RAFFLES MEDICAL GROUP LTD

(Co Reg No: 198901967K)

Audited Full Year Financial Statement and Related Announcement For The Year Ended 31 December 2013

PART I - INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (Q1, Q2 & Q3), HALF
YEAR AND FULL YEAR RESULTS

1(a) An income statement and statement of comprehensive income, or a statement of comprehensive

income, for the group, together with a comparative statement for the corresponding period of the
immediately preceding financial year.

2013 2012 Change

Consolidated Income Statement
S$’000 S$’000 %
Revenue 340,989 311,633 9.4
Other operating income 24,331 4,026 nm
Inventories and consumables used (38,237) (38,736) (1.3)
Purchased and contracted services (24,625) (22,386) 10.0
Staff costs (170,091) (152,275) 11.7
Depreciation of property, plant and equipment (8,268) (7,903) 4.6
Operating lease expenses (7,271) (7,165) 1.5
Other operating expenses (22,501) (20,839) 8.0
Profit from operating activities 94,327 66,355 42.2
Finance income 960 465 106.5
Finance expenses (49) (235) (79.1)
Profit before tax 95,238 66,585 43.0
Tax expense (9,943) (9,376) 6.0
Profit for the year 85,295 57,209 49.1

Attributable to :

Owners of the Company 84,892 56,849 49.3

Non-controlling interests 403 360 11.9
Profit for the year 85,295 57,209 49.1

Page 1 of 17
1(a) An income statement and statement of comprehensive income, or a statement of comprehensive
income, for the group, together with a comparative statement for the corresponding period of the
immediately preceding financial year (Cont’d).

2013 2012 Change

Consolidated statement of comprehensive income
S$’000 S$’000 %
Profit for the year 85,295 57,209 49.1
Other comprehensive income
Items that are or may be reclassified subsequently to profit or loss:
Foreign currency translation differences - foreign operations (30) 32 nm
Total comprehensive income for the year 85,265 57,241 49.0

Total comprehensive income attributable to:

Owners of the Company 84,862 56,881 49.2
Non-controlling interests 403 360 11.9
Total comprehensive income for the year 85,265 57,241 49.0
Note : nm denotes not meaningful

Explanatory notes to the Consolidated Income Statement

1. Higher purchased and contracted services were mainly attributed to higher insurance claims from increased
insurance services provided.
2. Staff costs increased in tandem with higher volume of business in the Group. The rate of increase for staff costs
was higher than the growth in revenue mainly due to recruitment of specialists as well as an increase in bonus for
employees of the Group.
3. Excluding the fair value gain on investment properties and gain arising from the disposal of a subsidiary, the
Group’s results showed a 14.5% increase in profit after tax from S$53.3 million to S$61.0 million for the year
ended 31 December 2013.
4. Profit from operating activities before taxation includes the following:

2013 2012
Group S$’000 S$'000
(a) Other operating income
Change in fair value of investment properties 3,900 3,938
Gain on disposal of a subsidiary 20,388 -
Gain on disposal of property, plant and equipment 43 88

(b) Other operating expenses

Allowance for doubtful trade receivables 707 649
Impairment of intangible assets - 152
Loss on disposal of property, plant and equipment 2 -
Property, plant and equipment written off 102 102
Write-off for stock obsolescence 119 26

5. The adjustment for under and over provision of tax in respect of prior years are as follows:
2013 2012
S$'000 S$'000
Deferred tax expense
Under provision in respect of prior years - 56
Current tax expense
Over provision in respect of prior years 983 251

Page 2 of 17
1(b)(i) A statement of financial position (for the issuer and group), together with a comparative statement
as at the end of the immediately preceding financial year.

Group Company
2013 2012 2013 2012
S$'000 S$'000 S$'000 S$'000

Non-current assets
Property, plant and equipment 153,656 153,888 4,422 4,155
Intangible assets 164 164 93 93
Investment properties 100,400 194,500 - -
Subsidiaries - - 241,584 263,070
254,220 348,552 246,099 267,318

Current assets
Inventories 9,080 5,442 2,062 1,270
Trade and other receivables 44,228 38,169 16,660 66,236
Cash and cash equivalents 265,907 102,482 220,046 77,223
319,215 146,093 238,768 144,729
Total assets 573,435 494,645 484,867 412,047

Equity attributable to owners of the

Company
Share capital 228,160 207,188 228,160 207,188
Reserves 244,344 181,234 152,217 105,395
472,504 388,422 380,377 312,583
Non-controlling interests 1,289 994 - -
Total equity 473,793 389,416 380,377 312,583

Non-current liabilities
Deferred tax liabilities 2,127 1,670 435 302
2,127 1,670 435 302

Current liabilities
Trade and other payables 72,664 66,318 98,830 94,372
Insurance contract provisions 9,700 6,162 - -
Interest-bearing liabilities 4,755 19,747 4,755 3,747
Current tax liabilities 10,396 11,332 470 1,043
97,515 103,559 104,055 99,162
Total liabilities 99,642 105,229 104,490 99,464
Total equity and liabilities 573,435 494,645 484,867 412,047

Page 3 of 17
1(b)(i) A statement of financial position (for the issuer and group), together with a comparative statement
as at the end of the immediately preceding financial year (Cont’d).

Explanatory notes to the Statement of Financial Position

1. Investment properties decreased by S$94.1 million due to the disposal of the Company’s interests in its subsidiary,
Raffles Medical Management Pte Ltd (now known as “Orchard Investment Holdings Pte Ltd”); which held the
Group’s investment property at 30 Bideford Road.

2. Inventories increased in tandem with higher business volume.

3. Trade and other receivables increased mainly due to the deposit paid for the acquisition of a property amounting to
S$5.5 million, coupled with the increase in trade receivables arising from the higher business volume in the Group.

4. The Group’s net cash position increased from S$82.7 million as at 31 December 2012 to S$261.2 million as at 31
December 2013. This was attributed mainly to strong operating cash flows generated by the Group from its
increased business operations and the proceeds from the disposal of a subsidiary of S$119.2 million, offset by
payments for the purchase of property, plant and equipment amounting to S$8.2 million and distribution of cash
dividends of S$10.0 million.

5. The increase in the Group’s trade and other payables was mainly driven by higher business volume.

6. Insurance contract provisions increased by S$3.5 million mainly due to higher unearned premiums arising from
insurance premium billings.

1(b)(ii) Aggregate amount of group’s borrowings and debt securities.

Amount repayable in one year or less, or on demand

As at 31/12/2013 As at 31/12/2012
Secured Unsecured Secured Unsecured
S$’000 S$’000 S$’000 S$’000
- 4,755 - 19,747

Amount repayable after one year

Nil.

Details of any collateral

Nil.

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1(c) A statement of cash flows (for the group), together with a comparative statement for the
corresponding period of the immediately preceding financial year.
2013 2012
Cash flows from operating activities S$'000 S$'000
Profit before tax 95,238 66,585
Adjustments for :-
Change in fair value of investment properties (3,900) (3,938)
Depreciation of property, plant and equipment 8,268 7,903
Equity-settled share-based payment transactions 2,946 2,236
Finance expenses 49 235
Finance income (960) (465)
Gain on disposal of a subsidiary (20,388) -
Gain on disposal of property, plant and equipment (43) (88)
Impairment of intangible assets - 152
Loss on disposal of property, plant and equipment 2
Property, plant and equipment written off 102 102
81,314 72,722
Changes in working capital :-
Inventories (3,638) (306)
Trade and other receivables (6,093) (6,228)
Trade and other payables 6,512 11,434
Insurance contract provisions 3,538 1,143
Cash generated from operations 81,633 78,765
Taxes paid (10,422) (9,043)
Interest paid (20) (177)
Net cash from operating activities 71,191 69,545

Cash flows from investing activities

Interest received 892 379
Proceeds from sale of property, plant and equipment 138 97
Proceeds from disposal of a subsidiary 119,232 -
Purchase of property, plant and equipment (8,186) (9,737)
Payment for development related cost of investment property (922) (1,200)
Net cash from / (used in) investing activities 111,154 (10,461)

Cash flows from financing activities

Dividends paid to owners of the Company (9,854) (9,111)
Dividends paid to non-controlling shareholder of the subsidiary (108) (68)
Proceeds from issue of shares under share option scheme 6,128 4,409
Proceeds from bank loan 49,873 19,188
Repayment of bank loans (65,024) (20,668)
Net cash used in financing activities (18,985) (6,250)

Net increase in cash and cash equivalents 163,360 52,834

Cash and cash equivalents at 1 January 102,482 49,691
Effect of exchange rate changes on balances held in foreign
65 (43)
currency
Cash and cash equivalents at 31 December 265,907 102,482

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1(c) A statement of cash flows (for the group), together with a comparative statement for the
corresponding period of the immediately preceding financial year (Cont’d).

Explanatory note to the Statement of Cash Flows

The Group’s cash and cash equivalents increased by S$163.4 million from S$102.5 million as at 31
December 2012 to S$265.9 million as at 31 December 2013. This was attributed mainly to strong operating
cash flows generated by the Group and proceeds from disposal of a subsidiary of S$119.2 million. The
increase was offset by the net repayment of bank loans of S$15.2 million, payments for the purchase of
property, plant and equipment amounting to S$8.2 million and distribution of cash dividends of S$10.0
million.

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.
Total
attributable
Currency Share to owners Non-
Share translation option Accumulated of the controlling Total
capital reserve reserve profits Company interests equity
Group S$'000 S$'000 S$’000 S$'000 S$’000 S$’000 S$'000

At 1 January 2012 190,344 (117) 10,339 133,441 334,007 702 334,709

Comprehensive income for the year
Profit for the year - - - 56,849 56,849 360 57,209
Other comprehensive income
Foreign currency translation differences for
foreign operations - 32 - - 32 - 32
Total comprehensive income for the year - 32 - 56,849 56,881 360 57,241
Transactions with owners, recorded
directly in equity
Contributions by and distributions to
owners
Issue of shares upon the exercise of options
under Raffles Medical Group Employees’
Share Option Scheme 4,409 - - - 4,409 - 4,409
Issue of shares in lieu of cash dividends of
3.0 cents per ordinary share pursuant to
Raffles Medical Group Ltd Scrip
Dividend Scheme 12,435 - - - 12,435 - 12,435
Value of employee services received for
issue of share options - - 2,236 - 2,236 - 2,236
Final dividend paid of 3.0 cents per
ordinary share - Cash - - - (3,673) (3,673) - (3,673)
Final dividend paid of 3.0 cents per
ordinary share - Scrip - - - (12,435) (12,435) - (12,435)
Interim dividend paid of 1.0 cent per
ordinary share - Cash - - - (5,438) (5,438) - (5,438)
Dividends distributed to non-controlling
shareholder of a subsidiary - - - - - (68) (68)
Total contributions by and
distributions to owners 16,844 - 2,236 (21,546) (2,466) (68) (2,534)

At 31 December 2012
207,188 (85) 12,575 168,744 388,422 994 389,416

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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 (Cont’d).

Total
attributable to
Currency Share owners Non-
Share translation option Accumulated of the controlling Total
capital reserve reserve profits Company interests equity
Group S$'000 S$'000 S$’000 S$'000 S$’000 S$’000 S$'000

At 1 January 2013 207,188 (85) 12,575 168,744 388,422 994 389,416

Comprehensive income for the year

Profit for the year

- - - 84,892 84,892 403 85,295
Other comprehensive income
Foreign currency translation differences for foreign
- (30) - - (30) - (30)
operations
Total comprehensive income for the year - (30) - 84,892 84,862 403 85,265
Transactions with owners, recorded directly in
equity
Contributions by and distributions to owners
Issue of shares upon the exercise of options under
Raffles Medical Group Employees’ Share Option 6,128 - - - 6,128 - 6,128
Scheme
Issue of shares in lieu of cash dividends of 3.5 cents
per ordinary share pursuant to Raffles Medical 14,844 - - - 14,844 - 14,844
Group Ltd Scrip Dividend Scheme
Value of employee services received for issue of
share options - - 2,946 - 2,946 - 2,946
Final dividend paid of 3.5 cents per ordinary share
- - - (4,319) (4,319) - (4,319)
- Cash
Final dividend paid of 3.5 cents per ordinary share
- - - (14,844) (14,844) - (14,844)
- Scrip
Interim dividend paid of 1.0 cent per ordinary share
- Cash - - - (5,535) (5,535) - (5,535)
Dividends distributed to non-controlling shareholder
- - - - - (108) (108)
of a subsidiary
Total contributions by and distributions to
20,972 - 2,946 (24,698) (780) (108) (888)
owners

At 31 December 2013 228,160 (115) 15,521 228,938 472,504 1,289 473,793

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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 (Cont’d).

Share
Share option Accumulated
capital reserve profits Total
Company S$'000 S$’000 S$'000 S$'000

At 1 January 2012 190,344 10,339 68,546 269,229

Comprehensive income for the year
Profit for the year - - 45,820 45,820
Total comprehensive income for the year - - 45,820 45,820
Transactions with owners, recorded directly in equity
Contributions by and distributions to owners
Issue of shares upon the exercise of options under Raffles Medical
Group Employees’ Share Option Scheme 4,409 - - 4,409
Issue of shares in lieu of cash dividends of 3.0 cents per ordinary
share pursuant to Raffles Medical Group Ltd Scrip Dividend
Scheme 12,435 - - 12,435
Value of employee services received for issue of share options - 2,236 - 2,236
Final dividend paid of 3.0 cents per ordinary share - Cash - - (3,673) (3,673)
Final dividend paid of 3.0 cents per ordinary share - Scrip - - (12,435) (12,435)
Interim dividend paid of 1.0 cent per ordinary share - Cash - - (5,438) (5,438)
Total contributions by and distributions to owners 16,844 2,236 (21,546) (2,466)

At 31 December 2012 207,188 12,575 92,820 312,583

At 1 January 2013 207,188 12,575 92,820 312,583

Comprehensive income for the year
Profit for the year - - 68,574 68,574
Total comprehensive income for the year - - 68,574 68,574
Transactions with owners, recorded directly in equity
Contributions by and distributions to owners
Issue of shares upon the exercise of options under Raffles Medical
6,128 - - 6,128
Group Employees’ Share Option Scheme
Issue of shares in lieu of cash dividends of 3.5 cents per ordinary
share pursuant to Raffles Medical Group Ltd Scrip Dividend 14,844 - - 14,844
Scheme
Value of employee services received for issue of share options - 2,946 - 2,946
Final dividend paid of 3.5 cents per ordinary share - Cash - - (4,319) (4,319)
Final dividend paid of 3.5 cents per ordinary share - Scrip - - (14,844) (14,844)
Interim dividend paid of 1.0 cent per ordinary share - Cash - - (5,535) (5,535)
Total contributions by and distributions to owners 20,972 2,946 (24,698) (780)

At 31 December 2013 228,160 15,521 136,696 380,377

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 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 well as the number of shares held as
treasury shares, if any, against the total number of issued shares excluding treasury shares of the
issuer, as at the end of the current financial period reported on and as at the end of the
corresponding period of the immediately preceding financial year.

During the year ended 31 December 2013, the Company issued a total of 9,030,545 new ordinary
shares due to the allotment and issue of 4,931,545 ordinary shares arising from the application of Raffles
Medical Group Ltd Scrip Dividend Scheme in respect of the final dividend for the financial year ended 31
December 2012, as well as the allotment and issue of 4,099,000 new ordinary shares pursuant to the
exercise by options holders under the Raffles Medical Group Share Option Schemes.

Exercise price per share S$0.185 S$0.33 S$0.42 S$0.71 S$1.15

Number of new shares issued 139,000 84,000 168,000 475,000 131,000

Exercise price per share S$1.24 S$0.78 S$1.66 S$2.20 S$2.34

Number of new shares issued 269,000 501,000 802,000 851,000 679,000

On 1 April 2013, options to subscribe for 6,200,000 ordinary shares at an exercise price of S$3.28 were
granted to 487 eligible participants pursuant to the Raffles Medical Group (2010) Share Option Scheme.

As at 31 December 2013, there were outstanding options for conversion into 21,200,000 (31 December
2012: 19,966,000) ordinary shares. The Company does not hold any treasury shares as at 31 December
2013 (31 December 2012: Nil).

1(d)(iii) To show the total number of issued shares excluding treasury shares as at the end of the current
financial period and as at end of the immediately preceding year.

31/12/2013 31/12/2012

Number of issued shares excluding treasury shares 553,847,862 544,817,317

1(d)(iv) A statement showing all sales, transfers, disposal, cancellation and/or use of treasury shares as
at the end of the current financial period reported on.

There were no sales, transfers, disposal, cancellation and/or use of treasury shares as at 31
December 2013 (31 December 2012 : Nil).

2. Whether the figures have been audited or reviewed and in accordance with which auditing
standard or practice.

The financial statements on consolidated results for the year ended 31 December 2013 have been
audited in accordance with Singapore Standards on Auditing.

Page 9 of 17
3. Where the figures have been audited or reviewed, the auditors’ report (including any
qualifications or emphasis of a matter).

As attached.

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 and methods of computation used in the consolidated financial statements for the
year ended 31 December 2013 are consistent with those applied in the financial statements for the year
ended 31 December 2012, except for those as disclosed under item 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 the effect
of, the change.

Fair value measurement

From 1 January 2013, in accordance with the transitional provisions of FRS113, the Group has applied
the new fair value measurement guidance prospectively, and has not provided any comparative
information for new disclosures. Notwithstanding the above, the change had no significant impact on the
measurements of the Group’s assets and liabilities. The additional disclosures have been appropriately
made in the Group’s financial statements as a result of the adoption of this standard.

Presentation of items of other comprehensive income

From 1 January 2013, as a result of the amendments to FRS 1, the Group has modified the presentation
of items of other comprehensive income in its consolidated statement of comprehensive income, to
present separately items that would be reclassified to profit or loss in the future from those that would
never be. Comparative information has also been re-presented accordingly.

The adoption of the new/revised accounting standards and interpretations does not have any material
effect on the financial statements of the Group.

6. Earnings per ordinary share of the group for the current financial period reported on and the
corresponding period of the immediately preceding financial year, after deducting any provision
for preference dividends.

2013 2012

Earnings per ordinary share for the period based on 1(a) above :-

(i) Basic earnings per share [A] 15.43 cents 10.53 cents

(ii) Diluted earnings per share [B] 15.24 cents 10.42 cents

[A] The calculation of earnings per ordinary share was based on weighted average number of shares of 550,127,837 (2012 :
539,872,516) in issue during the year.

[B] The calculation of earnings per ordinary share (on a fully diluted basis) was based on weighted average number of shares of
556,905,918 (2012 : 545,406,361) in issue during the year.

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7. Net asset value (for the issuer and group) per ordinary share based on the total number of
issued shares excluding treasury shares of the issuer at the end of the:-

(a) current financial period reported on; and

(b) immediately preceding financial year.

Group Company
31/12/2013 31/12/2012 31/12/2013 31/12/2012

Net asset value per ordinary share [C] 85.31 cents 71.29 cents 68.68 cents 57.37 cents

[C] The calculation of net asset value per ordinary share was based on 553,847,862 shares as at 31 December 2013 (31
December 2012 : 544,817,317).

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 the following:-

(a) 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
(b) any material factors that affected the cash flow, working capital, assets or liabilities of the
group during the current financial period reported on.

The Group’s revenue increased 9.4% from S$311.6 million in 2012 to S$341.0 million for the year ended
2013. Revenue from Hospital Services and Healthcare Services expanded at 12.4% and 6.2%
respectively in 2013 as compared to 2012. The Group continued to grow its revenue from medical
services with more specialist consultants, higher patient load and greater patient acuity, increased
contributions from overseas operations as well as provision of more healthcare insurance services.
Revenue from Investment Holdings was lower in 2013 as the tenancy leases for the property at 30
Bideford Road were progressively ended prior to the disposal of the subsidiary, Raffles Medical
Management Pte Ltd (now known as “Orchard Investment Holdings Pte Ltd”) on 31 October 2013 (“RMM
Disposal”).

The Group recorded a net profit after tax of S$85.3 million for the financial year ended 2013, which is
49.1% higher than 2012 profit after tax of S$57.2 million. Excluding the gain of S$20.4 million that the
Group made in 2013 from the RMM Disposal and fair value gain on investment properties of S$3.9
million, the proforma increase in net profit after tax for the Group was 14.5% from S$53.3 million in 2012
to S$61.0 million in 2013. This strong result was the outcome of revenue growth coupled with improved
operating leverage and operational efficiencies.

The Group’s strong cash position of S$265.9 million as at 31 December 2013 was largely due to net
proceeds from the RMM Disposal, amounting to S$119.2 million, as well as continuing strong cashflows
generated from operations. This cash position will support the Group’s growth and expansion plans.

The Directors are pleased to recommend a final dividend of 4.0 cents per share amounting approximately
to S$22.2 million. Including the interim dividend of 1.0 cent per share paid in August 2013, the total
dividends for the financial year ended 31 December 2013 would amount to 5.0 cents per share, an
increase of 0.5 cent (11.1%) as compared to financial year ended 31 December 2012.

Page 11 of 17
9. Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any
variance between it and the actual results.

The current financial period’s results are in line with the Directors’ expectations as disclosed in the
Group’s Q3 2013 results announcement.

10. A commentary at the date of the 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.

RafflesHospital performed well in 2013 registering strong growth in census and revenue.

The Group agreed on 21 January 2014 to acquire from the Singapore Land Authority a land site, adjacent
2
to RafflesHospital, of 1,978.10 m with a plot ratio 5.6. This, together with the additional gross floor area
from the provisional permission obtained from the Urban Redevelopment Authority in July 2010 to
increase the plot ratio on the Hospital’s existing land from 4.2 to 5.6, will be used to expand Raffles
Hospital’s healthcare facilities and services on the adjacent site. The new building will allow for
development of new medical centres, including a number of centres of excellence, a healthcare training
institute, clinical research, as well as adding more beds in service. It will offer substantial opportunites for
the hospital’s expansion and growth over the next 10 years.

With the recent refurbishment of the external facade and internal facilities, the hospital will maximise the
existing space for growth in clinical services, leading up to the opening of the hospital extension in 2016.
Meanwhile, the hospital will be stepping up its investment in advanced technologies to continually
maintain its position as a premier private hospital delivering high quality healthcare.

The Group also completed the acquisition of a 3-storey office building (formerly POSB Building) at
Holland Village from DBS Bank Ltd on 14 January 2014. The building will be redeveloped into a 5-storey
commercial building consisting of medical clinics, retail shops, restaurants and car park. It will pave the
way for the Group to expand medical and specialist services in an attractive location which can provide a
good catchment for local and expatriate patients when the project is completed in 2016.

In 2013, RafflesMedical saw further growth and expansion of our medical centres. New clinics were
opened at Whitesands, Bedok Mall and Jurong Point to serve new population regions in Singapore with
medical and dental services. The premises at Jurong East regional centre was also expanded to provide a
more comprehensive range of services to our patients at the new Jurong Gateway commercial hub.

RafflesHealthScreeners and RafflesDental both saw new and more medical equipment introduced to
continue to improve patient care and patients’ experience in the areas of imaging and dental restoration
services respectively.

RafflesMedical continued to increase its corporate clientele portfolio in the hoteling, manufacturing, food
& beverage, education as well as financial & governmental sectors and continued to benefit from the
government initiated Community Health Assistance Scheme (“CHAS”). Most of RafflesMedical’s clinics
are accredited to serve Singaporeans under the CHAS. RafflesDental’s clinics have also joined the panel
of CHAS clinics in 2013.

Together with the Group’s Corporate Services, RafflesHealthinsurance launched a new marketing
model, “RafflesOne”. This is a fully integrated, seamless healthcare and healthcare financing proposition
for corporate customers, in the area of Employee Benefits Solution. This model has already yielded
positive results, leading to the acquisition of several major accounts since its launch in the second half of
2013.

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10. A commentary at the date of the 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 (Cont’d).

RafflesHealthinsurance also achieved a good take up rate for RHI-Bupa regional and global health
products from Aviva’s policyholders who were affected by the latter’s decision to withdraw this portfolio
from Singapore from 1 December 2012. Overall in 2013, RafflesHealthinsurance achieved strong
revenue growth from expansion of group employee benefits business and RHI-Bupa regional and global
health insurance business.

The healthcare landscape will remain competitive with new public and private hospitals being developed in
Singapore and the region. The more measured pace of economic growth in China and Singapore may
have a dampening effect on healthcare demand. However, the Group will continue to be vigilant and to
proactively respond to new opportunities that may arise.

Barring unforeseen circumstances, the Directors are optimistic that the Group will continue to grow for the
year 2014.

11. Dividend

(a) Current Financial Period Reported On

Any dividend declared for the current financial period reported on? Yes

Name of Dividend Interim

Dividend Type Ordinary
Dividend Amount per Share (in cents) 1.0 cent per ordinary share (one tier tax)
Tax Rate Tax Exempt

Name of Dividend Proposed Final

Dividend Type Ordinary
Dividend Amount per Share (in cents) 4.0 cents per ordinary share (one tier tax)

Tax Rate Tax Exempt

Page 13 of 17
11. Dividend (Cont’d)

(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 Interim

Dividend Type Ordinary
Dividend Amount per Share (in cents) 1.0 cent per ordinary share (one tier tax)
Tax Rate Tax Exempt

Name of Dividend Final

Dividend Type Ordinary
Dividend Amount per Share (in cents) 3.5 cents per ordinary share (one tier tax)
Tax Rate Tax Exempt

(c) Date payable

The Directors are pleased to recommend a final dividend of 4.0 cents per share amounting
approximately to S$22.2 million in respect of the financial year ended 31 December 2013 for approval
by the shareholders at the next Annual General Meeting to be convened on 23 April 2014. Including
the interim dividend of 1.0 cent per share paid in August 2013, the total dividends for the financial year
ended 31 December 2013 would amount to 5.0 cents per share, an increase of 0.5 cent (11.1%) as
compared to financial year ended 31 December 2012.

The date of payment of the proposed dividends, if approved at the Annual General Meeting, will be
announced at a later date.

(d) Books closure date

The books closure date will be announced at a later date.

(e) Scrip dividend scheme

The Scrip Dividend Scheme will be applicable to the final dividend. The issue price of a new share shall
not be set at more than 10% discount to, nor shall it exceed the average of the last dealt prices of a
share on the SGX-ST for each of the market days during the price determination period (being the
period commencing on the day on which the shares are first quoted ex-dividend and ending on the
books closure date to determine the entitlements to the final dividend). Further details will be
announced at a later date.

12. If no dividend has been declared/recommended, a statement to that effect.

Not applicable.

13. If the group has obtained a general mandate from shareholders for Interested Parties
Transactions (IPTs), the aggregate value of such transactions as required under Rule 920(1)(a)(ii).
If no IPT mandate has been obtained, a statement to that effect.

The Company did not obtain a general mandate from shareholders for IPTs.
Page 14 of 17
PART II - ADDITIONAL INFORMATION REQUIRED FOR FULL YEAR ANNOUNCEMENT
(This part is not applicable to Q1, Q2, Q3 or Half Year Results)

14. Segmented 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.

Business Segments

Healthcare Hospital Investment

services services holdings Total
2013 S$'000 S$’000 S$'000 S$'000

Revenue and expenses

External revenue 124,481 231,302 10,285 366,068
Inter-segment revenue 1,657 14,758 8,664 25,079
Finance expenses (34) - (15) (49)
Depreciation of property, plant and
(2,286) (3,332) (177) (5,795)
equipment
Impairment of intangible assets - - - -
Reportable segment profit before tax 10,603 56,829 9,891 77,323
Reportable segment assets 511,212 120,329 245,831 877,372
Capital expenditure 3,141 4,245 1,722 9,108
Reportable segment liabilities 132,593 54,086 203,383 390,062

Healthcare Hospital Investment

services services holdings Total
2012 S$'000 S$’000 S$'000 S$'000

Revenue and expenses

External revenue 117,186 205,753 11,045 333,984
Inter-segment revenue 2,542 11,411 8,398 22,351
Finance expenses (37) - (198) (235)
Depreciation of property, plant and
(2,026) (3,249) (158) (5,433)
equipment
Impairment of intangible assets (152) - - (152)
Reportable segment profit before tax 10,240 47,720 11,095 69,055
Reportable segment assets 426,775 103,829 339,521 870,125
Capital expenditure 3,972 5,465 1,500 10,937
Reportable segment liabilities 120,658 49,679 299,924 470,261

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14 Business Segments (Cont’d)

Reconciliation of reportable segment revenues, profit or loss, assets and liabilities and other
material items
2013 2012
S$'000 S$'000
Revenues
Total revenue for reportable segments 366,068 333,984
Elimination of inter-segment revenue (25,079) (22,351)
Consolidated revenue 340,989 311,633

Profit or loss
Total profit for reportable segments 77,323 69,055
Adjustment for depreciation of property, plant and equipment (2,473) (2,470)
Gain on disposal of a subsidiary 20,388 -
Consolidated profit before tax 95,238 66,585

Assets
Total assets for reportable segments 877,372 870,125
Elimination of inter-segment assets (303,937) (375,480)
Consolidated total assets 573,435 494,645

Liabilities
Total liabilities for reportable segments 390,062 470,261
Elimination of inter-segment liabilities (302,943) (378,034)
Unallocated amounts – current and deferred tax liabilities 12,523 13,002
Consolidated total liabilities 99,642 105,229

Other material items

Reportable
segment Consolidated
totals Adjustment totals
S$'000 S$'000 S$'000
2013
Depreciation of property, plant and equipment 5,795 2,473 8,268

2012
Depreciation of property, plant and equipment 5,433 2,470 7,903

The hospital building at North Bridge Road is owned by a subsidiary and classified as Investment Property
in the subsidiary’s standalone financial statements. In accordance with the Group’s accounting policies,
investment property is measured at fair value and not depreciated.

For the preparation of the consolidated financial statements, the hospital building is reclassified from
Investment Property to Property, Plant and Equipment as the building is used in the supply of hospital
services by the Group. Accordingly, the carrying value of the hospital building is depreciated over its useful
live in the consolidated financial statements of the Group.

The amount of $2,473,000 (2012: $2,470,000) relates to the depreciation of the hospital building for the
year ended 31 December 2013.

Page 16 of 17
15. In the review of performance, the factors leading to any material changes in contributions to
turnover and earnings by the business or geographical segments.

Please refer to Item 8.

16. A breakdown of sales.

Group
2013 2012 Change
S$’000 S$’000 %

16(a) Revenue reported for first half year 167,928 149,850 12.1

Operating profit after tax before deducting non-

16(b) 28,044 24,183 16.0
controlling interests reported for first half year

16(c) Revenue reported for second half year 173,061 161,783 7.0

Operating profit after tax before deducting non-

16(d) 57,251 33,026 73.4
controlling interests reported for second half year

17. A breakdown of the total annual dividend (in dollar value) for the issuer’s latest full year and its
previous full year.

2013 2012
S$’000 S$’000
Interim Ordinary Dividend 5,535 5,438

Final Ordinary Dividend 22,154 * 19,163

Total 27,689 24,601

* Financial year 2013 final proposed ordinary dividend, which is based on estimated number of shares
outstanding as at the end of the financial year.

18. Disclosure of person occupying a managerial position in the issuer or any of its principal
subsidiaries who is a relative of a director or chief executive officer or substantial shareholder of
the issuer pursuant to Rule 704(13). If there are no such persons, the issuer must make an
appropriate negative statement.

The Board of Directors hereby confirms that none of the personnel occupying managerial positions in the
Company or any of its principal subsidiaries is a relative of a director, chief executive officer or substantial
shareholder of the Company.

BY ORDER OF THE BOARD

Kimmy Goh
Company Secretary
24 February 2014

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