MIRA INFORM REPORT

Report Date :

13.04.2007

IDENTIFICATION DETAILS

Name :	PHILIPS ELECTRONICS SINGAPORE PTE LTD
Registered Office :	^620a Lorong 1 Toa Payoh 319762
Country :	^Singapore
Legal Form :	Pte Ltd
Line of Business :	Manufacturing of Audio and video Combination Equipments

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear

Subject Company

PHILIPS ELECTRONICS SINGAPORE PTE LTD

Line Of Business 

MANUFACTURING OF AUDIO AND VIDEO COMBINATION EQUIPMENT

Parent Company

NATIONAL TRUST COMPANY

(PERCENTAGE OF SHAREHOLDING: 100%)

Financial Elements

FY 2005

GROUP

Sales : S$2,803,123,000

Networth : S$ 222,617,000

Paid-Up Capital : S$ 186,014,000

Net result : S$ 38,932,000

Net Margin(%) : 1.39

Return on Equity(%) : 17.49

Leverage Ratio : 4.62

BUSINESS INFORMATION REPORT

COMPANY IDENTIFICATION

^{Subject Company : PHILIPS ELECTRONICS SINGAPORE PTE LTD}

^{Former Name : PHILLIPS CONSUMER COMMUNICATIONS ASIA PACIFIC PTE LTD}

^{Business Address : 620A LORONG 1 TOA PAYOH}

^{Town : SINGAPORE}

^{Postcode : 319762}

^{County : -}

^{Country : Singapore}

^{Telephone : 6882 3000}

^{Fax : 6253 8927}

^{ROC Number : 199705989C}

^{Reg. Town : -}

PREVIOUS IDENTIFICATION

^{PHILIPS CONSUMER COMMUNICATIONS ASIA PACIFIC PTE LTD}

^{DATE: (28/08/1997)}

SUMMARY

^{All amounts in this report are in: SGD}

^{Legal Form : Pte Ltd}

^{Date Inc. : 28/08/1997}

^{Previous Legal Form : -}

^{Summary year : 31/12/2005}

^{Sales : 2,803,123,000}

^{Networth : 222,617,000}

^{Capital : -}

^{Paid-Up Capital : 186,014,000}

^{Employees : 6,705}

^{Net result : 38,932,000}

^{Share value : 1}

^{Auditor : KPMG}

^{BASED ON ACRA'S RECORD AS AT 09/04/2007:}

^{NO OF SHARE CURRENCY AMOUNT}

^{ISSUED ORDINARY 201,164,000 SGD 201,164,000.00}

^{PAID-UP ORDINARY - SGD 201,164,000.00}

PRINCIPAL(S)

^{PAULUS PETRUS JOHANNES MARIA BA0228351 Director}

DIRECTOR(S)

^{LIM TAT HOOI S2547673E Director}

^{Appointed on : 06/09/1999}

^{Street : 40 CAIRNHILL ROAD}

^#11-01

^{HILLCOURT APARTMENT}

^{Town : SINGAPORE}

^{Postcode : 229660}

^{Country : Singapore}

^{ONG YEW KHOON S1616722C Director}

^{Appointed on : 01/07/2006}

^{Street : 189B RIVERVALE DRIVE}

^#10-1012

^{Town : SINGAPORE}

^{Postcode : 542189}

^{Country : Singapore}

^{ISRAEL LOUIS ISMAIL S7120110D Company Secretary}

^{Appointed on : 01/10/2006}

^{Street : 583 PASIR RIS STREET 53}

^#05-29

^{Town : SINGAPORE}

^{Postcode : 510583}

^{Country : Singapore}

^{PAULUS PETRUS JOHANNES MARIA BA0228351 Director}

^{Appointed on : 01/01/2007}

^{Street : 10 ADAM PARK}

^{Town : SINGAPORE}

^{Postcode : 289929}

^{Country : Singapore}

^{WONG CHIAO SHAN S7497145H Company Secretary}

^{Appointed on : 01/03/2007}

^{Street : 6 COOLING CLOSE}

^{SERANGOON GARDEN ESTATE}

^{Town : SINGAPORE}

^{Postcode : 558166}

^{Country : Singapore}

FORMER DIRECTOR(S)

^{CHUA AIK HOON @ CHUA IT HOON S0043077C}

^{WONG CHENG HAN S0145043C}

^{CHEN YEE YIN S2003105J}

^{TAN GUET LAN LAUREN S1824378D}

^{SEAH SIEW YIAN S1670866F}

^{KEVIN MAURICE WALSH S00699667}

^{JONATHAN MARCHBANK SE7515133}

^{ROBERT MARTIJNSE F5630144P}

^{ALAN ROBERT SPARKS F5639428K}

^{JOHAN ADRIAAN VAN SPLUNTER F5643990X}

^{CHRISTIAAN DE HOOG F5587217K}

^{ERIK HUBERTUS MARIA GEILENKIRCHEN F5593537T}

^{GERBEN DE JONG Z01180574}

^{MANKARIOS MOURAD BECHIR G5691277R}

^{CARLO ANTHONY VAN DEN AKKER G5568177K}

^{CHEONG FOOK ONN ANDREW S1747083C}

^{NEOH SUE LYNN S1765740B}

ACTIVITY(IES)

^{ELECTRONIC EQUIPMENT And SUPPLIES - WHSLE And MFRS Code: 7640}

^{ENGINEERING WORKS Code: 7880}

^{AUDIO-VISUAL EQUIPMENT And SUPPLIES Code: 1230}

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

SHAREHOLDERS(S)

^{NATIONAL TRUST COMPANY 201,164,000 Company}

^{Street : 8TH FLOOR SCOTI PLAZA}

^{40 KING STREET}

^{Town : TORONTO}

^{Postcode : M5H 1H1}

^{Country : Canada}

FORMER SHAREHOLDER(S)

^{TAN GUET LAN LAUREN 1}

^{SIJZE WILTO PLOKKER 1}

^{PHILIPS CONSUMER COMMUNICATIONS B.V 83,714,000}

HOLDING COMPANY

^{NATIONAL TRUST COMPANY UF08632W % : 100}

SUBSIDIARY(IES)

^{PHILIPS ELECTRONICS SUPPLIES (MALAYSIA) SDN. BHD.}

^{ARIMA DEVICES HOLDING (SINGAPORE) PTE. LTD.}

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality : GOOD}

^{Liquidity : SUFFICIENT}

^{Payments : REGULAR}

^{Trend : LEVEL}

^{Financial Situation : AVERAGE}

FINANCIAL ELEMENTS

^{Audit Qualification: UNQUALIFIED (CLEAN) UNQUALIFIED (CLEAN)}

^{Date Account Lodged: 31/07/2006}

^{Balance Sheet Date: 31/12/2005 31/12/2004}

^{Number of weeks: 52 52}

^{Consolidation Code: CONSOLIDATED CONSOLIDATED}

^{--- ASSETS ---}

^{Preliminary Exp 126,000 1,054,000}

^{Intangible Fixed Assets: 58,359,000 77,061,000}

^{Tangible Fixed Assets: 101,845,000 108,790,000}

^{Investments 7,728,000 7,728,000}

^{Total Fixed Assets: 168,058,000 194,633,000}

^{Inventories: 119,535,000 105,225,000}

^{Receivables: 630,570,000 395,212,000}

^{Cash,Banks, Securitis: 24,540,000 17,861,000}

^{Other current assets: 38,522,000 30,746,000}

^{Total Current Assets: 813,167,000 549,044,000}

^{TOTAL ASSETS: 981,225,000 743,677,000}

^{--- LIABILITIES ---}

^{Equity capital: 186,014,000 186,014,000}

^{Reserves: 2,975,000}

^{Profit & lost Account: 33,628,000 -11,189,000}

^{Total Equity: 222,617,000 174,825,000}

^{L/T deffered taxes: 10,895,000 6,201,000}

^{Other long term Liab.: 2,719,000 4,281,000}

^{Total L/T Liabilities: 13,614,000 10,482,000}

^{Trade Creditors: 627,553,000 461,399,000}

^{Short term liabilities: 576,000 598,000}

^{Due to Bank: 566,000 2,001,000}

^{Provisions: 35,291,000 20,828,000}

^{Other Short term Liab.: 81,008,000 73,544,000}

^{Total short term Liab.: 744,994,000 558,370,000}

^{TOTAL LIABILITIES: 758,608,000 568,852,000}

^{--- PROFIT & LOSS ACCOUNT ---}

^{Net Sales 803,123,000 3,016,028,000}

^{Purchases,Sces & Other Goods: 2,348,132,000 2,584,826,000}

^{Gross Profit: 454,991,000 431,202,000}

^{NET RESULT BEFORE TAX: 63,737,000 10,918,000}

^{Tax : 24,805,000 9,018,000}

^{Net income/loss year: ,932,000 1,900,000}

^{Interest Paid: 71,000 58,000}

^{Depreciation: 38,465,000 37,272,000}

^{Wages and Salaries: 206,617,000 196,665,000}

^{Financial Income: 5,000 15,000}

RATIOS

^{31/12/2005 31/12/2004}

^{Turnover per employee : 418064.58 449817.75}

^{Net result / Turnover(%) : 0.01 0.00}

^{Stock / Turnover(%) : 0.04 0.03}

^{Net Margin(%) 1.39 0.06}

^{Return on Equity 3.97 0.26}

^{Net Working capital : 68173000.00 -9326000.00}

^{Cash Ratio : 0.03 0.03}

^{Quick Ratio : 0.88 0.74}

^{Current ratio : 1.09 0.98}

^{Receivables Turnover : 80.98 47.17}

^{Leverage Ratio : 4.62 5.82}

^{Net Margin : (100*Net income loss year)/Net sales}

^{Return on Equit : (100*Net income loss year)/Total equity}

^{Return on Assets : (100*Net income loss year)/Total fixed assets}

^{Net Working capital : (Total current assets - Total short term liabilities)}

^{Cash Ratio : Cash Bank securities/Total short term liabilities}

^{Quick Ratio : (Cash Bank securities + Receivables)/Total Short term Liabilities}

^{Current ratio : Total current assets/Total short term liabilities}

^{Inventory Turnover : (360*Inventories)/Net sales}

^{Receivables Turnover : (Receivable*360)/Net sales}

^{Leverage Ratio : Total liabilities/(Total equity-Intangible assets)}

FINANCIAL COMMENTS

^{THE FINANCIAL CONDITION OF THE GROUP WAS SEEN TO BE FAIR IN VIEW OF}

^{THE FOLLOWING:}

^{NET WORTH:}

^{THE BALANCE SHEET WAS CONSIDERED PASSABLE WITH NET WORTH IMPROVED BY 27.34% FROM S$174,825,000 IN FY 2004 TO S$222,617,000 IN FY 2005. THIS WAS DUE TO HIGHER ACCUMULATED PROFIT OF S$33,628,000 (2004: S$- 11,189,000); A RISE OF 4.01 TIMES FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 84.24% (2004: 82.63%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO S$627,553,000 (2004: S$461,399,000). THE BREAKDOWN IS AS FOLLOWS:}

^{* TRADE PAYABLES AND ACCRUED OPERATING EXPENSES- 2005: S$400,864,000}

^{(2004: S$227,566,000)}

^{* SUBSIDIARIES - 2005: S$3,294,000 (2004: S$2,949,000)}

^{* RELATED CORPORATIONS - 2005: S$223,395,000 (2004: S$230,884,000)}

^{AMOUNT DUE TO BANKS OF S$566,000 (2004: S$2,001,000) CONSISTED OF:}

^{* BANK OVERDRAFTS - 2005: S$566,000 (2004: S$2,001,000)}

^{IN ALL, LEVERAGE RATIO FELL FROM 5.82 TIMES TO 4.62 TIMES AS A RESULT OF A GREATER RELATIVE RISE IN TOTAL EQUITY THAN TOTAL LIABILITIES.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE AS SEEN FROM THE RISE IN NET WORKING CAPITAL AND LIQUIDITY RATIOS. CURRENT RATIO ROSE TO 1.09 TIMES, UP FROM 0.98 TIMES AND QUICK RATIO IMPROVED TO 0.88 TIMES FROM 0.74 TIMES IN FY 2004.}

^{SIMILARLY, NET WORKING CAPITAL IMPROVED BY 8.31 TIMES FROM S$-}

^{9,326,000.00 IN FY 2004 TO S$68,173,000.}

^{PROFITABILITY:}

^{REVENUE POSTED A DECLINE OF 7.06% FROM S$3,016,028,000 IN FY 2004 TO S $2,803,123,000 BUT NET PROFIT ROSE BY 19.49 TIMES TO S$38,932,000 (2004: S$1,900,000). THIS COULD BE DUE TO HIGHER GROSS MARGIN OF 16.23% IN FY 2005 (2004: 14.30%). HENCE, NET MARGIN ROSE TO 1.39%}

^{(2004: 0.06%).}

^REVENUE:

^{* SALE OF GOODS - 2005: S$2,572,512,000 (2004: S$2,780,103,000)}

^{* SALE OF SERVICES - 2005: S$60,008,000 (2004: S$37,008,000)}

^{* INCOME FROM GENERAL SERVICE AGREEMENTS - 2005: S$170,603,000 (2004:}

^{S$198,917,000)}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT NOT BE EXPECTED IF REVENUE AND EARNINGS CAN BE MAINTAINED AND PAYMENT BY TRADE DEBTORS ARE FORTHCOMING. IN ADDITION, ITS INTEREST COVERAGE WAS HEALTHY CONSIDERING THAT ITS INTEREST EXPENSES WERE LOW AT S$71,000 IN FY 2005 (2004: S$58,000).}

^{NON-CURRENT ASSETS:}

^{THE FOLLOWING ITEMS ARE CLASSIFIED UNDER PRELIMINARY:}

^{* INTEREST-FREE LOANS TO EMPLOYEES - 2005: S$121,000 (2004: S}

^$1,049,000)

^{* OTHER NON-CURRENT ASSETS - 2005: S$5,000 (2004: S$5,000)}

NOTES TO THE FINANCIAL STATEMENTS:

^{BANK OVERDRAFTS:}

^{BANK OVERDRAFTS ARE UNSECURED, BEAR INTEREST AT SINGAPORE PRIMELENDING RATES AND HAVE NO FIXED TERMS OF REPAYMENT.}

^{CONTINGENT LIABILITIES (UNSECURED):}

^{CONTINGENT LIABILITIES RELATING TO LETTERS OF INDEMNITY TO A BANK IN RESPECT OF BANKERS' GUARANTEES ISSUED FOR PERFORMANCE, TENDER AND SECURITY BONDS - 2005: S$10,254,000}

^{(2004: S$14,039,000)}

^{IN 2001, A SUBCONTRACTOR TO A SUBSIDIARY FILED A CLAIM AGAINST A SUBSIDIARY AS FIRST DEFENDANT AND THE COMPANY AS SECOND DEFENDANT FOR BREACH OF CONTRACT AMOUNTING TO S$23,535,000 (2004: S$23,042,000) AND UNPAID BILLS AMOUNTING TO S$660,000 (2004: S$646,000), TOGETHER WITH INTEREST THEREON AT 8% PER ANNUM. THE CLAIM AND UNPAID BILLS ARE}

^{DISPUTED BY THE SUBSIDIARY. THE SUBSIDIARY AND COMPANY HAVE FILED THEIR STATEMENT OF DEFENCE. THE JUDGEMENT FOR THE CASE WAS DELIVERED ON 27 MARCH 2003 WHEREBY THE PLAINTIFF'S CASE WAS DISMISSED WITH COSTS. SUBSEQUENT TO THE JUDGEMENT, THE PLAINTIFF FILED A NOTICE OF APPEAL THEREOF. AS OF TO-DATE, THERE IS NO SUBSEQUENT PROGRESS. NO}

^{PROVISION HAS BEEN MADE IN THE FINANCIAL STATEMENTS AS THE OUTCOME OF THE APPEAL CANNOT BE REASONABLY DETERMINED AT THIS JUNCTURE.}

^{SUBSEQUENT EVENT:}

^{ON THE EFFECTIVE DATE OF THE COMPANIES (AMENDMENT) ACT ON 30 JANUARY 2006, THE CONCEPT OF AUTHORISED SHARE CAPITAL IS ABOLISHED AND ORDINARY SHARES OF THE COMPANY WILL HAVE NO PAR VALUE.}

^{ON 12 OCTOBER 2004, A CUSTOMER FILED A CLAIM OF S$7,400,000 AGAINST THE COMPANY FOR SUPPLYING PRODUCTS WHICH IT ALLEGEDLY CLAIM WERE NOT OF SATISFACTORY QUALITY. THE CLAIM IS DISPUTED BY THE COMPANY BUT TO AVOID PROTRACTED LITIGATION PROCEEDINGS AND LITIGATION COSTS, THE COMPANY REACHED AN OUT OF COURT SETTLEMENT IN APRIL 2006 WITH THE CUSTOMER WHEREBY ON A WITHOUT PREJUDICE BASIS AND WITHOUT ADMISSION OF}

^{ANY LIABILITY, THE COMPANY WILL PAY THE CUSTOMER A SUM OF S$2,000,000 IN FULL AND FINAL SETTLEMENT OF ALL CLAIMS BY THE CUSTOMER AGAINST THE COMPANY. PROVISION MADE FOR THIS DISPUTE AS AT 31 DECEMBER 2005 WAS S $2,000,000.}

^{ON 5 JUNE 2006, THE COMPANY DISPOSED ITS OPTICAL PICK-UP BUSINESS TO ARIMA DEVICES CORPORATION FOR A CONSIDERATION OF S$4,5000,000. THERE IS NO GAIN/LOSS ARISING ON THE DISPOSAL.}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 28/08/1997 AS A LIMITED PRIVATE COMPANY UNDER THE NAMESTYLE OF "PHILIPS CONSUMER COMMUNICATIONS ASIA PACIFIC PTE LTD". SUBSEQUENTLY O 29/07/1999, SUBJECT CHANGED TO ITS PRESENT NAMESTYLE}

^{OF "PHILIPS ELECTRONICS SINGAPORE PTE LTD".}

^{AS AT 09/04/2007, THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 201,064,000 SHARES, OF A VALUE OF S$201,064,000.}

^{PRINCIPAL ACTIVITIES:}

^{SUBJECT IS REGISTERED WITH THE ACCOUNTING & CORPORATE REGULATORY AUTHORITY (ACRA) BE PRINCIPALLY ENGAGED IN THE BUSINESS OF:}

^{1) MANUFACTURING OF AUDIO AND VIDEO COMBINATION EQUIPMENT (EG RADIOS, TELEVISION SETS, RECORD PLAYERS); MANUFACTURE/SALE OF VISUAL/AUDIO, CONSUMER ELECTRONICS, COMMUNICATIONS MEDICAL EQUIPMENT/PRODUCTS}

^{2) MIXED CONSTRUCTION ACTIVITIES; MIXED CONSTRUCTION ACTIVITIES, ROAD WORKS AND ENGINEERING CONSTRUCTION}

^{DURING THE FINANCIAL YEAR UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF THE COMPANY CONSIST OF THE MANUFACTURING, IMPORTING, MARKETING AND EXPORTING OF AUDIO, VIDEO, DOMESTIC, ELECTRONIC, PROFESSIONAL AND TELECOMMUNICATION EQUIPMENT AND PROVIDING SUPPORT SERVICES TO RELATED COMPANIES.}

^{FROM THE RESEARCH DONE, THE FOLLOWING INFORMATION WAS GATHERED:}

^{BACKGROUND OF THE SUBJECT:}

^{PHILIPS ELECTRONICS SINGAPORE COMPRISES 4 MAIN ACTIVITY GROUPS:}

^{* SALES ORGANIZATION}

^{* INDUSTRIAL OPERATIONS AND SUPPORT}

^{* REGIONAL COMPETENCE CENTERS}

^{* PHILIPS INNOVATION CAMPUS}

^{THE SALES ORGANIZATION MARKETS A WIDE RANGE OF PHILIPS' CONSUMER AND}

^{PROFESSIONAL PRODUCTS, SYSTEMS AND SERVICES. IT HAS BEEN A LEADER IN}

^{MULTI-DISCIPLINARY INTEGRATED PROJECTS AND SYSTEMS. THE INDUSTRIAL}

^{OPERATIONS IN SINGAPORE INCLUDE THE DOMESTIC APPLIANCES & PERSONAL}

^{CARE FACTORY AND PHILIPS APPLIED TECHNOLOGIES.}

^{SEVERAL REGIONAL COMPETENCE CENTERS OF THE VARIOUS PRODUCT DIVISIONS}

^{ARE BASED IN SINGAPORE TO PROVIDE MARKETING AND TECHNICAL SUPPORT TO}

^{ASIA PACIFIC. SOME OF THESE INCLUDE PROFESSIONAL LIGHTING, CE}

^{(REGIONAL HQ), SEMICONDUCTORS (SOUTH ASIA AND PACIFIC REGION) AND}

^{MEDICAL SYSTEMS (ASEAN INCLUDING PAKISTAN).}

^{THE PHILIPS INNOVATION CAMPUS BRINGS TOGETHER OVER 1,300 DEVELOPMENT ENGINEERS AND INDUSTRIAL DESIGNERS, WITH ALMOST ALL OF PHILIPS' DEVELOPMENT AND DESIGN ACTIVITIES CONDUCTED UNDER ONE ROOF AT ITS TOA PAYOH COMPLEX. IT PROVIDES A CONDUCIVE ENVIRONMENT FOR THE CROSS-FERTILIZATION OF IDEAS AND SHARING OF TECHNOLOGY, DEVELOPMENT}

^{CAPABILITIES, EXPERTISE, INFRASTRUCTURE AND EQUIPMENT. THE UNITS WITHIN THE CAMPUS ARE DIGITAL MAINSTREAM TV, HOME ENTERTAINMENT NETWORKS, REMOTE CONTROL SYSTEMS, DOMESTIC APPLIANCES & PERSONAL CARE OPTICAL STORAGE, RF SOLUTIONS, SEMICONDUCTORS, PHILIPS APPLIEDTECHNOLOGIES AND PHILIPS DESIGN.}

^{AS PART OF A US$90-MILLION INVESTMENT COMMITMENT TO DRIVE PHILIPS' CONNECTED PLANET INITIATIVE IN SINGAPORE, AN INTEGRATED TEST BEDDING FACILITY, THE INNOHUB, WAS SET UP AT THE CAMPUS. A FIRST OF ITS KIND FOR PHILIPS IN ASIA PACIFIC, IT WILL ENABLE RIGOROUS TESTING OF NETWORKED PRODUCTS AS WELL AS ALL OTHER PRODUCTS CREATED HERE.}

^{SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:}

^{MANUFACTURERS AND EXPORTERS OF VARIOUS PRODUCTS}

^{* COLOUR TVS}

^{* RF TUNERS}

^{* HI-FI SYSTEMS}

^{* CELLULAR HANDPHONES}

^{* PAGERS}

^{* DOMESTIC APPLIANCES & PERSONAL CARE PRODUCTS}

^{* INJECTION MOULDS AND KEY MODULES}

^{PRODUCTS DEALINGS:}

^{MARKETING AND SALES OF PRODUCTS FROM CONSUMER TO PROFESSIONAL AND}

^{INDUSTRIAL EQUIPMENT AND SYSTEMS}

^{* COLOUR TVS}

^{* HI-FI}

^{* CELLULAR HANDPHONES}

^{* PAGERS}

^{* DOMESTIC APPLIANCES}

^{* LIGHTING}

^{* COMMUNICATION & SECURITY SYSTEMS}

^{* SEMICONDUCTORS}

^{* COMPONENTS}

^{* MEDICAL AND BUSINESS ELECTRONICS}

^{ESTIMATED NUMBER OF EMPLOYEES:}

^{* 6705 (AS AT YEAR 2006)}

^{QUALITY ASSESSMENT:}

^{* ISO 9002}

^{SUBJECT IS A MEMBER OF THE FOLLOWING ENTITIES:}

^{* SINGAPORE MANUFACTURERS' FEDERATION}

^{THE IMMEDIATE HOLDING COMPANY IS NATIONAL TRUST COMPANY OF TORONTO, INCORPORATED INN CANADA. THE ULTIMATE HOLDING COMPANY IS KONINKLIJKE PHILIPS ELECTRONICS N.V., INCORPORATED IN THE NETHERLANDS.}

^{NEWS:PHILIPS EXECUTES SALE OF STAKE IN FEI COMPANY -SOURCE: PHILIPS WEBSITE}

^{DATE: 15/12/2006}

^{AMSTERDAM, THE NETHERLANDS- ROYAL PHILIPS ELECTRONICS (NYSE:PHG,AEX:PHI) TODAY ANNOUNCED THE SALE OF 8.4 MILLION SHARES OF COMMON STOCK IN FEI COMPANY (NASDAQ: FEIC). ALL OF THE SHARES INCLUDED IN THIS OFFERING WERE SOLD BY PHILIPS BUSINESS ELECTRONICS INTERNATIONAL B.V. THE SALE WILL PROVIDE PHILIPS WITH NET PROCEEDS OF APPROXIMATELY EUR 155 MILLION. AS A RESULT OF THIS TRANSACTION, THE COMPANY WILL}

^{BOOK A NON-TAXABLE GAIN OF APPROXIMATELY EUR 75 MILLION IN ITS EARNINGS FOR THE FOURTH QUARTER OF 2006.}

^{THIS OFFERING BY PHILIPS OF FEI COMPANY SHARES WAS ANNOUNCED ON NOVEMBER 30, 2006, AND PRICED ON DECEMBER 14, 2006 AT USD 25.0 PER SHARE OF COMMON STOCK. UPON CLOSING OF THE TRANSACTION, WHICH IS SCHEDULED FOR WEDNESDAY, DECEMBER 20, 2006, PHILIPS WILL HAVE REDUCED ITS SHAREHOLDING IN FEI TO ZERO.}

^{NO OTHER TRADE INFORMATION IS AVAILABLE AS TELE-INTERVIEW WAS NOT GRANTED BY SUBJECT'S PERSONNEL ON 12/04/2007.}

^{REGISTERED AND BUSINESS ADDRESS:}

^{620A LORONG 1 TOA PAYOH}

^{SINGAPORE 319762}

^{DATE OF CHANGE OF ADDRESS : 24/11/1997}

^{- PREMISE OWNED BY: PHILIPS SINGAPORE PTE LTD.}

^{WEBSITE: http://www.philips.com.sg}

^{EMAIL: enquiries_ce@philips.com}

MANAGEMENT

^{THE DIRECTORS AT THE TIME OF THE REPORT ARE:}

^{1) MANKARIOS MOURAD BECHIR, A CANADIAN}

^{- BASED IN SINGAPORE.}

^{2) ONG YEW KHOON, A SINGAPOREAN}

^{- HOLDS NO OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABASE.}

^{3) LIM TAT HOOI, A SINGAPOREAN}

^{- HOLDS OTHER DIRECTORSHIP(S) AS RECORDED IN OUR DATABASE:}

^{PHILIPS SINGAPORE PRIVATE LIMITED}

^{SINGAPORE'S COUNTRY RATING 2006}

^{RATING: A1}

^{INVESTMENT GRADE}

^{IN SINGAPORE, THE POLITICAL SITUATION APPEARS TO BE VERY STABLE.}

^{ECONOMIC GROWTH IS BECOMING MORE MODERATE AS INVESTMENT HAS BEEN FLAT DUE TO INCREASING OIL PRICES AND LESS BUOYANT DEMAND FOR ELECTRONIC PRODUCTS.}

^{ECONOMIC PERFORMANCE HAS REMAINED STRONG, UNDERPINNED BY PHARMACEUTICALS AND SERVICES. EXPORTS HAS BENEFITED FROM THE STEADINESS OF DEMAND FROM ITS MAIN TRADING PARTNERS, MALAYSIA, THE UNITED STATES, CHINA AND HONG KONG. OTHER THAN ITS BALANCED PUBLIC SECTOR ACCOUNTS, LIMITED FOREIGN DEBT AND COMFORTABLE FOREIGN CURRENCY RESERVES HAVE CONTRIBUTED TO SINGAPORE'S STRONG FINANCIAL CONDITION.}

^{AS THE ELECTRONICS SECTOR FACES COMPETITION FROM THE ASIAN ECONOMIES, SINGAPORE HAS BEEN PURSUING DIVERSIFICATION STRATEGY THAT HAS BEEN CONSOLIDATING ITS POSITION. PHARMACEUTICALS ALREADY REPRESENT 10% OF EXPORTS IN COMPARATIVE TO ITS INSIGNIFICANT CONTRIBUTION IN YEAR 1995. ELECTRONICS SECTOR SECTOR'S SHARE HAS DECLINED FROM 80% TO 60% DURING THE SAME PERIOD. THERE IS HIGH RELIANCE ON DEVELOPMENT OF PETROCHEMICAL PRODUCTS, HIGH VALUE-ADDED SERVICES AND BIOTECHNOLOGIES.}

^ASSETS

^{* ONE OF THE MOST OPEN ECONOMIES IN THE WORLD WITH EXPORTS PLAYING A MAJOR ROLE IN ITS PERFORMANCE.}

^{* ONE OF ASIA'S MOST ADVANCED COUNTRIES IN QUALITY COMPETITIVENESS TERMS.}

^{* WORKFORCE'S EDUCATION AND SKILL LEVEL IS VERY HIGH.}

^{* A MAJOR EXPORT OF CAPITAL IN ASIA, PARTICULARLY THE STATE-OWNED HOLDING COMPANY, TEMASEK.}

^{* THE BUSINESS ENVIRONMENT HAS BEEN VERY FAVOURABLE.}

^{* GREAT POLITICAL STABILITY.}

^WEAKNESSES

^{* ECONOMY REMAINED OVERSPECIALISED IN THE ELECTRONICS SECTOR.}

^{* MUST ACCELERATE DIVERSIFICATION IN SERVICES TO MAINTAIN ITS LEAD OVER OTHER ASIAN ECONOMIES}

^{* REFORMS ARE STILL NEEDED TO FOSTER INNOVATION AND EDUCATION-SYSTEM MODERNIZATION.}

^{* AGING POPULATION COULD ULTIMATELY AFFECT ECONOMIC PERFORMANCE.}

^{SOURCES: COFACE COPYRIGHT. ALL RIGHTS RESERVED.}

MANUFACTURING SECTOR

PAST PERFORMANCE

THE MANUFACTURING SECTOR GREW AT A MORE MODEST PACE OF 7.7% IN 4Q 2006, AFTER A 9.5% EXPANSION IN 3Q 2006. THIS WAS DUE MAINLY TO A FALL IN THE OUTPUT OF THE ELECTRONICS AND CHEMICALS CLUSTERS, AND SLOWER GROWTH IN THE PRECISION ENGINEERING CLUSTER. GROWTH IN THE TRANSPORT ENGINEERING CLUSTER

EASED BUT REMAINED STRONG. MEANWHILE, THE BIOMEDICAL MANUFACTURING CLUSTER ACCELERATED FROM A GROWTH OF 4.7% IN 3Q 2006 TO 27% IN 4Q 2006. FOR THE WHOLE YEAR, THE MANUFACTURING SECTOR GREW BY 12%, UP FROM 9.5% IN 2005, SUPPORTED BY STRONGER PERFORMANCES IN THE TRANSPORT ENGINEERING, BIOMEDICAL

MANUFACTURING AND PRECISION ENGINEERING CLUSTERS.

THE ELECTRONICS CLUSTER REVERSED ITS DOWNTREND IN THE PAST FOUR MONTHS TO EXPAND BY 4.1% IN JANUARY 2007. THE GROWTH CAME MAINLY FROM HIGHER PRODUCTION OF SEMICONDUCTORS AND COMPUTER PERIPHERALS, WHICH SHOWED 12.3% AND 4.0% GROWTH RESPECTIVELY COMPARED TO LAST JANUARY. THE DATA STORAGE SEGMENT REMAINED DEPRESSED OWING TO THE RELOCATION OF LOW END PRODUCTION OVERSEAS. THE INFOCOMMS & CONSUMER ELECTRONICS SEGMENT CONTRACTED AT 5.9% DUE TO DECLINES IN OUTPUT OF TELECOMMUNICATION PRODUCTS AND CONSUMER ELECTRONICS.

THE GENERAL MANUFACTURING INDUSTRIES EXPANDED 11.0% IN JANUARY 2007. PRODUCTION OF FOOD AND BEVERAGES INDUSTRIES INCREASED 12.7%, ESPECIALLY FOR FOOD, CHOCOLATE PRODUCTS AND DRINKS WHICH MEET HIGHER FESTIVE DEMAND. THE PRINTING INDUSTRIES ALSO EXPANDED BY 13.4%

OUTLOOK

THE MANUFACTURING SECTOR IS CAUTIOUSLY OPTIMISTIC ABOUT BUSINESS CONDITIONS IN THE NEXT SIX MONTHS COMPARED TO THE LAST QUARTER OF 2006. OVERALL, A WEIGHTED 18% OF THE MANUFACTURERS EXPECT AN IMPROVEMENT IN BUSINESS CONDITIONS WHILE A WEIGHTED 11% PREDICT DETERIORATION. THIS RESULTS IN A NET WEIGHTED BALANCE OF 7% OF MANUFACTURERS HAVING AN OPTIMISTIC OUTLOOK, COMPARED TO 22% IN LAST QUARTER’S SURVEY. THE MODERATION IN SENTIMENTS CAN BE ATTRIBUTED MAINLY TO A WEAKER OUTLOOK IN THE ELECTRONICS CLUSTER AND SEASONAL SLOWDOWN DUE TO FESTIVE HOLIDAYS IN THE EARLY PART OF THE YEAR.

THE ELECTRONICS CLUSTER EXPECTS BUSINESS TO SOFTEN IN THE FIRST HALF OF 2007 IN ALL SEGMENTS EXCEPT THE COMPUTER PERIPHERALS SEGMENT. THE SEMICONDUCTOR SEGMENT ANTICIPATES A DECELERATION OF THE SEMICONDUCTOR MARKET IN THE FIRST HALF OF 2007 COMPARED TO THE LAST QUARTER OF 2006, DUE TO WEAKER DEMAND AND EXCESS INVENTORIES. OUTPUT FOR THIS SEGMENT, HOWEVER, IS EXPECTED TO INCREASE IN THE FIRST QUARTER OF 2007 COMPARED TO A QUARTER AGO, TO FULFILL PRE-ARRANGED ORDERS. IN THE INFOCOMMS AND CONSUMER ELECTRONICS, AND OTHER ELECTRONIC MODULES AND COMPONENTS SEGMENTS, PRICING PRESSURES AND SEASONAL WEAKNESS CONTRIBUTED TO THE DIP IN SENTIMENTS. PRODUCTION LEVELS IN THE FIRST QUARTER OF THE YEAR ARE ALSO EXPECTED TO DROP IN THESE SEGMENTS, COMPARED TO THE OCTOBER TO DECEMBER 2006 PERIOD, AS SOME PRODUCTION LINES ARE TRANSFERRED OUT OF SINGAPORE. OVERALL EMPLOYMENT IN THIS CLUSTER IS EXPECTED TO INCREASE, BOOSTED BY THE POSITIVE OUTLOOK IN THE COMPUTER PERIPHERALS SEGMENT, WHICH ANTICIPATES A CORRESPONDING RISE IN OUTPUT AND DIRECT EXPORTS IN THE FIRST QUARTER OF THE YEAR, COMPARED WITH THE PREVIOUS QUARTER.

EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE SINGAPORE DEPARTMENT OF STATISTICS economic development board

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions