The Straits Trading Company Limited (Company Registration No. : …straitstrading.listedcompany.com/newsroom/20140228_225803_S20_B95274E… · Interest income 1,733 1,182 5,636 6,201

The Straits Trading Company Limited (Company Registration No. : 188700008D)

Fourth Quarter and Full Year Financial Statements and Dividend Announcement for the Year Ended 31

December 2013

PART I - INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (1Q, 2Q & 3Q), HALF-YEAR

AND FULL YEAR RESULTS

1(a)(i) An income statement (for the group) together with a comparative statement for the

corresponding period of the immediately preceding financial year.

The unaudited results for the 4th quarter and full year ended 31 December 2013 are as follows:

GROUP Note 4th

Quarter (4Q) Ended

31 December

Full Year Ended

31 December

2013 2012 2013 2012

$’000 $’000 $’000 $’000

(restated) (restated)

Continuing operations

Revenue

Tin mining and smelting revenue A 130,882 226,350 628,875 885,076

Hotel revenue B – – – –

Property revenue C 5,010 29,496 31,650 59,305

Proceeds from sale of trading

securities D – – 57,011 14

Total revenue 135,892 255,846 717,536 944,395

Other items of income

Dividend income 688 – 1,806 4,611

Interest income 1,733 1,182 5,636 6,201

Fair value changes in investment

properties 20,107 14,908 20,107 27,066

Fair value changes in financial assets (69) (10) (1,303) 485

Other income E 1,078 1,325 97,189 4,500

159,429 273,251 840,971 987,258

Other items of expense

Employee benefits expense F (10,089) (7,385) (31,776) (25,709)

Depreciation expense (714) (660) (2,699) (3,171)

Amortisation expense (139) (595) (498) (1,099)

Impairment losses G 10,877 (9,763) (2,699) (10,598)

Costs of tin mining and smelting H (113,405) (212,537) (564,202) (831,948)

Costs of trading securities sold D – – (58,181) (14)

Finance costs (4,393) (7,017) (23,976) (24,986)

Other expenses I (4,798) (23,495) (35,231) (52,044)

Exchange gains/(losses) 4,549 264 349 893

Total expenses (118,112) (261,188) (718,913) (948,676)

Share of results of equity-accounted

associates and joint ventures J (5,139) 1,829 (16,835) 2,473

Profit/(Loss) before tax from

continuing operations 36,178 13,892 105,223 41,055

Income tax (expense)/credit K (3,961) (5,481) 40,879 (13,579)

Profit/(Loss) after tax from


Page 2 1(a)(i) An income statement (for the group) together with a comparative statement for the corresponding

period of the immediately preceding financial year.

The unaudited results for the 4th

quarter and full year ended 31 December 2013 are as follows (Cont’d):

Notes to the Income Statement:

(A) The decrease in tin mining and smelting revenue was mainly due to lower sales quantity of refined tin and the

reclassification of Bemban Corporation Limited (“BCL”) group as discontinued operations. The comparatives

have been restated accordingly.

(B) With the completion of the sale of the hotel assets in Singapore on 1 August 2013 and the sale of the hotel

assets and business in Australia and New Zealand on 1 November 2013, the results of the hospitality operations

have been reclassified as discontinued operations. The comparatives have been restated accordingly.

(C) Property revenue for 4Q2013 was lower as there was no sale of development properties in the quarter. For

FY2013, the decrease was mainly due to lower sales of development properties and lower rental revenue as a

result of the expiration of the master lease at No. 18, 20 and 22 Cross Street, Singapore on 29 March 2012.

(D) This relates to the sale of the Group’s portfolio of market securities.

(E) Other income for FY2013 relates principally to the gain on disposal of WBL Corporation Limited (“WBL”) shares

when the Group accepted the mandatory conditional cash offers for WBL made by UE Centennial Venture Pte

Ltd in May 2013.

GROUP Note 4th Quarter (4Q) Ended

31 December

Full Year Ended

31 December

2013 2012 2013 2012

$’000 $’000 $’000 $’000


Discontinued operations


discontinued operations A/B (14,539) (87,904) (19,498) (140,480)

Profit/(Loss) for the period 17,678 (79,493) 126,604 (113,004)

Attributable to:

Owners of the Company




discontinued operations (9,716) (49,014) (19,755) (78,130)

Profit/(Loss) for the period

attributable to owners of the

Company

12,644 (39,520) 119,495 (55,236)

Non-controlling interests


continuing operations 9,857 (1,083) 6,852 4,582


discontinued operations A (4,823) (38,890) 257 (62,350)

Profit/(Loss) for the period

attributable to non-controlling

interest

5,034 (39,973) 7,109 (57,768)

Page 3

Notes to the Income Statement (Cont’d):

(F) Employee benefits expense was higher mainly due to an increase in headcount.

(G) The reversal of impairment in 4Q2013 relates to the Group’s 30% investment in KM Resources, Inc (“KMR”), a

holding company of certain subsidiaries operating the Rapu Rapu mine in the Philippines, as the estimated

recoverable amount was much higher than previously anticipated.

(H) The decrease in costs of tin mining and smelting was due to lower sales quantity.

(I) Other expenses were lower mainly due to lower cost of development properties as a result of lower sales.

(J) The losses were mainly due to the share of loss in KMR, and one-off transaction costs incurred by Far East

Hospitality Holdings Pte Ltd (“FEHH”), the 30% joint venture with Far East Orchard Limited.

(K) The tax credit for the year was mainly due to reversal of tax provisions related to certain investment properties

that were no longer required.

Page 4

1(a)(ii) Statement of comprehensive income for the 4th quarter and full year ended 31 December 2013.

GROUP 4th

Quarter (4Q) Ended

31 December

Full Year Ended

31 December

2013 2012 2013 2012

$’000 $’000 $’000 $’000


Profit/(Loss) after tax 17,678 (79,493) 126,604 (113,004)

Items that will not be reclassified to profit or

loss:

Reversal of fair value changes on investment

securities which became an associate – – (23,338) –

Net revaluation surplus/(deficit) on property,

plant and equipment 516 (10,587) 516 (10,587)

Share of revaluation surplus on property,

plant and equipment of associates 221 – 221 –

Items that may be reclassified subsequently

to profit or loss:

Net fair value changes in available-for-sale

investment securities (5,039) 10,402 (5,810) 53,750

Net fair value changes in cash flow hedges (145) (152) (508) 14

Currency translation reserve (11,555) (2,255) (29,598) (9,794)

Share of reserves of associates/joint ventures (4,130) – (474) –

Share of reserves of an associate that transfer

to profit or loss on disposal – – (2,410) –

Other comprehensive income/(expenses)

after tax for the period (20,132) (2,592) (61,401) 33,383

Total comprehensive income/(expenses) for

the period (2,454) (82,085) 65,203 (79,621)

Total comprehensive income/(expenses)

attributable to:

Owners of the Company (2,494) (42,389) 64,688 (19,398)

Non-controlling interests 40 (39,696) 515 (60,223)

(2,454) (82,085) 65,203 (79,621)


attributable to:

Owners of the Company

Total comprehensive income after tax from


Total comprehensive income after tax from

discontinued operations (6,898) (50,618) (19,051) (80,132)

Total comprehensive income/(expenses) for

the period attributable to owners of the

Company

(2,494) (42,389) 64,688 (19,398)

Page 5

1(b)(i) A statement of financial position (for the issuer and group), together with a comparative

statement as at the end of the immediately preceding financial year.

Balance sheets as at 31 December 2013

Note GROUP COMPANY

31 Dec 2013 31 Dec 2012 31 Dec 2013 31 Dec 2012

$’000 $’000 $’000 $’000

Assets

Non-current assets

Property, plant and equipment L 34,403 479,659 305 360

Investment properties L/M 849,910 914,557 122,346 119,111

Goodwill 20,603 21,354 – –

Other intangible assets 5,869 4,671 – –

Investments in subsidiaries –

– 209,737 210,090

Investments in associates and joint ventures N 358,741 67,985 3,585 3,585

Deferred tax assets 1,828 4,615 – –

Other non-current receivables O 62,963 9,019 – 62,062

Investment securities P 64,139 187,536 – 68,713

Other non-current assets 1,155 6,527 – –

Total non-current assets 1,399,611 1,695,923 335,973 463,921

Current assets

Assets of disposal group classified as held for

sale L 48,391 – – –

Development properties for sale 334 6,043 – –

Inventories L/R 106,107 98,374 – –

Income tax receivables 685 1,404 71 52

Prepayments and accrued income 3,137 5,918 67 142

Trade and other receivables L 108,260 137,681 565,720 150,516

Marketable securities – 14,743 – –

Derivative financial instruments – 125 – –

Cash and short-term deposits 274,333 198,167 144,133 119,316

Total current assets 541,247 462,455 709,991 270,026

Total assets 1,940,858 2,158,378 1,045,964 733,947

Equity and liabilities

Equity

Share capital Q 568,968 265,928 568,968 265,928

Retained earnings 784,145 721,821 (3,421) 161,537

Other reserves L (31,295) 148,286 (7,121) 4,476

Reserve of disposal group classified as held for sale L (5,233) – – –

Equity attributable to owners of the Company 1,316,585 1,136,035 558,426 431,941

Non-controlling interests 35,658 35,043 – –

Total equity 1,352,243 1,171,078 558,426 431,941

Non-current liabilities

Provisions L 3,891 25,822 – –

Deferred tax liabilities L/S 6,857 72,202 3,270 989

Borrowings L/T 297,490 536,714 224,357 224,132

Derivative financial instruments 44 147 – –

Other non-current liabilities 1,335 1,927 – –

Total non-current liabilities 309,617 636,812 227,627 225,121

Page 6

1(b)(i) A statement of financial position (for the issuer and group), together with a comparative

statement as at the end of the immediately preceding financial year. Balance sheets as at 31 December 2013 (Cont’d)

Notes:

(L) The decrease is due to the sale of hospitality assets and business that was completed on 1 August and 1 November

2013, and certain resources subsidiaries have been reclassified as held for sale.

(M) The decrease in investment property was due to the sale of residential properties offset by fair value gains.

(N) The increase in investments in associates and joint ventures was mainly due to investments in FEHH and ARA Asset

Management Limited (“ARA”).

(O) The increase in non-current receivables was mainly due to advances to FEHH.

(P) The investment securities as at 31 December 2012 relates mainly to WBL which was sold during the year. The

investment securities as at 31 December 2013 relates mainly to Far East Hospitality Trust securities which were

received as part of the sale proceeds for the sale of its Singapore hotel assets.

(Q) The increase was due to new shares issued to increase its stake in WBL (which was subsequently sold) and its 20.1%

stake in ARA as explained in note 1 (d) (ii).

(R) The increase was mainly due to higher tin ore receipts and reduced by the “held for sale” classification effect for the

BCL group.

(S) Tax provisions in relation to certain investment properties that were no longer required have been reversed.

(T) The decrease in borrowings was mainly due to the early repayment of a term loan and novation of hospitality term

loans.

Note GROUP COMPANY

31 Dec 2013 31 Dec 2012 31 Dec 2013 31 Dec 2012

$’000 $’000 $’000 $’000

Current liabilities

Liabilities directly associated with disposal group

classified as held for sale L 55,078 – – –

Provisions L 15,543 17,730 15,543 –

Income tax payable S 7,036 17,443 280 320

Trade and other payables L 67,970 121,444 244,088 76,565

Borrowings 132,474 193,825 – –

Derivative financial instruments 897 46 – –

Total current liabilities 278,998 350,488 259,911 76,885

Total liabilities 588,615 987,300 487,538 302,006

Total equity and liabilities 1,940,858 2,158,378 1,045,964 733,947

Page 7 1(b)(ii) Aggregate amount of group’s borrowings and debt securities.

Amount repayable in one year or less, or on demand:

As at 31/12/2013 As at 31/12/2012

Secured S$’000

Unsecured S$’000

Secured S$’000

Unsecured S$’000

– 132,474 – 193,825

Amount repayable after one year:

As at 31/12/2013 As at 31/12/2012

Secured S$’000

Unsecured S$’000

Secured S$’000

Unsecured S$’000

25,152 272,338 293,680 243,034

Details of any collaterals:

Secured borrowings are collateralised by:

- mortgage of the borrowing companies’ properties and/or

- assignment of all rights, titles and interest under contracts in respect of the mortgaged

properties or

- fixed and floating charge over all assets in respect of and the business conducted on the

mortgaged properties

Page 8

1(c) A statement of cash flows (for the group), together with a comparative statement for the


Consolidated cash flow statement for the 4th quarter and full year ended 31 December 2013

4

th Quarter (4Q) Ended

31 December

Full Year Ended

31 December

2013 2012 2013 2012

$’000 $’000 $’000 $’000


Cash flows from operating activities

Profit/(Loss) before tax from continuing operations 36,178 13,892 105,223 41,055

Profit/(Loss) before tax from discontinued

operations (6,273) (77,518) (11,926) (136,086)

Profit/(Loss) before tax 29,905 (63,626) 93,297 (95,031)

Adjustments

Depreciation of property, plant and equipment 834 7,596 13,525 26,160

Amortisation of intangible assets 139 947 498 7,344

Amortisation of deferred income – – – (906)

Dividend income (688) – (1,806) (4,611)

Interest income (1,658) (1,204) (5,669) (6,518)

Finance costs 4,766 8,312 27,161 27,443

Currency realignment (4,450) (350) (7,089) (2,543)

Fair value changes in investment properties and

financial assets (20,039) (15,043) (18,805) (27,583)

Net (gain)/loss on disposal of investments,

property, plant and equipment and investment

properties

(3,746) (750) (102,640) 1,141

Impairment of investments, property, plant and

equipment (10,877) 16,152 2,699 16,987

Impairment and provisions related to expiry of

Contract of Work – 51,267 – 51,267

(Write back)/Write off/Provision for

rehabilitation/exploration costs and other assets 2,320 11,785 6,062 15,869

Provision for onerous contracts – 10,210 – 10,994

(Write back)/Provision for employee benefits and

receivables 5,449 1,615 8,374 5,854

Share of results of equity-accounted associates

and joint ventures 5,138 (1,829) 16,834 (2,473)

Operating cash flows before changes in working

capital 7,093 25,082 32,441 23,394

Decrease in development properties for sale 12 17,849 5,709 23,570

Decrease/(Increase) in inventories (32,924) 418 (37,376) 1,685

Decrease/(Increase) in marketable securities – (14,677) 13,678 (14,663)

Decrease in trade and other receivables 37,255 3,172 67,558 29,079

Decrease/(Increase) in trade and other payables (9,967) 7,263 (15,297) (20,513)

Cash flow from operations 1,469 39,107 66,713 42,552

Income taxes paid (3,574) (400) (12,829) (19,799)

Payment of finance costs (7,115) (10,515) (25,784) (24,931)

Interest received 1,365 1,179 5,044 6,514

Dividend income 2,964 999 14,214 5,618

Net cash flows from/(used in) operating activities (4,891) 30,370 47,358 9,954

Page 9

1(c) A statement of cash flows (for the group), together with a comparative statement for the


Consolidated cash flow statement for the 4th quarter and full year ended 31 December 2013 (cont’d)

4

th Quarter (4Q) Ended

31 December

Full Year Ended

31 December

2013 2012 2013 2012

$’000 $’000 $’000 $’000


Cash flows from investing activities

Proceeds from disposal of property, plant and

equipment and investment properties 22 12,484 70,803 53,192

Cost incurred on property, plant and equipment (1,674) (15,453) (38,834) (142,407)

Cost incurred on investment properties (2,468) (586) (6,271) (11,223)

(Proceeds from)/Purchase of investment securities 1 – (1,572) 1,586

Increase in deferred mine development and

exploration expenditure and other intangible

assets

(122) (931) (601) (4,556)

Proceeds from disposal of hospitality assets and

operations 163,240 – 380,240 –

Receipt for insurance scheme – 1,918 – 1,918

Proceeds from disposal of shares in an associate – – 508,779 –

Additional shares in associate and joint venture (274,371) – (286,937) (510)

Payment for mine closure deposit – (8,558) (12,071) (8,558)

Net cash flows from/(used in) investing activities (115,372) (11,126) 613,536 (110,558)

Cash flows from financing activities

Dividends paid to shareholders – – (212,975) (13,036)

Dividends paid to non-controlling shareholders of a

subsidiary – – – (2,457)

(Loan)/Proceeds from loan to associate/joint

venture (117,348) 1,805 (126,348) 1,805

Net proceeds from issuance of shares by

subsidiaries to non-controlling shareholders 100 – 100 –

Repayment of short term borrowings (3,907) (7,108) (38,585) (44,628)

Drawdown of long term borrowings – – 22,298 59,552

Repayment of long term borrowings (2,524) (5,306) (227,602) (11,772)

Net cash flows (used in) financing activities (123,679) (10,609) (583,112) (10,536)

Net increase/(decrease) in cash and cash

equivalents (243,942) 8,635 77,782 (111,140)

Effect of exchange rate changes on cash and cash

equivalents (337) (462) (1,595) (4,016)

Cash and cash equivalents, beginning balance 518,633 189,994 198,167 313,323

Cash and cash equivalents, ending balance 274,354 198,167 274,354 198,167

Cash and cash equivalents comprise the

following:

Cash and short-term deposits 274,333 173,805 274,333 173,805

Amounts reserved for the development of new

mines – 24,362 – 24,362

Disposal group classified as held for sale 21 – 21 –

274,354 198,167 274,354 198,167

Page 10

1(d)(i) A statement (for the issuer and group) showing either (i) all changes in equity or (ii) changes in equity

other than those arising from capitalisation issues and distributions to shareholders, together with a

comparative statement for the corresponding period of the immediately preceding financial year.

Statements of changes in equity for the period ended 31 December 2013

GROUP Reserve of

Equity disposal

attributable group Non-

Total to owners of Share Retained AFS Hedging Revaluation Translation Other classified as controlling

Equity the Company capital earnings reserve reserve reserve reserve reserve held for sale interests

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

9

Opening balance at

1 January 2013 1,171,078 1,136,035 265,928 721,821 23,262 (18) 132,319 (7,277) - - 35,043

11

Total comprehensive

income/(expenses) for

the period

65,203 64,688 - 119,495 (30,186) (345) 508 (24,784) - - 515

17

Contributions by and

distributions to owners

Dividend on ordinary

shares

- Special interim

dividend for FY2013 (197,199) (197,199) - (197,199) - - - - - - -

- Interim dividend for

FY2012 (15,776) (15,776) - (15,776) - - - - - - -

Shares issuance 303,140 303,040 303,040 - - - - - - - 100

Unclaimed dividends

written back 13 13 - 13 - - - - - - -

21

Total contributions by and

distributions to owners 90,178 90,078 303,040 (212,962) - - - - - - 100

Total transactions with

owners in their capacity

as owners

90,178 90,078 303,040 (212,962) - - - - - - 100

Others

Reclassification arising

from disposal group

classified as held for sale

25,784 25,784 - 155,791 - - (130,007) - - - -

Reserve attributable to

disposal group classified

as held for sale

- - - - - - (927) 6,160 - (5,233) -

Share of other reserves of

an associate (127) (127) - - - - - - (127) - -

Transfer to profit or loss on

disposal of an associate 127 127 - - - - - - 127 - -

Total others 25,784 25,784 - 155,791 - - (130,934) 6,160 - (5,233) -

Closing balance at

31 December 2013 1,352,243 1,316,585 568,968 784,145 (6,924) (363) 1,893 (25,901) - (5,233) 35,658

Page 11

Statements of changes in equity for the period ended 31 December 2013 (cont’d)

GROUP (cont’d)

Equity

attributable Non-

Total to owners of Share Retained AFS Hedging Revaluation Translation controlling

Equity the Company capital earnings reserve reserve reserve reserve interests

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Opening balance at

1 January 2012 1,266,125 1,168,402 265,928 789,370 (30,551) (25) 144,316 (636) 97,723

Total comprehensive

income/(expenses) for the

period

(79,621) (19,398) – (55,236) 53,813 7 (11,341) (6,641) (60,223)

Contributions by and

distributions to owners

Dividend on ordinary shares

- Interim dividend for

FY2011 (13,036) (13,036) – (13,036) – – – – –

Dividends to non-controlling

shareholders of a

subsidiary

(2,457) – – – – – – – (2,457)

Unclaimed dividends written

back 67 67 – 67 – – – – –

Realisation of revaluation

reserve – – – 656 – – (656) – –

Total contributions by and

distributions to owners (15,426) (12,969) – (12,313) – – (656) – (2,457)

Total transactions with

owners in their capacity as

owners

(15,426) (12,969) – (12,313) – – (656) – (2,457)

26

Closing balance at

31 December 2012 1,171,078 1,136,035 265,928 721,821 23,262 (18) 132,319 (7,277) 35,043

Page 12

Statements of changes in equity for the period ended 31 December 2013 (cont’d)

COMPANY

Equity

attributable

Total to owners of Share Retained AFS Revaluation Translation

equity the Company capital earnings reserve reserve reserve

$’000 $’000 $’000 $’000 $’000 $’000 $’000

Opening balance at 1 January 2013 431,941 431,941 265,928 161,537 9,577 191 (5,292)


for the period 36,407 36,407 – 48,004 (9,577) 11 (2,031)

Contributions by and distributions to

owners


- Special interim dividend for FY2013 (197,199) (197,199) – (197,199) – – –

- Interim dividend for FY2012 (15,776) (15,776) – (15,776) – – –

Shares issuance 303,040 303,040 303,040 – – – –

Unclaimed dividends written back 13 13 – 13 – – –

Total transactions with owners in

their capacity as owners 90,078 90,078 303,040 (212,962) – – –

Closing balance at 31 December 2013 558,426 558,426 568,968 (3,421) – 202 (7,323)

Equity

attributable

Total to owners of Share Retained AFS Revaluation Translation

equity the Company capital earnings reserve reserve reserve

$’000 $’000 $’000 $’000 $’000 $’000 $’000

Opening balance at 1 January 2012 425,168 425,168 265,928 173,767 (10,716) 175 (3,986)


for the period 19,742 19,742 – 739 20,293 16 (1,306)

Contributions by and distributions to

owners


- Interim dividend for FY2011 (13,036) (13,036) – (13,036) – – –

Unclaimed dividends written back 67 67 – 67 – – –

Total transactions with owners in their

capacity as owners (12,969) (12,969) – (12,969) – – –

Closing balance at 31 December 2012 431,941 431,941 265,928 161,537 9,577 191 (5,292)

Page 13

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.

As consideration for the stock units of WBL Corporation Limited acquired by the Group

from Aberdeen Asset Management Asia Limited, in its capacity as fund manager and agent

for its clients, and certain funds and portfolios managed by Third Avenue Management LLC,

the Company has allotted and issued 68,500,772 shares (the “Share Swap”). The Share

Swap was completed on 18 January 2013.

As part of the consideration for the shares of ARA Asset Management Limited acquired by

the Group from JL Investment Group Limited (“JL”), the Company has allotted and issued

13,698,000 shares of the Company to JL on 29 November 2013.

Consequently, total number of issued shares of the Company increased to 408,095,772.

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.

31 December 2013

31 December 2012

Total number of ordinary shares in issue 408,095,772 325,897,000

There were no treasury shares as at 31 December 2013 and 31 December 2012.

1(d)(iv) A statement showing all sales, transfers, disposal, cancellation and/or use of treasury

shares as at the 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.

These figures had not been audited or reviewed by the Company’s auditors.

3. Where the figures have been audited or reviewed, the auditors’ report (including any

qualifications or emphasis of matter).

Not applicable.

Page 14

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 in item 5 below, the Group had applied the same accounting policies

and methods of computation in the preparation of the financial statements for the current

reporting period compared with the audited financial statements as at 31 December 2012.

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.

The Group adopted the following revised Financial Reporting Standards (“FRS”) and

Interpretations (“INT FRS”) that are effective for the financial period beginning 1 January

2013:

Amendments to FRS 1 – Presentation of Items of Other Comprehensive Income 1 July 2012

Revised FRS 19 Employee Benefits 1 January 2013

FRS 113 Fair Value Measurements 1 January 2013 Amendments to FRS 107 Disclosures – Offsetting Financial Assets and Financial

Liabilities 1 January 2013

Improvements to FRSs 2012:

- Amendments to FRS 1 Presentation of Financial Statements 1 January 2013

- Amendments to FRS 16 Property, Plant and Equipment 1 January 2013

- Amendments to FRS 32 Financial Instruments: Presentation 1 January 2013

- Amendments to FRS 34 Interim Financial Reporting 1 January 2013

INT FRS 120 Stripping Costs in the Production Phase of a Surface Mine 1 January 2013

The Group does not expect any significant financial impact on its financial position or

performance from the adoption of these FRSs and INT FRS.

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.

4th

Quarter (4Q) Ended

31 December Full Year Ended

31 December

2013 2012 2013 2012


Basic and diluted earnings/(loss)

per share from continuing

operations attributable to

owners of the Company: 5.6 cents 2.9 cents 35.5 cents 7.0 cents

Basic and diluted earnings/(loss)

per share for the period based

on Group profit/(loss)

attributable to owners of the

Company: 3.2 cents (12.1) cents 30.4 cents (16.9) cents

Page 15

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:

(a) current financial period reported on; and

(b) immediately preceding financial year.

Net asset value per share based on

issued share capital at the end of:

31 December 2013

31 December 2012

The Group $3.23 $3.49 The Company $1.37 $1.33

8. A review of the performance of the group, to the extent necessary for a reasonable

understanding of the group’s business. It must include a discussion of the following:

(a) any significant factors that affected the turnover, costs, and earnings of the

group for the current financial period reported on, including (where applicable)

seasonal or cyclical factors; and

(b) any material factors that affected the cash flow, working capital, assets or

liabilities of the group during the current financial period reported on.

The following tables summarise the 4Q2013 operating results by business segments

and comparables for 4Q2012 and the FY2013 operating results by business segments

and comparables for FY2012.

Page 16

4Q2013 Operating Segment Results

Resources Hospitality Property Others Elimination Consolidated

$’000 $’000 $’000 $’000 $’000 $’000

Revenue

External revenue 136,617 12,784 5,010 - - 154,411

Inter-segment revenue - - 14 - (14) -

Total revenue 136,617 12,784 5,024 - (14) 154,411

Segment results

Operating profit/(loss) 8,193 937 (3,544) 3,240 - 8,826


properties - - 20,107 - - 20,107

Impairment losses 10,877 - - - - 10,877

Finance costs (1,523) (374) (277) (2,592) - (4,766)


associates and joint ventures (1,441) (4,820) 1,122 - - (5,139)

Profit/(Loss) before tax 16,106 (4,257) 17,408 648 - 29,905

Income tax (expense)/credit (3,870) (6,117) (2,183) (57) - (12,227)

Profit/(Loss) after tax 12,236 (10,374) 15,225 591 - 17,678

Profit/(Loss) attributable to:

Owners of the Company 7,202 (10,374) 15,225 591 - 12,644

Non-controlling interests 5,034 - - - - 5,034

12,236 (10,374) 15,225 591 - 17,678

4Q2012 Operating Segment Results


$’000 $’000 $’000 $’000 $’000 $’000

Revenue

External revenue 228,465 41,737 29,496 - - 299,698

Inter-segment revenue - 93 15 - (108) -

Total revenue 228,465 41,830 29,511 - (108) 299,698

Segment results

Operating profit/(loss) 1,022 (10,783) 5,624 (640) - (4,777)


properties - 145 14,908 - - 15,053

Impairment losses (57,361) (10,058) - - - (67,419)

Finance costs (1,960) (862) (1,648) (3,842) - (8,312)


associates and joint ventures 1,678 109 42 - - 1,829

Profit/(Loss) before tax (56,621) (21,449) 18,926 (4,482) - (63,626)

Income tax (expense)/credit (12,199) (662) (3,092) 86 - (15,867)

Profit/(Loss) after tax (68,820) (22,111) 15,834 (4,396) - (79,493)


Owners of the Company (28,847) (22,111) 15,834 (4,396) - (39,520)

Non-controlling interests (39,973) - - - - (39,973)

(68,820) (22,111) 15,834 (4,396) - (79,493)

Page 17

FY2013 Operating Segment Results


$’000 $’000 $’000 $’000 $’000 $’000

Revenue

External revenue 645,226 125,881 31,650 57,011 - 859,768


Total revenue 645,226 126,021 31,708 57,011 (198) 859,768

Segment results

Operating profit/(loss) 28,399 2,078 6,562 82,846 - 119,885


properties - - 20,107 - - 20,107

Impairment losses (2,699) - - - - (2,699)

Finance costs (6,676) (2,904) (7,140) (10,441) - (27,161)


associates and joint ventures (7,663) (7,783) 1,652 (3,041) - (16,835)

Profit/(Loss) before tax 11,361 (8,609) 21,181 69,364 - 93,297

Income tax (expense)/credit (11,075) (5,423) 50,548 (743) - 33,307

Profit/(Loss) after tax 286 (14,032) 71,729 68,621 - 126,604


Owners of the Company (6,823) (14,032) 71,729 68,621 - 119,495

Non-controlling interests 7,109 - - - - 7,109

286 (14,032) 71,729 68,621 - 126,604

FY2012 Operating Segment Results


$’000 $’000 $’000 $’000 $’000 $’000

Revenue

External revenue 942,875 156,957 59,305 14 - 1,159,151


Total revenue 942,875 157,230 59,364 14 (332) 1,159,151

Segment results

Operating profit/(loss) (20,079) (24,843) 13,801 2,216 - (28,905)


properties - 32 27,066 - - 27,098

Impairment losses (58,196) (10,058) - - - (68,254)

Finance costs (8,129) (1,202) (6,489) (11,623) - (27,443)


associates and joint ventures 2,056 109 308 - - 2,473

Profit/(Loss) before tax (84,348) (35,962) 34,686 (9,407) - (95,031)

Income tax (expense)/credit (11,807) (239) (5,338) (589) - (17,973)

Profit/(Loss) after tax (96,155) (36,201) 29,348 (9,996) - (113,004)


Owners of the Company (38,387) (36,201) 29,348 (9,996) - (55,236)

Non-controlling interests (57,768) - - - - (57,768)

(96,155) (36,201) 29,348 (9,996) - (113,004)

Page 18

Resources

The Group’s resources revenue for 4Q2013 decreased by 40% to $136.6 million compared

with 4Q2012. For FY2013, revenue decreased by 32% to $645.2 million compared with

FY2012. This was mainly due to lower sales quantity of refined tin.

The Group’s resources operations turned around with a $7.2 million profit after tax and

non-controlling interests for 4Q2013, from a $28.8 million loss after tax and non-

controlling interests for 4Q2012. For FY2013, loss after tax and non-controlling interests

was lower at $6.8 million compared with $38.4 million for FY2012.

The operations at Butterworth and Rahman Hydraulic are profitable, on the back of higher

tin prices and higher profit from sales of by-products. PT Koba Tin reported a lower loss in

4Q2013 and FY2013 compared with the previous corresponding periods. The loss at PT

Koba Tin was mainly due to on-going care and maintenance expenditure incurred, write

down of its tin inventory’s net realizable value in 2Q2013 and impairment of receivables.

Following the non-renewal of the Contract of Work (“CoW”) of PT Koba Tin, the Group has

ceased all mining operations in Indonesia. Consequently, the Group has entered into

preliminary negotiations with potential buyers to dispose of Bemban Corporation Limited

(“BCL”) group, which includes PT Koba Tin.

The share of losses in associates and joint ventures were mainly due to mine closure costs

for the Rapu Rapu mine in the Philippines.

The Group has reviewed the carrying value of its investments in its resources operations

and has made a net impairment provision of $2.7 million during the year.

Hospitality

The Group ceased to recognise revenue from its hospitality operations upon completion of

the sales of:

1. Rendezvous Grand Hotel Singapore and Rendezvous Gallery to Far East

Hospitality Trust and Serene Land Pte Ltd on 1 August 2013, and

2. The Group’s Australian hotels, hotel management contracts and leases to its

30% associate, FEHH on 1 November 2013.

Consequently, revenue for the Group’s hospitality operations were lower at $12.8 million

for 4Q2013 and $125.9 million for FY2013, compared with $41.7 million for 4Q2012 and

$157.0 million for FY2012.

The Group’s hospitality operations reported a lower loss after tax of $10.4 million for

4Q2013 and $14.0 million for FY2013, against a loss after tax of $22.1 million for 4Q2012

and $36.2 million for FY2012. This was due to improved operating performances from the

Group’s owned and leased hotels on the back of higher occupancies achieved by some of

the hotels for the ten-month periods as well as lower corporate costs. The Group’s share of

losses in associates was principally due to one-off transaction costs incurred by FEHH.

Property

The Group’s property revenue for 4Q2013 decreased by 83% to $5.0 million compared

with 4Q2012. For FY2013, revenue decreased by 47% to $31.7 million compared with

FY2012. This was mainly due to lower sales of development properties and lower rental

revenue.

Page 19

Property operations reported profit after tax of $15.2million for 4Q2013 marginally lower

than 4Q2012. For FY2013, profit after tax was higher at $71.7 million compared with $29.3

million for FY2012. This was primarily due to the reversal of tax provisions in relation to

certain investment properties that were no longer required.

The Group has equity accounted for ARA commencing December 2013.

Others

In May 2013, the Group accepted the mandatory conditional cash offers for WBL made by

UE Centennial Venture Pte Ltd and recorded a gain of $91.8 million from the disposal.

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

shareholders, any variance between it and the actual results.

No prospect statement was disclosed in the third quarter 2013 financial results

announcement made on 14 November 2013.

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.

Through a series of corporate actions undertaken in 2013, the Group has successfully

transformed itself with stakes in various platforms of growth.

a. In May 2013, the Group divested its entire stake in WBL for gross proceeds of

S$508.8 million.

b. The Group’s Singapore hospitality assets were sold in August 2013, and its

Australian hospitality assets and businesses were sold in November 2013 to

FEHH. Including its joint venture with Toga Pty Ltd, FEHH now has a fully

operational hospitality portfolio of over 13,000 rooms across 80 properties

worldwide.

c. In November 2013, the Group acquired a 20.1% stake in ARA. At the same time,

it entered into a strategic alliance with Mr John Lim, CEO and substantial

shareholder of ARA, to transform its property division into a dynamic real estate

investment platform.

As a result, the Group at present has a diversified portfolio that spans the Asia Pacific

region with four key businesses:

1. a 89.5% stake in Straits Real Estate, a co-investment vehicle that seeks out real

estate related investments & opportunities.

2. a 20.1% stake in ARA, one of the largest real estate fund managers in the region.

3. a 30.0% stake in FEHH, a sizable Asia Pacific hospitality group.

4. a 54.8% stake in Malaysia Smelting Corporation Berhad, the 2nd largest refined

tin producer globally.

Economic conditions globally remain mixed. The Board is cognizant of the exposure of the

Group’s portfolio to uncertainties in the business and economic environments. The Group

will continue to exercise prudence and focus on executing its strategies through the newly

created platforms and seize any new opportunities that may arise.

Page 20

11. Dividend

(a) Current Financial Period Reported On

Any dividend declared for the current financial period reported on?

Yes.

Name of Dividend Interim

Dividend Type Cash

Dividend Amount per Share (in cents) 4 cents per ordinary share (one-tier tax)

Tax Rate N.A.

(b) Corresponding Period of the Immediately Preceding Financial Year

Any dividend declared for the corresponding period of the immediately

preceding financial year?

Yes.

Name of Dividend Interim

Dividend Type Cash

Dividend Amount per Share (in cents) 4 cents per ordinary share (one-tier tax)

Tax Rate N.A.

(c) Date payable

9 May 2014.

(d) Books closure date

23 April 2014 at 5.00p.m.

(e) Annual General Meeting

The Annual General Meeting of the Company will be held at the Symphony

Rooms 2 and 3, Level 2, Rendezvous Grand Hotel Singapore, 9 Bras Basah Road,

Singapore 189559 on Wednesday, 30 April 2014 at 2.30 p.m.

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

Not applicable.

13. If the Group has obtained a general mandate from shareholders for IPTs, the aggregate

value of such transactions as required under Rule 920(1)(a)(ii). If no IPT mandate has

been obtained, a statement to that effect.

The Company did not seek and does not have a general mandate from shareholders

pursuant to Rule 920 of the Listing Manual.

Page 21

14. Negative confirmation pursuant to Rule 705(5).

Not applicable.

PART II - ADDITIONAL INFORMATION REQUIRED FOR FULL YEAR ANNOUNCEMENT

15. 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.

Please refer to item 8 for the segmented revenue and results of the various businesses of

the Group.

16. In the review of performance, the factors leading to any material changes in

contributions to turnover and earnings by the business or geographical segments.

Please refer to item 8.

2013 Geographical Information

Singapore Malaysia Australia Others Elimination Consolidated

$’000 $’000 $’000 $’000 $’000 $’000

Segment Revenue

Revenue from external

parties 103,444 630,717 86,102 39,505 859,768

Inter-segment revenue 1,918 - - - (1,918) -

Total revenue 105,362 630,717 86,102 39,505 (1,918) 859,768

2012 Geographical Information

Singapore Malaysia Australia Others Elimination Consolidated

$’000 $’000 $’000 $’000 $’000 $’000

Segment Revenue

Revenue from external

parties 87,520 939,479 104,519 27,633 – 1,159,151

Inter-segment revenue 1,574 – – 53,840 (55,414) –

Total revenue 89,094 939,479 104,519 81,473 (55,414) 1,159,151

Page 22

17. A breakdown of revenue and profit after tax for continuing operations are as follows:

2013 2012 + or (-)

$’000 $’000 %

(restated)

(a) Total revenue reported for first half year 409,610 506,803 (19.2)

(b) Profit/(Loss) after tax before deducting non-

controlling interests reported for first half year 78,810 13,519 483.0

(c) Total revenue reported for second half year 307,926 437,592 (29.6)

(d) Profit/(Loss) after tax before deducting non-

controlling interests reported for second half year 67,292 13,957 382.1

18. A breakdown of the total annual dividend (in dollar value) for the issuer’s latest full year

and its previous full year.

Total Annual Dividend

Latest Full Year ($’000) Previous Full Year ($’000)

Ordinary 16,324 15,776

Special 197,199 -

Total: 213,523 15,776

19. Disclosure of person occupying a managerial position in the issuer or any of its principal

subsidiaries who is a relative of a director or chief executive officer or substantial

shareholder of the issuer

Pursuant to Rule 704(13) of the Listing Manual of the Singapore Exchange Securities Trading

Limited, the Company confirms that none of the persons occupying managerial positions in

the Company or any of its principal subsidiaries is a relative of a director or substantial

shareholder of the Company.

BY ORDER OF THE BOARD

Aldric Tan Jee Wei

Secretary

28 February 2014

Singapore

This Announcement will be available at the Company’s website at http://www.stc.com.sg/

Documents

The Straits Trading Company Limited (Company Registration No. : …straitstrading.listedcompany.com/newsroom/20140228_225803_S20_B95274E… · Interest income 1,733 1,182 5,636 6,201