KEPPEL TELECOMMUNICATIONS & TRANSPORTATION LTD

Keppel Telecommunications & Transportation Ltd, Page 6 of 15 Notes to Consolidated Statement of Cash Flows A. Disposal of Subsidiary During the financ...

0 downloads 140 Views 846KB Size
KEPPEL TELECOMMUNICATIONS & TRANSPORTATION LTD (Co Reg No: 196500115G)

Full Year Financial Statements And Dividend Announcement 1

UNAUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2009 The Directors of Keppel Telecommunications & Transportation Ltd advise the following unaudited results of the Group for the year ended 31 December 2009.

1(a)

CONSOLIDATED PROFIT AND LOSS ACCOUNTS for the year ended 31 December 2009 Group

REVENUE Less operating expenses OPERATING PROFIT

2009 $’000

2008 $’000

113,336

128,868

(12.1)

(105,027)

(117,980)

(11.0)

8,309

10,888

(23.7)

+/(-)%

Interest income Interest expense Share of results of associated companies and jointly controlled entity

1,430 (3,007)

1,948 (2,574)

(26.6) 16.8

58,523

56,227

4.1

PROFIT BEFORE TAX AND EXCEPTIONAL ITEMS

65,255

66,489

(1.9)

Exceptional items

(8,596)

(3,491)

146.2

PROFIT BEFORE TAXATION Taxation

56,659 (8,994)

62,998 (7,998)

(10.1) 12.5

PROFIT FOR THE YEAR

47,665

55,000

(13.3)

Attributable to: Shareholders of the Company Profit before exceptional items Exceptional items

52,915 (8,307)

55,492 (3,467)

(4.6) 139.6

Minority interests

44,608 3,057

52,025 2,975

(14.3) 2.8

47,665

55,000

(13.3)

Earnings per share Before exceptional items - basic - diluted

9.6 cts 9.6 cts

10.1 cts 10.0 cts

(5.0) (4.0)

After exceptional items - basic - diluted

8.1 cts 8.1 cts

9.4 cts 9.4 cts

(13.8) (13.8)

Keppel Telecommunications & Transportation Ltd, Page 1 of 15

Notes to Group Profit and Loss Accounts (i)

Operating expenses comprise the following: Group

Purchase of goods and services Staff costs Share-based payment expenses Depreciation of fixed assets Other operating expenses

(ii)

2009 $’000

2008 $’000

+/(-) %

39,781 34,128 1,276 6,328 23,514

49,751 37,623 1,673 6,515 22,418

(20.0) (9.3) (23.7) (2.9) 4.9

105,027

117,980

(11.0)

Operating profit is arrived at after charging/(crediting) the following: Group 2009 $’000 Provision for/(write-back of) doubtful debts and bad debts recovered Provision for stock obsolescence Foreign exchange loss Profit on disposal of fixed assets

125 219 200 (10)

2008 $’000

(594) 224 55 (148)

+/(-) %

n.m. (2.2) 263.6 (93.2)

n.m. – not meaningful

(iii)

Taxation in 2009 included write-back of provision of taxation and deferred taxation of $286,000 (2008: $46,000) and $1,440,000 (2008: $269,000) respectively for prior years. Tax assets recognised under the Group Relief System was $875,000 (2008: $1,425,000). In the previous year, taxation had included share of deferred tax asset of $3,501,000 from unutilised tax losses of an associated company.

(iv)

Exceptional items consist of: Group 2009 $’000 Loss on disposal of subsidiaries, associated companies and other investments Loss on capital reduction of a subsidiary Impairment loss in value of investments and write-back of provision for equity advances Impairment of fixed assets (Provision for)/write-back of restructuring expenses Minority share of exceptional items

(v)

2008 $’000

(515) -

(124) (769)

(4,009) (700) (3,372) (8,596) 289

(2,693) 95 (3,491) 24

(8,307)

(3,467)

There was no extraordinary item during the year.

Keppel Telecommunications & Transportation Ltd, Page 2 of 15

1(b)(i) BALANCE SHEETS as at 31 December 2009 Group 2009 $’000

2008 $’000

Company 2009 2008 $’000 $’000

SHARE CAPITAL RESERVES SHARE CAPITAL AND RESERVES MINORITY INTERESTS

73,673 222,234 295,907 26,090

73,651 203,065 276,716 29,357

73,673 60,757 134,430 -

73,651 68,205 141,856 -

CAPITAL EMPLOYED

321,997

306,073

134,430

141,856

146,456

126,637

-

-

-

-

68,677

73,852

303,383 10,327 313,710

285,429 14,734 300,163

6,621 75,298

6,621 80,473

2,264 24,330

3,732 42,819

107

106

2,211

9,332

48,257

55,079

13,251 63,102 7,911 113,069

10,862 43,744 9,249 119,738

11,287 21 59,672

9,793 55 65,033

42,455

49,791

495

577

517

872

37

3,055

188 58,399 822

218 53,069 1,468

8

18

102,381

105,418

540

3,650

10,688

14,320

59,132

61,383

148,000 857 148,857

134,000 1,047 135,047

-

-

321,997

306,073

134,430

141,856

Represented by: FIXED ASSETS INVESTMENTS Subsidiaries Associated companies and jointly controlled entity Others

CURRENT ASSETS Stocks and work-in-progress Debtors Amounts owing by holding and related companies Amounts owing by associated companies Fixed deposits Bank balances and cash LESS: CURRENT LIABILITIES Creditors Amounts owing to holding and related companies Amounts owing to associated companies Short-term borrowings Taxation

NET CURRENT ASSETS NON-CURRENT LIABILITIES Long-term borrowings Deferred taxation

NET ASSETS

Keppel Telecommunications & Transportation Ltd, Page 3 of 15

1(b)(ii) GROUP'S BORROWINGS AND DEBT SECURITIES Amount repayable in one year or less, or on demand

As at 31 Dec 2009

As at 31 Dec 2008

Secured $'000

Unsecured $'000

Secured $'000

Unsecured $'000

-

58,399

-

53,069

Amount repayable after one year

As at 31 Dec 2009

As at 31 Dec 2008

Secured $'000

Unsecured $'000

Secured $'000

Unsecured $'000

-

148,000

-

134,000

Details of any collateral Not applicable

1(b)(iii) BALANCE SHEET ANALYSIS Group shareholders’ fund increased $19.2 million to $295.9 million at 31 December 2009. The increase was mainly attributable to retained profits for the year, partly offset by payment of dividend in respect of financial year 2008 and reduction in translation reserve. Group total assets of $573.2 million as at 31 December 2009 was $26.7 million higher than 31 December 2008. Fixed assets increased $19.8 million mainly due to capital expenditure for the fitting-out of data centre in Singapore. Investments in associated companies and jointly controlled entity increased $18.0 million due to equity accounting for share of profits and acquisition of a 40% stake in Indo-Trans Keppel Logistics Vietnam, partly offset by dividends received. Other investments decreased by $4.4 million to $10.3 million as a result of fair value adjustments. Current assets reduced $6.7 million to $113.1 million largely because of payments received from debtors and related companies, set-off partly by increased in fixed deposits. Group total liabilities increased $10.8 million to $251.2 million mainly due to higher borrowings set-off partly by reduction in creditors. Total borrowings increased $19.3 million to $206.4 million as at 31 December 2009 mainly due to loan obtained for the fit-out of the data centre.

Keppel Telecommunications & Transportation Ltd, Page 4 of 15

1(c)

CONSOLIDATED STATEMENT OF CASH FLOWS for the year ended 31 December 2009 2009 $’000

2008 $’000

8,309

10,888

CASH FLOWS FROM OPERATING ACTIVITIES Operating profit Adjustments for non-cash items: Depreciation of fixed assets Gain on disposal of fixed assets Share-based payment expense Gain on dilution of associated companies Translation of foreign companies

6,328 (10) 1,276 (38) (1,871)

Operating cash flows before changes in working capital

13,994

20,902

Working capital changes: Stocks Debtors Creditors

1,445 22,779 (8,472)

(1,388) (4,458) 7,365

Cash flows from operations Interest received Interest paid Income taxes paid Proceeds from tax losses transferred under group relief system Staff compensation and restructuring expenses

29,746 1,310 (3,066) (1,739) 602 (699)

22,421 2,140 (2,757) (307) 567 (108)

NET CASH FROM OPERATING ACTIVITIES

26,154

21,956

(585) (150) (230) (2,646) (29,759) 170 28,210

(138) (7,692) 27 542 8 (8,345) 749 28,422

NET CASH (USED IN)/FROM INVESTING ACTIVITIES

(4,990)

13,573

CASH FLOWS FROM FINANCING ACTIVITIES Net proceeds from share issues Proceeds from/(repayment of) short-term loans Proceeds from long-term loans Funds (to)/from associated companies Dividends paid to shareholders of the company Dividends paid to minority shareholders of subsidiaries

22 5,330 14,000 (1,311) (16,568) (4,617)

1,539 (16,429) 7,250 265 (33,109) (9,401)

NET CASH USED IN FINANCING ACTIVITIES

(3,144)

(49,885)

NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS Cash and cash equivalents as at 1 January

18,020 52,993

(14,356) 67,349

Cash and cash equivalents as at 31 December (Note B)

71,013

52,993

CASH FLOWS FROM INVESTING ACTIVITIES Disposal of a subsidiary (Note A) Acquisition of further shares in a subsidiary Purchase of other investment Investment in associated companies Capital distribution from an associated company Return of capital from other investments Proceeds from disposal of other investment Acquisition of fixed assets Proceeds from disposal of fixed assets Dividends received from investments

6,515 (148) 1,673 (362) 2,336

Keppel Telecommunications & Transportation Ltd, Page 5 of 15

Notes to Consolidated Statement of Cash Flows A. Disposal of Subsidiary During the financial year, the fair values of net assets and liabilities of subsidiary disposed were as follows: 2009 $’000 Fixed assets Stocks, debtors and creditors Bank balances and cash Exchange equalisation Minority interests

2008 $’000

(84) (444) (585) (772) 1,370 (515) 515 -

-

Add: Bank balances and cash disposed

585

-

Net cash outflow on disposal, net of cash disposed

585

-

Net loss on disposal Sale proceeds

B. Cash and Cash Equivalents Cash and cash equivalents consist of fixed deposits, bank balances and cash. Cash and cash equivalents in the consolidated cash flow statement comprise the following balance sheet amounts:

Fixed deposits Bank balances and cash

2009 $’000

2008 $’000

63,102 7,911

43,744 9,249

71,013

52,993

1(c)(i) Cash flow Analysis The Group’s net cash from operating activities for the year was $26.2 million compared to $22.0 million in 2008. While there were higher net interest and taxation expenses, the improvement was due mainly to higher cash flows from operations as a result of improved working capital changes. Net cash used in investing activities for the year was $5.0 million due mainly to cash used in acquisitions of fixed assets and fit-out for data centre as well as a stake in an associated company, partly offset by dividends received from associated companies. Net cash used in financing activities for the year was $3.1 million mainly due to payment of dividends to the shareholders of the company and minority shareholders of subsidiaries, which was partly offset by proceeds from term loans. In the previous year, net cash used was higher at $49.9 million owing to higher payment of dividends and repayment of term loans.

Keppel Telecommunications & Transportation Ltd, Page 6 of 15

1(d)

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME for the year ended 31 December 2009 2009 $’000

2008 $’000

Profit for the year

47,665

55,000

Net fair value changes on available-for-sale financial assets Fair value loss on available-for-sale financial assets realised and transferred to profit & loss account Exchange differences arising on consolidation Foreign currency translation reserve realised and transferred to profit & loss account Share of other comprehensive income of associated companies

(3,718)

(2,978)

3,887 (11,941)

2,557 10,186

1,539 439

289 (204)

Other comprehensive income for the year, net of tax

(9,794)

9,850

Total comprehensive income for the year

37,871

64,850

Attributable to: Shareholders of the Company Minority interests

34,889 2,982

60,610 4,240

37,871

64,850

1(e)(i) STATEMENTS OF CHANGES IN EQUITY for the year ended 31 December 2009

The Group Balance at 1 January 2009 Total comprehensive income for the year Issue of shares Cost of share-based payment Transfer from capital reserves to revenue reserves Transfer from revenue reserves to capital reserves Dividends paid to minority shareholders Acquisition of additional interest in a subsidiary Disposal of subsidiaries Dividend paid for 2008

Share Capital $’000

Capital Reserves $’000

73,651

9,375

22 -

608 848

-

(1,299)

Foreign Currency Translation Reserves $’000

Share Capital & Reserves $’000

Minority Interests $’000

Capital Employed $’000

196,653

(2,963) 276,716

29,357

306,073

44,608 -

(10,327) 34,889 22 - 1 848

2,982 -

37,871 22 848

Revenue Reserves $’000

1,299

-

594

-

-

-

-

Balance at 31 December 2009 73,673

10,126

225,398

72,112

8,094

1,539 -

(625) 1,187

Balance at 1 January 2008 Total comprehensive income for the year Issue of shares Cost of share-based payment Transfer from revenue reserves to capital reserves Disposal of subsidiary Dividend paid to minority shareholders Dividend paid for 2007

(594) -

-

-

-

-

-

-

-

-

-

-

(4,617)

(4,617)

(262) (1,370) -

(262) (1,370) (16,568)

(13,290) 295,907

26,090

321,997

178,456

(12,173) 246,489

34,498

280,987

52,025 -

9,210 60,610 1,539 - 1 1,187

4,240 -

64,850 1,539 1,187

20

20

(16,568)

-

-

719 -

(719) -

-

-

-

(33,109)

-

Balance at 31 December 2008 73,651

9,375

196,653

(16,568)

(33,109)

(2,963) 276,716

(9,401) -

(9,401) (33,109)

29,357

306,073

Keppel Telecommunications & Transportation Ltd, Page 7 of 15

Share Capital $’000

Capital Reserves $’000

Revenue Reserves $’000

Total $’000

The Company Balance at 1 January 2009 Profit (comprehensive income) for the year Issue of shares Cost of share-based payment Dividend paid for 2008

73,651 22 -

2,629 848 -

65,576 8,272 (16,568)

141,856 8,272 22 848 (16,568)

Balance at 31 December 2009

73,673

3,477

57,280

134,430

Balance at 1 January 2008 Profit (comprehensive income) for the year Issue of shares Cost of share-based payment Dividend paid for 2007

72,112 1,539 -

1,442 1,187 -

93,255 5,430 (33,109)

166,809 5,430 1,539 1,187 (33,109)

Balance at 31 December 2008

73,651

2,629

65,576

141,856

1(e)(ii) SHARE CAPITAL During the financial year, the Company issued 27,000 ordinary shares upon the exercise of share options granted under the Company’s Share Option Scheme. The share capital of the Company as at the end of the financial year was 552,277,537 (2008: 552,250,537) shares. At 31 December 2009, there were unexercised options for 2,806,000 (2008: 1,983,000) of unissued ordinary shares under the Company’s Share Option Scheme.

2.

AUDIT The financial statements have not been audited nor reviewed by our auditors.

3.

AUDITORS' REPORT Not applicable

4.

ACCOUNTING POLICIES The Group has applied the same accounting policies and methods of computation in the financial statements for the current financial year compared with those of the audited financial statements as at 31 December 2008, except as disclosed in paragraph 5 below.

5.

CHANGES IN ACCOUNTING POLICIES The Group has adopted all new and revised Financial Reporting Standards (FRS) and Interpretations of FRS (INT FRS) that are relevant to its operations and effective for annual periods beginning on or after 1 January 2009. The FRS that are relevant to the Group include FRS 1 Presentation of Financial Statements – Revised Presentation, Amendments to FRS 23 – Borrowing Costs, Amendments to FRS 107 Financial Instruments – Improving Disclosures about Financial Instruments and FRS 108 Operating Segments. The adoption of these new/revised FRS and INT FRS does not result in substantial change to the Group’s and Company’s accounting policies or have any significant impact on the financial statements.

Keppel Telecommunications & Transportation Ltd, Page 8 of 15

6.

EARNINGS PER ORDINARY SHARE

GROUP 2009

2008

+/(-)%

8.1

9.4

(13.8)

552,258

551,966

0.1

8.1

9.4

(13.8)

552,391

552,545

*

Earnings per ordinary share of the Group based on net profit attributable to shareholders:(i) Based on the weighted average number of shares (cents) - Weighted average number of shares (’000) (ii) On a fully diluted basis (cents) - Adjusted weighted average number of shares (’000)

* Denotes less than 0.1%

7.

NET ASSET VALUE GROUP

Net asset value per ordinary share based on issued share capital at the end of the financial year ($)

8.

COMPANY

2009

2008

+/(-)%

2009

2008

+/(-)%

0.54

0.50

8.0

0.24

0.26

(7.7)

REVIEW OF GROUP PERFORMANCE Group revenue decreased 12% in 2009 to $113.3 million due mainly to lower logistics revenue in Singapore and the winding down of the Network Engineering business. Nonetheless, revenue from logistics activities in China continued to show healthy improvements. The Group has further expanded its Data Centre business. Profit before tax and exceptional items was $65.3 million due to lower operating profit. However, share of contributions from associated companies improved 4% to $58.5 million. Group profit after tax was 13% lower at $47.7 million due to impairment in value of investments and provision for restructuring costs. In the opinion of the Directors, no factors have arisen between the end of the financial year and the date of this report which would materially affect the results of the Group and the Company for the year just ended.

Keppel Telecommunications & Transportation Ltd, Page 9 of 15

9.

VARIANCE FROM PROSPECTS STATEMENT No variance from previous statement.

10.

PROSPECTS Logistics operations are expected to benefit from the improved economic outlook. In Singapore, the Group will redevelop its logistics assets to maximise returns. The Group currently enjoys a strong position in Foshan and looks forward to expand its warehouse and distribution business in the region. In addition, it is looking to deepen its logistics operations in Vietnam. The Group’s data centre in Singapore has commenced operations and currently serves a number of blue-chip customers. Data centre in Ireland continues to enjoy full occupancy. Demand for data centres continues to hold up well. The Group continues to remain prudent in managing costs and improving operational efficiency, while seeking growth opportunities.

11.

DIVIDENDS (a)

Current Financial Period Reported On Any dividend recommended for the current financial period reported on? Yes Directors are pleased to recommend a first and final dividend of 3.0 cents per share tax exempt one-tier (2008: 3.0 cents per share tax exempt one-tier) in respect of the financial year ended 31 December 2009 for approval by shareholders at the next Annual General Meeting to be convened. Name of Dividend

Final

Dividend Type

Cash

Dividend per share (cents) Tax rate

(b)

3.0 Tax-exempt (one-tier)

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

Final

Dividend Type

Cash

Dividend per share (cents) Tax rate

3.0 Tax-exempt (one-tier)

Keppel Telecommunications & Transportation Ltd, Page 10 of 15

(c)

Date Payable The proposed first and final dividend if approved at the Annual General Meeting, tentatively scheduled to be held on 21 April 2010, will be paid on 7 May 2010.

(d)

Books Closure Date Notice is hereby given that the Share Transfer Books and Register of Members of the Company will be closed on 28 April 2010 for the preparation of dividend warrants. Duly completed transfers in respect of ordinary shares in the capital of the Company (“Shares”) received by the Company’s Registrar, Boardroom Corporate & Advisory Services Pte Ltd, at 3 Church Street #08-01 Samsung Hub, Singapore 049483 up to 5.00 p.m. on 27 April 2010 will be registered to determine members’ entitlement to the proposed first and final dividend. Members whose Securities Accounts with The Central Depository (Pte) Limited are credited with Shares at 5.00 p.m. on 27 April 2010 will be entitled to the proposed first and final dividend.

12.

SEGMENT ANALYSIS 2009 Business Segments

Logistics $’000

Data Centre & Networks $’000

Revenue External sales Inter-segment sales

92,003 3,780

21,327 209

Total

95,783

21,536

Segment results Operating profit/(loss) Interest income Interest expense Share of results of associated companies and jointly controlled entity Profit before tax and exceptional items Exceptional items Profit before taxation Taxation

12,964 1,270 (752)

694 85 (79)

Adjustments/ Eliminations $’000

Consolidated Total $’000

6 -

(3,989)

113,336 -

6

(3,989)

113,336

Investments $’000

(5,349) 75 (2,176)

8,309 1,430 (3,007)

10,462

10,195

37,866

58,523

23,944 (1,159) 22,785 (2,172)

10,895 (3,045) 7,850 (1,571)

30,416 (4,392) 26,024 (5,251)

65,255 (8,596) 56,659 (8,994)

Profit for the year

20,613

6,279

20,773

47,665

Attributable to: Shareholders of the Company Profit before exceptional items Exceptional items

19,047 (870)

8,677 (3,045)

25,191 (4,392)

52,915 (8,307)

Minority interests

18,177 2,436

5,632 647

20,799 (26)

44,608 3,057

20,613

6,279

20,773

47,665

Keppel Telecommunications & Transportation Ltd, Page 11 of 15

Other Information Segment assets Segment liabilities Net assets Investment in associated companies and jointly controlled entity Additions to non-current assets Depreciation Impairment losses

Logistics $’000

Data Centre & Networks $’000

Investments $’000

Adjustments/ Eliminations $’000

Consolidated Total $’000

265,042 (125,819)

126,946 (83,155)

305,583 (166,600)

(124,336) 124,336

573,235 (251,238)

139,223

43,791

138,983

56,874 7,654 5,660 400

75,308 24,749 381 -

171,201 232 287 4,392

-

321,997

303,383 32,635 6,328 4,792

Geographical Information

Singapore $’000

External sales Non-current assets

69,248 285,398

Far East and ASEAN other than Singapore $’000

Others $’000

37,384 122,923

6,704 51,845

Consolidated Total $’000

113,336 460,166

2008 Business Segments Logistics $’000

Data Centre & Networks $’000

Revenue External sales Inter-segment sales

101,014 6,978

27,355 1,833

Total

107,992

29,188

Segment results Operating profit/(loss) Interest income Interest expense Share of results of associated companies and jointly controlled entity Profit before tax and exceptional items Exceptional items Profit before taxation Taxation

11,405 1,387 (807)

358 350 (6)

Adjustments/ Eliminations $’000

Consolidated Total $’000

499 -

(8,811)

128,868 -

499

(8,811)

128,868

Investments $’000

(875) 211 (1,761)

10,888 1,948 (2,574)

8,275

7,758

40,194

56,227

20,260 (9) 20,251 (1,047)

8,460 (868) 7,592 2,106

37,769 (2,614) 35,155 (9,057)

66,489 (3,491) 62,998 (7,998)

Profit for the year

19,204

9,698

26,098

55,000

Attributable to: Shareholders of the Company Profit before exceptional items Exceptional items

16,752 6

9,946 (859)

28,794 (2,614)

55,492 (3,467)

Minority interests

16,758 2,446

9,087 611

26,180 (82)

52,025 2,975

19,204

9,698

26,098

55,000

Keppel Telecommunications & Transportation Ltd, Page 12 of 15

Other Information Segment assets Segment liabilities Net assets Investment in associated companies and jointly controlled entity Additions to non-current assets Depreciation Impairment losses

Logistics $’000

Data Centre & Networks $’000

Investments $’000

Adjustments/ Eliminations $’000

Consolidated Total $’000

265,066 (134,323)

96,814 (28,763)

273,699 (166,420)

(89,041) 89,041

546,538 (240,465)

130,743

68,051

107,279

50,365 12,459 5,689 -

71,308 277 537 -

163,756 3,439 289 2,733

-

306,073

285,429 16,175 6,515 2,733

Geographical Information

Singapore $’000

External sales Non-current assets

82,193 256,436

Far East and ASEAN other than Singapore $’000

Others $’000

37,456 121,262

9,219 49,102

Consolidated Total $’000

128,868 426,800

Notes: (a)

(b) (c)

13.

The Group is organised into business units based on their products and services, and has three reportable operating segments namely Logistics, Data Centre & Networks and Investments. The Logistics division provides warehousing, distribution, container storage and freight forwarding services. The Data Centre & Networks division provides data centre facilities and co-location services, in-building network designs, network optimisation and geographical information system. The Investments division is the investment holding arm of the other telecommunications entities within the Group. Pricing of inter-segment sales is at fair market value. Segment assets and liabilities are those used in the operation of each segment.

REVIEW OF SEGMENT PERFORMANCE Logistics Division revenue declined 11% to $95.8 million compared to the previous year mainly due to lower warehousing and container handling services. Profit before tax and exceptional items of the Division improved 18% due to higher profits from Singapore, Foshan and Wuhu Annto Logistics. Profit after tax increased 7% to $20.6 million compared to $19.2 million in 2008. Data Centre & Networks Division revenue fell 26% to $21.5 million due mainly to the winding down of Network Engineering business, as the Division focused its efforts on Data Centre business. Attributed by the higher contribution from data centre in Ireland, the Division’s profit before tax and exceptional items improved by 29% to $10.9 million. Investments Division’s profit before tax and exceptional items decreased 19% to $30.4 million largely due to lower operating profit in the absence of sundry income and lower contributions from associated companies, MobileOne and CGS Inc. Profit after tax for the Division was lower at $20.8 million as a result of impairment in value of investments.

Keppel Telecommunications & Transportation Ltd, Page 13 of 15

14.

BREAKDOWN OF SALES

2009 $'000

GROUP 2008 $'000

Sales reported for first half year

59,047

61,818

(4.5)

Operating profit after tax and exceptional items before deducting minority interests reported for first half year

21,507

22,327

(3.7)

Sales reported for second half year

54,289

67,050

(19.0)

Operating profit after tax and exceptional items before deducting minority interests reported for second half year

26,158

32,673

(19.9)

+/(-) %

First Half

Second Half

15.

INTERESTED PERSON TRANSACTIONS

Name of Interested Person

Aggregate value of all interested person transactions during the financial year under review (excluding transactions less than $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 of the SGX Listing Manual

2009 $'000

2008 $'000

2009 $'000

-

-

12,076

1,681

-

-

2,417

5,255

Treasury Transactions Keppel Corporation Limited

-

-

46,640

24,875

Management Services Keppel Corporation Limited

-

-

500

500

-

-

61,633

32,311

General Transactions Keppel Corporation Limited Singapore Telecommunications Limited

2008 $’000

Keppel Telecommunications & Transportation Ltd, Page 14 of 15

16.

TOTAL ANNUAL DIVIDEND Total Annual Dividend amounted to:

Ordinary Preference Total

2009 $’000

2008 $’000

16,568

16,568

-

-

16,568

16,568

BY ORDER OF THE BOARD

CAROLINE CHANG/LAURA LOW Company Secretaries 20 January 2010

Keppel Telecommunications & Transportation Ltd, Page 15 of 15