Continued progress and sustained performance in long-term value creation; across financial, strategic and value distribution performance

Realisable asset value (RAV) and net worth adjusted (NWA) are the two indicators used to measure Khazanah’s performance. RAV represents the total value of our investment portfolio while NWA measures the value created in our portfolio.

At at 31 December 2017, Khazanah’s RAV stood at RM157.2 billion. This represents an increase of 8.2% from RM145.3 billion at the end of 2016. Meanwhile, NWA stood at RM115.6 billion, an increase of 13.2% from RM102.1 billion at the end of 2016.

Long-term value creation remains on an uptrend. As at 31 December 2017, RAV had increased by RM106.3 billion, or 3.1 times from the RM50.9 billion recorded in May 2004, with a compounded annual growth rate (CAGR) of 8.6% per annum. 2004 was the year Khazanah received our new mandate. Similarly, our NWA had gained RM82.3 billion, or 3.5 times from RM33.3 billion over the same period, with a CAGR of 9.6% which is in tandem with the FBM-KLCI’s CAGR of 9.7% (see Portfolio Net Worth Adjusted Against FBM-KLCI Since May 2004 chart below).

Khazanah recorded a stronger profit before tax of RM2.9 billion in 2017, an increase of 81.3% from RM1.6 billion in 2016. Khazanah declared dividends of RM1 billion in 2017, bringing total dividends declared since May 2004 to RM10.11 billion. Our shareholders’ funds rose to RM41.4 billion in 2017 from RM37.8 billion in 2016, while liabilities remained manageable at RM51.2 billion.

Our capital position remains strong with asset cover and net gearing standing at 3.1 times and 1.1 times, respectively. These financial ratios have been achieved as a result of risk management and prudential measures that have been put in place over the years, enabling our portfolio to remain strong and resilient in a volatile environment and continue focusing on long term value creation.

Portfolio Performance

RAV1NWA2
14 MAY 200450.933.3
31 DEC 2016145.3102.1
31 DEC 2017157.2115.6
∆ 2016-17+RM11.9 b
(+8.2% p.a.)
+RM13.5 b
(+13.2% p.a.)
∆ 2004-17+RM106.3 b
(+8.6% p.a.3)
+RM82.3 b
(+9.6% p.a.3)
  1. RAV: Market value of all equities, securities and cash held; where no market price is available, a conservative estimate of value is used
  2. NWA: RAV less total liabilities and adjusted to measure value created
  3. Compounded Annual Growth Rate
  4. Note: Figures are rounded to nearest decimal point

As At 31 December 2017 | Source: Khazanah analysis

* Compounded annual growth rate for the period 14 May 2004 to 31 December 2017

Source: Bloomberg; Khazanah analysis

As at 31 Dec2017201620152014
RAV (RM m)157,204145,336150,169145,491
NWA (RM m)115,562102,115108,890110,716
Shareholders' Funds (RM m)41,36737,83136,35235,339
RAV / Liabilities (x)3.12.93.13.6
Number of Employees458458452465
Number of Offices8887

Swipe the table to view more >

Source: Bloomberg; Khazanah analysis
Note: From 14 May 2004 to 31 December 2017

Source: Bloomberg; Khazanah analysis
Note: in RM terms

K-8 includes CIMB, Malaysia Airports Holdings Berhad (MAHB), Malaysia Airlines System Berhad (Malaysia Airlines Berhad from 2015), Telekom Malaysia (TM), Tenaga Nasional Berhad (TNB), UEM Group, Axiata (from 2007) and IHH Healthcare Berhad (from 2010)

Source: Bloomberg; Khazanah analysis

Khazanah India Advisors Private Limited

Khazanah India Advisors Private Limited, which was opened in 2009, provides on-the-ground investment advisory support as well as helps to foster closer economic ties between Malaysia and India. The office also serves as a conduit for Indian companies exploring investment opportunities in Malaysia.

Financial Review

Strong financial capability and sustainable financial growth are vital towards fulfilling our commercial and strategic roles.

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