Financial Statements and Related Announcement: Full Yearly Results

NSL LTD

(Reg. no.: 196100107C)

Full Year Financial Statements Announcement The figures have not been audited PART I - INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (Q1, Q2 & Q3), HALF-YEAR AND FULL YEAR RESULTS

1(a) An income statement (for the group) together with a comparative statement for the corresponding period of the immediately preceding financial year

Continuing operations THE GROUP

Note FY 2016 FY 2015 Change S$'000 S$'000 %

(restated)

Sales 336,968 337,364 (0)

Cost of sales (280,294) (278,095) 1

Gross profit 56,674 59,269 (4)

Other income (2) 11,163 5,615 99

Other gains and losses (3) 1,695 (6,066) n/m

Distribution costs (4) (16,074) (14,497) 11

Administrative expenses (5) (34,047) (37,842) (10)

Finance costs (6) (1,634) (1,274) 28

Share of results of associated companies, net

of tax (7) (291) 1,859 n/m

Profit before income tax	(1)	17,486 7,064 148
Income tax (expense) / credit	(8)	(4,054) 758 n/m
Profit from continuing operations	13,432 7,822 72
Discontinued operations
Profit from discontinued operations	(9)	118,754 59,903 98
Total profit for the financial year	132,186 67,725 95
Profit attributable to equity holders of the Company:
- from continuing operations	13,885 8,272 68
- from discontinued operations	117,470 58,483 101
131,355 66,755 97
Profit / (loss) attributable to non-controlling interest:
- from continuing operations	(453) (450) 1
- from discontinued operations	1,284 1,420 (10)
831 970 (14)
Basic and fully diluted earnings per share (cents)
- from continuing operations	3.72 2.21 68
- from discontinued operations	31.45 15.66 101

n/m: not meaningful

Notes to the Group's Income Statement

1. Profit before taxation from Continuing Operations is arrived at after crediting / (charging) the following items:

   FY 2016 S$'000	FY 2015 S$'000
   Note	(restated)
   Dividend income	3,759	758
   Interest income	4,465	3,404
   Amortisation of intangible assets	(328)	(190)
   Depreciation of property, plant and equipment and investment properties	(i)	(11,251)	(12,507)
   Allowance for stocks obsolescence	(311)	(387)
   Write down of inventories to net realisable value, net	(253)	(518)
   Allowance for impairment of trade receivables, write back of allowance and bad debts (written off), net	(ii)	(1,364)	(5,954)

   Amortisation of deferred income 223 354

2. Decrease was due to lower depreciation recorded by Malaysian Precast operation.

3. Decrease was due to lower impairment of trade receivables by Environmental Services Division and Dubai Precast operation.

4. Other income

   The increase was contributed by higher interest income and dividend from an available-for-sale financial asset.

5. Other gains and losses

   Available-for-sale financial assets

   THE GROUP

   2016 2015 S$'000 S$'000 (restated)

   • Gain upon disposal - 96

     Fair value losses on derivative financial instruments (7) - Currency exchange loss - net (724) (480)

     Investment properties

   • Write-back / (allowance) for impairment 1,277 (100)

     Property, plant and equipment

   • Gains / (losses) on disposal and write-off, net 402 (16)

   • Write-back / (allowance) for impairment, net 719 (5,664)

     Bargain purchase on acquisition of a subsidiary 364 - Intangible assets

   • Allowance for impairment - (170)

   Others (336) 268

   1,695 (6,066)

   Notes to the Group's Income Statement (continued)

6. Distribution costs

   The increase was attributable to higher staff costs reported by the Environmental Services and Precast & PBU divisions.

7. Administrative expense

   The decrease was due mainly to lower provisions for doubtful debts recorded by the Environmental Services and Precast & PBU divisions.

8. Finance costs

   The increase in finance costs was attributable to increased borrowings of the Environmental Services division to finance the acquisition of a leasehold land.

9. Share of results of associated companies, net of tax

   The negative swing in share of results of associated companies in FY2016 was due mainly to losses incurred by PEINER SMAG Lifting Technologies GmbH ("PSLT"), of which the Company owns 33.33% non-controlling equity stake.

10. Income tax expense

    THE GROUP

    Continuing Operations	Note	FY 2016 S$'000	FY 2015 S$'000
    (restated)
    Taxation charge for the financial period comprises:
    - Current period taxation	(i)	(3,374)	646
    - (Under) / over provision in respect of prior years	(ii)	(680)	112
    (4,054)	758

11. The effective tax rate of the Group increased in FY2016 due to the absence of utilisation of tax losses by a Singapore subsidiary last year and higher pre-tax contributions from certain foreign subsidiaries in countries with higher corporate tax rates in the current year.

12. Under-provision in respect of prior years in FY2016 was due mainly to an adjustment to the tax provision of our Malaysian Precast operation.

Notes to the Group's Income Statement (continued)

(9)	Profit from discontinued operations An analysis of the results of discontinued operations is as follows:
FY 2016	FY 2015
S$'000	S$'000
(restated)
Sales	96,861	119,772
Net expenses	(76,461)	(96,808)
Share of results of associated companies, net of tax	(17)	(136)
Profit before tax from discontinued operations	20,383	22,828
Income tax expense	(3,223)	(4,070)
Profit after tax from discontinued operations	17,160	18,758
Exceptional gains on disposal of subsidiaries	101,594	41,145
Profit after tax from discontinued operations	118,754	59,903
*Breakdown of profit from discontinued operations
2016	2015
S$'000	S$'000
(restated)
Engineering operations	-	(1,066)
Lime and limestones operations	-	574
Dry Mix operations	17,160	19,250
Exceptional gain on disposal
- Lime business	8	27,250
- Engineering business	-	13,895
- Dry Mix business	101,586	-
101,594	41,145
118,754	59,903