• 72% exposure to Asia and Singapore
• 11% exposure to North America and Europe, up from 8%
• Exposure to energy and resources doubled from 3% to 6%
• Financial Services down from 36% to 31%, mostly due to market prices
• 65% of investments in S$ denomination, followed by HK$ at 12%
 

- Steady transformation over 10 years
- Resilient portfolio at record S$198 billion
- Growing with the twin engines of Asia and Singapore
- Extending to other growth and mature economies
- Extending to proxies for growth such as resources and energy
- Robust Group Shareholder Equity at record S$158 billion
- Full financial flexibility with comfortable net cash position
 

• Net portfolio value

  • 31 March 2012 : S$198 billion 
  • 31 March 2011 : S$193 billion 
  • 31 March 2010 : S$186 billion 
  • 31 March 2009 : S$130 billion 
  • 31 March 2008 : S$185 billion 

• Total shareholder return as at 31 March 2012 in S$ terms

  • One-year          : 1.50% 
  • Three-year        : 15%  
  • 10-year             : 10%   
  • 20-year             : 15%  
  • Since inception : 17%  

• 10-year returns to Temasek by investment vintage

  • Investments held as at 31 March 2002:
    • 11% annualised returns between March 2002 and March 2012
  • Investments made after 31 March 2002:
    • 18% annualised returns between March 2002 and March 2012

• Active investor in Asia over last 10 years

  • Investments : S$139 billion 
  • Divestments : S$87 billion 

• Investment activities for the year ended 31 March 2012

  • New investments : S$22 billion  
  • Divestments        : S$15 billion 

• Group Shareholder Equity

  • 31 March 2012 : S$158 billion 
  • 31 March 2011 : S$155 billion 
  • 31 March 2010 : S$150 billion 
  • 31 March 2009 : S$118 billion 
  • 31 March 2008 : S$144 billion 

• Group Net Profit

  • 31 March 2012 : S$11 billion 
  • 31 March 2011 : S$13 billion 
  • 31 March 2010 : S$5 billion 
  • 31 March 2009 : S$6 billion 
  • 31 March 2008 : S$18 billion 
     

Singapore, Thursday 5 July 2012 –
Temasek Holdings (Private) Limited (Temasek) today released its latest annual performance review, Temasek Review 2012 – Extending Pathways.

In the financial year that ended 31 March 2012, Temasek Review 2012 reports a record year end portfolio value of S$198 billion, up from S$193 billion the previous year. Temasek also ended the financial year with a net cash position.
 

Building a Resilient Portfolio

2012 marks a decade since Temasek actively stepped up its investments beyond Singapore in 2002, reshaping and expanding its portfolio principally into Asia.

The Temasek portfolio has since grown from S$77 billion to S$198 billion over 10 years.

Mr S Dhanabalan, Chairman of Temasek Holdings, said:
“Over the last decade, we have built a diversified and resilient portfolio which is firmly anchored in Asia and Singapore and will grow with their continuing transformation over the longer term.”

A key performance measure for Temasek is Total Shareholder Returns or TSR, which includes dividends to and excludes capital injections from Temasek’s shareholder. This measures the compounded annual returns to Temasek’s shareholder as if it held Temasek’s portfolio directly. 

In Singapore dollar terms, TSR for the year was 1.50%. Three-year TSR was 15% compounded annually, with longer term 10-year and 20-year TSRs at 10% and 15% respectively. TSR since Temasek’s inception in 1974 was 17%.

Group shareholder equity was a record S$158 billion as at the end of the last financial year.  Group net profit was a healthy S$11 billion.

New investments made since March 2002 delivered over 18% annualised returns to Temasek over the last 10 years.  The older portfolio of investments, such as SingTel and Singapore Airlines that Temasek held as at end March 2002, delivered steady 11% annualised returns to Temasek over the same period.
 

Investing for the Long Term

Temasek has been an active investor over the past 10 years. Investments totalled almost S$140 billion with divestments at just under S$90 billion over the period. It continues to invest in sectors that are integral to growing and transforming economies with long term growth potential, in Asia and other regions.

In the last year, Temasek invested a total of S$22 billion and divested S$15 billion. Net investments for the year amounted to S$7 billion.

Investments in the energy and resources related sectors included:

• S$2 billion in FTS International, a US shale energy production service provider
• S$80 million in Clean Energy Fuels, the largest alternative transportation fuel provider in North America
• S$1.3 billion in The Mosaic Company, a US fertiliser producer.

In May this year, Temasek invested S$300 million in Cheniere Energy, the first US company to obtain all relevant regulatory approvals for the export of liquefied natural gas to the USA’s Free Trade Agreement partners. Other post March 2012 investments in this sector included Kunlun Energy of China, and Ivanhoe Mines, an international mining company with assets in Asia and Australia.

Among the investments in the consumer sector was Godrej Consumer Products, a leading consumer company in India.

Temasek‘s investments in major Chinese banks are long term proxies to the broader growing Chinese economy and its expanding middle income population. Last year, Temasek increased its H-share stake in China Construction Bank (CCB). Post March 2012, it added Industrial and Commercial Bank of China to its substantial portfolio of Chinese banks.

In Latin America, investments for the year included a S$126 million commitment to Integradora de Servicios Petroleros Oro Negro, an offshore oil and gas services company in Mexico. Post March 2012, Temasek invested S$160 million in Mexico’s eighth largest bank, Banco del Bajio.

Closer to home, Temasek partnered with Khazanah Nasional Berhad to form a 40:60 joint venture, M+S, to develop two landmark projects in Singapore.  A separate 50:50 joint venture, Pulau Indah Ventures Sdn Bhd, was formed to develop two wellness-related projects in Iskandar Malaysia, Johor.

In Singapore, Temasek joined leading international financial institutions to establish Clifford Capital to offer project financing for the region.  It also collaborated with the Singapore Ministry of Finance to sponsor Heliconia Capital Management to provide growth capital for Singapore-based small and medium-sized enterprises.

During the year, Temasek issued two Zero Coupon Temasek Exchangeable Bonds. One is a S$790 million issue due October 2014, exchangeable for ordinary shares of Standard Chartered PLC. The other, a S$500 million issue due December 2013, is exchangeable for ordinary shares of Li & Fung Limited.

Key divestments in the last financial year included Avago Technologies, PT Chandra Asri Petrochemical, Hutchison Port Holdings Trust, ICICI Bank, and Kaisa Group Holding.

Temasek ended the financial year with a robust underlying portfolio exposure of 42% to Asia, excluding Singapore, and 30% exposure to Singapore.

Ms Ho Ching, Executive Director and CEO of Temasek Holdings, said:
“Urbanisation and middle income population growth continue to underpin the long term transformation of Asia and other growth economies. Sectors such as energy, resources and consumer goods & services are proxies to the demographic drivers of growth, while technology in the media, computing and biotech may provide new break-through opportunities.”
 

Fostering Financial Discipline

The Temasek Review, Temasek Bonds and credit ratings are more than just public markers of Temasek’s credit quality. They expand Temasek’s stakeholder base, foster sound governance, and anchor its financial discipline over the long term.

To date, Temasek has issued S$10 billion triple-A rated Temasek Bonds under its Global Guaranteed Medium Term Note programme in Singapore dollars, US dollars and British pounds sterling. The 11 outstanding bonds have tenors of up to 40 years, and a weighted average maturity of about 15 years.

The financing framework of Temasek Bonds and the Temasek Euro-Commercial Paper Programme offers a flexible balance between long and short term funding options.
 

Strengthening Temasek

Temasek updated its charter during the year to capture its three roles as an active investor and shareholder, a forward looking institution, and a trusted steward.  The Temasek Charter is a living document to guide Temasek in delivering sustainable long term returns, while pursuing excellence with integrity, and striving for the advancement of its communities across generations.

Temasek further strengthened its leadership bench with the addition of several experienced industry leaders. It continued to nurture and promote younger leaders to deepen its capabilities and widen its capacity for the future.
 

Making a Difference

During the year, Temasek dedicated two endowments of S$35 million each to the late Dr Balaji Sadasivan, former neurosurgeon and Senior Minister of State, Ministry of Foreign Affairs, and the late philanthropist Dr Ee Peng Liang.

Managed by Temasek Cares, the Balaji Sadasivan Endowment and the Ee Peng Liang Endowment honour their significant roles and contributions, and provide funds for training and capability building initiatives in healthcare and social services, respectively, in Singapore.
 

Preparing for the future

Temasek’s four investment themes remain relevant for the decade ahead:

• Transforming Economies
• Growing Middle Income Populations
• Deepening Comparative Advantages; and
• Emerging Champions

These continue to guide Temasek’s investment strategy, even as the global economy remains volatile and uncertain.

According to OECD estimates, China and India will account for more than 50% of global middle income consumption by 2050. This in turn will drive demand for commodities, energy and resources; for consumer goods and services, including technology and biotechnology products; and for services as middle income population needs grow.

Mr Dhanabalan said:
“Asia’s long term growth potential remains healthy, though there will be structural and policy risks along the way, especially in the medium term. In the near term, Europe and the US present significant risks, as well as potential opportunities. We continue to stay in net cash, and have the full flexibility to respond to opportunities when they arise, or stay liquid depending on the risks ahead.”

Ms Ho added:
“As an investor owner, we take a long term view in striving to deliver sustainable value.  We invest not just for this generation but also for future generations.  We continue to create and extend pathways to open up new opportunities for ourselves and for others in our communities.  We have a resilient portfolio that will continue to deliver steadily over the long term.  Over the next few years, we will continue to maintain a relaxed watchfulness.”

-- END --

About Temasek

Incorporated in 1974, Temasek is an investment company based in Singapore, with 11 affiliates and offices in Asia and Latin America. Temasek owns a S$198 billion portfolio as at 31 March 2012, mainly in Singapore and Asia.

Temasek's investment themes centre on:

• Transforming Economies
• Growing Middle Income Populations
• Deepening Comparative Advantages
• Emerging Champions

Temasek’s portfolio covers a broad spectrum of industries: financial services; transportation, logistics and industrials; telecommunications, media & technology; life sciences, consumer & real estate; energy & resources.

Total shareholder return since inception in 1974 has been a healthy 17% compounded annually.

The company has a corporate credit rating of AAA/Aaa by rating agencies Standard & Poor's and Moody's respectively.

For more information on Temasek, please visit www.temasek.com.sg

To view or download the Temasek Review 2012, please visit www.temasekreview.com.sg

Temasek Review 2012 - Highlights (with US$ equivalents)
 

• Net portfolio value

  • 31 March 2012 : S$198 billion  US$157 billion
  • 31 March 2011 : S$193 billion  US$153 billion
  • 31 March 2010 : S$186 billion  US$133 billion
  • 31 March 2009 : S$130 billion  US$86 billion 
  • 31 March 2008 : S$185 billion  US$134 billion

• Total shareholder return as at 31 March 2012

  •                     S$ Terms   US$ Terms
  • One-year          : 1.50%             2%
  • Three-year        :   15%            22%
  • 10-year             :   10%            14%
  • 20-year             :   15%            16%
  • Since inception :   17%            19%

• Active investor in Asia over last 10 years

• Investments : S$139b  US$97 billion
• Divestments : S$87b   US$61 billion

• Investment activities for the year ended  31 March 2012

• New investments : S$22 billion   US$17 billion
• Divestments        : S$15 billion   US$12 billion

• Group Shareholder Equity

• 31 March 2012 : S$158 billion  US$126 billion
• 31 March 2011 : S$155 billion  US$123 billion
• 31 March 2010 : S$150 billion  US$107 billion
• 31 March 2009 : S$118 billion  US$78 billion
• 31 March 2008 : S$144 billion  US$105 billion

• Group Net Profit

  • 31 March 2012 : S$11 billion  US$9 billion
  • 31 March 2011 : S$13 billion  US$10 billion
  • 31 March 2010 : S$5 billion   US$3 billion
  • 31 March 2009 : S$6 billion   US$4 billion
  • 31 March 2008 : S$18 billion  US$13 billion

For media queries, please contact:

Tan Yong Meng
Director, Corporate Affairs
Tel: +65 6828 6651
E-mail: yongmeng@temasek.com.sg 

Kelvin Ng
Associate Director, Corporate Affairs
Tel: +65 6828 2423
E-mail: kelvinng@temasek.com.sg

Sharon Seetho
Director, Kreab Gavin Anderson
Tel: +65 6339 9110
E-mail: sseetho@kreabgavinanderson.com

Additional Information

• Media Conference Presentation Slides

• Temasek Review 2012 website

• Media Conference Selected Questions & Answers 

• Photo of panellists (From L to R):

• Tan Chong Lee, Chief Investment Officer and Co-Head, Americas;
• Chia Song Hwee, Head, Strategy, Head, Credit Portfolio, Co-Head, Portfolio Management,
  Co-Head, China and Co-Head, Singapore; and
• Dilhan Pillay Sandrasegara, Head, Portfolio Management, Head, Singapore,
  Head, Private Equity Funds Investment and Co-Head, Europe

• Photo of Tan Chong Lee

• Photo of Chia Song Hwee

• Photo of Dilhan Pillay Sandrasegara

• Biography of Panellists