Investor Relations

Full Year Financial Statement And Dividend Announcement

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

1 (a)(i) Income Statements for the year ended 31 December

	The Group
	2002	2001	+/(-)
	S$'000	S$'000	%
Turnover	491,216	497,583	(1.3)
Cost of services	(457,967)	(475,857)	(3.8)
Gross profit	33,249	21,726	53.0
Marketing expenses	(5,213)	(4,562)	14.3
Administrative expenses	(10,561)	(9,449)	11.8
Gain on disposal of associated company	2,678	-	n/m
Other operating income	433	351	23.4
Profit / (loss) from operations	20,586	8,066	n/m
Finance income	570	1,831	(68.9)
Finance expense	(4,577)	(6,118)	(25.2)
Foreign exchange gain / (loss)	(3,781)	2,984	n/m
Operating profit	12,798	6,763	89.2
Share of results of associated company	512	689	(25.7)
Profit before tax	13,310	7,452	78.6
Tax	(421)	(439)	(4.1)
Profit after tax	12,889	7,013	83.8
Minority interests	(264)	38	n/m
Net Profit attributable to shareholders	12,625	7,051	79.1

n.m. = not meaningful


1 (a)(ii) Notes to the Income Statements

		The Group
		2002	2001	+/(-)
(A)	Investment income	0	0	n/m
(B)	Other income including interest income	1,003	2,182	(54.0)
(C)	Interest on Borrowings	(4,577)	(6,118)	(25.2)
(D)	Depreciation and amortisation	(16,817)	(15,531)	8.3
(E)	Provision for doubtful debts and Bad Debt written off, net	(860)	(403)	113.40
(F)	Impairment in value of investments	(3)	-	n/m
(G)	Foreign exchange gain / (loss)	(3,781)	2,984	n/m
(H)	Adjustment for under provision for tax in prior years	41	291	(86)
(I)	Profit on sale of investments, properties and plants, property and equipment	29	-	n/m
(J)	Gain on disposal of associated company	2,678	-	n/m

1(b)(i) A balance sheet (for the issuer and group), together with a comparative statement as at the end of the immediately preceding financial year

Balance Sheet as at 31 December

	The Group		The Company
	2002	2001	2002	2001
	S$'000	S$'000	S$'000	S$'000
Share capital and reserves
Share capital (457,675,000 shares @ S$0.10 each)	45,768	45,768	45,768	45,768
Share premium	53,432	53,432	53,432	53,432
Share redemption reserve	504	504	504	504
Capital reserve	267	267	-	-
Translation reserve	5,788	10,904	-	-
Accumulated profits	85,920	74,668	63,055	61,264
	191,679	185,543	162,759	160,968
Minority interests	1,368	484	-	-
	193,047	186,027	162,759	160,968
Subsidiaries	-	-	64,582	62,657
Associated company	-	3,153	-	-
Club membership	59	63	54	54
Fixed assets	163,584	178,649	21,486	25,348
Deferred charges	2,547	3,798	497	1,651
Current assets
Stocks, less provision for stock obsolescence	1,013	746	-	-
Trade debtors	70,261	78,109	68,440	75,909
Other debtors, deposits and prepayments	6,022	5,477	5,296	4,965
Due from immediate holding company (trade)	2,599	698	2,478	486
Due from subsidiaries (trade)	-	-	379	941
Due from subsidiaries (non-trade)	-	-	2,123	664
Due from affiliated company (trade)	80	2	-	-
Securities held for trading	13,205	-	13,205	-
Call and fixed deposits	24,963	30,184	23,476	29,073
Cash and bank balances	18,508	14,527	10,273	8,641
	136,651	129,743	125,670	120,679
Current liabilities
Trade creditors	30,911	33,160	27,438	30,095
Other creditors and accruals	12,582	13,295	11,023	11,121
Due to immediate holding company (non-trade)	5	-	-	-
Due to affiliated company (trade)	65	58	53	50
Due to related companies (non-trade)	804	1,386	-	-
Due to minority shareholders of a subsidiary (non-trade)	224	-	-	-
Hire purchase creditors - current portion	55	88	39	63
Bank term loans (secured) - current portion	15,200	22,085	2,423	2,577
Provision for tax	308	610	234	566
	60,154	70,682	41,210	44,472
Net current assets	76,497	59,061	84,460	76,207
Non-current liabilities
Due to subsidiary (non-trade)	-	-	8,143	2,166
Hire purchase creditors - non current portion	203	304	177	206
Bank term loans (secured) - non current portion	49,437	58,393	-	2,577
	193,047	186,027	162,759	160,968

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



Details of any collateral

The Group's borrowings are secured by ways of:

• Corporate guarantee from Company's immediate holding Company, PT Samudera Indonesia Tbk.
• Corporate guarantee from the Company
• Legal mortgages over certain vessels of the Company and its subsidiaries
• Legal charges over certain bank accounts
• Assignment of income derived from certain charter hire contracts of subsidiaries
• Assignment of insurance of certain vessels of the subsidiaries
• Fiduciary assignment of certain receivables of a subsidiary

1(c) A cash flow statement (for the group), together with a comparative statement for the corresponding period of the immediately preceding financial year

Consolidated Cash Flow Statement for the year ended 31 December

	2002	2001
	S$'000	S$'000
Cash flows from operating activities
Profit before tax	13,310	7,452
Adjustments:
Amortisation of deferred charges	3,016	2,672
Depreciation of fixed assets	13,800	12,860
Fixed assets written off	34	-
Gain in disposal of associated company	(2,678)	-
Gain on disposal of fixed assets	(29)	-
Interest expense	4,577	6,119
Interest income	(570)	(1,831)
Provision for doubtful trade debts	878	403
Provision of diminution in value of club membership	3	-
Share of profit of associated company	(512)	(689)
Unrealised gain on investment securities held for trading	(50)	-
Write back of provision for doubtful trade debts	(21)	-
Operating profit before working capital changes	31,758	26,986
(Increase) decrease in:
Stocks	(320)	94
Trade debtors	6,877	(17,658)
Other debtors, deposits and prepayments	(480)	(339)
Due from immediate holding company	(1,900)	(233)
Due from affiliated company	(80)	283
Increase (decrease) in:
Trade creditors	(2,063)	4,330
Other creditors and accruals	(666)	(793)
Due to related companies, net	(513)	679
Due to affiliated company	8	(151)
Due to immediate holding company	5	(18)
Due to minority shareholders of a subsidiary	230	-
Cash generated from operations	32,856	13,180
Interest paid	(4,577)	(6,118)
Income tax paid	(422)	(621)
Net cash generated from operating activities	27,857	6,441
Cash flows used in investing activities
Interest income received	570	1,831
Proceeds from disposal of fixed assets	190	-
Purchase of fixed assets	(7,832)	(9,450)
Additions to deferred charges	(1,893)	(2,516)
Purchase of investment securities	(13,155)	-
Proceeds from disposal of associated company	5,904	-
Dividend received from associated company	27	26
Cash and cash equivalents subject to restriction	(920)	(1,330)
Net cash used in investing activities	(17,109)	(11,439)
Cash flows from financing activities
Share buyback	-	(1,177)
Repayment of hire purchase liabilities	(274)	(92)
Proceeds from loans	10,251	21,780
Repayment of loans	(21,861)	(29,064)
Dividend paid	(1,373)	(2,869)
Proceeds from issue of shares to minority shareholders of subsidiaries	657	153
Net cash used in financing activities	(12,600)	(11,269)
Net decrease in cash and cash equivalents	(1,852)	(16,267)
Effect of exchange rate changes on cash and cash equivalents	(45)	418
Cash and cash equivalents at the beginning of the year	38,665	54,514
Cash and cash equivalents at the end of the year before cash and cash equivalents subject to restriction	36,768	38,665
Cash and cash equivalents subject to restriction	6,703	6,046
Cash and cash equivalents at the end of the year	43,471	44,711

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

Statements of Changes in Equity for the year ended 31 December 2002

Group FY2002	Share capital	Share premium	Share redemption reserve	Capital reserve	Translation reserve	Accumulated profits	TOTAL
	S$'000	S$'000	S$'000	S$'000	S$'000	S$'000	S$'000
Balance as at 31 Dec 2001	45,768	53,432	504	267	10,904	74,668	185,543
Currency translation	-	-	-	-	(5,116)	-	(5,116)
Net profit for the period	-	-	-	-	-	12,625	12,625
Dividend paid	-	-	-	-	-	(1,373)	(1,373)
Balance as at 31 Dec 2002	45,768	53,432	504	267	5,788	85,920	191,679
Group FY2001	Share capital	Share premium	Share redemption reserve	Capital reserve	Translation reserve	Accumulated profits	TOTAL
	S$'000	S$'000	S$'000	S$'000	S$'000	S$'000	S$'000
Balance as at 31 Dec 2000	46,272	53,432	-	267	5,724	71,662	177,357
Share buyback	(504)	-	504	-	-	(1,177)	(1,177)
Currency translation	-	-	-	-	5,180	-	5,180
Net profit for the period	-	-	-	-	-	7,051	7,051
Dividend paid	-	-	-	-	-	(2,868)	(2,868)
Balance as at 31 Dec 2001	45,768	53,432	504	267	10,904	74,668	185,543
Company FY2002			Share capital	Share premium	Share redemption reserve	Accumulated profits	TOTAL
			S$'000	S$'000	S$'000	S$'000	S$'000
Balance as at 31 Dec 2001			45,768	53,432	504	61,264	160,968
Net profit for the period			-	-	-	3,164	3,164
Dividend paid			-	-	-	(1,373)	(1,373)
Balance as at 31 Dec 2002			45,768	53,432	504	63,055	162,759
Company FY2001			Share capital	Share premium	Share redemption reserve	Accumulated profits	TOTAL
			S$'000	S$'000	S$'000	S$'000	S$'000
Balance as at 31 Dec 2000			46,272	53,432	-	64,562	164,266
Share buyback			(504)	-	504	(1,177)	(1,177)
Net profit for the period			-	-	-	747	747
Dividend paid			-	-	-	(2,868)	(2,868)
Balance as at 31 Dec 2001			45,768	53,432	504	61,264	160,968

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 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 financial year ended 31 December 2002, there was no change in the Company's share capital (2001: 457,675,000).


2. Whether the figures have been audited, or reviewed and in accordance with which standard (e.g. the Singapore Standard on Auditing 910 (Engagements to Review Financial Statements), or an equivalent standard)

The figures have not been audited nor reviewed by the auditors.


3. Where the figures have been audited or reviewed, the auditors' report (including any qualifications or emphasis of matter)

Not Applicable.


4. Whether the same accounting policies and methods of computation as in the issuer's most recently audited annual financial statements have been applied

Except as disclosed in Note 5 below, the Group has applied the same accounting policies and methods of computation in the financial statements for the current reporting period as the audited financial statements for the year ended 2001.


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

On 1 January 2002, the Group adopted SAS 12 (2001), Income Taxes. The adoption of this standard has not given rise to any adjustments to the opening balances of accumulated profits of the prior and current year or to changes in comparative figures.

Under SAS 12 (2001), deferred tax is now recognised for all taxable temporary differences. Previously, deferred tax was provided on account of timing differences only to the extent that a tax liability or asset was expected to materialise in the foreseeable future. Arising from the adoption of SAS 12(2001), the Group commenced to recognise deferred tax assets for all deductible temporary differences, when it is probable that sufficient taxable profits will be available against which the deductible temporary differences can be utilised.


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

	Group Figures
	Latest Year	Previous Year
Earnings per ordinary share for the year based on net profit attributable to shareholders:
(i) Based on weighted average number of ordinary shares in issue	2.76 cents	1.54 cents
(ii) On a fully diluted basis	2.76 cents	1.54 cents

7. Net asset value (for the issuer and group) per ordinary share based on issued share capital of the issuer at the end of the (a) current period reported on and (b) immediately preceding financial year

	Group Figures
	Latest Year	Previous Year
Net asset value backing per ordinary share based on existing issued share capital as at the end of the period reported on:
(i) Based on weighted average number of ordinary shares in issue	41.88 cents	40.54 cents

8. A review of the performance of the group, to the extent necessary for a reasonable understanding of the group's business. The review must discuss 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. It must also discuss any material factors that affected the cash flow, working capital, assets or liabilities of the group during the current financial period reported on

Group's turnover decreased by 1.3% from about S$ 497.6 million to S$ 491.2 million which was mainly due to freight rate deterioration and decrease in volume lifting for Container Shipping business by about 3%.

A new acquired chemical tanker which was put into operation in August 2002, contributed to an increase in revenue of the Industrial Shipping by about 3% from S$ 35.8 million to S$ 36.7 million.

The turnover of the Forwarding and Others business increased by about 50.4% which mainly contributed by Samudera Emirates Shipping LLC, a subsidiary in Dubai as a result of its full year operation.

Although total turnover decreased, the cost of sales decreased at a higher rate due to extensive pursue on cost efficiency programmes throughout the entire Group. Charter hire costs reduced as a result of contract re-negotiation and the rationalisation of container vessels' space with partners through joint services and slot swap agreements. Lower charges from PSA had resulted in the reduction of the stevedoring expenses of the Company. Decrease in container expenses is a result of close monitoring, renewal of container fleet with a more competitive cost and the improvement in container deployment.

Total cost of sales of Industrial Shipping increased slightly by about 2% mainly due to bunker and port charges. However, the increase of 2% is still lower than the growth of Industrial Shipping turnover of 3%.

Despite the decrease in turnover, the Group recorded net profit of S$ 12.6 million, an increase of 79.1% from S$ 7.1 million in year of 2001 due to the cost efficiency mentioned above and;

a)	Reduction in finance expenses mainly due to the principal repayment of Group's loan during the financial year.
b)	Gain from disposal of associated company amounted to S$ 2.7 million has added on to the net profit of the Group in the year 2002.

were offset by;

a)	Reduction in finance income which is mainly due to a lower bank interest rate in year 2002 as compared to the previous year
b)	Foreign exchange loss of S$3.8 million as the US Dollar depreciated against Singapore Dollar compared to the foreign exchange gain of S$ 3.0 million in the previous year.

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

Not applicable


10. A commentary at the date of the announcement of the competitive conditions of the industry in which the group operates and nay known factors or events that may affect the group in the next reporting period and the next 12 months

Container shipping
The Company expects to maintain its performance by consolidating its business networks, entering more combination of joint operation and slot swap with partners to achieve a better efficiency. As the Company is expecting freight rate pressure in some services, cost efficiency programs remain the key point to maintain the profitability.

Industrial Shipping
In industrial shipping, a vessel acquired in August 2002 will have a full year impact. The other vessel acquired in February 2003 will also give a positive contribution to the Group's turnover. Foremost Maritime Pte Ltd entered into an agreement to build 3 units of special barges to handle a coal transportation and it is expected to complete in the second half of 2003.

Another contribution will come from PT Samudera Shipping Services, a subsidiary, due to the purchase of four vessels of which started in operation in March 2003.

Forwarding and Others
Samudera Shipping Line Ltd and Jardine Matheson (Malaysia) Sdn Bhd formed a joint venture company in Malaysia at the end of 2002 to carry on the business as general shipping agents in that country. The main aim is to raise the Company's profile in Malaysia, to increase the Company's target market share for both carrier-owned container as well as shipper-owned container shipping services and to enable the Company to monitor its business better.

Another subsidiary, Silkargo LLC, was incorporated in the Dubai, United Arab Emirates in the beginning of 2003 to provide freight forwarding, cargo handling, warehousing and distribution business.

The Gulf war which can hurt the global economy may cause the export-import cargo volume lower and increase certain costs such as insurance, bunker and charter hire expenses. These factors may adversely affect the profit of the Company and the Group.


11. Dividend

(a) Current Financial Period Reported On

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

Name of Dividend	Final
Dividend Type	Cash
Dividend Rate	0.50 cents per ordinary share (less tax)
Par value of shares	10 cents
Tax Rate	0%

(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	Final
Dividend Type	Cash
Dividend Rate	0.30 cents per ordinary share (less tax)
Par value of shares	10 cents
Tax Rate	0%

(c) Date payable

Notice will be given at a later date on the payment date of dividend.

(d) Books closure date

Notice of closure of books for determining shareholders' entitlement to the dividend together with the date of dividend payment will be announced at a later date.


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


PART II - ADDITIONAL INFORMATION REQUIRED FOR FULL YEAR ANNOUNCEMENT

(This part is not applicable to Q1, Q2, Q3 or Half Year Results)

13. 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

The Group is organized into two main operating divisions, namely:

	-	Container shipping
	-	Industrial shipping

Other operations include forwarding, agency and other services.

Inter-segment pricing is on the terms agreed between parties.

	Container Shipping	Industrial Shipping	Forwardng & Others (*)	Eliminations	Group
	S$'000	S$'000	S$'000	S$'000	S$'000
FY 2002
Turnover
- External customers	448,610	36,750	5,856	-	491,216
- Inter-segment	401	-	2,627	(3,028)	-
	449,011	36,750	8,483	(3,028)	491,216
Segment results	6,408	10,828	2,474	876	20,586
Financial income (expenses) - net	(3,148)	(4,606)	(34)	-	(7,788)
Share of profit of associated company	-	-	512	-	512
Tax	(95)	(68)	(257)	-	(420)
Minority interests	-	(74)	(191)	-	(265)
Net profit for the year	3,165	6,080	2,504	876	12,625
Segment assets	145,242	156,145	1,454	-	302,841
Total liabilities	41,387	67,789	618	-	109,794
Capital expenditure	537	7,250	188	-	7,975
Depreciation and amortisation	5,436	11,179	201	-	16,816
Other non-cash expenses	848	-	67	-	915
	Container Shipping	Industrial Shipping	Forwarding & Others (*)	Eliminations	Group
	S$'000	S$'000	S$'000	S$'000	S$'000
FY 2001
Turnover
- External customers	457,721	35,756	4,106	-	497,583
- Inter-segment	855	-	1,536	(2,391)	-
	458,576	35,756	5,642	(2,391)	497,583
Segment results	(2,957)	10,977	(600)	646	8,066
Financial income (expenses) - net	4,062	(5,374)	9	-	(1,303)
Share of profit of associated company	-	-	689	-	689
Tax	(358)	(62)	(19)	-	(439)
Minority interests	-	(23)	61	-	38
Net profit for the year	747	5,518	140	646	7,051
Segment assets	146,126	164,579	1,548	-	312,253
Investment in associated company	-	-	3,153	-	3,153
Total assets	146,126	164,579	4,701	-	315,406
Total liabilities	47,255	81,478	646	-	129,379
Capital expenditure	240	8,726	484	-	9,450
Depreciation and amortisation	5,111	10,296	124	-	15,531
Other non-cash expenses	354	-	49	-	403

(*) Including agency business.

Geographical Segment
Container shipping, forwarding and others (**)

	Turnover
	2002	2001
	S$ 000	S$ 000
Indonesia	200,490	212,871
South East Asia (excluding Indonesia)	76,133	82,527
Middle East and Indian Sub-continent	137,751	124,192
Far East (including China, Hong Kong)	37,882	37,625
Others	2,210	4,612
Total turnover	454,466	461,827

(**) The Directors believe it could be inaccurate to analyze the results by geographical segment because certain costs cannot be meaningfully allocated to the different routes as the vessels do not operate on fixed routes. For the Industrial Shipping, charterers of the Group's tankers have the discretion to operate within a wide trading area and are not constrained by a specific sea route.


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

The review of performance by the business has been explained in item 8 above.

In order for the Group to reduce dependency on certain trade, the Group has diversified its business geographically into other region. As the result, the Group experienced continuous growth at Middle East and Indian Sub-continent.

The turnover of Indonesia and South East Asia (excluding Indonesia) decreased due to more intense competition in this region.

The turnover growth in the Middle East and Indian Sub-continent is mainly due to the Middle East trade, whereby, after the Company set up its own subsidiary acting as general agent of the Company, the subsidiary could manage to improve and enchance the services to customers resulting in increase in container volume and turnover in this region.

Reduction in turnover of Others segment is due to the consolidation and restructuring of a subsidiary.


15. A breakdown of sales

	Group			Company
	2002	2001	Change	2002	2001	Change
	S$'000	S$'000	%	S$'000	S$'000	%
Sales reported for first half year	251,108	242,340	3.6	230,962	223,158	3.5
Operating profit / (loss) before minority interests reported for first half year	841	8,063	(89.6)	(2,522)	5,021	n/m
Sales reported for second half year	240,108	255,243	(5.9)	218,049	235,418	(7.4)
Operating profit / (loss) before minority interests reported for second half year	12,048	(1,050)	n/m	5,686	(4,274)	n/m

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

Total Annual Dividend (Refer to Para 16 of Appendix 7.2 for the required details)

	Latest Full Year (S$'000)	Previous Full Year(S$'000)
Ordinary	2,288	1,373
Preference	0	0
Total:	2,288	1,373

17. Interested Person Transactions

The aggregate value of interested person transactions conducted pursuant to the shareholders' mandate obtained in accordance with Chapter 9 of the SGX-ST's listing manual were as follows:

	The Group
	2002	2001
	$	$
Expenses
Holding Company, PT Samudera Indonesia Tbk
Management fee	694,630	691,872
Commissions	3,917,096	3,422,534
Charter hire	-	1,229,655
Related companies
Management fee (PT Tankindo Perdana)	61,007	70,541
Charter hire (PT Pali Hota Dayaka)	1,759,037	1,827,513
Affiliated company, PT Samudera Denholm Ship Management
Ship management fee	1,099,923	1,077,507
	7,531,693	8,319,622

No other material contracts to which the Company or any subsidiary is a party and which involve directors' interest subsisted at the end of the financial year.