E2CB5104916880CD4825 - Singapore Post...Note 1 Included the net book value of the Group’s headquarters at Singapore Post Centre (SPC) of S$297.3 million as at 31 March 2008. On adoption

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SingPost Group's unaudited results for the fourth quarter and financial year ended 31 March 2008 * Financial Statement And Dividend Announcement

* Asterisks denote mandatory information

Name of Announcer * SINGAPORE POST LIMITED

Company Registration No. 199201623M

Announcement submitted on behalf of SINGAPORE POST LIMITED

Announcement is submitted with respect to *

SINGAPORE POST LIMITED

Announcement is submitted by * Leong Chee Sian (Ms)

Designation * Company Secretary

Date & Time of Broadcast 30-Apr-2008 17:07:39

Announcement No. 00093

>> Announcement DetailsThe details of the announcement start here ...

For the Financial Period Ended * 31-03-2008

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Page 1 of 1FINANCIAL STATEMENT AND DIVIDEND ANNOUNCEMENT

30/04/2008http://info.sgx.com/webcorannc.nsf/vwprint/E2CB5104916880CD4825743900217D9F?OpenDocum...

SINGAPORE POST LIMITED AND ITS SUBSIDIARIES

(Registration number: 199201623M)

SGXNET ANNOUNCEMENT UNAUDITED RESULTS FOR THE

FOURTH QUARTER AND FINANCIAL YEAR ENDED 31 MARCH 2008

1

PART I INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (Q1, Q2 & Q3), HALF YEAR AND FULL YEAR RESULTS

(1)(a)(i) Income statement for the group, together with a comparative statement for the

corresponding period of the immediately preceding financial year.

FY2007/08 FY2006/07 FY2007/08 FY2006/07Q4 Q4 Variance Full Year Full Year Variance

S$'000 S$'000 % S$'000 S$'000 %

119,046 112,645 5.7% 472,595 436,045 8.4%

- Rental and property-related 6,493 5,236 24.0% 23,914 20,238 18.2%- Miscellaneous 448 717 (37.5%) 9,323 7,682 21.4%

(33,880) (30,324) 11.7% (125,057) (114,935) 8.8%(31,081) (26,984) 15.2% (121,444) (105,196) 15.4%(11,612) (10,358) 12.1% (40,759) (38,013) 7.2%(11,652) (6,413) 81.7% (31,218) (25,539) 22.2%(2,523) (1,906) 32.4% (11,005) (9,738) 13.0%(2,233) (2,523) (11.5%) (9,017) (10,681) (15.6%)

(92,981) (78,508) 18.4% (338,500) (304,102) 11.3%

2,891 1,761 64.2% 8,200 6,554 25.1%

35,897 41,851 (14.2%) 175,532 166,417 5.5%

(1,314) (3,150) (58.3%) (25,758) (26,160) (1.5%)

34,583 38,701 (10.6%) 149,774 140,257 6.8%

34,471 38,579 (10.6%) 149,277 139,761 6.8%112 122 (8.2%) 497 496 0.2%

34,583 38,701 (10.6%) 149,774 140,257 6.8%

35,045 42,258 (17.1%) 175,328 169,265 3.6%

33,654 34,050 (1.2%) 140,010 130,751 7.1%

- Basic 1.793 cents 2.014 cents 7.766 cents 7.298 cents- Diluted 1.792 cents 2.012 cents 7.760 cents 7.289 cents

Administrative and other expensesDepreciation and impairmentSelling expensesFinance expenses

Revenue

Other gains (net)

Labour and related expensesVolume-related expenses1

Total expenses

Profit before income tax

Share of profit of associated companies and joint ventures

Income tax expense

Total profit

Attributable to:Equity holders of the Company

equity holders of the Company during the period:

Minority interest

Operating Profit 2

Underlying Net Profit 3

Earnings per share for profit attributable to the

Notes

1 Volume-related expenses comprise mainly traffic and mail outsourcing expenses. 2 Operating profit for the purposes of paragraph 8 “Review of the performance of the Group” is defined

as profit before interest, tax and share of profit of associated companies and joint ventures. 3 Underlying net profit is defined as profit after tax and minority interest before one-off items and gains

and losses on property, plant and equipment and is derived as follows:

2


S$'000 S$'000 % S$'000 S$'000 %

34,471 38,579 (10.6%) 149,277 139,761 6.8%

Add: (85) - N.M. 650 - N

Add: 4,879 - N.M. 4,879 - N

Less: 401 (2) N.M. (7,265) (5,332) 36.3%

Less: (182) - N.M. (1,701) - N

Less: (5,830) - N.M. (5,830) (1,429) @

Less: - (4,527) (100.0%) - (2,249) (100.0%)

33,654 34,050 (1.2%) 140,010 130,751 7.1%

(Gain)/loss on sale of investments, property, plant and equipment

Share of one-off gain from Spring JV on sale of US business

Underlying Net Profit

Profit attributable to equity holders of the Company

Share of one-off restructuring provision/(write-back of provision) from Spring JV

Over-provision of tax in respect of prior years

One-off impact from the reduction in tax rate from 20% to 18%

Impairment of property, plant and equipment

.M.

.M.

.M.

N.M. Not meaningful. @ Denotes variance exceeding 300%.

(1)(a)(ii)


S$'000 S$'000 % S$'000 S$'000 %

Other operating income and interest income 6,941 5,953 16.6% 33,237 27,920 19.0%Interest on borrowings 2,288 2,532 (9.6%) 9,167 10,818 (15.3%)Depreciation and amortisation 6,782 6,422 5.6% 26,375 25,575 3.1%

60 (9) N.M. 120 208 (42.3%)Foreign exchange gains 514 294 74.8% 926 912 1.5%

5,830 - N.M. 5,830 1,429 @

(401) 2 N.M. 7,265 5,332 36.3%

Impairment/(write-back) of doubtful debts and bad debts written off

Gains / (losses) on sale of investments, property, plant and equipment

Adjustments for overprovision of tax in respect of prior years

N.M. Not meaningful. @ Denotes variance exceeding 300%.

3

(1)(b)(i) Balance sheet (for the issuer and group), together with a comparative statement as at the end of the immediately preceding financial year.

Mar-08 Mar-07 Mar-08 Mar-07S$’000 S$’000 S$’000 S$’000

ASSETSCurrent assetsCash and cash equivalents 104,142 68,981 100,445 65,600Trade and other receivables 71,183 63,658 51,763 44,128Inventories 169 118 166 89Other current assets 6,457 6,000 5,032 4,775

181,951 138,757 157,406 114,592

Non-current assetsTrade and other receivables 375 443 9,874 8,774

91,586 87,354 83,372 83,372Investments in subsidiaries - - 12,105 12,105Investment property1 211,291 - 215,832 -Property, plant and equipment1 259,463 492,237 250,422 488,680Intangible asset 288 324 288 324Derivative financial instruments 2,438 - 2,438 -Other non-current asset - 200 - 200

565,441 580,558 574,331 593,455

Total assets 747,392 719,315 731,737 708,047

LIABILITIESCurrent liabilitiesTrade and other payables 164,918 150,910 166,329 152,500Current income tax liabilities 36,955 41,135 36,238 40,352Deferred income 70 - 70 -

201,943 192,045 202,637 192,852Non-current liabilitiesBorrowings 302,077 316,319 302,077 316,319Derivative financial instruments - 3,168 - 3,168Deferred income tax liabilities 17,414 18,623 16,916 18,127Deferred income 374 - 374 -

319,865 338,110 319,367 337,614

Total liabilities 521,808 530,155 522,004 530,466

NET ASSETS 225,584 189,160 209,733 177,581

EQUITY

Share capital 113,053 107,459 113,053 107,459Other reserves 5,800 4,571 1,982 1,678Retained earnings 102,561 73,415 94,698 68,444

221,414 185,445 209,733 177,581Minority interest 4,170 3,715 - -Total equity 225,584 189,160 209,733 177,581

Investments in associated companies and joint ventures

Capital and reserves attributable to the Company’s equity holders

The Group The Company

4

Note 1 Included the net book value of the Group’s headquarters at Singapore Post Centre (SPC) of

S$297.3 million as at 31 March 2008. On adoption of FRS 40 on 1 April 2007, it has been split into 2 parts as follows:


Property, plant and equipment 85,968 304,125 81,427 304,125Investment property 211,291 - 215,832 -

297,259 304,125 297,259 304,125


The Group and the Company have reclassified S$211.3 million and S$215.8 million respectively from property, plant and equipment to investment property as at 31 March 2008, representing the portion of SPC that was rented out for the Group and the Company. No adjustments to the comparatives have been made in accordance with the transitional provisions of FRS 40.

(1)(b)(ii) In relation to the aggregate amount of the group’s borrowings and debt securities.

Mar-08 Mar-07S$’000 S$’000

Amount repayable in one year or less or on demand - - Amount repayable after one year:- Bank term loan (unsecured) - 19,920- Bonds (unsecured) 302,077 296,399

302,077 316,319

(a) The bank term loan of principal amount S$60 million obtained on 6 March 2006 for the Group’s general operational purposes was fully repaid in Q1 FY 2007/08.

(b) The Singapore Dollar unsecured bonds of principal amount S$300 million listed

on the SGX-ST have a maturity period of 10 years from 11 April 2003 and a fixed interest rate of 3.13% per annum.

Details of any collateral.

Not applicable.

5

(1)(c) Cash flow statement (for the group), together with a comparative statement for the corresponding period of the immediately preceding financial year.

FY2007/08 FY2006/07 FY2007/08 FY2006/07Q4 Q4 Full Year Full Year

S$’000 S$’000 S$’000 S$’000

34,583 38,701 149,774 140,257

Income tax expense 1,314 3,150 25,758 26,160Amortisation of franchise fees received - (4) - (57)Amortisation of licence fee 9 9 36 36Depreciation and impairment 11,652 6,413 31,218 25,539(Gain)/loss on disposal of property, plant and equipment 401 (2) (7,265) (5,332)Share-based staff costs 214 193 890 921Interest expense 2,288 2,532 9,167 10,818Interest income (193) (355) (1,021) (1,279)Impairment/(reversal of impairment) of other non-current asset (26) - 174 -

(2,891) (1,761) (8,200) (6,554)12,768 10,175 50,757 50,252

47,351 48,876 200,531 190,509

Inventories 32 682 (51) (113)Trade and other receivables (7,637) (7,411) (7,984) (13,662)Trade and other payables 5,932 (668) 12,363 11,419

45,678 41,479 204,859 188,153(4,912) (3,212) (31,147) (27,308)40,766 38,267 173,712 160,845

- - 6,110 6,100243 354 1,076 1,273

- - (412) -- - (937) (100)- - 172 -

(1,912) (3,285) (12,836) (8,492)16 105 12,098 8,066

(1,653) (2,826) 5,271 6,847

(24,053) (23,977) (120,131) (105,349)- - - (240)

(18) (276) (9,188) (10,330)891 2,021 5,008 3,950

- (10,000) (20,000) (40,000)11 - 489 -

(23,169) (32,232) (143,822) (151,969)

15,944 3,209 35,161 15,72388,198 65,772 68,981 53,258

104,142 68,981 104,142 68,981

The Group

Proceeds from grants

Total profit

Adjustments for:

Share of profit of associated companies and joint ventures

Operating cash flow before working capital changes Changes in operating assets and liabilities

Cash generated from operationsIncome tax paidNet cash inflow from operating activities

Proceeds from winding down of a joint venture

Dividends paid to a minority shareholder

Cash flows from investing activitiesDividends received from joint venture companiesInterest receivedInvestment in an associated company

Net cash inflow/(outflow) from investing activities

Cash flows from financing activitiesDividends paid to shareholders

Investment in a joint venture company

Purchase of property, plant and equipmentProceeds from sale of property, plant and equipment

Cash and cash equivalents at beginning of financial periodCash and cash equivalents at end of financial period

Cash flows from operating activities

Repayment of bank term loan

Net cash outflow from financing activities

Net increase in cash and cash equivalents held

Interest paidProceeds from issue of shares

6

(1)(d)(i) Statement (for the issuer and group) of all changes in equity, together with a comparative statement for the corresponding period of the immediately preceding financial year.

The Group – Q4

Share Other Retained Minority Totalcapital reserves earnings Total interest equity

S$’000 S$’000 S$’000 S$’000 S$’000 S$’000

Balance at 1 January 2008 112,054 4,910 92,143 209,107 4,097 213,204

Currency translation differences - 910 - 910 (39) 871Cash flow hedges - (126) - (126) - (126)Net gain / (loss) recognised directly in equity - 784 - 784 (39) 745

Net profit - - 34,471 34,471 112 34,583Total recognised gains - 784 34,471 35,255 73 35,328

Dividends - - (24,053) (24,053) - (24,053)

Employee share option scheme:- Value of employee services - 214 - 214 - 214- Proceeds from shares issued 999 (108) - 891 - 891

Balance at 31 March 2008 113,053 5,800 102,561 221,414 4,170 225,584113,053 5,800 102,561 221,414 4,170 225,584

Balance at 1 January 2007 105,187 4,656 58,813 168,656 3,588 172,244

Currency translation differences - (246) - (246) 5 (241)Cash flow hedges - 219 - 219 - 219Net gain / (loss) recognised directly in equity - (27) - (27) 5 (22)

Net profit - - 38,579 38,579 122 38,701Total recognised gains / (losses) - (27) 38,579 38,552 127 38,679

Dividends - - (23,977) (23,977) - (23,977)

Employee share option scheme:- Value of employee services - 193 - 193 - 193- Proceeds from shares issued 2,272 (251) - 2,021 - 2,021

Balance at 31 March 2007 107,459 4,571 73,415 185,445 3,715 189,160

Attributable to equity holders of the Company

7

The Group – Full Year

Share Other Retained Minority Totalcapital reserves earnings Total interest equity

S$’000 S$’000 S$’000 S$’000 S$’000 S$’000

Balance at 1 April 2007 107,459 4,571 73,415 185,445 3,715 189,160

Currency translation differences - 949 - 949 (42) 907Cash flow hedges - (24) - (24) - (24)Net gain / (loss) recognised directly in equity - 925 - 925 (42) 883

Net profit - - 149,277 149,277 497 149,774Total recognised gains - 925 149,277 150,202 455 150,657

Dividends - - (120,131) (120,131) - (120,131)


Balance at 31 March 2008 113,053 5,800 102,561 221,414 4,170 225,584113,053 5,800 102,561 221,414 4,170 225,584

Balance at 1 April 2006 103,057 4,424 39,003 146,484 3,456 149,940

Currency translation differences - (479) - (479) 3 (476)Cash flow hedges - 157 - 157 - 157Net gain / (loss) recognised directly in equity - (322) - (322) 3 (319)

Net profit - - 139,761 139,761 496 140,257Total recognised gains / (losses) - (322) 139,761 139,439 499 139,938

Dividends - - (105,349) (105,349) - (105,349) - - - - (240) (240)


Balance at 31 March 2007 107,459 4,571 73,415 185,445 3,715 189,160

Attributable to equity holders of the Company

Dividend relating to minority shareholders

8

The Company – Q4

Share Other Retained Totalcapital reserves earnings equity

S$’000 S$’000 S$’000 S$’000

Balance at 1 January 2008 112,054 1,876 87,271 201,201

Net profit - - 31,480 31,480

Total recognised gains - - 31,480 31,480

Dividends - - (24,053) (24,053)

Employee share option scheme:- Value of employee services - 214 - 214- Proceeds from shares issued 999 (108) - 891

Balance at 31 March 2008 113,053 1,982 94,698 209,733113,053 1,982 94,698 209,733

Balance at 1 January 2007 105,187 1,736 55,754 162,677

Net profit - - 36,667 36,667


Dividends - - (23,977) (23,977)

Employee share option scheme:- Value of employee services - 193 - 193- Proceeds from shares issued 2,272 (251) - 2,021

Balance at 31 March 2007 107,459 1,678 68,444 177,581

9

The Company – Full Year

Share Other Retained Totalcapital reserves earnings equity

S$’000 S$’000 S$’000 S$’000

Balance at 1 April 2007 107,459 1,678 68,444 177,581

Net profit - - 146,385 146,385


Dividends - - (120,131) (120,131)


Balance at 31 March 2008 113,053 1,982 94,698 209,733113,053 1,982 94,698 209,733

Balance at 1 April 2006 103,057 1,209 34,789 139,055

Net profit - - 139,004 139,004


Dividends - - (105,349) (105,349)


Balance at 31 March 2007 107,459 1,678 68,444 177,581 (1)(d)(ii)Details of any changes in the company’s share capital arising from rights issue,

bonus issue, share buy-backs, exercise of share options or warrants, conversion of other issues of equity securities, issue of shares for cash or as consideration for acquisition or for any other purpose since the end of the previous period reported on. State also the number of shares that may be issued on conversion of all the outstanding convertibles, as well as the number of shares held as treasury shares, if any, against the total number of issued shares excluding treasury shares of the issuer, as at the end of the current financial period reported on and as at the end of the corresponding period of the immediately preceding financial year.

During the fourth quarter ended 31 March 2008, the Company issued 976,552 ordinary shares at prices ranging from S$0.547 to S$1.048 upon the exercise of options granted under the Singapore Post Share Option Scheme. As at 31 March 2008, there were unexercised options of 16,664,079 (31 March 2007: 14,534,995) of unissued ordinary shares under the Singapore Post Share Option Scheme. The Company did not hold any shares in treasury.

10

(1)(d)(iii)To show the total number of issued shares excluding treasury shares as at the end of the current financial period and as at the end of the immediately preceding year.

As at 31 March 2008, total issued shares were 1,924,510,068 (31 March 2007:

1,918,128,152). (1)(d)(iv)A statement showing all sales, transfers, disposal, cancellation and / or use of

treasury shares as at end of the current financial period reported on. Not applicable. (2) Whether the figures have been audited or reviewed, and in accordance with which

auditing standard or practice.

The figures have not been audited or reviewed.

(3) Where figures have been audited or reviewed, the auditors’ report (including any qualifications or emphasis of a matter).

Not applicable.

(4) Whether the same accounting policies and methods of computation as in the issuer’s most recently audited annual financial statements have been applied. Except as disclosed under paragraph 5 below, the Group has applied the same accounting policies and methods of computation in the financial statements for the current reporting period compared with the audited financial statements for the financial year ended 31 March 2007.

(5) If there are any changes in the accounting policies and methods of computation, including any required by an accounting standard, what has changed, as well as the reasons for, and the effect of, the change.

On 1 April 2007, the Group and the Company adopted the new or revised FRS that are applicable in the current financial year. The financial statements for the financial period ended 31 March 2007 have been amended as required, in accordance with the relevant transitional provisions in the respective FRS. The following are the new or revised FRS relevant to the Group: FRS 1 Presentation of Financial Statements (Capital Disclosures) FRS 40 Investment Property FRS 107 Financial Instruments: Disclosures The adoptions of the above new or revised FRS did not result in any financial impact on the Group and the Company except as discussed below: (i) FRS 1 Presentation of Financial Statements (Capital Disclosures)

The amendment to FRS 1 introduces disclosures about the level of an entity’s capital and how it manages capital. The required disclosures will be made accordingly in the financial statements of the Group and the Company for the financial year ended 31 March 2008.

11

(ii) FRS 40 Investment Property

FRS 40 requires companies to choose to measure investment properties using their fair value or at cost. The Group and the Company have elected to measure investment properties at cost. Thus, investment properties are stated at cost less accumulated depreciation and any impairment losses. Under FRS 40, when a portion of a property is leased out and another portion is held for own-use, the portions are required to be accounted for separately if these portions could be sold or leased out separately under a finance lease. Consequently, on adoption of FRS 40 on 1 April 2007, the net book value of SPC has been split into 2 parts and the effect of this adjustment as at year end is as follows:


Property, plant and equipment 85,968 304,125 81,427 304,125Investment property 211,291 - 215,832 -

297,259 304,125 297,259 304,125


The Group and the Company have reclassified S$211.3 million and S$215.8 million respectively from property, plant and equipment to investment property as at 31 March 2008, representing the portion of SPC that was rented out for the Group and the Company. No adjustments to the comparatives have been made in accordance with the transitional provisions of FRS 40.

There is no impact on the income statement.

(iii) FRS 107 Financial Instruments: Disclosures

FRS 107 introduces new disclosures to improve the information about financial instruments. It requires the disclosure of qualitative and quantitative information about exposure to risks arising from financial instruments, including minimum disclosures about credit risk, liquidity risk and market risk (including sensitivity analysis to market risk). The required disclosures will be made accordingly in the financial statements of the Group and the Company for the financial year ended 31 March 2008.

(6) Earnings per ordinary share of the group for the current financial period reported on and the corresponding period of the immediately preceding financial year, after deducting any provision for preference dividends.

FY2007/08 FY2006/07 FY2007/08 FY2006/07Q4 Q4 Full Year Full Year

1.793 cents 2.014 cents 7.766 cents 7.298 cents

On fully diluted basis 1.792 cents 2.012 cents 7.760 cents 7.289 cents

Based on weighted average number of ordinary shares in issue

The Group

12

(7) Net asset value (for the issuer and group) per ordinary share based on the total number of issued shares excluding treasury shares of the issuer at the end of the current financial period reported on and immediately preceding financial year.

Mar-08 Mar-07 Mar-08 Mar-07

11.72 9.86 10.90 9.26


Net asset value per ordinary share based on issued share capital of the Company at the end of the financial period (cents)

(8) Review of the performance of the group. (8)(i) Financial Highlights

Fourth quarter ended 31 March 2008 The Group recorded a 5.7% growth in revenue from S$112.6 million to S$119.0 million in the final quarter of FY 2007/08. ♦ Mail – Revenue grew by 3.0% from S$87.8 million to S$90.5 million, as a result of

growth in mail traffic.

♦ Logistics – Revenue showed a 11.2% improvement from S$16.0 million to S$17.7 million, due mainly to higher Speedpost traffic, contributions from vPOST on-line shopping and shipping transactions, and warehousing, fulfillment and distribution contributions.

♦ Retail – Revenue grew by 15.5% from S$14.5 million to S$16.7 million, on higher

contributions from retail products and financial services. Rental and property related income improved by 24.0% from S$5.2 million to S$6.5 million, a result of higher rental rates. In tandem with the trend of rising operating costs in the economy and the Group’s increased business activities, total expenses rose by 18.4% from S$78.5 million to S$93.0 million in Q4 FY2007/08. The increase was mainly attributed to higher labour and related costs, volume related costs, administrative and other expenses and a one-off impairment charge of S$4.9 million for two properties. Labour and related costs increased by 11.7% from S$30.3 million to S$33.9 million as a result of higher wage costs and temporary/contract staff costs, as well as higher employer’s contributions to the Central Provident Fund as a result of the rate increase from 13% to 14.5%. Volume-related costs rose by 15.2% from S$27.0 million to S$31.1 million, due to increased traffic related expenses and higher cost of goods sold. Administrative and other expenses grew by 12.1% from S$10.4 million to S$11.6 million, due mainly to higher administrative expenses and property related expenses. Excluding the impact of the impairment charge, the Group’s total expenses would have increased by 12.2% instead.

Excluding the one-off impairment charge for properties of S$4.9 million and a loss on disposal of plant and equipment of S$0.4 million, operating profit would have decreased by 4.6% from S$42.3 million to S$40.3 million. Mail operating profit was lower by 9.1% from S$35.6 million to S$32.4 million, while Logistics operating profit increased slightly by 1.9% from S$2.9 million to S$3.0 million. Retail operating profit was lower by 6.7% from S$2.6 million to S$2.4 million.

13

Share of profit of associated companies and joint ventures increased by 64.2% from S$1.8 million to S$2.9 million. Income tax expense declined 58.3% from S$3.2 million to S$1.3 million. A one-off adjustment for over-provision of tax in respect of prior years amounting to S$5.8 million in the current quarter was partly offset by the impact from the reduction in corporate tax rate in the same quarter last year. For Q4 FY2007/08, the Group recorded a 10.6% decline in net profit from S$38.6 million to S$34.5 million. Excluding the one-off impact of the tax adjustments and the one-off impairment charge, the Group’s underlying net profit was lower by 1.2% from S$34.1 million to S$33.7 million. Full Year ended 31 March 2008

For FY2007/08, the Group’s revenue increased by 8.4% from S$436.0 million to S$472.6 million. All business segments showed an improvement in performance for the full year. ♦ Mail revenue grew by 7.9% from S$338.4 million to S$365.3 million, underpinned by

higher mail volumes and price adjustments. ♦ Logistics revenue rose by 6.7% from S$64.3 million to S$68.6 million, due to higher

contributions from Speedpost, vPOST online shopping and shipping transactions, and warehousing, fulfillment and distribution.

♦ Retail recorded a 10.8% increase in revenue from S$55.6 million to S$61.6 million, as

increased contributions from financial services and retail products offset the decline in agency and bill presentment services.

Rental and property related income improved by 18.2% from S$20.2 million to S$23.9 million, benefiting from higher rental rates and yield enhancement initiatives at Singapore Post Centre. Miscellaneous income increased by 21.4% from S$7.7 million to S$9.3 million, due to one-off gains from the disposal of properties. As a result of the rise in operating costs, increased business activities and the one-off impairment charge for two properties, the Group’s total expenses rose by 11.3% from S$304.1 million to S$338.5 million. Labour and related costs rose by 8.8% from S$114.9 million to S$125.1 million, due to increases in wage costs and temporary/contract staff costs, as well as higher employer’s contributions to the Central Provident Fund. Volume related costs increased by 15.4% from S$105.2 million to S$121.4 million as a result of higher traffic-related expenses and cost of goods sold. Finance expenses declined by 15.6% from S$10.7 million to S$9.0 million as the Group has fully repaid the term loan obtained in March 2006. Excluding the impact of the impairment charge, the Group’s total expenses would have increased by 9.7% instead. Share of profit of associated companies and joint ventures increased by 25.1% from S$6.6 million to S$8.2 million. During the financial year, the Group recorded its share of a one-off gain of S$1.7 million from the sale of the Spring JV’s US business, as well as share of one-off restructuring cost of S$0.7 million from Spring JV. Income tax expense declined 1.5% from S$26.2 million to S$25.8 million. The one-off adjustment for over-provision of tax in respect of prior years amounting to S$5.8 million was partly offset by the impact from the reduction in corporate tax rate last year.

14

The Group’s net profit rose by 6.8% from S$139.8 million to S$149.3 million for FY2007/08. Excluding the one-off impact of the tax adjustments, the impairment charge, gains from disposal of properties and the share of one-off items from Spring JV, the Group’s underlying net profit grew by 7.1% from S$130.8 million to S$140.0 million. Balance Sheet Total assets amounted to S$747.4 million as at 31 March 2008, compared to S$719.3 million as at 31 March 2007. The Group’s cash and cash equivalents increased from S$69.0 million as at 31 March 2007 to S$104.1 million as at 31 March 2008. Total liabilities amounted to S$521.8 million as at 31 March 2008, compared to S$530.2 million as at 31 March 2007. Borrowings decreased from S$316.3 million to S$302.1 million, as the Group had fully repaid its term loan in Q1 FY2007/08. Shareholders’ fund as at 31 March 2008 was S$221.4 million compared to S$185.4 million a year ago. Cash Flow The Group’s cash flow remained robust. Net cash inflow from operating activities amounted to S$173.7 million in FY2007/08, compared to S$160.9 million in FY2006/07. Free cash flow was S$160.9 million compared to S$152.4 million last year. Dividends The Board of Directors is recommending a final dividend of 2.5 cents per share for FY2007/08. Together with the interim dividend payments of 1.25 cents per share for each of the first three quarters of FY2007/08, the proposed total dividend for FY2007/08 would amount to 6.25 cents per share. This represents 81% of the Group’s net profit.

Dividend per share Interim Q1 FY2007/08 1.25 cents Interim Q2 FY2007/08 1.25 cents Interim Q3 FY2007/08 1.25 cents Proposed Final FY2007/08 2.50 cents Total Dividend Paid / Proposed 6.25 cents

(8)(ii) Detailed Financial Analysis Revenue Revenue by segments:


S$’000 S$’000 % S$’000 S$’000 %

Mail 90,498 87,828 3.0 365,251 338,424 7.9Logistics 17,744 15,952 11.2 68,629 64,296 6.7Retail 16,693 14,457 15.5 61,625 55,642 10.8Inter-segment eliminations (5,889) (5,592) 5.3 (22,910) (22,317) 2.7Total 119,046 112,645 5.7 472,595 436,045 8.4

15

Operating Profit Operating profit by segments:

FY2007/08 FY2006/07 FY2007/08 FY2006/07

Q4 Q4 Variance Full Year Full Year VarianceS$’000 S$’000 % S$’000 S$’000 %

Mail 32,359 35,586 (9.1) 141,476 134,597 5.1Logistics 3,001 2,945 1.9 10,547 10,376 1.6Retail 2,384 2,555 (6.7) 10,066 9,518 5.8Others (2,699) 1,172 N.M. 13,239 14,774 (10.4)Total 35,045 42,258 (17.1) 175,328 169,265 3.6

N.M. Not meaningful.

(9) Where a forecast, or a prospect statement, has been previously disclosed to

shareholders, any variance between it and the actual results.

Not applicable. (10) A commentary at the date of the announcement of the significant trends and

competitive conditions of the industry in which the group operates and any known factors or events that may affect the group in the next reporting period and the next 12 months.

The Group is positioned to address the challenges arising from the liberalisation of the basic mail services market. The liberalisation and entry of new players will result in margin pressure. With regard to the implementation of the regulatory framework, we expect the Postal Services Competition Code and the Postal Services Operations Code to be finalised in the new financial year. The proposed Codes require SingPost to develop a Reference Access Offer upon which the operators could obtain access to SingPost’s network. Additionally, the Group expects operating cost pressures to remain. This is in line with the trend of rising costs in the economy. We expect the cost pressures to have a continued impact on margins. SingPost remains focused on growing its core businesses of Mail, Logistics and Retail. As part of its diversification strategy, SingPost continues to leverage on its retail and distribution network to offer higher value products and services to customers. In addition, the Group continues to explore and implement opportunities to extend its regional presence. The Group continues to review its non-core businesses, and is exploring opportunities in respect of Singapore Post Centre, including unlocking the value of Singapore Post Centre.

16

(11) Dividends Current financial period reported on Final dividend In relation to the financial year ended 31 March 2008, the Board of Directors has proposed a

final dividend of 2.5 cents per ordinary share (tax exempt one-tier). The final dividend, if approved by shareholders of the Company at the Annual General

Meeting (“AGM”), will be paid on 18 July 2008. The transfer book and register of members of the Company will be closed on 7 July 2008 for

the preparation of dividend warrants. Duly completed registrable transfers of the ordinary shares in the capital of the Company received by the Company’s registrar up to 5.00 pm on 4 July 2008 will be registered to determine members’ entitlements to the dividend.

Corresponding period of the immediately preceding financial year Final dividend A final dividend of 2.5 cents per ordinary share (tax exempt one-tier) in relation to the

financial year ended 31 March 2007 was proposed on 27 April 2007 and approved at the AGM on 29 June 2007. This dividend was paid on 18 July 2007.

(12) If no dividend has been declared (recommended), a statement to that effect.

Not applicable.

17

PART II ADDITIONAL INFORMATION REQUIRED FOR FULL YEAR ANNOUNCEMENT

(13) Segmented revenue and results for business or geographical segments (of the group) in the form presented in the issuer’s most recently audited annual financial statements, with comparative information for the immediately preceding year.

Primary reporting format – business segments

Mail Logistics Retail Others Eliminations Group

2008 S$’000 S$’000 S$’000 S$’000 S$’000 S$’000

Revenue:- External 364,814 68,139 39,642 472,595- Inter-segment 437 490 21,983 (22,910) -

365,251 68,629 61,625 - (22,910) 472,595Other gains (net)- Rental, property-related and miscellaneous income - External 647 23 553 30,992 - 32,215 - Inter-segment - - - 34,923 (34,923) -

647 23 553 65,915 (34,923) 32,215

Segment results 141,476 10,547 10,066 13,239 - 175,328

Interest income 1,021Finance expense (9,017)Share of profit of associated companies and joint ventures 8,200 - - - - 8,200Profit before income tax 175,532Income tax expense (25,758)Total profit 149,774

Segment assets 85,043 12,264 62,026 427,998 - 587,331Investment in net assets of associated companies and joint venturesUnallocated assets 68,475Consolidated total assets 747,392

Segment liabilities 69,288 11,250 52,586 25,181 - 158,305Unallocated liabilities 363,503Consolidated total liabilities 521,808

Capital expenditure 3,708 1,898 3,545 3,685 - 12,836

Depreciation 6,794 1,416 1,809 16,320 - 26,339

Amortisation 36 - - - -

Impairment of receivables, property, plant and equipment, and other non current asset 97 13 3 5,060 - 5,173

- 91,58691,586 - - -

36

18

Primary reporting format – business segments (continued)

Mail Logistics Retail Others Eliminations Group2007 S$’000 S$’000 S$’000 S$’000 S$’000 S$’000

Revenue:- External 338,164 63,352 34,529 - - 436,045- Inter-segment 260 944 21,113 - (22,317) -

338,424 64,296 55,642 - (22,317) 436,045Other gains (net)- Rental, property-related and miscellaneous income - External 103 85 375 26,078 - 26,641 - Inter-segment - - - 33,114 (33,114) -

103 85 375 59,192 (33,114) 26,641

Segment results 134,597 10,376 9,518 14,774 - 169,265

Interest income 1,279Finance expense (10,681)Share of profit of associated company and joint ventures 6,554 - - - - 6,554Profit before income tax 166,417Income tax expense (26,160)Total profit 140,257

Segment assets 81,256 9,807 57,068 455,104 - 603,235Investment in net assets of associated company and joint venturesUnallocated assets 28,726Consolidated total assets 719,315

Segment liabilities 63,852 11,207 52,104 17,505 - 144,668Unallocated liabilities 385,487Consolidated total liabilities 530,155

Capital expenditure 3,196 666 1,265 3,366 - 8,492

Depreciation 5,936 1,599 1,800 16,204 - 25,539

Amortisation 36 - - - -

Impairment of receivables 172 23 5 8 - 208

- 87,35487,184 - 170 -

36

19

Primary reporting format – business segments (continued) At 31 March 2008, the Group is organised into three main business segments:

• Mail – Mail division provides comprehensive services for collecting, sorting, transporting and distributing domestic and international mail as well as sale of philatelic products. International mail service covers the handling of incoming international mail from, and outgoing international mail to, foreign postal administrations as well as via a global cross-border network through Spring (G3 Worldwide group of companies). Mail division also offers ePost hybrid mail service which integrates electronic data communication with traditional mail.

• Logistics – Logistics division provides domestic and international door-to-door

delivery services, including express services (Speedpost), shipping services at vPOST (“virtual post”) internet portal and warehousing, fulfilment and distribution services.

• Retail – Retail division provides a wide variety of products and services beyond the

scope of traditional postal services, including agency and remittance services as well as financial services. The three principal distribution channels are: post offices, authorised postal agencies and stamp vendors; self-service automated machines (“SAMs”); and vPOST internet portal for bill presentment / payment.

Other operations mainly comprise the balance of the Group’s operations including the provision of commercial property rental, none of which constitutes a separately reportable segment.

Inter-segment transactions are recorded at their transacted prices which are generally at fair values. Unallocated costs represent income tax expense and net finance expenses. Segment assets consist primarily of receivables, property, plant and equipment and investments and exclude assets managed at the corporate level such as cash and cash equivalents. Segment liabilities comprise operating liabilities and exclude corporate borrowings, current tax liabilities and deferred taxation. Capital expenditure comprises additions to property, plant and equipment.

Secondary reporting format – geographical segments

As the Group operates principally in one geographical area, which is in Singapore, segment information by geographical segments is not presented.

(14) In the review of performance, the factors leading to any material changes in

contributions to turnover and earnings by the business or geographical segments. Not applicable.

20

(15) A breakdown of sales. The Group

2007/08 S$’000

2006/07 S$’000

Variance%

(a) Sales reported for the first half year 231,521 211,642 9.4

(b) Total profit after tax before deducting minority interest reported for the first half year

78,274

67,310

16.3 (c) Sales reported for the second half year 241,074 224,403 7.4

(d) Total profit after tax before deducting minority interest reported for the second half year

71,500

72,947

(2.0) (16) A breakdown of the total annual dividend (in dollar value) for the issuer’s

latest full year and its previous full year.

Group and Company

2008 2007 S$’000 S$’000 Ordinary dividends paid

Final exempt (one-tier) dividend paid in respect of the previous financial year of 2.5 cents (2007: 1.75 cents) per share 48,021 33,495

Interim exempt (one-tier) dividend paid in respect of the first quarter of current financial year of 1.25 cents (2007: 1.25 cents) per share 24,018 23,935

Interim exempt (one-tier) dividend paid in respect of the second quarter of current financial year of 1.25 cents (2007: 1.25 cents) per share 24,039 23,942

Interim exempt (one-tier) dividend paid in respect of the third quarter of current financial year of 1.25 cents (2007: 1.25 cents) per share 24,053 23,977

120,131 105,349

21

PART III OTHER INFORMATION (17) Interested Person Transactions

During the fourth quarter and full year ended 31 March 2008, the following interested person transactions were entered into by the Group:

FY2007/08 FY2006/07 FY2007/08 FY2006/07Q4 Q4 Q4 Q4

S$’000 S$’000 S$’000 S$’000Sales

- - - 121

- - 4,463 -

- - 3,984 * 885

- - 8,447 1,006

Purchases

- - - 2,019 *

Temasek Holdings (Private) Limited and its associates - - 970 * -

- - 970 2,019

Total interested person transactions - - 9,417 3,025

Singapore Airlines Limited and its associates

Temasek Holdings (Private) Limited and its associates

Aggregate value of all interested person transactions during the

financial period (excluding transactions less than S$100,000

and transactions conducted under shareholders’ mandate pursuant to

Rule 920)

Aggregate value of all interested person transactions conducted under

shareholders’ mandate pursuant to Rule 920 (excluding transactions less

than S$100,000)


Singapore Telecommunications Limited and its associates

22

FY2007/08 FY2006/07 FY2007/08 FY2006/07Full Year Full Year Full Year Full Year

S$’000 S$’000 S$’000 S$’000Sales

- - 2,562 4,229 *

- - 5,011 15,160 *

Starhub Ltd and its associates - - 1,994 * -

- - 5,518 * 885

- - 15,085 20,274

Purchases

CapitaMall Trust and its associates - - 314 * -

PowerSeraya Limited and its associates - - 6,840 12,271 *

Singapore Airlines Limited and its associates - - - 2,613 *

- - 595 * 1,175 *

- - 970 * 862 *

- - 8,719 16,921

Total interested person transactions - - 23,804 37,195



Aggregate value of all interested person transactions during the

financial period (excluding transactions less than S$100,000

and transactions conducted under shareholders’ mandate pursuant to

Rule 920)

Aggregate value of all interested person transactions conducted under

shareholders’ mandate pursuant to Rule 920 (excluding transactions less

than S$100,000)




Note All the transactions set out in the above table were based on the Group’s interested person transactions register. They were either based on contractual values for the duration of the contracts (which may vary from 1 month to 3 years) or annual values for open-ended contracts. * Include contracts of duration exceeding one year.

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Documents

E2CB5104916880CD4825 - Singapore Post...Note 1 Included the net book value of the Group’s headquarters at Singapore Post Centre (SPC) of S$297.3 million as at 31 March 2008. On adoption