FINANCIAL STATEMENT AND DIVIDEND ANNOUNCEMENT http://info.sgx.com/webcorannc.nsf/vwprint/6f41d92b84d62cb24825726f001fe78d?opendocu... Page 1 of 1 30/01/2007 Print this page SingPost Group's unaudited results for the third quarter and nine months ended 31 December 2006 * Financial Statement And Dividend Announcement * Asterisks denote mandatory information Name of Announcer * Company Registration No. Announcement submitted on behalf of Announcement is submitted with respect to * Announcement is submitted by * Designation * SINGAPORE POST LIMITED 199201623M SINGAPORE POST LIMITED SINGAPORE POST LIMITED Leong Chee Sian (Ms) Company Secretary Date & Time of Broadcast 30-Jan-2007 17:07:19 Announcement No. 00043 >> Announcement Details The details of the announcement start here... For the Financial Period Ended * 31-12-2006 Attachments: Q3FY0607SGXNET.pdf Total size = 148K (2048K size limit recommended) Close Window
SINGAPORE POST LIMITED AND ITS SUBSIDIARIES SGXNET ANNOUNCEMENT UNAUDITED RESULTS FOR THE THIRD QUARTER AND NINE MONTHS ENDED 31 DECEMBER 2006 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. FY2006/07 FY2005/06 FY2006/07 FY2005/06 3 rd Qtr 3 rd Qtr Variance 9 Months 9 Months Variance S$'000 S$'000 % S$'000 S$'000 % Revenue 111,758 107,980 3.5 323,400 307,802 5.1 Other gains (net) - Rental and property related income 5,108 4,471 14.2 15,002 13,316 12.7 - Miscellaneous 789 1,839 (57.1) 6,965 3,987 74.7 Labour and related costs (27,901) (28,368) (1.6) (84,611) (82,460) 2.6 Volume related costs + (27,593) (25,552) 8.0 (78,212) (72,225) 8.3 Administrative and others (9,482) (9,392) 1.0 (27,655) (27,072) 2.2 Depreciation (6,390) (6,374) 0.3 (19,126) (19,168) (0.2) Selling expenses (2,704) (2,846) (5.0) (7,832) (8,286) (5.5) Finance expenses (2,660) (2,132) 24.8 (8,158) (6,164) 32.3 Total expenses (76,730) (74,664) 2.8 (225,594) (215,375) 4.7 Share of profit of associated company and joint ventures 1,028 1,734 (40.7) 4,793 5,807 (17.5) Profit before income tax 41,953 41,360 1.4 124,566 115,537 7.8 Income tax expense (7,707) (8,400) (8.3) (23,010) (22,722) 1.3 Total profit 34,246 32,960 3.9 101,556 92,815 9.4 Attributable to: Equity holders of the Company 34,118 32,810 4.0 101,182 92,420 9.5 Minority interest 128 150 (14.7) 374 395 (5.3) 34,246 32,960 3.9 101,556 92,815 9.4 Underlying Net Profit * 34,118 32,810 4.0 95,881 92,420 3.7 Operating Profit ** 43,281 40,843 6.0 127,007 113,570 11.8 Earnings per share for profit attributable to the equity holders of the Company during the period - basic 1.78 cents 1.72 cents 5.29 cents 4.85 cents - diluted 1.78 cents 1.72 cents 5.28 cents 4.84 cents Notes Certain comparatives have been restated to conform to current year s presentation. + Volume related costs comprise mainly of traffic and mail outsourcing expenses. * Underlying net profit is defined as profit after tax and minority interest, excluding gain on sale of properties. ** Operating profit for the purposes of paragraph 8 Review of the performance of the Group is defined as profit before interest, tax, exceptional items and share of profit of associated company and joint ventures. 2
(1)(a)(ii) Other operating income and interest income 5,897 6,310 (6.5) 21,967 17,303 27.0 Interest on borrowings 2,690 2,113 27.3 8,286 6,138 35.0 Depreciation and amortisation 6,399 6,383 0.3 19,153 19,195 (0.2) Impairment of doubtful debts and bad debts written off 130 - N.M. 217 124 75.0 Foreign exchange gain 397 845 (53.0) 618 1,526 (59.5) Adjustments for overprovision of tax in respect of prior years 1,000 - N.M. 1,429 826 73.0 Gain on sale of investments, properties, plant and equipment 9 11 (18.2) 5,330 7 @ N.M. Denotes 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. The Group The Company Dec-06 Mar-06 Dec-06 Mar-06 S$ 000 S$ 000 S$ 000 S$ 000 ASSETS Current assets Cash and cash equivalents 65,772 53,258 60,761 45,659 Trade and other receivables 58,126 52,346 40,025 43,447 Inventories 800 5 72 - Other current assets 3,962 3,632 2,710 2,228 128,660 109,241 103,568 91,334 Non-current assets Trade and other receivables 612 504 9,943 3,260 Investments in associated company and joint ventures 85,619 87,120 83,372 83,372 Investments in subsidiaries - - 12,105 12,105 Property, plant and equipment 495,662 513,436 492,095 509,379 Intangible asset 333 360 333 360 Other non-current assets 200 200 200 200 582,426 601,620 598,048 608,676 Total assets 711,086 710,861 701,616 700,010 LIABILITIES Current liabilities Trade and other payables 149,559 140,584 150,851 141,981 Current income tax liabilities 38,740 38,415 37,979 37,486 188,299 178,999 188,830 179,467 Non-current liabilities Borrowings 324,331 349,452 324,331 349,452 Derivative financial instruments 5,128 9,922 5,128 9,922 Deferred income tax liabilities 21,080 22,491 20,646 22,057 Deferred income 4 57 4 57 350,543 381,922 350,109 381,488 Total liabilities 538,842 560,921 538,939 560,955 NET ASSETS 172,244 149,940 162,677 139,055 EQUITY Capital and reserves attributable to the Company s equity holders Share capital 105,187 103,057 105,187 103,057 Other reserves 4,656 4,424 1,736 1,209 Retained earnings 58,813 39,003 55,754 34,789 168,656 146,484 162,677 139,055 Minority interest 3,588 3,456 - - Total equity 172,244 149,940 162,677 139,055 4
(1)(b)(ii) In relation to the aggregate amount of the Group s borrowings and debt securities. Dec-06 S$ 000 Mar-06 S$ 000 Amount repayable in one year or less or on demand - - Amount repayable after one year Bank term loan (unsecured) 29,910 59,880 Bonds (unsecured) 294,421 289,572 324,331 349,452 (a) The bank term loan of principal amount S$60 million obtained on 6 March 2006 for the Group s general operational purposes was partially repaid as of 31 December 2006. The current outstanding loan of principal amount S$30 million has a term of three years from 28 March 2006 and is repayable in full upon maturity of that term. Interest is charged at a floating rate pegged to the Singapore dollar swap offer rate prevailing for each short-term interest period plus a fixed margin. Interest is payable at the end of each interest period. (b) The Singapore Dollar unsecured bonds of principal amount S$300 million listed on the SGX-ST have a maturity period of 10 years from 11 April 2003 and a fixed interest rate of 3.13% per annum. Details of any collateral. Not applicable. 5
(1)(c) Cash flow statement (for the Group), together with a comparative statement for the corresponding period of the immediately preceding financial year. The Group FY2006/07 FY2005/06 FY2006/07 FY2005/06 3 rd Qtr 3 rd Qtr 9 Months 9 Months S$'000 S$'000 S$'000 S$'000 Cash flows from operating activities Total profit 34,246 32,960 101,556 92,815 Adjustments for: Tax 7,707 8,400 23,010 22,722 Amortisation of franchise fees received (12) (23) (53) (69) Amortisation of licence fee 9 9 27 27 Depreciation of property, plant and equipment 6,390 6,374 19,126 19,168 Gain on disposal of property, plant and equipment (9) (11) (5,330) (7) Interest expense 2,690 2,113 8,286 6,138 Interest income (304) (915) (924) (2,324) Share of profit of associated company and joint ventures (1,028) (1,734) (4,793) (5,807) Impairment of receivables 115-195 87 15,558 14,213 39,544 39,935 Operating cash flow before working capital changes 49,804 47,173 141,100 132,750 Changes in operating assets and liabilities Inventories (739) (2) (795) 14 Trade and other receivables (1,767) 1,662 (6,406) (10,800) Trade and other payables 11,006 4,270 12,815 6,606 Cash generated from operations 58,304 53,103 146,714 128,570 Income tax paid (10,327) (10,126) (24,096) (24,003) Net cash inflow from operating activities 47,977 42,977 122,618 104,567 Cash flows from investing activities Dividends received from associated company - - - 1,269 Dividends received from joint venture companies 2,500-6,100 7,500 Interest received 299 813 919 2,223 Investment in joint venture company - - (100) - Purchase of property, plant and equipment (2,875) (2,122) (5,207) (7,065) Proceeds from sale of property, plant and equipment 37 14 7,921 34 Net cash (outflow)/inflow from investing activities (39) (1,295) 9,633 3,961 Cash flows from financing activities Dividends paid to shareholders (23,942) (23,865) (81,372) (99,160) Dividends paid to a minority shareholder - - (240) - Interest paid (5,005) (4,006) (10,054) (7,361) Proceeds from issue of shares 178 1,177 1,929 3,667 Proceeds from draw down of short term credit facility - 25,000-25,000 Repayment of bank term loan (10,000) - (30,000) - Net cash outflow from financing activities (38,769) (1,694) (119,737) (77,854) Net increase in cash and cash equivalents held 9,169 39,988 12,514 30,674 Cash and cash equivalents at beginning of financial period 56,603 149,734 53,258 159,048 Cash and cash equivalents at end of financial period 65,772 189,722 65,772 189,722 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 Attributable to equity Minority Total holders of the Company interest equity Share Other Retained capital* reserves earnings S$ 000 S$ 000 S$ 000 S$ 000 S$ 000 Balance at 1 October 2006 104,991 4,227 48,637 3,463 161,318 Currency translation differences - 98 - (3) 95 Cash flow hedges - 139 - - 139 Net gains/(losses) recognised directly in equity - 237 - (3) 234 Net profit - - 34,118 128 34,246 Total recognised gains - 237 34,118 125 34,480 Dividends relating to FY2006/07 - - (23,942) - (23,942) Employee share option scheme: - Value of employee services - 210 - - 210 - Proceeds from shares issued 196 (18) - - 178 Balance at 31 December 2006 105,187 4,656 58,813 3,588 172,244 Balance at 1 October 2005 100,001 5,227 213,976 3,165 322,369 Currency translation differences - (220) - 2 (218) Cash flow hedges - 1 - - 1 Net (losses)/gains recognised directly in equity - (219) - 2 (217) Net profit - - 32,810 150 32,960 Total recognised (losses)/gains - (219) 32,810 152 32,743 Dividends relating to FY2005/06 - - (214,797) - (214,797) Employee share option scheme: - Value of employee services - 160 - - 160 - Proceeds from shares issued 1,412 (235) - - 1,177 Balance at 31 December 2005 101,413 4,933 31,989 3,317 141,652 7
The Group Attributable to equity Minority Total holders of the Company interest equity Share Other Retained capital* reserves earnings S$ 000 S$ 000 S$ 000 S$ 000 S$ 000 Balance at 1 April 2006 103,057 4,424 39,003 3,456 149,940 Currency translation differences - (233) - (2) (235) Cash flow hedges - (62) - - (62) Net losses recognised directly in equity - (295) - (2) (297) Net profit - - 101,182 374 101,556 Total recognised (losses)/gains - (295) 101,182 372 101,259 Dividends relating to FY2005/06 - - (33,495) - (33,495) Dividends relating to FY2006/07 - - (47,877) - (47,877) Dividend to minority shareholder relating to FY2005/06 - - - (240) (240) Employee share option scheme: - Value of employee services - 728 - - 728 - Proceeds from shares issued 2,130 (201) - - 1,929 Balance at 31 December 2006 105,187 4,656 58,813 3,588 172,244 Balance at 1 April 2005 97,362 4,048 229,661 2,919 333,990 Currency translation differences - 952-3 955 Cash flow hedges - (169) - - (169) Net gains recognised directly in equity - 783-3 786 Net profit - - 92,420 395 92,815 Total recognised gains - 783 92,420 398 93,601 Dividends relating to FY2004/05 - - (51,454) - (51,454) Dividends relating to FY2005/06 - - (238,638) - (238,638) Employee share option scheme: - Value of employee services - 486 - - 486 - Proceeds from shares issued 4,051 (384) - - 3,667 Balance at 31 December 2005 101,413 4,933 31,989 3,317 141,652 8
The Company Share Other Retained Total capital* reserves earnings equity S$ 000 S$ 000 S$ 000 S$ 000 Balance at 1 October 2006 104,991 1,544 44,332 150,867 Net profit - - 35,364 35,364 Total recognised gains - - 35,364 35,364 Dividends relating to FY2006/07 - - (23,942) (23,942) Employee share option scheme: - Value of employee services - 210-210 - Proceeds from shares issued 196 (18) - 178 Balance at 31 December 2006 105,187 1,736 55,754 162,677 Balance at 1 October 2005 100,001 905 214,270 315,176 Net profit - - 30,889 30,889 Total recognised gains - - 30,889 30,889 Dividends relating to FY2005/06 - - (214,797) (214,797) Employee share option scheme: - Value of employee services - 160-160 - Proceeds from shares issued 1,412 (235) - 1,177 Balance at 31 December 2005 101,413 830 30,362 132,605 Balance at 1 April 2006 103,057 1,209 34,789 139,055 Net profit - - 102,337 102,337 Total recognised gains - - 102,337 102,337 Dividends relating to FY2005/06 - - (33,495) (33,495) Dividends relating to FY2006/07 - - (47,877) (47,877) Employee share option scheme: - Value of employee services - 728-728 - Proceeds from shares issued 2,130 (201) - 1,929 Balance at 31 December 2006 105,187 1,736 55,754 162,677 Balance at 1 April 2005 97,362 728 225,093 323,183 Net profit - - 95,361 95,361 Total recognised gains - - 95,361 95,361 Dividends relating to FY2004/05 - - (51,454) (51,454) Dividends relating to FY2005/06 - - (238,638) (238,638) Employee share option scheme: - Value of employee services - 486-486 - Proceeds from shares issued 4,051 (384) - 3,667 Balance at 31 December 2005 101,413 830 30,362 132,605 * Under the Companies (Amendment) Act 2006 effective 30 January 2006, the concepts of par value and authorised share capital are abolished. Included in share capital as at 31 December 2005 is share premium amounting to S$5,943,000. 9
(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 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 three months ended 31 December 2006, the Company issued 294,000 ordinary shares at prices ranging from S$0.547 to S$0.923 upon the exercise of options granted under the Singapore Post Share Option Scheme. As at 31 December 2006, there were unexercised options of 17,479,118 (31 December 2005 : 20,365,164) of unissued ordinary shares under the Singapore Post Share Option Scheme. (2) Whether the figures have been audited or reviewed and in accordance with which auditing standard or practice. The figures have been reviewed in accordance with Singapore Auditing Practice 11 Review of Interim Financial Information. (3) Where figures have been audited or reviewed, the auditors report (including any qualifications or emphasis of matter). The Board of Directors Singapore Post Limited 10 Eunos Road 8 Singapore Post Centre Singapore 408600 30 January 2007 Dear Sirs SINGAPORE POST LIMITED AND ITS SUBSIDIARIES REVIEW OF INTERIM FINANCIAL INFORMATION FOR THE THIRD QUARTER AND NINE MONTHS ENDED 31 DECEMBER 2006 We have performed a review on certain interim financial information of Singapore Post Limited (the Company ) and its subsidiaries (the Group ) as at 31 December 2006 and for the third quarter and nine months ended 31 December 2006. Such interim financial information has been prepared by the Company for announcement on the Singapore Exchange. 10
Appendix 7.2 of the Singapore Exchange Securities Trading Limited Listing Manual (the Listing Manual ) requires the preparation of interim financial information to be in compliance with the relevant provisions thereof. The accompanying interim financial information comprises the balance sheet of the Company and the consolidated balance sheet of the Group as at 31 December 2006, and the consolidated income statements of the Group, the statements of changes in equity of the Company and of the Group and consolidated cash flows of the Group for the third quarter and nine months ended 31 December 2006. The interim financial information is the responsibility of, and has been approved by the directors. Our responsibility is to issue a report solely for the use of the directors on the interim financial information based on our review. We conducted our review in accordance with the Singapore Statement of Auditing Practice 11, Review of Interim Financial Information. A review of interim financial information consists principally of applying analytical review procedures to financial data and making inquiries of, and having discussions with, persons responsible for financial and accounting matters. It is substantially less in scope than an audit in accordance with Singapore Standards on Auditing and does not provide assurance that we would become aware of any or all significant matters that might be identified in an audit. We have not performed an audit and, accordingly, we do not express an audit opinion. Based on our review, nothing has come to our attention that causes us to believe that there are any material modifications that need to be made to the accompanying interim financial information for it to be in accordance with Appendix 7.2 of the Listing Manual. Yours faithfully PricewaterhouseCoopers Certified Public Accountants Singapore (4) Whether the same accounting policies and methods of computation as in the issuer s most recently audited annual financial statements have been applied. 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 2006. (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. None. 11
(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. The Group FY2006/07 FY2005/06 FY2006/07 FY2005/06 3 rd Qtr 3 rd Qtr 9 Months 9 Months Based on weighted average number of ordinary shares in issue 1.78 cents 1.72 cents 5.29 cents 4.85 cents On fully diluted basis 1.78 cents 1.72 cents 5.28 cents 4.84 cents (7) Net asset value (for the issuer and Group) per ordinary share based on issued share capital of the issuer at the end of the current financial period reported on and immediately preceding financial year. The Group The Company Dec-06 Mar-06 Dec-06 Mar-06 Net asset value per ordinary share based on issued share capital of the Company at the end of the financial period (cents) 8.8 7.7 8.5 7.3 (8) Review of the performance of the Group. (8)(i) Financial Highlights Third Quarter ended 31 December 2006 Group revenue rose 3.5% from S$108.0 million to S$111.8 million, underpinned by the improved contributions from all business segments: Mail revenue increased 3.5% from S$83.1 million to S$86.0 million, as all business lines performed better. Logistics revenue grew 3.0% from S$16.4 million to S$16.9 million, due to increased contributions from Speedpost. Retail revenue was higher by 12.2% from S$12.9 million to S$14.5 million, as increased contributions from financial services, retail product revenue and vpost mail-order transactions offset the decline in bill presentment and agency services. Rental and property related income rose 14.2% from S$4.5 million to S$5.1 million as the Group benefitted from yield enhancement initiatives. Miscellaneous gains decreased 57.1% from S$1.8 million to S$0.8 million, mainly as a result of lower interest income and traderelated exchange gains. 12
Costs remained under control, with total expenses increasing 2.8% from S$74.7 million to S$76.7 million. Administrative and other costs were contained, rising only 1.0% from S$9.4 million to S$9.5 million. Selling expenses were lower by 5.0% from S$2.8 million to S$2.7 million, while labour and related costs dropped slightly by 1.6% from S$28.4 million to S$27.9 million. Volume-related costs were higher by 8.0% from S$25.6 million to S$27.6 million as a result of increased business activities. Finance expenses increased 24.8% from S$2.1 million to S$2.7 million, due to higher borrowings and higher interest rates. As a result, the Group s operating profit increased by 6.0% from S$40.8 million to S$43.3 million. All business segments recorded improvements in operating profit. Mail operating profit rose by 3.4% from S$33.3 million to S$34.4 million. In Logistics, operating profit was higher by 9.0% from S$2.9 million to S$3.2 million. Retail operating profit grew by 25.3% from S$2.2 million to S$2.7 million, as a result of the increased contributions of higher value financial services. Share of profit of associated company and joint ventures declined by S$0.7 million from S$1.7 million to S$1.0 million. The Spring JV continued to face pricing pressure and intense competition in the cross-border business mail market. It is currently reviewing and restructuring its operations in certain loss-making markets, namely in the US and Europe. The Group s net profit grew 4.0% from S$32.8 million to S$34.1 million for Q3 FY2006/07. Nine Months ended 31 December 2006 The Group achieved a 5.1% growth in revenue from S$307.8 million to S$323.4 million in the nine months ended 31 December 2006. All business segments recorded improved performances. Rental and property related income rose 12.7% from S$13.3 million to S$15.0 million, as the Group benefited from yield enhancement initiatives. Miscellaneous gains rose by 74.7% from S$4.0 million to S$7.0 million due to the gains from the sale of two properties, partly offset by lower interest income and trade-related exchange gains. Total expenses rose by 4.7% from S$215.4 million to S$225.6 million. Labour and related costs and volume-related costs were higher in tandem with the increased business activities. Finance expenses increased 32.3% from S$6.2 million to S$8.2 million, due to higher borrowings and higher interest rates. As a result of the good operating performance, the Group achieved operating profit growth of 11.8% from S$113.6 million to S$127.0 million. Share of profit of associated company and joint ventures declined by 17.5% from S$5.8 million to S$4.8 million. The Spring JV continued to face pricing pressure and intense competition. The Group s net profit rose 9.5% from S$92.4 million to S$101.2 million. Excluding the gains from the sale of properties, underlying net profit increased 3.7% to S$95.9 million. Balance Sheet The Group s shareholders funds increased from S$146.5 million as at 31 March 2006 to S$168.7 million as at 31 December 2006. 13
Total borrowings decreased from S$349.5 million as at 31 March 2006 to S$324.3 million as at 31 December 2006. The original term loan of S$60 million obtained in March 2006 was reduced to S$30 million at end-december 2006, following the repayment of S$10 million during the third quarter and S$20 million during the first half. Cash Flow The Group s cash flow generation remained robust. Net cash inflow from operating activities amounted to S$122.6 million in the 9 months of FY2006/07, compared to S$104.6 million previously. (8)(ii) Detailed Financial Analysis Revenue Revenue by segments: Revenue FY2006/07 FY2005/06 FY2006/07 FY2005/06 3 rd Qtr 3 rd Qtr Variance 9 Months 9 Months Variance S$ 000 S$ 000 % S$ 000 S$ 000 % Mail 86,030 83,138 3.5 250,596 242,149 3.5 Logistics 16,875 16,390 3.0 48,344 45,649 5.9 Retail 14,454 12,882 12.2 41,185 36,306 13.4 Inter-segment eliminations (5,601) (4,430) 26.4 (16,725) (16,302) 2.6 Total 111,758 107,980 3.5 323,400 307,802 5.1 Operating Profit Operating profit by segments: Operating Profit FY2006/07 FY2005/06 FY2006/07 FY2005/06 3 rd Qtr 3 rd Qtr Variance 9 Months 9 Months Variance S$ 000 S$ 000 % S$ 000 S$ 000 % Mail 34,441 33,307 3.4 99,011 95,426 3.8 Logistics 3,196 2,931 9.0 7,431 6,534 13.7 Retail 2,747 2,192 25.3 6,963 4,780 45.7 Others 2,897 2,413 20.1 13,602 6,830 99.2 Total 43,281 40,843 6.0 127,007 113,570 11.8 (9) Where a forecast or a prospect statement has been previously disclosed to shareholders, any variance between it and the actual results. Not applicable. 14
(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. SingPost believes it is well positioned to meet the challenges of deregulation of the basic mail services market in April 2007. The Group continues to pursue its strategy of enhancing the core business and leveraging the retail and distribution network for growth. It will continue to extend its regional reach with initiatives to roll out the hybrid mail and vpost businesses into the regional markets. (11) Dividends (11)(i) Current financial period reported on Interim dividend In relation to the third quarter ended 31 December 2006, the Board of Directors has declared an interim dividend of 1.25 cents per ordinary share (tax exempt one-tier). The interim dividend of 1.25 cents per ordinary share will be paid on 28 February 2007. The transfer book and register of members of the Company will be closed on 15 February 2007 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 5.00pm on 14 February 2007 will be registered to determine members entitlement to the dividend. (11)(ii) Corresponding period of the immediately preceding financial year Interim dividend An interim dividend of 1.25 cents per ordinary share (tax exempt one-tier) in relation to the third quarter of FY2005/06 ended 31 December 2005 was declared on 27 January 2006 and paid on 28 February 2006. (12) If no dividend has been declared (recommended), a statement to that effect. Not applicable. 15
PART II ADDITIONAL INFORMATION REQUIRED FOR QUARTERLY ANNOUNCEMENT (13) Interested Person Transactions During the third quarter and nine months ended 31 December 2006, the following interested person transactions were entered into by the Group: 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$100,000) Sales FY2006/07 FY2005/06 FY2006/07 FY2005/06 3 rd Qtr 3 rd Qtr 3 rd Qtr 3 rd Qtr S$ 000 S$ 000 S$ 000 S$ 000 Singapore Airlines Limited and its associates - - - 875 Singapore Telecommunications Limited and its associates - - - 3,786 - - - 4,661 Purchases Power Seraya Ltd and its associates - - - - SembCorp Industries Ltd and its associates - - - - Singapore Airlines Limited and its associates - - - - Singapore Technologies Engineering Ltd and its associates - - - - Singapore Telecommunications Limited and its associates - - - 101 Temasek Capital (Private) Limited and its associates - - - - - - - 101 Total interested person transactions - - - 4,762 16
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$100,000) Sales FY2006/07 FY2005/06 FY2006/07 FY2005/06 9 Months 9 Months 9 Months 9 Months S$ 000 S$ 000 S$ 000 S$ 000 Singapore Airlines Limited and its associates - 920 4,108* 2,041 Singapore Telecommunications Limited and its associates - - 15,160* 6,780-920 19,268 8,821 Purchases Aetos Security Management Private Limited and its associates - - 191 - Power Seraya Ltd and its associates - - 12,271* - SembCorp Industries Ltd and its associates - 5,700-590 Singapore Airlines Limited and its associates - - 594 758 Singapore Technologies Engineering Ltd and its associates - - - 470* Singapore Telecommunications Limited and its associates - 495 1,175* 449* Temasek Capital (Private) Limited and its associates - - 671* - - 6,195 14,902 2,267 Total interested person transactions - 7,115 34,170 11,088 Note All the transactions set out in the above tables 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 3 months to 3 years) or based on actual transacted values during the period for open-ended contracts. * Include contracts of duration exceeding one year. 17
PART III CONFIRMATION BY THE BOARD PURSUANT TO RULE 705(4) OF THE LISTING MANUAL On behalf of the Board of Directors of the Company, we, the undersigned, hereby confirm to the best of our knowledge that nothing has come to the attention of the Board of Directors of the Company which may render the financial statements for the third quarter and nine months ended 31 December 2006 to be false or misleading. On behalf of the Board of Directors MR LIM HO KEE Chairman MR LAU BOON TUAN Director Singapore 30 January 2007 18