GAMUDA BERHAD (29579-T)

Condensed Consolidated Income Statement

INDIVIDUAL QUARTER

CUMULATIVE PERIOD
Preceding Year

Revenue
Operating expenses

Current Year

Comparative

Current Year

Quarter

Quarter

To Date

Corresponding
Period

31-Jul-09

31-Jul-08

31-Jul-09

31-Jul-08

RM'000

RM'000

RM'000

RM'000

942,241

851,299

2,727,302

2,403,660

(2,581,200)

(2,125,794)

(913,231)

(782,748)

Other income

15,667

19,392

37,679

44,436

Profit from operations

Finance costs

44,677

87,943

183,781

322,302

(8,627)

(9,021)

(44,834)

(24,940)

Share of results of
associated companies
Profit before tax
Income tax expense
Profit for the year
Attributable to :Equity holders of the Company
Minority interests

44,366
80,416

57,278
136,200

143,210
282,157

173,452
470,814

(33,335)

(61,224)

(78,003)

(131,886)

47,081

74,976

204,154

338,928

43,294
3,787
47,081
5%

70,203
4,773
74,976
10%

193,689
10,465
204,154
7%

325,078
13,850
338,928
13%

Earnings per share attributable

to equity holders of the Company
Basic earnings per share (sen)

2.16

3.50

9.65

16.27

Fully diluted earnings per share (sen)

2.15

3.49

9.62

16.17

The Condensed Consolidated Income Statements should be read in conjunction with the Audited Financial Statements for the year
ended 31 July 2008 and the accompanying explanatory notes attached to the interim financial statements.

GAMUDA BERHAD (29579-T)

Condensed Consolidated Balance Sheet
As at

As at

31 July 09

31 July 08

RM'000

RM'000

364,419

288,130

ASSETS
Non-current assets
Property, plant and equipment
Investment properties

2,648

3,288

Prepaid land lease payment

Land held for property development
Investment in associated companies

6,650
482,678
1,286,680

7,232
519,277
1,510,822

Motorway development expenditure

326,271

326,809

65,747

68,189

733

733

Concession and quarry rights

Other investments
Deferred tax assets

23,114

13,777

Receivables

40,306

42,433

2,599,246

2,780,690

Property development costs

440,186

388,513

Inventories

101,082

110,122

1,079,815

1,319,735

379,319

304,635

Current assets

Receivables
Amount due from customers for construction contracts
Tax recoverable
Marketable securities
Cash and bank balances
TOTAL ASSETS

24,114

4,996

100,668

20,000

1,154,029

845,610

3,279,213

2,993,611

5,878,459

5,774,301

2,009,257

2,005,016

EQUITY AND LIABILITIES

Equity attributable to equity holders of the Company
Share capital
Reserves

1,151,754

1,046,566

Shareholders' equity

3,161,011

3,051,582

46,763

45,901

3,207,774

3,097,483

Minority interests
Total equity
Non-current liabilities
Other payables

15,651

28,736

Deferred tax liabilities

17,083

17,549

Long term borrowings

1,210,500

1,036,500

1,243,234

1,082,785

Short term borrowings

328,165

782,253

Payables

690,980

768,264

Amount due to customers for construction contracts

Income tax payable

393,488

17,524

Current liabilities

14,818

25,992

1,427,451

1,594,033

Total liabilities

2,670,685

2,676,818

TOTAL EQUITY AND LIABILITIES

5,878,459

5,774,301

1.57

1.52

Net assets per share attributable to

equity holders of the Company (RM)

The Condensed Consolidated Balance Sheets should be read in conjunction with the Audited Financial
Statements for the year ended 31 July 2008 and the accompanying explanatory notes
- attached to the interim financial statements.

GAMUDA BERHAD (29579-T)

Condensed Consolidated Statement of Changes in Equity
Attributable to equity holders of the Company

Current Year To date

At 1 August 2008

Share
Capital

Share
premium

Option
reserves

Other
reserves

Retained
profits

Total

Minority
Interests

Total
equity

RM'000

RM'000

RM'000

RM'000

RM'000

RM'000

RM'000

RM'000

2,005,016

27,353

15,366

89,150

914,697

3,051,582

45,901

Currency translation differences

13,076

13,076

Share of capital reserve in an associated company

3,064

3,064

(988)

Net income/(expenses) recognised directly in equity

16,140

16,140

(988)

3,097,483
12,088
3,064
15,152

Profit for the year

193,689

193,689

10,465

204,154

Total recognised income and expense for the year

16,140

193,689

209,829

9,477

219,306

4,241

3,432

7,673

7,673

14,780

14,780

14,780

(3,467)

Exercise of Employees' Share Options ("ESOS")

Share options granted under ESOS

Share options exercised under ESOS

Dividends
Distribution of profit in unincorporated subsidiary

1,204

At 31 July 2009

(120,590)
-

(2,263)
(120,590)
-

(8,615)

(2,263)
(120,590)
(8,615)

2,009,257

31,989

26,679

105,290

987,796

3,161,011

46,763

3,207,774

981,528

955,688

6,454

42,349

959,931

2,945,950

48,433

2,994,383

Currency translation differences

13,985

13,985

Share of capital reserve in an associated company

32,816

32,816

Net income/(expenses) recognised directly in equity

46,801

46,801

(13,561)

Profit for the year

325,078

325,078

13,850

338,928

Total recognised income and expense for the year

46,801

325,078

371,879

289

372,168

At 1 August 2007

(13,561)
-

424
32,816
33,240

Exercise of Employees' Share Options ("ESOS")

17,667

30,675

48,342

48,342

Conversion of warrants

10,858

29,860

40,718

40,718

994,963

(994,963)

Acquisition of shares in a subsidiary

4,694

4,694

Share options granted under ESOS

14,003

14,003

14,003

Share options exercised under ESOS

6,093

(5,091)

1,002

1,002

Dividends

(370,312)

Dividend paid by subsidiaries to minority shareholders

2,005,016

27,353

15,366

89,150

914,697

Bonus Issue

At 31 July 2008

(370,312)

(7,515)
3,051,582

45,901

(370,312)
(7,515)
3,097,483

The Condensed Consolidated Statement of Changes in Equity should be read in conjunction with the Audited Financial Statements for the year ended 31 July 2008 and the
accompanying explanatory notes attached to the interim financial statements.
3

GAMUDA BERHAD (29579-T)

Condensed Consolidated Cash Flow Statement
12 months ended
31-Jul-09
RM'000
Cash Flows From Operating Activities
Profit before tax
Adjustments for non-cash items/non-operating items
Operating profit before changes in working capital

31-Jul-08
RM'000

282,157
(67,722)
214,435

470,814
(139,904)
330,910

Net change in current assets

159,502

(798,398)

Net change in current liabilities

216,102

44,516

590,039

(422,972)

Dividend received from associated companies

172,407

Tax paid
Others
Net cash generated from/(used in) operating activities

(106,231)
(44,929)
611,286

226,611
(99,768)
(25,022)
(321,151)

Cash Flows From Investing Activities

Purchase of property, plant and equipment
Proceeds on disposal of plant and equipment
Capital repayment from an associated company

(56,991)
10,072
213,953

(56,830)
4,382
-

Purchase of land held for property development

(42,032)

(38,311)

(Purchase)/proceeds on maturity of marketable securities

(80,668)

5,000

Investment in associated companies

(20,522)

(66,100)

26,401

24,623

4,694

Changes in working capital

Cash generated from/(used in) operations

Interest received
Proceeds from a minority shareholder for issuance of shares
in a subsidiary
Net cash generated from/(used in) investing activities
Cash Flows From Financing Activities
Net proceeds from issuance of shares
Net (repayment)/drawdown of borrowings

50,213

(122,542)

7,673

89,060

(297,059)

Dividend paid to shareholders

Dividend paid by subsidiaries to minority shareholders
Distribution of profit to minority partners of unincorporated
subsidiaries
Net cash (used in)/generated from financing activities

(60,185)
(8,615)
(358,186)

Net increase/(decrease) in cash and cash equivalents

Effects of exchange rate changes
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year

303,313
5,106
845,610
1,154,029

602,430
(370,312)
(7,515)
313,663
(130,030)
(4,629)
980,269
845,610

The Condensed Consolidated Cash Flow Statement should be read in conjunction with the Audited
Financial Statements for the year ended 31 July 2008 and the accompanying explanatory notes attached
to the interim financial statements.

Gamuda Berhad (29579-T)

Quarterly Report On Consolidated Results
For The Financial Quarter Ended 31 July 2009
Notes To The Financial Statements
1.

2.

Basis of Preparation
a)

The interim financial report is unaudited and has been prepared in accordance with Financial Reporting
Standard (FRS) 134: Interim Financial Reporting.

b)

The interim financial report should be read in conjunction with the audited financial statements of the
Group for the year ended 31 July 2008.

c)

The accounting policies and methods of computation adopted by the Group are consistent with those
adopted in the preparation of the financial statements for the year ended 31 July 2008.

Audit Report of Preceding Annual Financial Statements

The audit report of the Groups annual financial statements for the year ended 31 July 2008 was not subject to
any qualification.

3.

Seasonal or Cyclical Factors

The business operations of the Group are not affected by any significant seasonal or cyclical factors.

4.

Unusual Items
There are no unusual items affecting assets, liabilities, equity, net income or cash flows for the current quarter
under review.

5.

Changes in Estimates
There are no changes in estimates of amounts reported previously that have any material effect in the current
quarter under review.

6.

Changes in Debt and Equity Securities

There were no cancellations, repurchases, resale of equity securities during the financial year, except for the
issuance of 4,241,000 new ordinary shares of RM1 each, pursuant to the exercise of the Employees Share
Option.

Gamuda Berhad (29579-T)

Quarterly Report On Consolidated Results
For The Financial Quarter Ended 31 July 2009
Notes To The Financial Statements
7.

Segmental Analysis
Engineering
and Construction

Property
Development

Water related
and Expressway
Concessions

Intersegment
Elimination

Total

RM'000

RM'000

RM'000

RM'000

RM'000

12 months period
ended 31 July 2009
Revenue
External
Inter segment

2,219,518
7,445

407,364
-

100,420
-

2,226,963

407,364

100,420

81%

15%

4%

Percentage of segment revenue-external

(7,445)

2,727,302
-

(7,445)

2,727,302

Segment results
Profit from operations
Finance costs

63,150

70,173

50,717

(259)

183,781

(24,058)

(10,199)

(10,836)

259

(44,834)

Share of results of
associated companies
Profit before tax

14,147

129,063

143,210

39,092

74,121

168,944

282,157

14%

26%

60%

Percentage of segment results

Income tax expense

(78,003)
204,154

Profit for the year

Margin = PBT/Revenue*

2%

15%

27%

8%

Attributable to:Equity holders of the Company

193,689

Minority interests

10,465
204,154

12 months period
ended 31 July 2008
Revenue
External

1,825,161

472,810

105,689

2,403,660

Inter segment

26,203
1,851,364

472,810

105,689

(26,203)
(26,203)

2,403,660

76%

Percentage of segment revenue-external

20%

4%

Segment results
Profit from operations

142,896

57,177

(1,346)

322,302

Finance costs
Share of results of
associated companies

(13,350)

(2,136)

(10,800)

1,346

(24,940)

30,755

142,697

173,452

Profit before tax

129,546

152,194

189,074

470,814

28%

32%

40%

Percentage of segment results

123,575

Income tax expense

(131,886)

Profit for the year

338,928

Margin = PBT/Revenue*

7%

27%

Attributable to:Equity holders of the Company

Minority interests

32%

16%

325,078
13,850
338,928

*Revenue used in the calculation of margin includes share of associates' revenue

Gamuda Berhad (29579-T)

Quarterly Report On Consolidated Results
For The Financial Quarter Ended 31 July 2009
Notes To The Financial Statements
8.

Valuation of Property, Plant and Equipment

The valuation of land and buildings has been brought forward without amendment from the previous audited
financial statements.

9.

Material Events Subsequent to Balance Sheet Date

There are no material events subsequent to the end of the quarter under review.

10.

Changes in Composition of the Group

On 23 July 2009, Gamuda has acquired the entire issued and paid up capital of Klasik Mentari Sdn Bhd
(KMSB), comprising 2 ordinary shares of RM1.00 each for a cash consideration of RM2.00. KMSB was
incorporated on 23 June 2009 and is presently dormant.

11.

12.

Dividends
a)

The Board of Directors does not recommend the payment of any final dividend in respect of the financial
year ended 31 July 2009.

b)

The total dividend per share for the current financial year is 8.00 sen less 25% taxation. For the
preceding years corresponding period, a total dividend per share of 25.00 sen less 26% taxation was
declared.

Dividends Paid
12 months ended
31 July
2009
RM000
For the year ended 31 July 2009: Interim dividend of 4.00 sen
less 25% taxation (2008 : Interim dividend of 25.00 sen less 26%
taxation)

60,185

2008
RM000

370,312

For the year ended 31 July 2009, an approved second interim dividend of 4.00 sen less 25% taxation was paid
on 18 Aug 2009, amounting to RM60,405,000.

13.

Changes in Contingent Liabilities or Contingent Assets

Performance and retention sum guarantees

31 July 2009
RM000

31 July 2008
RM000

842,307

1,013,329

The contingent liabilities mainly relate to advance payment guarantees and performance bonds for the
construction projects undertaken by the Group.

Gamuda Berhad (29579-T)

Quarterly Report On Consolidated Results
For The Financial Quarter Ended 31 July 2009
Notes To The Financial Statements
14.

Review of Performance
For the current quarter under review, the Group recorded revenue and profit before tax of RM942.2 million
and RM80.4 million respectively as compared to RM851.3 million and RM136.2 million respectively in the
corresponding preceding quarter. For the current year to date, the group recorded revenue and profit before tax
of RM2,727.3 million and RM282.2 million respectively as compared to RM2,403.7 milllion and RM470.8
million respectively in the corresponding preceding year. The decrease in profit before tax is primarily due to
lower contributions from all divisions arising from the challenging economic environment.

15.

Comparison with Immediate Preceding Quarters Results

For the current quarter under review, the Group recorded profit before tax of RM80.4 million, which is higher
than the immediate preceding quarters profit before tax of RM63.1 million. The higher profit before tax is
primarily due to the contract price adjustments from the New Doha International Airport Project (Qatar).

16.

Next Years Prospects

(a)

Construction Division
Electrified Double Tracking Railway Project
The work progress is slightly behind schedule due to late handover of land by the authorities. Under the terms
of the contract signed by the project company and the Government of Malaysia, all land should be handed
over to the project company early this year but, to-date, only 88% has been handed over. The progress is
expected to pick up pace in the next financial year when the balance of the land is handed over.
New Doha International Airport Project (Qatar)
On 30 July 2009, Sinohydro-Gamuda-WCT Joint Venture was awarded a sum of RM740 million as additional
works and settlement in respect of all the outstanding counter-proposals in respect of the variation orders,
contractors claims and scope changes. To-date the total contract value has now increased from the original
contract sum of RM1,750 million to RM3,272 million.
Yenso Park and Sewage Treatment Plant Projects (Vietnam)
Yenso Park and Sewage Treatment Plant projects are progressing well on schedule.

(b)

Property Division
The recent two quarters results have improved compared to the first two quarters of the financial year. The
property market is recovering well as product launches such as shop offices in Kota Kemuning and bungalows
in Valencia were fully taken up. Stabilized by an improving economic outlook and affordable interest rate
environment, the property sector is gaining momentum and is expected to perform better in the next financial
year.

(c)

Water-related Concession Division

Following the acceptance by Splash of Selangor State Government (SSG)s revised offer to take over its
water-related assets and operations for an estimated gross price of RM2,975 million, SPLASH is currently
waiting for the SSGs instruction to complete the transaction.
Overall prospects
Overall, the Groups performance is expected to improve in the next financial year.

Gamuda Berhad (29579-T)

Quarterly Report On Consolidated Results
For The Financial Quarter Ended 31 July 2009
Notes To The Financial Statements
17.

Variance from Profit Forecast and Profit Guarantee

This is not applicable to the Group.

18

Tax Expense
3 months ended
31 July
2009
2008
RM000
RM000

The taxation is derived as below:

Malaysia income tax

33,335

12 months ended
31 July
2009
2008
RM000
RM000

61,224

78,003

131,886

The Groups effective tax rate (excluding the results of associates which is equity accounted net of tax) for the
current period is higher than the statutory tax rate primarily due to certain expenses not being deductible for
tax purposes.

19.

Profits/(Losses) on Sale of Unquoted Investments/Properties

There is no sale of investments/properties for the current financial year under review.

20.

Quoted Investments
There were no transactions on quoted investments in the current financial year under review.

21.

Status of Corporate Proposal Announced

There is no corporate proposal announced but not completed at a date not earlier than 7 days from the issue of
this report.

Gamuda Berhad (29579-T)

Quarterly Report On Consolidated Results
For The Financial Quarter Ended 31 July 2009
Notes To The Financial Statements
22.

Group Borrowings and Debt Securities

The details of the Groups borrowings as at end of current quarter are as follows:

Note
Short Term Borrowings
Revolving Credits:
- denominated in US Dollar (USD)
Commercial Papers (Horizon Hills)
Term Loan (Gamuda Water)

Foreign
Currency
000

At 31 July 09
RM
Equivalent
000

75,550

268,165
35,000
25,000
328,165

Long Term Borrowings

Medium Term Notes (Bandar Botanic)
Medium Term Notes (Horizon Hills)
Medium Term Notes (Gamuda Berhad)
Term Loan (Smart Project)
Term Loan (Jade Homes)

300,000
100,000
480,000
161,500
169,000
1,210,500
1,538,665

Total

Note:
1. The term loan for Smart Project was obtained by a jointly controlled entity, Syarikat Mengurus Air Banjir &
Terowong Sdn Bhd in relation to the motorway development of the Stormwater Channel and Motorway
Works. The term loan is secured on the Smart Project and is on a non-recourse basis to Gamuda Group.
The term loan is consolidated into Gamuda Groups borrowings as a result of the Groups adoption of the
revised FRS 131-Interests in Joint Ventures, whereby the interests in the jointly controlled entities are
proportionately consolidated.

23.

Off Balance Sheet Financial Instruments

The Group has entered into forward foreign currency contracts to limit its exposure to potential changes in
foreign exchange rates with respect to estimated receipts and payments denominated in foreign currency.
The details of the outstanding forward foreign currency contracts are as follows:

Forwards used to hedge receivables in USD

Contract amount

Maturity period

USD 13.06mil

Oct 2009 Mar 2010

There is minimal credit and market risk as the contracts are entered with a reputable bank.

10

Gamuda Berhad (29579-T)

Quarterly Report On Consolidated Results
For The Financial Quarter Ended 31 July 2009
Notes To The Financial Statements
24.

Material Litigations
1) W&F filed the Writ of Summons and a Statement of Claim (the Court Action) against the JV for interalia, a court declaration that the JV is in breach of the sub-contract dated 16th April 2003 (the SubContract) by failing to make payment for the sum of RM102,366,880.42 awarded by the Dispute
Adjudication Board (DAB) to W&F in respect of various claims arising out of the Sub-Contract and for
damages of the same amount.
2) On 15th May 2009, the Court allowed the JVs application for stay of proceedings of the Court Action and
unconditionally stayed the Court Action initiated by W&F.
3) On 1st June 2009, W&F filed an appeal against the Courts decision to stay the proceedings.
4) The hearing date for W&Fs application for summary judgment and appeal against the stay of
proceedings has been fixed for hearing on 30th October 2009.
5) On 17th December 2008, in accordance with the terms of the Sub-Contract, the JV commenced arbitration
proceedings by serving on W&F a notice of arbitration. W&F also commenced arbitration proceedings by
filing its Notice of Arbitration on 15th January 2009. A preliminary meeting between the Arbitral Tribunal
members and the parties respective solicitors was held on 17th September 2009 for the purpose of setting
down time lines and directions for the conduct of the arbitration. The time lines and directions are now
pending finalization.
Other than the above litigation, there is no other material litigation since the last annual balance sheet date
to a date not earlier than seven (7) days from the date of issue of this report.

11

Gamuda Berhad (29579-T)

Quarterly Report On Consolidated Results
For The Financial Quarter Ended 31 July 2009
Notes To The Financial Statements
25.

Earnings Per Share

Current
Quarter
31 July
2009

Current
Year To Date
31 July
2009

43,294

193,689

Number of ordinary shares in issue as at 1 August 2008 (000)

Effect of shares issued during the period (000)

2,005,016
3,032

2,005,016
1,642

Weighted average number of ordinary shares in issue (000)

2,008,048

2,006,658

2.16

9.65

43,294

193,689

2,008,048
10,103

2,006,658
6,044

2,018,151

2,012,702

2.15

9.62

Basic
Net profit attributable to shareholders (RM000)

Basic earnings per ordinary share (sen)

Diluted
Net profit attributable to shareholders (RM000)

Weighted average number of ordinary shares in issue (000)

Assumed shares issued from exercise of ESOS (000)
Adjusted weighted average number of ordinary shares
for calculating diluted earnings per ordinary share (000)
Fully diluted earnings per ordinary share (sen)

12