FEDS — Annual Report 2013

Sep 5, 2013

FAR EASTERN DEPARTMENT STORES, LTD

CONSOLIDATED BALANCE SHEETS

June 30, 2013, Dec. 31, 2012, June 30, 2012, and Jan. 1, 2012

(In thousands of New Taiwan Dollars, Expect Par Value)

C o d e 1100 1110 1125 1147 1150 1170 1180 1200 1220 130X 1429 1412 1460 1470 11XX 1510 1523 1543 1546 1550 1600 1760 1780 1840 1975 1985 1990 15XX 1XXX C o d e 2100 2110 2150 2170 2180 2219 2230 2250 2313 2310 2321 2322 2399 21XX 2530 2540 2550 2640 2570 2670 25XX 2XXX 3110 3150 3100 3200 3310 3320 3350 3300 3400 3500 31XX 36XX 3XXX	Assets CURRENT ASSETS Cash and cash equivalents Financial assets at fair value through profit or loss －current Available-for-Sales financial Assets－current Bond investments without active mark-current Notes receivable Accounts receivable Accounts receivable due from related parties Other receivables Current tax asset Inventories Prepayments Prepayments for lease Non-current assets classified as held for sale Other current assets Total current assets NON-CURRENT ASSETS Financial assets at fair value－through profit or loss －non-current Available-for-sale financial assets－non-current Financial assets carried at cost－non-current Bond investments without－active mark－ non-current Investments accounted for using equity method Property, plant and equipment Investment property Intangible assets Deferred tax assets Prepaid pension costs Prepayments for long-term lease Other non-current assets Total non-current assets Total LIBILITIES AND STOCKHOLDERS’ EQUITY CURRENT LIABILITIES Short-term borrowings Short-term notes and bills payable Notes payable Accounts payable Notes and accounts payable to related parties Other payables Current tax liabilities Current provisions Unearned revenue-current Advance receipts Bonds, current portion long-term borrowings, current portion Other current liability Total current liability NON-CURRENT LIABILITIES Bonds payable Long-term borrowings Non-current provisions Accrued pension liabilities Deferred tax liabilities Other non-current liabilities Total non-current liabilities Total liabilities EQUITY ATTTRIBUTABLE TO OWNERS OF PARENT Share capital Ordinary share Stock dividend to be distributed Total capital stock Capital surplus: Retained earnings Legal reserve Special reserve Unappropriated earnings Total retained earnings Other equity interest Treasury Shares Total equity attributable to owners of parent Non-controlling interests Total equity Total		2013/6/30	％ 8 - 1 - - 1 - 2 - 2 1 - - - 15 1 4 1 1 8 49 2 7 1 - 9 2 85 100 8 4 - 13 - 7 - - - 7 3 1 - 43 1 19 - 1 1 3 25 68 13 - 13 4 2 2 2 6 3 - 26 6 32 100		2012/12/31	％ 14 - 1 1 - 1 - 1 - 3 1 - - - 22 1 5 1 - 7 45 2 6 1 - 8 2 78 100 8 4 - 16 - 7 1 - - 6 1 2 - 45 3 19 - - 1 2 25 70 12 - 12 3 2 2 2 6 3 - 24 6 30 100		2012/6/30	％ 9 - 1 3 - 1 - - - 2 1 - - - 17 1 5 1 - 8 47 2 7 1 - 9 2 83 100 10 4 - 12 - 9 1 - - 6 - 2 - 44 4 18 - 1 1 2 26 70 12 - 12 3 2 2 2 6 3 - 24 6 30 100		2012/1/1
			Amount $ 8,184,635 372,908 524,236 355,678 13,774 1,180,043 36,090 1,688,730 522,039 2,603,699 601,307 319,375 - 84,840 16,487,354 1,017,199 4,652,078 776,313 548,884 9,052,068 52,390,105 2,066,234 7,720,553 942,822 219,960 9,654,543 2,025,663 91,066,422 $ 107,553,776 $ 8,399,110 3,691,579 48,102 13,477,804 82,141 7,961,984 178,836 4,135 86,065 7,518,615 3,674,149 984,000 223,738 46,330,258 1,000,000 20,962,255 30,348 538,383 1,463,643 2,774,846 26,769,475 73,099,733 13,698,797 410,964 14,109,761 3,498,174 2,358,917 1,931,285 2,373,480 6,663,682 3,371,766 97,110 ) 27,546,273 6,907,770 34,454,043 $ 107,553,776			Amount $ 16,794,103 361,327 511,192 1,008,193 31,195 1,470,752 50,977 492,525 291,016 3,160,935 846,206 318,565 - 70,694 25,407,680 1,013,913 5,468,512 718,583 632,667 8,811,079 52,946,768 2,089,416 7,711,555 1,109,266 222,666 9,837,349 1,902,572 92,464,346 $ 117,872,026 $ 9,613,446 4,648,862 198,522 18,687,359 170,962 8,439,193 563,223 16,351 63,770 7,449,114 1,200,000 1,600,000 168,630 52,819,432 3,454,937 21,992,207 30,213 545,253 1,446,269 2,710,010 30,178,889 82,998,321 13,698,797 - 13,698,797 3,498,174 2,189,631 1,931,285 3,086,960 7,207,876 3,773,795 97,110 ) 28,081,532 6,792,173 34,873,705 $ 117,872,026			Amount $ 9,841,445 356,937 474,600 2,815,114 39,971 1,029,135 34,120 471,435 267,623 2,549,365 727,271 318,923 - 90,649 19,016,588 1,010,314 5,254,399 803,601 481,343 8,775,827 52,986,192 2,112,753 7,697,925 1,027,980 369,470 10,031,587 2,027,110 92,578,501 $ 111,595,089 $ 10,853,849 4,813,635 77,668 13,207,433 84,814 9,940,101 608,029 - 50,241 7,178,657 - 2,108,000 168,578 49,091,005 4,635,873 20,119,645 30,078 449,823 1,427,612 2,669,513 29,332,544 78,423,549 13,171,921 526,876 13,698,797 3,498,174 2,189,631 1,931,285 2,212,656 6,333,572 3,463,871 97,110 ) 26,897,304 6,274,236 33,171,540 $ 111,595,089			Amount $ 16,365,201 303,286 471,920 531,768 40,469 1,242,025 101,458 300,133 273,675 2,990,885 976,100 319,201 1,128,997 99,740 25,144,858 1,006,635 5,040,384 680,253 233,084 8,733,465 51,862,701 1,002,323 7,697,855 966,963 369,869 10,225,303 2,048,808 89,867,643 $ 115,012,501 $ 10,334,680 3,636,195 394,705 17,673,048 157,796 10,138,084 1,152,903 - 81,921 6,778,184 - 3,020,717 303,732 53,671,965 4,616,958 18,490,187 29,943 461,198 1,404,405 2,625,517 27,628,208 81,300,173 13,171,921 - 13,171,921 3,498,174 1,975,319 1,931,285 3,705,232 7,611,836 3,218,236 97,110 ) 27,403,057 6,309,271 33,712,328 $ 115,012,501	％
		(			(			(			(		14 - 1 1 - 1 - - - 3 1 - 1 - 22 1 4 - - 8 45 1 7 1 - 9 2 78 100 9 3 - 16 - 9 1 - - 6 - 3 - 47 4 16 - 1 1 2 24 71 11 - 11 3 2 2 3 7 3 - 24 5 29 100

FAR EASTERN DEPARTMENT STORES, LTD

Consolidated statement of comprehensive income

From Apr. 1 to June 30, 2013 and 2012, and Year ended June 30, 2013 and 2012

(In thousands of New Taiwan Dollars, Expect Par Value)

		From Apr. 1	to			From Apr. 1	From Apr. 1	to			Year ended June	Year ended June	Year ended June	Year ended June			Year ended June	Year ended June	Year ended June	Year ended June
		June 30,2013				June 30,2012						30,2013						30,2012
C o d e		Amount	％			Amount		％				Amount		％				Amount		％
4000	REVENUES $10,917,147		100		$11,103,588			100			$22,414,361			100			$22,778,723			100
5000	COSTS	5,597,241	51			5,800,012		52			11,480,591			51			11,727,464			51
5900	GROSS PROFIT	5,319,906	49			5,303,576		48			10,933,770			49			11,051,259			49
	OPERATING EXPENSES
6100	Selling	326,094	3			322,561		3				652,694		3				661,270		3
6200	General and
	administrative	4,686,952	43			4,617,784		42				9,227,040		41				9,034,973		40
6000	Total operating expenses	5,013,046	46			4,940,345		45				9,879,734		44				9,696,243		43
6900	OPERATING INCOME	306,860	3			363,231		3				1,054,036		5				1,355,016		6
	NONOPERATING INCOME
	AND EXPENSES
7190	Other income	36,633	-			31,177		-				78,152		-				69,310		-
7020	Other gains and losses	114,310	1			1,129		-				597,193		3				74,898		-
7050	Finance costs (	145,278 ) (	1 )	(		164,995	) (	1	)	(		300,949	) (	1	)	(		318,889	) (	1	)
7060	Share of profit (loss) of
	associates accounted
	for using equity
	method	113,249	1			1,301		-				129,792		-				87,450		-
7000	Total Non-operating
	income and expenses	118,914	1	(		131,388	) (	1	)			504,188		2		(		87,231	) (	1	)
7900	INCOME BEFORE INCOME TAX 425,774		4			231,843		2				1,558,224		7				1,267,785		5
7950	INCOME TAX EXPENSE	154,267	1			357,409		3				349,192		1				485,467		2
8200	NET INCOME	271,507	3	(		125,566	) (	1	)			1,209,032		6				782,318		3
	OTHER COMPREHENSIVE
	INCOME
8310	Other comprehensive
	income, before tax,
	exchange differences
	on translation	36,287	-			15,441		-				102,810		-		(		57,597	)	-
8325	Other comprehensive
	income, before tax,
	available-for-sale
	financial assets	108,740	1			28,333		-		(		481,362	) (	2	)			216,695		1
8370	Share of other
	comprehensive
	income of associates
	accounted for using
	equity method	88,461	1			22,134		-				6,227		-				63,196		-
8300	Total other
	comprehensive income, net	233,488	2			65,908		-		(		372,325	) (	2	)			222,294		1
8500	COMPREHENSIVE
	INCOME $	504,995	5	(	$	59,658	) (	1	)		$	836,707		4			$	1,004,612		4
	NET INCOME
	ATTRIBUTED TO：
8610	Owners of parent $	193,209	2	(	$	72,810	) (	1	)		$	962,673		4			$	565,804		2
8620	Non-controlling interests	78,298	-	(		52,756	)	-				246,359		1				216,514		1
8600	$	271,507	2	(	$	125,566	) (	1	)		$	1,209,032		5			$	782,318		3
	CONPREHENSIVE INCOME
	CONTRIBUTED TO：
8710	Owners of parent $	415,527	4	(	$	8,504	)	-			$	560,644		3			$	811,439		3
8720	Non-controlling interests	89,468	1	(		51,154	) (	1	)			276,063		1				193,173		1
8700	$	504,995	5	(	$	59,658	) (	1	)		$	836,707		4			$	1,004,612		4

（ Continued ）

（ Continued ）

C o d e EARNINGS PER SHARE 9750 Basic 9850 Diluted		From Apr. 1 to June 30,2013 Amount ％ $ 0.14 $ 0.14		From Apr. 1 to June 30,2012 Amount ％ $ 0.05 ) $ 0.05 )		Year ended June 30,2013 Amount ％ $ 0.71 $ 0.70		Year ended June 30,2012	Year ended June 30,2012
		Amount $ 0.14 $ 0.14		Amount $ 0.05 ) $ 0.05 )		Amount $ 0.71 $ 0.70		Amount $ 0.42 $ 0.41	％
			( (

(Concluded)

FAR EASTERN DEPARTMENT STORES, LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS YEARS ENDED June 30, 2013 AND 2012 (In thousands of New Taiwan Dollars) C o d e Year ended June 30,2013 CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES A00010INCOME BEFORE INCOME TAX $ 1,558,224 A20000 Adjustments to reconcile profit(loss) A20100 Depreciation expense 1,429,787 A20200 Amortization expense 11,677 A20300 Gain on reversal of losses on doubtful debts ( 2,735 ) A20400 Net loss (gain) on financial assets or liabilities at fair value through profit or loss ( 14,867 ) A20900 Finance costs 300,949 A29900 Reversal of provisions ( 12,216 ) A29900 Amortization of prepayments 6,962 A29900 Amortization of prepayments for lease 159,511 A29900 ReversingUnrealized purchase discounts and allowances ( 12,500 ) A29900 Reversing unearned revenue ( 63,770 ) A22300 Share of loss (profit) of associates accounted for using equity method ( 129,792 ) A21200 Interest income ( 71,419 ) A21300 Dividend income ( 6,733 ) A22500 Loss (gain) on disposal of property,plantand equipment 19,603 A23100 Loss (gain) on disposal of Available-for-Sales financial asset, net ( 379,826 ) A30000 Net changes in operating assets and liabilities A31110 Financial assets held for trading - A31130 Notes receivable 17,421 A31150 Accounts receivable 284,428 A31160 Notes and accounts receivable due from related parties 14,887 A31180 Other receivable 192,764 A31200 Inventories 569,736 A31230 Prepayments 245,330 A31240 Other current assets ( 14,146 ) （Continued）

Year ended June 30,2012

$ 1,267,785 1,363,220 17,096 21,295 ( 7,330 ) 318,889 - 6,987 159,425 ( 23,591 ) ( 81,921 ) ( 87,450 ) ( 69,309 ) ( 1 ) 1,569 - ( 50,000 ) 498 212,865 67,338 ( 122,626 ) 465,111 247,174 9,091

（ Continued ）

（Continued）
C o d e A31990 Prepaid pension costs A32130 Notes payable A32150 Accounts payable A32160 Notes and accounts payable to related parties A32180 Other payables A32210 Advance receipts A32210 Unearned revenue A32240 Accrued pension liabilities A32230 Other current liabilities A33000 Cash inflow (outflow) generated from operations A33300 Interests paid A33100 Interests received A33500 Income taxes refund (paid) AAAA Net cash flows from (used in) operating activities CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES B00400 Proceeds from disposal of available-for-sale financial assets B00600 Decrease (increase) in bond investments without active market B01200 Acquisition of financial assets carried at cost B01800 Acquisition of investments accounted for using equity method B02700 Acquisition of property, plant and equipment B02800 Proceeds from disposal of property, plant and equipment B04100 Decrease (increase) in other receivable B04500 Acquisition of intangible assets B05400 Acquisition of Investment Property B06700 Increase in other non-current assets B07600 Dividends received BBBB Net cash flows from (used in) investing activities Cash flows from (used in) financing activities C00100 Increase in short-term loans C00200 Decrease in short-term loans （Continued）	Year ended June 30,2013 2,706 ( 150,420 ) ( 5,209,555 ) ( 88,821 ) ( 441,549 ) 261,161 86,065 ( 6,870 ) 55,108 ( 1,388,900 ) ( 235,615 ) 58,267 ( 770,985 ) (2,337,233 ) 701,854 736,298 ( 50,000 ) ( 90,000 ) ( 2,085,309 ) 3,411 ( 1,254,324 ) ( 19,612 ) - ( 131,626 ) 1 (2,189,307 ) 25,901,114 ( 27,191,932 )	Year ended June 30,2012
		399 ( 317,037 ) ( 4,465,615 ) ( 72,982 ) ( 701,107 ) 516,199 50,241 ( 11,375 ) ( 135,154 ) ( 1,420,316 ) ( 330,601 ) 68,206 (1,096,677 ) (2,779,388 ) - ( 2,531,605 ) ( 126,000 ) - ( 3,292,470 ) 363 - ( 17,635 ) ( 18,399 ) ( 66,812 ) 1 (6,052,557 ) 35,474,840 ( 34,919,234 )

（ Continued ）

C o d e C00500 Increase in short-term notes and bills payable C00600 Decrease in short-term notes and bills payable C01600 Proceeds from long-term debt C01700 Repayment of long-term debt C04400 Decrease in other non-current liabilities C04500 Dividends paid by parent company C05800 Dividends paid by consolidated companies to non-controlling interests CCCC Net cash flows from (used in) financing activities DDDD Effect of exchange rate changes on cash and cash equivalents EEEE Net increase (decrease) in cash and cash equivalents E00100 Cash and cash equivalents at beginning of period E00200 Cash and cash equivalents at end of period	Year ended June 30,2013 11,914,066 ( 12,871,349 ) 19,950,000 ( 21,595,952 ) 59,992 ( 5 ) ( 197,462 ) (4,031,528 ) ( 51,400 ) (8,609,468 ) 16,794,103 $ 8,184,635	Year ended June 30,2012
		8,255,898 ( 7,078,458 ) 33,644,858 ( 32,928,117 ) 43,996 ( 42 ) ( 207,531 ) 2,286,210 21,979 (6,523,756 ) 16,365,201 $ 9,841,445

(Concluded)