Keppel : Telecommunications & Transportation Ltd Unaudited Results For The Fourth Quarter And Financial Year Ended 31 December 2016

KEPPEL TELECOMMUNICATIONS & TRANSPORTATION LTD UNAUDITED RESULTS FOR THE FOURTH QUARTER AND FINANCIAL YEAR ENDED 31 DECEMBER 2016‌‌ 25 January 2017

The Directors of Keppel Telecommunications & Transportation Ltd advise the following results of the Company and of the Group for the fourth quarter and financial year ended 31 December 2016.‌

These figures have not been audited.

FY2016 RESULTS HIGHLIGHTS

1. The Group's net profit attributable to shareholders for the full year improved by 15% from $91.5 million in 2015 to $105.1 million in 2016 due mainly to higher contribution from Data Centre Division, partly offset by weaker contribution by Logistics Division.

   For the quarter, net profit attributable to shareholders was $3.1 million compared to $44.5 million in 4Q 2015 due mainly to lower fair value gain on data centre investment properties and share of profits from associated companies.‌

2. Earnings per share increased by 15% to 18.9 cents.

3. Net asset value per ordinary share increased by 10% to $1.43 per share, compared to $1.30 per share at December 2015.

4. Net gearing was 0.53x.

5. Final dividend of 4.5 cents per share.

For more information, please contact: Media‌

Ang Lai Lee (Mr)

Assistant General Manager

Group Corporate Communications Keppel Corporation Limited

Tel: [phone]

Email: [e-mail]

Investor Relations

Ivana Chua (Ms)

Assistant General Manager

Group Corporate Communications Keppel Corporation Limited

Tel: [phone]

Email: [e-mail]

This press release is also available at www.kepcorp.com and www.keppeltt.com.sg.

KEPPEL TELECOMMUNICATIONS & TRANSPORTATION LTD

(Co Reg No: 196500115G)

(Incorporated in the Republic of Singapore)

FULL YEAR 2016 FINANCIAL STATEMENTS AND DIVIDEND ANNOUNCEMENT TABLE OF CONTENTS

Paragraph	Description	Page
1(a)	GROUP PROFIT AND LOSS ACCOUNT ...................................................................	1
1(b)	CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME...........................	4
1(c)(i)	BALANCE SHEETS ....................................................................................................	5
1(d)(i)	CONSOLIDATED STATEMENT OF CASH FLOWS ..................................................	8
1(e)(i)	STATEMENTS OF CHANGES IN EQUITY ................................................................	12
2	AUDIT ..........................................................................................................................	16
3	AUDITORS' REPORT .................................................................................................	16
4	ACCOUNTING POLICIES...........................................................................................	16
5	CHANGES IN ACCOUNTING POLICIES ...................................................................	16
6	EARNINGS PER ORDINARY SHARE........................................................................	17
7	NET ASSET VALUE....................................................................................................	17
8	REVIEW OF GROUP PERFORMANCE .....................................................................	17
9	VARIANCE FROM FORECAST STATEMENT ...........................................................	18
10	PROSPECTS ..............................................................................................................	18
11	DIVIDENDS .................................................................................................................	19
11(e)	TOTAL ANNUAL DIVIDEND .......................................................................................	19
12	SEGMENT ANALYSIS ................................................................................................	20
13	REVIEW OF SEGMENT PERFORMANCE ................................................................	22
14	BREAKDOWN OF SALES ..........................................................................................	22
15	INTERESTED PERSON TRANSACTIONS ................................................................	23
16	REPORT OF PERSONS OCCUPYING MANAGERIAL POSITIONS WHO ARE RELATED TO A DIRECTOR, CEO OR SUBSTANTIAL SHAREHOLDER ................
23
17	CONFIRMATION THAT THE ISSUER HAS PROCURED UNDERTAKINGS FROM ALL ITS DIRECTORS AND EXECUTIVE OFFICERS ....................................
24

KEPPEL TELECOMMUNICATIONS & TRANSPORTATION LTD (Co Reg No: 196500115G)

Full Year 2016 Financial Statements and Dividend Announcement

1. UNAUDITED RESULTS FOR THE FOURTH QUARTER AND FINANCIAL YEAR ENDED 31 DECEMBER 2016

   The Directors of Keppel Telecommunications & Transportation Ltd advise the following unaudited results of the Group for the fourth quarter and financial year ended 31 December 2016.

   1(a) GROUP PROFIT AND LOSS ACCOUNT for the fourth quarter and financial year ended 31 December 2016

   Fourth Quarter				Full Year
   2016	2015	+/(-)	2016	2015	+/(-)
   $'000	$'000	%	$'000	$'000	%
   REVENUE	49,680	52,594	(5.5)	194,622	200,566	(3.0)
   Operating expenses	(49,098)	(44,446)	10.5	(179,175)	(180,751)	(0.9)
   Other income	686	27,676	(97.5)	64,726	34,383	88.3
   OPERATING PROFIT	1,268	35,824	(96.5)	80,173	54,198	47.9
   Interest income	565	742	(23.9)	1,726	1,811	(4.7)
   Interest expense	(3,050)	(3,580)	(14.8)	(12,696)	(12,232)	3.8
   Share of results of associated companies and joint ventures	9,537	31,516	(69.7)	61,080	85,832	(28.8)
   PROFIT BEFORE TAXATION	8,320	64,502	(87.1)	130,283	129,609	0.5
   Taxation	(3,355)	(10,456)	(67.9)	(16,960)	(23,623)	(28.2)
   PROFIT FOR THE PERIOD	4,965	54,046	(90.8)	113,323	105,986	6.9
   Attributable to:
   Shareholders of the Company	3,081	44,514	(93.1)	105,080	91,481	14.9
   Non-controlling interests	1,884	9,532	(80.2)	8,243	14,505	(43.2)
   4,965	54,046	(90.8)	113,323	105,986	6.9
   Earnings per share
   - basic	0.6 cts	8.0 cts	(92.5)	18.9 cts	16.5 cts	14.5
   - diluted	0.6 cts	8.0 cts	(92.5)	18.8 cts	16.4 cts	14.6

   1(a) GROUP PROFIT AND LOSS ACCOUNT (cont'd) for the fourth quarter and financial year ended 31 December 2016 Notes to Group Profit and Loss Account

2. Operating expenses/other income comprise the following:

   Fourth Quarter		Full Year
   2016	2015	+/(-)	2016	2015	+/(-)
   $'000	$'000	%	$'000	$'000	%
   Purchase of goods and services(a)	14,629	13,002	12.5	50,991	58,124	(12.3)
   Staff costs(b)	17,194	14,051	22.4	59,886	58,340	2.6
   Share-based payment expenses	377	273	38.1	2,046	1,851	10.5
   Depreciation of fixed assets(c)	5,338	5,239	1.9	18,497	16,424	12.6
   Equipment rental and facilities expenses	7,809	8,716	(10.4)	35,064	33,839	3.6
   Other operating expenses	3,751	3,165	18.5	12,691	12,173	4.3
   Operating expenses	49,098	44,446	10.5	179,175	180,751	(0.9)
   Other income(d)	686	27,676	(97.5)	64,726	34,383	88.3

   Notes:

3. Purchase of goods and services decreased for the year due mainly to lower transportation costs and handling fees, in line with lower revenue in the Logistics Division.

4. Staff costs increased due to higher head count for business development in the Data Centre Division, partly offset by lower staff costs from a subsidiary disposed in July 2016.

5. Depreciation increased due mainly to depreciation charges on new logistics facilities.

6. Other income for the quarter decreased due mainly to lower fair value gain on investment properties and distribution from other investments, partly offset by absence of impairment loss on investments and goodwill written off during the same period in 2015. Other income for the year increased due mainly to gain on disposal of a subsidiary and adjustment to gain on disposal of data centres, partly offset by higher impairment losses and lower fair value gain on investment properties and distribution from other investments.