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Creative Technologies Annual Report

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AnnCONTENTS
Chairman’s Message Financial Highlights and Review Board of Directors and Executive Officers Corporate Governance Directors’ Report Statement by Directors Independent Auditor’s Report Consolidated Income Statement Consolidated Statement of Comprehensive Income Balance Sheets Consolidated Statement of Changes in Equity Consolidated Statement of Cash Flows Notes to the Financial Statements SGX-ST Listing Manual Requirements 2 4

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CREATIVE TECHNOLOGY LTD AND ITS SUBSIDIARIES

CHAIRMAN’S MESSAGE
Dear Shareholders, Fiscal 2013 was another difficult year for Creative. We had continued to focus on the development and introduction of new products in the key product categories, and had launched a series of new exciting products that provide good potential growth opportunities. However, our financial performance continued to be adversely affected by the difficult and uncertain market conditions for our products, which impacted sales across all regions and resulted in lower revenues. Nevertheless, despite the lower level of sales, with a lower operating cost structure from the cost cutting actions in the previous years, we were able to achieve an improvement in operating results in fiscal 2013. Sales for fiscal year 2013 were US$165 million, a reduction of 14% compared to US$192 million for fiscal year 2012. Gross profit as a percentage of sales was 33% in fiscal 2013, up from 19% in fiscal 2012. Net profit for fiscal 2013 was US$17 million, compared to a net loss of US$84 million in fiscal 2012. While sales were lower in fiscal 2013, operating results for the year had improved due mainly to the higher gross profit and a reduction in operating expenses of US$19 million. Gross profit was higher due mainly to a US$20 million licensing income received for the licensing of certain technologies relating to high

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