|
|
2008 |
2007 |
|
Note |
S$’000 |
S$’000 |
|
|
|
|
Net operating profit before income tax expense |
|
735,849 |
633,910 |
Adjust for: |
|
|
|
Share of associates’ and joint ventures’ profits |
|
139,846 |
174,631 |
Interest expense |
1 |
47,521 |
57,783 |
Others |
2 |
5,199 |
2,397 |
Adjusted profit before interest and tax |
|
928,415 |
868,721 |
Cash operating taxes |
3 |
(104,536) |
(138,242) |
Net operating profit after tax (NOPAT) |
|
823,879 |
730,479 |
Average capital employed |
4 |
5,419,183 |
5,158,888 |
Weighted average cost of capital |
5 |
5.8% |
6.1% |
Capital charge |
|
313,221 |
313,372 |
|
|
|
|
Economic Value Added (EVA) |
|
510,658 |
417,107 |
Minority share of EVA |
|
(174,888) |
(77,068) |
EVA attributable to shareholders |
|
335,770 |
340,039 |
Less: Unusual Items (UI) Gains |
6 |
9,810 |
208,123 |
EVA attributable to shareholders (exclude UI) |
|
325,960 |
131,916 |
|
| Notes: |
| 1. |
Interest expense includes imputed interest on present value of operating leases and capitalised interest charged to
income statement upon disposal of the assets. |
| 2. |
Other adjustments include recovery of investment costs, timing difference of allowances made for / (write-back) of
doubtful debts, inventory obsolescence and goodwill written off / impaired and construction-in-progress. |
| 3. |
The reported current tax is adjusted for the statutory tax impact of interest expense. |
| 4. |
Monthly average total assets less non interest-bearing liabilities plus timing provision, goodwill written off / impaired
and present value of operating leases. |
|
| |
|
2008 |
2007 |
|
S$’000 |
S$’000 |
|
|
|
Major Capital Components: |
|
|
Fixed assets |
2,757,086 |
2,740,085 |
Investments |
1,116,191 |
1,231,615 |
Other long-term assets |
803,711 |
512,148 |
Net working capital and long-term liabilities |
742,195 |
675,040 |
Average capital employed |
5,419,183 |
5,158,888 |
|
| |
| 5. |
The Weighted Average Cost of Capital is calculated in accordance with Sembcorp Industries Ltd Group EVA Policy as follows: |
| |
| i. |
Cost of Equity using Capital Asset Pricing Model with market risk premium at 6.0% (2007: 6.0%); |
| ii. |
Risk-free rate of 2.74% (2007: 3.05%) based on yield-to-maturity of Singapore Government 10-years Bonds; |
| iii. |
Ungeared beta ranging from 0.5 to 1.0 (2007: 0.5 to 1.0) based on Sembcorp Industries Ltd risk categorisation; and |
| iv. |
Cost of Debt rate at 3.53% (2007: 4.12%) using 5-year Singapore Dollar Swap Offer Rate plus 55 basis points (2007:5-year Singapore Dollar Swap Offer Rate plus 75 basis points). |
|
| 6. |
Unusual items (“UI”) refer to divestment of subsidiaries, associates, joint ventures, long-term investments and disposal
of major fixed assets. |
|
| |
