| |
|
|
2009 |
2008 |
|
Note |
S$’000 |
S$’000 |
|
|
|
|
Net operating profit before income tax expense |
|
1,108,742 |
735,849 |
Adjust for: |
|
|
|
Share of associates’ and joint ventures’ profits |
|
136,412 |
139,846 |
Interest expense |
1 |
44,538 |
47,521 |
Others |
2 |
20,020 |
5,199 |
Adjusted profit before interest and tax |
|
1,309,712 |
928,415 |
Cash operating taxes |
3 |
(216,663) |
(104,536) |
Net operating profit after tax (NOPAT) |
|
1,093,049 |
823,879 |
Average capital employed |
4 |
5,376,210 |
5,419,183 |
Weighted average cost of capital |
5 |
6.0% |
5.8% |
Capital charge |
|
322,573 |
313,221 |
|
|
|
|
Economic Value Added (EVA) |
|
770,476 |
510,658 |
Minority share of EVA |
|
(284,850) |
(174,888) |
EVA attributable to shareholders |
|
485,626 |
335,770 |
Less: Unusual Items (UI) Gains |
6 |
2,101 |
9,810 |
EVA attributable to shareholders (exclude UI) |
|
483,525 |
325,960 |
|
| |
| 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, warranty, 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. |
Average capital employed is computed by taking monthly average total assets less non interest-bearing liabilities plus timing provision, goodwill written off / impaired and present value of operating leases. |
|
| |
|
2009 |
2008 |
|
S$’000 |
S$’000 |
|
|
|
Major Capital Components: |
|
|
Fixed assets |
2,680,567 |
2,757,086 |
Investments |
1,143,646 |
1,116,191 |
Other long-term assets |
451,564 |
803,711 |
Net working capital and long-term liabilities |
1,100,433 |
742,195 |
Average capital employed |
5,376,210 |
5,419,183 |
|
| |
| 5. |
The Weighted Average Cost of Capital is calculated in accordance with the Sembcorp Group EVA Policy as follows: |
| |
| i. |
Cost of Equity using Capital Asset Pricing Model with market risk premium at 6.0% (2008: 6.0%); |
| ii. |
Risk-free rate of 2.08% (2008: 2.74%) based on yield-to-maturity of Singapore Government 10-year Bonds; |
| iii. |
Ungeared beta ranging from 0.5 to 1.1 (2008: 0.5 to 1.0) based on Sembcorp Industries’ risk categorisation; and |
| iv. |
Cost of Debt rate at 4.98% (2008: 3.53%). |
|
| 6. |
Unusual items (“UI”) refer to gain / loss on divestment of subsidiaries, associates, joint ventures, long-term investments and disposal of major fixed assets. |
|
