Nature Home Achieves Turnaround in 1H2014

Revenue and Gross Profit Up by 37% and 50% to Approximately RMB776 Million and RMB253 Million Respectively

Further strengthened the integrated household product strategy by introducing an O2O platform to seize online and offline shopping opportunities

HONG KONG, Aug. 29, 2014 /PRNewswire/ —

Financial Highlights:

Unaudited results for the 6 months ended 30 June

2014

RMB’000

2013

RMB’000

Change

%

Revenue

776,398

566,977

+36.9

Gross Profit

252,658

168,888

+49.6

Profit Before Tax

26,679

(47,370)

N/A

Profit Attributable to Equity Shareholders

19,715

(55,248)

N/A

Profit Attributable to Equity Shareholders (excluding the net change in fair value of biological assets)

25,694

18,111

+41.9

Basic Earnings per Share (RMB)

0.013

(0.037)

N/A

Nature Home Holding Company Limited (“Nature Home” or the “Company“, together with its subsidiaries, the “Group“; HKEx Stock Code: 2083), announced today its interim results for the six months ended 30 June 2014 (the “Period“).

During the Period, the Group achieved encouraging financial results with revenue increased by 36.9% to approximately RMB776 million. Gross profit surged 49.6% to approximately RMB252 million. Profit attributable to equity shareholders reached approximately RMB20 million, representing a turnaround in the Period as compared to the loss attributable to equity shareholders recorded in the corresponding period of 2013. The turnaround is mainly attributable to the reduction of the negative net change in fair value of the Group’s biological assets, as well as the increase in the Group’s revenue and gross profit. During the Period, approximately 10.09 million square meters of flooring products were sold (1H2013: approximately 8.45 million square meters), representing an increase of 19.4% year-on-year.

Mr. Se Hok Pan, Chairman and Executive Director of Nature Home stated, “In the first six months of 2014, we continued to strengthen our efforts on brand building and sales, to further broaden the coverage in international markets under the intensified industry competition, this is reflected in the significant increase in the trading revenue of timber and wood products. The turnaround recorded during the Period reflected the success of our business development strategies, brand building and sales efforts. With the change of our Company name to Nature Home Holding Company Limited, we aim at achieving our goal in offering integrated household products with our Nature brand, representing an image of high quality, safe and environmentally-friendly household brand.”

Manufacturing and Sale of Wood Products

During the Period, turnover of the Group’s manufacturing and sale of wooden products has increased 39.2% to approximately RMB527 million, mainly attributable to the continued recovery of the Group’s flooring business in the PRC and the overall increased sales in flooring products.

The Group has successfully developed a solid and extensive sales network in the PRC. It has 1,856 “Nature” stores, 1,121 “Nature No.1 My Space” stores, 152 “Nature Aesthetics” stores, 99 foreign imported brand stores and 116 other brand stores as at 30 June 2014, amounting to 3,344 stores in total.

Nature Home will continue to focus on the development in the business of wooden doors, wardrobes and cabinets with the “Nature” brand, striving to improve such business in the future with the completion and operation of the new product line in the newly opened Taizhou Production Plant in Jiangsu Province, the PRC and the planned trial production of the Zhongshan Wardrobes and Cabinets Plant in the second half of 2014.

Trading of Timber and Wood Products

For the overseas market, the recovery of the global economy, especially the economy of the U.S., has created a favorable environment for the development of the Group’s business and brought to the group significant growth in the trading business revenue of timber and wood products. The Group’s subsidiaries located in the U.S. have further boosted the Group’s business development by establishing additional sales channels, which resulted in a sustained growth in the Group’s sales for the trading of wood flooring products in the U.S. During the Period, the Group’s trading business of timber and wood products contributed a revenue of approximately RMB165 million, representing a significant increase of 61.8% as compared to approximately RMB102 million in the corresponding period of 2013.

Chairman Se concluded, “Looking forward, the Group is still facing various challenges. However, the Group has captured the opportunities from the trend of online and offline shopping. We plan to establish an online housing O2O platform for the household industry to provide our customers with a one-stop solution with household products, logistics and decoration as well as installation service. The Group also plans to open ‘O2O Household Package Experience Stores’, which will display different packages of household products, offering customers an open experience for household products. We will also continue to implement our strategy of integrated household products and enhancing our household brand with a combination of online and offline platforms, in order to maximize the effectiveness in sales of the household brand. We will also strive for better performance in the future for the relevant business, especially with the new production line of wooden doors in the Taizhou Plant and a new production line of wardrobes and cabinets in the Zhongshan Plant. As one of the largest wood flooring brands in China, we have full confidence in our business and we will continue to reinforce our leading position in the industry to maximize returns to our shareholders.”

About Nature Home Holding Company Limited

Nature Home is the largest wood flooring brand in China in terms of market share by retail sales value of branded wood flooring products. According to an industry report of China’s flooring market conducted by an independent global market research and consulting company (the “Industry Report”), the Group’s “Nature” branded products accounted for 7.0% market share in terms of China’s total retail sales value of branded wood flooring products in 2011. The Group’s branded products are manufactured through a combination of its own manufacturing facilities and exclusive authorized manufacturers.

According to Industry Report, in 2011, the Group’s branded products ranked second in laminated flooring, first in multi-layered engineered flooring and first in solid wood flooring, each in terms of both the market share of retail sales volume and retail sales value in China. The Group is the only company to achieve a top two market share position across the three primary wood flooring product categories in China in 2011. Leveraging its strong brand, extensive distribution network, comprehensive product portfolio and flexible manufacturing model, the Group grew rapidly and gained market share in China from 2008 to 2011.

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China Fordoo Holdings Limited (Stock Code: 2399) Announces 2014 Interim Results

— Turnover Reached RMB766.2 Million

— Gross Profit Increased by 13.0% to RMB269.1 Million

HONG KONG, Aug. 28, 2014 /PRNewswire/ — China Fordoo Holdings Limited (“Fordoo” or the “Company” and, together with its subsidiaries, the “Group”, Stock Code: 2399), a reputable menswear brand in the PRC, is pleased to announce its interim results for the period ended 30 June 2014 (the “period”).

During the period, benefited from the growing recognition of the Group’s “FORDOO” brand and an increase in the average wholesale price of products, the Group’s turnover increased to RMB766.2 million, representing an increase of 6.8% over the corresponding period last year (1H2013: RMB717.4 million). The expansion of distribution network further strengthened the profitability of the Group. Net profit increased by 8.5% to RMB128.7 million over the corresponding period in 2013. Basic and diluted earnings per share were RMB36 cents, representing an increase of 8.5% as compared to the corresponding period last year (1H2013: RMB33 cents).

Mr. Kwok Kin Sun, Executive Director, Chief Executive Officer and Chairman of the Board said, “In the first half of 2014, China’s economic growth continued to slowdown and the retail market remained weak. For the apparel retail industry, the total retail sales of garments, hats, footwear and knitwear recorded a 10.0% year-on-year increase, which was 1.9 percentage points lower than that of the corresponding period in 2013. Therefore, the Group adopted a prudent operation strategy and focused on improving the distribution channel management and enhancing product quality and design. We are very satisfied that the purchase orders from the sales fair held in March 2014 increased by 24% from the ones held in September 2013.”

Business Review

As a reputable menswear brand in the PRC, by product type, Fordoo continued to lead the market in the men’s trousers segment. In the first half of 2014, turnover from men’s trousers increased by 16.9% to RMB458.1 million as compared to the corresponding period last year (1H2013: RMB392.0 million). In addition, sales of trousers remained the major contributor to the total turnover with a proportion of 59.8%. In terms of product style, the Group maintained a healthy growth in the business formal and business casual series. The business casual series continued to be the largest turnover contributor to the Group with a proportion of 63.4% (1H2013: 61.1%).

The Group has been striving to optimize its retail and sales network for the sustainable business growth. As of 30 June 2014, the retail and distribution network of the Group further expanded to 52 distributors and 180 sub-distributors. During the period, the Group had a total 1,353 retail outlets (including 2 self-operated retail stores), representing a net increase of 53 retail outlets as at 31 December 2013, spanning over 240 cities and 31 provinces, autonomous regions and central government-administered municipalities in the PRC. The increase in retail outlets was a strategy to further penetrate into the markets in the second and third-tier cities.

In the first half of 2014, as part of the Group’s marketing and promotion plan to enhance and reinforce its brand image, the renovation of 41 existing stores had completed, and the plan for renovating another 59 stores by the end of the year remained on track. In addition, the Group continued to actively carry out regular advertising and promotion campaign through various channels, such as advertisements in fashion magazines, promotion activities in the internet and other media, as well as advertisements on large outdoor billboards in airports, highways and well-known department stores.

Prospects

Looking ahead to the second half of 2014, the Group sustains its cautiously optimistic view with respect to the growth of consumer demand in menswear market in China. It is confident that the ongoing urbanization and expanding middle class in China will generate a strong demand on apparels in the long run. Therefore, the Group maintains its target for distributors of adding approximately 200 retail outlets within the year. In the coming 2014 spring/summer sales fair to be held in September 2014, the Group will launch a new casual fashion line targeting young customers aged 18 to 30.

Mr. Kwok concluded, “Fordoo will strive to seize the opportunities arising from the continuous growth of the men’s casual wear and trousers market in PRC, as well as strengthen its cooperation with the distributors and sub-distributors. The Group will equip itself for the future development through enhancing its product design and development capability and kicking off the implementation of the ERP system. Driven by the success of men’s trousers, business formal and business casual series, it is believed that the Group could continue its sustainable growth and maximize shareholders’ returns.”

– End –

About China Fordoo Holdings Limited

Fordoo is a reputable menswear brand in the PRC. Positioned in the middle-upper menswear segment, Fordoo primarily targets men aged 30 to 60. According to Frost & Sullivan, Fordoo brand was ranked sixth in the middle-upper menswear market with a market share of 2.9%, fifth in both the middle-upper business casual menswear segment and the middle-upper business formal menswear segment with respective market share of 4.0% and 2.9%, and second in the men’s trousers category with a market share of 3.0%, all of which were in terms of retail sales in 2013. Fordoo manages and operates the business through a strategically integrated model, comprising brand management and marketing, design and product development, ordering process, procurement of raw materials, self-production and outsourced production and sales and distribution. As of 30 June 2014, Fordoo’s distribution network comprised of 52 distributors, 180 sub-distributors and 1,353 retail outlets (excluding the two self-operated stores).

Issued by Porda Havas International Finance Communications Group for and on behalf of China Fordoo Holdings Limited.

Sinopec Announces 2014 Interim Results

— Operating Profit Records Double Digit Growth in the First Half of 2014

— Marketing Business Restructuring and Shale Gas Development on Track

BEIJING, Aug. 22, 2014 /PRNewswire/ — China Petroleum & Chemical Corporation (“Sinopec” or “the Company”) (HKEX: 386; CH: 600028;NYSE: SNP) today announced its interim results for the six months ended 30 June 2014.

Financial Highlights:

  • In accordance with the International Financial Reporting Standards (IFRS), in the first half of 2014, the Company’s turnover, other operating revenues and other income was RMB1,356.17 billion, down 4.2% year-on-year. However, the Company still maintained double digit growth in operating profit of RMB52.27 billion, up 11.8% year-on-year. Profit attributable to equity shareholders of the Company was RMB32.54 billion, up 7.5% year-on-year. Basic earnings per share were RMB0.279.
  • In accordance with the PRC Accounting Standards for Business Enterprises (ASBE), in the first half of 2014, the Company’s operating profit was RMB44.83 billion, up 2.6% year-on-year. Net profit attributable to equity shareholders of the Company was RMB31.43 billion, up 6.8% year-on-year. Basic earnings per share were RMB0.269.
  • Net cash flows from operating activities was RMB582.14 billion, up 76.9% year-on-year.

  • The Board of Directors proposed an interim dividend of RMB0.09 per share.

Business Highlights:

In the first half of 2014, global economic growth slowed down while China’s economy maintained moderate growth. Despite slowing growth in demand for refined oil products and tumbling prices for chemical products, the Company achieved a double digit increase in operating profit, thanks to increased production and sales volume of high quality oil products which led to a year-on-year operating profit growth in its refining and marketing businesses.

  • The Company achieved further progress in domestic oil and gas exploration and development.  Sinopec maintained its fast-track momentum in the construction of shale gas capacity in Fuling in the Sichuan Basin. By the end of June, daily shale gas production hit 3.2 million cubic meters. As of the end of 2013, the Company had completed its acquisition of overseas upstream assets from China Petrochemical Corporation, which significantly increased Sinopec’s crude production on a year-on-year basis.
  • Benefitting from further optimized production structure and increased production of high value-added oil products production such as GB IV & GB V gasoline and diesel production, the refining margin rose 43.4% in the first half of 2014 on a year-on-year basis.
  • In the first half of 2014, Sinopec carried out the restructuring and reform of its marketing business as planned. The Company established Sinopec Marketing Company Ltd. and completed the auditing and evaluation of its assets, laying the foundation for marketing business reform. Sinopec established Sinopec Easy Joy Sales Co., Ltd. to take another big step in the development of its non-fuel business. Sinopec significantly increased sales of premium products and recorded 10% growth in non-fuel operating revenues through optimising marketing strategies, expanding retail scale and enhancing integrated service levels for its clients.
  • Sinopec proactively responded to the severe market conditions for the chemical industry. The Company adjusted the raw material and product structure, optimised the utilisation rate of its facilities, and shut down non-profitable units.

Fu Chengyu, Chairman of Sinopec said: “Focusing on improving the quality and efficiency of development in the first half of 2014, Sinopec has accelerated business restructuring, emphasizing market-oriented reform and the specialized development of various business lines. Sinopec is committed to building a people-oriented, world-class energy and chemical company as well as enhancing shareholders’ long term returns through business transformation and more effective management.”

Business Review

Exploration and Production

In the first half of 2014, Sinopec achieved further progress in oil and gas exploration and development by focusing on five key domestic areas. In exploration, the Company made further discoveries in west Sichuan, with a number of  discoveries in the west rim of the Zhungar Basin, the Qintong sag of Jiangsu Province and North Erdos. In development, Sinopec strengthened its efforts in progressive exploration and reservoir characterisation, implemented a number of projects to build oil and gas production capacity and actively carried out gas production capacity building projects in Yuanba, middle-shallow layer of west Sichuan and Daniudi. We sustained our rapid growth in conventional gas production.

In unconventional resource development, we maintained our fast track momentum in the construction of shale gas capacity in Fuling in the Sichuan Basin. By the end of June, average daily shale gas production hit 3.2 million cubic meters. As of the end of 2013, the Company had completed its acquisition of overseas upstream assets from China Petrochemical Corporation, which significantly increased its crude oil production. In the first half of 2014, our oil and gas production was 237.01 million barrels of oil equivalent, up 8.00% from the same period in 2013, of which crude oil was 177.88 million barrels, representing an increase of 7.52% from the same period last year, and natural gas output was 354.8 billion cubic meters, an increase of 9.46%.

Due to lower crude oil realisation and lower overseas sales volumes due to maintenance to our Angola project, operating revenue of the Exploration and Production segment was RMB113.8 billion, representing a decrease of 2.9% over the first half of 2013. The segment operated fairly smoothly in the first half of 2014, realising RMB28.3 billion of operating profit, down 8.7% on a year-on-year basis. This was mainly attributable to lower realized crude price caused by factors including exchange rate fluctuation.

Summary of Operations for the Exploration and Production Segment

Six-month period

ended 30 June

Change

2014

2013

%

Oil and gas production (mmboe)

237.01

219.46

8.00

Crude oil production (mmbbls)

177.88

165.44

7.52

       China

154.15

153.66

0.32

       Overseas

23.73

11.78

101.44

Natural gas production (bcf)

354.80

324.14

9.46

Refining

In the first half of 2014, we adjusted our refinery products mix in response to changes in domestic demand; optimised resource allocation and reduced procurement costs of crude oil; strengthened coordination of production and marketing to increase production and export of gasoline, jet fuel and other high-value-added products. We actively promoted quality upgrading in our oil products and significantly increased output of GB IV standard diesel. We took advantage of our centralised marketing for other oil products and increased sales of LPG, asphalt and petroleum wax. In the first half of 2014, we processed 116 million tonnes of crude oil, up 0.32% year-on-year, and increased oil product output by 2.68%, of which gasoline production was up by 9.63%, kerosene up by 19.74% and light yield up by 0.63 percentage points.

Operating revenue for the refining segment was RMB652 billion, up 1.2% year-on-year. Benefitting from further optimized production structure and increased production of high quality oil product, the segment achieved an operating profit of RMB9.8 billion in the first half of 2014, representing an increase of RMB9.5 billion over the same period of 2013, and the refining margin rose 43.4% on a year-on-year basis,

Summary of Operations for the Refining Segment   

Unit: million tonnes

Six-month period

ended 30 June

Change

2014

2013

(%)

Refinery throughput

115.81

115.44

0.32

Gasoline, diesel and kerosene production

71.62

69.75

2.68

       Gasoline

24.94

22.75

9.63

       Diesel

36.67

38.64

(5.10)

       Kerosene

10.01

8.36

19.74

Light chemical feedstock production

19.96

18.82

6.06

Light yield (%)

76.83

76.20

0.63

percentage points

Refining yield (%)

94.63

94.61

0.02

percentage points

Note: includes 100% production of joint ventures

Marketing and Distribution

In the first half of 2014, we carried out the restructuring and reform of our marketing business as planned. We established Sinopec Marketing Company Ltd. and completed the auditing and evaluation of its assets and laid the foundations for marketing business reform. We established Sinopec Easy Joy Sales Co., Ltd., as another big step towards the specialized development of our non-fuel business. In light of sufficient market supply and fierce competition, we focused on resource allocation and optimised our marketing strategies to concentrate on premium products. We focused on our customer base and the retail market, enhancing the comprehensive services at Sinopec retail stations and maximized the scale of our retail business. With the launch of our online store for refuelling cards and self-service apps and devices, we improved customer experience by providing a one-stop service. In the first half of 2014, the total sales volume of oil products grew by 0.2% to 88.26 million tonnes, of which domestic sales were 81.04 million tonnes, up 0.4% from the previous year. Retail volume increased by 1.9% to 56.55 million tonnes. Sales from our non-fuel business reached RMB7.19 billion, an increase of 10% from the same period in 2013.

Operating income of the segment was RMB726.9 billion, down 0.8% year-on-year, mainly due to the revenue drop in diesel and fuels oil. Operating profit was RMB18.8 billion, representing an increase of 11.5% over the same period of 2013.

Summary of Operations for Marketing and Distribution Segment

Unit: million tonnes

Six-month period

ended 30 June

Change

2014

2013

%

Total sales volume of oil products

88.26

88.05

0.2

Total domestic sales volume of oil products

81.04

80.75

0.4

       Retail

56.55

55.52

1.9

       Direct and wholesale

24.49

25.23

(2.9)

Annualised average throughput per station (tonne/station)

3,712

3,620

2.5

As of 30 June

2014

As of 31 December

2013

Change

from the end

of last year (%)

Total number of Sinopec-branded service stations

30,467

30,536

(0.23)

       Company-operated

30,454

30,523

(0.23)

Chemicals Business

In the first half of 2014, facing oversupply in the market, high and volatile feedstock costs and a continued decline in chemical prices, we adjusted our feedstock and product mix as well as the configuration of facilities in order to process more low-cost, light feedstock into high-value-added products. In addition, we strengthened our efforts in the research, development, production and marketing of new products, integrated production with marketing and research and optimised the utilisation rate of facilities while shutting down non-profitable units. Furthermore, we strengthened our supply-chain management to ensure stable production and sales. In the first half of 2014, ethylene production reached 5.084 million tonnes, up 5.0% from the same period in the previous year and chemical sales volume was 29.2 million tonnes, up 4.1% year-on-year.

In the first half of 2014, operating revenue of the chemicals segment was RMB213.4 billion, representing an increase of 0.9% from the same period in 2013. This was primarily due to a 6.4% year-on-year increase in the sales volume of chemical products thanks to proactive marketing activities. Fierce competition in the domestic market and decreased chemical product prices led to an operating loss of RMB4 billion for the reporting period.

Summary of Operations, Chemicals Segment                                                                 

Unit: thousand tonnes

Six-month period ended 30 June

Changes

2014

2013

(%)

Ethylene

5,084

4,841

5.0

Synthetic resin

6,965

6,730

3.5

Synthetic fiber monomer and polymer

4,105

4,539

(9.6)

Synthetic fiber

646

699

(7.6)

Synthetic rubber

483

457

5.7

Note: Includes 100% of production of joint ventures.

Capital Expenditures

The Company has focused on improving the investment quality and returns and has made progress in a number of key projects. Total capital expenditure in the first half of 2014 was RMB39.186 billion. The Exploration and Production Segment accounted for a capital expenditure of RMB20.743 billion. This was primarily for oil and gas production capacity building, including at the Shengli oil field, Tahe oil field, Yuanba and Daniudi gas fields, Fuling shale gas field, the South Yanchuan Coal-bed-methane project, the Shandong and Guangxi LNG projects as well as at natural gas pipeline projects and overseas upstream projects. The Refining Segment accounted for a capital expenditure of RMB6.592 billion, which primarily supported the completion of revamping projects at the Shijiazhuang, Yangzi, Tahe and Jiujiang refineries and for quality improvements in our oil products. The Chemicals Segment accounted for a capital expenditure of RMB4.67 billion. This was primarily used for the acquisition of equity interests in the Ningdong coal chemical project and an investment in ZhongAn coal-chemical project, as well as to support product mix adjustments and basic chemical projects including Qilu acrylonitrile and Maoming polypropylene projects. The Marketing and Distribution Segment accounted for a capital expenditure of RMB5.83 billion, which primarily supported the building and revamping of service stations and the construction of oil product pipelines and depots. We added 261 new service stations in the first half of 2014. Corporate and Others accounted for a capital expenditure of RMB1.351 billion, which primarily supported R&D facilities and IT projects.

Special Highlights

Fuling Shale Gas Project

Following the significant breakthrough in the Fuling shale gas exploration project and after trial development and appraisal, the Company has set an overall production capacity target of 10 billion cubic meters for the Fuling shale gas field, and a planned capacity of 5 billion cubic meters per year for the first phase. In accordance with the guidance of overall deployment and step-by-step development, the first project in the first phase, which is the North Block development, is scheduled for 2014. This project mainly consists of drilling 91 new wells and constructing shale gas gathering and transmission facilities. The new production capacity is expected to be 1.8 billion cubic meters for this year.

Restructuring of the Marketing Business

In the first half of 2014, the Company accelerated the restructuring of Sinopec Corp.’s marketing business. The establishment, property audit and assessment of Sinopec Marketing Company Ltd., have been completed as planned. The Capital Introduction will be subject to market conditions and will be administered with impartiality, fairness and openness. The process of Capital Introduction will be divided into two phases and will include multiple rounds of bidding and competitive negotiations. The main objectives of the Capital Introduction are to promote and optimize a modern enterprise system, improve its market-oriented operational system and management mechanism, facilitate business innovation and vitality, enhance the competitiveness and sustainability of the enterprise, promote the transformation of Sinopec Marketing from a refined oil products supplier into an integrated services provider and develop Sinopec Marketing into a comprehensive lifestyle services provider which is trusted by consumers and which satisfies the needs of the general public.

Health, Safety, Environment and Low-carbon Growth

We improved and strictly implemented our Safe Production Accountability System, implemented the Occupational Safety and Health Administration (OSHA) standard, and initiated safety inspections throughout the Company to identify potential risks and emergency response team building. As a result, we maintained safe production on the whole. The Company increased its efforts in environmental protection, energy conservation, emissions reduction, green and low-carbon growth, and initiated energy performance contracting as well as an energy management system. Our Clean Water and Blue Sky campaign is well underway and is working towards a plan of Double the Energy Efficiency. In the first half of 2014, our chemical oxygen demand (COD) in wastewater discharge fell by 3.84% year-on-year and SO2 emissions fell by 4.73% year-on-year.

Corporate Governance Improvement

During the reporting period, Sinopec Corp. has complied with the applicable securities laws and regulations in and outside mainland China and further improved its corporate governance. Throughout the restructuring of its Marketing and Distribution business, the Company has and continues to strictly following the principles of public, fair, impartial and transparent. The Company has also provided training to newly appointed members of senior management in order to support the performance of their duties. The independent non-executive directors strengthened their communication with management and the external auditors and actively participated in the on-site research and evaluation of the subsidiaries. Sinopec Corp. has actively strengthened its internal control system, which has been implemented effectively, it has organised several reverse roadshows and has achieved continued improvements in relation to the information disclosure and investor relations. The Company initiates and leads green and low carbon development, and launches Energy Conservation Campaign. Sinopec Corp. continuously acts as Chairman of UNGC China Network and proactively supports its 2014 Caring for Climate China Summit. As at the date of this report, the Company has established the Policy Concerning Diversity of Board Members aiming to help maintain rational board structure and revised the Insiders’ Registration Rules for the Company aiming to strengthen the management of Insiders.

Business Prospects

In the second half of the year, we expect the global economic recovery to slow while China will maintain steady economic growth. We expect international oil prices to fluctuate at a high level during the second half of 2014. Domestic demand for oil products, especially for gasoline, is expected to grow rapidly and demand for chemicals to grow slightly.

We will focus on efficiency and profitability based on market dynamics and on safety and reliable operations. To achieve full-year production and operation targets, we will undertake initiatives in the following key areas:

In exploration and production, we will promote efficient and effective exploration in frontier areas, secure acreage for commercial development, continuously advance overseas crude oil development, and step up capacity building in Yuanba, Daniudi, middle-shallow layer of west Sichuan and Fuling shale gas projects.

In refining, we will optimise procurement and allocation of crude oil to reduce costs. We will readjust our product mix and raise the output of high-value-added products. We will continue to upgrade the quality of oil products including our GB IV highway diesel and GB V gasoline, and will strengthen the marketing of LPG, asphalt and petroleum wax.

In marketing and distribution, we will push forward the reform and restructuring of our marketing business. We will optimise resources allocation, improve business efficiency, and take full advantage of our brand and existing network to expand retail volume. We will promote market-oriented development of non-fuel and other emerging businesses, and enhance the value-creation capability of our sales network.

In chemicals, we will take advantage of integration production, and further adjust our feedstock to reduce costs, modify our product mix and unit structure through better integration of production, marketing and research to produce more marketable products. We will also strengthen business operations and marketing optimisation to further enhance marketing ability.

Appendix

Principal financial data and indicators

FINANCIAL DATA AND INDICATORS PREPARED IN ACCORDANCE WITH ASBE

Principal accounting data

Changes

over the same

Six-month periods ended 30 June

period of the

2014

2013

preceding year

Items

RMB million

RMB million

(%)

Operating income

1,356,172

1,415,244

(4.2)

Net profit attributable to equity shareholders of the Company

31,430

29,417

6.8

Net profit attributable to equity shareholders of the Company
     
after deducting extraordinary gain/loss items

31,354

29,196

7.4

Net cash flows from operating activities

58,214

32,903

76.9

Changes

At 30 June

At 31 December

from the end

2014

2013

of last year

RMB million

RMB million

(%)

Total equity attributable to equity shareholders of the Company

587,604

570,346

3.0

Total assets

1,429,543

1,382,916

3.4

Principal financial indicators

Changes

over the same

Six-month periods ended 30 June

period of the

2014

2013

preceding year

Items

RMB

RMB

(%)

Basic earnings per share

0.269

0.254

5.9

Diluted earnings per share

0.268

0.239

12.1

Basic earnings per share after deducting extraordinary

 gain/loss items

0.269

0.252

6.7

Weighted average return on net assets (%)

 

 

5.37

 

5.49

(0.12)

percentage points

Weighted average return on net assets after deducting

 extraordinary gain/loss items (%)

5.36

 

5.45

(0.09)

percentage points

Net assets per share attributable to equity shareholders

 of the Company (fully diluted)

5.031

4.687

7.3

 

 

FINANCIAL DATA AND INDICATORS PREPARED IN ACCORDANCE WITH IFRS

Principal accounting data

Changes

Six-month periods ended 30 June

over the same

2014

2013

period of the

Items

RMB million

RMB million

preceding year (%)

Operating profit

52,268

46,741

11.8

Net profit attributable to owners of the Company

32,543

30,281

7.5

Net cash generated from operating activities

58,214

32,903

76.9

Changes

As of 30 June

As of 31 December

from the end

2014

2013

of last year

RMB million

RMB million

(%)

Equity attributable to owners of the Company

586,110

568,803

3.0

Total assets

1,429,543

1,382,916

3.4

Principal financial indicators

Changes

over the same

Six-month periods ended 30 June

period of the

2014

2013

preceding year

Items 

RMB

RMB

(%)

Basic earnings per share

0.279

0.262

6.5

Diluted earnings per share

0.277

0.246

12.6

Net assets per share

5.018

4.664

7.6

Return on capital employed (%) *

 

4.19

3.88

0.31

percentage points

Return on capital employed=operating profit × (1-income tax rate)/capital employed (not annualized data)

The following table sets forth the operating revenues, operating expenses and operating profit/(loss) by each segment before elimination of the inter-segment transactions for the periods indicated, and the changes between the first half of 2014 and the first half of 2013.

Unit: RMB millions

Six-month periods ended 30 June

Change

2014

2013

(%)

Exploration and Production Segment

Operating revenues

113,827

117,242

(2.9)

Operating expenses

85,564

86,293

(0.8)

Operating profit

28,263

30,949

(8.7)

 Refining Segment

Operating revenues

651,969

644,246

1.2

Operating expenses

642,214

644,033

(0.3)

Operating profit

9,755

213

4,479.8

Marketing and Distribution Segment

Operating revenues

726,927

732,752

(0.8)

Operating expenses

708,133

715,900

(1.1)

Operating profit

18,794

16,852

11.5

Chemicals Segment

Operating revenues

213,392

211,521

0.9

Operating expenses

217,360

211,930

2.6

Operating loss

(3,968)

(409)

Corporate and others

Operating revenues

645,690

681,911

(5.3)

Operating expenses

645,951

682,925

(5.4)

Operating loss

(261)

(1,014)

Elimination of inter-segment profits

(315)

150

About Sinopec:

Sinopec Corp. is one of the largest integrated energy and chemical companies in China. Its principal operations include the exploration and production, pipeline transportation and sale of petroleum and natural gas; the sale, storage and transportation of petroleum products, petrochemical products, coal chemical products, synthetic fibre, fertiliser and other chemical products; the import and export, including an import and export agency business, of petroleum, natural gas, petroleum products, petrochemical and chemical products, and other commodities and technologies; and research, development and application of technologies and information.

Sinopec sets ‘powering beautiful life’ as its corporate mission, puts ‘people, responsibility, integrity, precision, innovation and win-win’ as its corporate core values, pursues a strategy of resources, markets, integration, international operation, differentiation, and low-carbon, and strives to achieve its corporate vision of building a world leading energy and chemical company.

Disclaimer:

This press release includes “forward-looking statements”. All statements, other than statements of historical facts that address activities, events or developments that Sinopec Corp. expects or anticipates will or may occur in the future (including but not limited to projections, targets, reserve volume, other estimates and business plans) are forward-looking statements. Sinopec Corp.’s actual results or developments may differ materially from those indicated by these forward-looking statements as a result of various factors and uncertainties, including but not limited to the price fluctuation, possible changes in actual demand, foreign exchange rate, results of oil exploration, estimates of oil and gas reserves, market shares, competition, environmental risks, possible changes to laws, finance and regulations, conditions of the global economy and financial markets, political risks, possible delay of projects, government approval of projects, cost estimates and other factors beyond Sinopec Corp.’s control. In addition, Sinopec Corp. makes the forward-looking statements referred to herein as of today and undertakes no obligation to update these statements.

Investor Inquiries:

Beijing

Tel: (86 10) 5996 0028

Fax: (86 10) 5996 0386

Email: ir@sinopec.com

Media Inquiries:

 

Tel: (86 10) 5996 0028

Fax: (86 10) 5996 0386

Email: ir@sinopec.com

Hong Kong

Tel: (852) 2824 2638

Fax: (852) 2824 3669

Email: ir@sinopechk.com

Tel: (852) 3512 5000

Fax: (852) 2259 9008

Email: sinopec@brunswickgroup.com

Logo – http://photos.prnewswire.com/prnh/20140428/81089                           

 

 

Baioo Family Interactive Limited Announces 2014 Interim Results

HONG KONG, Aug. 15, 2014 /PRNewswire/ —

Highlights of the First Half of 2014:

  • Total revenues for the six months ended 30 June 2014 were RMB287.8 million, representing a 35.0% increase from RMB213.2 million for the six months ended 30 June 2013
  • Gross profit for the six months ended 30 June 2014 was RMB208.4 million, representing a 23.8% increase from RMB168.4 million for the six months ended 30 June 2013
  • Adjusted net profit for the six months ended 30 June 2014 were RMB140.6 million, representing a 20.7% increase from RMB116.5 million for the six months ended 30 June 2014
  • Adjusted EBITDA for the six months ended 30 June 2014 were RMB160.5 million, representing a 17.8% increase from RMB136.3 million for the six months ended 30 June 2013
  • Average Quarterly Active Accounts (“QAA”) reached 56.2 million, up 3.1% period-on-period
  • Average Quarterly Paying Accounts (“QPA”) were 3.3 million, up 17.9% period-on-period
  • Average Quarterly Average Revenue per Quarterly Paying Accounts (“ARQPA”) was RMB41.9, up 15.1% period-on-period

BAIOO Family Interactive Limited (“BAIOO” or the “Company”; stock code: 2100), China’s largest online entertainment destination designed for children, today released the unaudited consolidated results for the first half of 2014 ended 30 June.

The Company’s revenue for the six months ended 30 June 2014 was RMB287.8 million, representing a 35.0% increase from RMB213.2 million for the six months ended 30 June 2013. Gross profit for the six months ended 30 June 2014 was RMB208.4 million, representing a 23.8% increase from RMB168.4 million for the six months ended 30 June 2013. This was primarily benefited from revenue growth of the Company’s existing major titles such as legend of Aoqi and Aola star, contributing an increase in average quarterly ARQPA.

For the six months ended 30 June 2014, all key operation metrics grew period-on-period. The average QAA for the Company’s online virtual worlds including Aobi Island, Aola Star, Dragon Knights, Light of Aoya, Legend of Aoqi, Clashes of Aoqi, were approximately 56.2 million, up by 3.1% period-on-period. The average QPA for the Company’s online virtual worlds was approximately 3.3 million, up by 17.9% period-on-period as a result of the increasing popularity of the Company’s virtual worlds. The average quarterly ARQPA for the Company’s online virtual worlds was approximately RMB41.9, up by 15.1% period-on-period which is attributed to the increase in monetization rate of the Company’s virtual worlds as their popularity continued to increase.

In the first quarter of 2014, the Company launched the mobile version of Quanquan. In June 2014, the Company also launched Magic Fighter ahead of planned September release date to capture the summer season.

Mr. Billy Wu, the CEO of BAIOO, said “With the trust of both parents and children, we continue to deliver strong performance. Our existing virtual worlds continued to build momentum and our edutainment ecosystem continued to evolve with the progresses we made with WenTa, an online tutorial platform, as well as other products. I am also very pleased to see another new virtual world being added to our portfolio, which will bring more fun and edutainment experiences to our fans in China.”

Outlook

In the fourth quarter of 2014, the Company plans to explore into a new genre of entertainment product targeting the young teenager market characterized by higher user stickiness and revenue per user. With the characters that have a long-lasting appeal to children, the Company is partnering with a production company to produce the first animation movie. The Company signed an agreement in which it provides the intellectual property licenses and the partner picks up all production costs. This unlocks value in the IP at minimal risk.

“We strive for leading the pre-teenage children’s entertainment market as well as exploring new products into the lucrative young teenager market aged between 14-16,” Billy concluded.

– End –

About BAIOO

The Company operates the largest online entertainment destination designed for children as measured by revenue in 2013. Its web portal page, 100bt.com, is a centralized platform for interactive children’s content through which users can access all six of its virtual worlds and entertainment, e-learning and other products and services using one registered account. Representing its core brand values of “Dreams, Friendship and Development,” BAIOO’s virtual worlds and their characters have gained strong awareness among children and parents in China. As the leading provider of interactive online content for children in China, the Company has accumulated an extensive knowledge base and deep understanding of children’s behavior and needs with respect to online activity and consumption. Through BAIOO’s commitment to create a safe and fun environment with age-appropriate content and its understanding of children’s needs, the Company’s products and services have gained the trust of parents and regulators. Leveraging the Company’s competitive strengths, BAIOO plans to pursue a variety of growth strategies, including increasing its addressable market, expanding its online product offerings, strengthening its brand, and continuing to execute its mobile strategy. The Company also intends to leverage its strong brand recognition, expertise in the industry and unique product development and operating model to expand into new international markets over time and is committed to maximizing shareholder value over time.

TCL Multimedia Announces 2014 Interim Results

Profit attributable to owners of the parent was approximately HK$169 million

Gross profit margin for Q2 in the PRC Market increased to 24.0% from 18.9% of the same period last year

Speed up its transformation to become a global entertainment technology enterprise

HONG KONG, Aug. 14, 2014 /PRNewswire/ —

Highlights:

  •  For the six months ended 30 June 2014:
    • Turnover amounted to approximately HK$15,203 million, down by 15.9% year-on-year.
    • Gross profit amounted to approximately HK$2,382 million, down by 16.1% year-on-year. Operating profit was approximately HK$309 million, down by 6.6% year-on-year. 
    •  Net profit after tax from continuing operations was approximately HK$168 million, down by 13.8% year-on-year. Profit attributable to owners of the parent from continuing operations was approximately HK$169 million, down by 12.4% year-on-year.
  • For the three months ended 30 June 2014:
    • Benefited from optimization of its product mix with the launch of a series of large-sized and high-end new products, gross profit margin for the second quarter in the PRC Market increased to 24.0% (Q2 2013: 18.9%).
    • Operating loss for the Overseas Markets significantly lowered to approximately HK$12 million from approximately HK$60 million for the same period last year.
  • Continued to speed up its strategic transformation to become a global entertainment technology enterprise with the implementation of “double +” strategy:
    • Officially completed capital injection into Huizhou Kuyu Network Technology Co., Ltd. (“Kuyu”) in June 2014 and gained an immediate access to the online-to-offline (O2O) platform, which ensures rapid development of electronic commerce business by operating through Kuyu’s electronic commerce platform.
    • To achieve further breakthroughs in establishing recurring income streams and revenue-sharing model for its businesses, the Group launched game console T2 during the period, and jointly established a cross-industry “TCL Game TV Ecosystem Strategic Alliance” with dominant players in other industries to develop a double-screen integrated game platform. Meanwhile, the Group debuted its new product, 7V Box in July this year. Its ultimate premium appearance and control experience, the innovative cross-screen interactive function, as well as the vast volume of video game content raised the eyebrows of industry peers and consumers.
    •  Extended the “TCL-iQIYI TV+” (“TV+”) product line and further enriched the TV+ platform and introduced TV+ new products.

TCL Multimedia Technology Holdings Limited (“TCL Multimedia” or “the Group”, HKSE stock code: 01070) today announced its unaudited consolidated interim results for the six months ended 30 June 2014.

Performance Overview

For the six months ended 30 June 2014, the Group recorded a turnover of approximately HK$15,203 million, down by 15.9% year-on-year. Gross profit amounted to approximately HK$2,382 million, down by 16.1% year-on-year. Gross profit margin remained flat year-on-year, gross profit margin of the second quarter increased to 18.5% from 13.0%. Expense ratio remained flat year-on-year. Operating profit was approximately HK$309 million, down by 6.6% year-on-year. Net profit after tax from continuing operations was approximately HK$168 million, down by 13.8% year-on-year. Profit attributable to owners of the parent from continuing operations was approximately HK$169 million, down by 12.4% year-on-year. During the period, the Group recorded a one-off gain of approximately HK$159 million from the closure of certain subsidiaries. The Group’s basic earnings per share and basic earnings per share from continuing operations were HK12.78 cents and HK12.78 cents, respectively (Basic earnings per share and basic earnings per share from continuing operations in the same period of 2013: HK19.11 cents and HK14.51 cents, respectively).

For the first half of 2014, the Group sold a total of 7.56 million sets of LCD TVs, down by 2.0% year-on-year. The Group sold 3.56 million sets of LCD TVs in the PRC Market, down 21.7% year-on-year, and 4.00 million sets of LCD TVs in the Overseas Markets, up 26.1% year-on-year, of which the sales volume of LCD TVs in the Strategic OEM business grew by 109.1% year-on-year to 1.38 million sets. According to the latest DisplaySearch report, in the first quarter of 2014, the Group ranked No.5 in the global LCD TV market with a market share of 5.4%. Meanwhile, the Group ranked No.3 in the PRC LCD TV market with a market share of 16.0%.

The PRC Market

Due to the continuing weak market demand, delays in launches of new products in the first quarter as well as the withdrawal of energy saving home appliances subsidy policy in the end of May last year, the sales volume in the PRC Market was below expectations. Nevertheless, the Group continued to optimize its product mix with the launch of a series of large-sized and high-end new products, resulting in a significant improvement in its results for the second quarter. The gross profit margin for the second quarter in the PRC Market increased to 24.0% from 18.9% of the same period last year, up by 5.1 percentage points year-on-year.

In the first half of 2014, the Group launched a total of 26 new products in 8 series, including 13 models of 4K ultra high-definition TVs, covering medium-sized, large-sized and extra-large-sized screen products ranging from 40 inches to 65 inches. These products contributed to 50% of total number of new products launched. During the period under review, the Group extended the “TCL-iQIYI TV+” product line and completed product enrichment of the large-sized 4K ultra high-definition TVs and smart TVs. Among which, new products including “A71” series and Game TV became the top seller within a short period after launch and was highly appreciated by the market, while proportion of sales volume of large-sized products also increased gradually. The sales volume of the smart TVs increased to 1.28 million sets from 1.04 million sets for the same period of last year, contributing to 36.0% of the total LCD TV sales volume in the PRC Market.

In March 2014, the Group, in a cross-industry move, jointly established a “TCL Game TV Ecosystem Strategic Alliance” with China Unicom Broadband, ATET, JD.com and Gameloft to develop a double-screen integrated game platform. Game TV, E5700, E6700 and TCL game console T2 were well received by the market after their launch. As an important step of entering into the game industry by the Group, the Group expects the game product series will become a new business growth driver, and will coordinate with the Group’s internet-oriented and entertainment-oriented transformation, exploring the blue ocean in the game entertainment market.

Moreover, the Group and IMAX Corporation (“IMAX”) jointly signed with Wasu in April 2014 an agreement in relation to the content distribution for premium home theatres. Wasu is authorised to distribute premium digital audio-visual contents of the PRC and Hollywood movie titles on the system platform of premium home theatres of TCL-IMAX Entertainment Co., Limited, a joint venture set up by TCL and IMAX.

The Overseas Market

The Group’s Overseas Markets achieved steady growths both in turnover and operating results. During the first half of 2014, the sales volume of LCD TVs increased by 26.1% year-on-year to 4.00 million sets, mainly due to proactive adjustment of its product mix focusing on large-sized products, 4K ultra high-definition TVs and smart TVs. During the period, turnover in the Overseas Markets increased by 8.2% year-on-year to HK$6,003 million and gross profit margin increased to 10.7% from 8.0% for the same period last year, up by 2.7 percentage points year-on-year. The overall sales volume and the contribution from middle- to large-sized products to the total sales volume fell short of expectations, resulting in a loss of approximately HK$12 million for the second quarter, significantly lower than approximately HK$60 million loss for the same period last year.

Sales volume of LCD TVs in the Emerging Markets reached 2.07 million sets during the period under review, which remained flat compared to the same period last year. The sales volume of the LCD TVs in the Strategic OEM business increased by 109.1% year-on-year, while the sales volume of LCD TVs in European and North American Markets recorded growths of 11.3% and 203.4%, respectively.

The Group hosted intensively various launching events for new products in the Emerging Markets. These, together with its global entertainment marketing activities with the movie “X-Men: Days of Future Past” and the full rollout of social media marketing initiatives, helped enhancing the TCL brand globally and proactively drove product marketing. In the European Markets, the Group actively cooperated with major retail chains comprehensively, resulting in a higher proportion of sales volume of large-sized smart TVs. Also, the Group ranked No.3 in the ultra high-definition TVs market in France, according to GfK figure with a market share of 11.6%. In the North American Market, the Group has not only reinforced its strategic cooperation with Amazon, but has also actively explored other sales channels, including leading US retailers such as Sam’s Club, etc., driving a significant increase in LCD TV sales volume in that market.

Outlook

Looking ahead to the second half of 2014, the Group will persistently enrich the product line for the PRC Market in the second half of the year, and continue to deepen sales channel and organizational reforms to flatten its enterprise structure further in order to boost its terminal sales capability and agility to changes in the market. The Group joined forces with “The Voice of China”, the hottest professional music show in the PRC, and announced TCL to be the “exclusive collaborative partner from the TV industry for The Voice of China – Season 3” in July 2014, accelerating the rapid rise of the popularity of TV+, a great step for transforming into an entertainment enterprise.

In addition, in the same month, the Group participated in the 12th China Digital Entertainment Expo & Conference (China Joy) in Shanghai, the PRC. The Group joined forces with China Unicom Broadband and ATET again and announced the establishment of the largest Game TV ecosystem in the PRC, with renowned game developers including Gameloft, JJ International Company, Rovio, Marmalade, Cyberfront Korea, J-FLOW to be enrolled to “TCL Game TV Ecosystem Strategic Alliance”, as a move to further facilitate the all-round development of the ecosystem. Meanwhile, the Group debuted its new product, 7V Box in China Joy, with its ultimate premium appearance and control experience, the innovative cross-screen interactive function, as well as the vast volume of video game content raised the eyebrows of industry peers and consumers. The Group strives to enhance its product capabilities for the new businesses, such as games and OTT etc., so as to achieve further breakthroughs in establishing recurring income streams and revenue-sharing model for its businesses.

For the Overseas Markets, the Group will seek to drive sales growth with a combination of product resources, screen strategies and pricing, achieve breakthroughs for the TCL brand in key market and proactively exploit synergies with other businesses of TCL Corporation (“TCL Corporation”). TCL branded products like mobile phones and air conditioners etc. will be introduced in markets like Southeast Asia, etc., to raise the overall TCL brand influence in overseas.

Mr. Hao Yi, Chief Executive Officer of TCL Multimedia said, “We launched the ‘double +’ strategic transformation in February this year which is the combination of ‘intelligence + internet’ and ‘products + services’, marking TCL’s new business model from the product-oriented approach to a product-and-user-oriented approach and unveils our internet-oriented road. On one hand, we will step up the establishment of an internet ecosystem by cementing our hardware business and enhancing our horizontal alliances, deepening cross-industry strategic cooperations in other areas. On the other hand, we will strengthen our business layout along the 4 smart service platforms including video platform, game platform, education platform and living platform, providing users a comprehensive entertainment solution. We will fully capitalize on TCL Corporation’s resource advantages and implement ‘double +’ strategic transformation, gradually transforming into a global entertainment technology enterprise and bringing long-term value and returns to its shareholders.”

The Group’s sales volume of TVs by regions during the period under review is as follows:

1H 2014

1H 2013

Change

(000 sets)

(000 sets)

LCD TVs

7,557

7,715

(2.0%)

of which: LED backlights LCD TVs

7,558

7,328

+3.1%

Smart TVs 

1,412

1,138

+24.1%

3D TVs

837

1,335

(37.3%)

–        PRC Market

3,557

4,542

(21.7%)

–        Overseas Market

4,000

3,173

+26.1%

~ End ~

About TCL Multimedia

Headquartered in China, TCL Multimedia Technology Holdings Limited (HKSE stock code: 01070) is one of the leading players in the global TV industry, engaged in the research and development, manufacturing and distribution of consumer electronic products. Through a new product-and-user-oriented business model that focuses primarily on a “double +” strategy which includes “intelligence + internet” and “products + services” as the main direction, striving to become a global entertainment technology enterprise that provides integrated entertainment solution to customers. According to the latest DisplaySearch report, the Group ranked No.5 in the global LCD TV market with a market share of 5.4% in the first quarter of 2014. The Group ranked No.3 in the PRC LCD TV market with a market share of 16.0%.

For more information, please visit its website: http://multimedia.tcl.com

To see the full version of this release, including financial tables, click here: http://photos.prnasia.com/prnk/20140814/8521404591

DKSH Holding Ltd. Announces Half-Year Report 2014

Weakness in Asian Currencies Overshadows Solid Growth in Local Markets

ZURICH, Aug. 11, 2014 /PRNewswire/ —

  • Net sales growth of 6.7% at constant exchange rates
  • Depreciation of Asian currencies impact results negatively by 9.6%
  • Operating profit in a challenging market environment, at constant exchange rates, slightly above last year’s level
  • Impact from political unrest in Thailand more profound than expected at the beginning of the year
  • DKSH confirms outlook

Key figures of DKSH (in CHF millions)

At constant

exchange rates[1]

In CHF

In CHF

H1 2014

       Change in %

H1 2014

Change in %

H1 2013

Net sales

5,071.8

6.7%

4,618.4

(2.9%)

4,754.5

Operating profit (EBIT)

144.8

1.4%

131.4

(8.0%)

142.8

Profit after tax

99.8

(4.9%)

91.7

(12.6%)

104.9

Free cash flow

166.7

(2.4%)

136.7

(20.0%)

170.8

Earnings per share (in CHF)

1.41

(11.9%)

1.60

Number of employees[2]

27,159

1.7%

26,693

[1] Against the backdrop of substantial foreign exchange rate depreciations and to make operating performance comparable, DKSH has since the full-year 2013 results communicated figures as well at constant exchange rates. For constant exchange rates, the 2014 figures have been converted at 2013 exchange rates

[2] As of December 31, 2013

DKSH (SIX: DKSH), the leading Market Expansion Services provider with a focus on Asia, continued to grow in the first half-year of 2014 at constant exchange rates in a challenging market environment. All Business Units and major countries positively contributed to net sales growth.

Net sales grew by 6.7% at constant exchange rates to CHF 5,071.8 million. Organic growth was 6.0%, while just 0.7 percentage points of net sales growth resulted from M&A activities. The depreciation of Asian currencies impacted net sales in total by 9.6%. Reported in Swiss francs, net sales accordingly reached CHF 4,618.4 million.

Despite the challenging political situation in our main market, Thailand, operating profit before interest and taxes (EBIT) at constant exchange rates increased by 1.4% and reached CHF 144.8 million. Reported in Swiss francs, EBIT accordingly reached CHF 131.4 million. Political unrest in Thailand was more profound and enduring than expected at the beginning of the year, resulting in negative economic growth. Over the past months, this caused a temporary lower demand for consumer goods, higher-margin luxury and lifestyle products as well as reduced industrial investments. The military takeover at the end of May, however, helped to stabilize the situation.

Profit after tax (PAT) has been impacted by profit hedging costs and accordingly reached CHF 99.8 million at constant exchange rates. Reported in Swiss francs, PAT accordingly reached CHF 91.7 million.

Although net sales grew in the first six months of 2014, free cash flow achieved, at constant exchange rates, CHF 166.7 million thanks to sound working capital management and thereby almost reached the high level of last year.

Dr. Joerg Wolle, President & CEO of DKSH, commented: “Despite the challenging market environment, DKSH again reported solid growth in numerous markets. This was achieved on the back of our robust business model and the rigorous implementation of our strategy.”

DKSH’s strategy for sustainable, profitable growth is centered on growing organically, through expanding business with existing clients, multiplying success stories from country to country and new business development, complemented by strategic bolt-on acquisitions.

DKSH continued to invest in the skills and training of its employees, its most important asset. At the end of June 2014, DKSH employed 27,159 specialists worldwide, representing an increase of 466 people or 1.7% compared to the year-end of 2013.

Confirmation of outlook

Commenting on the outlook Dr. Joerg Wolle said: “From today’s perspective, we expect to achieve a 2014 result which is above the record year 2013. This assuming constant exchange rates. The increasingly difficult political situation in our main market Thailand has temporarily resulted in lower demand for consumer goods and in reduced investment activities. While the current situation does not allow for providing an accurate forecast for the year, we are cautiously optimistic. This based on the recently improved consumer confidence index and increased growth forecasts for the Thai economy. The recent weeks can be considered as a potential trend reversal after thirteen months of continuously declining consumer confidence.

The growth outlook for our markets and the attractiveness of our business model remain very good. Because of increased uncertainty and complexity in some Asian markets, clients are increasingly outsourcing sales and distribution of their products in Asia to transparent and reliable partners like DKSH. Demand for our services therefore continues to rise. With our strongly diversified and scalable business model, DKSH is ideally positioned to benefit from the growing middle class, rising inner-Asian trade and increased outsourcing to specialist services providers like DKSH.”

Building on these firm foundations and based on current market views, as well as constant exchange rates, DKSH is confident of achieving over a three-year time frame up to 2016 net sales of around CHF 12 billion at a compound annual growth rate (CAGR) of 8%. Within the same time frame EBIT is expected to grow at a CAGR of 10% to a level of around CHF 380 million, which should translate into profit after tax of some CHF 270 million.

Analyst and investor conference/webcast

The live webcast of today’s media conference will be held at 9:30 a.m. CET (in German) and the live webcast of today’s analyst and investor conference will be held at 11 a.m. CET (in English). A recording of the webcast will be available on DKSH’s website.

Half-Year Report

The Half-Year Report 2014 is available for download at: Half-Year Report 2014

To see the full version of this release, including financial tables, click here: http://photos.prnasia.com/prnk/20140811/8521404509-b

About DKSH Group

DKSH is the leading Market Expansion Services provider with a focus on Asia. As the term “Market Expansion Services” suggests, DKSH helps other companies and brands to grow their business in new or existing markets.

Publicly listed on the SIX Swiss Exchange since March 2012, DKSH is a global company headquartered in Zurich. With 735 business locations in 35 countries — 710 of them in Asia — and 27,200 specialized staff, DKSH generated net sales of CHF 9.6 billion in 2013.

The company offers a tailor-made, integrated portfolio of sourcing, marketing, sales, distribution, and after-sales services. It provides business partners with expertise as well as on-the-ground logistics based on a comprehensive network of unique size and depth. Business activities are organized into four specialized Business Units that mirror DKSH fields of expertise: Consumer Goods, Healthcare, Performance Materials, and Technology.

With strong Swiss heritage, the company has nearly a 150-year-long tradition of doing business in and with Asia, and is deeply rooted in communities and businesses across Asia Pacific.

Pembina Pipeline Corporation Reports Strong Second Quarter 2014 Results and Continues Executing Growth Plans Across All Core Areas

All financial figures are in Canadian dollars unless noted otherwise. This news release contains forward-looking statements and information that are based on Pembina Pipeline Corporation’s (“Pembina” or the “Company”) current expectations, estimates, projections and assumptions in light of its experience and its perception of historic trends. Actual results may differ materially from those expressed or implied by these forward-looking statements. Please see “Forward-Looking Statements & Information” herein and in the Company’s Management’s Discussion & Analysis for the period ended June 30, 2014 (“MD&A”) for more details. This news release also refers to financial measures that are not defined by Generally Accepted Accounting Principles (“GAAP”), as identified herein. For more information about the measures which are not defined by GAAP see “Non-GAAP and Additional GAAP Measures” herein and in the MD&A, which is available on SEDAR at www.sedar.com.

CALGARY, Alberta, Aug. 9, 2014 /PRNewswire/ — Pembina Pipeline Corporation (“Pembina” or the “Company”) (TSX: PPL; NYSE: PBA) announced today that it achieved strong financial and operational performance during the second quarter of 2014.

Financial Overview

($ millions, except where noted)

3 Months Ended
June 30

6 Months Ended
June 30

2014

2013

2014

2013

Revenue

1,606

1,175

3,365

2,424

Net revenue(1)

360

295

807

610

Operating margin(1)

269

208

619

448

Gross profit

214

177

516

381

Earnings

77

93

224

184

Earnings per common share – basic and diluted (dollars)

0.21

0.30

0.65

0.61

EBITDA(1)

235

185

551

396

Cash flow from operating activities

155

151

416

383

Cash flow from operating activities per common share – basic (dollars)(1)

0.48

0.49

1.30

1.27

Adjusted cash flow from operating activities(1)

191

150

455

352

Adjusted cash flow from operating activities per common share – basic (dollars)(1)

0.59

0.49

1.42

1.16

Common share dividends declared

140

125

274

246

Preferred share dividends declared

7

13

Dividends per common share (dollars)

0.43

0.41

0.85

0.81

Capital expenditures

298

223

585

360

(1)

Refer to “Non-GAAP and Additional GAAP Measures.”

“During the second quarter of 2014, Pembina achieved strong financial results while securing an additional $460 million in new capital projects and increasing our dividend by 3.6 percent in May,” said Mick Dilger, Pembina’s President and Chief Executive Officer. “Our adjusted cash flow saw increases from our ongoing operating activities and both the completion of our Phase I expansions in our Conventional Pipelines business and the start up of our Saturn I facility. Our third fractionator at our Redwater site, which was announced during the quarter, will see the current fractionation capacity at our facility almost triple once it’s brought on-stream.”

Mr. Dilger added: “In addition to our financial results during the quarter, which included record performance by most measures, as well as the positive results thus far on our construction projects, I am most pleased about how well we performed with respect to safety. We marked over 100,000 incident-free man hours at our Redwater II construction project and for the first six months of 2014, Pembina had zero recordable lost time injuries, both amazing accomplishments.”

Revenue increased 37 percent in the second quarter of 2014 to $1.6 billion from $1.2 billion in the same period of the prior year and 39 percent year-to-date compared to the first half of 2013. Net revenue increased 22 percent to $360 million during the second quarter of 2014 from $295 million during the same period of 2013. This increase was due to strong performance in Pembina’s Midstream business resulting from high volumes and positive pricing, as well as revenue generated by new capital investments, namely the Saturn I Facility and the crude oil, condensate and natural gas liquids (“NGL”) Conventional Pipelines expansions (the “Phase I Expansions”). Year-to-date net revenue in 2014 was $807 million compared to $610 million during the same period of 2013. The increase relative to the prior period was due to the same factors that contributed to the higher revenue and net revenue during the second quarter of 2014.

Operating expenses were $91 million during the second quarter of 2014, unchanged from the second quarter of 2013 due to timing of integrity-related spending. For the six months ended June 30, 2014, operating expenses were $186 million compared to $168 million in the same period of 2013. The increase in operating expenses for the first half of 2014 was largely the result of new assets in service, particularly the Phase I Expansions in the Company’s Conventional Pipelines business and the Saturn I Facility in the Company’s Gas Services business.

Operating margin totalled $269 million during the second quarter of 2014, up 29 percent from the same period last year when operating margin totalled $208 million. For the first six months of 2014, operating margin was $619 million compared to $448 million for the same period of 2013. These increases were primarily the result of the same factors that impacted revenue, net revenue and operating expenses for the periods, as discussed above.

Depreciation and amortization included in operations rose to $51 million during the second quarter of 2014 compared to $32 million during the same period in 2013. This increase was primarily a result of the $13 million impairment of non-core trucking-related assets during the second quarter of 2014 and the growth in Pembina’s asset base since the prior period. For the six months ended June 30, 2014, depreciation and amortization included in operations was $103 million compared to $74 million in the first half of 2013 for the same reasons noted above.

Increased revenue and operating margin contributed to gross profit of $214 million during the second quarter and $516 million during the first six months of 2014 compared to $177 million and $381 million during the relative periods of the prior year. This represents a 21 percent and 35 percent increase, respectively.

For the three and six month period ending June 30, 2014, Pembina incurred general and administrative expenses (excluding corporate depreciation and amortization) of $33 million and $68 million compared to $23 million and $55 million during the same periods of 2013. These increases were primarily due to the addition of new employees and consultants resulting from Pembina’s growth since the second quarter and first half of 2013 as well as increased short-term and share-based incentive expenses resulting from the Company’s higher share price. Every $1 change in share price is expected to change Pembina’s annual share-based incentive expense by approximately $1 million.

Net finance costs in the second quarter of 2014 were $50 million compared to $25 million in the second quarter of 2013. For the first six months of 2014, net finance costs were $111 million compared to $76 million in the same period of the prior year. Higher net finance costs were primarily attributed to an increase in the unrealized loss relating to the revaluation of the conversion feature of the Company’s convertible debentures as a result of the appreciation in Pembina’s common share price during the second quarter and first half of 2014, and increased interest expense related to issuing $600 million in senior unsecured medium-term notes on April 4, 2014.

Income tax expense was $51 million for the second quarter of 2014, including current taxes of $15 million and deferred taxes of $36 million, compared to $32 million, including current taxes of $9 million and deferred taxes of $23 million in the same periods of 2013. The current taxes increased during the quarter as a result of the full utilization of certain tax pools in 2013. Deferred income tax expense arises from the difference between the accounting and tax basis of assets and liabilities. Income tax expense was $107 million for the six months ended June 30, 2014, including current taxes of $49 million and deferred taxes of $58 million, compared to current taxes of $13 million and deferred taxes of $49 million in the same period of 2013.

Pembina generated EBITDA of $235 million during the second quarter of 2014 compared to $185 million during the second quarter of 2013 and $551 million during the first half of 2014 compared to $396 million during the first half of 2013. These increases were largely due to improved results from operating activities in Pembina’s businesses which included returns on new assets, expansions and services as discussed above.

The Company’s earnings decreased to $77 million ($0.21 per common share) during the second quarter of 2014 compared to $93 million ($0.30 per common share) during the second quarter of 2013. Despite improved operating margin, earnings decreased due to higher income tax expense and net finance costs, as well as increased depreciation due to the impairment of non-core trucking-related assets during the quarter ended June 30, 2014, as described above. Earnings were $224 million ($0.65 per common share) during the first half of 2014 compared to $184 million ($0.61 per common share) during the same period of the prior year. The year-to-date increase was mostly due to stronger operating margin for the first half of the year in 2014 compared to the same period in 2013.

Cash flow from operating activities was $155 million ($0.48 per common share) during the second quarter of 2014 compared to $151 million ($0.49 per common share) for the same period last year. The increase was primarily due to improved results from operating activities and a larger decrease in non-cash working capital in 2014 than in the same period in 2013. For the six months ended June 30, 2014, cash flow from operating activities was $416 million ($1.30 per common share) compared to $383 million ($1.27 per common share) during the same period last year. The year-to-date increase was primarily due to improved results from operating activities as well as a decrease in non-cash working capital in 2014 compared to a slight increase in 2013.

Adjusted cash flow from operating activities was $191 million ($0.59 per common share) during the second quarter of 2014 compared to $150 million ($0.49 per common share) during the second quarter of 2013. For the six months ended June 30, 2014, adjusted cash flow from operating activities was $455 million ($1.42 per common share) compared to $352 million ($1.16 per common share) during the same period last year. The increases for the three and six month periods were primarily due to higher cash flow from operating activities despite increased current taxes, share-based payment expenses and preferred share dividends declared.

Operating Results

3 Months Ended
June 30

6 Months Ended
June 30

(mbpd, except where noted)(1)

2014

2013

2014

2013

Conventional Pipelines throughput

573

484

563

489

Oil Sands & Heavy Oil contracted capacity

880

870

880

870

Gas Services average volume processed (mboe/d) net to Pembina(2)

87

48

88

49

Midstream NGL sales volume

105

94

119

108

Total volume

1,645

1,496

1,650

1,516

(1)

mbpd is thousands of barrels per day.

(2)

Gas Services average volume processed converted to mboe/d (thousands of barrels of oil equivalent
per day) from million cubic feet per day (“MMcf/d”) at 6:1 ratio.

3 Months Ended
June 30

6 Months Ended
June 30

2014

2013

2014

2013

($ millions)

Net
Revenue(1)

Operating
Margin(1)

Net
Revenue(1)

Operating
Margin(1)

Net
Revenue(1)

Operating
Margin(1)

Net
Revenue(1)

Operating
Margin(1)

Conventional Pipelines

122

77

101

65

239

154

197

126

Oil Sands & Heavy Oil

48

33

51

33

100

67

94

64

Gas Services

39

26

28

17

81

55

56

36

Midstream

151

131

114

92

387

340

262

220

Corporate

2

1

1

3

1

2

Total

360

269

295

208

807

619

610

448

(1)

Refer to “Non-GAAP and Additional GAAP Measures.”

  • Second quarter and first half of 2014 financial and operating results in Conventional Pipelines were higher than the comparable periods of 2013 primarily because of the Phase I Expansions being placed into service in December 2013. Improved revenue for both periods was partially offset by higher operating expenses relating mainly to pipeline integrity, environmental and safety matters, volume growth and the Phase I Expansions. The Phase I Expansions increased crude oil and condensate capacity on the Peace Pipeline by 40 mbpd and NGL capacity on the Peace Pipeline and Northern System by 52 mbpd.
  • Oil Sands & Heavy Oil second quarter results remained consistent year over year despite decreased net revenue due to lower flow through operating costs. In Oil Sands & Heavy Oil, the increases in net revenue and operating margin during the first half of 2014 compared to the same period of 2013 were primarily related to higher volumes transported on the Nipisi Pipeline during the 2014 periods. This is due to the completion of a new pump station on that system, which was placed into service in the second quarter of 2013.
  • Gas Services’ financial and operating results were higher in the second quarter and first half of 2014 than the same periods of 2013 mainly because of the new 200 MMcf/d Saturn I Facility, which was placed into service in October 2013, as well as higher volumes and greater facility reliability leading to increased processing fees and operating recoveries at the Company’s Musreau shallow cut and deep cut facilities.
  • In Midstream, improved second quarter and first half of 2014 results were largely due to a stronger propane market across North America caused by extended periods of colder-than-average temperatures during the winter, higher sales volumes, stronger margins, additional fee-for-service storage cavern revenue and enhanced service offerings.

Growth Project Update

On May 12, 2014, Pembina announced having secured an additional $460 million in new capital projects, including the 55 mbpd propane-plus fractionator (“RFS III”) at its existing Redwater fractionation and storage complex (“Redwater“).

RFS III, which is underpinned by long-term take-or-pay contracts with multiple producers, will be the third fractionator at Pembina’s Redwater complex and will leverage the design and engineering work completed for Pembina’s first and second fractionators (“RFS I” and “RFS II”). Subsequent to the end of the second quarter, Pembina contracted the majority of the remaining capacity at RFS III.

With the addition of RFS III, Pembina’s fractionation capacity will total 210 mbpd, making the Company’s Redwater complex the largest fractionation facility in Canada. Certain components of RFS III will be upsized and the site will be designed to accommodate a de-ethanizer tower in the future, should Pembina receive commercial support to backstop such an expansion. Subject to regulatory and environmental approvals, Pembina expects RFS III to be in-service in the third quarter of 2017.

In conjunction with building RFS III, Pembina also plans to construct two new pipeline laterals into the Willesden Green area in south-central Alberta at an estimated cost of approximately $60 million. The project, which is underpinned by long-term take-or-pay contracts, entails installing approximately 56 kilometres of high vapour pressure (“HVP”) pipeline and 16 km of low vapour pressure (“LVP”) pipeline, along with other associated infrastructure. The HVP pipeline will be connected to Pembina’s Brazeau Pipeline and will be capable of transporting ethane-plus NGL from the field for delivery into the Fort Saskatchewan area. The LVP pipeline will be tied into Pembina’s Drayton Valley system and will deliver condensate into the Edmonton market. Subject to regulatory and environmental approval, Pembina expects both laterals to be in-service in mid-2015. As a result of the ethane-plus lateral, an additional 10 mbpd of capacity will be under long-term contract for fractionation at Pembina’s Redwater complex.

During the second quarter of 2014, Pembina spent $298 million in capital to progress its growth initiatives as follows:

  • In the Company’s Conventional Pipelines business, work continued on the Phase II crude oil, condensate and NGL expansions (“Phase II Expansions”). With respect to the crude oil and condensate portion, Pembina expects the project to be mechanically complete late in 2014 and commissioned in early-2015. Subject to regulatory approval, Pembina expects the NGL component of the project to be in-service in mid-2015.
  • The Company placed its previously announced pipeline expansion between Simonette and Fox Creek, Alberta into service on August 6, 2014.
  • Stakeholder consultation continues on the Company’s previously announced Phase III pipeline expansion (the “Phase III Expansion”) and Pembina anticipates filing regulatory applications for the project in the third quarter of 2014. Subject to regulatory and environmental approvals, Pembina expects this expansion to be in-service between late-2016 and mid-2017. Over the next several months, the Company is continuing work to secure further pipeline transportation commitments from customers while it refines the project scope. Subsequent to the end of the second quarter, Pembina secured an additional commitment of approximately 20 mbpd of capacity under a long-term contract. Any further commitments made before Pembina begins to order long-lead equipment would support increasing the design capacity of the Phase III Expansion.
  • The Company is also making progress on its previously announced plans to extend the presence of its infrastructure into the Edson, Alberta area. The Company expects to spend approximately $100 million to complete work on two pipelines – one new NGL pipeline and one existing pipeline – between Edson and Fox Creek/Windfall junction and construct an NGL and condensate truck terminal near Edson. The estimated capital includes approximately $23 million associated with a pipeline acquisition which was announced in November 2013. Pembina expects that the new NGL pipeline will have a capacity of approximately 50 mbpd. The existing pipeline, which has a capacity of approximately 13 mbpd, will be transitioned into dedicated condensate use. A portion of both of these pipelines is under long-term take-or-pay contracts. Subject to regulatory approval, Pembina expects to bring the new NGL pipeline into service and transition the other pipeline into dedicated condensate service in early-2016 and bring the truck terminal into service in late-2016. Volumes aggregated from these pipelines and the truck terminal will access capacity on the segment of Pembina’s Phase III Expansion from Fox Creek into Edmonton, Alberta.
  • At the Company’s Resthaven Facility, Pembina is currently progressing pre-commissioning activities and has completed 90 percent of site construction to date. The Company expects to bring the facility and associated pipelines into service by the end of the third quarter of 2014.
  • Pembina’s Midstream business placed a new full-service truck terminal in the Cynthia area of Alberta into service on June 16, 2014.
  • At Pembina’s previously announced $415 million RFS II project (a second 73 mbpd ethane-plus fractionator at Pembina’s Redwater site), the Company continued to progress facility construction during the second quarter of 2014. Long-lead equipment purchasing is substantially complete, with all major items expected to be delivered to the site by the end of the third quarter of 2014. The mechanical contractor mobilized to the site at the start of April 2014 and structural steel and piping is currently being installed. The project is on schedule and is anticipated to be on-stream late in the fourth quarter of 2015.

Financing Activity

On April 4, 2014, Pembina closed its offering of $600 million of senior unsecured medium-term notes. The notes have a fixed interest rate of 4.81 percent per annum, paid semi-annually, and will mature on March 25, 2044. The Company used a portion of the proceeds from the notes offering to repay the $75 million senior unsecured term facility on April 7, 2014 and the $175 million senior unsecured notes (Series A) on June 16, 2014. Pembina intends to use the remainder of the proceeds to partially fund capital projects and for other general corporate purposes.

Second Quarter 2014 Conference Call & Webcast

Pembina will host a conference call on Monday, August 11, 2014 at 8:00 a.m. MT (10:00 a.m. ET) for interested investors, analysts, brokers and media representatives to discuss details related to the 2014 second quarter. The conference call dial-in numbers for Canada and the U.S. are 647-427-7450 or 888-231-8191. A recording of the conference call will be available for replay until August 18, 2014 at 11:59 p.m. ET. To access the replay, please dial either 416-849-0833 or 855-859-2056 and enter the password 41639054.

A live webcast of the conference call can be accessed on Pembina’s website at www.pembina.com under Investor Centre, Presentation & Events, or by entering: http://event.on24.com/r.htm?e=742975&s=1&k=55D46AA972D970311CA2D1FF6454F2EB in your web browser. Shortly after the call, an audio archive will be posted on the website for a minimum of 90 days.

About Pembina

Calgary-based Pembina Pipeline Corporation is a leading transportation and midstream service provider that has been serving North America’s energy industry for 60 years. Pembina owns and operates pipelines that transport various hydrocarbon liquids including conventional and synthetic crude oil, heavy oil and oil sands products, condensate (diluent) and natural gas liquids produced in western Canada. The Company also owns and operates gas gathering and processing facilities and an oil and natural gas liquids infrastructure and logistics business. With facilities strategically located in western Canada and in natural gas liquids markets in eastern Canada and the U.S., Pembina also offers a full spectrum of midstream and marketing services that spans across its operations. Pembina’s integrated assets and commercial operations enable it to offer services needed by the energy sector along the hydrocarbon value chain.

Forward-Looking Statements & Information

This document contains certain forward-looking statements and information (collectively, “forward-looking statements”), including forward-looking statements within the meaning of the “safe harbor” provisions of applicable securities legislation, that are based on Pembina’s current expectations, estimates, projections and assumptions in light of its experience and its perception of historical trends. In some cases, forward-looking statements can be identified by terminology such as “schedule”, “will”, “expects”, “plans”, “anticipates”, “intends”, “should”, “anticipates”, “estimates” and similar expressions suggesting future events or future performance.

In particular, this document contains forward-looking statements pertaining to, without limitation, the following: Pembina’s corporate strategy; future dividends which may be declared on Pembina’s common shares; planning, construction, capital expenditure estimates, schedules, expected capacity, incremental volumes, in-service dates, rights, activities and operations with respect to planned new construction of, or expansions on existing, pipelines, gas services facilities, terminalling, storage and hub facilities, and; the anticipated use of proceeds from financing.

The forward-looking statements are based on certain assumptions that Pembina has made in respect thereof as at the date of this news release regarding, among other things: oil and gas industry exploration and development activity levels; the success of Pembina’s operations and growth projects; prevailing commodity prices and exchange rates and the ability of Pembina to maintain current credit ratings; the availability of capital to fund future capital requirements relating to existing assets and projects; expectations regarding participation in Pembina’s dividend reinvestment plan; future operating costs; geotechnical and integrity costs; that any third party projects relating to Pembina’s growth projects will be sanctioned and completed as expected; that any required commercial agreements can be reached; that all required regulatory and environmental approvals can be obtained on the necessary terms in a timely manner; that counterparties will comply with contracts in a timely manner; that there are no unforeseen events preventing the performance of contracts or the completion of the relevant facilities; that there are no unforeseen material costs relating to the facilities which are not recoverable from customers; interest and tax rates; prevailing regulatory, tax and environmental laws and regulations; maintenance of operating margins; the amount of future liabilities relating to environmental incidents; and the availability of coverage under Pembina’s insurance policies (including in respect of Pembina’s business interruption insurance policy).

Although Pembina believes the expectations and material factors and assumptions reflected in these forward-looking statements are reasonable as of the date hereof, there can be no assurance that these expectations, factors and assumptions will prove to be correct. These forward-looking statements are not guarantees of future performance and are subject to a number of known and unknown risks and uncertainties including, but not limited to: the regulatory environment and decisions; the impact of competitive entities and pricing; labour and material shortages; reliance on key relationships and agreements; the strength and operations of the oil and natural gas production industry and related commodity prices; non-performance or default by counterparties to agreements which Pembina or one or more of its affiliates has entered into in respect of its business; actions by governmental or regulatory authorities including changes in tax laws and treatment, changes in royalty rates or increased environmental regulation; fluctuations in operating results; adverse general economic and market conditions in Canada, North America and elsewhere, including changes in interest rates, foreign currency exchange rates and commodity prices; and certain other risks detailed from time to time in Pembina’s public disclosure documents available at www.sedar.com. This list of risk factors should not be construed as exhaustive.

Readers are cautioned that events or circumstances could cause results to differ materially from those predicted, forecasted or projected. The forward-looking statements contained in this document speak only as of the date of this document. Pembina does not undertake any obligation to publicly update or revise any forward-looking statements or information contained herein, except as required by applicable laws. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.

Non-GAAP and Additional GAAP Measures

In this news release, Pembina has used the terms net revenue, operating margin, earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted cash flow from operating activities, and adjusted cash flow from operating activities per share. Since Non-GAAP and Additional GAAP financial measures do not have a standardized meaning prescribed by GAAP and are therefore unlikely to be comparable to similar measures presented by other companies, securities regulations require that Non-GAAP and Additional GAAP financial measures are clearly defined, qualified and reconciled to their nearest GAAP measure. Except as otherwise indicated, these Non-GAAP and Additional GAAP measures are calculated and disclosed on a consistent basis from period to period. Specific adjusting items may only be relevant in certain periods. The intent of Non-GAAP and Additional GAAP measures is to provide additional useful information to investors and analysts and the measures do not have any standardized meaning under IFRS. The measures should not, therefore, be considered in isolation or used in substitute for measures of performance prepared in accordance with IFRS. Other issuers may calculate the Non-GAAP and Additional GAAP measures differently. Investors should be cautioned that these measures should not be construed as alternatives to net earnings, cash flow from operating activities or other measures of financial results determined in accordance with GAAP as an indicator of Pembina’s performance. For additional information regarding non-GAAP and additional GAAP measures, including reconciliations to measures recognized by GAAP, please refer to the MD&A, which is available on SEDAR at www.sedar.com.

For further information:

Investor Relations
Scott Burrows, Vice President, Capital Markets
(403) 231-3156
1-855-880-7404
e-mail: investor-relations@pembina.com
www.pembina.com