Transforming to serve you better SP Group Year in Review 2017 A CONTENTS Chairman’s Message Financial Highlights 02 06 07 Enjoy A Seamless, Unified Experience Always Here for You Saving Energy and Cost 08 10 11 A Greener, Cooler World Next-Generation Solutions for Your Future Needs 13 16 Driving Innovation from Within CHAIRMAN’S MESSAGE TRANSFORMING TO SERVE CUSTOMERS BETTER Singapore Power and all members of the group now serve the public as SP Group. We are transforming to serve customers better. With disruption sweeping through every industry and facet of society, we strive to meet customers’ evolving needs by innovating and building capabilities for the future. Pivotal in realising this goal is bringing our employees from different work locations together in our new premises at Kallang Sector. This enables our people to collaborate and co-create more easily, and reaps savings in property and facilities management at our own building instead of rented offices spaces. Projecting a unified identity as SP Group is also important in providing our customers a seamless, unified experience at all touch points. Our efforts are anchored on our mission to improve quality of life for individuals of all ages, families, industries and the community. Our goal is to empower customers with sustainable lifestyle solutions to meet their needs and aspirations. In fulfilling our commitment, we have upheld strong network performance that enables Singapore to enjoy worldclass reliability and efficiency. We have also maintained financial discipline and governance, closing the year on 31 March 2017 with a net profit of S$948.8 million, with our Australian associates contributing S$216.4 million. 02 SP GROUP ANNUAL REPORT 2017 Our goal is to empower customers with sustainable lifestyle solutions to meet their needs and aspirations. In providing customers greater convenience, we aim to deliver a more unified, seamless experience, bringing savings in energy, time and cost. GOING DIGITAL TO DO MORE WITH LESS In providing customers greater convenience, we aim to deliver a more unified, seamless experience, bringing savings in energy, time and cost. Instrumental in making these possible are digital technologies that will power futureready solutions. Our SP Utilities mobile application is centred on customers’ growing needs and changing lifestyle. Launched in March 2017, SP Utilities enables customers to make transactions on the go, get timely reminders on bill payment, track their utilities consumption and compare it with their past usage as well as that of their neighbours. Progressively, new features are being added, such as the “live” chat for customers to have their queries addressed promptly. This is supported by our one-stop Digital Contact Centre, that also attends to customers on phone calls and email. Digital applications have also transformed the way we carry out our operations. We are better able to perform real-time monitoring of assets and network performance, establish secure protocols, avert interruption and down-time, streamline processes, respond speedily to irregularities, plan efficiently, be responsive to dynamic events and optimise resources for greater productivity and reliability. Our employees have embraced new ways of working, in order to do more with less and bring greater value to customers. They are equipped with digital tools and workspaces to perform their roles and connect with each other and our customers, regardless of where they are. The SP Utilities mobile app enables customers to make transactions on the go and track their utilities consumption. 03 CHAIRMAN’S MESSAGE (CONTINUED) Tao Nan School students visit to SP Group’s district cooling plant at Marina Bay. SP Group’s district cooling: Savings of up to 40 % in energy consumption We have continued to build engineering talent and bench strength, with SP’s own EDGE, iGRAD and LEAP scholarships for students in tertiary, polytechnic and technical institutes, as well as incumbent professionals making the transition to higher level responsibilities and roles that have evolved with the changing landscape. In all our undertakings, we keep an unwavering focus on the safety of the public, our staff and contractors. We have strengthened contractor partnership and management programmes to reward good safety practices and encourage improvement in areas we have identified. POWERING A GREENER FUTURE We are developing green technologies and adopting more sustainable practices in our operations. In the last year, we started our journey towards converting our service fleet to Electric Vehicles. To maintain the fleet, we have installed a robust network of charging stations at various locations in Singapore. We have also installed solar panels at our headquarters and district offices and developed storage systems to harness and deploy energy efficiently. Our experience will enable us to work with partners in the community to achieve similar sustainable outcomes. For a start, we have helped Bukit Panjang Community Club reduce electricity usage with solar panels and a real-time monitoring system at its premises. In district cooling, where customers have reported savings of up to 40 per cent in energy consumption, we have progressed beyond indoor airconditioning in commercial buildings at the central business district. We have taken this expertise to Chongqing, China, where we are managing the district cooling system for the new Raffles City Chongqing that is run by CapitaLand. At this year’s National Day Parade, we introduced outdoor cooling facilities, tapping on the same technologies and infrastructure powered by our Singapore District Cooling. We look forward to exploring wider-scale adoption of district cooling in the community. 04 SP GROUP ANNUAL REPORT 2017 INNOVATION TO DELIVER GREATER VALUE To deliver value to our customers for the long-run, it is imperative to invest in projects and partnerships that will nurture the spirit of innovation and test promising ideas. In the past year, we embarked on a collaboration with General Electric to develop Industrial Internet of Things capabilities and intelligent applications to enhance our power network reliability and efficiency. Together with seven other leading international utilities, we are driving the first global utilities accelerator programme, Free Electrons, for start-ups to develop game-changing products. We are also part of a consortium of global energy players to develop blockchain solutions aimed at helping customers achieve energy efficient results. Through the SP Centre of Excellence, we continue to invest in next-generation technologies aimed at helping customers attain a high quality, sustainable way of life. STEADY GROWTH AND COMMITMENT Our journey of transformation is only possible with the right mindset, conviction and commitment to adapt and grow. I thank the Management and staff for their leadership and tireless resolve to transform to serve customers better. I am also grateful to our shareholder, business partners, staff union and regulator, for your partnership that is rooted on our mission to improve quality of life for our customers. To the members of the Board, thank you for your guidance and counsel. In line with our digital focus, I hope you enjoy this interactive review of our performance. Thank you for your support. Mohd Hassan Marican Chairman August 2017 SP Group’s Chief Digital Officer Samuel Tan (seated, right) signing a Memorandum of Understanding with Wouter Van Wersch, President & CEO of GE ASEAN. Witnessing the event are (standing from left) Jeff Immelt, Chairman and then-CEO of GE; Dr Beh Swan Gin, Chairman of Singapore Economic Development Board; and Wong Kim Yin, Group CEO, SP Group. 05 FINANCIAL HIGHLIGHTS Net profit after tax (S$ million) Revenue from continuing operations (S$ million) 991 924 949 4,840 3,964 3,722 FY2014/15 FY2015/16 FY2016/17 FY2014/15 FY2015/16 FY2016/17 Total assets (S$ million) Shareholder’s equity (S$ million) 15,635 16,716 17,806 8,528 9,088 9,793 FY2014/15 FY2015/16 FY2016/17 FY2014/15 FY2015/16 FY2016/17 Economic value added (S$ million) Return on equity (%) 284 300 256 11.2 10.5 10.1 FY2014/15 FY2015/16 FY2016/17 FY2014/15 FY2015/16 FY2016/17 06 SP GROUP ANNUAL REPORT 2017 ENJOY A SEAMLESS, UNIFIED EXPERIENCE Life would be a breeze if we could get our important tasks done fast, anytime, anywhere. With the SP Utilities mobile app, you can open a utility account, make a payment and even chat “live” with our call agents. A single touch-ID makes it easy to check your bills and past transactions. You’ll never miss important updates through timely alerts. ONE CALL, ONE CLICK AND ONE-STOP SERVICE IN ONE BUSINESS DAY. Manage your utilities through one call, one click, at one-stop in one business day. SP Utilities app is available on apple app store and google play store. Top: With the SP Utilities app, you can chat “live” with us on the go. Bottom: SP’s one-stop solution at your fingertips. Service to customers in 2017 1.5 million Customers we serve each month Calls we receive each month 60,000 491 million Utility payments processed each month on average 07 ALWAYS HERE FOR YOU Top: Our officers stand by at major events, like National Day Parade 2017, to ensure reliable power supply. Bottom: Our engineers working on the cross-island Transmission Cable Tunnel project, which offers a costeffective long-term solution for reliable electricity supply in Singapore. Life should be free of interruption. But when it happens, we know what it means for you to have things back to normal without delay. Our officers stand by 24/7 to respond immediately, should electricity or gas supply be disrupted, regardless of the cause. Our priority is always to restore supply as safely and quickly as possible so that inconvenience to customers is minimised. Singapore’s power network is ranked one of the most reliable in the world. In 2016/17, customers experienced an average of 0.25 minute of electricity interruption. That year, 98 per cent of all electricity interruptions were restored within just 2 hours, and 90 per cent in an hour. 08 SP GROUP ANNUAL REPORT 2017 System Average Interruption Duration Index Mins 3.9 2.2 1.2 0.7 0.3 0.4 0.7 0.3 0.6 0.25 4 2 Restoration Time In 2016 98 % of interruptions restored within 2 hours Source: DNV.GL 96/97 01/02 06/07 10/11 11/12 12/13 13/14 14/15 15/16 16/17 Customers experienced an average of 0.25 minute of electricity interruption in 2016/17. Electricity Network Performance Benchmarking System Average Interruption Duration Index 2016 (in minutes) Source: DNV.GL Grid Price and Performance Benchmarking Report 2016 Customers in Singapore experienced 0.56 minute of electricity interruption in 2015/16, compared to an average of 10.19 minutes in top 5 performing cities. We continually monitor, maintain and renew our infrastructure, with the latest techniques and technology, to meet the nation’s growing power needs and ensure long-term reliability and efficiency. We have systems in place to detect and avert abnormalities as much as possible. We are building capabilities today, to power the lives of generations to come. 09 SAVING ENERGY AND COST You can have power in your hands to save energy and cost. The SP Utilities app and the new SP bill are designed to serve you better. You have tools at your fingertips to track your electricity, water and gas usage, and even compare your consumption pattern with that of your neighbours. More features are coming your way, to help you do more with less. We’ll keep raising the bar, to help you keep consumption and cost down. Bottom: With SP, your bill is designed to help you track past consumption, compare your power usage with that of your neighbours’ and receive tips on saving energy. 10 SP GROUP ANNUAL REPORT 2017 A GREENER, COOLER WORLD In our tropical climate, keeping cool is an important part of enjoying a better quality of life. You can beat the heat while keeping your energy consumption low. In an average building, around 50 per cent of energy usage powers air-conditioning alone. SP Group’s underground district cooling network provides chilled water for air-conditioning of several buildings at Marina Bay. Compared to conventional air-conditioning, our district cooling customers can save up to 40 per cent on their energy consumption. Bottom: SP Group’s district cooling system at Marina Bay. 11 A GREENER, COOLER WORLD (CONTINUED) Outdoor Cooling Innovation – How it works Source: by SP Group and ST Engineering At National Day Parade 2017, segments of spectators were the first to enjoy cool air comfort outdoors. This was made possible through an innovation that builds on SP’s district cooling network. This outdoor cooling system saves 90 per cent in energy consumption compared to conventional air-conditioning. It is a game-changing solution that unlocks the potential of urban spaces in land-scarce Singapore. 12 SP GROUP ANNUAL REPORT 2017 NEXT-GENERATION SOLUTIONS FOR YOUR FUTURE NEEDS Today, cutting-edge energy solutions are closer to you than ever before, and within the reach of everyone in the community. In the heartlands, SP’s digital energy-saving solution, integrated with solar, battery storage and sensor monitoring capabilities, has enabled Bukit Panjang Community Club to reduce its energy consumption by 31 per cent. We partnered South West Community Development Council in an energy-saving challenge for residents, which reaped savings of 50,000 kWh – enough to power 160 three-room HDB flats for a month. Top: Partnership with Siemens. Bottom: South West CDC Mayor Low Yen Ling (in green), with Group CEO of SP, Wong Kim Yin (seated, extreme left) presenting a starter kit to residents to help them participate in the Power Saversfor-Charity@South West energy-saving challenge. 13 NEXT-GENERATION SOLUTIONS FOR YOUR FUTURE NEEDS (CONTINUED) Top: SP Group’s digital energy-saving solution helped Bukit Panjang Community Club reduce its energy consumption by 31 per cent. Bottom: SP has partnered seven other international utilities to launch Free Electrons, the world’s first global energy accelerator, to nurture start-ups in creating next-generation customer solutions. More new technologies are being deployed to serve you better. Together with seven other international utilities leaders, we have launched a global energy accelerator programme called Free Electrons. It supports start-ups developing solutions in areas such as clean energy, energy efficiency and mobility, digitisation, and on-demand customer services. SP Group, Energy Web Foundation and other global energy players are developing blockchain technologies that will enable greater integration of renewable energy sources on the electricity grid and lower transaction costs for customers. 14 SP GROUP ANNUAL REPORT 2017 Top: The SP Centre of Excellence signing Memoranda of Understanding with partners from 3M, GE Grid Solutions, IJENKO, Singapore Economic Development Board, NEC, Space-Time Insight and OMNETRIC Group. Bottom left: Through a S$1 million SP Group sponsorship, Singapore Polytechnic students are building solar cars and competing in the biennial World Solar Challenge in Australia. Bottom right: One of the electric vehicles in SP’s service fleet. We are partnering General Electric to develop Industrial Internet of Things capabilities and intelligent applications to enhance the reliability and efficiency of Singapore’s power network. With Siemens, we are creating a software platform for SP’s 24/7 control centres to enable more robust planning, surveillance and predictive maintenance of the electricity network, and technologies for new urban electricity microgrids which will incorporate renewable sources of energy. Similarly, the SP Centre of Excellence continues to invest in next-generation technologies for sustainable living. SP Group is supporting Singapore Polytechnic students with a S$1 million sponsorship over five years to build solar cars to compete in the biennial World Solar Challenge. The latest edition of the car, SunSPEC5, was launched in July 2017. It features advanced solar and energy storage capabilities close to commercially viable vehicles. We are also offering SunSPEC polytechnic and university sponsorships for students who are part of the solar car team. They will secure jobs at SP Group with customised training and exposure in critical areas such as electricity and gas planning and operations. 15 DRIVING INNOVATION FROM WITHIN Bottom: The team leading the conversion of SP’s entire service fleet to electric vehicles. We are powering transformation with talent in our organisation. SP’s Digital Technology team is swiftly building and deploying digital solutions such as the SP Utilities app and the energy-saving platform for Bukit Panjang Community Club, to bring greater value to customers. In-house capabilities are also driving the conversion of our entire service fleet to electric vehicles and setting up a network of charging stations for them. 16 SP GROUP ANNUAL REPORT 2017 We have teams studying and installing solar panels at our offices, with storage systems to harness and deploy energy efficiently. We are also uncovering compelling gems through The Pitch, a business ideas competition among SP employees. Expect more made-in-SP innovations, all with the goal of improving quality of life. Top: Our Solar Taskforce led an initiative to install solar panels at our offices to harness renewable energy. Bottom: Recipients of SP Group’s university and polytechnic scholarships and sponsorships with SP Group CEO Wong Kim Yin (Back row, 5th from left) and Senior Advisor Quek Poh Huat (Back row, 4th from left). 17 2 Kallang Sector Singapore 349277 T. +65 6916 8888 F. +65 6304 8188 https://www.spgroup.com.sg/ Transforming to serve you better SP GROUP FINANCIAL SUMMARY 2016/17 Registration Number : 199406577N | SP Power Limited and its subsidiaries 1 CONTENTS DIRECTORS’ STATEMENT 1 INDEPENDENT AUDITOR’S REPORT 5 BALANCE SHEETS 8 INCOME STATEMENTS 9 STATEMENTS OF COMPREHENSIVE INCOME 10 STATEMENTS OF CHANGES IN EQUITY 11 CONSOLIDATED STATEMENT OF CASH FLOWS 14 NOTES TO THE FINANCIAL STATEMENTS 15 1 DOMICILE AND ACTIVITIES 15 2 BASIS OF PREPARATION 15 3 SIGNIFICANT ACCOUNTING POLICIES 17 4 PROPERTY, PLANT AND EQUIPMENT 36 5 INTANGIBLE ASSETS 39 6 SUBSIDIARIES 41 7 ASSOCIATES AND JOINT VENTURE 42 8 OTHER NON-CURRENT ASSETS 45 9 DEFERRED TAXATION 47 10 DERIVATIVE ASSETS AND LIABILITIES 49 11 AVAILABLE-FOR-SALE FINANCIAL ASSETS 51 12 INVENTORIES 51 13 TRADE AND OTHER RECEIVABLES 51 14 CASH AND CASH EQUIVALENTS 54 15 DISPOSAL GROUP HELD-FOR-SALE 55 16 SHARE CAPITAL 56 17 RESERVES 56 18 DEBT OBLIGATIONS 57 19 OTHER NON-CURRENT LIABILITIES 58 20 TRADE AND OTHER PAYABLES 60 21 REVENUE 61 22 OTHER INCOME 61 23 FINANCE INCOME 61 24 FINANCE COSTS 62 25 TAX EXPENSE 63 26 PROFIT FOR THE YEAR 65 27 RELATED PARTIES 65 28 OPERATING SEGMENTS 66 29 FINANCIAL RISK MANAGEMENT 70 30 FAIR VALUES 79 31 COMMITMENTS 83 32 CONTINGENT LIABILITIES 84 33 DIVIDENDS 84 2 DIRECTORS’ STATEMENT YEAR ENDED 31 MARCH 2017 We are pleased to submit this annual report to the member of Singapore Power Limited (the “Company”) together with the audited financial statements for the financial year ended 31 March 2017. OPINION OF THE DIRECTORS In our opinion, (a) (b) the financial statements set out on pages 8 to 84 are drawn up so as to give a true and fair view of the financial position of the Company and its subsidiaries (the “Group”) as at 31 March 2017 and the financial performance, changes in equity and cash flows of the Group and of the financial performance and changes in equity of the Company for the year ended on that date in accordance with the provisions of the Singapore Companies Act, Chapter 50 (the “Act”) and Singapore Financial Reporting Standards; and at the date of this statement, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they fall due. DIRECTORS The directors in office at the date of this statement are as follows: Tan Sri Mohd Hassan Marican Mr Tan Chee Meng Mr Choi Shing Kwok Mrs Oon Kum Loon Mr Tan Puay Chiang Mr Ong Yew Huat Mr Timothy Chia Chee Ming Mr Ng Kwan Meng Mr Wong Kim Yin DIRECTORS’ INTERESTS According to the register kept by the Company for the purposes of Section 164 of the Act, particulars of interests of directors who held office at the end of the financial year (including those held by their spouses and infant children) in shares, debentures, warrants and share options in the Company and in related corporations are as follows: Name of director and related corporations in which Holdings Holdings interests (fully paid ordinary shares unless at beginning at end of otherwise stated) are held of the year the year Mr Choi Shing Kwok Singapore Telecommunications Limited 2,720 2,720 Olam International Limited – 6% notes due 2018 S$500,000 S$500,000 1 DIRECTORS’ STATEMENT YEAR ENDED 31 MARCH 2017 Name of director and related corporations in which Holdings Holdings interests (fully paid ordinary shares unless at beginning at end of otherwise stated) are held of the year the year Mrs Oon Kum Loon Singapore Telecommunications Limited 2,720 2,720 Mapletree Industrial Trust - units 8,894 8,894 Mr Tan Puay Chiang Neptune Orient Lines Limited* 100,000 – Singapore Airlines Limited 10,000 10,000 Singapore Technologies Engineering Limited 120,000 150,000 Singapore Telecommunications Limited 133,570 133,570 Mapletree Industrial Trust - units 12,000 12,000 Mapletree Treasury Services Limited - 3.88% notes due on 4 October 2018 S$250,000 S$250,000 - 5.125% Perpetual securities S$250,000 S$250,000 Mapletree Commercial Trust Treasury Company Pte. Ltd. - 2.795% fixed rate notes due on 15 November 2023 – S$250,000 Singapore Technologies Telemedia Pte Ltd - 4.05% notes due on 2 December 2025 S$250,000 S$250,000 Mr Ong Yew Huat Singapore Telecommunications Limited 50,000 50,000 Mr Timothy Chia Chee Ming Singapore Telecommunications Limited 2,070 2,070 2 DIRECTORS’ STATEMENT YEAR ENDED 31 MARCH 2017 Name of director and related corporations in which Holdings Holdings interests (fully paid ordinary shares unless at beginning at end of otherwise stated) are held of the year the year Mr Ng Kwan Meng Neptune Orient Lines Limited* 100,000 – Singapore Telecommunications Limited 5,350 5,350 Singapore Technologies Engineering Ltd 25,000 25,000 SMRT Corporation Ltd 68,000 – Starhub Ltd 6,000 6,000 Mapletree Commercial Trust - units 10,000 10,000 Mapletree Greater China Commercial Trust - units 172,000 22,000 Mapletree Industrial Trust - units 10,000 10,000 Ascendas Real Estate Investment Trust - units 10,000 10,000 Mr Wong Kim Yin Singapore Telecommunications Limited 190 190 Mapletree Industrial Trust - units 30,506 30,506 *ceased to be a related corporation on 9 Jun 2016 Except as disclosed in this statement, no director who held office at the end of the financial year had interests in shares, debentures, warrants or share options of the Company, or of related corporations, either at the beginning or at the end of the financial year. Neither at the end of, nor at any time during the financial year, was the Company a party to any arrangement whose objects are, or one of whose objects is, to enable the directors of the Company to acquire benefits by means of the acquisition of shares or debentures of the Company or any other body corporate. 3 DIRECTORS’ STATEMENT YEAR ENDED 31 MARCH 2017 SHARE OPTIONS During the financial year, there were: (i) (ii) no options granted by the Company or its subsidiaries to any person to take up unissued shares in the Company; and no shares issued by virtue of any exercise of option to take up unissued shares of the Company or its subsidiaries. As at the end of the financial year, there were no unissued shares of the Company or its subsidiaries under option. On behalf of the Board of Directors TAN SRI MOHD HASSAN MARICAN Chairman MR WONG KIM YIN Director / Group Chief Executive Officer 23 May 2017 4 INDEPENDENT AUDITOR’S REPORT FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017 INDEPENDENT AUDITOR’S REPORT TO THE MEMBER OF SINGAPORE POWER LIMITED REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS Opinion We have audited the accompanying financial statements of Singapore Power Limited (“the Company”) and its subsidiaries (“the Group”) set out on pages 8 to 84, which comprise the consolidated balance sheet of the Group and the balance sheet of the Company as at 31 March 2017, the consolidated income statement, statement of comprehensive income, statement of changes in equity and statement of cash flows of the Group and the income statement, statement of comprehensive income and statement of changes in equity of the Company for the financial year then ended, and notes to the financial statements, including a summary of significant accounting policies. In our opinion, the accompanying consolidated financial statements of the Group, the balance sheet, income statement, statement of comprehensive income and statement of changes in equity of the Company are properly drawn up in accordance with the provisions of the Companies Act, Chapter 50 (“the Act”) and Financial Reporting Standards in Singapore (“FRSs”) so as to give a true and fair view of the consolidated financial position of the Group and the financial position of the Company as at 31 March 2017 and of the consolidated financial performance, consolidated changes in equity and consolidated cash flows of the Group and financial performance and changes in equity of the Company for the year ended on that date. Basis for Opinion We conducted our audit in accordance with Singapore Standards on Auditing (SSAs). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Group in accordance with the Accounting and Corporate Regulatory Authority (ACRA) Code of Professional Conduct and Ethics for Public Accountants and Accounting Entities (ACRA Code) together with the ethical requirements that are relevant to our audit of the financial statements in Singapore, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ACRA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Other Information Management is responsible for other information. The other information comprises the directors’ statement. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. 5 INDEPENDENT AUDITOR’S REPORT FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017 In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of Management and Directors for the Financial Statements Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the provisions of the Act and FRSs, and for devising and maintaining a system of internal accounting controls sufficient to provide a reasonable assurance that assets are safeguarded against loss from unauthorised use or disposition; and transactions are properly authorised and that they are recorded as necessary to permit the preparation of true and fair financial statements and to maintain accountability of assets. In preparing the financial statements, management is responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so. The directors’ responsibilities include overseeing the Group’s financial reporting process. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with SSAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control. 6 INDEPENDENT AUDITOR’S REPORT FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017 • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. • Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. • Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Report on Other Legal and Regulatory Requirements In our opinion, the accounting and other records required by the Act to be kept by the Company and by those subsidiaries incorporated in Singapore of which we are the auditors have been properly kept in accordance with the provisions of the Act. Ernst & Young LLP Public Accountants and Chartered Accountants Singapore 23 May 2017 7 BALANCE SHEETS AS AT 31 MARCH 2017 Group Company Note 2017 2016 2017 2016 $ million $ million $ million $ million Non-current assets Property, plant and equipment 4 11,713.6 10,967.8 13.3 15.9 Intangible assets 5 141.6 133.1 8.1 8.5 Subsidiaries 6 – – 6,764.9 6,854.9 Associates and joint venture 7 2,994.7 2,772.9 1.3 1.3 Other non-current assets 8 428.1 383.0 78.6 80.3 Deferred tax assets 9 29.2 31.9 – – Derivative assets 10 106.4 115.2 0.2 0.3 Available-for-sale financial assets 11 165.8 191.4 160.3 191.4 15,579.4 14,595.3 7,026.7 7,152.6 Current assets Available-for-sale financial assets 11 29.6 8.9 29.6 8.9 Inventories 12 49.0 56.3 – – Trade and other receivables 13 431.0 422.7 3,951.4 3,863.3 Derivative assets 10 2.4 2.4 0.2 0.7 Cash and cash equivalents 14 1,677.1 1,630.2 878.0 641.7 Assets held-for-sale 15 37.6 – 90.0 – 2,226.7 2,120.5 4,949.2 4,514.6 Total assets 17,806.1 16,715.8 11,975.9 11,667.2 Equity Share capital 16 2,911.9 2,911.9 2,911.9 2,911.9 Reserves 17 (187.4) (313.8) 3.2 (0.1) Accumulated profits 7,068.3 6,489.5 5,152.1 5,057.6 Total equity, attributable to owner of the Company 9,792.8 9,087.6 8,067.2 7,969.4 Non-current liabilities Debt obligations 18 4,147.5 4,119.1 – – Derivative liabilities 10 92.9 102.6 8.1 6.6 Deferred tax liabilities 9 1,284.2 1,239.5 0.2 0.6 Other non-current liabilities 19 704.2 629.3 – 3.0 6,228.8 6,090.5 8.3 10.2 Current liabilities Debt obligations 18 139.7 82.1 – – Derivative liabilities 10 15.3 0.9 6.7 – Current tax payable 161.4 142.2 14.7 11.8 Trade and other payables 20 1,451.3 1,312.5 3,879.0 3,675.8 Liabilities held-for-sale 15 16.8 – – – 1,784.5 1,537.7 3,900.4 3,687.6 Total liabilities 8,013.3 7,628.2 3,908.7 3,697.8 Total equity and liabilities 17,806.1 16,715.8 11,975.9 11,667.2 The accompanying notes form an integral part of these financial statements. 8 INCOME STATEMENTS YEAR ENDED 31 MARCH 2017 Group Company Note 2017 2016 2017 2016 $ million $ million $ million $ million Revenue 21 3,722.0 3,963.5 533.7 524.2 Other income 22 189.0 162.6 1.2 0.3 Expenses - Purchased power (1,803.6) (2,073.4) – – - Depreciation of property, plant and equipment (548.5) (522.4) (4.8) (5.4) - Amortisation of intangible assets (34.4) (28.6) (2.7) (2.2) - Maintenance (99.0) (97.4) (4.8) (5.7) - Staff costs (297.6) (275.8) (74.8) (70.3) - Property taxes (55.3) (66.6) (0.3) (0.3) - Other operating expenses (122.1) (118.7) (22.3) (20.6) Operating profit 950.5 943.2 425.2 420.0 Finance income 23 65.6 44.7 65.5 53.4 Finance costs 24 (102.2) (142.4) (12.7) (9.0) Share of profit of associates, net of tax 216.4 244.5 – – Share of profit of joint venture, net of tax 1.7 1.9 – – Profit before taxation 1,132.0 1,091.9 478.0 464.4 Tax expense 25 (183.2) (168.4) (13.5) (8.9) Profit for the year, attributable to owner of the Company 26 948.8 923.5 464.5 455.5 The accompanying notes form an integral part of these financial statements. 9 STATEMENTS OF COMPREHENSIVE INCOME YEAR ENDED 31 MARCH 2017 Group Company 2017 2016 2017 2016 $ million $ million $ million $ million Profit for the year 948.8 923.5 464.5 455.5 Other comprehensive income Items that will not be reclassified to profit or loss: Share of defined benefit plan remeasurements of associates 11.2 13.0 – – 11.2 13.0 – – Items that are or may be reclassified subsequently to profit or loss: Translation differences relating to financial statements of foreign operations 101.4 (19.5) – – Effective portion of changes in fair value of cash flow hedges, net of tax (13.2) (32.8) 3.3 0.3 Net change in fair value of: – Cash flow hedges reclassified to profit or loss, net of tax (3.8) (11.4) 0.3 0.3 – Cash flow hedges on recognition of the hedged items on balance sheet, net of tax (1.8) 1.7 (0.2) – – Available-for-sale financial assets 0.2 (0.1) (0.1) (0.1) Share of hedging reserves of associates 32.4 7.3 – – Reclassification of translation differences arising from subsidiaries’ liquidation process – (6.1) – – 115.2 (60.9) 3.3 0.5 Other comprehensive income for the year, net of tax 126.4 (47.9) 3.3 0.5 Total comprehensive income for the year, attributable to owner of the Company 1,075.2 875.6 467.8 456.0 The accompanying notes form an integral part of these financial statements. 10 STATEMENTS OF CHANGES IN EQUITY YEAR ENDED 31 MARCH 2017 Total equity Currency attributable to Share translation Hedging Other Accumulated owner of the Total capital reserve reserve reserves profits Company equity Group $ million $ million $ million $ million $ million $ million $million At 1 April 2015 2,911.9 (301.3) 40.4 (5.0) 5,882.0 8,528.0 8,528.0 Total comprehensive income for the year Profit for the year – – – – 923.5 923.5 923.5 Other comprehensive income Translation differences relating to financial statements of foreign operations – (19.5) – – – (19.5) (19.5) Reclassification of translation differences arising from subsidiaries’ liquidation process (note 17) – (6.1) – – – (6.1) (6.1) Effective portion of changes in fair value of cash flow hedges, net of tax – – (32.8) – – (32.8) (32.8) Net change in fair value of cash flow hedges: - reclassified to profit or loss, net of tax – – (11.4) – – (11.4) (11.4) - on recognition of the hedged items on balance sheet, net of tax – – 1.7 – – 1.7 1.7 Net change in fair value of available-for-sale financial assets – – – (0.1) – (0.1) (0.1) Share of other comprehensive income of associates – – 7.3 13.0 – 20.3 20.3 Total other comprehensive income – (25.6) (35.2) 12.9 – (47.9) (47.9) Total comprehensive income for the year – (25.6) (35.2) 12.9 923.5 875.6 875.6 Transactions with owner, recognised directly in equity Contribution by and distribution to owner Dividends declared (note 33) – – – – (316.0) (316.0) (316.0) Total transactions with owner – – – – (316.0) (316.0) (316.0) At 31 March 2016 2,911.9 (326.9) 5.2 7.9 6,489.5 9,087.6 9,087.6 The accompanying notes form an integral part of these financial statements. 11 STATEMENTS OF CHANGES IN EQUITY YEAR ENDED 31 MARCH 2017 Total equity Currency attributable to Share translation Hedging Other Accumulated owner of the Total capital reserve reserve reserves profits Company equity Group $ million $ million $ million $ million $ million $ million $million At 1 April 2016 2,911.9 (326.9) 5.2 7.9 6,489.5 9,087.6 9,087.6 Total comprehensive income for the year Profit for the year – – – – 948.8 948.8 948.8 Other comprehensive income Translation differences relating to financial statements of foreign operations – 101.4 – – – 101.4 101.4 Effective portion of changes in fair value of cash flow hedges, net of tax – – (13.2) – – (13.2) (13.2) Net change in fair value of cash flow hedges: - reclassified to profit or loss, net of tax – – (3.8) – – (3.8) (3.8) - on recognition of the hedged items on balance sheet, net of tax – – (1.8) – – (1.8) (1.8) Net change in fair value of available-for-sale financial assets – – – 0.2 – 0.2 0.2 Share of other comprehensive income of associates – – 32.4 11.2 – 43.6 43.6 Total other comprehensive income – 101.4 13.6 11.4 – 126.4 126.4 Total comprehensive income for the year _ 101.4 13.6 11.4 948.8 1,075.2 1,075.2 Transactions with owner, recognised directly in equity Contribution by and distribution to owner Dividends declared (note 33) – – – – (370.0) (370.0) (370.0) Total transactions with owner – – – – (370.0) (370.0) (370.0) At 31 March 2017 2,911.9 (225.5) 18.8 19.3 7,068.3 9,792.8 9,792.8 The accompanying notes form an integral part of these financial statements. 12 STATEMENTS OF CHANGES IN EQUITY YEAR ENDED 31 MARCH 2017 Company Share Hedging Other Accumulated capital reserve reserves profits Total $ million $ million $ million $ million $ million At 1 April 2015 2,911.9 (2.6) 2.0 4,918.1 7,829.4 Total comprehensive income for the year Profit for the year – – – 455.5 455.5 Other comprehensive income Effective portion of changes in fair value of cash flow hedges, net of tax – 0.3 – – 0.3 Net change in fair value of: - cash flow hedges reclassified to profit or loss, net of tax – 0.3 – – 0.3 - available-for-sale financial assets – – (0.1) – (0.1) Total other comprehensive income – 0.6 (0.1) – 0.5 Total other comprehensive income for the year – 0.6 (0.1) 455.5 456.0 Transactions with owner, recognised directly in equity Dividends declared (note 33) – – – (316.0) (316.0) Total transactions with owner – – – (316.0) (316.0) At 31 March 2016 2,911.9 (2.0) 1.9 5,057.6 7,969.4 At 1 April 2016 2,911.9 (2.0) 1.9 5,057.6 7,969.4 Total comprehensive income for the year Profit for the year – – – 464.5 464.5 Other comprehensive income Effective portion of changes in fair value of cash flow hedges, net of tax – 3.3 – – 3.3 Net change in fair value of: - cash flow hedges reclassified to profit or loss, net of tax – 0.3 – – 0.3 - cash flow hedges on recognition of the hedged items on balance sheet, net of tax – (0.2) – – (0.2) - available-for-sale financial assets – – (0.1) – (0.1) Total other comprehensive income – 3.4 (0.1) – 3.3 Total other comprehensive income for the year – 3.4 (0.1) 464.5 467.8 Transactions with owner, recognised directly in equity Dividends declared (note 33) – – – (370.0) (370.0) Total transactions with owner – – – (370.0) (370.0) At 31 March 2017 2,911.9 1.4 1.8 5,152.1 8,067.2 The accompanying notes form an integral part of these financial statements. 13 CONSOLIDATED STATEMENT OF CASH FLOWS YEAR ENDED 31 MARCH 2017 Note 2017 2016 $ million $ million Cash flows from operating activities Profit for the year 948.8 923.5 Adjustments for: Deferred income 93.6 104.0 Depreciation and amortisation 582.9 551.0 Finance costs 24 102.2 142.4 Finance income 23 (65.6) (44.7) Exchange (gain)/loss (8.2) 6.4 Loss on disposal of property, plant and equipment and intangible assets 6.5 6.6 Share of profit of associates and joint venture, net of tax (218.1) (246.4) Tax expense 25 183.2 168.4 Others 0.3 1.0 1,625.6 1,612.2 Changes in working capital: Inventories 2.0 (5.3) Trade and other receivables (35.6) 40.0 Balances with related parties (trade) 14.6 11.5 Trade and other payables 0.5 (49.6) Cash generated from operations 1,607.1 1,608.8 Interest received 60.4 33.9 Net tax paid (100.5) (86.2) Net cash generated from operating activities 1,567.0 1,556.5 Cash flows from investing activities Purchase of property, plant and equipment (1,236.5) (1,209.9) Purchase of intangible assets (45.0) (48.0) Proceeds from disposal of property, plant and equipment and intangible assets 10.2 5.1 Dividends received from associates and joint venture 128.3 62.5 Proceeds from disposal of other investments 13.8 4.0 Acquisition of other investments (5.1) (6.5) Capital repayment by an associate – 78.7 Net cash used in investing activities (1,134.3) (1,114.1) Cash flows from financing activities Proceeds from bank loans and debt obligations 79.9 1,070.5 Repayment of bank loans and debt obligations – (658.5) Dividends paid to owner of the Company (370.0) (316.0) Interest paid (116.1) (108.4) Commitment fee paid (3.0) (12.1) Proceeds from termination of swaps – 9.8 Net cash used in financing activities (409.2) (14.7) Net increase in cash and cash equivalents 23.5 427.7 Cash and cash equivalents at beginning of the year 1,630.2 1,203.3 Effect of exchange rate changes on balances held in foreign currencies 22.8 (0.8) Cash and cash equivalents at end of the year 1,676.5 1,630.2 Restricted cash 14 0.6 – Cash and cash equivalents at end of the year in the Balance Sheets 14 1,677.1 1,630.2 The accompanying notes form an integral part of these financial statements. 14 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2017 These notes form an integral part of the financial statements. The financial statements were authorised for issue by the Board of Directors on 23 May 2017. 1 DOMICILE AND ACTIVITIES Singapore Power Limited (“the Company”) is incorporated in the Republic of Singapore and has its registered office at 2 Kallang Sector, SP Group Building, Singapore 349277. The immediate and ultimate holding company is Temasek Holdings (Private) Limited, a company incorporated in the Republic of Singapore. The principal activities of the Company are that of investment holding and provision of management support services. Its subsidiaries are engaged principally in the transmission and distribution of electricity and gas, provision of related consultancy services and investments in related projects. The consolidated financial statements relate to the Company and its subsidiaries (together referred to as the Group) and the Group’s interests in associates and joint venture (collectively referred to as Group entities). 2 BASIS OF PREPARATION 2.1 Statement of compliance The financial statements have been prepared in accordance with the Singapore Financial Reporting Standards (“FRS”). 2.2 Basis of measurement The financial statements have been prepared on the historical cost basis except as disclosed in the accounting policies set out below. 2.3 Functional and presentation currency These financial statements are presented in Singapore dollars, which is the Company’s functional currency. All financial information presented in Singapore dollars has been rounded to the nearest 0.1 million, unless otherwise stated. 2.4 Use of estimates and judgements The preparation of financial statements in conformity with FRSs requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgements about carrying amounts of assets and liabilities that are not readily apparent from other sources. 15 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2017 2.4 Use of estimates and judgements (cont’d) Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected. Information about critical judgements in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements is discussed below: Taxation The Group is subject to taxes mainly in Singapore and Australia. Significant judgement is required in determining provision for taxes. There are many transactions and calculations during the ordinary course of business for which the ultimate tax determination is uncertain. The Group recognises liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made. Details are set out in note 9 and note 25. Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within the next financial year are discussed below: Impairment of associates Impairment reviews in respect of associates are performed at least annually or when there is any indication that the investment in associates may be impaired. More regular reviews are performed if changes in circumstances or the occurrence of events indicate potential impairment. The Group uses the present value of future cash flows to determine the recoverable amounts of the underlying cash generating units in the associates. In calculating the recoverable amounts, significant management judgement is required in forecasting cash flows of the cash generating units, in estimating the terminal growth values and in selecting an appropriate discount rate. Useful lives of property, plant and equipment Assumptions made regarding the useful lives are based on the regulatory environment and technological developments. These assumptions are subject to risk and there is the possibility that changes in circumstances will alter expectations. Estimating fair values of financial assets and financial liabilities The fair value of financial assets and financial liabilities must be estimated for recognition, measurement and disclosure purposes. Note 30 sets out the basis of valuation of financial assets and liabilities. Accrued revenue Revenue accrual estimates are made to account for the unbilled period between the end-user’s last billing date and the end of the accounting period. The accrual relies on detailed analysis of customers’ historical consumption patterns, which takes into account base usage and sensitivity to consumption growth. The results of this analysis are applied for the number of days over the unbilled period. 16 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2017 2.4 Use of estimates and judgements (cont’d) Revenue recognition Revenue recognised, from use of system charges and transportation of gas, is estimated based on revenue allowed by the Energy Market Authority (“EMA”) (in accordance with the price regulation framework), taking into consideration the services rendered and volume of electricity, gas or services delivered to consumers. Note 3.15 sets out the revenue recognition policy. 2.5 Changes in accounting policies Adoption of new and revised FRSs and Interpretation to FRS The Group has adopted all the new and revised FRSs and Interpretations to FRS (“INT FRS”) that became mandatory for the financial year beginning on 1 April 2016. The adoption of these new FRSs and INT FRS did not have a significant impact to the Group. 3 SIGNIFICANT ACCOUNTING POLICIES The accounting policies set out below have been applied consistently for all periods presented in these financial statements, and have been consistently applied by the Group entities, which addresses changes in accounting policies due to the adoption of new FRSs and Interpretation of FRSs. 3.1 Basis of consolidation Business combinations Business combinations are accounted for using the acquisition method as at the acquisition date, which is the date on which control is transferred to the Group. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, the Group takes into consideration potential voting rights that are currently exercisable. The consideration transferred does not include amounts related to the settlement of pre-existing relationships. Such amounts are generally recognised in profit or loss. Costs related to the acquisition, other than those associated with the issue of debt or equity securities, that the Group incurs in connection with a business combination are expensed as incurred. Any contingent consideration payable is recognised at fair value at the acquisition date and included in the consideration transferred. If the contingent consideration is classified as equity, it is not remeasured and settlement is accounted for within equity. Otherwise, subsequent changes to the fair value of the contingent consideration are recognised in profit or loss. For non-controlling interests that are present ownership interests and entitle their holders to a proportionate share of the acquiree’s net assets in the event of liquidation, the Group elects on a transaction-bytransaction basis whether to measure them at fair value, or at the non-controlling interests’ proportionate share of the recognised amounts of the acquiree’s identifiable net assets, at the acquisition date. All other non-controlling interests are measured at acquisition-date fair value, or, when applicable, on the basis specified in another standard. 17 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2017 3.1 Basis of consolidation (cont’d) Any excess or deficiency of the purchase consideration over the fair value of the identifiable assets acquired and liabilities and contingent liabilities assumed is accounted for as goodwill or bargain purchase gain (see note 3.4). Subsidiaries Subsidiaries are entities controlled by the Group. The Group controls an investee when it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. In the Company’s separate financial statements, investments in subsidiaries are accounted for at cost less impairment losses. The accounting policies of subsidiaries have been changed when necessary to align them with the policies adopted by the Group. Losses applicable to the non-controlling interests in a subsidiary are allocated to the non-controlling interests even if doing so causes the non-controlling interests to have a deficit balance. Loss of control Upon the loss of control, the Group derecognises the assets and liabilities of the subsidiary, any noncontrolling interests and the other components of equity related to the subsidiary. Any surplus or deficit arising on the loss of control is recognised in profit or loss. If the Group retains any interest in the previous subsidiary, then such interest is measured at fair value at the date that control is lost. Subsequently, it is accounted for as an equity-accounted investee or as an available-for-sale financial asset depending on the level of influence retained. Joint arrangements A joint arrangement is a contractual arrangement whereby two or more parties have joint control. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. To the extent the joint arrangement provides the Group with rights to the assets and obligations for the liabilities relating to the arrangement, the arrangement is a joint operation. To the extent the joint arrangement provides the Group with rights to the net assets of the arrangement, the arrangement is a joint venture. The Group recognises its interest in a joint venture as an investment and accounts for the investment using the equity method. The accounting policy for investment in joint venture is set out below. Investments in associates and joint ventures (equity-accounted investees) Associates are those entities in which the Group has significant influence, but not control, over the financial and operating policies of these entities. Significant influence is presumed to exist when the Group holds between 20% and 50% of the voting power of another entity. 18 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2017 3.1 Basis of consolidation (cont’d) Investments in associates and joint ventures are accounted for using the equity method (equity-accounted investees) and are recognised initially at cost. The Group’s investments in equity-accounted investees include goodwill identified on acquisition, net of any accumulated impairment losses. The consolidated financial statements include the Group’s share of the profit or loss and other comprehensive income of the equity-accounted investees, after adjustments to align the accounting policies of the equity-accounted investees with those of the Group, from the date that significant influence or joint control commences until the date that significant influence or joint control ceases. When the Group’s share of losses exceeds its interest in an equity-accounted investee, the carrying amount of the investment, together with any long-term interests that form part thereof, is reduced to zero and the recognition of further losses is discontinued except to the extent that the Group has an obligation to fund the investee’s operations or has made payments on behalf of the investee. Acquisition of non-controlling interests Acquisitions of non-controlling interests are accounted for as transactions with owners in their capacity as owners and therefore no goodwill is recognised as a result of such transactions. The adjustments to non-controlling interests arising from transactions that do not involve the loss of control are based on a proportionate amount of the net assets of the subsidiary. Any difference between the adjustment to non-controlling interests and the fair value of consideration paid is recognised directly in equity and presented as part of equity attributable to owners of the Company. Transactions eliminated on consolidation Intra-group balances and transactions, and any unrealised income or expenses arising from intra-group transactions, are eliminated in preparing the consolidated financial statements. Unrealised gains arising from transactions with equity-accounted investees are eliminated against the investment to the extent of the Group’s interest in the investee. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment. Accounting for subsidiaries and joint venture by the Company Investments in subsidiaries and joint venture are stated in the Company’s balance sheet at cost less accumulated impairment losses. 19 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2017 3.2 Foreign currencies Foreign currency transactions Transactions in foreign currencies are translated to the respective functional currencies of Group entities at the exchange rates at the dates of the transactions. The functional currencies of the Group entities are mainly Singapore dollars and Australian dollars. Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated to the functional currencies at the exchange rate at the reporting date. The foreign currency gain or loss on monetary items is the difference between amortised cost in the functional currency at the beginning of the year, adjusted for effective interest and payments during the year, and the amortised cost in foreign currency translated at the exchange rate at the end of the year. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional currency at the exchange rate prevailing on the date on which the fair value was determined. Non-monetary items in a foreign currency that are measured in terms of historical cost are translated using the exchange rate at the date of the transaction. Foreign currency differences arising on translation are recognised in profit or loss, except for differences arising on the translation of a financial liability designated as a hedge of the net investment in a foreign operation that is effective, available-for-sale equity instruments (see note 3.5), or qualifying cash flow hedges which are recognised in other comprehensive income. Foreign operations The assets and liabilities of foreign operations, excluding goodwill and fair value adjustments arising on acquisition, are translated to Singapore dollars for presentation in these financial statements at exchange rates at the reporting date. The income and expenses of foreign operations are translated to Singapore dollars at exchange rates at the dates of the transactions. Goodwill and fair value adjustments arising on the acquisition of foreign operations on or after 1 January 2005 are treated as assets and liabilities of the foreign operations and translated at the closing rate. For acquisitions prior to 1 January 2005, the exchange rates at the date of acquisition were used. Foreign currency differences are recognised in other comprehensive income, and presented in the foreign currency translation reserve (“translation reserve”) in equity. However, if the foreign operation is a non-wholly-owned subsidiary, then the relevant proportionate share of the translation difference is allocated to the non-controlling interests. When a foreign operation is disposed of, such that control, significant influence or joint control is lost, the cumulative amount in the translation reserve related to that foreign operation is reclassified to profit or loss as part of the gain or loss on disposal. When the Group disposes of only part of its interest in a subsidiary that includes a foreign operation while retaining control, the relevant proportion of the cumulative amount is reattributed to non-controlling interests. When the Group disposes of only part of its investment in an associate or joint venture that includes a foreign operation while retaining significant influence or joint control, the relevant proportion of the cumulative amount is reclassified to profit or loss. When the settlement of a monetary item receivable from or payable to a foreign operation is neither planned nor likely in the foreseeable future, foreign exchange gains and losses arising from such a monetary item are considered to form part of a net investment in a foreign operation. These are recognised in other comprehensive income, and are presented in the translation reserve in equity. 20 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2017 3.3 Property, plant and equipment Recognition and measurement Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of selfconstructed assets includes the cost of materials and direct labour, any other costs directly attributable to bringing the asset to a working condition for their intended use, and the costs of dismantling and removing the items and restoring the site on which they are located and capitalised borrowing cost. Capitalisation of borrowing costs will cease when the asset is ready for its intended use, which is defined by the commencement of revenue earning. Cost may also include transfers from equity of any gain or loss on qualifying cash flow hedges of foreign currency purchases of property, plant and equipment. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment. When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment. The gain or loss on disposal of an item of property, plant and equipment is determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment, and is recognised net within other income/other operating expenses in profit or loss. Subsequent costs The cost of replacing a component of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the component will flow to the Group, and its cost can be measured reliably. The carrying amount of the replaced component is derecognised. The costs of the day-to-day servicing of property, plant and equipment are recognised in profit or loss as incurred. Depreciation Depreciation is based on the cost of an asset less its residual value. Significant components of individual assets are assessed and if a component has a useful life that is different from the remainder of that asset, that component is depreciated separately. Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of each component of an item of property, plant and equipment. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Group will obtain ownership by the end of the lease term. Freehold land and construction-in-progress are not depreciated. 21 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2017 3.3 Property, plant and equipment (cont’d) The estimated useful lives for the current and comparative periods are as follows: Leasehold land Over the term of the lease, ranging from 13 – 99 years Leasehold buildings 3 – 30 years or the lease term, if shorter Plant and machinery - Mains (Electricity) 20 – 30 years - Mains (Gas) 20 – 50 years - Transformers and switchgear 20 – 30 years Other plant and equipment (principally gas storage plant, remote control, network and telemetering equipment) Motor vehicles and office equipment 2 – 40 years 2 – 10 years Depreciation methods, useful lives and residual values are reviewed at each financial year end, and adjusted if appropriate. 3.4 Intangible assets Goodwill Goodwill that arises upon the acquisition of subsidiaries is included in intangible assets and represents the excess of: - the fair value of the consideration transferred; plus - the recognised amount of any non-controlling interests in the acquiree; plus - if the business combination is achieved in stages, the fair value of the pre-existing equity interest in the acquiree, over the net recognised amount (generally fair value) of the identifiable assets acquired and liabilities assumed. When the excess is negative, a bargain purchase gain is recognised immediately in profit or loss. Subsequent measurement Goodwill is measured at cost less accumulated impairment losses. In respect of equity-accounted investees, the carrying amount of goodwill is included in the carrying amount of the investment, and an impairment loss on such an investment is not allocated to any asset, including goodwill, that forms part of the carrying amount of the equity-accounted investee. 22 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2017 3.4 Intangible assets (cont’d) Other intangible assets Other intangible assets with finite useful lives are measured at cost less accumulated amortisation and accumulated impairment losses. Expenditure on internally generated goodwill is recognised in profit or loss as an expense when incurred. Intangible assets that have indefinite lives or that are not available for use are stated at cost less accumulated impairment losses. Software is stated at cost less accumulated amortisation and accumulated impairment losses. Amortisation is recognised in profit or loss on a straight-line basis over the estimated useful life of 5 years. Deferred expenditure relates mainly to contributions paid by the Group in accordance with regulatory requirements towards capital expenditure costs incurred by electricity generation companies and onshore receiving facility operator, and is stated at cost less accumulated amortisation and accumulated impairment losses. Deferred expenditure is amortised on a straight-line basis over the period in which the Group derives benefits from the capital contribution payments, which is generally the useful life of the relevant equipment ranging from 7 to 19 years. Intangible assets under construction are stated at cost. No amortisation is provided until the intangible assets are ready for use. 3.5 Financial instruments Non-derivative financial assets The Group initially recognises loans and receivables and deposits on the date they are originated. All other financial assets (including assets designated at fair value through profit or loss) are recognised initially on the trade date at which the Group becomes a party to the contractual provisions of the instrument. The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. Any interest in transferred financial assets that is created or retained by the Group is recognised as a separate asset or liability. Financial assets and liabilities are offset and the net amount presented in the balance sheet when, and only when, the Group has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. The rights of offset must not be contingent on a future event and must be enforceable in the event of bankruptcy or insolvency of all the counterparties to the contract. The Group classifies non-derivative financial assets into the following categories: financial assets at fair value through profit or loss, held-to-maturity financial assets, loans and receivables and available-for-sale financial assets. 23 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2017 3.5 Financial instruments (cont’d) Financial assets at fair value through profit or loss A financial asset is classified at fair value through profit or loss if it is classified as held for trading or is designated as such upon initial recognition. Financial assets are designated at fair value through profit or loss if the Group manages such investments and makes purchase and sale decisions based on their fair value in accordance with the Group’s documented risk management or investment strategy. Attributable transaction costs are recognised in profit or loss as incurred. Financial assets at fair value through profit or loss are measured at fair value, and changes therein are recognised in profit or loss. Held-to-maturity financial assets If the Group has the positive intent and ability to hold debt securities to maturity, then such financial assets are classified as held-to-maturity. Held-to-maturity financial assets are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, held-to-maturity financial assets are measured at amortised cost using the effective interest method, less any impairment losses. Any sale or reclassification of a more than insignificant amount of held-to-maturity investments not close to their maturity would result in the reclassification of all held-to-maturity investments as available-forsale. It would also prevent the Group from classifying investment securities as held-to-maturity for the current and the following two financial years. Loans and receivables Loans and receivables are financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, loans and receivables are measured at amortised cost using the effective interest method, less any impairment losses. Cash and cash equivalents Cash and cash equivalents comprise cash balances and bank deposits. Available-for-sale financial assets Available-for-sale financial assets are non-derivative financial assets that are designated as available-forsale and that are not classified in any of the above categories of financial assets. Available-for-sale financial assets are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, they are measured at fair value and changes therein, other than impairment losses (see note 3.7) and foreign currency differences on available-for-sale monetary items (see note 3.2), are recognised in other comprehensive income and presented in the fair value reserve in equity. When an investment is derecognised, the cumulative gain or loss in other comprehensive income is reclassified to profit or loss. 24 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2017 3.5 Financial instruments (cont’d) Non-derivative financial liabilities The Group initially recognises debt securities issued and bank borrowings on the date that they are originated. All other financial liabilities (including liabilities designated at fair value through profit or loss) are recognised initially on the trade date, which is the date that the Group becomes a party to the contractual provisions of the instrument. The Group derecognises a financial liability when its contractual obligations are discharged, cancelled or expired. Financial assets and liabilities are offset and the net amount presented in the balance sheet when, and only when, the Group has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. The Group classifies non-derivative financial liabilities into the other financial liabilities category. Such financial liabilities are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, these financial liabilities are measured at amortised cost using the effective interest method. Bank overdrafts that are repayable on demand and form an integral part of the Group’s cash management are included as a component of cash and cash equivalents for the purpose of the statement of cash flows. Ordinary shares Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are recognised as a deduction from equity, net of any tax effects. Derivative financial instruments, including hedge accounting The Group holds derivative financial instruments to hedge its foreign currency and interest rate risk exposures. Embedded derivatives are separated from the host contract and accounted for separately if the economic characteristics and risks of the host contract and the embedded derivative are not closely related. A separate instrument with the same terms as the embedded derivative would meet the definition of a derivative. On initial designation of the derivative as the hedging instrument, the Group formally documents the relationship between the hedging instrument and hedged item, including the risk management objectives and strategy in undertaking the hedge transaction and the hedged risk, together with the methods that will be used to assess the effectiveness of the hedging relationship. The Group makes an assessment, both at the inception of the hedge relationship as well as on an ongoing basis, of whether the hedging instruments are expected to be “highly effective” in offsetting the changes in fair value or cash flows of the respective hedged items attributable to the hedged risk and whether the actual results of each hedge are within a range of 80%-125%. For a cash flow hedge of a forecast transaction, the transaction should be highly probable to occur and should present an exposure to variations in cash flows that could ultimately affect reported profit or loss. 25 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2017 3.5 Financial instruments (cont’d) Derivatives are recognised initially at fair value; attributable transaction costs are recognised in profit or loss as incurred. Subsequent to initial recognition, derivatives are measured at fair value, and changes therein are accounted for as described below. Cash flow hedges When a derivative is designated as the hedging instrument in a hedge of the variability in cash flows attributable to a particular risk associated with a recognised asset or liability or a highly probable forecast transaction that could affect profit or loss, the effective portion of changes in the fair value of the derivative is recognised in other comprehensive income and presented in the hedging reserve in equity. Any ineffective portion of changes in the fair value of the derivative is recognised immediately in profit or loss. When the hedged item is a non-financial asset, the amount accumulated in equity is included in the carrying amount of the asset when the asset is recognised. In other cases, the amount accumulated in equity is reclassified to profit and loss in the same period that the hedged item affects profit or loss. If the hedging instrument no longer meets the criteria for hedge accounting, expires or is sold, terminated or exercised, or the designation is revoked, then hedge accounting is discontinued prospectively. If the forecast transaction is no longer expected to occur, then the balance in equity is reclassified to profit or loss. Fair value hedges Changes in the fair value of a derivative hedging instrument designated as a fair value hedge are recognised in profit or loss. The hedged item is adjusted to reflect changes in its fair value in respect of the risk being hedged; the gain or loss attributable to the hedged risk is recognised in profit or loss with an adjustment to the carrying amount of the hedged item. Derivatives that do not qualify for hedge accounting When a derivative financial instrument is not designated in a hedge relationship that qualifies for hedge accounting, all changes in its fair value are recognised immediately in profit or loss. Intra-group financial guarantees in the separate financial statements Financial guarantees are financial instruments which are issued by the Company that requires the issuer to make specified payments to reimburse the holder for the loss it incurs because a specified debtor fails to meet payment when due in accordance with the original or modified terms of a contractual agreement. Financial guarantees are recognised initially at fair value and are classified as financial liabilities. Subsequent to initial measurement, the financial guarantees are stated at the higher of the initial fair value less cumulative amortisation and the amount that would be recognised if they were accounted for as contingent liabilities. When financial guarantees are terminated before their original expiry date, the carrying amount of the financial guarantees is transferred to profit or loss. 26 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2017 3.6 Leased assets Leases in terms of which the Group assumes substantially all the risks and rewards of ownership are classified as finance leases. Upon initial recognition, the leased asset is measured at an amount equal to the lower of its fair value and the present value of the minimum lease payments. Subsequent to initial recognition, the asset is accounted for in accordance with the accounting policy applicable to that asset. Other leases are operating leases and are not recognised in the Group’s balance sheet. Determining whether an arrangement contains a lease At inception of an arrangement, the Group determines whether such an arrangement is or contains a lease. A specific asset is the subject of a lease if fulfilment of the arrangement is dependent on the use of that specified asset. An arrangement conveys the right to use the asset if the arrangement conveys to the Group the right to control the use of the underlying asset. At inception or upon reassessment of the arrangement, the Group separates payments and other consideration required by such an arrangement into those for the lease and those for other elements on the basis of their relative fair values. If the Group concludes for a finance lease that it is impracticable to separate the payments reliably, then an asset and a liability are recognised at an amount equal to the fair value of the underlying asset. Subsequently, the liability is reduced as payments are made and an imputed finance charge on the liability is recognised using the Group’s incremental borrowing rate. 3.7 Impairment Non-derivative financial assets A financial asset not carried at fair value through profit or loss, including an interest in an associate and joint venture, is assessed at each reporting date to determine whether there is any objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss event had occurred after the initial recognition of the asset, and that the loss event had a negative effect on the estimated future cash flows of that asset that can be estimated reliably. Loans and receivables and held-to-maturity investments The Group considers evidence of impairment for loans and receivables and held-to-maturity investments at both a specific asset and collective level. All individually significant loans and receivables and heldto-maturity investments are assessed for specific impairment. All individually significant receivables and held-to-maturity investments found not to be specifically impaired are then collectively assessed for any impairment that has been incurred but not yet identified. Loans and receivables and held-to-maturity investments that are not individually significant are collectively assessed for impairment by grouping together loans and receivables and held-to-maturity investments with similar risk characteristics. In assessing collective impairment, the Group uses historical trends of the probability of default, the timing of recoveries and the amount of loss incurred, adjusted for management’s judgement as to whether current economic and credit conditions are such that the actual losses are likely to be greater or less than suggested by historical trends. 27 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2017 3.7 Impairment (cont’d) An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset’s original effective interest rate. Losses are recognised in profit or loss and reflected in an allowance account against loans and receivables or held-to-maturity investments. Interest on the impaired asset continues to be recognised. When a subsequent event (e.g. repayment by a debtor) causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through profit or loss. Available-for-sale financial assets Impairment losses on available-for-sale financial assets are recognised by reclassifying the losses accumulated in the fair value reserve in equity to profit or loss. The cumulative loss that is reclassified from equity to profit or loss is the difference between the acquisition cost, net of any principal repayment and amortisation, and current fair value, less any impairment loss recognised previously in profit or loss. Changes in impairment provisions attributable to application of effective interest method are reflected as a component of interest income. If, in a subsequent period, the fair value of an impaired available-forsale debt security increases and the increase can be related objectively to an event occurring after the impairment loss was recognised in profit or loss, then the impairment loss is reversed. The amount of the reversal is recognised in profit or loss. However, any subsequent recovery in the fair value of an impaired available-for-sale equity security is recognised in other comprehensive income. Non-financial assets The carrying amounts of the Group’s non-financial assets, other than inventories and deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amounts are estimated. For goodwill and intangible assets that have indefinite useful lives or that are not yet available for use, recoverable amount is estimated each year at the same time. An impairment loss is recognised if the carrying amount of an asset or its related cash-generating unit (“CGU”) exceeds its estimated recoverable amount. The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or CGU. Subject to an operating segment ceiling test, for the purposes of goodwill impairment testing, CGUs to which goodwill has been allocated are aggregated so that the level at which impairment testing is performed reflects the lowest level at which goodwill is monitored for internal reporting purposes. Goodwill acquired in a business combination is allocated to groups of CGUs that are expected to benefit from the synergies of the combination. The Group’s corporate assets do not generate separate cash inflows and are utilised by more than one CGU. Corporate assets are allocated to CGUs on a reasonable and consistent basis and tested for impairment as part of the testing of the CGU to which the corporate asset is allocated. 28 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2017 3.7 Impairment (cont’d) Impairment losses are recognised in profit or loss. Impairment losses recognised in respect of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to the CGU (group of CGUs), and then to reduce the carrying amounts of the other assets in the CGU (group of CGUs) on a pro rata basis. An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised. Such reversal of impairment is recognised in profit or loss. Goodwill that forms part of the carrying amount of an investment in an associate or a joint venture is not recognised separately, and therefore is not tested for impairment separately. Instead, the entire amount of the investment in an associate or a joint venture is tested for impairment as a single asset when there is objective evidence that the investment in an associate or a joint venture may be impaired. 3.8 Inventories Spare parts, accessories and other consumables are measured at the lower of cost and net realisable value. Cost is determined based on the weighted average method, and includes expenditure in acquiring the inventories and other costs incurred in bringing them to their existing location and condition. Cost may also include transfers from other comprehensive income of any gain or loss on qualifying cash flow hedges of foreign currency purchases of inventories. Allowance for obsolete, deteriorated or damaged stocks is made when considered appropriate. 3.9 Accrued revenue Revenue accrual estimates are made to account for the unbilled amount at the reporting date. 3.10 Employee benefits Provision is made for the accrued liability for employee entitlements arising from services rendered by employees up to the reporting date. The provision represents the Group’s total estimated liability at the reporting date for employee entitlements. Long service leave The liability for long service leave is recognised in the provision for employee benefits and is measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date, including on-costs. Consideration is given to expected future salary levels, experience of employee departures and periods of service. Expected future payments are discounted using interest rates on government guaranteed bonds with terms to maturity and currencies that match, as closely as possible, the estimated future cash outflows. 29 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2017 3.10 Employee benefits (cont’d) Defined contribution plans A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution plans are recognised as an employee benefit expense in profit or loss in the periods during which services are rendered by employees. Short-term employee benefits Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A liability is recognised for the amount expected to be paid under shortterm cash bonus or profit-sharing plans if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the obligation can be estimated reliably. 3.11 Provisions A provision is recognised if, as a result of past event, the Group has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as finance cost. Environmental Environmental provision is made for the rehabilitation of sites based on the estimated costs of the rehabilitation. The liability includes the costs of reclamation, plant closure and dismantling, and waste site closure. The liability is determined based on the present value of the obligation. Annual adjustments to the liability are recognised in profit or loss over the estimated life of the sites. The costs are estimated based on assumptions of current legal requirements and technologies. Any changes in estimates are dealt with on a prospective basis. Onerous contracts A provision for onerous contracts is recognised when the expected benefits to be derived by the Group from a contract are lower than the unavoidable cost of meeting its obligations under the contract. The provision is measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract. Before a provision is established, the Group recognises any impairment loss on the assets associated with that contract. 3.12 Deferred income Deferred income comprises (i) government grants for the purchase of depreciable assets, (ii) contributions made by certain customers towards the cost of capital projects received prior to 1 July 2009 and (iii) use of system charges, transportation of gas, sale of electricity and Market Support Services Licence fees. 30 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2017 3.12 Deferred income (cont’d) Government grants and customer contributions Deferred income is recognised on a straight-line basis and taken to profit or loss over the periods necessary to match the depreciation of the assets purchased with the government grants and customers’ contributions. Use of system charges, transportation of gas, sale of electricity and Market Support Services Licence fees Deferred income arises when billings vary from revenue recognised. Deferred income is recognised in profit or loss over the periods necessary to adjust allowed revenue (in accordance with the price regulation framework or regulatory formulae), to revenue earned based on services rendered. At the end of each regulatory period, after adjusting for amounts to be refunded, any outstanding balance is taken to profit or loss as revenue. 3.13 Price regulation and licence The Group’s operations in Singapore are regulated under the Electricity Licence, Gas Supply Licence and the Market Support Services Licence issued by the Energy Market Authority (“EMA”) of Singapore. Revenue to be earned from the supply and transmission of electricity, transportation of gas and the provision of market support services is regulated based on certain formulae and parameters set out in those licence, relevant acts and codes. Actual revenue billed may vary from that allowed due to volume variances. This may result in adjustments that may increase or decrease tariffs in succeeding periods. Amounts to be recovered or refunded are brought to account as adjustments to revenue in the period in which the Group becomes entitled to the recovery or liable for the refund. The Group’s capital expenditure may vary from its regulatory plan and is subject to a review by the EMA. The results of the variances in capital expenditure may be translated into price adjustments, if any, in the following reset period. 3.14 Disposal group held-for-sale Non-current assets and disposal groups classified as held-for-sale are measured at the lower of their carrying amount and fair value less costs to sell. Non-current assets and disposal groups are classified as held-for-sale if their carrying amounts will be recovered principally through a sale transaction rather than through continuing use. Property, plant and equipment and intangible assets once classified as held for sale are not depreciated or amortised. 3.15 Revenue recognition Provided it is probable that the economic benefits will flow to the Group and the Company and the revenue and costs, if applicable, can be measured reliably, revenue is recognised in profit or loss as follows: 31 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2017 3.15 Revenue recognition (cont’d) Sale of electricity Revenue from the sale of electricity is recognised when electricity is delivered to consumers. Use of system charges and transportation of gas The use of system charges and revenue from the transportation of gas are approved by the EMA for a 5-year regulatory period in accordance with the price regulation framework. Revenue is recognised when services are rendered and the volume of electricity and gas is delivered to consumers. District cooling service income Income from services is recognised when the services are rendered. The revenue corresponds to the quantum which the Group is entitled to under Condition 13 (Economic Regulation) of its District Cooling Services Licence issued by the Energy Market Authority of Singapore. The variance between tariff billing and the revenue entitled is reported as changes to the economic regulation equalisation account, an asset recorded in trade and other receivables for an under-recovery, and a liability recorded in trade and other payables for an over-recovery. Transfers of assets from customers Revenue arising from assets transferred from customers is recognised in profit or loss when the performance obligations associated with receiving those customer contributions are met. In determining the amount of revenue to be recognised, the fair value of the assets is required to be estimated and the circumstances and nature of the transferred assets, which includes market value and relevant rateregulated framework governing those assets, are taken into account. Agency fees and Market Support Services Licence fees Agency fees from acting as billing agent and fees for services provided under the Market Support Services Licence are recognised when the services are rendered. Dividend income Dividend income is recognised on the date that the Group’s right to receive payment is established. Rental income Rental income is recognised in profit or loss on a straight-line basis over the term of the lease. Support service income and management fees Support service income and management fees are recognised when the services are rendered. 32 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2017 3.15 Revenue recognition (cont’d) Capital and maintenance works income Revenue from rendering of capital and maintenance service is recognised in proportion to the stage of completion of the contract when the stage of contract completion can be reliably measured. The stage of completion is assessed by reference to surveys of work performed. Where the outcome of capital and maintenance contract cannot be reliably estimated, contract costs are expensed as incurred. Revenue is only recognised to the extent of costs incurred where it is probable that the costs will be recovered. An expected loss is recognised immediately as an expense. 3.16 Leases As lessor Leases in which the Group does not transfer substantially all the risks and rewards of ownership of the asset are classified as operating leases. Initial direct costs incurred in negotiating an operating lease are added to the carrying amount of the leased asset and recognised over the lease term. Rental income under operating leases are recognised in profit or loss over the term of the lease. Where assets are leased under a finance lease, the present value of the lease payments is recognised as a receivable. The difference between the gross receivable and the present value of the receivable is recognised as unearned finance income. Lease income is recognised over the lease term using the net investment method, which reflects a constant periodic rate of return. Contingent rental income is recognised in profit or loss in the accounting period in which they are incurred. As lessee Where the Group has the use of assets under operating leases, payments made under the leases are recognised in profit or loss on a straight-line basis over the term of the lease. Lease incentives received are recognised in profit or loss as an integral part of the total lease payments made. 3.17 Finance income and costs Finance income comprises interest income on funds invested. Interest income is recognised as it accrues, using the effective interest method. Finance costs comprise interest expense on borrowings, unwinding of the discount on provisions, fair value gains or losses on financial assets and liabilities at fair value through profit or loss, impairment losses recognised on financial assets (other than trade receivables), gains or losses on hedging instruments that are recognised in profit or loss and amortisation of transaction costs capitalised. Borrowing costs that are not directly attributable to the acquisition, construction or production of a qualifying asset are recognised in profit or loss using the effective interest method. 33 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2017 3.18 Tax expense Tax expense comprises current and deferred tax. Current and deferred taxes are recognised in profit or loss except to the extent that it relates to a business combination, or items recognised directly in equity or in other comprehensive income. Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for: - temporary difference on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss; - temporary differences related to investments in subsidiaries, associates and joint ventures to the extent that the Group is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and - taxable temporary differences arising on the initial recognition of goodwill. Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they in

Tugas pasti kesihatan grid kuasa ibarat seorang ‘jururawat’ UMPAMA SEORANG JURURAWAT: Pegawai Teknikal pasukan Rangkaian Transmisi SP PowerGrid dilihat sedang melaksanakan “pemeriksaan kesihatan” terhadap salah satu peralatan kuasa elektrik SP. – FOTO SP IBARAT seorang jururawat. Begitulah tugas yang digalas Pegawai Teknikal, Encik Ameerul Mueminiin Abdu Rahman di Singapore Power (SP) demi memastikan kesihatan grid kuasa tempatan terus beroperasi dengan lancar. Biarpun begitu, bapa seorang anak berusia 39 tahun itu berkata, pekerjaannya di Rangkaian Transmisi SP PowerGrid itu cukup memuaskan kerana ia menawarkan banyak peluang termasuk membolehkannya melanjutkan pengajian di peringkat lebih tinggi. Encik Ameerul berkata pekerjaannya yang melibatkan pemeriksaan dan penyelenggaraan grid kuasa elektrik setempat umpama seorang pekerja penjagaan kesihatan bagi memastikan sistem tenaga itu sentiasa sihat dan dapat menyalurkan kuasa elektrik kepada rumah penduduk setempat. “Dengan berbuat demikian, kami boleh menjangkakan kerosakan yang bakal berlaku pada peralatan grid kuasa dan selepas itu kami dapat menjalakan tugas cegah kerosakan secara terlebih dahulu,” katanya. Salah satu projek besar yang dilakukan Encik Ameerul adalah usaha penyelenggaraan alat switchgear di pencawang Labrador. Switchgear merupakan komponen penting bagi memastikan tenaga elektrik disalurkan dengan lancar. “Tidak kira komponen peralatan itu kecil atau pun besar, kami tetap melaksanakan tugas dalam membersih, mengganti dan memastikan alat itu baik untuk digunakan,” tambahnya lagi. Biarpun pekerjaannya memerlukan banyak tenaga dan pengorbanan sekiranya perlu memperbaiki peralatan secara tiba-tiba, Encik Ameerul sentiasa terkenang sifat rajin arwah ayahnya dahulu yang bekerja dalam cabang Operasi Gas Kumpulan SP. “Oleh kerana ibu bapa saya telah berpisah, saya sering bertemu dengan ayah ketika beliau berada di tapak pekerjaan. Di situ saya tertarik dengan cara beliau melakukan pekerjaan, dengan rajin dan jujur dan telah menjalin hubungan rapat dengan para kontraktor di bawah kepimpinannya. “Ayah sayalah yang menggalakkan saya untuk bekerja di SP dan sejak itu saya tidak pernah memandang ke belakang.” Encik Ameerul mula bekerja di SP tujuh bulan selepas beliau menghabiskan Perkhidmatan Negara (NS) pada 2012 kerana ingin mengikut jejak arwah ayahnya itu. Beliau menerima tajaan SP untuk menjalani Higher Nitec dan Politeknik. Kededuanya mengambil masa lima tahun. Tempoh yang dilaluinya itu merupakan tempoh yang paling sukar kerana genap pada jam enam petang, rakan sekerja pulang ke rumah manakala beliau perlu bergegas mengikuti kuliah. Namun pengorbanan itu terbukti berbaloi setelah beliau memperolehi Diploma Kejuruteraan Elektrik dan Elektronik pada 2017 dan menjadi seorang Pegawai Teknikal setahun kemudian. “Dahulu saya mengusik ayah saya bahawa pekerjaannya mudah sekali. Namun sekarang, saya sedar betapa beratnya tanggungjawab yang perlu dipikul menjaga grid kuasa elektrik itu. “Cabaran yang saya hadapi sejauh ini merupakan sebahagian daripada pekerjaan saya, daripada dikejutkan pada tengah malam untuk menyelesaikan masalah di pencawang dan mencari puncanya, saya mengambil ini sebagai pengalaman pembelajaran buat pengembangan diri saya sendiri,” jelas beliau lagi.

The digital board provides real-time figures of a block’s aggregated water and electricity consumption and the resulting carbon emissions generated over the previous 24 hours. PHOTO: TAMPINES TOWN COUNCIL/FACEBOOK ‘Eco boards’ to track utilities usage at five Tampines HDB blocks Rei Kurohi Residents from about 633 households staying in five Housing Board blocks in Tampines can now track their blocks’ utilities usage at “eco boards” installed at their lift lobbies under a pilot programme. The digital boards provide real-time figures of the block’s aggregated water and electricity consumption and the resulting carbon emissions generated over the previous 24 hours. They also offer residents tips on lowering their utilities consumption and will let them take part in energy-saving challenges through competitions with other blocks. Speaking at the launch event yesterday morning at Block 878A in Tampines Avenue 8, Minister for Social and Family Development Masagos Zulkifli said the eco boards are part of the Tampines Town Council’s effort to make the estate Singapore’s first “eco town”. Mr Masagos, who is the MP for the Tampines West ward of Tampines GRC, noted that Singapore is aiming to reduce the amount of water used by households to 130 litres per person daily by 2030, down from the current amount of about 140 litres daily. “To get there, there are a lot of things that need to be done. First, we need to get information to our residents for them to know how they compare with others in terms of usage and what they can do to reduce their water usage over time.” Three other Tampines GRC MPs – Ms Cheng Li Hui, Mr Desmond Choo and Mr Baey Yam Keng – also attended the launch. More eco boards will be installed at five other blocks in Tampines over the next two months under the pilot, which will last about six months. The programme is the result of a partnership between Tampines Town Council and utilities provider SP Group, which designed and developed the boards. Mr Chang Sau Sheong, chief executive of energy tech company SP Digital under SP Group, said during the launch that the boards will complement the SP Utilities app, which was rolled out in 2015 to let consumers track their individual consumption. On top of its main aim to change residents’ behaviour and nudge them to reduce their consumption, the boards will also help the town council and municipal operators improve estate management efficiency by enabling them to monitor utilities used for common areas. This will allow them to pick up any anomalies and react quickly, Mr Chang said. “Today, what they have is end of the month (figures). This is often too late, say, if there’s a leakage in the water supply or some issues with the electricity usage.” rei@sph.com.sg

新 能 源 手 机 应 用 让 用 户 监 测 能 源 用 量 公 众 未 来 可 通 过 手 机 应 用 追 踪 能 源 使 用 量 , 从 而 减 少 碳 足 迹 。 新 能 源 集 团 昨 天 发 文 告 说 , 从 今 年 12 月 起 , 本 地 160 万 个 住 户 和 企 业 将 可 利 用 新 能 源 “SP Utilities” 手 机 应 用 里 的 “ 碳 足 迹 追 踪 器 ” 功 能 , 追 踪 日 常 生 活 的 能 源 使 用 量 , 培 养 节 能 习 惯 , 减 少 碳 足 迹 。 新 能 源 集 团 总 裁 黄 锦 贤 说 : “ 这 项 新 功 能 将 让 用 户 了 解 他 们 的 行 为 如 何 影 响 环 境 , 从 而 改 变 生 活 习 惯 , 迈 向 可 持 续 的 生 活 方 式 。” 应 用 里 的 模 拟 工 具 , 可 根 据 用 户 的 日 常 活 动 计 算 每 日 的 碳 排 放 量 , 包 括 消 费 习 惯 、 交 通 习 惯 及 能 源 使 用 量 等 。 用 户 也 可 通 过 应 用 游 戏 , 与 家 人 和 朋 友 一 起 竞 赛 , 鼓 励 彼 此 实 现 “ 绿 色 目 标 ”。 不 论 公 众 使 用 的 是 哪 个 供 电 商 或 电 表 类 型 , 只 要 拥 有 “SP Utilities” 账 户 就 可 下 载 应 用 , 使 用 “ 碳 足 迹 追 踪 器 ”。 Source: Lianhe Zaobao © Singapore Press Holdings Limited. Permission required for reproduction.

Media Release Application for Singapore Digital Wholesale Banking Licence AMTD Group, SP Group, Xiaomi Finance, and Funding Societies (collectively, the “Parties”), today jointly announced the formation of an exclusive strategic partnership and a submission of application to Monetary Authority of Singapore (“MAS”) for a digital wholesale banking licence on December 31st, 2019. The Parties are committed to creating revolutionary platform banking solutions to the SMEs and entrepreneurs, focusing on Southeast Asia and Greater China in particular, the Greater Bay Area, in all stages of their growth. The digital bank is devoted to empowering and enabling sustainable developments of SMEs and entrepreneurs through innovative financial solutions and products, by deploying state-of-the-art including AI & big data analytics. By combining the strengths and network of resources of the Parties, the digital bank is committed to drive and connect these SMEs to the capital markets, facilitate green and sustainable developments and financing options, and improve their productivity and efficiency through IoT platform and smart devices. Mr. Calvin Choi, Chairman and CEO of the AMTD Group who leads the consortium, said, “Our ultimate goal is to establish Singapore’s most innovative platform bank through an ecosystem of strategic partners to cater for the entire spectrum of funding and business development needs of SMEs and entrepreneurs. Eventually these successful customers will become the most valuable additions and long term partners to our ecosystem and banking platform.” Accordingly, these SMEs and entrepreneurs will be best prepared and well connected to the Singapore capital markets and beyond, and their footprint will be extended outside of ASEAN onwards to other parts of Asia including the Greater Bay Area. “We are committed to providing a complete and well-rounded SME CONNECT program to cultivate and support the growing needs of these companies in order to groom the next generation of leaders in their respective industries as well as strengthen their value creation and contributions to the Singapore society.” Mr. Calvin Choi added. “By working with impact-focused partners, we shall further enable financial inclusion for SMEs and facilitate SMEs’ growth into regionally competitive companies, ultimately contributing to the Singapore society.” added Mr. Kelvin Teo, Co-founder and CEO of Funding Societies, a home-grown Singaporean fintech firm. Mr. Hong Feng, Co-founder and Senior Vice President of Xiaomi Corporation, Chairman and CEO of Xiaomi Finance, said, “Singapore is the pivotal base of FinTech development in Southeast Asia. Xiaomi’s strategic collaboration and alliance with AMTD, SP Group and Funding Societies aims to lead innovation in Singapore’s FinTech industry and accelerate financial inclusion. As an international Internet company, Xiaomi will leverage on its global lead in 5G and AIoT, together with its partners, build a Singaporean digital bank with superior products, bringing new vigor and vitality into global digital banking and new energy to Southeast Asia markets.” “SP Group is building on our relationship with every utilities customer in Singapore to enable SMEs to achieve business sustainability. With SMEs increasingly adopting green practices, we can support their aspirations through cost-effective financing. This will enable them to make business decisions that contribute to Singapore’s sustainability targets.” said Mr. Chuah Kee Heng, Board Director, SPComm, a subsidiary of SP Group. AMTD Group is a diversified conglomerate with a strong focus and various expansion plans in Singapore, eyeing Singapore as a gateway to the rest of Southeast Asia economies. AMTD Group is a co-founder of the Airstar Bank, a newly licensed virtual bank in Hong Kong. In addition, AMTD Group’s core subsidiaries include AMTD International Inc. (NYSE: HKIB), the largest independent investment bank in Asia in terms of market capitalization as well as profitability. AMTD International Inc. announced its plan to have its secondary listing on SGX within this year. By selecting SGX as its first Asian destination to list, AMTD demonstrates its commitment to Singapore and will bring more Asian companies to conduct IPO and fixed income activities on SGX. AMTD embraces the fintech and technology innovation in Singapore over the past few years, and has been the Grand Sponsor of the Singapore Fintech Festival for 3 consecutive years from 2017 to 2019. AMTD is the first corporate founding member of the ASEAN Financial Innovation Network (“AFIN”), with Mr. Calvin Choi sitting on the board of directors of AFIN. Mr. Calvin Choi was also awarded as an “Asia Fintech Leader” by the Singapore Fintech Association. Apart from the technology industry, AMTD Group’s property arm AMTD Property Development Group has recently completed its SGD 289 million acquisition of a Singapore’s signature service apartment in central business district from OUE and is now the controlling shareholder of the property - Oakwood Premier AMTD Singapore. SP Group is a leading energy utilities group in the Asia Pacific. It owns and operates electricity and gas transmission and distribution businesses in Singapore and Australia, and district cooling businesses in Singapore and China. SP Group is committed to providing customers with reliable and efficient energy utilities services. About 1.6 million industrial, commercial and residential customers in Singapore benefit from SP Group’s world-class transmission, distribution and market support services. These networks are amongst the most reliable and cost-effective world-wide. SP Group also drives digital solutions to empower customers to manage their utilities, reduce consumption and save cost. Xiaomi Corporation (SEHK: 1810), is a leading internet company with smartphones and smart hardware connected by an IoT platform at its core, the world’s top five smartphone company and the world’s largest IoT platform. Xiaomi products are present in more than 90 countries and regions around the world and have a leading foothold in many of them. Founded in 2010, and listed on the Hong Kong Stock Exchange in 2018, Xiaomi is the fastest company attaining the Fortune 500 list in the shortest period of time in history. Funding Societies | Modalku is the largest SME digital financing platform in Southeast Asia, licensed in Singapore, Indonesia and Malaysia. Backed by Sequoia India and Softbank Ventures Asia Corp., it provides business financing to SMEs, which is crowdfunded by individual and institutional investors. In 4 years, it has helped finance over 1 million business loans with over S$1 billion in funding. It was given the MAS FinTech Award in 2016, the Global SME Excellence Award at the United Nations’ ITU Telecom World in 2017 and Fintech Top 100 by KPMG in 2018 and Brands for Good in 2019. 7 January 2020

News Release SP Group Acquires ENGIE's 40 Per Cent Stake in Chongqing Sino-French Energy Services Singapore, 20 January 2021 – SP Group (SP) today announced an agreement with ENGIE SA, to acquire ENGIE’s 40 per cent stake in Sino-French Energy Services Co. Ltd (SFES) in Chongqing, China. This is SP’s first acquisition of energy assets in China, growing the company’s China presence with sustainable energy solutions. SP’s Group Chief Executive Officer, Mr Stanley Huang, said, “The acquisition of ENGIE’s stake in SFES strengthens SP Group’s District Cooling and Heating presence in Chongqing and expands our capabilities into Combined Cooling Heating and Power (CCHP) offerings for the hospital segment. Together with Chongqing Gas Group, we will continue to play a key role in supporting the hospitals to adopt more energy efficient CCHP and grow the CCHP market share.” Established in 2010, SFES was a joint venture company between ENGIE and Chongqing Gas Group, a state-owned enterprise that owns 80 per cent of Chongqing’s gas distribution network. SFES is the market leader for CCHP solutions in Chongqing. It operates CCHP solutions deployed in three of the city’s hospitals as well as a District Cooling and Heating plant that serves the Chongqing Danzishi Central Business District. The district is located 2.7 kilometres across the Yangtze river from SP’s integrated cooling and heating plant in Raffles City Chongqing. SP Group runs an advanced energy-efficient cooling and heating system for Raffles City Chongqing, that commenced operations in September 2019. SP’s cooling operations enables Raffles City Chongqing to reduce energy consumption by more than 40 per cent, compared to conventional building chiller plants. Besides Chongqing, new partnerships and collaborations are taking root in Shanghai and Guangzhou. In August 2020, SP signed an agreement with the Sino-Singapore Guangzhou Knowledge City (GKC) to develop district cooling and heating solutions for the Knowledge Tower in GKC. In October, SP inked a Memorandum of Understanding with State Grid Shanghai Energy Services to study the feasibility of jointly developing and investing in integrated energy projects to bring sustainable energy solutions to customers in Shanghai. SP Group currently has three offices in China (Shanghai, Guangzhou and Chongqing), with its China headquarters located in Shanghai. About SP Group SP Group is a leading utilities group in the Asia Pacific, enabling a low-carbon, smart energy future for its customers. It owns and operates electricity and gas transmission and distribution businesses in Singapore and Australia, and sustainable energy solutions in Singapore and China. As Singapore’s national grid operator, about 1.6 million industrial, commercial and residential customers benefit from its world-class transmission, distribution and market support services. These networks are amongst the most reliable and cost-effective world-wide. Beyond traditional utilities services, SP Group provides a suite of sustainable energy solutions such as cooling and heating systems for business districts and residential townships, electric vehicle fast charging and green digital energy management tools for customers in Singapore and the region. For more information, please visit spgroup.com.sg or follow us on Facebook at fb.com/SPGroupSG, on LinkedIn at spgrp.sg/linkedin and on Twitter @SPGroupSG.

Consumption_Elect Average consumption of Electricity (kWh) Premises Types Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 HDB 1-Room 151 148 139 142 128 127 121 119 128 136 150 143 HDB 2-Room 198 192 183 186 166 168 161 156 169 181 195 190 HDB 3-Room 283 277 266 266 243 238 231 231 250 265 284 273 HDB 4-Room 385 381 363 365 338 327 320 309 341 363 390 381 HDB 5-Room 447 446 427 429 397 379 374 359 399 425 457 450 HDB Executive 546 548 520 523 481 462 458 445 495 522 562 554 Apartment 513 539 523 519 486 446 419 417 476 516 548 536 Terrace 847 885 851 851 785 747 744 714 775 823 881 848 Semi-Detached 1,126 1,168 1,137 1,141 1,056 1,000 974 960 1,031 1,080 1,173 1,123 Bungalow 2,121 2,347 2,192 2,190 2,012 2,004 1,872 1,904 2,016 2,154 2,244 2,175 Note: The figures exclude electricity consumption for PAYU customers and customers who are not purchasing electricity at the regulated tariff.

Joint Media Release OUTDOOR COOLING INNOVATION MADE IN SINGAPORE BY ST ENGINEERING AND SP GROUP FOR NATIONAL DAY PARADE Singapore, 27 July 2017 – In a first for Singapore’s National Day Parade (NDP), segments of audiences will enjoy cool air comfort outdoors at the Floating Platform, through a made-in- Singapore innovation that ST Engineering and SP Group (SP) have created. This engineering solution builds on ST Engineering’s Airbitat Smart Cooler’s revolutionary deep cooling technology and SP’s underground district cooling network at Marina Bay that provides chilled water for air-conditioning of buildings in Marina Bay. This solution functions on chilled water running from SP’s same underground system, which is more energy-efficient than electricitypowered cooling devices. This low-cost outdoor cooling saves 90 per cent in energy consumption compared to conventional air-conditioning. Launched at the NDP Preview show on Saturday 29 July, there are 29 sets at and around the Floating Platform. In this first roll-out, the sets will be placed closest to the audience sections occupied by spectators with special needs, such as those in wheelchairs, and at areas where spectator queues may form. This unprecedented system unlocks the potential of urban spaces in land-scarce Singapore and transforms the way communities live, work and play. It also demonstrates how industry collaboration can scale up urban solutions quickly and actively deploy innovative concepts to help build an environmentally sustainable Singapore. Gareth Tang, General Manager of Innosparks, an Open Lab by ST Engineering, said, “We believe in solving complex problems of society through engineering. This innovative collaboration is one way ST Engineering pushes boundaries to create breakthrough, energy-efficient and sustainable solutions to improve daily lives.” Managing Director of SP Group’s Singapore District Cooling, Jimmy Khoo, said, “This gamechanging technology makes outdoor cooling viable in Singapore’s climate. Tapping on SP Group’s underground district cooling system that serves several buildings in Marina Bay, we are developing sustainable solutions that will help consumers save energy and cost.” 1 About ST Engineering ST Engineering (Singapore Technologies Engineering Ltd) is an integrated defence and engineering group specialising in the aerospace, electronics, land systems and marine sectors. It has global presence with offices in Asia, the Americas, Europe and the Middle East and employs about 22,000 employees. Across the globe, its employees bring innovation and technology together to create smart engineering solutions for its customers in the defence, government and commercial segments. Headquartered in Singapore, ST Engineering reported revenue of S$6.68b in FY2016 and ranks among the largest companies listed on the Singapore Exchange. It is a component stock of the FTSE Straits Times Index, MSCI Singapore and the SGX Sustainability Leaders Index. Please visit www.stengg.com for more information. About SP Group SP Group is a leading energy utilities group in the Asia Pacific. It owns and operates electricity and gas transmission and distribution businesses in Singapore and Australia, and district cooling businesses in Singapore and China. SP Group is committed to providing customers with reliable and efficient energy utilities services. More than 1.5 million industrial, commercial and residential customers in Singapore benefit from SP Group’s world-class transmission, distribution and market support services. These networks are amongst the most reliable and cost-effective world-wide. For more information, please visit spgroup.com.sg or follow us on Facebook at fb.com/SPGroupSG. 2 Annex 1 Outdoor Cooling Innovation By ST Engineering & SP Group – How It Works 3 Annex 2 The Airbitat Smart Cooler The Airbitat Smart Cooler, created by Innosparks (an Open Lab by ST Engineering), is a proven product with an innovative two-stage cooling technology – it can save up to 80 percent energy when compared to the average air conditioner of an equivalent capacity. Airbitat is effective all-day and adapts intelligently to varying conditions throughout the day to deliver ultra-efficient cooling. Unlike conventional one-mode coolers, Airbitat’s intelligent system detects the ambient environment and engages the right cooling mode to deliver the right level of thermal comfort. Most importantly, the Airbitat Smart Cooler is engineered to be eco-friendly, with negligible waste heat generation when compared to conventional air conditioning, and energy-smart as well. A typical 8- hour cooling cycle registers a combined energy and water cost as low as $2.50 a day. Singapore District Cooling’s Underground System Singapore District Cooling (SDC) operates the world’s largest underground district cooling system that provides reliable and efficient air conditioning 24/7, 365 days to 23 iconic buildings in the Marina Bay area. District cooling contributes to a sustainable Singapore. The system saves as much as 40 per cent in electricity consumption, and reduces 34,500 tonnes carbon dioxide emissions annually – equivalent to removing 10,000 cars from Singapore’s roads. The electricity savings in the Marina Bay area are equivalent to powering 23,718 3-room HDB flats for a year. Engineering and design makes SDC’s operations unique, enabling this huge industrial facility to be housed underground, freeing up space for more important use in land-scarce Singapore. Overseas, SDC is building a district cooling system for CapitaLand’s Raffles City Chongqing. Once completed, the system will enable the development to save 50 per cent in energy savings and reduce utility costs by about S$30 million over the next 20 years. 4

Change of Ownership/ Tenancy Utilities Account Transfer Form SP SERVICES LTD Contact Log Ref: ________________ (Acting for itself and as agent for and on behalf of PUB and City Energy Pte. Ltd. (as Trustee of City Energy Trust) for the supply of utilities, and as agent for Veolia ES Singapore Pte Ltd, Colex Environmental Pte Ltd, Cora Environment Pte Ltd, 800 Super Waste Management Pte Ltd, TEE Environmental Pte. Ltd. and Alba W&H Smart City Pte. Ltd. in relation to the collection of refuse.) NEW ACCOUNT HOLDER’S PARTICULARS (Co. Registration No. 199504470N) For Application in Personal name: Name of Transferee (Mr/Mrs/Mdm/Ms/Dr):______________________________ (“the Consumer”) Declaration Please check here if you are an undischarged bankrupt. NRIC/FIN (Copy of NRIC/FIN is required):_______________ For the purpose of application for water, gas and electricity only Date of Birth (DDMMYY): __________________________ Bankruptcy Number: _____________________________ For Application in Company name: Name of Company (Transferee): ____________________________________ Co Reg No.: _____________ Co Reg Date: _____________ (“the Consumer”) Contact Person: ______________________________ Principal Activities (I) No.: __________________________________ (As shown on your ACRA Business Profile) DETAILS OF PREMISES a. Premises Address: __________________________________________________________________________________ ________________________________________________________________ S ________________ b. Type of Occupancy: Owner Tenant c. Type of Account: Domestic Non-Domestic d. Use of Premises (See Annex): (indicate index no.) (Security Deposit required. Please make cheque payable to SP Services Ltd) e. GST Reg No. & GST Reg Date: _________________________ ____ (DD)_______(MM)_________(YYYY) Only applicable to premises with PV (ie. Photovoltaics) installed WARNING: IT IS AN OFFENCE UNDER THE PUBLIC UTILITIES ACT (CAP 261) TO MAKE ANY FALSE STATEMENT, REPRESENTATION OR DECLARATION IN CONNECTION WITH THE APPLICATION FOR WATER SUPPLIED BY THE PUBLIC UTILITIES BOARD. Utilities Account Number of Transferor (outgoing customer) (A new account number will be given to the transferee upon process of the application) Meter Reading Date DDMMYY (This form is to be submitted within 3 days from the reading date) ELECTRICITY* WATER** GAS (if any) - (Record only the white numbers) (Record only the first five numbers from the left – four black and one red.) (Record only the black numbers) The above meter readings are required to facilitate the billing of both transferor and transferee utilities accounts. Invalid readings will be rejected. *I/We acknowledge that I/we am/are required to engage a licensed electrical worker (LEW) to inspect and test my electrical installation if I have made any alteration or rewiring to it. Thereafter, the LEW will lodge a copy of Certificate of Compliance (CoC) together with this application to SPGroup to check my electrical installation if the electrical installation is exempted from an Electrical Installation Licence. **I/We acknowledge that I/we am/are required to engage a licensed plumber (LP) to submit the notification for water service installation (WSI) work if I have made any addition or alteration to existing piping. As the account holder, please ensure that you and your contractor (if any) do not tamper with or remove PUB’s water meter without PUB’s prior approval. Upon completion, please submit this form with the following documents: a. Copy of NRIC/ FIN card of transferee In addition to (a), the following documents are required for Commercial accounts: b. Copy of Business/ Company Registration Certificate c. Proof of ownership/ Tenancy agreement d. Letter of authorisation (required if signatory is not a Director according to ACRA listing) e. Initial security deposit (please visit www.spgroup.com.sg for more details) Note: This form is not applicable for master accounts, accounts starting with “930”, electricity supply above 45kVA for non-domestic accounts and temporary supply of utilities. For payment of deposit via cheque, please make the cheque payable to SP Services Ltd. For Gas Turn-on /Installation, please call City Energy Pte. Ltd. (as Trustee of City Energy Trust) at 1800-555 1661 for an appointment. Installation and Termination of gas supply fees apply. You need not call if the gas supply for the previous occupant is connected. 1. I/We agree that each application for a utility, when accepted, will constitute a binding contract between myself/ourselves and PUB / SP Services Ltd / City Energy Pte. Ltd. (as Trustee of City Energy Trust) / Veolia ES Singapore Pte Ltd / Colex Environmental Pte Ltd / Cora Environment Pte Ltd / 800 Super Waste Management Pte Ltd / TEE Environmental Pte. Ltd. and/or Alba W&H Smart City Pte. Ltd. (as the case may be) and I/we agree that such contract shall be separate and independent from each other and shall be separately enforceable. 2. In the event that I/we make an application for gas at a later date, I/we agree to be bound by the terms and conditions for supply of gas set out in Part III overleaf and such other terms and conditions which City Energy Pte. Ltd. (as Trustee of City Energy Trust) may, at its absolute discretion, notify and impose. I/We understand that nothing herein shall be constructed as an offer by City Energy Pte. Ltd. (as Trustee of City Energy Trust) to supply gas to me / us and that City Energy Pte. Ltd. (as Trustee of City Energy Trust) has the absolute discretion to reject my application for gas supply for any reason. 3. I/We acknowledge and agree that SP Services Ltd reserves the right to transfer any amounts due and owing arising from my/ our previous/ closed account to an existing/ new account belonging to me/ us. 4. I/We agree to be bound by the terms and conditions specified by each supplier as set out in Part I (Water Supply) / Part II (Electricity Supply) / Part III (Gas Supply) / Part IV (Collection of Refuse) overleaf. 5. I/We acknowledge and agree that PUB, SP Services Ltd, City Energy Pte. Ltd. (as Trustee of City Energy Trust), Veolia ES Singapore Pte Ltd, Colex Environmental Pte Ltd, Cora Environment Pte Ltd, 800 Super Waste Management Pte Ltd, TEE Environmental Pte. Ltd. and/or Alba W&H Smart City Pte. Ltd. (as the case may be) may collect, use and disclose to any third party and all particulars relating to my/our personal information, in accordance with the Personal Data Protection Act 2012 and SP Group’s data protection policy (available at SP Group’s website https://www.spgroup.com.sg/personal-data-protection-policy), for the purposes of (i) providing the requested services; (ii) billing and account management (including debt collection or recovery); (iii) conducting surveys or obtaining feedback; (iv) informing me / us of their or their related entities’ and business affiliates’ services and offers (unless I/we duly inform you otherwise); and (v) complying with all applicable laws and regulations, and business requirements. 6. If I/we am/are (or subsequently become) GST-registered, I/we agree that I/we will not issue any tax invoice for electricity sold to SP Services Ltd but hereby authorize SP Services Ltd to issue tax invoices on my/our behalf. I/We further agree that where SP Services Ltd issues any tax invoice(s) on my behalf in respect of any taxable supplies that I/we provide, SP Services Ltd shall be entitled to charge GST at the prevailing rate as at the date on which such taxable supplies are provided. 7. I/We will notify SP Services Ltd in writing immediately if there is any change to my/our GST status, including without limitation if my/our GST registration is cancelled; I/we am/are not currently GST-registered but subsequently become GST-registered; I/We am/are issued with a new GST registration number, etc. Walk-in: 490 Lor 6 Toa Payoh #09-11 HDB Hub Biz Three Lift Lobby 1 Singapore 310490 Hotline: 1800-2222333 Website: www.spgroup.com.sg Version 4.0 / 09 / 25 SP SERVICES LTD (Acting for itself and as agent for and on behalf of PUB and City Energy Pte. Ltd. (as Trustee of City Energy Trust) for the supply of utilities, and as agent for Veolia ES Singapore Pte Ltd, Colex Environmental Pte Ltd, Cora Environment Pte Ltd, 800 Super Waste Management Pte Ltd, TEE Environmental Pte. Ltd. and Alba W&H Smart City Pte. Ltd. in relation to the collection of refuse.) PART I Terms and Conditions of the Contract for the Supply of Water by the PUB 1 The Consumer shall pay an initial deposit and maintain it at an amount not less than one and a half times the monthly charges. For non-Singaporeans and nonpermanent residents an amount not less than 3 times the monthly charges. 2 The Consumer shall accept liability for this account. 3 Either party may give 4 working days' notice in writing to the other party to terminate this agreement. 4 If the water meter does not in the opinion of PUB correctly register the amount of water supplied to the Premises, PUB shall be entitled to charge such sum as it shall assess and the Consumer shall accept such assessment as final and conclusive. 5 The Consumer shall pay for the water supplied to the Premises at the appropriate water tariff according to the use of the Premises. The Consumer shall notify PUB of the change of use of the Premises within 7 days of such change. 6 The Consumer shall pay a fee on every reminder issued to the Consumer for failure to make payment in accordance with a bill sent to the Consumer. 7 The Consumer shall pay a late payment charge of 1% on any outstanding amount owed by the Consumer, or at such rate as may be gazetted by PUB from time to time. 8 PUB shall not be liable for any failure or inconsistency in the water supply to the Premises whatsoever and howsoever caused. 9 The Consumer’s attention is drawn to its duties and obligations in the Public Utilities Act (Cap 261) and the Public Utilities (Water Supply) Regulations, as amended from time to time. PART II Terms and Conditions of the Contract for the Supply of Electricity by SP Services Ltd ("SP Services") 1 The Consumer shall pay an initial deposit and maintain it at an amount not less than one and a half times the monthly charges. For non-Singaporeans and nonpermanent residents an amount not less than 3 times the monthly charges. 2 The Consumer shall accept liability for this account. 3 Either party may give 4 working days' notice in writing to the other party to terminate this agreement. 4 If the electricity meter does not in the opinion of SP Services correctly register the amount of electricity supplied to the Premises, SP Services shall be entitled to charge such sum as it shall assess. 5 The Consumer shall pay for the electricity supplied to the Premises at such rates of electricity tariffs for the appropriate category of consumer as is fixed by SP Services from time to time. 6 The Consumer shall pay a fee, as is fixed by SP Services from time to time, for every reminder issued to the Consumer for failure to make payment in accordance with a bill sent to the Consumer. 7 The Consumer shall pay a late payment charge of 1% on any outstanding amount owed by the Consumer. 8 SP Services shall not be liable for any failure or defect in the supply of electricity to the Premises whatsoever and howsoever caused. PART III Terms and Conditions of the Contract for the Supply of Gas by City Energy Pte. Ltd. (as Trustee of City Energy Trust) ("City Energy") 1 City Energy has appointed SP Services Ltd to be its agent for the opening and termination of this gas supply account, and the billing, collection and settlement of all charges under this account. 2 The Consumer shall pay an initial deposit and maintain it at an amount not less than one and a half times the monthly charges. For non-Singaporeans and nonpermanent residents an amount not less than 3 times the monthly charges. 3 The Consumer shall accept liability for this account. 4 Either party may give 4 working days' notice in writing to the other party to terminate this agreement. 5 If the gas meter does not in the opinion of City Energy correctly register the amount of gas supplied to the Premises, City Energy shall be entitled to charge such sum as it shall assess. 6 The Consumer shall pay for the gas supplied to the Premises at such rates of gas tariffs for the appropriate category of consumer as is fixed by City Energy from time to time. The Consumer shall notify SP Services Ltd of the change of use of the Premises within 7 days of such change. 7 The Consumer shall pay a fee, as is fixed by City Energy from time to time, for every reminder issued to the Consumer for failure to make payment in accordance with a bill sent to the Consumer. 8 The Consumer shall pay a late payment charge of 1% on any outstanding amount owed by the Consumer. 9 City Energy shall not be liable for any failure or defect in the supply of gas to the Premises whatsoever and howsoever caused. PART IV Terms and Conditions of the Contract for the Collection of Refuse by either Veolia ES Singapore Pte Ltd, Colex Environmental Pte Ltd, Cora Environment Pte Ltd, 800 Super Waste Management Pte Ltd, TEE Environmental Pte. Ltd. and Alba W&H Smart City Pte. Ltd. (collectively referred to as “Refuse Collection Companies”) 1 The Refuse Collection Companies have appointed SP Services Ltd to be their agent for the opening and termination of this refuse collection account, and the billing, collection and settlement of all charges under this account. 2 The Consumer shall accept liability for this account. 3 Either party may give 4 working days' notice in writing to the other party to terminate this agreement. 4 The Consumer shall pay for the refuse collection service performed at the Premises at such rates for the appropriate category of consumer as is fixed by the National Environment Agency from time to time or at such rates determined between the Consumer and the relevant Refuse Collection Company where the Premises do not fall under the Public Waste Collection Scheme and the refuse collection is contracted privately. The Consumer shall notify SP Services Ltd of the change of use of the Premises within 7 days of such change. 5 The Consumer shall pay a fee, as is fixed by the Refuse Collection Companies from time to time, for every reminder issued to the Consumer for failure to make payment in accordance with a bill sent to the Consumer. 6 The Consumer shall pay a late payment charge of 1% on any outstanding amount owed by the Consumer. 7 The Refuse Collection Companies shall not be liable for any failure or defect in the collection of refuse at the Premises whatsoever and howsoever caused. Name: NRIC/FIN: Tel No: E-mail Address: ______________________________________________ Signature of Transferor (Co Stamp if applicable) (Outgoing Customer) Mailing Address: (if different from premises) Name: _______________________________________________ Signature of Transferee (Co Stamp if applicable) (Incoming Customer) NRIC/FIN (Copy of NRIC/FIN is required): For the purpose of application for water, gas and electricity only Tel No: E-mail Address: If you're an e-bill user, your e-bill will be sent to your existing e-services email address Mailing Address: (if different from premises) For Official Use Utility A/C No: ___________________________ Application Collected by: _________________________ Deposit to be billed: $ _______________ Date of Application received: _________________ Appt Date and Time Scheduled: ____________________ Request for GIRO Form � Yes � No Remark: _____________________________________________ Walk-in: 490 Lor 6 Toa Payoh #09-11 HDB Hub Biz Three Lift Lobby 1 Singapore 310490 Hotline: 1800-2222333 Website: www.spgroup.com.sg Version 4.0 / 09 / 25 SP SERVICES LTD (Acting for itself and as agent for and on behalf of PUB and City Energy Pte. Ltd. (as Trustee of City Energy Trust) for the supply of utilities, and as agent for Veolia ES Singapore Pte Ltd, Colex Environmental Pte Ltd, Cora Environment Pte Ltd, 800 Super Waste Management Pte Ltd, TEE Environmental Pte. Ltd. and Alba W&H Smart City Pte. Ltd. in relation to the collection of refuse.) Annex Use of Premises Residential Premises For premises where water supplied are used exclusively for residential purposes including staff housing. 001 Residential 002 Home office scheme 003 Staff housing / quarters 004 Common services of HDB / condominium / private apartment 005 Hostel 006 Boarding House 007 Dormitory 008 Service apartment 009 Child care centre 010 School / education institution 011 Office 012 Retail / services 013 Food and beverage 014 Place of worship 015 Bin centre 016 Carpark 017 Welfare facilities 018 Construction site 019 Residents’ / senior citizens’ corner Commercial Premises For premises which is used for the purposes of or in connection with any trade, business or profession. 901 Residential (for Shophouses only) 902 Home office scheme (for Shophouses only) 903 Staff housing / quarters (for Shophouses only) 905 Hostel 906 Boarding House 907 Dormitory 908 Service apartment 909 Child care centre 910 School / education institution 911 Office 912 Retail / services 913 Food and beverage 914 Place of worship 915 Bin centre 916 Carpark 917 Welfare facilities 918 Construction site 920 Industrial 921 Government / public facilities 922 Medical facilities 923 Warehouse / storage facilities 924 Farm 925 Sports and recreation 926 Common services Walk-in: 490 Lor 6 Toa Payoh #09-11 HDB Hub Biz Three Lift Lobby 1 Singapore 310490 Hotline: 1800-2222333 Website: www.spgroup.com.sg Version 4.0 / 09 / 25

SP Energy HubAnnual ReportReliabilitySustainabilityInnovation Mobile Generators: Powering Continuity RELIABILITY Mohamed Nasir bin Mohamed Ismail, Technical Officer, Electricity Operations (center) together with Ismet Imran bin Chuma'ing, Senior Technician, Electricity Operations (left) and Mohammad Najib bin Jalil, Technical Officer, Electricity Operations (right) from SP Group's Mobile Generator Unit. When an electrical glitch hit Kian Teck Avenue in Jurong last month, a team from SP Group’s Mobile Generator Unit was charged and ready to roll. In minutes, a mobile generator mounted on a 30-ft trailer left a facility in Pasir Panjang for the site of the incident. The generator carried some 2,000 litres of diesel, enough to power up a housing estate for around eight hours, and up to 40 metres of cable to hook up to a low-voltage (LV) board, which distributes electricity. “We need to always be prepared to provide temporary power,” says Mr Mohamed Nasir bin Mohamed Ismail, 42, a technical officer who is part of the unit. Readiness is key for the Mobile Generator Unit. This begins at 7.30am with a daily “warm up”, conducted by the 10 men on the morning shift. During the one-hour ritual, all the operational mobile generators – the larger ones mounted on fourteen 30-ft trailers, and the smaller ones on seven 20-ft lorries – are started and tested to ensure they are ready to be deployed. The team members also conduct cable insulation tests and checks on their toolboxes and personal protection gear. This enables them to act swiftly and safely, in the event of an electricity disruption. The men, who work on three shifts round the clock, are deployed by SP Group’s Electricity Service Centre in teams of three – a leader, an assistant, and a driver. Mr Nasir, the leader of his team, has been with SP for 21 years, joining right after he completed his National Service in 1998. He studied mechanical engineering at the ITE and plays the role of synchroniser, ensuring that the voltage and frequency of the mobile generator matches that of the grid network. Mr Nasir, who has both a Class 4 and Class 5 driving license, doubles up as a driver, and says navigating these massive vehicles is an exercise that requires both practice and courage. The trailer-mounted mobile generators cannot travel through tunnels, including those on expressways like the MCE, CTE or KPE. The 60km/h speed limit also keeps them in the slowest lanes most of the time. The trailer-mounted generators are part of a fleet of 22 vehicles of different sizes and capacities used for power restoration. “You need to know the quickest alternative route around traffic or restrictions. Outage in Ang Mo Kio and leaving from Pasir Panjang? Alexandra, Farrer, Adam, Braddell, then join the CTE after the tunnel,” Mr Nasir rattles off. The narrow roads in some estates and parked vehicles can also pose problems for the 13 metres by 2.6 metres by 4.3 metres trailers, and it is up to the two men with the driver to recce for a spot to hunker down – which must also be close enough to an electrical room to hook up. While Singapore enjoys one of the lowest occurrences of outages in the world, it is gratifying to be a part of a team that helps “get the lights back on" if supply is disrupted, Mr Nasir says. “We are usually greeted by frustrated faces when we arrive, so seeing them happy again makes us very happy,” he quipped. — 1 May 2019 TAGS PEOPLE OF SPRELIABILITY YOU MIGHT BE INTERESTED TO READ Ground feedback, digital tools: How she helps 8,000 workers end their day safely Faster repairs, fewer disruptions: Meet the innovative teams using smart tech to keep your piped gas supply flowing Engineer, 27, shares how she is undaunted by male-dominated energy industry & climbs the ranks

SCHNEIDER ELECTRIC PARTNERS SP GROUP TO FULLY ELECTRIFY SERVICE VEHICLES IN SINGAPORE Schneider Electric is the first corporate partner outside of the public transport sector to use SP Group’s nationwide EV charging network Singapore, 2 January 2020 – Schneider Electric (SE) and SP Group (SP) today announced a partnership to fully electrify SE’s service fleet in Singapore. The agreement enables SE’s service vehicles to access SP’s nationwide network of electric vehicle (EV) charging points. SP will fully support SE’s charging needs for at least the next two years. SE has a total service fleet size of 25. Its intent is to convert 10 of its vehicles into EVs by June 2020 and fully electrify its fleet by 2021. This decision was made possible with the partnership with SP. Damien Dhellemmes, Country President of Schneider Electric Singapore elaborates: “Going green is a deliberate decision. After greening our regional headquarters in Singapore, our next step is to electrify our fleet. This is only possible if we have an accessible and wide enough charging network so that our service vehicles can be green and still serve our customers efficiently. SP’s nationwide network gives us the impetus to make this decision.” SP had earlier signed partnerships with Grab and HDT Singapore Taxi (HDT) to support the charging needs of their EV fleets. SE is the first corporate partner outside of the public transport sector to be using SP’s nationwide EV charging network. This represents a growing trend of companies in Singapore electrifying their internal fleets to achieve environmental sustainability and cost savings. SP currently operates Singapore’s largest and fastest public EV charging network with more than 200 charging points across the island. It is targeting 1,000 EV charging points by end of 2020, of which 250 will be high-speed DC (direct current) chargers that can deliver a full charge in 30 minutes. 1 Goh Chee Kiong, Head of Strategic Development, SP Group, said: “SP has built up deep capabilities in electric vehicle charging and usage over the years which we have harnessed for our nationwide public EV charging network. We are pleased to have Schneider Electric as our first corporate partner outside of the public transport sector and are confident this will provide a model for many other corporates to electrify their own fleet vehicles. SP’s pervasive EV charging network across Singapore will fully support their charging needs, providing drivers convenience and peace of mind.” - Ends - 2 About Schneider Electric At Schneider, we believe access to energy and digital is a basic human right. We empower all to make the most of their energy and resources, ensuring Life Is On everywhere, for everyone, at every moment. We provide energy and automation digital solutions for efficiency and sustainability. We combine world-leading energy technologies, real-time automation, software and services into integrated solutions for Homes, Buildings, Data Centers, Infrastructure and Industries. We are committed to unleash the infinite possibilities of an open, global, innovative community that is passionate about our Meaningful Purpose, Inclusive and Empowered values. About SP Group SP Group is a leading energy utilities group in the Asia Pacific. It owns and operates electricity and gas transmission and distribution businesses in Singapore and Australia, and district cooling businesses in Singapore and China. SP Group is committed to providing customers with reliable and efficient energy utilities services. About 1.6 million industrial, commercial and residential customers in Singapore benefit from SP Group’s world-class transmission, distribution and market support services. These networks are amongst the most reliable and cost-effective world-wide. SP Group also provides digital solutions to empower customers to manage their utilities, reduce consumption and save cost. For more information, please visit spgroup.com.sg or for follow us on Facebook at fb.com/SPGroupSG and on Twitter @SPGroupSG. 3

2024 年 5 月 1 日 星 期 三 新 能 源 今 起 接 管 新 达 城 制 冷 系 统 邓 玮 婷 报 道 tengwt@sph.com.sg 新 加 坡 能 源 集 团 将 从 今 天 起 (5 月 1 日 ) 接 管 新 达 城 制 冷 系 统 , 并 在 2027 年 将 它 纳 入 滨 海 湾 区 域 供 冷 网 。 这 将 有 助 新 达 城 在 未 来 30 年 , 减 少 至 少 1 万 零 400 公 吨 的 碳 排 放 , 相 当 于 每 年 超 过 315 辆 车 辆 的 碳 排 放 量 。 新 能 源 和 新 达 城 星 期 一 (4 月 29 日 ) 发 文 告 宣 布 签 署 合 作 协 定 。 在 计 划 下 , 新 能 源 将 负 责 维 修 和 更 换 新 达 城 的 制 冷 设 备 , 包 括 更 换 老 旧 的 电 力 系 统 , 以 及 逐 步 转 用 更 节 能 环 保 的 制 冷 机 。 新 达 城 的 制 冷 系 统 由 一 个 中 央 冷 水 机 组 组 成 , 容 量 约 2 万 冷 冻 吨 , 可 为 旗 下 办 公 楼 、 商 场 和 会 展 中 心 提 供 空 调 服 务 , 净 可 出 租 面 积 总 计 340 万 平 方 英 尺 。 新 达 城 系 统 将 并 入 滨 海 湾 区 域 供 冷 网 文 告 说 , 新 达 城 的 冷 水 机 组 纳 入 滨 海 湾 区 域 供 冷 网 后 , 将 创 造 机 会 , 为 区 域 包 括 滨 海 中 心 和 武 吉 士 的 发 展 项 目 , 提 供 节 能 的 制 冷 服 务 , 进 而 为 更 多 顾 客 提 供 可 持 续 的 制 冷 方 案 。 新 能 源 接 管 新 达 城 的 制 冷 系 统 后 , 其 区 域 供 冷 网 的 制 冷 能 力 将 增 至 20 万 3000 冷 冻 吨 , 是 我 国 最 大 的 区 域 供 冷 方 案 供 应 商 。 根 据 文 告 , 新 达 城 通 过 新 能 源 的 区 域 供 冷 技 术 , 可 在 接 下 来 30 年 , 减 少 至 少 1 万 零 400 公 吨 的 碳 排 放 , 相 当 于 每 年 超 过 315 辆 车 辆 的 碳 排 放 量 。 新 达 城 管 理 代 理 APM 产 业 管 理 私 人 有 限 公 司 总 裁 许 鸣 财 说 , 公 司 向 来 的 首 要 考 量 是 让 建 筑 取 得 最 佳 的 能 源 效 率 。 这 次 和 新 能 源 的 合 作 是 公 司 在 可 持 续 能 源 方 案 迈 出 的 重 大 一 步 , 也 将 推 进 公 司 的 减 碳 旅 程 , 为 新 加 坡 打 造 更 环 保 的 建 筑 环 境 。 新 能 源 可 持 续 能 源 方 案 董 事 总 经 理 哈 沙 说 , 新 加 坡 朝 净 零 排 放 目 标 前 进 之 际 , 可 持 续 的 能 源 创 新 方 案 , 如 区 域 供 冷 网 将 扮 演 重 要 角 色 , 让 我 国 通 过 可 持 续 的 方 式 , 支 持 城 市 和 经 济 增 长 的 需 求 。 所 谓 区 域 供 冷 , 是 把 区 域 内 的 办 公 室 、 购 物 商 场 及 公 寓 等 建 筑 的 冷 却 系 统 连 接 在 一 起 , 形 成 闭 路 循 环 , 例 如 滨 海 湾 底 下 便 设 有 区 域 供 冷 系 统 网 络 , 它 利 用 大 型 制 冷 机 冷 却 水 后 , 输 送 给 这 个 区 域 内 的 大 楼 以 降 低 室 内 温 度 , 自 2006 年 运 转 以 来 已 达 到 40% 的 节 能 效 率 。