2008 1
•De-layering
2013
•Recapitalisation and IPO7
•Taking private
•Merger
Collaboration with private sector
and focus on Iskandar Malaysia
11
Challenging global operating
environment
•Building regional platforms
6
5
-RM1bn
(-12%)
AVIATION
HEALTHCARE
Stay the course in
executing the
10 year GLCT
Programme
•Business Turnaround Plan
•Recapitalisation
•Launch of A380 service
•Takeover and consolidation
9.6%
31 Dec 2013
1
28%
co-invest with
private
sector
economy
investments
in line with
Jakarta
Composite
NEM
CORPORATE RESPONSIBILITY
14.3%
48%
58.1
2013
2004
•Demerger
(15.6%)
37.1%
MAS
2
Continue focus 5
0%
SCHOLARSHIPS
GLIC/GLC
on core operations:
TM Axiata
CIMB
TNB
MAHB Relentless
UEM drive to
level playing
field
ROLES IN
Sunrise
and exit non-core/
become regional
non-competitive19.1%
champions
NE M Khazanah NWA
assets
-10%
3 FBM KLCI
14.4%4
(15.6%)
-20%
7.3% and Straits
Times Index
Collaborate
Pursue new
(14.4%)
109
Collaboration with private sector
and focus on Iskandar Malaysia
24.2%
15.9%
GAINS ON
DIVESTMENTS
(RM bn)
2004 12
24.2%
33.3
AMOUNT
(RM bn)
2013
2013
37.1%
NO. OF
TRANSACTIONS
Financial
SELECTEDrestructuring
SIGNIFICANTand
TRANSACTIONS AND
careful regional expansion
+RM46bn
2004
Hang Seng Index
4.8% 12.8
MSCI Emerging Markets
33.3
20%
31 Dec 2013
Total
Return
(15.6%)
20135
21.3
25
48%
INVESTMENTS
Industry reforms
50
Jakarta Composite Index
5.4%
Regional
FROM 20042013 leadership
(+12.5% p.a.)
75
40%
9.6%
30%
FBM KLCI
Straits Times Index
14.3%
OVERSEAS
RM bn
35.6%
15.9%
Khazanah NWA
7.3%
MAS
TNB MAHB UEM
Sunrise
6.8%
19.1%
30
15.9%
6.8%
18.9%
28%
CORPORATE RESPONSIBILITY
06 | INVESTMENTS
AND DIVESTMENTS
+RM10bn
(+10.6% p.a.)
90
TSR (p.a.)
60
24.2%
15.8
10.9%
14.3%
8.6 (3.6) 3.7 103.5
30%
PROPERTY
(14.4%) TRANSPORTJakarta
Composite Index
6.7%
5% 10% 15% 20% 37.1%
SCHOLARSHIPS
10%
Demerger and streamlining of
focus; regional growth strategy
5%
28
48%
9%
79 SERIES
Challenging global operating
+RM46bn
2004 12
(+374%)
environment
Aggregate earnings increased
for G20 by RM16.5bn and for K-7
2013
by RM8.5bn from 2004 to 2013
CORPORATE RESPONSIBILITY
OTHER SELECTED NEIS
2
2004
G20
(+600%)
20.6
19.2
14.0%
May May May May May May May May May May Dec
2004 2005 K-7
2006Index
2007 2008
2009 2010 2011 2012 2013E
K-7
11
2013
04 05 06 07 08 09 10
11
12 13 13
NWA (RM bn)
17.1
G-20
Index
13.8%
+RM9bn
2008 1
Collaboration with private sector
250(+782%)
FBM
13.9%
STATEMENTS HIGHLIGHTS (RM m)
14.5
40%KLCI
37.1%
125FINANCIAL
RM bn
RAV (RM bn)
NWA11 (RM bn)
and focus on Iskandar Malaysia
+RM9bn
2013
2008 1
3.7 103.5
8.6
(3.6)
19.1%
11.8
Khazanah NWA
(+782%)
103.5
10.5
1 Cumulative 125
13.4
150 2009 2010 2011 2012
Financial Year 2004 200511.62006 2007 2008
200
2013
134.9
9.7
12.9
11
2013
30%
+RM70.2bn
100
14.4%
FBM KLCI
103.5
11.4
10.4 9.6
24.2%
(+12.5% p.a.)
6.9
2004
6
Challenging global
operating
12.8
+RM70.2bn
100
120 +RM84.0bn
Profit
7.5
-RM1bn
Straits19,083
Times Index
20% 18.9%
(+12.5%
p.a.)environment
(+10.6%
282
(831) 1,014 5,110 128
791
2,081p.a.)
5,342 7.3%
2,077 3,089
75
6.3
2013
2004
5150
6
6.3
100=14/5/04
15.9%
(-12%)
15.8
Before Tax
4.9
-RM1bn
90
(14.4%)
Jakarta Composite Index 75
2013
5
2.7
9.6%
(-12%)
6.8%
100 10%
50Dividends 21.3
30
30
100 1,000 100 100 500 3,000 14.3%
1,000 650Hang 6,510
May May May May May May May May May May Dec
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013E
Seng
Index
Declared33.3
60
50 04 05 06 07 08 09 10 11 12 13 13 MAS
50.9
0%
33.3
25Taxation
SENSEX
33.3
73
126 225 195 350 (25)
28
66 5.4%
188
57
1,283
TM Axiata CIMB TNB MAHB UEM
NWA (RM bn)
Sunrise
30
25RAV (RM bn)
10.8%
MSCI Asia ex-Japan
TOTAL
SHAREHOLDERS'
RETURNS
OF
K-7 COMPANIES SINCE MAY 2004
125
150
-10%
134.9
0
Total
14 May 2004
31 Dec 2013
103.5
0
0
Return
2013 PERFORMANCE OF PORTFOLIO
OF31PORTFOLIO
NWA
4.8%
MSCI Emerging
14DECOMPOSITION
May
14 May
2004
(15.6%)
5
Dec
2013 Markets
31 Dec 2013
+RM70.2bn
+RM84.0bn
100
20132004
120
-20%
100
5%
Collaboration with private+RM49bn
sector
2004
30
(+164%)
and focus on Iskandar Malaysia
KNOWLEDGE
AGGREGATE EARNINGS (RM bn)
28%
9%
CORPORATE RESPONSIBILITY
Financial restructuring and
OVERSEAS
careful regional expansion
35.6%
2013
SCHOLARSHIPS
48%
G20
17.1
0.8%
RM129bn
JOHO R
KNOWLEDGE
SERIES
5%
2013
0.7%
33.3
11
2013
20.6INDIA
Regional
leadership
MIDDLE
19.2
04
TRANSFORMATION
59
K-7 | GLC
6
OTHERS EAST 1.0% 2004
TURKEY
2013
50
0
25.8
by RM8.5bn from 2004 to 2013
2004
10.4 9.6
59
TOTAL COMMITTED INVESTMENTS
FROM 2006 TO 2013
10%
28%
KNOWLEDGE
SERIES
Regional leadership
MALAYSIA
MALAYSIA
89.9%
89.6%
125
K-7 Index (+12.5%
14.0%
G-20 Index 13.8%
13.4 250 FBM
75KLCI 13.9%
12.9
11.4
60
300
11.8
10.5
6.9
350
20.6
19.2
(15.6%)
37.1%
05 | NEW ECONOMY
INVESTMENTS
Khazanah
NWA
15% 20%
MIDDLE INDIA
MIDDLE INDIA
by TURKEY
geographic exposure 6
1.0%
EAST 1.0% TURKEY OTHERS EAST RAV
0.8%
0.8%
0.7% +RM37bn
1.2%
0.7%
20041.2% 28
(+133%)
CHINA
CHINA
TRANSPORT
Industry
PROPERTY
2.9%
2.9%reforms
6.7%
2013
64
10.9%
SINGAPORE
SINGAPORE
HEALTHCARE
3.5%
3.5%
INFRASTRUCTURE
& CONSTRUCTION
4.2% OTHERS
CASH
3.8%
RAV Cover 12.9
10.5
+RM46bn
(+374%)
2004 12
RAV by domicile of companies
2013
OTHERS
1.5%
TECHNOLOGY
7.5
1.0%
6.3
6.3
SUSTAINABLE DEV.
4.9
0.9%
11.1%
2.7
+RM10bnMALAYSIA
AGRICULTURE
2004 2
(+600%) 64.4%
0.3%
POWER
LIFESCIENCES
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013E
MALAYSIA
11
2013
15.6%
0.3%
MALAYSIA
MEDIA
& COMMS
89.9%
2004
30 CREATIVE+RM49bn
Demerger and streamlining of
(+164%)
89.6%
24.2%
0.2%
G20 and K-7 are broadly
Aggregate
earnings
increased
NWA
(RM
bn)
focus;FIGregional
growth strategy
+RM9bn
2013
79
2008 1
in line with KLCI performance
for G20 by RM16.5bn and for K-7
17.6%
(+782%)
26.2
(RM bn)
100
Aggregate
earnings increased
May May May May May May May May May May Dec
for G20
04 by
05RM16.5bn
06 07 and
08 for
09 K-7
10
11
12 13 13
25.8 26.2
by RM8.5bn from 2004 to 2013
150G20
NWA
2013
9%
+RM1.3bn
+RM20.6bn
K-7
(+4.9%) (+269.8%17.1
or 14.5% p.a.4)
3
134.9
UEM
Group
5% 10% 15% 20%
-20%
40%
10%
14.5
100=14/5/04
Telcos
-5%
RAV by major sectors
7.7
(RM bn)
Return
20135
(15.6%)
-20%
-10%
Healthcare Aviation Others NWA
-15% -10%
2013Emerging Markets
(Net) MSCI
4.8%
11.6
30%
LEISURE & TOURISM
CASH INFRASTRUCTURE
14.4%
FBM KLCI
ISKANDAR
24.2% MALAYSIA (SELECTED INVESTMENTS)
1.7%
3.8% & CONSTRUCTION
12.8
4.2%
18.9%
7.3%
Straits Times Index
20%
LEISURE & TOURISM
CASH INFRASTRUCTURE OTHERS
15.9%
& CONSTRUCTION 1.5%
1.7%
3.8% 15.8
TRANSPORT
4.2% TECHNOLOGY
PROPERTY
(14.4%)
Jakarta Composite Index
OTHERS
9.6%
6.7%
1.0%
10%
10.9%
4
1.5%
21.3
6.8%
TRANSPORT
PROPERTY
HEALTHCARE
TECHNOLOGY
SUSTAINABLE
DEV.
14.3%
Hang
Seng
Index
6.7%
1.0%
0.9% 10.9%
11.1%
MAS
0%
HEALTHCARE
SUSTAINABLE DEV. 33.3
INTERNSHIP
MALAYSIA
AGRICULTURE
5.4%
SENSEX
TM Axiata CIMB TNB MAHB UEM
0.9%
11.1%
PROGRAMME
0.3%
64.4%
4
Aggregate earnings increased
OVERSEAS
INTERNSHIP Sunrise
MALAYSIA
AGRICULTURE
POWER
LIFESCIENCES
10.8%
MSCI Asia ex-Japan
PROGRAMME
0.3%
for G20 by RM16.5bn and for K-7
-10%
64.4%
35.6% SCHOLARSHIPS
15.6%
OVERSEAS
0.3%
POWER
MEDIA
& COMMS
25.8 26.2
2004
30 Total +RM49bn
LIFESCIENCES
by RM8.5bn from 2004 to 2013
Demerger and streamlining
of
ALLIANCES
CREATIVE
(+164%)
35.6%
15.6%
0.3%
Return
4.8% MSCI Emerging Markets
24.2%
MEDIA & COMMS
0.2%
(15.6%)
ALLIANCES
CREATIVE
20135 79 FIG
focus; regional growth-20%
strategy
2013
24.2%
0.2%
FIG
17.6%
G20
20.6
NWA
Telcos
UEM
TNB
CIMB Healthcare Aviation Others NWA
-15% -10% -5%
5% 10% 15% 20%
2004
Group
19.2
17.6% (Net) 2013
3.3
RAV
TNBTotal
CIMB
∆ 2004-13
2.9
2
200
NWA
2004
103.5 +RM16.6bn
+RM70.2bn
(+19.1%) (+211.0% or 12.5% p.a. )
3.7
in line with KLCI performance
RAV/Liabilities
("RAV Cover") (x)
300
Shareholders’
K-7 Index
G-20 Index
Funds
250
UEM
Group
134.9 +RM13.4bn
+RM84.0bn
(+11.1%) (+164.8% or 10.6% p.a. )
86.9
3
c
3
WA
13
50.9
RM bn
∆ 2012-13
14 May 04 31 Dec 12 31 Dec 13
Realisable Asset Value2 (“RAV”)
Telcos
03 | PORTFOLIO
SEGMENTATION
8.6 (3.6) 3.7 103.5
19.1%5% 10%
-15% -10% -5%
1
PORTFOLIO AS AT (RM bn)
20135
14 May 200410.8% 31MSCI
Dec
2013
Asia
ex-Japan
31 Dec 2013
5.4%
Index
Hang Seng Index
SENSEX
6. An estimate of attributable value according to the countries where investee companies have operations
10.8%
MSCI Asia ex-Japan
Source: Bloomberg; companies’ financial reports; analyst consensus estimates
Totalfor 2013; PCG analysis; Khazanah analysis
Return
4.8% MSCI Emerging Markets
•IPO7
40%
30%
20%
•Co-investments
DIVESTMENTS
18.9%
•Comprehensive Collaboration •Financial restructuring
Framework
•Overseas presence
FUNDING
24.2%
15.9%
•Earn-out structure
10%
37.1%
6.8%
•Disposal of non-core assets
9.6%
•Groundbreaking exchangeable sukuks
SGD1.5bn
Islamic Medium
Term Notes
•Market placements
•Divestment to entrepreneurMAS
0%
TM Axiata CIMB TNB MAHB UEM
Sunrise
7. Initial Public Offering
-10%
Source: Iskandar Regional Development Authority ("IRDA"), Khazanah analysis
RMB500m
sukuk
•Inaugural sovereign sukuks