SINGAPORE INSTITUTE OF POWER AND GAS TRAINING CALENDAR OCT - DEC 2024 No. Course Code Course Title Duration (hr) Mode of Delivery Course Fee (1) Course Fee (after Funding) (2) (3) PDU (5) Course Outline Upcoming Schedule 1 ECL05 High Voltage Cable Jointing Techniques 21 Face-to-Face $2,950 N.A. 21 Download 26 - 28 Nov 2 EFD02 Essential Test Instruments for Low Voltage 7 Face-to-Face $700 N.A. 4 Download 11 Nov 3 ENO39 Electrical Testing and Inspection for Non-Licensed Electrical Installation 7 Face-to-Face $700 N.A. 7 Download 9 Dec 4 EPG01 Overview of Power Generation Plants 7 Face-to-Face $700 $210 5 Download 28 Oct 5 EPG03 Process Control and Monitoring of Power and Process Plants 14 Face-to-Face $1,400 $420 12 Download 17 - 18 Oct 6 EPG06 Power Plant Efficiency 14 Face-to-Face $1,400 $420 13 Download 13 - 14 Nov 7 EPG11 Power Plant Operations and Process Controls + 35 Face-to-Face $3,500 $1,050 29 Download 8 ERG01 SS638 Code of Practice for Electrical Installations 14 Face-to-Face $700 $210 13 Download Run 1: 7 - 9, 14 - 15 Oct Run 2: 18 - 22 Nov Run 1: 11 - 12 Nov Run 2: 20 - 21 Nov 9 ERG05 Lightning and Lightning Protection 14 Face-to-Face $700 $210 13 Download 9 - 10 Oct 10 ERG06 Electrical Earthing Principles and Practices 7 Face-to-Face $350 $105 6 Download 28 Nov 11 ESG04 Operation and Maintenance of High Voltage Switchgear 14 Face-to-Face $1,400 N.A. 14 Download 17 - 18 Oct 12 NGD03 Introduction to Microgrid Systems 7 Face-to-Face $700 $210 4 Download 5 Dec 13 PDC202 Masterclass - Cable Operation & Maintenance (Distribution) (NEW COURSE) 14 Face-to-Face $2,600 N.A. Pending Download 14 - 15 Oct 14 PDC204 Masterclass - Switchgear Operation & Maintenance (Distribution) (NEW COURSE) 14 Face-to-Face $2,600 N.A. Pending Download 7 - 8 Nov + Courses conducted using the latest Centralised Power Plant Simulator Important Notes: (1) Course fees are subject to prevailing GST. (2) Only Singapore Citizens, Permanent Residents & Long-Term Visit Pass Plus (LTVP+) Holders are eligible for Course Fee Funding (if any). (3) Funding grant is subject to funding agency's approval. (4) SkillsFuture Mid-Career Enhanced Subsidy only applicable for Singapore Citizens 40 years old and above. (5) PDU: Professional Development Unit awarded by Professional Engineers Board; PEB reserves the right to reject or adjust the PDUs awarded for each run. (6) Minimim class size is required to be met to start the class. Updated: 2 Sep 2024 SINGAPORE INSTITUTE OF POWER AND GAS TRAINING CALENDAR JAN - MAR 2025 No. Course Code Course Title Duration (hr) Mode of Delivery Course Fee (1) Course Fee (after Funding) (2) (3) PDU (5) Course Outline Upcoming Schedule UPCOMING COURSES 1 EFD08 Singapore Electricity Network and Market 14 Face-to-Face $720 $216 10 Download 24 - 25 Feb 2 EPG11 Power Plant Operations and Process Controls + 35 Face-to-Face $3,500 $1,050 29 Download 17 - 21 Mar 3 EPG12 Power Plant Operations and Performance + 35 Face-to-Face $3,500 $1,050 NIL Download 10 - 14 Feb 4 EPG13 Managing Multiple Malfunctions in Power Plants +# 14 Face-to-Face $1,400 $420 NIL Download 19 - 20 Feb EPG14 Best Practices for Power Plant Optimisation +# 14 Face-to-Face $1,400 $420 NIL Download 26 - 27 Feb 5 PDC208 Hydrogen Industry Masterclass 14 Face-to-Face $2,200 $660 Pending Download Run 1: 10 - 11 Feb Run 2: 13 - 14 Feb 6 PDC215 Masterclass - Carbon Capture, Utilisation and Storage (NEW COURSE) 14 Face-to-Face $2,200 $660 Pending Download Jan * + Courses conducted using the latest Centralised Power Plant Simulator # Courses EPG13 and EPG14 are part of the Advanced Certificate in Power Plant Operations and Performance and both courses must be taken together, following the training dates stated in this training calendar *To be confirmed, please contact SIPG. Important Notes: (1) Course fees are subject to prevailing GST. (2) Only Singapore Citizens, Permanent Residents & Long-Term Visit Pass Plus (LTVP+) Holders are eligible for Course Fee Funding (if any). (3) Funding grant is subject to funding agency's approval. (4) SkillsFuture Mid-Career Enhanced Subsidy only applicable for Singapore Citizens 40 years old and above. (5) PDU: Professional Development Unit awarded by Professional Engineers Board; PEB reserves the right to reject or adjust the PDUs awarded for each run. Updated: 2 Sep 2024 EMA, WSG and SSG 104 58 9 *Figures accurate as of Dec 2023

Consumption_Gas Average consumption of Gas (kWh) Premises Types Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 HDB 1-Room 31 34 35 34 34 33 35 36 34 37 33 35 HDB 2-Room 33 34 35 34 36 33 35 35 36 37 34 34 HDB 3-Room 47 49 50 49 49 47 48 49 50 52 48 48 HDB 4-Room 58 60 62 61 61 58 59 61 63 65 58 59 HDB 5-Room 64 67 69 69 68 65 65 68 72 73 65 66 HDB Executive 69 71 73 72 72 68 69 72 76 77 69 69 Apartment 76 81 89 92 89 83 85 92 97 92 81 84 Terrace 96 100 108 112 106 106 99 108 116 110 100 105 Semi-Detached 116 120 125 120 130 122 116 122 137 127 119 118 Bungalow 188 177 197 202 198 181 191 197 204 203 198 200

Cents/kWh MEDIA RELEASE ELECTRICITY TARIFF REVISION FOR THE PERIOD 1 JULY TO 30 SEPTEMBER 2019 Singapore, 29 June 2019 – For the period from 1 July to 30 September 2019, electricity tariffs (before 7% GST) will increase by an average of 6.4% or 1.43 cents per kWh compared with the previous quarter. This is mainly due to the higher cost of natural gas for electricity generation compared with the previous quarter. For households, the electricity tariff (before 7% GST) will increase from 22.79 to 24.22 cents per kWh for 1 July to 30 September 2019. The average monthly electricity bill for families living in four-room HDB flats will increase by $5.20 (before 7% GST) (see Appendix 3 for the average monthly electricity bill for different household types). Quarterly Household Electricity Tariff* 25.00 24.00 23.00 22.00 21.00 20.00 19.00 18.00 17.00 16.00 15.00 23.65 24.13 23.85 24.22 22.79 22.15 21.56 20.30 Oct - Dec '17 Jan - Mar '18 Apr - Jun '18 Jul - Sep '18 Oct - Dec '18 Jan - Mar '19 Apr - Jun '19 Jul - Sep '19 *before 7% GST SP Group reviews the electricity tariffs quarterly based on guidelines set by the Energy Market Authority (EMA), the electricity industry regulator. The tariffs given in Appendix 1 have been approved by the EMA. Issued by: SP Group 2 Kallang Sector Singapore 349277 www.spgroup.com.sg ELECTRICITY TARIFFS FROM 1 JULY 2019 LOW TENSION SUPPLIES, DOMESTIC All units, ¢/kWh LOW TENSION SUPPLIES, NON-DOMESTIC All units, ¢/kWh HIGH TENSION SMALL (HTS) SUPPLIES Contracted Capacity Charge $/kW/month Uncontracted Capacity Charge $/chargeable kW/month Existing Tariff (without GST) New Tariff (without 7% GST) Appendix 1 New Tariff (with 7% GST) 22.79 24.22 25.92 22.79 24.22 25.92 8.90 8.90 9.52 13.35 13.35 14.28 kWh charge, ¢/kWh Peak period (7.00am to 11.00pm) 20.15 21.74 23.26 Off-peak period (11.00pm to 7.00am) 12.28 13.26 14.19 Reactive power Charge ¢/chargeable kVARh 0.59 0.59 0.63 HIGH TENSION LARGE (HTL) SUPPLIES Contracted Capacity Charge $/kW/month Uncontracted Capacity Charge $/chargeable kW/month kWh charge, ¢/kWh 8.90 8.90 9.52 13.35 13.35 14.28 Peak period (7.00am to 11.00pm) 19.93 21.52 23.03 Off-peak period (11.00pm to 7.00am) 12.27 13.25 14.18 Reactive power Charge ¢/chargeable kVARh 0.59 0.59 0.63 EXTRA HIGH TENSION (EHT) SUPPLIES Contracted Capacity Charge $/kW/month 7.87 7.87 8.42 Uncontracted Capacity Charge $/chargeable kW/month kWh charge, ¢/kWh 11.81 11.81 12.64 Peak period (7.00am to 11.00pm) 19.03 20.60 22.04 Off-peak period (11.00pm to 7.00am) 12.17 13.15 14.07 Reactive power Charge ¢/chargeable kVARh 0.48 0.48 0.51 Appendix 2 BREAKDOWN OF ELECTRICITY TARIFF 1. The electricity tariff consists of the following four components: a) Energy costs (paid to the generation companies): This component is adjusted quarterly to reflect changes in the cost of power generation. b) Network costs (paid to SP PowerAssets): This fee is reviewed annually. c) Market Support Services Fee (paid to SP Services): This fee is reviewed annually. d) Market Administration and Power System Operation Fee (paid to Energy Market Company and Power System Operator): This fee is reviewed annually to recover the costs of operating the electricity wholesale market and power system. Q3 2019 TARIFF (before 7% GST) Market Admin & PSO Fee (No Change) 0.06¢/kWh (<1%) MSS Fee (No Change) 0.40¢/kWh (1.7%) %) Network Costs (No Change) 5.44¢/kWh (22.5%) Energy Costs (Increase by 1.43¢/kWh) 18.32¢/kWh (75.6%) Appendix 3 AVERAGE MONTHLY ELECTRICITY BILLS OF DOMESTIC CUSTOMERS (TARIFF WEF 1 JULY 2019) (before 7% GST) Types of Premises Average monthly consumption per Customer Average Monthly Bill New Average Monthly Bill Average Change in Monthly Bill kWh $(a) $(b) $(b-a) % HDB 1 Room 134.35 30.62 32.54 1.92 6.3 HDB 2 Room 179.60 40.93 43.50 2.57 6.3 HDB 3 Room 274.04 62.45 66.37 3.92 6.3 HDB 4 Room 363.41 82.82 88.02 5.20 6.3 HDB 5 Room 422.94 96.39 102.44 6.05 6.3 HDB Executive 510.92 116.44 123.74 7.30 6.3 Apartment 576.39 131.36 139.60 8.24 6.3 Terrace 872.00 198.73 211.20 12.47 6.3 Semi-Detached 1,205.12 274.65 291.88 17.23 6.3 Bungalow 2,616.45 596.29 633.70 37.41 6.3 Average 440.15 100.31 106.61 6.29 6.3

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 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Jul-26 HDB 1-Room 151 148 139 142 128 127 121 119 128 136 150 143 150 136 136 144 127 124 119 118 135 139 144 139 HDB 2-Room 198 192 183 186 166 168 161 156 169 181 195 190 195 177 177 188 164 165 158 158 181 185 192 186 HDB 3-Room 283 277 266 266 243 238 231 231 250 265 284 273 280 257 259 271 242 239 231 234 264 267 281 268 HDB 4-Room 385 381 363 365 338 327 320 309 341 363 390 381 388 358 355 377 334 330 322 325 365 369 388 369 HDB 5-Room 447 446 427 429 397 379 374 359 399 425 457 450 459 423 417 444 392 386 378 383 430 435 459 434 HDB Executive 546 548 520 523 481 462 458 445 495 522 562 554 562 520 513 546 478 472 462 474 525 528 557 528 Apartment 513 539 523 519 486 446 419 417 476 516 548 536 541 513 501 538 500 451 429 450 509 544 559 521 Terrace 847 885 851 851 785 747 744 714 775 823 881 848 866 817 818 836 785 734 735 722 788 830 870 827 Semi-Detached 1,126 1,168 1,137 1,141 1,056 1,000 974 960 1,031 1,080 1,173 1,123 1,121 1,072 1,056 1,107 1,016 951 940 939 1,007 1,073 1,132 1,078 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 2,168 2,190 2,074 2,202 2,040 1,950 1,863 1,918 2,054 2,212 2,279 2,164 Note: The figures exclude electricity consumption for PAYU customers and customers who are not purchasing electricity at the regulated tariff.

A2 | THE BIG STORY | THE STRAITS TIMES | FRIDAY, APRIL 7, 2023 | PUB joins initiative that rewards businesses for lowering electricity usage Ang Qing National water agency PUB will join a new initiative to reward businesses for lowering their electricity usage as part of efforts to help ease demand for energy on the power grid. On Thursday, PUB said it will join the Energy Market Authority’s (EMA) Demand Side Management Sandbox initiative for energy-intensive commercial and industrial firms. This will make it the first government agency to take part in the initiative, which comprises two programmes and runs until January 2025. PUB will partner national grid operator SP Group to participate in both programmes to cut energy usage during peak periods or when supply from renewable energy sources is not consistent. The first is the Demand Response programme, which incentivises companies to reduce their electricity demand voluntarily when wholesale electricity prices spike. The second, the Interruptible Load programme, rewards companies for reducing some electrical load during periods of tight power generation supply. When demand is well managed, said EMA in 2022, businesses and households are expected to benefit, paying lower electricity bills in the long run. PUB chief executive Goh Si Hou said the initiative aligns with the agency’s bid to raise energy efficiency in its operations. This is becoming more important, as more energy-intensive water sources like Newater and desalination are tapped to meet future growth in water demand. He said: “It will provide PUB with greater flexibility in managing energy demand, and allow us to achieve cost savings. At the same time, our participation will support the national effort for energy resilience, and bring system-level benefits to all users.” For a start, the Marina Raw Water Pumping Station at Kallang Basin will participate in the programmes, PUB said on Thursday. Each of the four pumps at the station can transfer 30 million gallons of water daily, and require about 1.3 megawatts of power, or the equivalent of powering about 110 four-room Housing Board flats, The Marina Raw Water Pumping Station, which pumps water from Marina Reservoir (left) to Upper Peirce Reservoir, will participate in the energy saving programmes. PHOTO: PUB said PUB. The station transfers raw water from Marina Reservoir to Upper Peirce Reservoir to maintain optimal water levels in the reservoirs. Its daily energy consumption varies depending on the number of pumps in operation. A deal inked between SP and PUB on Wednesday will ensure that when the electricity load needs to be curtailed, SP will reduce or interrupt demand from its Marina Bay district cooling ice thermal energy storage systems and its partners, including PUB. Once on board, PUB will work closely with SP in the first few months to calibrate the daily operational process. EMA chief executive Ngiam Shih Chun said: “As we transform our energy sector to be more sustainable, it is also important that consumers are empowered to optimise and reduce their electricity consumption, in exchange for a share of the system-wide benefits. We encourage more consumers to come on board the programmes to enjoy these benefits.” Businesses that consume at least 100kW of electricity an hour are eligible for this initiative. The monthly energy consumption of a four-room HDB flat, for instance, is about 360kWh. Businesses will pay a penalty if they under-deliver on the electrical load they promised to reduce. As at the end of March, five buildings have registered for EMA’s Demand Response programme and eight buildings come under its Interruptible Load programme. In October 2022, an EMA spokesman said that if the initiative proves to be successful, it could be made permanent. aqing@sph.com.sg

C2 BUSINESS | THE STRAITS TIMES | FRIDAY, OCTOBER 26, 2018 | SP Group to install 1,000 electric vehicle charging points A quarter of them will be high powered and able to charge a car in just 30 minutes Christopher Tan Senior Transport Correspondent SP Group is speeding up the installation of electric vehicle (EV) charging points, saying yesterday that it will roll out 1,000 such points by 2020 – double the number it announced in June. A quarter of those new charging points or 250 will be high-powered direct current chargers. These 50kW chargers will be able to fully charge a car in as little as 30 minutes – compared to up to eight hours for normal chargers. SP Group said there will be some “extra-high-powered chargers” of up to 350kW, which will be able to support more powerful electric models with longer driving ranges, and be able to charge up a passenger car as quickly as 10 minutes. It also plans to extend charging services to a wider range of vehicles, including buses and trucks. SP Group head of strategic development Goh Chee Kiong told The Straits Times that the lack of charging infrastructure was “a huge bottleneck” to EV adoption, and that is why “we’re making this huge investment... so that Singaporeans can have access to electric mobility as soon as possible”. However, SP Group declined to reveal the investment sum, citing “competitive reasons”. Hyundai agent Komoco – which was the first to offer a mass market electric car here – has said the cost of a normal charger is around $5,000, while a fast charger costs about $65,000. Electric car-sharing firm BlueSG said the cost of each of its charging points starts at around $15,000. Industry watchers expect prices to be lower if more are installed. SP Group said the first chargers – a mix of 30 normal and high-powered ones – will be operational by the end of this year. The entire network of charging points will be located at “convenient locations nation-wide, such as in shopping malls, residential areas, business parks and industrial sites, as well as close to coffee shops and food outlets”. Each location will have “two to six” charging points. Mr Goh said talks are ongoing with government agencies to install charging points at Housing Board car parks. SP Group was not ready to reveal charging prices, but said they would be higher than household electricity tariffs because of the capital investment involved in setting up the public chargers. The vast majority of these points will be accessible to the public, Mr Goh added. Asked whether Singapore’s power grid would be able to cope with the proliferation of electric vehicles, Mr Goh said: “In the near term, there will be no impact on the power grid. But in the mid to longer term, as we scale up the number of charging points... that consideration becomes serious.” Studies elsewhere show that even if the overall electric vehicle population remains relatively small, a high concentration in any one neighbourhood can cause electrical surges and put a strain on the grid. Meanwhile, SP Group has tied up with HDT to “support... Singapore’s largest electric taxi operator, on all its vehicle charging needs for the next 10 years”. HDT plans to grow its fleet to 800 electric taxis by 2022. In August, SP Group had a similar tie-up with ride-hailing company Grab, which will bring in 200 battery-powered cars from next year. According to Land Transport Authority figures, Singapore’s electric fleet remained small as at end-September, with 443 electric cars and 323 plug-in petrol-electric hybrids. The total car population stood at 614,292. Among taxis, only 97 out of 21,279 were electric, while only two out of 136,588 motorbikes were batteryoperated. And among bus and goods vehicles, only 42 out of 160,150 were electric. christan@sph.com.sg Source: The Straits Times © Singapore Press Holdings Limited. Permission required for reproduction.

‘்கபாடடு நகர்’ தெங்கபாவில் பெபாது குளிர்சாதன வசதியை பெ்ற 1,000 குடுமெங்கள் விருப்ெம ‘்கபாடடு நகர்’ என்று ைர–ணிக்–்கப்– படும தெங்கபா பேடவடயில் குடியே–்ற–வி–ருக்–கும ஏ்றக்–கு–வ்றய 1,000 குடும–ெங–்கள், பெபாது குளிர– ெபா–தன முவ்ற–யில் இவணந–து– ப்கபாள்ள விருப்–ெம தெரி–வித்து வ்கபய–ழுத்–திடடு இருக்–கின்–்ற–ன. அந–தப் புதிய குடி–யி–ருப்–புப் மெட– டை–யில் சுமார் 8,000 பிடிஓ வீடு–்கள் இது–வ–ரை–யில் விற–ப–னைக்கு ப்கபாடுக்–்கப்–ெடடு உள்–ளன. மையப்– படுத்–தப்–படட குளிர–ெபா–தன வசதியைப் பெ்ற விரும–பு–மைபா–ருக்கு நடை–முவ்றச் செல–வில் 30 விழுக்– ்கபாடு வரை குவ்ற–யும. த�பாடக்்க செல–வில் 15 முதல் 20 விழுக்–்கபாடு வரை மிச்–ச–ேபா–கும என்று எஸ்பி குழுேம தெரி–வித்– துள்–ளது. ப�ங–்கபா–வில் இந� நிறு–வ–னமே பெபாது– குளிர–ெபா–தன முவ்றவய நிர–வ–கித்து நடத்–தும. தெங்கபா ந்க–ரம ‘அறி–ைபாரந� எரி–சக்தி நகர்’ என்று குறிப்–பி–டப்– படு–கி்றது. அஙகு பல அறி–ைபாரந� அதி–ந–வீன அம–ெங–்கள் இடம–பெ்ற இருக்–கின்–்றன. அைற–றில் பெபாது– ைபான குளிர–ெபா–தன வச–தி–யும ஒன்று. குறிப்–பிடட வீை்க புமளபாக்–கு– ்களின் கூரைத் தளத்–தில் �ணணீரைக் குளி–ரூட–டக்–கூ–டிய ெபா�–னங–்கள் அமைக்–்கப்–படும. அந–தச் ெபா�–னங–்கள் சூரிய மின்– சக்–தி–யில் செயல்–படும. அதி–லி–ருநது எல்லபா வீடு–்களுக்கும குளி–ரூட–டப்– படட நீர குழபாய் வழி–யபா்க அனுப்பப்– படும. இத்–த–வ்கய ஏற–ெபாடு மூலம செலவு குவ்ற–யும என்று எஸ்பி குழுேம தெரி–வித்–துள்ளது. இந� முவ்ற–யைத் ம�ரந–தெ–டுத்– துக் ப்கபாள்–ப–ைர–்கள், �ங–்கள் வீடு– ்களில் வ்கமெசிச் செயலி ஒன்–வ்றக் ப்கபாணமட இந–தச் ெபா�–னங–்க–ளைக் கட்–டுப்–ப–டுத்–த–லாம். ‘மை தெங்கபா’ என்்ற அச்செயலி எஸ்பி குழுமத்துக்குச் பெபாந–த– ேபானது. ைபா்க–ன மின்–மனறறி நிலை– யங–்கள் எஙகு உள்–ளன என்–பதை அந–தச் செயலி வழி–யபா்க குடி–யிருப்– ெபா–ளர–்கள் தெரிந–து–ப்கபாள்–ள–லாம். சுற–றுச்–சூ–ழ–லுக்கு ஆத–ர–ைபான செய்–வ்க–்க–ளைச் செய்து அ�ற–்கபான வெகு–ம–தி–்க–ளை–யும அந–தச் செயலி மூலம ேக்்கள் பெ்ற–லாம். ஒவ–பைபாரு வீடடு புமளபாக்–கி–லும உள்ள மின்–தூக்–கிக் கூடத்–தில் மின்– னி–லக்–்கப் பலவ்க ஒன்று பெபாருத்– தப்–ெடடு இருக்–கும. அந� மின்–னி– லக்்க ெபா�–னத்–தைப் பார்த்து அந–தப் புமளபாக்–கில் எவ–வ–ளவு எரி–சக்தி பயன்–ப–டுத்–தப்–ெடடு இருக்–கி்றது என்–ப–தை–யும அத–னபால் சுற–றுச்–சூ–ழ– லுக்கு எவ–வ–ளவு ெபாதிப்பு ஏற–படும என்–ப–தை–யும தெரிந–து–ப்கபாள்–ள–லாம். பெபாது குளிர ெபா�னத்தில் வ்கமெசிச் செயலி மூலம வெப்ப நிலையை எப்படி குவ்றக்்கலாம், கூடடலாம் என்பதை த�பா ெபாமயபா ஹப்பில் செயல்படும ்கபாடசிக் கூடத்தில் தெரிநது ப்கபாள்ளலாம். படம்: ஸ்ட்ரெய்்டஸ டைம்ஸ த�பா ெபாமயபா–வில் உள்ள வீை்க மையத்தில் இப்–மெபாது ‘எனது தெங்கபா அனு–பவ நிலை–யம’ என்்ற பெயர தாங்–கிய ஒரு ்கபாட–சிக்கூடம செயல்–ப–டு–கி்றது. அதில் பல–ைற–வ்ற– யும மக்–்கள் தெரிந–து–ப்கபாள்–ள–லாம். ைபார நாட்–்களில் இந–தக் கூடம ்கபாவல 8 மணி முதல் ேபாவல 5 மணி வரை திறந்–தி–ருக்–கும. எல்– லபா–ரும அனு–ம–திக்–்கப்–ப–டு–வார்–்கள் என்–்றபா–லும ஒரு நேரத்–தில் 16 மெர வரை–�பான் உள்ளே செல்ல முடி–யும என்–ப–�பால் முன்–ப–திவு செய்துப்கபாள்– வது நல்–லது.

2 6 THE BUSINESS TIMES / WEEKEND / SEPTEMBER 16-17, 2023 R EAL ESTATE Labrador Tower set to showcase SP Group’s green, digital energy prowess To save energy it uses underground thermal-energy storage, a microclimate control system and hybrid active chilled beams By Kalpana Rashiwala kalpana@sph.com.sg THE air-conditioning system in SP Group’s Labrador Tower, an office-andretail project, is expected to be about 50 per cent more energy-efficient than a conventional air-con system. The energy savings will be achieved through the use of underground thermal-energy storage, a microclimate control system and hybrid active chilled beams. SP Group expects to complete Labrador Tower in mid-2024. It will be near Labrador Park MRT station and a nature reserve. The thermal storage tank will be in the basement of the office tower. Installing such a system optimises energy efficiency for commercial buildings because they are used heavily in the day and are vacant overnight. Cold water generated by the chiller plant at night is stored in the thermal tank and re-used to cool the building in the day, noted Surbana Jurong Group, the architect for the Labrador Tower project. Surbana Jurong also undertook the mechanical, civil and structural engineering works for the project; among other roles, it worked closely with SP Group to develop Labrador Tower’s sustainability goals. “Re-using the cold water from the storage tank allows asset owners to right-size the chiller plant and cooling The technology’s predictive intelligence works together with sensors and smart dampers to take into account, for example, the number of people in the building and the weather, to optimise air-flow to cool areas evenly. /////////////////////////////////// towers and run the air-conditioning consistently, at optimal load for better efficiency. The space is then freed up for other commercial uses for a higher rental yield,” Surbana Jurong said. It added that a thermal storage tank is most suitable for commercial buildings. It will not benefit residential buildings, which have a higher load at night. The microclimate control system for Labrador Tower will use SP Group’s Green Energy Tech digital-energy solution. This self-learning building-intelligence system utilises artificial intelligence and Internet of Things (IoT) to optimise and regulate air-conditioning and maximise energy efficiency. The technology’s predictive intelligence works together with sensors and smart dampers to take into account, for example, the number of people in the building and the weather, to optimise The thermal storage tank will be in the basement of the office tower of the Labrador Tower development. PHOTO: SP GROUP air-flow to cool areas evenly. The system therefore enhances occupants’ comfort while maximising energy and operational efficiency. The hybrid active system of chilled beams to be incorporated into Labrador Tower does away with the motors or fans of conventional air-conditioning systems. Chilled water produced by SP Group’s design-patented chillers is delivered directly to the ceilings of the office space, cooling the air there by induction and forced convection, thus saving energy. Stanley Huang, group chief executive officer of SP Group, said: “Leveraging our established suite of sustainable and digital-energy solutions, Labrador Tower has achieved the Green Mark Platinum Super-Low Energy certification from the Building and Construction Authority. This serves as a blueprint for similar mixed-use developments seeking higher energy efficiency.” Under this certification, the project targets to deliver energy savings of at least 60 per cent, compared with 2005 Green Mark benchmarks.

CONTENTS 01 DIRECTORS’ REPORT 04 STATEMENT BY DIRECTORS 05 INDEPENDENT AUDITORS’ REPORT 07 BALANCE SHEETS 08 INCOME STATEMENTS 09 STATEMENTS OF COMPREHENSIVE INCOME 10 STATEMENTS OF CHANGES IN EQUITY 13 CONSOLIDATED CASH FLOW STATEMENT 14 NOTES TO THE FINANCIAL STATEMENTS Cover: Jananto Brynner Soedadi Group Risk Management Analyst, Finance, SP ANNUAL REPORT 2011 1 DIRECTORS’ REPORT We are pleased to submit this annual report to the member of the Company together with the audited financial statements for the financial year ended 31 March 2012. Directors The directors in office at the date of this report are as follows: Mr Ng Kee Choe Mr Alan Chan Heng Loon Mr Ho Tian Yee Mr Tan Chee Meng Mr Bobby Chin Yoke Choong Prof Jeremy Guy Ashcroft Davis Mr Choi Shing Kwok Mrs Oon Kum Loon Tan Sri Mohd Hassan Marican Mr Tan Puay Chiang (Appointed on 16 April 2012) Mr Wong Kim Yin (Appointed on 1 January 2012) Directors’ interests According to the register kept by the Company for the purposes of Section 164 of the Singapore Companies Act, Chapter 50 (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: Holdings Name of director and related corporations at beginning Holdings in which interests (fully paid ordinary shares of the year/date at end of unless otherwise stated) are held of appointment the year Mr Ng Kee Choe Singapore Telecommunications Limited shares 3,080 3,080 SP AusNet securities* 195,883 195,883 PT Bank Danamon Indonesia Tbk shares 50,000 50,000 PT Bank Danamon Indonesia Tbk shares (Series B) 32,843 44,275 Mapletree Industrial Trust units 100,000 100,000 Mapletree Commercial Trust units 100,000 100,000 Mr Alan Chan Heng Loon Singapore Telecommunications Limited shares 2,970 2,970 SP AusNet securities* 125,000 125,000 Mapletree Industrial Trust units 9,000 9,720 Mapletree Commercial Trust units - 23,000 Mr Ho Tian Yee Singapore Telecommunications Limited shares 2,850 2,850 Mr Tan Chee Meng SP AusNet securities* 62,500 62,500 Mapletree Commercial Trust units - 200,000 2 SINGAPORE POWER DIRECTORS’ REPORT Holdings Name of director and related corporations at beginning Holdings in which interests (fully paid ordinary shares of the year/date at end of unless otherwise stated) are held of appointment the year Mr Bobby Chin Yoke Choong Neptune Orient Lines Limited shares 29,489 29,489 SP AusNet securities* 25,000 25,000 Singapore Airlines Limited shares 2,000 2,000 Mapletree Industrial Trust units 120,000 129,600 Mapletree Commercial Trust units - 100,000 Prof Jeremy Guy Ashcroft Davis SP AusNet securities* 105,000 105,000 Mr Choi Shing Kwok Singapore Telecommunications Limited shares 2,720 2,720 Mapletree Logistics Trust units 2,000 - Mrs Oon Kum Loon Singapore Telecommunications Limited shares 2,720 2,720 SP AusNet securities* 75,000 75,000 Mapletree Industrial Trust units 8,000 8,000 Mr Wong Kim Yin Singapore Telecommunications Limited shares 190 190 Mapletree Industrial Trust units 280,000 280,000 * Stapled Group securities, each comprising one SP Australia Networks (Transmission) Ltd share, one SP Australia Networks (Distribution) Ltd share and one SP Australia Networks (Finance) Trust unit. Except as disclosed in this report, 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 of the financial year, or date of appointment, if later, 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 in or debentures of the Company or any other body corporate. Since the end of the last financial year, no director has received or become entitled to receive, a benefit by reason of a contract made by the Company or a related corporation with the director, or with a firm of which he is a member, or with a company in which he has a substantial financial interest, except for salaries, bonuses and fees and those benefits that are disclosed in this report and in Note 33 to the financial statements, and except that certain directors have received remuneration from related corporations in their capacities as directors of those related corporations and that professional fees are paid or payable for services rendered by a firm in which a director is a member of that firm. ANNUAL REPORT 2011 3 DIRECTORS’ REPORT 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. Auditors The auditors, KPMG LLP, have indicated their willingness to accept re-appointment. On behalf of the Board of Directors MR NG KEE CHOE Chairman MR WONG KIM YIN Group Chief Executive Officer/Director 31 May 2012 4 SINGAPORE POWER STATEMENT BY DIRECTORS In our opinion: (a) (b) the financial statements set out on pages 7 to 89 are drawn up so as to give a true and fair view of the state of affairs of the Group and of the Company as at 31 March 2012 and the results, changes in equity and cash flows of the Group and of the results 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 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. The Board of Directors has, on the date of this statement, authorised these financial statements for issue. On behalf of the Board of Directors MR NG KEE CHOE Chairman MR WONG KIM YIN Group Chief Executive Officer/Director 31 May 2012 ANNUAL REPORT 2011 5 INDEPENDENT AUDITORS’ REPORT Member of the Company Singapore Power Limited Report on the financial statements We have audited the accompanying financial statements of Singapore Power Limited (the Company) and its subsidiaries (the Group), which comprise the balance sheets of the Group and the Company as at 31 March 2012, the income statement, statement of comprehensive income, statement of changes in equity and cash flow statement of the Group and the income statement, statement of comprehensive income and statement of changes in equity of the Company for the year then ended, and a summary of significant accounting policies and other explanatory information, as set out on pages 7 to 89. Management’s responsibility 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 Singapore Companies Act, Chapter 50 (the Act) and Singapore Financial Reporting Standards, 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 profit and loss accounts and balance sheets and to maintain accountability of assets. Auditors’ responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Singapore Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of financial statements that give a true and fair view 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 entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the consolidated financial statements of the Group and 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 Act and Singapore Financial Reporting Standards to give a true and fair view of the state of affairs of the Group and of the Company as at 31 March 2012 and the results, changes in equity and cash flows of the Group and the results and changes in equity of the Company for the year ended on that date. 6 SINGAPORE POWER INDEPENDENT AUDITORS’ REPORT Member of the Company Singapore Power Limited Report on other legal 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. KPMG LLP Public Accountants and Certified Public Accountants Singapore 31 May 2012 ANNUAL REPORT 2011 7 BALANCE SHEETS As at 31 March 2012 Group Company Restated* Restated* Note 2012 2011 2012 2011 $ million $ million $ million $ million Non-current assets Property, plant and equipment 4 24,234.8 23,344.3 29.7 23.2 Intangible assets 5 3,866.9 3,823.1 6.3 5.1 Subsidiaries 6 - - 6,567.9 6,583.9 Associates and joint venture 7 1,417.3 1,277.2 - - Other investments 8 11.9 6.6 359.0 359.0 Other non-current assets 9 545.3 410.9 21.3 21.4 Deferred tax assets 10 64.9 285.0 - - 30,141.1 29,147.1 6,984.2 6,992.6 Current assets Inventories 11 164.6 160.9 - - Trade and other receivables 12 1,471.8 1,550.5 6,071.8 6,441.9 Cash and cash equivalents 15 588.9 234.9 110.3 8.7 2,225.3 1,946.3 6,182.1 6,450.6 Total assets 32,366.4 31,093.4 13,166.3 13,443.2 Equity Share capital 16 3,911.9 3,911.9 3,911.9 3,911.9 Reserves 17 (121.8) (35.2) - - Accumulated profits 4,546.2 3,966.4 4,894.9 4,857.1 Equity attributable to owners of the Company 8,336.3 7,843.1 8,806.8 8,769.0 Non-controlling interests 1,600.3 1,545.0 - - Total equity 9,936.6 9,388.1 8,806.8 8,769.0 Non-current liabilities Bank loans 18 3,577.3 4,428.2 - - Debt obligations 19 10,948.6 9,942.7 362.1 362.3 Other financial liabilities 20 1,782.6 1,829.5 18.4 18.2 Other non-current liabilities 21 993.1 882.7 3.9 1.6 Deferred tax liabilities 10 1,278.2 1,503.4 1.7 2.5 18,579.8 18,586.5 386.1 384.6 Current liabilities Trade and Other Payables 24 2,120.6 1,884.1 3,932.6 4,206.9 Bank Loans 18 1,191.5 108.4 - - Debt obligations 19 313.0 892.1 - - Other financial liabilities 20 59.8 64.2 24.7 67.4 Provision for taxation 165.1 170.0 16.1 15.3 3,850.0 3,118.8 3,973.4 4,289.6 Total liabilities 22,429.8 21,705.3 4,359.5 4,674.2 Total equity and liabilities 32,366.4 31,093.4 13,166.3 13,443.2 * See note 2.5 and note 41 The accompanying notes form an integral part of these financial statements. 8 SINGAPORE POWER INCOME STATEMENTS Year ended 31 March 2012 Group Company Note 2012 2011 2012 2011 $ million $ million $ million $ million Revenue 28 8,662.3 7,804.5 453.4 440.0 Other income 29 426.7 415.0 - 0.1 Expenses - Purchased power (3,301.9) (2,867.5) - - - Depreciation of property, plant and equipment 4 (1,001.3) (901.4) (5.0) (5.3) - Amortisation of intangible assets 5 (96.0) (97.4) (1.4) (1.1) - Maintenance (853.0) (765.5) (3.7) (3.4) - Staff costs (948.6) (772.4) (33.8) (30.9) - Property taxes (200.0) (185.7) (0.1) (0.1) - Other operating expenses (384.0) (365.6) (18.5) (14.0) Operating profit 2,304.2 2,264.0 390.9 385.3 Finance income 30 51.5 72.9 25.6 45.2 Finance costs 31 (1,058.4) (1,120.0) (26.5) (32.8) Share of (loss)/profit of associates, net of tax (14.1) 8.7 - - Share of profit of joint venture, net of tax 7 79.3 64.5 - - Profit before taxation 1,362.5 1,290.1 390.0 397.7 Tax expense 32 (253.9) (198.0) (2.2) (1.1) Profit for the year 33 1,108.6 1,092.1 387.8 396.6 Profit attributable to: Owner of the Company 929.8 924.0 387.8 396.6 Non-controlling interests 178.8 168.1 - - Profit for the year 1,108.6 1,092.1 387.8 396.6 The accompanying notes form an integral part of these financial statements. ANNUAL REPORT 2011 9 STATEMENTS OF COMPREHENSIVE INCOME Year ended 31 March 2012 Group Company 2012 2011 2012 2011 $ million $ million $ million $ million Profit for the year 1,108.6 1,092.1 387.8 396.6 Other comprehensive income Translation differences relating to financial statements of foreign operations 9.6 180.8 - - Effective portion of changes in fair value of cash flow hedges, net of tax (285.1) (307.0) - - Reversal of changes in fair value of cash flow hedges included in profit or loss, net of tax 210.8 257.9 - - Reversal of changes in fair value of cash flow hedges on recognition of the hedged item on balance sheet, net of tax 11.2 16.7 - - Actuarial (loss)/gain on defined benefit plans, net of tax (70.7) 3.4 - - Other comprehensive income for the year, net of tax (124.2) 151.8 - - Total comprehensive income for the year 984.4 1,243.9 387.8 396.6 Attributable to: Owner of the Company 843.2 1,060.2 387.8 396.6 Non-controlling interests 141.2 183.7 - - Total comprehensive income for the year 984.4 1,243.9 387.8 396.6 The accompanying notes form an integral part of these financial statements. 10 SINGAPORE POWER STATEMENTS OF CHANGES IN EQUITY Year ended 31 March 2012 Total equity attributable Currency to owner Non- Share translation Hedging Other Accumulated of the controlling Total Group capital reserve reserve reserve profits Company interests equity $ million $ million $ million $ million $ million $ million $ million $ million At 1 April 2010 3,911.9 7.3 (122.0) (56.7) 3,042.4 6,782.9 1,451.8 8,234.7 Total comprehensive income for the year Profit for the year - - - - 924.0 924.0 168.1 1,092.1 Other comprehensive income Translation differences relating to financial statements of foreign subsidiaries - 141.1 - - - 141.1 39.7 180.8 Effective portion of changes in fair value of cash flow hedges, net of tax - - (209.4) - - (209.4) (97.6) (307.0) Reversal of changes in fair value of cash flow hedges included in profit or loss, net of tax - - 185.9 - - 185.9 72.0 257.9 Reversal of changes in fair value of cash flow hedges on recognition of the hedged item on balance sheet, net of tax - - 16.7 - - 16.7 - 16.7 Actuarial gain on defined benefit plans, net of tax - - - 1.9 - 1.9 1.5 3.4 Total other comprehensive income - 141.1 (6.8) 1.9 - 136.2 15.6 151.8 Total comprehensive income for the year - 141.1 (6.8) 1.9 924.0 1,060.2 183.7 1,243.9 Transactions with owner of the Company, recorded directly in equity Contributions by and distributions to owner of the Company Equity contribution by non-controlling interests - - - - - - 46.4 46.4 Dividends paid to non-controlling interests - - - - - - (136.9) (136.9) Total transactions with owner - - - - - - (90.5 ) (90.5 ) At 31 March 2011 3,911.9 148.4 (128.8 ) (54.8 ) 3,966.4 7,843.1 1,545.0 9,388.1 The accompanying notes form an integral part of these financial statements. ANNUAL REPORT 2011 11 STATEMENTS OF CHANGES IN EQUITY Year ended 31 March 2012 Total equity attributable Currency to owner Non- Share translation Hedging Other Accumulated of the controlling Total Group capital reserve reserve reserve profits Company interests equity $ million $ million $ million $ million $ million $ million $ million $ million At 1 April 2011 3,911.9 148.4 (128.8) (54.8) 3,966.4 7,843.1 1,545.0 9,388.1 Total comprehensive income for the year Profit for the year - - - - 929.8 929.8 178.8 1,108.6 Other comprehensive income Translation differences relating to financial statements of foreign operations - 9.4 - - - 9.4 0.2 9.6 Effective portion of changes in fair value of cash flow hedges, net of tax - - (196.0) - - (196.0) (89.1) (285.1) Reversal of changes in fair value of cash flow hedges included in profit or loss, net of tax - - 147.7 - - 147.7 63.1 210.8 Reversal of changes in fair value of cash flow hedges on recognition of the hedged item on balance sheet, net of tax - - 6.5 - - 6.5 4.7 11.2 Actuarial loss on defined benefit plans, net of tax - - - (54.2) - (54.2) (16.5) (70.7) Total other comprehensive income - 9.4 (41.8 ) (54.2 ) - (86.6 ) (37.6 ) (124.2 ) Total comprehensive income for the year - 9.4 (41.8 ) (54.2 ) 929.8 843.2 141.2 984.4 Transactions with owner of the Company, recorded directly in equity Contributions by and distribution to owner of the Company Dividends - - - - (350.0) (350.0) - (350.0) Equity contribution by non-controlling interests - - - - - - 57.9 57.9 Dividends paid to non-controlling interests - - - - - - (143.8) (143.8) Total transactions with owner - - - - (350.0 ) (350.0 ) (85.9 ) (435.9 ) At 31 March 2012 3,911.9 157.8 (170.6 ) (109.0 ) 4,546.2 8,336.3 1,600.3 9,936.6 The accompanying notes form an integral part of these financial statements. 12 SINGAPORE POWER STATEMENTS OF CHANGES IN EQUITY Year ended 31 March 2012 Total equity attributable Currency to owner Non- Share translation Hedging Other Accumulated of the controlling Total Group capital reserve reserve reserve profits Company interests equity $ million $ million $ million $ million $ million $ million $ million $ million At 1 April 2010 3,911.9 7.3 (122.0) (56.7) 3,042.4 6,782.9 1,451.8 8,234.7 Total comprehensive income for the year Profit for the year - - - - 924.0 924.0 168.1 1,092.1 Other comprehensive income Translation differences relating to financial statements of foreign subsidiaries - 141.1 - - - 141.1 39.7 180.8 Effective portion of changes in fair value of cash flow hedges, net of tax - - (209.4) - - (209.4) (97.6) (307.0) Reversal of changes in fair value of cash flow hedges included in profit or loss, net of tax - - 185.9 - - 185.9 72.0 257.9 Reversal of changes in fair value of cash flow hedges on recognition of the hedged item on balance sheet, net of tax - - 16.7 - - 16.7 - 16.7 Actuarial gain on defined benefit plans, net of tax - - - 1.9 - 1.9 1.5 3.4 Total other comprehensive income - 141.1 (6.8 ) 1.9 - 136.2 15.6 151.8 Total comprehensive income for the year - 141.1 (6.8 ) 1.9 924.0 1,060.2 183.7 1,243.9 Transactions with owner of the Company, recorded directly in equity Contributions by and distributions to owner of the Company Equity contribution by non-controlling interests - - - - - - 46.4 46.4 Dividends paid to non-controlling interests - - - - - - (136.9) (136.9) Total transactions with owner - - - - - - (90.5 ) (90.5 ) At 31 March 2011 3,911.9 148.4 (128.8 ) (54.8 ) 3,966.4 7,843.1 1,545.0 9,388.1 The accompanying notes form an integral part of these financial statements. ANNUAL REPORT 2011 13 CONSOLIDATED CASH FLOW STATEMENT Year ended 31 March 2012 Note 2012 2011 $ million $ million Cash flows from operating activities Profit for the year 1,108.6 1,092.1 Adjustments for: Depreciation and amortisation 1,097.3 998.8 Accretion of deferred customers’ contribution (25.7) (25.1) Share of profits of associates and joint venture (65.2) (68.7) Finance income (51.5) (72.9) Finance costs 1,058.4 1,120.0 Loss on disposal of property, plant and equipment 22.7 14.7 Loss on disposal of intangible assets 12.8 5.2 Tax expense 253.9 198.0 Others 3.2 1.1 3,414.5 3,263.2 Changes in working capital: Trade and other receivables (205.2) (26.4) Inventories (4.8) (18.4) Balances with related parties (trade) (12.2) 16.4 Trade and other payables 207.9 166.6 Others - 1.9 Cash generated from operations 3,400.2 3,403.3 Interest received 14.7 39.1 Income taxes paid (259.8) (75.1) Net cash from operating activities 3,155.1 3,367.3 Cash flows from investing activities Proceeds from disposal of property, plant and equipment 11.9 6.8 Acquisition of subsidiaries (net of cash acquired) 36 - (17.2) Acquisition of interests in an associate (98.5) - Acquisition of other investments (5.3) (0.8) Purchase of intangible assets (72.5) (83.3) Purchase of property, plant and equipment (1,939.5) (1,633.8) Dividends received from associate and joint venture 33.1 35.5 Proceeds from divestment of associate and joint venture - 1.5 Net cash used in investing activities (2,070.8) (1,691.3) Cash flows from financing activities Proceeds from bank loans and debt obligations 3,990.3 6,930.7 Repayment of bank loans and debt obligations (3,273.3) (8,268.3) Net receipt of customers’ contributions 32.0 44.7 Proceeds from issue of shares to non-controlling interests 57.9 46.4 Dividends paid to non-controlling interests (143.8) (136.9) Dividends paid to holding company (350.0) - Interest paid (1,043.6) (1,030.4) Net cash used in financing activities (730.5) (2,413.8) Net increase/(decrease) in cash and cash equivalents 353.8 (737.8) Cash and cash equivalents at beginning of the year 234.9 959.0 Effect of exchange rate changes on balances held in foreign currencies 0.2 13.7 Cash and cash equivalents at end of the year 15 588.9 234.9 14 SINGAPORE POWER NOTES TO THE FINANCIAL STATEMENTS These notes form an integral part of the financial statements. The financial statements were authorised for issue by the Board of Directors on 31 May 2012. 1 Domicile and activities Singapore Power Limited (the Company) is incorporated in the Republic of Singapore and has its registered office at 10 Pasir Panjang Road, Mapletree Business City, Singapore 117438. The holding company is Temasek Holdings (Private) Limited, a company incorporated in the Republic of Singapore. The principal activity of the Company is 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 investment 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 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 The 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 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. 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 significant areas of estimation uncertainty and critical judgements in applying accounting policies that have the most significant effect on the amount recognised in the financial statements are discussed below: ANNUAL REPORT 2011 15 NOTES TO THE FINANCIAL STATEMENTS 2 Basis of preparation (Cont’d) 2.4 Use of estimates and judgements (Cont’d) Impairment of goodwill and indefinite-lived intangible assets Impairment reviews in respect of goodwill and intangible assets are performed at least annually. 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 cash generating units. 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. Details of key assumptions made are set out in note 5. 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. Details are set out in note 3.3. Defined benefit plan assumptions Defined benefit plan assumptions are based on long-term market expectations. The use of other assumptions would lead to different values for defined benefit plan assets and liabilities, including the unrecognised actuarial gains and losses, and different cost of defined benefit plans. Details are set out in note 27. 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 38 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, sensitivity to consumption growth and prevailing weather conditions. The results of this analysis are applied for the number of days and weather conditions over the unbilled period. 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 10 and 32. 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 Interpretation to FRS (INT FRS) that became mandatory from 1 April 2011. The adoption of these new FRSs and INT FRS has no significant impact to the Group. 16 SINGAPORE POWER NOTES TO THE FINANCIAL STATEMENTS 2 Basis of preparation (Cont’d) 2.5 Changes in accounting policies (Cont’d) Change in classification of derivative financial instruments Following an extensive review of the accounting for derivative financial instruments, the Group has voluntarily amended its approach to classifying derivative financial instruments in the balance sheets. Previously the split between current and non-current was based on the contractual cash flow of the instrument. From 1 April 2011, the Group has determined this split based on the maturity date of the instrument. As a result, derivative financial instruments are classified as non-current, except for those instruments that mature in less than 12 months, which are classified as current. Comparative information has been restated to align with this change. The Group believes that the adoption of the maturity date approach for classifying derivative financial instruments provides better information to users of the financial statements by aligning the classification to the Group’s approach to treasury risk management. Derivatives are presented according to the period for which they are providing a hedge against a financial risk exposure. Arising from the change in accounting policy, as at 31 March 2012, at the Group level, additional amounts of $120.4 million and $412.5 million have been classified as part of other non-current assets (derivative assets) and other non-current financial liabilities, instead of part of trade and other receivables (derivative assets) and other current financial liabilities, respectively. At the Company level, additional amounts of $0.8 million have been classified as part of other non-current assets (derivative assets), instead of part of trade and other receivables (derivative assets). Refer to note 41 for further details regarding this change in the classification of derivative financial instruments to the comparative financial period. ANNUAL REPORT 2011 17 NOTES TO THE FINANCIAL STATEMENTS 3 Significant accounting policies The accounting policies set out below have been applied consistently to all periods presented in these financial statements, and have been consistently applied by Group entities, except as explained in note 2.5, which addresses changes in accounting policies. Certain comparative amounts have been reclassified to conform with the current year’s presentation (see note 41). 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. 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-by-transaction 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. From 1 April 2004 to 31 March 2010, business combinations are accounted for under the purchase method. The cost of an acquisition is measured at the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the acquisition. 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 (formerly known as negative goodwill) (see note 3.4). Subsidiaries Subsidiaries are entities controlled by the Group. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. 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. 18 SINGAPORE POWER NOTES TO THE FINANCIAL STATEMENTS 3 Significant accounting policies (Cont’d) 3.1 Basis of consolidation (Cont’d) 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. Investments in associates and joint ventures (equity-accounted investees) Associates are those entities in which the Group has significant influence, but not control, over their 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. Joint ventures are those entities over whose activities the Group has joint control, established by contractual agreement and requiring unanimous consent for strategic financial and operating decisions. Investments in associates and joint ventures are accounted for using the equity method (equity-accounted investees) and are recognised initially at cost. The cost of the investments include transaction costs. 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 equityaccounted 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 that interest (including any long-term investments) is reduced to zero and the recognition of further losses is discontinued except to the extent that the Group has an obligation 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 noncontrolling interests 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 All significant 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 associates and joint ventures 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, associates and joint ventures by the Company Investments in subsidiaries, associates and joint ventures are stated in the Company’s balance sheet at cost less accumulated impairment losses. ANNUAL REPORT 2011 19 NOTES TO THE FINANCIAL STATEMENTS 3 Significant accounting policies (Cont’d) 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 date of the transactions. The functional currencies of the Group’s entities are mainly Singapore dollar and Australian dollar. 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 retranslation are recognised in profit or loss, except for differences arising on the retranslation of a financial liability designated as a hedge of the net investment in a foreign operation that is effective (see below), available-for-sale equity instruments (see note 3.5) and financial liabilities designated as hedges of the net investment in foreign operations, 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 were 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 currency translation reserve (translation reserve) in equity. However, if the 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 in 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 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 SINGAPORE POWER NOTES TO THE FINANCIAL STATEMENTS 3 Significant accounting policies (Cont’d) 3.2 Foreign currencies (Cont’d) Net investment in a foreign operation Foreign currency differences arising on the retranslation of a financial liability designated as a hedge of a net investment in a foreign operation are recognised in other comprehensive income to the extent that the hedge is effective, and are presented within equity in the currency translation reserve. To the extent that the hedge is ineffective, such differences are recognised in profit or loss. When the hedged part of a net investment is disposed of, the relevant amount in the currency translation reserve is transferred to profit or loss as part of profit or loss on disposal. 3.3 Property, plant and equipment Recognition and measurement Property, plant and equipment are stated at cost less accumulated depreciation and 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. 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 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, easements and construction-in-progress are not depreciated. ANNUAL REPORT 2011 21 NOTES TO THE FINANCIAL STATEMENTS 3 Significant accounting policies (Cont’d) 3.3 Property, plant and equipment (Cont’d) The estimated useful lives for the current and comparative periods are as follows: Singapore operations Australia operations Freehold buildings – 30 – 99 years Leasehold land Over the term of the lease, ranging from 20 – 99 years – Leasehold buildings 21 – 30 years or the 5 – 40 years or the lease term, if shorter lease term, if shorter Plant and machinery - Mains (Electricity) 30 years 2 – 70 years - Mains (Gas) 20 – 50 years 15 – 120 years - Transformers and switchgear 30 years 15 – 45 years - Towers – 70 years Other plant and equipment (principally gas storage plant, remote control and telemetering equipment) 3 – 30 years 3 – 50 years Motor vehicles and office equipment 3 – 15 years 3 – 15 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; - 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 existing equity interest in the acquiree, over the net recognised amount (generally fair value) of the identifiable asset acquired and liabilities assumed. When the excess is negative, a bargain purchase gain is recognised immediately in profit or loss. 22 SINGAPORE POWER NOTES TO THE FINANCIAL STATEMENTS 3 Significant accounting policies (Cont’d) 3.4 Intangible assets (Cont’d) 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. Other intangible assets Other intangible assets with finite useful lives are measured at cost less accumulated amortisation and 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 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 lives of 5 to 7 years. Transmission and distribution licences held by certain subsidiaries in Australia entitle these subsidiaries to transmit and distribute electricity and gas within the subsidiaries’ licensed regions. Transmission and distribution licences are stated at cost less impairment losses. No amortisation is provided as, in the opinion of management, they have unlimited useful lives. Such transmission and distribution licences are tested for impairment annually and whenever there is an indication that the transmission and distribution licences may be impaired, any impairment loss is recognised immediately in profit or loss. Deferred expenditure relates mainly to contributions paid by the Group in accordance with regulatory requirements towards capital expenditure costs incurred by electricity generation companies. 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. Contract intangibles relates to estimated future economic benefits which the Group expects to derive from customer contracts and customer relationships acquired in business combinations. Contract intangibles are carried at fair value at the date of acquisition, and amortised on a straight-line basis over the period of expected benefits. The weighted average estimated contract life is 17.2 years. Intangible assets under construction are stated at cost. No amortisation is provided until the commencement of the operation of the intangible assets. ANNUAL REPORT 2011 23 NOTES TO THE FINANCIAL STATEMENTS 3 Significant accounting policies (Cont’d) 3.5 Financial instruments Non-derivative financial instruments 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 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. 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-for-sale. 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 comprise cash balances and bank deposits. 24 SINGAPORE POWER NOTES TO THE FINANCIAL STATEMENTS 3 Significant accounting policies (Cont’d) 3.5 Financial instruments (Cont’d) 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. Subsequent to initial recognition, they are measured at fair value and changes therein, other than impairment losses (see note 3.8) 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. Non-derivatives 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 cash flow statement. 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, and the combined instrument is not measured at fair value through profit or loss. ANNUAL REPORT 2011 25 NOTES TO THE FINANCIAL STATEMENTS 3 Significant accounting policies (Cont’d) 3.5 Financial instruments (Cont’d) Derivative financial instruments, including hedge accounting (Cont’d) 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. 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. Economic hedges Hedge accounting is not applied to derivative hedging instruments that economically hedge monetary assets and liabilities denominated in foreign currencies. Changes in the fair value of such derivatives are recognised in profit or loss as part of foreign currency gains and losses. 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. 26 SINGAPORE POWER NOTES TO THE FINANCIAL STATEMENTS 3 Significant accounting policies (Cont’d) 3.5 Financial instruments (Cont’d) Derivative financial instruments, including hedge accounting (Cont’d) Financial guarantee Financial guarantees are financial instruments issued by the Group 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. 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 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. ANNUAL REPORT 2011 27 NOTES TO THE FINANCIAL STATEMENTS 3 Significant accounting policies (Cont’d) 3.7 Impairment (Cont’d) 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 held-to-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. 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-for-sale 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. 28 SINGAPORE POWER NOTES TO THE FINANCIAL STATEMENTS 3 Significant accounting policies (Cont’d) 3.7 Impairment (Cont’d) 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. 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. Goodwill that forms part of the carrying amount of an investment in an associate is not recognised separately, and therefore is not tested for impairment separately. Instead, the entire amount of the investment in an associate is tested for impairment as a single asset when there is objective evidence that the investment in an associate 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. ANNUAL REPORT 2011 29 NOTES TO THE FINANCIAL STATEMENTS 3 Significant accounting policies (Cont’d) 3.9 Employee benefits Provision is made for the accrued liability for employee entitlements arising from services rendered by employees 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. 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. Defined benefit plans A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The Group’s net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value. Any unrecognised past service costs and the fair value of any plan assets are deducted. The discount rate is the yield at the reporting date on government bonds that have maturity dates approximating the terms of the Group’s obligations and that are denominated in the same currency in which the benefits are expected to be paid. The calculation is performed by a qualified actuary using the projected unit credit method. When the calculation results in a benefit to the Group, the recognised asset is limited to the total of any unrecognised past service costs and the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan. In order to calculate the present value of economic benefits, consideration is given to any minimum funding requirements that apply to any plan in the Group. An economic benefit is available to the Group if it is realisable during the life of the plan, or on settlement of the plan liabilities. When the benefits of the plan are improved, the portion of the increased benefit relating to past service by employees is recognised in profit or loss on a straight line basis over the average period until the benefits become vested. To the extent that the benefits vest immediately, the expense is recognised immediately in profit or loss. The Group recognises all actuarial gains and losses arising from defined benefit plans in other comprehensive income and all other expenses related to defined benefit plans in profit or loss. 30 SINGAPORE POWER NOTES TO THE FINANCIAL STATEMENTS 3 Significant accounting policies (Cont’d) 3.9 Employee benefits (Cont’d) The Group recognises gains and losses on the curtailment or settlement of a defined benefit plan when the curtailment or settlement occurs. The gain or loss on curtailment comprises any resulting change in the fair value of plan assets, change in present value of defined benefit obligation and any related actuarial gains and losses and past service cost that had not previously been recognised. 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 short-term 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. 3.10 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. 3.11 Deferred income Deferred income comprises (i) government grants for the purchase of depreciable assets and (ii) contributions made by certain customers towards the cost of capital projects received prior to 1 July 2009. Deferred income is recognised on the 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. ANNUAL REPORT 2011 31 NOTES TO THE FINANCIAL STATEMENTS 3 Significant accounting policies (Cont’d) 3.12 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: Sale of electricity and gas Revenue from the sale of electricity and gas are recognised when electricity and gas are delivered to consumers. Electricity transmission, gas transportation and distribution revenue Revenue relates to transmission of electricity, transportation of gas and related services and is recognised when the services are rendered. Distribution revenue relates to distribution of gas and electricity and related services and is recognised at the point of consumption. Distribution revenue comprises services rendered and a net accrual for unbilled and unread revenue. Accrued revenue is determined having regard to the period since a customer’s last billing date and the customer’s previous consumption patterns. 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 rate-regulated framework governing those assets, are taken into account. Agency fees Agency fees from acting as billing agent 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 services income and management fees are recognised when the services are rendered. 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. 32 SINGAPORE POWER NOTES TO THE FINANCIAL STATEMENTS 3 Significant accounting policies (Cont’d) 3.13 Price regulation and licences 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 of Singapore. The Group’s operations in Australia, depending on the industry and state the operations are in, are regulated under the Electricity Industry Act 2000 (Vic), National Electricity (Vic) Act 1997, Essential Services Commission Act 2001, National Electricity Law and Rules, Utilities Act 2000, National Gas Law and Rules, Gas Supply Act 1996 (NSW), Pipelines Act 1967 (NSW), Petroleum and Gas (Production and Safety) Act 2004 (Queensland), Pipelines Act 2005 (Vic), Gas Industry Act 2001, Gas Pipelines Access (Victoria) Act 1998 and the Water Industry Competition Act 2006 (NSW) as administered by the Australian Energy Regulator, the Essential Services Commission, the Australian Energy Market Operator, the Independent Competition and Regulatory Commission, the Independent Pricing and Regulatory Tribunal, Industry & Investment NSW, Queensland Mines and Energy, and Department of Primary Industries. Revenue to be earned from the supply and transmission of electricity and gas and the provision of market support services is regulated based on certain formulae and parameters set out in those licenses, relevant acts and codes. Actual revenue billed may vary from that allowed, resulting in an adjustment that may increase or decrease tariffs in succeeding periods to recover or refund amounts under or over charged. In order to match costs incurred and revenue earned, 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. 3.14 Lease payment Payments made under operating leases are recognised in profit or loss on a straight-line basis over the term of the lease. Lease incentives received are recognised as an integral part of the total lease expense, over the term of the lease. Minimum lease payments made under finance leases are apportioned between the finance expense and the reduction of the outstanding liability. The finance expense is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability. Contingent lease payments are accounted for by revising the minimum lease payments over the remaining term of the lease when the lease adjustment is confirmed. 3.15 Exceptional items Exceptional items refer to items of income or expense from ordinary activities recognised in profit or loss that are of such size, nature or incidence that their separate disclosure is considered necessary to explain the performance for the financial year. ANNUAL REPORT 2011 33 NOTES TO THE FINANCIAL STATEMENTS 3 Significant accounting policies (Cont’d) 3.16 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), and gains or losses on hedging instruments that are recognised in profit or loss. Borrowing cost 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. 3.17 Income tax expense Income 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 the 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 and joint ventures to the extent that 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 intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously. A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences, to the extent that it is probable that future taxable profits will be available against which they can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised. 34 SINGAPORE POWER NOTES TO THE FINANCIAL STATEMENTS 3 Significant accounting policies (Cont’d) 3.17 Income tax expense (Cont’d) In the ordinary course of business, there are many transactions and calculations for which the ultimate tax treatment is uncertain. Therefore, the Group recognises tax liabilities based on estimates of whether additional taxes and interest will be due. These tax liabilities are recognised when the Group believes that certain positions may not be fully sustained upon review by tax authorities, despite the Group’s belief that its tax return positions are supportable. The Group believes that its accruals for tax liabilities are adequate for all open tax years based on its assessment of many factors including interpretations of tax law and prior experience. This assessment relies on estimates and assumptions and may involve a series of multifaceted judgments about future events. New information may become available that causes the Company to change its judgment regarding the adequacy of tax liabilities, such changes to tax liabilities will impact tax expense in the period that such a determination is made. 3.18 Segment reporting An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Group’s other components. All operating segments’ operating results are reviewed regularly by the chief operating decision maker (“CODM”) to make decisions about resources to be allocated to the segment and to assess its performance, and for which discrete financial information is available. Segment results that are reported to the CODM include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Segment capital expenditure is the total cost incurred during the year to acquire property, plant and equipment, and intangible assets other than goodwill. 3.19 New standards and interpretations not yet adopted A number of new standards, amendments to standards and interpretations that are effective for annual periods beginning after 1 April 2011 have not been applied in preparing these financial statements. None of these are expected to have a significant impact on the Group’s financial statements. ANNUAL REPORT 2011 35 NOTES TO THE FINANCIAL STATEMENTS 4 Property, plant and equipment Other plant Motor vehicles Freehold Freehold Leasehold Leasehold Plant and and and office Construction- Note land Easements buildings land buildings machinery equipment equipment in-progress Total Group $ million $ million $ million $ million $ million $ million $ million $ million $ million $ million Cost At 1 April 2010 149.1 757.4 283.7 399.4 1,287.4 23,579.9 722.4 1,418.6 1,381.6 29,979.5 Additions 0.5 - 3.2 - 3.7 197.0 92.0 21.9 1,348.9 1,667.2 Disposals (0.4) - (0.6) (0.3) - (41.2) (11.8) (13.4) (0.2) (67.9) Transfers - - - - - - (79.0) - - (79.0) Reclassifications (5.1) - 30.6 25.8 55.0 1,159.1 175.0 173.2 (1,613.6) - Acquisition of subsidiary 36 - - - - 0.1 - 0.1 1.2 - 1.4 Translation differences 2.5 13.4 6.1 - 0.8 241.7 7.3 20.6 39.8 332.2 At 31 March 2011/ 1 April 2011 146.6 770.8 323.0 424.9 1,347.0 25,136.5 906.0 1,622.1 1,156.5 31,833.4 Additions 12.6 - 1.2 - 4.9 219.2 151.7 98.8 1,510.8 1,999.2 Disposals (1.8) - - (0.2) (1.9) (67.7) (12.0) (16.0) (1.0) (100.6) Transfers - - - - - - - - (87.3) (87.3) Reclassifications 0.5 - 22.1 - 9.2 1,023.5 794.4 (615.9) (1,233.8) - Translation differences 0.2 1.0 0.4 - - 18.3 (0.1) 0.6 (2.9) 17.5 At 31 March 2012 158.1 771.8 346.7 424.7 1,359.2 26,329.8 1,840.0 1,089.6 1,342.3 33,662.2 36 SINGAPORE POWER NOTES TO THE FINANCIAL STATEMENTS 4 Property, plant and equipment (Cont’d) Other Motor plant vehicles Freehold Freehold Leasehold Leasehold Plant and and and office Constructionland Easements buildings land buildings machinery equipment equipment in-progress Total Group $ million $ million $ million $ million $ million $ million $ million $ million $ million $ million Accumulated depreciation and impairment losses At 1 April 2010 - - 66.0 108.8 508.3 6,015.9 373.1 502.0 - 7,574.1 Depreciation - - 8.7 9.2 48.8 663.3 70.9 100.5 - 901.4 Disposals - - - - - (23.0) (9.8) (13.2) - (46.0) Reclassifications - - - - - 10.3 (10.3) - - - Translation differences - - 1.3 - 0.5 46.3 2.6 8.9 - 59.6 At 31 March 2011/1 April 2011 - - 76.0 118.0 557.6 6,712.8 426.5 598.2 - 8,489.1 Depreciation - - 9.5 9.5 47.1 751.3 72.4 111.5 - 1,001.3 Disposals - - - - (0.5) (44.9) (5.4) (14.2) - (65.0) Reclassifications - - - - - - 71.9 (71.9) - - Translation differences - - 0.1 - - 1.6 - 0.3 - 2.0 At 31 March 2012 - - 85.6 127.5 604.2 7,420.8 565.4 623.9 - 9,427.4 Carrying amounts At 1 April 2010 149.1 757.4 217.7 290.6 779.1 17,564.0 349.3 916.6 1,381.6 22,405.4 At 31 March 2011 146.6 770.8 247.0 306.9 789.4 18,423.7 479.5 1,023.9 1,156.5 23,344.3 At 31 March 2012 158.1 771.8 261.1 297.2 755.0 18,909.0 1,274.6 465.7 1,342.3 24,234.8 As at 31 March 2012, property, plant and equipment of a subsidiary with a carrying amount of $180.5 million (2011: $185.4 million) are pledged as security to secure bank loan (see note 18). ANNUAL REPORT 2011 37 NOTES TO THE FINANCIAL STATEMENTS 4 Property, plant and equipment (Cont’d) Expenses capitalised The following expenses were capitalised in property, plant and equipment during the year: Group Note 2012 2011 $ million $ million Borrowing costs 31 32.8 42.8 Motor vehicles Leasehold Leasehold Plant and and office Constructionland buildings equipment equipment in-progress Total Company $ million $ million $ million $ million $ million $ million Cost At 1 April 2010 9.4 10.4 2.9 20.7 0.1 43.5 Additions - 2.7 - - 3.9 6.6 Disposals - - - (0.5) - (0.5) Reclassifications - - - 0.1 (0.1) - At 31 March 2011/1 April 2011 9.4 13.1 2.9 20.3 3.9 49.6 Additions - 1.5 - 0.3 11.6 13.4 Disposals - (1.5) - (0.4) (0.4) (2.3) Reclassifications - 6.2 0.1 6.4 (12.7) - At 31 March 2012 9.4 19.3 3.0 26.6 2.4 60.7 Accumulated depreciation At 1 April 2010 4.1 5.0 0.9 11.6 - 21.6 Depreciation 0.3 1.8 0.2 3.0 - 5.3 Disposals - - - (0.5) - (0.5) At 31 March 2011/1 April 2011 4.4 6.8 1.1 14.1 - 26.4 Depreciation 0.3 0.9 0.2 3.6 - 5.0 Disposals - - - (0.4) - (0.4) At 31 March 2012 4.7 7.7 1.3 17.3 - 31.0 Carrying amounts At 1 April 2010 5.3 5.4 2.0 9.1 0.1 21.9 At 31 March 2011 5.0 6.3 1.8 6.2 3.9 23.2 At 31 March 2012 4.7 11.6 1.7 9.3 2.4 29.7 38 SINGAPORE POWER NOTES TO THE FINANCIAL STATEMENTS 5 Intangible assets ----------------------------------------- Group ----------------------------------------- ------------ Company ------------ Assets Contract Deferred under Deferred Note Software Licences intangibles expenditure Goodwill construction Total Software expenditure Total $ million $ million $ million $ million $ million $ million $ million $ million $ million $ million Cost At 1 April 2010 291.0 944.3 300.3 86.3 3,326.7 66.9 5,015.5 6.9 0.7 7.6 Additions 9.3 - - 0.4 - 64.2 73.9 1.4 - 1.4 Disposals (13.7 ) - - - - (5.4 ) (19.1 ) - - - Transfers 79.0 - - - - - 79.0 - - Acquisition of subsidiary 36 - - 5.1 - 14.8 - 19.9 - - - Translation differences 3.0 16.7 5.4 - 61.1 3.2 89.4 - - - At 31 March 2011/1 April 2011 368.6 961.0 310.8 86.7 3,402.6 128.9 5,258.6 8.3 0.7 9.0 Additions 17.6 - - 0.6 - 42.8 61.0 3.1 - 3.1 Disposals (12.8 ) - - - - - (12.8 ) (0.5 ) - (0.5 ) Transfers 59.1 - - - - 28.2 87.3 - - - Reclassification 30.7 - - - - (30.7 ) - - - - Translation differences 1.2 1.2 0.4 - 3.5 (0.5 ) 5.8 - - - At 31 March 2012 464.4 962.2 311.2 87.3 3,406.1 168.7 5,399.9 10.9 0.7 11.6 ANNUAL REPORT 2011 39 NOTES TO THE FINANCIAL STATEMENTS 5 Intangible assets (Cont’d) ----------------------------------------- Group ----------------------------------------- ------------ Company ------------ Assets Contract Deferred under Deferred Note Software Licences intangibles expenditure Goodwill construction Total Software expenditure Total $ million $ million $ million $ million $ million $ million $ million $ million $ million $ million Accumulated amortisation and impairment losses At 1 April 2010 163.0 49.7 125.5 36.1 938.7 - 1,313.0 2.2 0.6 2.8 Amortisation 63.2 - 24.6 9.6 - - 97.4 1.0 0.1 1.1 Disposals (2.8 ) - - - - - (2.8 ) - - - Translation differences 3.2 0.9 3.2 - 20.6 - 27.9 - - - At 31 March 2011/1 April 2011 226.6 50.6 153.3 45.7 959. 3 - 1,435.5 3.2 0.7 3.9 Amortisation 67.5 - 22.6 5.9 - - 96.0 1.4 - 1.4 Translation differences - - 0.2 - 1.3 - 1.5 - - - At 31 March 2012 294.1 50.6 176.1 51.6 960.6 - 1,533.0 4.6 0.7 5.3 Carrying amounts At 1 April 2010 128.0 894.6 174.8 50.2 2,388.0 66.9 3,702.5 4.7 0.1 4.8 At 31 March 2011 142.0 910.4 157.5 41.0 2,443.3 128.9 3,823.1 5.1 0.0 5.1 At 31 March 2012 170.3 911.6 135.1 35.7 2,445.5 168.7 3,866.9 6.3 0.0 6.3 40 SINGAPORE POWER NOTES TO THE FINANCIAL STATEMENTS 5 Intangible assets (Cont’d) Impairment testing for cash-generating units containing goodwill For the purpose of impairment testing on the cash-generating units (“CGUs”) containing goodwill, goodwill is allocated to the Group’s operating divisions which represent the lowest level within the Group at which the goodwill is monitored for internal management purposes. The aggregate carrying amounts of goodwill being allocated to the respective CGUs in SPI (Australia) Assets Pty Ltd and its subsidiaries (collectively “SPIAA Group”) are as follows: Group 2012 2011 $ million $ million Electricity distribution 319.8 198.1 Gas distribution 656.8 470.3 Gas transmission 1,014.9 955.6 Asset management 438.3 803.7 2,429.8 2,427.7 The SPIAA Group has re-organised its reporting structure, which has changed the composition of the CGUs. Some cash flows previously within the Asset management CGU are now within the electricity distribution, gas distribution and gas transmission CGUs. The reallocation of goodwill has been performed on a relative value approach. The recoverable amounts of the CGUs are the higher of fair value less costs to sell and value in use. The recoverable amounts of the CGUs were determined to be higher than their carrying amounts and hence no impairment is necessary. Management has based its assessment of fair value less costs to sell on discounted future cash flows with the following key assumptions: 1 Cash flow time horizons used in valuing the CGUs were between five years and twenty years. Cash flows were projected using growth assumptions for revenue, operating expenditure and capital expenditure. Management believes that this forecast period is justified due to the long term nature of the CGU’s activities. 2 For regulated assets, the growth assumption is primarily driven by the assumptions in the regulatory building block models with growth being the function of the regulated asset base and the allowable return from the regulators. For non-regulated assets, the growth is largely determined by contractual parameters and the projected Australian Consumer Price Index (“CPI”). Expenditure growth for all assets is largely indexed to the projected annual Australian CPI growth of 3.0% (2011: 2.5%). The annual growth rates applied to the units range from 0% to 3.0% (2011: 0% to 3.0%), which do not exceed the long-term average growth rates for the industry and the country. 3 Cash flows are discounted to their present value using a pre-tax discount rate based on the weighted average cost of capital (WACC). The WACC takes into accounts the average rates of return required by providers of debt and equity capital (weighted to the market) to compensate them for the time value of money and the inherent risk or uncertainty in achieving the cash flow returns for that outlay of capital. Depending on the nature of the assets, the discount rates applied in determining the recoverable amounts of the units range from 8.8% to 10.2% (2011: 9.2% to 10.1%) per annum. ANNUAL REPORT 2011 41 NOTES TO THE FINANCIAL STATEMENTS 5 Intangible assets (Cont’d) Impairment testing for cash-generating units containing goodwill (Cont’d) For Asset management CGU, management has identified that a change in the earnings before interest, tax, depreciation and amortisation (EBITDA) margin assumption is reasonably possible and that such a change may result in the CGU’s carrying amount exceeding its recoverable amount. Based on the impairment assessment performed at the reporting date, the recoverable amount of this CGU exceeds its carrying amount by $32.5 million. However, a four percentage point (4%) reduction in the normalised forecast EBITDA margin would result in the recoverable amount equalling the carrying amount for the CGU. Other significant assumptions made by the Group in assessing the recoverable amount of CGUs include: • Asset management – Growth in contract servicing revenue, EBITDA margin and the discount rate • Electricity and gas distribution – Australian Energy Regulator (AER) regulatory determinations, merits review outcomes and the discount rate • Gas transmission – Pipe expansion capital expenditure, associated contracted cash flow benefits, capacity recontracting and the discount rate Such assumptions can change in the short term, or on occurrence of a significant event, which can have a significant impact on the carrying amount of these CGUs. Impairment testing for intangibles with indefinite useful life (licences) The following CGUs in SP AusNet and SPIAA Group have licences with indefinite useful lives: Group 2012 2011 $ million $ million Electricity distribution 166.8 167.0 Gas distribution 309.6 309.2 Electricity transmission 435.2 434.2 911.6 910.4 Recoverable amount is the higher of fair value less costs to sell and value in use. The recoverable amounts of the CGUs were determined to be higher than their carrying amounts and hence no impairment is necessary. Management has based its assessment of fair value less costs to sell on discounted cash flow projections over a period of 20 years together with an appropriate terminal value incorporating growth rates based on the long term Consumer Price Index assumption of 2.6% (2011: 2.5%). Regulated cash flow forecasts are based on allowable returns on electricity and gas transmission and distribution assets, together with other information included in the CGUs’ 5-year forecast in the relevant market. Cash flows after the 5-year business plan are based on an extrapolation of the forecast, taking into account inflation and expected customer connection growth rates. It is considered appropriate to use cash flows after the 5-year forecast period considering the long-term nature of the units’ activities. 42 SINGAPORE POWER NOTES TO THE FINANCIAL STATEMENTS 5 Intangible assets (Cont’d) Impairment testing for intangibles with indefinite useful life (licences) (Cont’d) Cash flows are discounted using a pre-tax discount rate that reflects current market assessments of the time value of money and risks specific to the assets. The discount rate applied in determining the recoverable amounts of the units range from 8.8% to 9.2% (2011: 9.0% to 9.2%). In addition, recoverable amounts were assessed against appropriate market earnings before interest, tax, depreciation and amortisation multiples and regulated asset base multiples of recent transactions involving similar assets. 6 Subsidiaries Company 2012 2011 $ million $ million Unquoted equity shares, at cost 6,589.3 6,622.6 Impairment losses (21.4) (38.7) Details of significant subsidiaries are as follows: 6,567.9 6,583.9 Place of Effective interest Name of subsidiaries Principal activities incorporation held by the Group 2012 2011 % % SP PowerAssets Limited Transmission and distribution Singapore 100 100 of electricity PowerGas Limited Transmission and distribution Singapore 100 100 of piped gas SP PowerGrid Limited Provision of management Singapore 100 100 services to related corporations SP Services Limited Sale of electricity and provision Singapore 100 100 of customer services relating to utilities supply Singapore Power International Investment holding Singapore 100 100 Pte Ltd and its subsidiaries: - SP Australia Networks Investment holding Australia 51 51 (Transmission) Ltd and its subsidiary: - SP Australia Networks Provision of loans to Australia 51 51 (Finance) Trust related corporations ANNUAL REPORT 2011 43 NOTES TO THE FINANCIAL STATEMENTS 6 Subsidiaries (Cont’d) Place of Effective interest Name of subsidiaries Principal activities incorporation held by the Group 2012 2011 % % - SP Australia Networks (Distribution) Ltd and its subsidiary: Investment holding Australia 51 51 - SPI Australia Group Distribution of electricity and Australia 51 51 Pty Ltd natural gas - SPI (Australia) Assets Pty Investment holding Australia 100 100 Ltd and its subsidiaries: - Jemena Asset Infrastructure services Australia 100 100 Management (6) Pty Ltd - Jemena Electricity Electricity distribution Australia 100 100 Networks (Vic) Ltd - Jemena Gas Gas distribution Australia 100 100 Networks (NSW) Ltd - Jemena Eastern Gas Gas transmission Austr

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Media Release SP GROUP ACQUIRES FIRST SOLAR FARM ASSETS OF 100MWP IN VIETNAM • The two solar farms located in the Phu Yen Province will generate 130 GWh of green electricity annually, amounting to an avoidance of 105,000 tonnes in carbon emissions each year. • This is part of SP Group’s ambition to invest and develop 1.5 Gigawatts (GW) of utility scale and rooftop solar projects in Vietnam by 2025. • The solar assets equip SP Group with the capability to be a one-stop provider of sustainable energy solutions that can meet 100 per cent of clean energy requirements of commercial and industrial (C&I) customers when the Direct Power Purchase Framework is established in Vietnam in the future. Vietnam, March 6, 2023 — SP Group (SP), a leading energy utilities group and sustainable energy solutions provider in Singapore and Asia Pacific, announced today that it acquired 100 Megawattspeak (MWp) of solar power assets in Vietnam. The two solar farms – the Europlast Phu Yen Solar Power Plant (50 MWp) and the Thanh Long Phu Yen Solar Power Plant (50 MWp) in Phu Yen Province, are both located in the south-central coast of Vietnam. The Europlast Phu Yen Solar Power Plant has been in operation since June 2019 and generates 60 Gigawatt-hours (GWh) of clean electricity annually, while the Thanh Long Phu Yen solar farm was established in December 2020 and has been generating 70 GWh of clean electricity annually. The two solar farms will provide a total of 130 GWh of clean electricity to the Vietnam Electricity (EVN) power grid annually and is able to power more than 36,000 households in Vietnam (approximately 28,800 four-room HDB households in Singapore). Combined, both solar farms will help Vietnam to reduce its carbon dioxide emissions by up to 105,000 tonnes annually. Despite global economic uncertainty, SP is confident of Vietnam’s continued long-term development. The deal marks SP’s first investment in solar farm assets in Vietnam and is part of SP Group’s green ambitions in Vietnam to invest and develop 1.5 Gigawatts (GW) of utility scale and rooftop solar projects by 2025. This is aligned with the company’s long-term vision to help Vietnam achieve its sustainability targets of reaching net-zero emissions by 2050. 1 With Vietnam in discussions on a Direct Power Purchase Framework, end-customers may be able to purchase renewable energy directly from solar farms to supply their clean energy demands in the future. SP currently designs, deploys, and operates rooftop solar solutions that generate clean energy to green part of customers’ energy mix. With this acquisition, SP will have the capability and expertise to help customers achieve 100% clean energy consumption when the Direct Power Purchase Framework is in place. This acquisition demonstrates SP’s long-term commitment to be a one-stop provider of sustainable energy services that enables commercial and industrial customers to achieve their net-zero ambitions. Mr. Brandon Chia, Managing Director, Sustainable Energy Solutions (SEA and Australia), SP Group, said, “This acquisition is a key milestone of our long-term ambitions to help Vietnam transition towards a cleaner and economically sustainable future by incorporating more renewable energy for the country. Through our solar power offerings in both rooftop and utility-scale solutions, SP Group will be a one-stop provider to help our Vietnam customers meet their decarbonisation goals. In addition to renewables, we aim to help businesses and cities in Vietnam go green by leveraging our capabilities in proven sustainable energy solutions such as district cooling and our in-house digital energy management tools to optimise energy demand and to increase energy efficiency for commercial buildings, manufacturing facilities and industrial parks.” Since 2021, SP has been developing rooftop solar projects across the country, through several partnerships and joint ventures, accumulating a total of more than 115 MW of rooftop solar assets to date. The ventures include a partnership agreement with CJ OliveNetworks to jointly invest, build, and develop up to 50 MWp of rooftop solar projects across Vietnam over the next two years. SP also inked an agreement to install up to 20 MWp of rooftop solar power at three mega factories for TKG Taekwang Vina – a manufacturing leader in Vietnam. - Ends - 2 About SP Group SP Group is a leading utilities group in the Asia Pacific, empowering the future of energy with lowcarbon, smart energy solutions for its customers. It owns and operates electricity and gas transmission and distribution businesses in Singapore and Australia, as well as sustainable energy solutions in Singapore, China, Thailand and Vietnam. 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 worldwide. Beyond traditional utilities services, SP Group provides a suite of sustainable and renewable energy solutions such as microgrids, cooling and heating systems for business districts and residential townships, solar energy solutions, electric vehicle fast-charging stations and digital energy solutions for customers in Singapore and the region. For more information, please visit spgroup.com.sg or follow us on Facebook at spgrp.sg/facebook, LinkedIn at spgrp.sg/linkedin and Instagram at spgrp.sg/instagram 3

28 June 2013 For Immediate Release MEDIA RELEASE ELECTRICITY TARIFF REVISION FOR THE PERIOD 1 JULY TO 30 SEPTEMBER 2013 1. For the period from 1 Jul to 30 Sep 2013, electricity tariffs will decrease by an average of 2.9%. 2. The tariff reduction is due to lower cost of natural gas used for electricity generation, which fell by 5.1% compared to the previous quarter. 3. The electricity tariff for households will decrease by 2.8% in Q3 2013 from 26.70 to 25.95 cents per kWh. The average monthly electricity bill for families living in fourroom HDB flats will decrease by $3.08 (see Appendix 3 for the average decrease for different household types). 4. SP Services reviews the electricity tariffs quarterly based on guidelines set by the Energy Market Authority (EMA), the electricity industry regulator. The latest tariffs given in Appendix 1 have been approved by the EMA. _______________________________________________________________________________________________________ Issued by: SP Services Limited 10 Pasir Panjang Road #03-01 Mapletree Business City Singapore 117438 Co. Reg No : 199504470N www.spservices.com.sg SP Services Ltd 10 Pasir Panjang Road #03-01 Mapletree Business City Singapore 117438 Tel (65) 6378 8888 www.spservices.com.sg Co. Registration No.: 199504470N Appendix 1 REVISION OF ELECTRICITY TARIFFS FROM 1 JULY 2013 SP Services Ltd 10 Pasir Panjang Road #03-01 Mapletree Business City Singapore 117438 Tel (65) 6378 8888 www.spservices.com.sg Co. Registration No.: 199504470N Appendix 2 BREAKDOWN OF ELECTRICITY TARIFF 1. The electricity tariff consists of the following four components: a) Energy cost (paid to the generation companies): This component is adjusted quarterly to reflect changes in the cost of power generation. b) Network cost (paid to SP PowerAssets): This fee is reviewed annually. c) Market Support Services Fee (paid to SP Services): This fee is reviewed annually. d) Market Administration and Power System Operation Fee (paid to Energy Market Company and Power System Operator): This fee is reviewed annually to recover the costs of operating the electricity wholesale market and power system. Q3 2013 TARIFF Energy Costs 20.68¢/kWh Decreased by 0.75 ¢/kWh Generation Companies Network Costs 5.05¢/kWh MSS Fee 0.17¢/kWh Market Admin & PSO Fee 0.05¢/kWh No Change No Change No Change SP PowerAssets SP Services Power System Operator & Energy Market Company SP Services Ltd 10 Pasir Panjang Road #03-01 Mapletree Business City Singapore 117438 Tel (65) 6378 8888 www.spservices.com.sg Co. Registration No.: 199504470N Appendix 3 AVERAGE DECREASE IN MONTHLY ELECTRICITY BILLS OF DOMESTIC CUSTOMERS (TARIFF REVISION WEF 1 JULY 2013) Types of Premises Average monthly consumption per Customer Average Monthly Bill New Average Bill Average Decrease in Monthly Bill kWh $(a) $(b) $(b-a) % HDB 1 Room 132.21 35.30 34.31 0.99 2.8 HDB 2 Room 189.68 50.64 49.22 1.42 2.8 HDB 3 Room 300.43 80.21 77.96 2.25 2.8 HDB 4 Room 410.23 109.53 106.45 3.08 2.8 HDB 5 Room 479.53 128.03 124.44 3.60 2.8 HDB Executive 577.94 154.31 149.97 4.33 2.8 Apartment 710.03 189.58 184.25 5.33 2.8 Terrace 1,016.80 271.48 263.86 7.63 2.8 Semi-Detached 1,313.17 350.62 340.77 9.85 2.8 Bungalow 2,603.84 695.23 675.70 19.53 2.8 SP Services Ltd 10 Pasir Panjang Road #03-01 Mapletree Business City Singapore 117438 Tel (65) 6378 8888 www.spservices.com.sg Co. Registration No.: 199504470N