FEDS — Annual Report 2012

Mar 13, 2013

FAR EASTERN DEPARTMENT STORES, LTD. BALANCE SHEETS

September 30, 2012 AND 2011

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

C o d e 1100 1320 1120 1140 1150 1180 1160 120X 1260 1286 1298 11XX 1421 1450 1480 14XX 1501 1521 1531 15X1 15X8 15XY 15X9 1670 1681 15XX 1810 1820 1840 1880 18XX 1XXX	ASSETS CURRENT ASSETS Cash Available-for-Sale financial assets－current Notes Accounts receivable, net of allowance for doubtful accounts of NT $3,575 thousands in 2012 and 3,550 thousands in 2011 Related parties - notes and accounts receivables Related parties - others Other receivables Inventories Prepayments Deferred tax assets-current Other current assets Total current assets LONG-TERM INVESTMENTS investments accounted for by the equity method Available-for-sale financial assets-non current Financial assets carried at cost - noncurrent Total long-term investments PROPERTY Cost Land Buildings and equipment Furniture and equipment Total cost Revaluation increment Cost and appreciation Less: Accumulated depreciation Construction in progress and prepayments for equipment Leasehold rights, net Net properties OTHER ASSETS Idle assets, net Refundable deposits Prepaid pension cost Miscellaneous Total other assets Total		2012/ 9/30 Amount ％ $ 1,861,911 3 253,686 1 38,291 - 519,864 1 9,261 - 969,348 2 137,137 - 856,338 1 205,993 - 9,735 - 5,437 - 4,867,001 8 19,300,829 32 2,795,013 4 62,570 - 22,158,412 36 6,995,873 12 14,253,286 23 6,120,061 10 27,369,220 45 1,408,269 3 28,777,489 48 5,964,367 10 22,813,122 38 2,458,079 4 7,484,083 12 32,755,284 54 562,616 1 163,240 - 258,560 1 38,632 - 1,023,048 2 $ 60,803,745 100		2011/ 9/30 Amount ％ $ 268,949 1 243,940 - 22,940 - 133,298 - 36,250 - 311,156 1 74,895 - 687,296 1 409,555 1 8,587 - 6,406 - 2,203,272 4 18,624,971 35 2,394,068 5 100,367 - 21,119,406 40 4,318,667 8 7,622,133 14 3,463,175 7 15,403,975 29 1,408,269 3 16,812,244 32 5,187,194 10 11,625,050 22 10,521,112 20 6,778,681 12 28,924,843 54 569,344 1 158,969 - 238,193 1 5,100 - 971,606 2 $ 53,219,127 100	C o d e 2100 2110 2140 2150 2190 2160 2228 2260 2272 2280 21XX 2410 2420 24XX 2510 2820 2860 2881 2888 28XX 2XXX 3110 3210 3220 3260 3272 32XX 3310 3320 3350 33XX 3420 3430 3450 3460 3480 34XX 3XXX	LIBILITIES AND STOCKHOLDERS’ EQUITY CURRENT LIABILITIES Short-term debts Short-term notes and bill payable Notes and accounts payable Accounts payable - related parties Other payables–related parties Income tax payable Other payables Advanced receipts Current portion of long-term borrowings Other current liability Total current liability LONG-TERM LIABILITIES, NET OF CURRENT PORTION Bonds issued Long-term borrowings Total long-term liabilities Reserve Reserve for land revaluation increment tax Other liabilities Deposits received Deferred tax liabilities–noncurrent Deferred credits Miscellaneous Other current liability Total liability STOCKHOLDERS’EQUITY Capital stock, NT$ 10.00 par value Authorized - 1,750,000 thousand shares issued and outstanding-1,369,880 thousands shares in 2012 and 1,317,192 thousand shares in 2011 Capital surplus: Additional paid-in capital – share issuance in excess of par Treasury stock transactions Long-term investments Stock warrants Total Capital Surplus Retained earnings: Legal reserve Special reserve Unappropriated earnings Total retained earnings Other equity adjustments Cumulative translation adjustments Net losses not recognized as pension costs Unrealized valuation gains on financial instruments Unrealized asset revaluation increment Treasury Stock－7,812 thousand shares in 2012 and 7,511 thousand shares in 2011 Total other equity adjustments Total Stockholders’equity Total		2012/ 9/30 Amount ％ $ 3,810,000 6 949,286 2 3,815,268 6 49,224 - 758,631 1 8,470 - 2,033,965 4 2,546,510 4 4,400,000 7 867,415 2 19,238,769 32 4,645,387 7 8,996,545 15 13,641,932 22 508,719 1 39,993 - 313,358 1 11,366 - - - 364,717 1 33,754,137 56 13,698,797 22 2,175,718 3 1,213,526 2 364,937 1 108,930 - 3,863,111 6 2,189,631 4 1,069,595 2 1,932,746 3 5,191,972 9 236,818 ) - 20,949 ) - 3,746,960 6 843,305 1 36,770 ) - 4,295,728 7 27,049,608 44 $ 60,803,745 100		2011 /9/30	2011 /9/30
			Amount $ 1,861,911 253,686 38,291 519,864 9,261 969,348 137,137 856,338 205,993 9,735 5,437 4,867,001 19,300,829 2,795,013 62,570 22,158,412 6,995,873 14,253,286 6,120,061 27,369,220 1,408,269 28,777,489 5,964,367 22,813,122 2,458,079 7,484,083 32,755,284 562,616 163,240 258,560 38,632 1,023,048 $ 60,803,745		Amount $ 268,949 243,940 22,940 133,298 36,250 311,156 74,895 687,296 409,555 8,587 6,406 2,203,272 18,624,971 2,394,068 100,367 21,119,406 4,318,667 7,622,133 3,463,175 15,403,975 1,408,269 16,812,244 5,187,194 11,625,050 10,521,112 6,778,681 28,924,843 569,344 158,969 238,193 5,100 971,606 $ 53,219,127				Amount $ 3,810,000 949,286 3,815,268 49,224 758,631 8,470 2,033,965 2,546,510 4,400,000 867,415 19,238,769 4,645,387 8,996,545 13,641,932 508,719 39,993 313,358 11,366 - 364,717 33,754,137 13,698,797 2,175,718 1,213,526 364,937 108,930 3,863,111 2,189,631 1,069,595 1,932,746 5,191,972 236,818 ) 20,949 ) 3,746,960 843,305 36,770 ) 4,295,728 27,049,608 $ 60,803,745		Amount $ 2,350,000 1,699,444 2,024,672 21,943 153,606 - 755,080 1,793,050 999,071 857,909 10,654,775 4,607,556 11,260,000 15,867,556 508,719 39,386 168,807 11,366 18,848 238,407 27,269,457 13,171,921 2,175,718 1,213,526 365,518 108,930 3,863,692 1,975,319 1,069,583 2,354,635 5,399,537 8,466 8,300 ) 2,708,018 843,106 36,770 ) 3,514,520 25,949,670 $ 53,219,127	％
								( ( (		( (		4 3 4 - - - 2 3 2 2 20 9 21 30 1 - - - - - 51 25 4 2 1 - 7 4 2 4 10 - - 5 2 - 7 49 100

FAR EASTERN DEPARTMENT STORES, LTD. STATEMENTS OF INCOME

YEAR ENDED September 30, 2012 AND 2011

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

Code REVENUES 4100 Sales 4800 Other operating revenue 4000 Total Revenues COSTS 5110 Cost of goods sold 5800 Other operating costs 5000 Total costs 5910GROSS PROFIT OPERATING EXPENSES 6100 Selling 6200 General and administrative 6000 Total operating expenses 6900OPERATING INCOME NONOPERATING INCOME AND GAINS 7121 Equity in earnings of equity-method investees, net 7122 Dividend income 7110 Interest income 7140 Gains on disposal of investments, net 7480 Other income 7100 Total non-operating income and gains	2012 Year ended September 30 Amount ％ $ 26,498,198 99 294,643 1 26,792,841 100 21,751,200 81 105,784 - 21,856,984 81 4,935,857 19 906,996 3 3,331,372 13 4,238,368 16 697,489 3 320,009 1 168,790 1 2,395 - - - 88,726 - 579,920 2	2012 Year ended September 30 Amount ％ $ 26,498,198 99 294,643 1 26,792,841 100 21,751,200 81 105,784 - 21,856,984 81 4,935,857 19 906,996 3 3,331,372 13 4,238,368 16 697,489 3 320,009 1 168,790 1 2,395 - - - 88,726 - 579,920 2	2011 Year ended September 30	2011 Year ended September 30	2011 Year ended September 30
		Amount $ 26,498,198 294,643 26,792,841 21,751,200 105,784 21,856,984 4,935,857 906,996 3,331,372 4,238,368 697,489 320,009 168,790 2,395 - 88,726 579,920		Amount $ 17,020,829 199,092 17,219,921 13,725,131 44,115 13,769,246 3,450,675 525,320 2,187,256 2,712,576 738,099 800,027 146,820 1,200 4,962 65,354 1,018,363	％
					99 1 100 80 - 80 20 3 13 16 4 5 1 - - - 6

NONOPERATING EXPENSES AND LOSSES

（ Continued ）

（ Continued ）

Code 7510 Interest expense 7530 Loss on disposal of property, net 7631 Impairment losses on financial asset carried at cost 7880 Other expenses 7500 Total non-operating expenses and losses 7900 INCOME BEFORE INCOME TAX 8110 INCOME TAX (BENEFIT) EXPENSE 9600 NET INCOME Code EARNINGS PER SHARE 9750 Basic 9850 Diluted	2012 Year ended September 30 Amount ％ 148,834 1 3,525 - - - 47,183 - 199,542 1 1,077,867 4 114,680 - $ 963,187 4 Before Tax After Tax $ 0.79 $ 0.71 $ 0.79 $ 0.71	2011 Year ended September 30	2011 Year ended September 30
			％

Pro forma information on the assumption that the Company’s shares traded or held by subsidiaries are treated as investments instead of treasury stocks ：

treasury stocks：
Code EARNINGS PER SHARE 9750 Basic 9850 Diluted	2012 Year ended September 30 Before Tax After Tax $ 0.79 $ 0.70 $ 0.78 $ 0.70		2011 Year ended September 30
	Before Tax $ 0.79 $ 0.78		Before Tax $ 1.19 $ 1.19	After Tax
					$ 1.07 $ 1.07

(Concluded)

FAR EASTERN DEPARTMENT STORES, LTD. STATEMENTS OF CASH FLOWS YEAR ENDED September 30, 2012 AND 2011 (In thousands of New Taiwan Dollars)

Cash Flows From Operating Activities Net incomes Depreciation Amortization of deferred charges Amortization of leasehold rights included in rental expense Equity in losses (earnings) of equity-method investees, net Cash dividends from equity-method investees Impairment losses on financial asset carried at cost Gains on disposal of investments Interest recognized on bonds payable Loss (gain) on disposal of property, net Deferred income taxes Increase in prepaid pension cost Net changes in operating assets and liabilities Notes receivable Accounts receivable Related parties - notes and accounts receivable Related parties - other receivable Other receivables Inventories Prepayments Other current assets Accounts and notes payable Related parties - accounts payable Related parties - other payables Income tax payable Other payables Advanced receipts Other current liabilities Net cash provided by operating activities	2012 Y e a r e n d e d September 30 $ 963,187 777,002 7,522 136,441 ( 320,009 ) - - - 28,429 3,525 106,099 ( 13,111 ) 477 ( 87,598 ) 42,857 ( 13,784 ) ( 1,032 ) ( 483,381 ) 117,097 11,926 682,458 ( 32,882 ) 66,689 ( 29,792 ) 8,023 985,556 11,650 2,967,349	2011 Y e a r e n d e d September 30
		$ 1,469,811 299,263 2,405 56,117 ( 800,027 ) 1,166,581 1,066 ( 4,962 ) 21,797 3,913 85,011 ( 22,465 ) ( 7,424 ) 48,467 4,840 ( 38,910 ) 25,764 ( 479,699 ) ( 147,120 ) 8,598 ( 307,131 ) ( 39,442 ) 42,524 ( 198,220 ) ( 183,912 ) 310,579 113,188 1,430,612

（ Continued ）

（ Continued ）

（Continued）
Cash Flows From Investing Activities Related parties – others receivable Acquisition of investments accounted for by the using equity-method Proceeds of available-for-sale financial assets Proceeds of the disposal of property Acquisition of property Decrease (increase) in refundable deposit Increase in other assets Net cash used in investing activities Cash Flows From Financing Activities Increase (decrease) in short-term debts Increase (decrease) in short-term notes and bills payable Increase(decrease) in long-term borrowings Issuance of bonds Increase(decrease) in deposits received Cash dividends Net cash provided by (used in) financing activities Net Increase ( Decrease) in cash Cash, Beginning of Year Cash, End of Year Supplement Cash Flow information Interest paid Less: Capitalized interest Interest paid, excluding capitalized interest Income tax paid Noncash investing and financing activities Adjustment to advance receipts and depreciation Current portion of long-term borrowings Cash dividends receivable from equity-method investees (Classified as accounts receivable -Related Parties) Classification of credit balance in long-term investment to other liabilities （Continued）	2012 Y e a r e n d e d September 30 ( 144,411 ) - - 609 ( 2,568,980 ) 325 ( 1,027 ) (2,713,484 ) ( 590,000 ) ( 749,982 ) 3,699,899 - ( 639 ) (1,317,289 ) 1,041,989 1,295,854 566,057 $ 1,861,911 $ 156,501 52,511 $ 103,990 $ 38,340 $ 118,345 $ 4,400,000 $ 504,630 $ -	2011 Y e a r e n d e d September 30
		- ( 200,000 ) 8,407 159 ( 4,155,809 ) 174 - (4,347,069 ) ( 800,000 ) 399,988 2,043,173 2,493,658 1,437 (1,242,674 ) 2,895,582 ( 20,875 ) 289,824 $ 268,949 $ 316,143 132,803 $ 183,340 $ 282,872 $ 59,160 $ 999,071 $ - $ 18,848

（ Continued ）

（Continued）
CASH PAID FOR ACQUISITION OF PROPERTY Acquisition of property Acquisition of leasehold rights Increase in construction in progress and prepayments for equipment Decrease (increase) in balance payable-property Decrease (increase) in balance payable-property-related party Cash paid	2012 Y e a r e n d e d September 30 $ 676,613 36,157 635,568 1,810,986 ( 590,344 ) $ 2,568,980	2011 Y e a r e n d e d September 30
	(		$ 123,843 862,993 3,087,279 61,858 19,836 $ 4,155,809

(Concluded)