Yr End Results 31-8-95 - Final - Singapore Press Holdings

1(a)
SINGAPORE PRESS HOLDINGS LIMITED
Reg. No. 198402868E
(Incorporated in Singapore)
ANNOUNCEMENT
AUDITED RESULTS FOR THE YEAR - AUGUST 31, 2006
An income statement (for the group) together with a comparative statement for
the corresponding period of the immediately preceding financial year
(i) Results for the year ended August 31, 2006
Group
2006 2005
Restated * Change
S$’000 S$’000 %
Operating revenue
Newspaper and Magazine 906,986 891,783 1.7
Property 98,704 89,445 10.4
Others 15,670 26,284 (40.4)
1,021,360 1,007,512 1.4
Other operating income 9,991 8,713 14.7
1,031,351 1,016,225 1.5
Materials, consumables &
broadcasting costs (168,769) (181,647) (7.1)
Staff costs (268,009) (268,200) (0.1)
Depreciation (49,065) (50,300) (2.5)
Other operating expenses (163,809) (141,665) 15.6
Finance costs (20,613) (22,526) (8.5)
Profit before investment income and exceptional items # 361,086 351,887 2.6
Net income from investments 81,675 248,609 (67.1)
Share of net losses of associates
and jointly controlled entity (185) (3,590) (94.8)
Profit before exceptional items 442,576 596,906 (25.9)
Exceptional items 66,844 (38,542) NM
Profit before taxation 509,420 558,364 (8.8)
Taxation (81,076) (69,975) 15.9
Profit after taxation 428,344 488,389 (12.3)
Attributable to:
Shareholders of the Company 428,460 488,320 (12.3)
Minority interests (116) 69 NM
428,344 488,389 (12.3)
* The income statement, balance sheet, cash flow statement and segmental information for comparative period have been
restated to take into account the retrospective adjustments relating to FRS 102 – Share-based Payment for share options
granted to employees. Please see paragraph 5 for details.
# This represents the earnings of the media and property businesses on a recurring basis.
NM: Not meaningful
1

(ii)
Notes:
Profit before taxation is arrived at after accounting for:
Group
2006 2005
Restated * Change
S$’000 S$’000 %
Share-based payment expenses (7,371) (6,374) 15.6
Net foreign exchange loss from operations (1,978) (2,231) (11.3)
(Allowance)/Write-back of allowance for bad &
doubtful debts and bad debts written off
(net of bad debts recovery) (1,270) 3,530 NM
Allowance for stocks obsolescence (net of
write-back of allowance) (218) (311) (29.9)
Profit on sale of internally-managed
investments 20,132 175,869** (88.6)
Profit on sale of externally-managed
investments - # 23,334 (100.0)
Fair value (loss)/gain of
- Internally-managed assets at fair value
through profit and loss (138) - NM
- Externally-managed assets at fair value
through profit and loss 10,010 # - NM
- Derivative instruments 4,588 - NM
** Included net gain of S$128.5 million on disposal of a substantial portion of Group’s interest in StarHub
Limited.
#
With the adoption of FRS 39, these investments are now re-measured at fair value and the loss on remeasurement
is taken to the income statement.
2

1(b)(i) A balance sheet (for the issuer and group), together with a comparative
statement as at the end of the immediately preceding financial year
Balance Sheets As At
Group
Company
Aug 31, Aug 31, Aug 31, Aug 31,
2006 2005 2006 2005
Restated
Restated
S$'000 S$'000 S$'000 S$'000
CAPITAL EMPLOYED
Share capital 432,807^ 318,082 432,807^ 318,082
Share premium -^ 89,206 -^ 89,206
Treasury shares (12,018) - (12,018) -
Reserves 332,424 15,678 51,012 13,451
Retained profit 1,293,182 1,198,237 653,656 768,530
Shareholders’ interests 2,046,395 1,621,203 1,125,457 1,189,269
Minority interests 2,342 2,271 - -
Total equity 2,048,737 1,623,474 1,125,457 1,189,269
EMPLOYMENT OF CAPITAL
Non-current assets
Property, plant and equipment 501,891 530,358 299,578 318,543
Investment property 1,130,890 1,059,000 - -
Interests in subsidiaries - - 386,812 386,812
Interests in associates 69,729 28,075 - 29,160 29,160
Long-term investments 403,466 121,005 39,273 3,362
Derivative financial instruments 9,855 - - -
Intangible assets 11,554 11,029 - -
Amount owing by subsidiaries - - 771,291 804,379
Amount owing by associates 6,051 6,029 6,020 6,012
Amount owing by jointly controlled entity - 33 - -
Other non-current assets 5,177 4,691 5,029 4,616
2,138,613 1,760,220 1,537,163 1,552,884
Current assets
Stocks 34,579 30,870 33,935 30,591
Trade debtors 100,342 92,660 85,687 80,361
Other debtors and prepayments 11,093 21,528 4,221 7,014
Short-term investments 671,196 653,590 - -
Derivative financial instruments 2,339 - - -
Cash held as fixed deposits 55,297 45,373 16,047 25,360
Cash and bank balances 26,090 24,819 15,545 16,424
900,936 868,840 155,435 159,750
Total assets 3,039,549 2,629,060 1,692,598 1,712,634
Current liabilities
Trade creditors 82,756 74,443 42,891 43,053
Other creditors and accrued liabilities 119,633 125,067 99,222 103,297
Borrowings 667 - - -
Current taxation 104,932 88,298 69,292 55,544
307,988 287,808 211,405 201,894
Non-current liabilities
Deferred taxation 72,046 67,777 52,454 55,895
Borrowings 610,778 650,000 - -
Amount owing to subsidiaries - - 303,282 265,576
Amount owing to an associate - 1 - -
682,824 717,778 355,736 321,471
Total liabilities 990,812 1,005,586 567,141 523,365
Net assets 2,048,737 1,623,474 1,125,457 1,189,269
^
Following the amendments to the Companies Act (“The Companies (Amendment) Act 2005”) on 30 January 2006, any amounts standing to the credit of
the Company’s share premium account and capital redemption reserve account shall become part of the Company’s share capital. Accordingly, the share
premium account and capital redemption reserve account have been combined into the share capital account.
3

1(b)(ii)Aggregate amount of group’s borrowings and debt securities
Group Borrowings
Amount repayable in one year
As at August 31, 2006 As at August 31, 2005
Secured
S$’000
Unsecured
S$’000
Secured
S$’000
Unsecured
S$’000
667 - - -
Amount repayable after one year
As at August 31, 2006 As at August 31, 2005
Secured
S$’000
Unsecured
S$’000
Secured
S$’000
Unsecured
S$’000
610,778 - 650,000 -
Details of collateral
The secured bank loan facilities as at August 31, 2006 comprised the following:
(a)
Term loan facilities of S$650 million (August 31, 2005: S$650 million)
undertaken by a subsidiary, Times Properties Private Limited (“Times
Properties”), which commenced on July 11, 2005, with a tenure of one year.
During the financial year, Times Properties had repaid S$40 million prior to the
maturity of the term loan on July 11, 2006.
The term loan undertaken by Times Properties was refinanced by another
subsidiary, Orchard 290 Ltd upon maturity on July 11, 2006. The new term
loan, which commenced on July 11, 2006, has a tenure of five years and was
classified accordingly as a non-current liability. No partial repayment was made
for the new term loan during the financial year.
The term loan is secured by way of a legal mortgage on the Group’s investment
property, a debenture over the assets of Orchard 290 Ltd, an assignment of
rental proceeds from the investment property and the insurances on the
investment property.
(b) Term loan facilities of S$2 million undertaken by another subsidiary, SPH
MediaBoxOffice Pte Ltd (“SPHMBO”), which commenced on September 20,
2005, with a tenure of three years and a fixed repayment schedule. The term
loan, drawn down on October 31, 2005, is secured by way of fixed charge on
certain assets (“Secured Assets”) of SPHMBO, an assignment of all rights and
benefits arising from all advertising/leasing contracts in relation to the Secured
Assets and insurances on the Secured Assets.
SPHMBO had repaid S$555,000 up to August 31, 2006.
4

1(c)
A cash flow statement (for the group), together with a comparative statement for the
corresponding period of the immediately preceding financial year
Consolidated Cash Flow Statement for the Year ended August 31
2006 2005
S$'000 S$'000
Cash Flows from Operating Activities
Profit before taxation 509,420 558,364
Adjustments for :
Amortisation of intangible assets 575 552
Depreciation 49,065 50,300
Development expenditure written off 387 -
Profit on disposal of property, plant and equipment (429) (86)
Finance costs 20,613 22,526
Net income from investments (81,675) (248,609)
Share of net losses of associates and
jointly controlled entity 185 3,590
Exceptional items (66,844) 38,542
Gain on disposal of subsidiary - (2)
Share-based payment expenses 7,371 6,374
Other non-cash items (165) -
Operating cash flow before working capital changes 438,503 431,551
Changes in working capital :
Stocks (3,709) (6,092)
Prepaid content rights - (2,209)
Debtors 5,018 (10,559)
Creditors (3,204) (26,689)
436,608 386,002
Income tax paid (72,539) (67,884)
Dividends paid (363,186) (381,270)
Dividends paid (net) by a subsidiary to a minority shareholder (30) -
853 (63,152)
(Increase)/decrease in other assets (486) 360
Exchange translation difference (221) 250
Net cash from/(used in) operating activities 146 (62,542)
5

Consolidated Cash Flow Statement for the Year ended August 31 (cont’d)
2006 2005
S$'000 S$'000
Cash Flows from Investing Activities
Purchase of property, plant and equipment (18,273) (15,677)
Proceeds on disposal of property, plant and equipment 698 12,280
Additions to investment property (1,743) (13,148)
Acquisition of intangible assets – magazine title (1,100) -
Acquisition of business by a subsidiary (net of cash acquired) (387) -
Acquisition of interests in subsidiaries (net of cash acquired) 97 (23,748)
Acquisition of interests in associates/jointly controlled entity (42,696) (33,342)
Net proceeds from divestment of interests
in subsidiaries and an associate - 5,837
Amounts owing by associates (23) (47)
Amounts owing by a jointly controlled entity (93) (33)
Loan to an associate - (6,000)
Loan to a minority shareholder (1,369) -
Purchase of long-term investments (5,064) (2,870)
Proceeds on disposal/redemption of long-term investments 16,055 198,325
Purchase of short-term investments (433,170) (264,303)
Proceeds on disposal of short-term investments 354,810 182,907
Net decrease/(increase) in funds under management 133,183 (69,922)
Investment income 81,675 252,163
82,600 222,422
Add/(Less): Items not involving movement of funds
Changes in fair value of financial instruments (4,450) -
Impairment of internally-managed investments 4,220 -
Profit on sale of internally-managed investments (20,132) (175,869)
Exchange translation loss 1,090 -
Allowance for diminution in value of
internally-managed investments - 1,557
Accretion of discount on bonds - (2)
Amortisation of premium on bonds - 89
Effective interest on bonds (623) -
Net cash from investing activities 62,705 48,197
Cash Flows from Financing Activities
Proceeds from bank loans 2,000 22,500
Repayment of bank loans (40,555) (136,500)
Finance costs (20,613) (22,526)
Proceeds on issue of shares by the Company 19,530 28,442
Share buy-back (12,018) -
Net cash used in financing activities (51,656) (108,084)
Net increase/(decrease) in cash and cash equivalents 11,195 (122,429)
Cash and cash equivalents at beginning of year 70,192 192,621
Cash and cash equivalents at end of year 81,387 70,192
6

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 Total Equity for the Year ended August 31
(a) Group
______________________________ _
Capital Share-based Fair Exchange
Share Share Redemption Treasury Capital Compensation Hedging Value Translation Retained Minority Total
Capital^ Premium^ Reserve^ Shares Reserve Reserve Reserve Reserve Reserve Profit Interests Equity
S$’000 S$’000 S$’000 S$’000 S$’000 S$’000 S$’000 S$’000 S$’000 S$’000 S$’000 S$’000
Balance as at
September 1, 2005 318,082 89,206 4,509 - 2,005 - - - 222 1,207,179 2,271 1,623,474
Effect of adopting FRS 102 - - - - - 8,942 - - - (8,942) - -
__________ _________ _______ ________ _______ ________ ________ __________ _____ ____________ _______ ____________
As restated 318,082 89,206 4,509 - 2,005 8,942 - - 222 1,198,237 2,271 1,623,474
Effect of adopting FRS 39 - - - - - - (4,305) 309,345 - 29,662 - 334,702
__________ _________ _______ ________ _______ ________ ________ __________ _____ ____________ _______ ____________
318,082 89,206 4,509 - 2,005 8,942 (4,305) 309,345 222 1,227,899 2,271 1,958,176
Net fair value changes on
available-for-sale financial assets - - - - - - - (1,210) - - - (1,210)
Net fair value changes on
cash flow hedges - - - - - - 11,845 - - - - 11,845
Exchange translation difference - - - - - - - - (302) - - (302)
Net gains/(losses) recognised
directly in equity - - - - - - 11,845 (1,210) (302) - - 10,333
Profit for the financial year - - - - - - - - - 428,460 (116) 428,344
__________ _________ _______ ________ _______ ________ ________ __________ _____ ____________ _______ ____________
Total recognised gains/(losses) - - - - - - 11,845 (1,210) (302) 428,460 (116) 438,677
Share-based payment expenses - - - - - 7,371 - - - - - 7,371
Issue of shares from September 1,
2005 to January 30, 2006 529 9,769 - - - (539) - - - - - 9,759
Issue of shares from January 31,
2006 to August 31, 2006 10,712 - - - - (941) - - - - - 9,771
Transfer to/(from) 103,484 (98,975) (4,509) - - - - - - - - -
Dividends - - - - - - - - - (363,186) (30) (363,216)
Lapse of share options - - - - - (9) - - - 9 - -
Share buyback - held as
treasury shares - - - (12,018) - - - - - - - (12,018)
Purchase of additional equity
interests in subsidiaries - - - - - - - - - - (165) (165)
Acquisition of subsidiaries - - - - - - - - - - 382 382
__________ _________ _______ ________ _______ ________ ________ __________ _____ ____________ _______ ____________
Balance as at August 31, 2006 432,807 - - (12,018) 2,005 14,824 7,540 308,135 (80) 1,293,182 2,342 2,048,737
__________ _________ _______ ________ _______ ________ ________ __________ _____ ____________ _______ ____________
^ Following the amendments to the Companies Act (“The Companies (Amendment) Act 2005”) on 30 January 2006, any amounts standing to the credit of the Company’s share premium account and capital redemption
reserve account shall become part of the Company’s share capital. Accordingly, the share premium account and capital redemption reserve account have been combined into the share capital account.
7

Statements of Changes in Total Equity for the Year ended August 31 (cont’d)
(a)
Group
______________________
Capital Share-based Exchange
Share Share Redemption Capital Compensation Translation Retained Minority Total
Capital Premium Reserve Reserve Reserve Reserve Profit Interests Equity
S$’000 S$’000 S$’000 S$’000 S’$000 S’$000 S’$000 S$’000 S$’000
Balance as at September 1, 2004 316,527 62,319 4,509 2,005 - 4 1,093,755 518 1,479,637
Effects of adopting FRS 102 - - - - 2,568 - (2,568) - -
__________ _________ ________ ________ _________ ___________ ______________ __________ ______________
As restated 316,527 62,319 4,509 2,005 2,568 4 1,091,187 518 1,479,637
Exchange translation difference - - - - - 218 - - 218
Gain recognised directly in equity - - - - - 218 - - 218
Profit for the financial year - - - - - - 488,320 69 488,389
__________ _________ ________ ________ _________ ___________ ______________ __________ ______________
Total recognised gains - - - - - 218 488,320 69 488,607
Share-based payment expenses - - - - 6,374 - - - 6,374
Issue of shares 1,555 - - - - - - - 1,555
Premium on issue of shares - 26,887 - - - - - - 26,887
Dividends - - - - - - (381,270) - (381,270)
Acquisition of subsidiaries - - - - - - - 1,684 1,684
__________ _________ ________ ________ _________ ___________ ______________ ____________ ______________
Balance as at August 31, 2005 318,082 89,206 4,509 2,005 8,942 222 1,198,237 2,271 1,623,474
__________ _________ ________ ________ _________ ___________ ______________ ____________ ______________
8

Statements of Changes in Total Equity for the Year ended August 31 (cont’d)
(b)
Company
_________
Capital Share-based Fair
Share Share Redemption Treasury Compensation Value Retained Total
Capital^ Premium^ Reserve^ Shares Reserve Reserve Profit Equity
S$’000 S$’000 S$’000 S$’000 S$’000 S$’000 S$’000 S$’000
Balance as at September 1, 2005 318,082 89,206 4,509 - - - 777,472 1,189,269
Effect of adopting FRS 102 - - - - 8,942 - (8,942) -
_________ ________ ________ _________ _________ _________ ___________ ___________
As restated 318,082 89,206 4,509 - 8,942 - 768,530 1,189,269
Effect of adopting FRS 39 - - - - - 29,138 99 29,237
_________ ________ ________ _________ _________ _________ ___________ ___________
318,082 89,206 4,509 - 8,942 29,138 768,629 1,218,506
____
Net fair value changes on availablefor-sale
financial assets - - - - - 7,050 - 7,050
Gain recognised directly in equity - - - - - 7,050 - 7,050
Profit for the financial year - - - - - - 248,204 248,204
_________ ________ ________ _________ _________ _________ ___________ ___________
Total recognised gains - - - - - 7,050 248,204 255,254
Share-based payment expenses - - - - 7,371 - - 7,371
Issue of shares from September 1,
2005 to January 30, 2006 529 9,769 - - (539) - - 9,759
Issue of shares from January 31,
2006 to August 31, 2006 10,712 - - - (941) - - 9,771
Transfer to/(from) 103,484 (98,975) (4,509) - - - - -
Dividends - - - - - - (363,186) (363,186)
Lapse of share options - - - - (9) - 9 -
Share buy-back – held as treasury
shares - - - (12,018) - - - (12,018)
_________ ________ ________ _________ _________ _________ ___________ ___________
Balance as at August 31, 2006 432,807 - - (12,018) 14,824 36,188 653,656 1,125,457
_________ ________ ________ _________ _________ _________ ___________ ___________
^
Following the amendments to the Companies Act (“The Companies (Amendment) Act 2005”) on 30 January 2006, any amounts standing to the credit of the Company’s share
premium account and capital redemption reserve account shall become part of the Company’s share capital. Accordingly, the share premium account and capital redemption
reserve account have been combined into the share capital account.
9

Statements of Changes in Total Equity for the Year ended August 31 (cont’d)
(b)
Company
_________
Capital Share-based
Share Share Redemption Compensation Retained Total
Capital Premium Reserve Reserve Profit Equity
S$’000 S$’000 S$’000 S$’000 S$’000 S$’000
Balance as at September 1, 2004 316,527 62,319 4,509 - 883,559 1,266,914
Effects of adopting FRS 102 - - - 2,568 (2,568) -
_________ ________ ________ _________ ___________ ___________
As restated 316,527 62,319 4,509 2,568 880,991 1,266,914
Profit for the financial year - - - - 268,809 268,809
Share-based payment expenses - - - 6,374 - 6,374
Issue of shares 1,555 - - - - 1,555
Premium on issue of shares - 26,887 - - - 26,887
Dividends - - - - (381,270) (381,270)
_________ ________ ________ _________ ___________ ___________
Balance as at August 31, 2005 318,082 89,206 4,509 8,942 768,530 1,189,269
_________
________ ________ _________ ___________ ___________
10

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 and as at the end of the corresponding
period of the immediately preceding financial year
Share Capital And Share Options
(a)
(b)
Between June 1, 2006 and August 31, 2006, pursuant to the Singapore Press
Holdings Group (1999) Share Option Scheme (the “1999 Scheme”), the Company
issued 214,425 ordinary shares upon the exercise of options.
As a result of the 214,425 ordinary shares issued pursuant to the 1999 Scheme, the
Company issued 2,165 management shares in accordance with the Newspaper and
Printing Presses Act, Cap. 206 between June 1, 2006 and August 31, 2006.
(c) There was no grant of share options to subscribe for ordinary shares under the 1999
Scheme during the current final quarter.
(d)
Under the 1999 Scheme, options to subscribe for 71,132,300 ordinary shares
remain outstanding as at August 31, 2006 compared to 60,914,450 ordinary shares
as at August 31, 2005.
(e) As at August 31, 2006, the share capital of the Company comprised 1,576,525,021
ordinary shares, 16,148,408 management shares and 3,001,000 treasury shares
(May 31, 2006: 1,577,521,596 ordinary shares, 16,146,243 management shares
and 1,790,000 treasury shares).
Share Buy Back
Under the Share Buy Back Mandate (first approved by the Shareholders on July 16,
1999 and last renewed at the Annual General Meeting on December 2, 2005), the
Company bought back 1,211,000 ordinary shares during the current final quarter.
These shares are held as treasury shares. The amount paid, including brokerage
fees, totalled S$4.7 million and was deducted against shareholders’ equity.
2. Whether the figures have been audited, or reviewed and in accordance with
which auditing standard or practice
Audit
The figures for the year have been audited by our auditors. The auditors’ report on
the financial statements of the Group was not subject to any qualification.
11

3. Where the figures have been audited or reviewed, the auditors’ report
(including any qualifications or emphasis of matter)
Auditors’ Report
We have audited the balance sheet of Singapore Press Holdings Limited and the
consolidated financial statements of the Group for the financial year ended August
31, 2006. These financial statements are the responsibility of the Company’s
directors. Our responsibility is to express an opinion on these financial statements
based on our audit.
We conducted our audit in accordance with Singapore Standards on Auditing.
Those Standards require that we plan and perform our audit to obtain reasonable
assurance whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by the directors, as well
as evaluating the overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.
In our opinion,
(a) the accompanying balance sheet of the Company and the consolidated financial
statements of the Group are properly drawn up in accordance with the
provisions of the Singapore Companies Act, Cap 50 (“the Act”) and Singapore
Financial Reporting Standards so as to give a true and fair view of the state of
affairs of the Company and of the Group as at August 31, 2006 and the results,
changes in equity and cash flows of the Group for the financial year ended on
that date; and
(b) the accounting and other records required by the Act to be kept by the Company
and by those subsidiaries incorporated in Singapore of which we are the
auditors have been properly kept in accordance with the provisions of the Act.
12

4. Whether the same accounting policies and methods of computation as in the
issuer’s most recently audited annual financial statements have been applied
Accounting Policies
The financial statements have been prepared in compliance with the same
accounting policies and methods of computation adopted in the audited financial
statements of last financial year, except where new/revised accounting standards
became effective from this financial year.
Apart from FRS 39 – Financial Instruments: Recognition and Measurement and FRS
102 – Share-based Payments, the adoption of the new and revised FRS does not
have any significant financial impact on the Group. The financial effects of adopting
FRS 39 and 102 are summarised in paragraph 5 below.
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 effect of, the change
FRS 39
Prior to the adoption of FRS 39, long-term investments in equity securities are
stated at cost less diminution in value. Long-term investments in bonds are stated
at cost, adjusted for amortisation of premium and accretion of discount and
diminution in value. Short-term investments are stated at the lower of cost and
realisable value on an individual basis. The fair values of the forward foreign
exchange contracts and interest rate swaps were not recognised in the financial
statements.
With the adoption of FRS 39, long-term and short-term investments are now
measured at fair values with gains or losses recognised either in the income
statement or the reserves. The fair values of the forward foreign exchange contracts
are now recognised in the income statement while those of the interest rate swaps
designated and qualify as cash flow hedges are recognised in the reserves. In
accordance with the requirements under the standard, the comparative figures for
the financial year ended August 31, 2005 are not restated. Instead, the effect of
adopting FRS 39 has been adjusted one-off to the opening reserves as at
September 1, 2005.
13

The transitional impact on the Group’s opening reserves and balance sheet items on
adopting FRS 39 on September 1, 2005 is illustrated in the table below:
S$ million
Increase/(decrease) in:
Retained profit 29.7
Fair value reserve 309.3
Hedging reserve (4.3)
334.7
Long-term investments 286.0
Short-term investments 68.7
Derivative financial instruments (current assets) 0.6
Less:
Derivative financial instruments (current liabilities) 7.2
Deferred taxation 13.4
334.7
FRS 102
Under FRS 102, share options to employees are measured at fair value at the date
of grant and recognised as expense over the vesting period. The standard applies to
share options granted to employees after November 22, 2002 and not vested by
January 1, 2005. Prior to the adoption of FRS 102, the granting of share options to
employees did not result in any expense to the income statement.
The application of FRS 102 is retrospective and accordingly, the comparative
financial statements are restated and the financial impact on the Group is as follows:
(Decreased)/increased by
S$’000
FY 2006
Profit for the year (7,371)
Retained profit as at September 1, 2005 (8,942)
Shared-based compensation reserve as at September 1, 2005 8,942
FY 2005
Profit for the year (6,374)
Retained profit as at September 1, 2004 (2,568)
Shared-based compensation reserve as at September 1, 2004 2,568
2006 2005
Decrease in basic EPS after exceptional items (S$) 0.005 0.004
Decrease in diluted EPS after exceptional items (S$) 0.005 0.004
14

6. Earnings per share of the group for the current period reported on and the
corresponding period of the immediately preceding financial year, after
deducting any provision for preference dividends
Earnings Per Share for the Year ended August 31
Group
2006 2005
Restated
(a) Based on the weighted average
number of shares on issue (S$)
- before exceptional items
- after exceptional items
0.23 0.33
0.27 0.31
(b) On fully diluted basis (S$)
- before exceptional items
- after exceptional items
0.23 0.33
0.27 0.31
7. Net asset value (for the issuer and group) per share based on issued share
capital of the issuer at the end of the (a) current period reported on and (b)
immediately preceding financial year
Net Asset Value Per Share As At
Group
Company
Aug 31,
2006
Aug 31,
2005
Aug 31,
2006
Aug 31,
2005
Restated
Restated
Net asset value per share
based on issued share
capital at the end of year
(S$)
1.28 1.02 0.71 0.75
15

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 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 any material factors that
affected the cash flow, working capital, assets or liabilities of the group during
the current financial period reported on
Business Segments/ Review of Results
Business Segments
The Group is organised into three major operating segments, namely Newspaper
and Magazine, Treasury and Investment and Property. The Newspaper and
Magazine segment is involved in the publishing, printing and distributing of
newspapers and magazines. The Treasury and Investment segment manages the
investment activities of the Group. The Property segment holds and manages
properties owned by the Group. Other operations under the Group, which are
currently not significant to be reported separately, are included under “Others”.
These comprise our businesses and investments in Internet, outdoor advertising,
radio broadcasting and TV broadcasting.
Review of Results
8.1 Group operating revenue grew 1.4% against last year to S$1,021.4 million.
Excluding the revenue generated by SPH MediaWorks and Streats prior to their
cessation on January 1, 2005, Group operating revenue would have increased by
S$40.1 million or 4.1% year-on-year.
Revenue for the Newspaper and Magazine segment rose by 1.7%, mainly driven by
the 1.8% increase in print advertisement revenue to S$676.3 million and 2.0%
growth in circulation revenue (after absorption of S$10.1 million in GST) to S$208.9
million. Property segment posted 10.4% increase in revenue over last year to
S$98.7 million amidst improving sentiments in the property market. The Group’s
operating revenue from other segments registered a 40.4% decline, due to the loss
of revenue contribution from the defunct TV broadcasting arm cushioned by higher
Internet revenue and contribution from the outdoor advertising arm.
higher consumption
8.2 Materials, consumables and broadcasting costs were lower by S$12.9 million
(7.1%). The decrease is mainly attributable to cost savings from the cessation of TV
broadcasting operations last year, partially offset by 9.2% increase in newsprint
costs arising from higher newsprint prices and consumption.
Staff costs were down by S$0.2 million to S$268.0 million mainly due to savings
arising from the cessation of TV broadcasting operations offset by annual salary
increment and increase in headcount to support the launch of new editorial products
and ventures into outdoor advertising and other media businesses.
Other operating expenses were up S$22.1 million comprising mainly higher
operating costs associated with the ventures into outdoor advertising and other
media businesses, higher premises cost incurred by The Paragon in line with
increased level of activities, and staff outplacement benefits paid. Last year also
16

included a credit of S$4.9 million of costs capitalised to broadcasting inventory,
which did not recur this year.
8.3 Consequently, profit before investment income and exceptional items at S$361.1
million was 2.6% higher than last year.
8.4 Group investment income at S$81.7 million was S$166.9 million lower than last
year. Excluding the one-time gain of S$128.5 million from the disposal of the
Group’s substantial stake in StarHub Limited and S$12.8 million income arising from
a capital reduction exercise undertaken by an investee company last year, the
balance variance was mainly attributable to lower contribution from externallymanaged
investments and lower profit on sale of internally-managed investments
partially offset by higher dividend income received.
8.5 The Group’s share of losses of associates and jointly controlled entity comprised
mainly losses from MediaCorp TV Holdings (S$2.1 million) and Traffic Corner
Publishing (S$1.2 million) offset by profits from MediaCorp Press Ltd (S$2.8 million)
and TOM Outdoor Media Group Ltd (S$0.5 million).
8.6 The exceptional gain of S$66.8 million mainly arose from the write-back of
impairment losses for The Paragon (S$70.5 million) in view of its strong sustained
valuation. This was partially offset by impairment charges pertaining to the Group’s
investment in the outdoor advertising and magazine businesses.
The exceptional loss of S$38.5 million last year comprised mainly charges
associated with the media merger (S$25.9 million) and impairment of goodwill that
arose from the acquisition of new magazine business (S$12.9 million).
8.7 Taxation charge of S$81.1 million was arrived at after accounting for tax on the
taxable income at the corporate tax rate of 20%. During the year, adjustments were
made for prior year’s overprovision in taxation of S$2.3 million. Last year’s taxation
charge took into account group relief of S$17.2 million from utilisation of SPH
MediaWorks Ltd’s tax losses and capital allowances.
9. Where a forecast, or a prospect statement, has been previously disclosed to
shareholders, any variance between it and the actual results
No forecast was made previously.
17

10. A commentary at the date of 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
10.1 The macroeconomic outlook for Singapore is expected to remain positive with
external demand providing bulk of the impetus. However, domestic demand growth,
which has more direct impact on the Group’s print advertisement revenue, may be
more measured. Against this backdrop, the Group’s print advertisement revenue is
expected to remain stable in the near term. Despite a declining trend in global
newspaper circulation sales, the Group continues to sustain its level of circulation
sales.
10.2 Newsprint prices are expected to rise at a moderating pace due to continued
imbalances in demand and supply. The Group has and will continue to put in place
cost saving measures to manage a sustained level of margin for its core newspaper
business.
10.3 The Paragon is likely to continue returning healthy rental yields amidst the positive
sentiments in the property market. Riding on the wave of sustained recovery in the
high-end property market, the Group recently announced its plan to develop an
exclusive freehold condominium along Thomson Road, which is expected to be
launched in 2007.
10.4 Excluding non-recurring gains, the Group’s investment income is expected to vary
with the performance of the local and global financial markets.
10.5 Overall, the Directors expect the recurring earnings for the current financial year to
be satisfactory.
11. Dividends
18

(a) Current Financial Period Reported On
Any dividend recommended for the current financial period reported on? Yes
Name of Dividend Final Dividend Special Dividend
Dividend Type Cash Cash
Dividend Rate 8 cents per share 9 cents per share
Tax rate Tax exempt (One-tier) Tax exempt (One-tier)
(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 Final Dividend Special Dividend
Dividend Type Cash Cash
Dividend Rate 10 cents per share (less
tax)
7.8 cents per share
net
Par Value of shares 20 cents 20 cents
Tax rate 20% See Note 1 below
Note:
1. Comprised of:
(i) 8.3425 cents per share (less tax at 20%) or 6.674 cents per share net of
tax; and
(ii) 1.126 cents per share (one-tier tax)
(c) Date payable
The date the dividend is payable: December 22, 2006.
(d) Books closure date
The Share Transfer Books and Register of Members of the Company will be closed
on December 13, 2006 for preparation of dividend warrants. Duly stamped and
completed transfers received by our Share Transfer Office, Barbinder & Co Pte Ltd,
8 Cross Street, #11-00, PWC Building, Singapore 048424, up to 5 p.m. on
December 12, 2006 will be registered to determine shareholders' entitlements to the
final and special dividends. In respect of shares in securities accounts with The
Central Depository (Pte) Limited (“CDP”), the said final and special dividends will be
paid by the Company to CDP which will distribute the dividends to holders of the
securities accounts.
12. If no dividend has been declared/recommended, a statement to that effect
Not applicable.
19

13. Segmental 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
Group Segmental Information
2006
Newspaper Treasury
and
and
Magazine Investment Property Others Eliminations Consolidated
S$’000 S$’000 S$’000 S$’000 S$’000 S$’000
Operating revenue
External sales 906,986 - 98,704 15,670 - 1,021,360
Inter-segmental sales 1,296 - 2,021 394 (3,711) -
__________ _________ ________ _________ _________ ____________
Total operating revenue 908,282 - 100,725 16,064 (3,711) 1,021,360
__________ _________ ________ _________ _________ ____________
Result
Segment result 316,003 80,892 71,102 (5,689) - 462,308
Finance costs (1) - (20,535) (77) - (20,613)
Finance income 411 - 651 4 - 1,066
Share of profit less losses
of associates/jointly
controlled entity 1,584 - - (1,769) - (185)
Exceptional items (2,276) - 70,534 (1,414) - 66,844
__________ _________ _________ _________ _________ ____________
Profit/(loss) before taxation 315,721 80,892 121,752 (8,945) - 509,420
Taxation (81,076)
____________
Profit after taxation 428,344
Minority interests 116
____________
Profit attributable to 428,460
shareholders
____________
Other Information
Segment assets 661,474 1,105,479 1,186,222 16,645 - 2,969,820
Interests in associates 23,860 - - 45,869 - 69,729
____________
Consolidated total assets 3,039,549
____________
Segment liabilities 162,138 6,764 640,588 4,344 - 813,834
Current taxation 104,932
Deferred taxation 72,046
____________
Consolidated total liabilities 990,812
____________
Capital expenditure 16,939 - 2,127 950 - 20,016
Depreciation 47,368 - 458 1,239 - 49,065
Amortisation 575 - - - - 575
Impairment losses
- Goodwill on acquisition
of interests in subsidiaries - - - 355 - 355
- Interests in associates 1,200 - - - - 1,200
- Interests in jointly-controlled
entity 1,128 - - - - 1,128
20

Group Segmental Information
2005
Restated
Newspaper Treasury
and
and
Magazine Investment Property Others Eliminations Consolidated
S$’000 S$’000 S$’000 S$’000 S$’000 S$’000
Operating revenue
External sales 891,783 - 89,445 26,284 - 1,007,512
Inter-segmental sales 1,985 - 2,141 95 (4,221) -
__________ _________ ________ _________ _________ ____________
Total operating revenue 893,768 - 91,586 26,379 (4,221) 1,007,512
__________ _________ ________ _________ _________ ____________
Result
Segment result 322,488 248,024 66,874 (14,843) - 622,543
Finance costs (51) - (22,035) (440) - (22,526)
Finance income 169 - 310 -* - 479
Share of profit less losses
of associates/jointly
controlled entity 236 - - (3,826) - (3,590)
Exceptional items (12,786) - - (25,756) - (38,542)
__________ _________ _________ _________ _________ ____________
Profit/(loss) before taxation 310,056 248,024 45,149 (44,865) - 558,364
Taxation (69,975)
____________
Profit after taxation 488,389
Minority interests (69)
____________
Profit attributable to 488,320
shareholders
____________
Other Information
Segment assets 678,952 803,274 1,098,903 19,856 - 2,600,985
Interests in associates 21,751 - - 6,324 - 28,075
____________
Consolidated total assets 2,629,060
____________
Segment liabilities 161,734 9,056 678,256 465 - 849,511
Current taxation 88,298
Deferred taxation 67,777
____________
Consolidated total liabilities 1,005,586
____________
Capital expenditure 15,093 - 13,245 487 - 28,825
Depreciation 49,497 - 467 336 - 50,300
Amortisation 552 - - - - 552
Impairment losses:
- Goodwill on acquisition
of subsidiaries 10,421 - - - - 10,421
- Goodwill on acquisition
of an associate 2,519 - - - - 2,519
- Interests in an associate 105 - - - - 105
- Property, plant
and equipment 688 - - - - 688
* Less than $500
21

Notes:
(a) Geographical segments: The principal geographical area in which the Group operates
is Singapore. The Group’s overseas operations comprise mainly publishing and
distributing magazines, holding overseas investments and the provision of marketing,
editorial, art and graphical services overseas.
Capital
Operating Revenue Total Assets Expenditure
2006 2005 2006 2005 2006 2005
S$’000 S$’000 S$’000 S$’000 S$’000 S$’000
Singapore 1,006,486 993,896 2,980,892 2,613,322 19,775 28,029
Other Countries 14,874 13,616 58,657 15,738 241 796
___________ _____________ _____________ _____________ ___________ ___________
1,021,360 1,007,512 3,039,549 2,629,060 20,016 28,825
___________ _____________ _____________ _____________ ___________ ___________
14. In the review of performance, the factors leading to any material changes in
contributions to turnover and earnings by the business or geographical
segments
Refer to paragraph 8.
15. Breakdown of Sales
Group
2006 2005 Change
S$’000 S$’000 %
(a) Operating revenue reported for first half
year 501,130 500,296 0.2
(b) Profit after tax before deducting minority
interests reported for the first half year 183,001 316,625 (42.2)
(c) Operating revenue reported for second half
year 520,230 507,216 2.6
(d) Profit after tax before deducting minority
interests reported for the second half
year 245,343 171,764 42.8
16. A breakdown of the total annual dividend (in dollar value) for the issuer’s
latest full year and its previous full year as follows:-
Total Net Annual Dividend
2006 2005
S$’000
S$’000
Ordinary 382,433 362,777
Preference - -
Total 382,433* 362,777
The amount of S$382,433,000 (Last year: S$362,777,000) included S$3,875,000
(Last year: S$3,671,000) for management shares.
* This may be increased depending on the number of issued shares existing as at
the books closure date on December 13, 2006.
22

17. Reclassification
The comparative figures of the amounts owing by/to associates and jointly controlled
entity and loan to associate, which were previously included in interests in
associates and jointly controlled entity, have been reclassified and shown separately
in the balance sheet. In addition, the comparative figures for deposits received from
customers, which were previously included in other creditors and accrued liabilities,
have been reclassified to trade creditors. The reclassifications were made to
conform to current year’s presentation. The comparative amounts reclassified out of
interests in associates, interests in jointly controlled entity and other creditors and
accrued liabilities are as follows:
Group Company
2005 2005
S$’000 S$’000
Interests in associates as reported on
August 31, 2005 34,103 35,172
Reclassified to “Amount owing by associates” (6,029) (6,012)
Reclassified to “Amount owing to associates” 1 -
____________
____________
Adjusted balance 28,075 29,160
____________
____________
Interests in jointly controlled entity as reported
on August 31, 2005 33 -
Reclassified to “Amount owing by jointly
controlled entity” (33) -
____________
____________
Adjusted balance - -
____________
____________
Other creditors and accrued liabilities as reported
on August 31, 2005 129,304 107,534
Reclassified to “Trade creditors” (4,237) (4,237)
____________
____________
Adjusted balance 125,067 103,297
____________
____________
Trade creditors as reported
on August 31, 2005 70,206 38,816
Reclassified from “Other creditors and
accrued liabilities” 4,237 4,237
____________
____________
Adjusted balance 74,443 43,053
____________
____________
23

BY ORDER OF THE BOARD
Ginney Lim May Ling
Khor Siew Kim
Company Secretaries
Singapore,
October 12, 2006
24