SP Group partners BCG Energy on solar project in Vietnam � MON, AUG 02, 2021 - 1:20 PM YONG JUN YUAN �junyuany@sph.com.sg �@JunYuanBT SP Group (SP) and BCG Energy, a wholly-owned subsidiary of Bamboo Capital JSC, have formalised a joint venture (JV) to invest in rooftop solar and other renewable energy projects in Vietnam. In a press statement on Monday, SP said that it will own 49 per cent of the JV, while the wholly-owned subsidiary of Bamboo Capital JSC will own 51 per cent. The JV will have an initial target of 500 megawatts (MW) of rooftop projects by 2025, contributing to Vietnam's target of having 30 per cent of its electricity generated through renewable energy sources by 2030. As part of the JV's rst rooftop solar project, it will work with Vinamilk, Vietnam's largest dairy production company, to install a combined 25MW of rooftop solar power across nine factories and seven farms. The installation will generate 35,000 megawatt-hour of clean electricity annually, enough to power approximately 20,000 households in Vietnam. It also amounts to a reduction of 32,000 tonnes of annual carbon emissions, equivalent to taking approximately 7,000 cars o the road. The JV will also acquire 28MW of operational rooftop solar assets across eight commercial and industrial sites located in South and Central Vietnam. BCG Energy chief executive o cer Tuan Pham noted that Vietnam completed and connected more than 100,000 rooftop systems to its grid and that there is strong growth potential in this market segment in Vietnam as it develops. "We believe this will promote the use of clean energy in manufacturing companies and contribute to the sustainable growth of the economy," he said. SP chief executive o SP as it steps into the Vietnamese market. cer Stanley Huang noted that the partnership is a key milestone for "Our combined expertise and ambition in renewable and sustainable energy solutions will o er customers more options and encourage their transition to clean energy sources," he said. The announcement comes after both sides signed a memorandum of understanding (MOU) in May this year to invest in renewable energy projects in Vietnam. The MOU provided an exclusive right for SP to acquire up to 49 per cent of Skylar Joint Stock Company (Skylar), a subsidiary of BCG Energy which specialises in the development and deployment of solar assets.

Media Release Singapore Polytechnic and SP Group set up idea translation lab to develop ideas into real-world, energy-saving applications Singapore, 3 April 2018 – Imagine a hybrid solar cone that produce more than five times the energy than a conventional solar cell. The cone uses solar-concentrating lenses to maximise energy absorption onto a solar cell. This prototype, called SCONE, is among the first to be produced by ideaBox, an idea translation lab set up by Singapore Polytechnic and SP Group. ideaBox is a platform to turn promising ideas by tertiary students and SP Group employees into sustainable energy applications in everyday life. Singapore Polytechnic students will develop the products as part of their course work and final-year projects. They will also be guided by their faculty and SP Group mentors as they build their experience in areas such as engineering, design and media. SP Group and Singapore Polytechnic will jointly test and validate all products from ideaBox. SP Group will commit $1 million over the next three years, and kickstart a slew of initiatives, such as product development and testing for commercial viability, digital literacy for SP officers and ideation competitions. Mr Wong Kim Yin, Group Chief Executive Officer of SP Group, said, “SP Group is committed to drive research and innovation that benefit consumers, helping them to save energy and cost. We strengthen our collaboration with Singapore Polytechnic by exposing their students to real-world challenges, test out new ideas and build solutions to implement the ideas. ”Partnering SP Group allows our students to work with an innovative organisation to trial and pilot emerging technologies for the fast-changing world. This seeks to pique their interest and empower them to be solution-minded so that they can translate ideas into real-world solutions”, said Mr Soh Wai Wah, Principal and Chief Executive Officer of Singapore Polytechnic. ideaBox will house and develop projects from ideation competitions. In June this year, SP Group will sponsor a national inter-polytechnic ideation competition that is organised by Singapore Polytechnic students. SP Group and Singapore Polytechnic will collaborate to develop and co-design next-gen outdoor cooling units. They will also develop electric vehicle charging units, with a view towards installing charging stations on the campus. SP Group’s bottom-up ideation journey started in 2016 with The Pitch, an intrapreneurship platform for SP Group employees to develop creative solutions. In 2017, SP Group extended the ideation outreach to tertiary students in universities, supporting the NUS-SP Group Varsity Challenge 2017 that comprised of NUS-SP Group Case Competition and Singapore Frontier Challenge. *** About Singapore Polytechnic (www.sp.edu.sg) Established in 1954, Singapore Polytechnic (SP) is Singapore’s first polytechnic. It has 10 schools that offer 46 full-time courses for close to 16,000 students. SP adopts a proven creative teaching and learning framework and offers students a holistic, authentic and industry-relevant curriculum, innovative and vibrant learning spaces, and enriching overseas programmes. The Polytechnic is committed to producing competent and versatile graduates who are also imbued with sound values, so that they can be work ready, life ready and worldready. SP has more than 195,000 graduates and among them are successful entrepreneurs, top executives in multi-national and public-listed corporations, and wellknown professionals across various industries and leaders in government. SP clinched the inaugural ASEAN People’s Award in 2015 for its contributions toward the region’s community-building efforts. SP is also the first polytechnic to be awarded the President’s Award for the Environment in 2010 and the President's Social Service Award in 2011. Follow SP on Facebook at http://www.facebook.com/singaporepolytechnic and Twitter and Instagram at @singaporepoly. About SP Group SP Group is a leading energy utilities group in the Asia Pacific. It owns and operates electricity and gas transmission and distribution businesses in Singapore and Australia, and district cooling businesses in Singapore and China. SP Group is committed to providing customers with reliable and efficient energy utilities services. More than 1.4 million industrial, commercial and residential customers in Singapore benefit from SP Group’s world-class transmission, distribution and market support services. These networks are amongst the most reliable and cost-effective world-wide. For more information, please visit spgroup.com.sg or follow us on Facebook at fb.com/SPGroupSG. Annex 1 Key Projects Featured 1) Scone Project Brief Scone aims to increase renewable energy generation in Singapore significantly using a solar cone. The solar cone is a hybrid that uses solar cone and solar-concentrating lenses to maximise energy absorption onto a solar cell. This cone promises to produce more than five times the energy than a conventional solar panel. It is essentially a higher efficiency concentrator photovoltaic that aims to harness more energy per unit area. Utilising solar technology, a heat exchanger and a cone structure, the cone generates both solar and thermal energy. There is intention to implement the solar cone at the rooftop of residential units as it allows excess heat to be converted to heated water for residential usage. This technology taps on expertise from district cooling. Benefits to customers As it is expected to generate more than five times solar energy as compared to a conventional solar panel, customers using this technology can offset their consumption, thus leading to a lower utilities bill. 2) Cloud Nine Project Brief This project uses the collection of rainwater at the top of high-rise buildings to harvest gravitational potential energy as it falls from the top of the building to the ground. This is especially relevant in Singapore with a large population of tall buildings. By retrofitting these buildings with the team’s proposed mechanism – channelling the rainwater collected on rooftops down the buildings – it will generate energy through the process for storage and subsequent usage. Benefits to customers It uses the energy generated by falling rainwater as an alternate source of renewable energy generation besides solar and wind. It is suitable for countries that face land constraint like Singapore. The use of gravitational force and turbine increases the efficiency to harvest usable energy that can power up a 12-Watt LED light bulb for 21,150 hours. This could potentially translate into cost savings to residents, building management and Town Councils, possibly resulting in lower maintenance fee in the long-term. *** 3) Savez Project Brief Savez’s product is solar cell that mimics photosynthesis for organic, highly sustainable, and versatile energy use. Benefits to customers This product is sustainable, scalable and organic. It is also cost-efficient to produce. *** 4) GreenLoco Project Brief This idea is to use human movement to self-generate electricity. It focuses on crowdsourcing energy, merging piezoelectric technology, wireless power transmission as well as Singapore’s high population density. Benefits to customers This product allows customers to self-generate electricity and raise awareness of energy issues, allowing Singaporeans to contribute to the main grid. *** 5) RoadX   Project Brief RoadX is a power generation and transmission solution for Singapore’s roadways. It combines the use of solar panelled, piezo-electric charging roads and roadside wind turbines with dynamic wireless charging through induction for electric vehicles. The plan to vary the usage of each component to suit local traffic conditions of roads. Benefits to customers RoadX aims to help customers reduce carbon emission and fossil fuel dependency. It also seeks to maximise Singapore’s limited land for green energy generation and encourage the uptake of electric vehicles in Singapore. Annex 2 Key Terms in Chinese

Consumption_Elect Average consumption of Electricity (kWh) Premises Types Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 HDB 1-Room 147 145 143 146 144 135 126 126 132 150 152 149 140 151 148 139 142 128 127 121 119 128 136 150 HDB 2-Room 190 190 189 190 188 176 164 167 173 199 199 195 183 198 192 183 186 166 168 161 156 169 181 195 HDB 3-Room 271 272 269 274 269 247 236 241 250 292 285 277 264 283 277 266 266 243 238 231 231 250 265 284 HDB 4-Room 371 371 367 374 370 342 321 330 342 398 396 383 360 385 381 363 365 338 327 320 309 341 363 390 HDB 5-Room 437 434 427 437 436 401 367 381 399 463 466 448 416 447 446 427 429 397 379 374 359 399 425 457 HDB Executive 531 536 528 541 530 478 456 474 489 575 568 544 515 546 548 520 523 481 462 458 445 495 522 562 Apartment 546 514 515 537 541 483 430 435 486 578 573 543 500 513 539 523 519 486 446 419 417 476 516 548 Terrace 868 866 859 890 881 804 740 794 821 957 900 872 838 847 885 851 851 785 747 744 714 775 823 881 Semi-Detached 1,159 1,134 1,150 1,187 1,174 1,065 1,019 1,038 1,109 1,254 1,224 1,170 1,128 1,126 1,168 1,137 1,141 1,056 1,000 974 960 1,031 1,080 1,173 Bungalow 2,320 2,219 2,298 2,308 2,358 2,075 2,106 1,951 2,146 2,432 2,360 2,266 2,220 2,121 2,347 2,192 2,190 2,012 2,004 1,872 1,904 2,016 2,154 2,244

Consumption_Water Average consumption of Water (CuM) Premises Types Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 HDB 1-Room 7.8 7.8 8.0 8.3 8.4 8.1 7.7 7.5 8.1 8.3 7.9 8.1 HDB 2-Room 9.3 9.3 9.3 9.7 10.0 9.5 8.7 8.7 9.4 9.5 9.2 9.3 HDB 3-Room 12.0 12.0 12.2 12.8 12.9 12.0 11.5 11.6 12.4 12.5 12.2 12.2 HDB 4-Room 15.1 15.0 15.5 16.2 16.3 15.3 14.7 14.6 15.6 15.7 15.3 15.5 HDB 5-Room 16.4 16.1 16.7 17.8 17.7 16.7 16.0 15.6 16.9 17.1 16.7 17.0 HDB Executive 18.1 18.1 18.8 19.9 19.7 18.6 17.7 17.7 18.8 19.1 18.5 18.8 Apartment 13.1 12.8 13.1 14.4 14.3 13.2 12.7 12.5 13.1 13.8 13.8 13.8 Terrace 25.2 24.3 25.8 28.0 28.4 24.2 24.1 24.7 25.7 26.7 25.9 26.2 Semi-Detached 30.4 30.0 30.7 34.9 34.6 30.2 28.3 30.0 31.5 33.4 31.4 32.2 Bungalow 48.6 49.4 46.3 59.5 58.1 50.4 42.1 49.6 48.1 54.7 52.4 52.4

SP Energy HubAnnual ReportReliabilitySustainabilityInnovation Protecting Our Underground Network RELIABILITY Principal Engineer James Ou and his team conduct checks on worksites to ensure electricity cables and gas pipes are not compromised. When a patrol officer from SP Group’s Earthworks Surveillance & Patrolling (ESP) section pulled up at a Whampoa West construction worksite in November last year, what he did not expect to find was an excavated trench right over one of SP’s 230kV transmission cables – and a water pipe laid above it. The checks by ESP had uncovered the non-compliance of a contractor who was not following the approved plans they submitted to SP previously. Beyond the works themselves, leaks, condensation or breaks in the water pipe could pose a threat to the high voltage electricity cable below, and cause a power outage. SP’s critical electricity cables and gas pipes – networks spanning 11,500km and over 28,000km respectively – are buried underground. At the same time, across Singapore, there are always ongoing works for various construction projects. “That is why we carefully manage and monitor all excavation works – it minimises the risk of an electricity disruption or a gas leak,” explained Principal Engineer, James Ou, who heads ESP and oversees a team of almost 60. Detect and protect: Technical officer Mohamed Saiful Matsaid (left) uses a cable locator to detect electricity cables hidden underground as Principal Engineer James Ou (right) marks out the path of the cable. Mr Ou, who is 36 and studied electrical engineering, joined SP in 2008. He worked in electricity operations and maintenance before assuming his current role in November 2017. Now, he prevents problems instead of fixing them. In the case mentioned, the contractor of another organisation had conducted unauthorised work. Timely intervention averted damage, but the site’s Registered Excavator Operator was still suspended from excavation work for three months. The Energy Market Authority also took action against the contractor. Damage control: When contractors do not comply with requirements, Earthworks Surveillance and Patrol officers will issue a “stop-work” order. The incident highlights the critical role SP’s compliance officers play in keeping Singapore’s electricity and gas supply humming – especially against its booming construction landscape. Despite the acronym, the ESP team doesn’t rely on a sixth sense to warn them of danger. Instead they enforce stringent requirements, as well as rigorous and frequent checks on every worksite. 15 patrol officers in the team of close to 60 Earthworks Surveillance and Patrol Officers cover a total distance of 360,000km – or nine trips around the earth – each year. That’s an average of 135 worksites a single patroller visits each month, said Mr Ou. Checks are frequent – for sites close to gas pipes, checks are conducted daily. For transmission cables over 66kV, checks are conducted three times a week. There are many bases to cover. All contractors need to submit a notice of commencement of earthworks (NCE) seven days before they are scheduled to begin. They are also briefed on precautions and mitigation measures onsite by ESP officers. SP is also consulted on high-risk earthwork sites to ensure nothing is missed. This minimises the risk of damage.   During site meetings conducted by ESP officers, all requirements are covered, and SP patrollers ensure they are followed. Senior officers like Mr Ou will also join patrols or attend briefings to ensure contractors get clear and complete guidance. Part of the team: SP Earthworks Surveillance and Patrol officers join site briefings and guide contractors and workmen on how to best to protect critical cables and underground pipes during works. Most contractors do take compliance seriously, says Mr Ou. “Sometimes, it is subcontractors that just don’t know the procedures, or shift the location of their work, and it poses a risk,” he said. The team’s diligent checks and contractors’ compliance with regulations minimises that risk. This protects both our critical infrastructure and the workers at these sites. Getting the job done right requires a “high-trust” environment, and the same openness and teamwork demanded by sports, says Mr Ou, who plays football in an amateur league on weekends. He also conducts monthly huddles with his team, and encourages all officers regardless of rank to speak freely if they have suggestions or spot anything amiss. “I recognise it is important to have each other’s back when working on something critical, and to come together as a team. “Everyone has a part to play and can add value.” — 11 July 2019 TAGS PEOPLE OF SPRELIABILITY YOU MIGHT BE INTERESTED TO READ How this 'grid doctor' maintains the health of Singapore's electricity network so everything stays on Ground feedback, digital tools: How she helps 8,000 workers end their day safely Faster repairs, fewer disruptions: Meet the innovative teams using smart tech to keep your piped gas supply flowing

A6 TOPOF THENEWS | THE STRAITS TIMES | WEDNESDAY, DECEMBER 20, 2017 | Singapore’s deepest tunnel system The Underground Transmission Cable Tunnel Project will safeguard Singapore’s electricity supply network for the future. It will begin operations by the end of next year. ST illustrates the key points of this $2.4 billion engineering feat. UNDERGROUND TUNNELS 3m Sewage and current power grids 12m Underpass and malls Robots on the lookout for water leaks and fires 1.7m 6m Automatic inspection vehicle 60m SP Group electricity cable tunnels 8-25m Underground expressways 30m MRT tunnels 20-55m Deep tunnel sewerage system 60m Height of a 20-storey HDB block WHERE THE NEW TUNNELS LIE Existing power circuits to be renewed Gambas Woodlands Avenue 8 Ayer Rajah Senoko Cable renewal routes Kallang Basin Tampines Paya Lebar 400kV substation Automatic inspection vehicles will be traversing the length of the 40km tunnels Jose Hong Singapore’s new electricity supply tunnels have the latest high-tech sensors to detect water seepage, fires and infiltration that could harm the electricity network. Robots, or automatic inspection vehicles (AIVs), traversing the length of the 40km tunnels, will look out for changes in the colour of the concrete walls, a warning sign for water leaks. Mr Michael Chin, managing director of infrastructure and projects at energy utility company SP Group, said yesterday that water leaks are the most common problem in tunnels, and AIVs can detect concrete patches that suddenly turn a different colour. He said the AIVs will also eventually be able to detect fires using infrared cameras. Each of the three tunnels also has a firefighting system that uses a superior “water mist system”, instead of sprinklers, said Mr Chin. He explained that the system shoots very fine water mist which evaporates faster and removes heat quickly from fire. The water mist also displaces air and suffocates the flames. Smoke particles will dissolve into the fine water droplets and sink, leaving a fine mist and making it safe for firefighters to enter the tunnel to put out the fire, said Mr Chin. The system also sends an alarm signal to the Singapore Civil Defence Force. Another set of sensors in the tunnels can detect pollutants and abnormal concentrations of gases. Most parts of the multibillion-dollar Underground Transmission Cable Tunnel Project are about 60m beneath the earth, but some will be at 80m, making the electricity project one of the world’s deepest. The tunnels – named the North-South, East-West and Jurong Island-Pioneer tunnels – will be able to house 1,200km of extra-high-voltage cables. Singaporeans will begin tapping this source from next year, said SP Group yesterday. About 500km of cables will be laid, which is less than half the capacity of the tunnels. There will be 17 equipment buildings spanning the 40km network, and each of them will have two electric bicycles to allow staff to quickly move to parts of the tunnels that require attention. Mr Chin said that anyone trying to enter the tunnels will need to break through three layers of security at the equipment buildings. “All these systems protect the cables and the people working in the tunnel and so, in the long run, maintain the reliability of the system,” he said. josehong@sph.com.sg SCAN TO WATCH A walk through the underground tunnels. http://str.sg/ tunnels West Jurong Island 400kV substation Ayer Rajah 400kV substation Rangoon 400kV substation FACTS AND FIGURES 3 21 tunnels shafts long 60-80m deep 40km tunnel High-tech protection There are only 17 entry points to the tunnel, and each of them has three levels of security and surveillance cameras. The tunnels also have systems that protect against fire and water seepage. Long-term planning There is space to lay 1,200km of cables in the tunnels – more than thrice the distance between Singapore and Kuala Lumpur. However, by 2022, SP Group will lay only around 500km of cables, leaving plenty of space for expansion. Long-lasting supply The tunnels are built to last 120 years. This refers to the concrete segments and the structural reinforcements. Source: SP GROUP PHOTOS: ZAOBAO, HDB STRAITS TIMES GRAPHICS A prototype of the automatic inspection vehicle that will be used to detect water seepage and fires in the tunnel system. PHOTO: LIANHE ZAOBAO Tunnel system replaces ageing network of the 1980s Eight circuits of the power cable network, which were built in the 1980s, will soon become too old to maintain and will be left in place while being gradually replaced with the new tunnel system. These cables were installed just below roads, and repairs and replacement work would cause traffic jams and increase the risk of accidents – problems that the new underground tunnel network will avoid, said SP Group managing director of infrastructure and projects Michael Chin. He added that the existing cables are so old that they need to be inspected once every three months, which adds to maintenance costs. Singapore’s land scarcity means that SP Group had “no choice” but to build the tunnel system 60m below ground, said Mr Chin. He said that the 60m-deep tunnels mean that cable checks will not disrupt ground-level life. Reflecting long-term planning, Mr Chin said the 40km tunnel project is designed to last 120 years. This refers to the concrete segments and the structural reinforcements. However, he said that there is no knowing what will happen once the system ends. “I will not be around and you will not be around,” he chuckled, adding that Singapore could end up with a completely different system of transmitting electricity. Jose Hong

Our Core, Our Future ANNUAL REPORT 2005 Singapore Power Annual Report 2005 1 Contents Chairman’s Statement 7 Board of Directors 10 Corporate Governance 14 Senior Management 18 Corporate Highlights 20 Group Financial Highlights 23 Operational Review 25 • Singapore Power At Home 25 – SP PowerGrid 27 – PowerGas 37 – SP Services 45 • Singapore Power Overseas 51 – SP AusNet 53 – Asia 59 Our People, Our Community 61 2 Singapore Power Annual Report 2005 Our Mission We provide reliable and efficient energy utility services to enhance the economy and the quality of life. Our Values Commitment We commit to creating value for our customers, our people and our shareholders. We uphold the highest standards of service and performance. Integrity We act with honesty. We practise the highest ethical standards. Passion We take pride and ownership in what we do. Teamwork We support, respect and trust each other. We continually learn, and share ideas and knowledge. Singapore Power Annual Report 2005 3 Our Core, Our Future “ Growth, new challenges and adaptability are symbolised in this ceramic wall mural (facing page). The pillars depict the strength which is gained from unity, while the concentric configurations, made up of separate pieces, represent the role that each person has to play in contributing to the whole. Like the individuals who make up the organisation, each piece is unique. ” By Mural Artist Hasan Zolkifly Rahim 4 Singapore Power Annual Report 2005 Wall mural of stoneware with gold ash glaze at Singapore Power Building Singapore Power Annual Report 2005 5 Building on our strengths, we continued to achieve significant progress on many fronts during FY2005. It was a very successful year — SP AusNet was simultaneously listed in Australia and Singapore; network performance improved, maintaining world-class standards; continued investments were made to enhance and expand our electricity and gas networks; partnerships with customers were deepened; and new service initiatives launched. 6 Singapore Power Annual Report 2005 Chairman’s Statement Our Core, Our Future We celebrated our 10th Anniversary during the year under review. It was a significant milestone for all of us at Singapore Power (SP), marking a decade of changes, challenges, and achievements. In the relatively short span of 10 years, we have seen the liberalisation of the electricity industry in Singapore and the transformation of the market to one that is based on competition. The restructuring of the industry and the new rules of a competitive electricity market have had a profound impact on the nature and structure of our business and organisation. We can be justifiably proud of our achievements and our evolution in the liberalised electricity sector. We have done this by strengthening and deepening our core capabilities and expertise to enhance our standing and performance. Today, we are the sole electricity and gas transmission and distribution company in Singapore. Our Australian subsidiary, SP AusNet, owns the sole electricity transmission network and one of the electricity and gas distribution networks in Victoria. We also provide integrated utilities support services for electricity, gas, water and refuse collection in Singapore. And we have maintained our good credit ratings of “AA” from Standard & Poor’s and “Aa1” from Moody’s. Building on our strengths, we continued to achieve significant progress on many fronts during FY2005. FINANCIAL PERFORMANCE For the financial year ended 31 March 2006, SP Group reported a proforma net profit of $726 million, excluding exceptional and nonrecurring items, up 6% from a year ago. Total revenue rose 17.1% to $4.84 billion. Total assets stood at $18.7 billion. Currently, the Group has close to 3,800 staff. SP AUSNET LISTING A SUCCESS A major corporate highlight was the successful simultaneous listing of SP AusNet on the Australian and Singapore stock exchanges. The Initial Public Offering was greeted by enthusiastic response and support from investors in Australia, Singapore, United States and Europe. BIG GAINS IN ELECTRICITY NETWORK PERFORMANCE In Singapore, our network performance achieved considerable improvements, reflecting our commitment to maintaining a world-class power network. There was a shorter system average interruption time; fewer supply interruptions; and lower interruption frequency as well as interruption duration indices. Singapore Power Annual Report 2005 7 Chairman’s Statement Meanwhile, feedback from our second annual customer survey showed better customer satisfaction than that of the first survey in 2004. CONTINUING INVESTMENTS AND EXPANSION Without letting up, we continued to push ahead with investments in our electricity infrastructure to ensure an efficient and reliable delivery of quality power into the future. We also increased the capacity of our natural gas transmission network and expanded the reach of our natural gas and town gas distribution. Priming ourselves for increasing opportunities beyond Singapore, we launched a new initiative called SP Global Solutions (SPGS). It will leverage upon the Group’s core competencies and intellectual property to provide management consultancy to overseas utilities as a means to enter into new markets and seize new expansion opportunities. The natural gas projects could potentially see up to 15,000 properties having access to natural gas for the first time while the transmission network augmentation projects are intended to support and meet load growth in Victoria’s metropolitan and regional areas. DEEPENING PARTNERSHIP WITH CUSTOMERS We are also deepening our relationship with customers in Singapore, working in close partnership with individual companies as well as industry sectors. A high-level Power Quality Advisory Panel, which includes chief executives from industry as members, was formed to address power quality issues at a macro and strategic level. At the industry level, the Electronics & Semiconductor Power Quality Interest Group was inaugurated. Interest groups for the Pharmaceutical and the Chemical & Petrochemical sectors will be launched in the coming year. In Victoria, Australia, SP AusNet further entrenched itself as a leader in electricity transmission and electricity and gas distribution. This follows its success in securing a natural gas extension programme to supply natural gas to a dozen regional towns, in tendering for two major transmission network augmentation projects, and the further expansion and development of its electricity transmission and distribution networks. NEW SERVICE INITIATIVES We continued to move towards improving customer services. A Pay-As-You-Use (PAYU) metering scheme was successfully launched, enabling customers whose utility payments are in arrears to better manage their consumption while discharging their outstanding bills over a period of time. 8 Singapore Power Annual Report 2005 We also made it even easier and more convenient for customers to pay their utility bills by expanding the channels to include the island-wide 7-Eleven convenience store chain. Customers can now pay their utility bills at any 7-Eleven convenience store, at any time — day or night — using cash, NETS or CashCard. A new common utility enquiry hotline was also introduced for the convenience of customers. An independent “mystery” audit last year found that overall service level improved from 77% to 85% over a 12-month period. A Customer Satisfaction Survey reinforced this finding, with results showing that 83% of customers were satisfied with our services. SERVING THE COMMUNITY We have always strived to be a part of the community in which we operate, contributing to charities and worthwhile causes. We are happy that we were able to commemorate our 10th Anniversary Celebrations with the launch of the Singapore Power Heartware Fund. We have raised more than $1 million so far to support Home Help Service programmes administered by the Community Chest. We are committed to raising $1 million a year for three years. My fellow members on the SP Board of Directors have faithfully and diligently carried out their duties, and have been unstinting in their valuable counsel. I would like to extend my deep appreciation to Ms Engeline Teh Guek Ngor who retired from the Board in July 2005. Our achievements in FY2005 were also made possible because of the dedication and commitment of our staff, all of whom can be proud of their role and position in the organisation and its success. The Union of Power and Gas Employees (UPAGE) has been highly effective in representing our staff through their responsible dialogue and partnership with Management to further improve employee relations for the benefit of all. We are also fortunate to have customers and business partners who are willing and responsive in working closely with us. I look forward to your continued support as Singapore Power builds on its core competencies to secure its future. LAST BUT NOT LEAST It has, indeed, been a very busy year for the SP Group, and a very fruitful one too. It is with great pleasure that I acknowledge and thank all those who have been a part of it. NG KEE CHOE Chairman Singapore Power Annual Report 2005 9 Board of Directors MR NG KEE CHOE, CHAIRMAN Mr Ng Kee Choe, 61, is the non-executive Chairman of Singapore Power Limited. He was appointed Director on 1 September 2000 and became its Chairman on 15 September 2000. He is also the nonexecutive Chairman of SP AusNet*. Mr Ng’s other current board directorships include his position as Chairman of NTUC Income Insurance Cooperative Ltd, and Director of Singapore Airport Terminal Services Ltd and Singapore Exchange Limited. He is also the President Commissioner of PT Bank Danamon Tbk of Indonesia, a member of the Temasek Advisory Panel and a member of the Advisory Council of China Development Bank. For his contributions to public service, Mr Ng was awarded the Public Service Star Award in 2001. MR TAN GUONG CHING Mr Tan Guong Ching, 59, is a nonexecutive independent Director of Singapore Power Limited. He was appointed Director on 1 June 2000. He is the Chairman of various companies, including SP PowerGrid Limited, Singapore Technologies Aerospace Ltd, Singapore Technologies Telemedia Pte Ltd, STT Communications Ltd and StarHub Ltd. He is also a Director of Allco (Singapore) Limited and Singapore Pools (Private) Limited. Mr Tan was formerly the Permanent Secretary for the Ministry of Home Affairs. 10 Singapore Power Annual Report 2005 MR ALAN CHAN HENG LOON Mr Alan Chan Heng Loon, 53, is a non-executive independent Director of Singapore Power Limited. He was appointed Director on 1 June 2001 and is also the Chairman of SP PowerAssets Limited. Mr Chan is currently the Chief Executive Officer and a Director of Singapore Press Holdings Ltd. He is the Chairman of Urban Redevelopment Authority and is a member of the External Review Panel (Quality Assurance Framework for Universities), the Board of Trustees, Courage Fund, Board of Governors of The Singapore-China Foundation, INSEAD Singapore Council and INSEAD France. Previously, Mr Chan was the Permanent Secretary for the Ministry of Transport and held directorships in DBS Group Holdings Ltd, The Development Bank of Singapore Ltd and PSA Corporation Ltd. He is currently on the boards of MediaCorp TV Holdings Pte Ltd, MediaCorp Press Ltd, Singapore Press Holdings Foundation Limited and TOM Outdoor Media Group Limited. MR ERIC GWEE TECK HAI Mr Eric Gwee Teck Hai, 67, is a nonexecutive independent Director of Singapore Power Limited. He was appointed Director on 1 January 2001. He is the Chairman of SP Services Limited and a Director of SP AusNet*. Mr Gwee is also a Director of WorleyParsons Ltd and the Melbourne Business School Ltd. In addition, he is the Chairman of the Board of Governors for the Institute of Technical Education (ITE) and ITE Holding Pte Ltd. Mr Gwee was the Chairman of the Public Transport Council from 1989 to 2005. He was also the Chairman of CPG Corporation Pte Ltd and was a Director of ExxonMobil Singapore Pte Ltd till 2001. For his many years of dedicated service to the community, Mr Gwee was awarded the Public Service Star in 1994 and the Public Service Star (Bar)[BBM(L)] in 2004. DR GEORGE ALLISTER LEFROY Dr George Allister Lefroy, 66, is a non-executive independent Director of Singapore Power Limited. He was appointed Director of Singapore Power Limited on 1 June 2000. He is also a Director of SP AusNet* and Cobar Consolidated Resources Ltd, as well as the President/Commissioner of PT Chandra Asri. Dr Lefroy is the Chairman of the Cambridge Australian Trust, Victorian Committee and a State Councillor of St John Ambulance Australia (Victoria) Pty Ltd. He also founded the Bruce Lefroy Centre for Genetic Health Research. Dr Lefroy was formerly the Executive Vice-President of Shell Chemicals Ltd and held directorships in Shell Eastern Petroleum Ltd, Petrochemical Corporation of Singapore Pte Ltd, Basell Eastern Pte Ltd and Saudi Petrochemical Company Ltd. Singapore Power Annual Report 2005 11 Board of Directors MR KEITH TAY AH KEE Mr Keith Tay Ah Kee, 62, is a nonexecutive independent Director of Singapore Power Limited. He joined the Board on 1 January 2002. He currently serves on the boards of several public companies, including Singapore Reinsurance Corporation Ltd, Singapore Post Limited and Stirling Coleman Capital Limited, of which he is Chairman. He is also the Chairman of Aviva Ltd. Mr Tay is currently a board member of the Singapore International Chamber of Commerce, of which he was Chairman from 1995 to 1997. He is also Vice Chairman of the Singapore Institute of Directors. He was the President of the Institute of Certified Public Accountants of Singapore from 1982 to 1992 and was the Singapore Representative on the Council of the International Federation of Accountants from 1987 to 1990. Mr Tay was also Chairman and Managing Partner of KPMG Peat Marwick from 1984 to 1993. MR HO TIAN YEE Mr Ho Tian Yee, 54, is a non-executive independent Director of Singapore Power Limited. He joined the Board on 1 May 2003. Currently, Mr Ho is the Executive Director of Pacific Asset Management (S) Pte Ltd and holds directorships in publicly-listed companies, including Fraser & Neave Ltd, Singapore Exchange Limited and Great Eastern Holdings Ltd. He also sits on the boards of non-listed companies — The Overseas Assurance Corporation Ltd, Times Publishing Ltd and The Great Eastern Life Assurance Company Ltd. Mr Ho was awarded the Public Service Medal in 1997. Mr Tay qualified as a Chartered Accountant in London, UK, in 1968, and is a Fellow of the Institute of Chartered Accountants in England and Wales. He was conferred the first International Award for outstanding contribution to the profession by the Institute of Chartered Accountants in England and Wales in 1988 and the BBM Public Service Star in 1990. The Institute of Certified Public Accountants of Singapore also conferred on Mr Tay the Gold Medal for distinguished service to the profession and made him an Honorary Fellow in 1993. 12 Singapore Power Annual Report 2005 MR TAN CHEE MENG Mr Tan Chee Meng, 49, is a nonexecutive independent Director of Singapore Power Limited. He was appointed Director on 1 August 2005. He is also a Director of SP PowerAssets Limited. Currently, he is the Managing Partner of Harry Elias Partnership and was appointed a Senior Counsel in 2006. Mr Tan is a member of the Singapore Institute of Arbitrators and an Accredited Adjudicator of the Singapore Mediation Centre. He is also on the Panel of Accredited Arbitrators of the Singapore International Arbitration Centre, and of Badan Arbitrase Nasional Indonesia. MR BOBBY CHIN YOKE CHOONG Mr Bobby Chin Yoke Choong, 54, is a non-executive independent Director of Singapore Power Limited. He was appointed Director on 23 January 2006. Currently, he is the Chairman of Singapore Totalisator Board and Changi Airports International Pte Ltd. Mr Chin serves on the boards of the Competition Commission of Singapore and several publicly-listed companies including Oversea-Chinese Banking Corporation Limited, AV Jennings Limited, The Straits Trading Company Limited, Yeo Hiap Seng Limited and Stamford Land Corporation Ltd. He also sits on the Boards of Trustees of the Singapore Management University and the Singapore Indian Development Association (SINDA). He was the Managing Partner of KPMG Singapore from 1992 to 2005 and Chairman of Urban Redevelopment Authority from April 2001 to March 2006. In 2003, Mr Chin was awarded the Public Service Medal. MR QUEK POH HUAT Mr Quek Poh Huat, 59, is the Group Chief Executive Officer and a Director of Singapore Power Limited. Within the Singapore Power Group, Mr Quek serves as Director on the boards of SP PowerAssets Limited, SP PowerGrid Limited and SP Services Limited. He is the Chairman and a Director of PowerGas Limited and SPI Management Services Pty Ltd. Mr Quek is also a Director of SP AusNet*. He is a board director of publicly-listed Singapore Technologies Engineering Ltd. Mr Quek is Singapore’s non-resident Ambassador to Sweden. He was awarded the Public Service Star Award in 1994. Information as at 15 June 2006 * A stapled group comprising SP Australia Networks (Transmission) Ltd, SP Australia Networks (Distribution) Ltd and SP Australia Networks (Finance) Trust, acting through its responsible entity, SP Australia Networks (RE) Ltd. It is dual-listed on the Australian Stock Exchange and the Singapore Exchange Securities Trading Limited. Singapore Power Annual Report 2005 13 Corporate Governance Ethics and Accountability The SP Board is committed to good corporate governance. The principles set out in the revised Code of Corporate Governance 2005 (the Code) for listed companies are followed closely by SP although it is not required to do so. SP has used the Code as its guide and has put in place an internal framework to ensure good corporate governance in its business practices and activities. The Whistleblower Policy, which was launched during the financial year, strengthens ethical business conduct in the Group. SP endeavours to enhance shareholder value by ensuring the highest standards of corporate governance and accountability. SETTING DIRECTIONS The Board provides broad strategic directions for the Group and undertakes key investment and funding decisions. In addition, the Board ensures that Management maintains a sound system of internal controls to protect the Group’s assets, and reviews the Group’s financial performance. The Board meets at least four times a year to review the Group’s business performance. In the last financial year, the Board met seven times and held a Board retreat. Newly-appointed Board Directors attend an orientation programme to familiarise themselves with the Group’s business and governance practices. The Group also provides on-going education on Board processes and best practices. ACCESS TO INFORMATION The Board is provided with complete information prior to Board meetings and on an on-going basis. Board papers include management financial reports, annual budgets and performance against budget, announcement of results, matters requiring Board’s decision, updates on key outstanding issues and disclosure documents as well as updates on new legislative developments. The Board also has separate and independent access to Senior Management and the Company Secretary. The Company Secretary ensures that Board procedures are observed and that the Company complies with the requirements of the Companies Act and other applicable regulations. Should the Directors, whether as a group or individually, require independent professional advice to carry out their duties, the Company will arrange to appoint, at the Company’s expense, a professional advisor to render advice. 14 Singapore Power Annual Report 2005 ACCOUNTABILITY In presenting the annual financial statements to the shareholder, the Board aims to provide the shareholder with a balanced and comprehensive assessment of the Group’s position and prospects. Management currently provides the Board with appropriately detailed management accounts of the Group’s performance, position and prospects on a monthly basis. There is a strong element of independence in the Board composition — independent nonexecutive Directors constitute more than threequarters of the entire Board. The independence of each Director is reviewed annually by a Nominating Committee in accordance with the Code of Corporate Governance. The current size of 10 Board members is appropriate for effective decision-making, taking into account the scope and nature of the Group’s operations. Collectively, the Directors possess a wealth of expertise and experience in the management of business at senior and international levels. BOARD COMMITTEES The Board is supported by specialised committees to facilitate effective supervision of Management. These are the Audit Committee, the Risk Management Committee, the Finance Committee, the Nominating Committee and the Staff Development and Compensation Committee. Audit Committee The Audit Committee (AC) comprises three non-executive Directors, all of whom are independent Directors as defined in the Code. The Board is of the view that the members of the AC have the financial management expertise and experience to discharge the AC’s responsibilities. The members are: Mr Keith Tay Ah Kee (Chairman) Mr Tan Chee Meng Mr Timothy Chia Chee Ming (co-opted external member) The main function of the AC is to assist the Board in discharging its statutory and oversight responsibilities relating to the financial reporting and audit processes; the systems of internal controls; and the process of monitoring compliance with the applicable laws, regulations and codes of conduct. The AC holds at least three meetings each year and is responsible for the following: • review and approval of the audit plans of external and internal auditors; • review of the adequacy of the internal audit function; • review of the financial accounts of the Group and the Company; • review of the independence and objectivity of the external auditors; and • nomination of external auditors for re-appointment. Singapore Power Annual Report 2005 15 Corporate Governance Risk Management Committee The Risk Management Committee (RMC) assists the Board in fulfilling its risk oversight responsibilities. The members are: Mr Ho Tian Yee (Chairman) Mr Tan Guong Ching Mrs Oon Kum Loon (co-opted external member) The RMC reviews and approves: • the type and level of business risks (risk appetite) that the Company, its subsidiaries and associated companies undertake on an integrated basis to achieve their business strategy; and • the Group-wide risk policies, procedures and methodologies for identifying, measuring, monitoring and managing risks that are consistent with its risk appetite. The RMC meets at least three times a year. The RMC is supported by the Group Risk Management Unit in its oversight of SP Group risks. Although the risk management responsibilities of the Board are executed through the organisational set-up mentioned above, the ultimate risk ownership rests with the business groups. Finance Committee The responsibilities of the Finance Committee are to: • consider and recommend, for SP Board’s approval, SP Group’s annual operating and capital expenditure budgets and business plans; • consider and approve SP Group’s mergers, acquisitions, divestments or corporate financial restructuring; • consider and approve or endorse, as the case may be, SP Group’s borrowings and financings; and • consider and approve or endorse such other matters as provided from time to time in the Authority Manual of SP Board. The Committee holds at least two meetings a year. The members are: Mr Ng Kee Choe (Chairman)* Mr Ho Tian Yee Mr Eric Gwee Teck Hai Mr Quek Poh Huat* * Non-independent Nominating Committee The Nominating Committee (NC) is responsible for formulating policies and guidelines on matters relating to Board appointments and re-appointments. The Directors’ performance, contribution and independence are taken into consideration in the Committee’s review and assessment. The NC comprises three Directors. 16 Singapore Power Annual Report 2005 The Chairman of the NC is an independent non-executive Director. The members are: Mr Alan Chan Heng Loon (Chairman) Mr Ng Kee Choe* Mr Quek Poh Huat * * Non-independent The NC, in consultation with the Chairman of the Board, considers and makes recommendations to the Board concerning the appropriate size and needs of the Board. New Directors are currently appointed by way of a Board resolution, after the NC has endorsed their appointment. The new Directors must submit themselves for re-election at the next Annual General Meeting (AGM) of the Company pursuant to the Articles of Association of the Company. The Articles of Association of the Company requires not less than one-third of Directors to retire by rotation at every AGM. maintains an appropriate and competitive level of remuneration to attract, retain and motivate senior executives to manage the Group successfully. No Director is involved or has participated in any proceedings in respect of his own remuneration. The SDCC comprises three Directors, two of whom are independent Directors. The members are: Mr Ng Kee Choe (Chairman)* Mr Tan Guong Ching Mr Alan Chan Heng Loon * Non-independent COMMUNICATION WITH SHAREHOLDER The Company values communication and ensures that timely and adequate disclosures of material information of the Company are made available to the shareholder. Staff Development and Compensation Committee The Staff Development and Compensation Committee (SDCC) oversees the remuneration of the Group Chief Executive Officer and senior executives. The SDCC establishes and Singapore Power Annual Report 2005 17 Senior Management MR QUEK POH HUAT Group Chief Executive Officer MR SIM KWONG MIAN Managing Director (SP PowerGrid) MR YAP CHEE KEONG Chief Financial Officer & Group Head (Corporate Services) MR NINO FICCA Managing Director (SP AusNet) MR ONG KENG KIAT Managing Director (SP Services) MR JOHN BAPTIST TAY Managing Director (PowerGas) 18 Singapore Power Annual Report 2005 MR WONG CHIT SIENG Head (Information Systems) MRS LYNN LOH Head (Human Resource & Administration) MS CHI PING HUEY Head (Legal & Corporate Secretariat) MS LOH HUI YIN Head (Corporate Communications) MR LIM HOWE RUN Head (Strategic Investments) & Head (Group Risk Management) MR WONG TOON SUAN Head (Group Initiatives) Singapore Power Annual Report 2005 19 Corporate Highlights Consolidation and Celebrations Two major events marked SP’s corporate calendar in FY2005 — SP AusNet’s public listing in Australia and Singapore, and SP’s 10th Anniversary Celebrations. Right: An SP AusNet IPO marketing balloon at Raffles Place in Singapore’s central business district In preparation for SP AusNet’s Initial Public Offering (IPO) and its listing, our business interests in Australia were restructured and consolidated. We sold our merchant energy business, and we integrated our transmission and distribution networks under SP AusNet. At the same time, a number of events and activities were organised to commemorate our tenth year of incorporation. In addition to the celebrations, we launched the Singapore Power Heartware Fund to focus our community efforts on helping the elderly in need of assistance. SP AUSNET IPO The SP AusNet IPO, which attracted much interest and was over-subscribed by more than two times, scored a number of firsts for SP and the capital market in Singapore. It is the first time the Group has listed one of its business units. When SP AusNet’s IPO was launched in November 2005, it was also the largest in Singapore since 1993. Additionally, it was the first dual Australian and Singapore IPO. SP AusNet has a primary listing on the Australian Stock Exchange and a secondary listing on the Singapore Exchange. Trading commenced on 14 December 2005. SP AusNet raised more than A$1.4 billion from investors in Australia, Singapore, United States and Europe. The complexity of having to comply with differing regulatory regimes in three separate markets was ably addressed by the team of in-house and external professionals. 20 Singapore Power Annual Report 2005 The SP AusNet IPO offered stapled securities, which is still relatively new in Singapore. Investors in SP AusNet hold triple-stapled securities consisting of one share of SP Australia Networks (Transmission) Ltd, one share of SP Australia Networks (Distribution) Ltd, and one unit in SP Australia Networks (Finance) Trust. SP, through wholly-owned subsidiary Singapore Power International Pte Ltd, holds a majority 51% stake in SP AusNet. SPI Management Services Pty Ltd (wholly-owned by SP) performs management services for SP AusNet under a management services agreement. The key benefits of stapled securities include cash distributions in excess of accounting profits and flexibility for future acquisitions. SP, through its wholly-owned subsidiary, SP (Belgium) Holdings SA, offered a 49% stake or 1.025 billion stapled securities in SP AusNet to investors. In Singapore, 210 million securities were allocated, of which 35 million went to the public. The strong support for the IPO resulted in SP AusNet fixing the price at A$1.38 ($1.75) per security. This represented an annualised forecast distribution yield of 7.96% for the financial year ended 31 March 2006, and increasing to 8.17% for the financial year ending 31 March 2007. Top: Group CEO Quek Poh Huat (right) and SGX CEO Hsieh Fu Hua at the start of trading for SP AusNet on the Singapore bourse. Left: First day of trading for SP AusNet on the Australian exchange Singapore Power Annual Report 2005 21 Corporate Highlights Minister of Trade and Industry, Mr Lim Hng Kiang, witnessing the presentation of the cheque for $750,000 to the National Council of Social Service SINGAPORE POWER 10TH ANNIVERSARY CELEBRATIONS Having successfully propelled itself from a domestic-based utility company to an international and dynamic group with a footprint across the Asia-Pacific region, SP celebrated its 10th Anniversary during the year. The highlight of the celebrations was the Anniversary Dinner held on 1 October 2005, which brought together key partners and players who have contributed to the development of the energy industry in Singapore. Some 700 guests and staff attended the Dinner, which was graced by the Minister of Trade and Industry, Mr Lim Hng Kiang, and Mrs Lim. The Minister launched the Singapore Power Heartware Fund during the Dinner at which a cheque for $750,000 was presented to the National Council of Social Service. Of the amount presented, $538,000 was raised through the sale of the dinner tables. The remaining amount was raised through donations from corporate sponsors and a pledge card drive among our staff, with SP matching staff pledges dollar-for-dollar. SINGAPORE POWER HEARTWARE FUND As SP celebrated a decade of progress and growth, the less fortunate in our society were not forgotten. As part of its 10th Anniversary Celebrations, the Singapore Power Heartware Fund was launched with the aim of achieving greater focus in our endeavours to enhance the quality of life of those in need of help. Thus, the Fund is committed to specifically helping the elderly in need, a segment of our population which is growing rapidly. The Fund will support Home Help Service programmes for the next three years. The programmes, administered by the Community Chest, benefit some 2,700 elderly people and their caregivers by providing essential services such as meal delivery, personal care hygiene, housekeeping, laundry and transport for medical consultations. A slew of fund-raising activities resulted in more than $1 million being raised for the Fund, with every dollar raised going to the beneficiaries. We are committed to raising $1 million a year for three years. A portion will be used to purchase hardware and equipment such as vans for old folks’ homes, and wheel chairs for the less mobile. All staff are also being encouraged to take part in voluntary work for the elderly under the various Home Help Service programmes, for which one day’s volunteer leave is given. 22 Singapore Power Annual Report 2005 Group Financial Highlights Key Financial Data REVENUE AND PROFIT ������������� �������������������� ����� ����� ����� ����� ��������� ����� ����� ����� ��� ��� ����� ��� � ��������� ��������� ��� ��� ��������� ��������� ������������� ������������������� ���������������� ASSETS AND SHAREHOLDER’S EQUITY ������������ �������������������� ������ ������ ������ ������ ��������� ������ ������ ����� ����� ����� � ��������� ��������� ��������� ��������� Singapore Power Annual Report 2005 23 24 Singapore Power Annual Report 2005 Operational Review Singapore Power At Home SP builds on its core capabilities and wealth of experience in the utilities industry to strengthen its future prospects. In the home market, we are firmly entrenched in electricity and gas transmission and distribution, and utilities support services through four major subsidiaries — SP PowerAssets, SP PowerGrid, PowerGas, and SP Services. Singapore Power Annual Report 2005 25 SP PowerGrid 26 Singapore Power Annual Report 2005 Operational Review management Mr Sim Kwong Mian Managing Director Mr Chan Eng Kiat General Manager (Regulatory & Network Planning) Mr Chang Swee Tong Deputy Managing Director Mr Albert Teow Director (Corporate Services) Mr Cheng See Tau General Manager (Network Management) Mr Law Chin Ho Director (Finance) Mr Chung Choon Heong General Manager (Network Development) Singapore Power Annual Report 2005 27 Our state-of-the-art Supervisory Control and Data Acquisition (SCADA) system ensures power supply reliability. At the Core of Power Quality 28 Singapore Power Annual Report 2005 Operational Review SP PowerGrid We have built up a robust electricity transmission and distribution network that is world-class in standard, employing leading-edge technology. At the heart of this network are two subsidiaries. They are geared towards providing quality power through investments in and management of a national electricity grid infrastructure that provides for future growth. SP PowerAssets (SPPA) is the owner of electricity transmission and distribution assets in Singapore. Its total fixed assets, valued at $6.5 billion, comprise a transmission network at 400kV, 230kV and 66kV, and a distribution network at 22kV, 6.6kV and 400V. SP PowerGrid (SPPG) manages and operates the electricity transmission and distribution networks owned by SPPA. SPPG adopts state-of-the-art technology and innovations to put in place a resilient infrastructure that ensures reliable and efficient supply of electricity to customers. Singapore Power Annual Report 2005 29 Checking gas content in cable oil: Our team of highly-skilled engineers and technicians is committed to ensuring that our transmission and distribution networks run smoothly. 30 Singapore Power Annual Report 2005 Operational Review SP PowerGrid RELIABILITY AND EFFICIENCY: NETWORK PERFORMANCE IMPROVEMENTS Key performance indicators for the electricity network for the year under review recorded major improvements over the same period last year. The system average interruption time, which has improved over the years, was further reduced from 4.32 minutes to 0.29 minute for the year, a significant improvement of 93% over the previous year. The number of supply interruptions, which saw continued reductions over the years, went down from 0.58 to 0.40 interruptions per 1,000 customers during the year under review, a healthy improvement of 31%. PREVENTIVE CHECKS: CONDITION MONITORING FOR BETTER PERFORMANCE SPPG’s efforts in condition monitoring continued to contribute to better performance, resulting in 55 potential failures being averted during the year. Since FY2001, a total of 255 potential failures were prevented, thus saving a repair bill of $26.4 million. WORKING IN PARTNERSHIP: IMPROVING SERVICE AND COMMUNICATION In its continual efforts to maintain close rapport with customers, SPPG organised the inaugural Power Quality Forum on 25 May 2005. The Forum, attended by customers, suppliers and retailers, provided a platform for knowledge sharing of power quality management experiences by renowned international experts. SHARING PRODUCTIVITY GAINS: GRID PRICING FURTHER REDUCED The average grid charge was reduced from 3.75 cents per kWh to 3.67 cents per kWh. This is the fourth consecutive year of price reductions to customers. High-tension customers were segmented into two new tariff categories — HT-Large (customers with monthly contracted capacity of at least 1,700kW) and HT-Small (contracted capacity of less than 1,700kW) — to better reflect the cost of service to the two groups of industrial customers. This is yet another way to help customers improve their competitiveness and make Singapore more attractive for investors. The setting up of Power Quality Interest Groups, which focus on high-technology industry sectors and provide opportunities for regular exchange of experiences and knowledge, was announced at the Forum. The Electronics & Semiconductor Power Quality Interest Group was inaugurated in October 2005, and interest groups for the Pharmaceutical and the Chemical & Petrochemical sectors will be established in the coming year. Singapore Power Annual Report 2005 31 Operational Review SP PowerGrid A high-level Power Quality Advisory Panel, led by SPPG Chairman with chief executives from industry as members, was formed for industry leaders to address power quality issues at a macro and strategic level. Customer Managers were appointed to enhance communication and working relations with SPPG’s key customers. There are about 150 key customers with whom SPPG maintains close rapport. A team of about 40 SPPG engineers visit these customers on a regular basis. REALITY CHECK: CUSTOMER SATISFACTION INDEX In the second annual customer survey conducted in December 2005, customers appraised SPPG with a customer satisfaction Work in progress at a new 400kV substation 32 Singapore Power Annual Report 2005 index of 7.5 out of 10. This is a significant improvement over the 6.6 rating in the previous year, and a testimony to the significant strides made by SPPG in meeting the needs of its customers. INVESTING FOR THE FUTURE: ON-GOING NETWORK DEVELOPMENT AND PLANNING The year in review saw good progress made on major 400kV and 230kV projects. Works are continuing well in the following, which are scheduled for completion in 2006 and 2007: • A 400kV substation to meet increasing electricity demand in the eastern part of Singapore; • A 230kV substation to meet anticipated demand growth in the northern part of Singapore; • The installation of a phase-shift transformer, allowing more efficient utilisation of transmission circuits to cater for additional power export from the northern part of the island; and • The installation of Time-of-Day (TOD) meters and telephone lines for some 4,700 contestable consumers under Phase 2 of the retail market liberalisation. In addition to on-going network development, major projects and initiatives in network planning were launched during the year. BREAKING NEW GROUND: 230/22KV SUBSTATION Singapore’s first substation with direct transformation from 230kV to 22kV will be installed in 2008/2009. Bypassing the 66kV voltage will result in a more efficient and reliable transportation of power to customers. The substation will serve as the primary power source for the new downtown at Marina Bay where the development will include the Integrated Resort and Business Financial Centre. ENHANCING EFFECTIVENESS: RE-ORGANISING FOR SHARPER FOCUS Organisational changes were made to achieve greater efficiency and effectiveness with existing functions. The Asset Management Branch and Procurement Branch were created; and a Corporate Relations Section was established under the Corporate Services Branch. The Asset Management Branch focuses on the optimisation of lifecycle management of network assets. Singapore Power Annual Report 2005 33 Operational Review SP PowerGrid The year saw good progress made on major projects, including an undersea cable tunnel. The Procurement Branch undertakes central procurement for the entire SP Group in Singapore. Through collaborative and consolidated procurement, SP can potentially enjoy price advantages. The Corporate Relations Section is tasked to develop the overall customer management strategy, co-ordinate customer management and communications programmes, and facilitate training for Customer Managers. QUALITY HUMAN RESOURCES: A PEOPLE DEVELOPER COMPANY SPPG joined the ranks of people-centric companies certified by SPRING Singapore as having attained the People Developer Standard. This achievement in January 2006 is a testimony of SPPG’s commitment to developing its people through the adoption and implementation of quality human resource development practices. 34 Singapore Power Annual Report 2005 Key Network Indicators SHORTER INTERRUPTIONS System Average Interruption Time (Minutes) FEWER INTERRUPTIONS Number of Supply Interruptions per 1,000 Customers � ��� ������������������� � � � � ���� ���� ���� ���� ����� ��������������������������������� ��� ��� ��� ���� ���� ���� ���� ���� ���� � ����� ����� ����� ����� ����� ����� ���� ��� ����� ����� ����� ����� ����� ����� �������������� �������������� POWERING ECONOMIC GROWTH Real GDP vs Electricity Net Demand Growth (% Change) POWER DELIVERY Electricity Transmitted and Distributed (GWh) �� ���� ������ ��������������������� � � � � � �� ��� ��� ��� ��� ����� ��� ��� ��� ��� ��� ��� ������� ���������������� ��� ������ ������ ������ ������ ������ ������ ������ ������ ������ �� �� �� �� �� �� �� � ����� ����� ����� ����� ����� ����� ������������� �������������� GWh percentage change based on Actual Sales GWh values based on Account Sales Singapore Power Annual Report 2005 35 PowerGas 36 Singapore Power Annual Report 2005 Operational Review management Mr John Baptist Tay Managing Director Mr Lim Song Hau Director (Network Development) Mr Tai Seng Chong Director (System Operation) Mr Chin Terk Chung Director (Network Management) Singapore Power Annual Report 2005 37 Growing Gas Networks 38 Singapore Power Annual Report 2005 Laying of gas transmission pipelines that will cater to future needs Operational Review PowerGas Being Singapore’s oldest and most established gas company, PowerGas has a wealth of expertise that comes from more than 140 years of serving the local gas industry. Today, PowerGas is the sole gas transporter and system operator in Singapore. It manages a transportation network of about 2,800km of transmission and distribution pipelines. INCREASING CAPACITY: TRANSMISSION NETWORK EXPANDED PowerGas commissioned the 15-km pipeline extension to Tuas Power on 27 April 2005, about one and a half months ahead of schedule. With this completion, the three major generation companies have access to two sources of natural gas supply. Further work will be carried out in 2006 to enable additional gas injection from the Tuas Pipeline into the Sakra- Senoko pipeline system. Singapore Power Annual Report 2005 39 Gas analysis checks are part of a quality control system at the natural gas facility of PowerGas. 40 Singapore Power Annual Report 2005 Operational Review PowerGas Another 6km of gas transmission pipeline is being constructed to transport Malaysian gas to Keppel Energy’s 500MW co-generation power plant on Jurong Island. Work started in December 2005 and is expected to be completed by the third quarter of 2006. EXPANDING REACH: DISTRIBUTION AND TOWN GAS NETWORKS ENHANCED The natural gas distribution network in Jurong and Tuas was extended by about 1km to support the delivery of natural gas to industrial customers. Supply reliability will be further improved by end-2006 with the development of offtake stations in the western part of Singapore to enable additional injection points from the transmission system into the distribution network. Maintenance (left) and monitoring (below) are essential to gas supply reliability. Singapore Power Annual Report 2005 41 The Meter Testing Laboratory of PowerGas has received SAC-SINGLAS Certificate of Accreditation. 42 Singapore Power Annual Report 2005 Operational Review PowerGas The town gas network was extended by 16km to reach more customers in new Housing & Development Board estates, as well as private residential and commercial premises. The year also saw 13km of old pipelines renewed, and the diversion of 5km of pipelines affected by mass rapid transit extension works. PASSING THE TEST: ACCREDITATION OF METER TESTING LABORATORY The Meter Testing Laboratory of PowerGas, located at its National Gas Control Centre, was accredited under the Singapore Accreditation Council-Singapore Laboratory Accreditation Scheme. It received its Certificate of Accreditation on 9 May 2005. With this accreditation, the laboratory can test meters up to a capacity of five cubic metres per hour, and verify the meters’ accuracy to international standards. GEARING UP: THE NEW GAS INDUSTRY FRAMEWORK Under the new gas industry framework, PowerGas will be the sole transporter and gas system operator (GSO). It will own and operate the onshore gas transportation network, which includes the pipelines currently owned and operated by SembCorp Gas Pte Ltd. The interconnection of the existing network of PowerGas and that of SembCorp Gas is being studied by the Energy Market Authority (EMA). The new industry framework will enable an open-access gas transportation network in a multi-shipper, multi-retailer market environment. The Gas Network Code was approved by the EMA in October 2005. Work is continuing by the Standard Operating Procedures (SOP) Industry Working Group to develop SOPs. These will enable close co-ordination between the Transporter/GSO, shippers, end-users and Power System Operator under various operating scenarios, including contingency operations under the Gas Network Code framework. To meet the requirements of the Gas Network Code and SOPs, PowerGas is developing the Gas Transportation System Solution, a web-based IT system. It will facilitate gas nominations by shippers, as well as scheduling and the balancing of gas injections and withdrawals in the transportation network. Singapore Power Annual Report 2005 43 SP Services 44 Singapore Power Annual Report 2005 Operational Review management Mr Ong Keng Kiat Managing Director Mrs Jeanne Cheng General Manager (Services & Marketing) Mr Lim Ah Kuan Director (Operations) Ms Lily Tan Acting Director (Information Systems) Ms Derbin Kwek Deputy Director (Finance & Accounts) Singapore Power Annual Report 2005 45 An integrated customer service call centre is dedicated to attending to the needs of our more than one million utility customer accounts. At the Heart of Customer Service 46 Singapore Power Annual Report 2005 Operational Review SP Services SP Services provides a convenient one-stop customer service for electricity, water, piped gas supplies and refuse collection in Singapore. It is also the Market Support Services Licensee in the New Electricity Market, enabling a smooth and seamless operation of the competitive electricity market for the benefit of consumers and the industry as a whole. SP Services provides services such as meter reading and data management, and facilitates consumer registration and transfers from one retailer to another. It also provides other utilities support services such as billing and payment collection on behalf of SP PowerGrid (SPPG) and other utility service providers. These include the Public Utilities Board (PUB), City Gas and various refuse collection companies. Leveraging on its experience in consolidated billing and payment collection, SP Services provides an efficient and convenient service for every home and business in Singapore. SURPASSING BENCHMARKS: SERVICE QUALITY SP Services views feedback and suggestions from principals and customers as critical to further improvements. In line with this focus, in the last quarter of 2005, it conducted a comprehensive Customer Satisfaction Survey of 800 customers who were randomly selected. Singapore Power Annual Report 2005 47 Operational Review SP Services SP Services’ branch at Woodlands Civic Centre was recently renovated and is one of our initiatives to go the extra mile for our customers. The survey results were very good — 83% of the customers surveyed were satisfied with SP Services. The high rating also placed SP Services ahead of five other major service providers in Singapore that were chosen as benchmarks for comparison. The survey also helped SP Services identify areas for improvement. SP Services’ commitment towards service excellence is also shown in its service level performance. It exceeded all the regulated service levels and also introduced several new initiatives to boost service quality. THE EXTRA MILE: NEW INITIATIVES IN SERVICE EXCELLENCE Providing quality service and greater convenience for its customers continued to be the focus of SP Services. The year under review saw the launch of several new customer service initiatives. SP Services successfully launched the Pay- As-You-Use (PAYU) metering scheme on 16 May 2005. As at 31 March 2006, some 9,000 customers have signed up for the prepaid metering scheme. The scheme enables customers to better manage their consumption while paying their arrears over a period of time. In another customer service initiative, SP Services partnered DBS Bank to launch the POSB Everyday Card on 30 September 2005. Customers can pay their utility bills conveniently and, at the same time, enjoy a wide array of benefits. These include instant cash rebates, ranging from 1% to 20%. The cash rebates in the form of Daily$ can be used to offset 48 Singapore Power Annual Report 2005 payment for items such as utilities, petrol, groceries as well as cable television and mobile phone charges. Customers who pay their utility bills through the POSB Everyday Card enjoy a 1% cash rebate on their utility payment. Given the company’s continuous efforts to improve service to customers, SP Services teamed up with the 7-Eleven convenience store chain to introduce a new payment mode. Since 12 December 2005, customers have been able to pay their utility bills at any of the more than 300 7-Eleven stores island-wide at any time of the day, and night, using cash, NETS or CashCard. The service has been well-received by customers. (Smile, Timely, Accessible, Reliable) service guidelines and customer servicing skills. All frontline staff went through customised programmes to acquaint or refresh themselves with the STAR service and to learn new service skills. SP Services was awarded the People Developer Standard in May 2005. The award recognises that SP Services has adopted sound, effective strategies on staff development. The PAYU metering scheme helps customers better manage their utility consumption. SP Services introduced a new common utility enquiry hotline — 1800-2222 333 — for the convenience of customers who call the various utility service providers. This initiative is a joint effort of SP Services, SPPG, PUB and City Gas. Customers who call the billing enquiry hotline are routed to SP Services, SPPG, PUB or City Gas, depending on the nature of their enquiries. ESSENCE OF EXCELLENCE: OUR PEOPLE AND OUR PROCESSES SP Services obtained its ISO 9001:2000 certification in July 2004. A surveillance audit by external assessors conducted in February 2006 affirmed that SP Services had continued to comply with the ISO (International Organization for Standardization) certification standards. SP Services is committed to developing its staff, firmly believing that a trained and skilled workforce will enable the company to meet the challenges ahead. During the year, it provided 91 training hours per person for all levels of staff. PLAYING AN INTEGRAL ROLE: ELECTRICITY MARKET DEREGULATION SP Services continued to play an integral role in expanding the liberalisation of the electricity market. During the year, more contestable consumer accounts were activated, bringing the total number of contestable customers to 9,264 as at 31 March 2006. These consumers can choose to buy electricity from retailers, or directly or indirectly from the wholesale electricity market. In 2005, the company collaborated with its training partner to develop and roll out a series of service skills training programmes incorporating the Strategic Service Intent STAR Singapore Power Annual Report 2005 49 50 Singapore Power Annual Report 2005 Operational Review Singapore Power Overseas SP envisions itself becoming a leading energy player in the Asia-Pacific region. We have a strong presence in Australia through SP AusNet, which was publicly-listed in 2005, and investments in South Korea and Taiwan. Singapore Power Annual Report 2005 51 SP AusNet 52 Singapore Power Annual Report 2005 Operational Review management Mr Nino Ficca Managing Director Mr Charles Popple General Manager (Regulatory & Business Strategy) Mr Paul Adams General Manager (Network Services Group) Mr John Azaris General Manager (Human Resources & Communications) Mr Norm Drew General Manager (Transmission Network Development) Mr Peter Merritt General Manager (Business Systems & Services) Mr Peter Buck General Manager (Distribution Network Development) Mr Adrian Hill Director (Strategic Projects) Mr Terry Fowler General Manager (Finance) Ms Elizabeth Mildwater General Counsel & Company Secretary Singapore Power Annual Report 2005 53 New Phase for SP in Australia 54 Singapore Power Annual Report 2005 Operational Review SP AusNet The past year certainly brought many changes to SP’s Australian arm, SP AusNet, culminating in its dual public listing in Australia and Singapore. Leading up to this, the merchant energy business was divested, and the electricity transmission business and the electricity and gas distribution businesses integrated. These changes herald a new era for the Australian energy sector, and a new phase for SP in Australia. SP AusNet, which has an ”A1” rating from Moody’s and an “A” rating from Standard & Poor’s, is the largest combined electricity transmission and electricity and gas distribution business in Australia. It is 51% owned by Singapore Power International Pte Ltd, a whollyowned subsidiary of SP, following SP AusNet’s Initial Public Offering (IPO). SPI Management Services Pty Ltd (whollyowned by SP) performs management services for SP AusNet under a management services agreement. The business transition this past year was comprehensive and beneficial, and the focus on extracting and capitalising on the synergies of bringing together the network businesses proved fruitful. SP AusNet is committed to ensuring that equipment remain in the best working order. Singapore Power Annual Report 2005 55 SP AusNet provides electricity to over one million homes in Victoria. 56 Singapore Power Annual Report 2005 Operational Review SP AusNet A new integrated business structure and the market launch of a new brand name, SP AusNet, was just the beginning of a hectic and successful year, with the highlights of the SP AusNet calendar being its IPO in November 2005 and the start of trading in Australia and Singapore the following month. The strong local management team has a wealth of experience in running the company, and SP AusNet — situated in four of the five growth corridors in Victoria — has strong organic growth potential, contributing to its asset base and regulated revenue streams. GOING REGIONAL: NATURAL GAS EXTENSION PROGRAMME A A$40 million natural gas extension programme for the supply of natural gas to 12 regional towns across the west of the State was rolled out. This programme could potentially see up to 15,000 properties having access to natural gas for the first time. The construction programme, which began in March 2005, constitutes six discrete projects with a total of 12 towns to be reticulated by the end of 2007. When completed, SP AusNet will own and operate the new gas infrastructure. By the close of 2005, the first connection was completed in Creswick, with work underway in the towns of Gisborne, New Gisborne, Macedon, Port Fairy, and Woodend. Connections in all of these towns are due for completion by the end of 2006. In 2007, the towns of Barwon Heads, Camperdown, Lancefield, Maiden Gully, Riddells Creek and Romsey will follow. These first-stage works have increased SP AusNet’s regulated gas asset base by 131km of mains and eight major regulating facilities. These, in turn, position SP AusNet to extend the network in each town as further growth occurs. Planning for the rollout of the natural gas infrastructure was carried out in consultation with a wide spectrum of stakeholders, including Regional Development Victoria, local communities, environmental agencies and councils. Delivery of natural gas to regional areas benefits the local communities through lower energy costs, and drives future investment and employment growth. NETWORK EXPANDS: ELECTRICITY CONNECTIONS IN GROWTH CORRIDORS Many regions across SP AusNet’s operating area have benefited from the expansion and development of the electricity distribution network to support social and economic infrastructure activities. Near the northern border town of Wodonga, the establishment of a large distribution centre for a major retail company called for SP AusNet to install a new zone substation. In the rural east, the expansion of manufacturing plants and industrial estates resulted in network augmentations in Leongatha, Morwell, Sale, Traralgon and Warragul. Singapore Power Annual Report 2005 57 Operational Review SP AusNet Closer to Melbourne, the network’s capacity was boosted to meet the growing demand of manufacturing plants at Monbulk and Rowville as well as the growth in population in the northern and south-eastern growth corridors. New connections were made for urban residential customers in the northern metropolitan corridor (Epping, Mernda, Doreen and South Morang) and the south-eastern corridor of Cranbourne, Pakenham, Berwick and Narre Warren. A marked increase in the energy required to power upgraded water and sewerage infrastructure in growth corridors led to distribution network upgrades in the northern Melbourne growth corridor and, regionally, at Morwell. One area of Victoria state requiring both network upgrades and new connections is South Gippsland where Wonthaggi, Inverloch, Lakes Entrance and several other coastal towns have benefited from the sea-change phenomenon that is driving growth in all sectors. This phenomenon refers to the growing shift in population to the coast. In December 2005, SP AusNet was successful in a competitive tendering process for two major transmission network augmentation projects at Rowville and Moorabool. The two competitive contracts were awarded by VENCorp, the Victorian energy system planner, and are intended to support load growth in Victoria’s metropolitan and regional areas. SP AusNet will provide natural gas to twelve new Victorian towns by end of 2007. 58 Singapore Power Annual Report 2005 Operational Review Asia Investments in Asia SPI SEOSAN CO-GENERATION AND WATER TREATMENT, SOUTH KOREA SP’s investment in South Korea comprises a co-generation plant of 92MW and a water treatment plant of 840 tons/hour. The Seosan industrial utilities complex provides electricity, steam and water treatment services to Samsung Total Petrochemicals Co Ltd, one of the largest petrochemical companies in the country. The utilities complex continued to provide reliable services to Samsung Total during the year. It achieved 100% availability in the supply of water and steam, and 99.9% availability in electricity supply. The complex also completed on schedule a major overhaul in conjunction with the petrochemical complex turnaround in June 2005. The Seosan complex achieved a good safety record, meeting the zero lost time incident standard mandated by Korea Occupational Safety & Health Agency. EVER POWER, TAIWAN SP’s investment in Taiwan comprises a 25% stake in Ever Power IPP Company, an independent power producer, which operates a 960MW combined-cycle power generation plant. The power plant supplies electricity to Taiwan Power Company. During FY2005, Ever Power continued to maintain good availability, meeting the dispatch requirements of Taiwan Power Company. Ever Power also achieved good profitability and maintained a consistent dividend payout to shareholders. The Seosan industrial utilities complex continued to provide reliable services to Samsung Total during the year. Singapore Power Annual Report 2005 59 Beyond Business 60 Singapore Power Annual Report 2005 Our People, Our Community It’s never too early to learn about efficient use of electricity. Our staff explains basic concepts to these young visitors at the Electricity Efficiency Centre at Singapore Power Building. PEOPLE AND COMMUNITY SP Group has a staff strength of close to 3,800 in its Singapore and overseas operations. Just as we are committed to creating value for our customers and shareholders, we are similarly committed to our people, and our community. We support both, we continually learn from each other, and we share ideas and knowledge for a brighter future. Our People: Developing Employees and Expanding the Talent Pool SP accords high priority to staff development, with each staff receiving an average of 61 learning hours a year. In all, 90 in-house training courses were made available to staff during the year, as well as various public seminars, apprenticeship training schemes, overseas training, on-the-job training, and e-learning. Leading-edge training technology was utilised for more effective and “just-in-time” learning. Three new e-learning courses were developed in-house during the year to provide customised training on the Customer Management System. Singapore Power Annual Report 2005 61 Our People, Our Community Right: Our scholarship programme provides us with a growing talent pool. Extreme right: Fostering Union- Management relations through regular dialogue We continued to expand our talent pool through our scholarship programme. A total of five scholarships, three for local universities and two for overseas universities, were awarded in the year. Upon completion of their university studies, our graduating scholars join us as Management Associates and are exposed to different functional areas within the Group. Other leadership training programmes are also provided — such as job rotation across the subsidiaries, specialised courses and challenging assignments on strategic initiatives. Union-Management Relations A strong partnership exists between the Union of Power and Gas Employees (UPAGE) and Management. The Union-Management Seminar held in Kuching in September 2005 is testimony to the efforts made to foster greater understanding between UPAGE and Management. With the support of the Union, SP was able to carry through many initiatives and changes. Working in close liaison with UPAGE, SP participated in the launch on 7 February 2006 of the National Trades Union Congress (NTUC) initiative on the employability of mature workers. Two colleagues who were on re-employment after retirement, Mr Lim Ah Kok and Mr Nadaison Pookays, were featured in an NTUC video presentation. SP’s initiative on employability of mature workers was also featured in Chinese daily Lianhe Zaobao, and on Channel 5’s news bulletin. Keeping In Touch, Engaging Our People An Employee Opinion Survey was conducted as part of our continuing efforts to engage our staff. Results of the survey and follow-up action plans were shared with the staff at the Management Annual Plan 2006. The year under review also saw the introduction of the Singapore Power ACE (Appreciation for Commitment and Excellence) Award. Aimed at motivating staff to continue to excel and strive for improvements, the award recognises SP staff who have displayed outstanding work performance, made significant contributions outside their scope of work, and exhibited exemplary conduct and work attitude. 62 Singapore Power Annual Report 2005 The Wellness Award was introduced during the year to reward employees who do not take any medical leave for a calendar year. Singapore HEALTH Award For the second consecutive year, SP clinched the Singapore HEALTH (Helping Employees Achieve Life-Time Health) Gold Award, which underscores our commitment in helping employees lead a healthy lifestyle. Left: Kick-off meeting for an Economic Value Cross-Functional Project Below: Engaging staff at our Management Annual Plan meeting The inaugural ACE Award winner was Mr Azhar Bin Mohamed Noor from PowerGas. The Merit Award winners were Mr Lawrence Lee Siew Ming from SP Services, Mr Jason Tan Chee Kean from SP PowerGrid (SPPG) and Mr Rosle Bin Gaus from HR&A Department. Reward for Performance The Economic Value Added (EVA)-based long-term incentive plan for executive staff in Singapore was introduced. To further encourage commitment to the performance of the company, staff in Singapore and Australia were given priority in the allocation of SP AusNet securities during its initial public offering. Singapore Power Annual Report 2005 63 Our People, Our Community Our performance appraisal system was also further refined to recognise important competencies, valued behavioural traits and subscription to corporate values. Right: Artist’s impression of Singapore Power Building’s new façade Below: A billiard room is one of several new facilities for staff to enjoy at our newly-opened recreation club. Creating Value During the year, a total of $12,295 was awarded to staff who contributed their ideas via the Value Creation Idea Award (VCIA) scheme. In all, 348 ideas to improve operations were accepted. An Economic Value Project (EVP) Workshop series was organised company-wide. Eleven cross-functional projects were identified at these workshops. Team leaders and members were selected to work on these projects, leveraging on synergies between the company’s value centres. 64 Singapore Power Annual Report 2005 Reaching out at a roadshow in Tampines Upgrading of Singapore Power Building Our headquarters in Singapore Power Building was renovated to enhance the working environment, and our offices integrated and clustered to streamline workflow and to facilitate staff communication and interaction. A new recreation club was built to provide facilities such as a gymnasium, sauna, and billiard and karaoke rooms. The recreation club was opened to staff in February 2006. The exterior of Singapore Power Building is currently being refurbished. The façade is being re-cladded, replacing the tiled finishes with matching aluminium panels. External windows are being replaced to enhance sound and thermal insulation for the building which also houses non-SP tenants. Our Community: Contributing to Society We pride ourselves as a socially responsible corporate citizen, contributing actively to society and the less fortunate in our midst. We have contributed to numerous charities in our efforts to enrich the quality of lives of thousands of needy children, the elderly, and people with disabilities. We have also donated to civic organisations and other causes that strive to make a positive change in society. During the year under review, SP launched the Singapore Power Heartware Fund, initially raising more than $1 million to help the needy elderly. In addition, we contributed over $385,000 in financial assistance to some 20 charities and associations, including the MILK Fund, Rainbow Centre and Asian Women’s Welfare Association Welfare Fund. SP staff also donated more than $50,000 as part of the Community Chest SHARE programme, with SP matching contributions dollar-for-dollar. Reaching Out Two roadshows, attracting more than 20,000 visitors, were organised as part of SP’s Public Outreach Programme to increase awareness of SP, its operations and the role it plays in the energy sector. The programme also included briefings to Members of Parliament, grassroots leaders and the media. National Day In support of nation building, SP made a record contribution of $250,000 to the celebration of Singapore’s 40th birthday last year. The sponsorship placed SP as one of the top-tier sponsors of the National Day Celebrations. Singapore Power Annual Report 2005 65 Our People, Our Community SP AusNet supports environmental groups such as the Landcare and is committed to the environment. Victorian Energy Education and Training (VEET) Programme The VEET Programme forges links between industry, education providers and community leaders. The programme provides young people with a first-hand understanding of the energy industry, plus the opportunity of a job placement and a potential career. Contribution Towards the Nation In recognition of its outstanding support and contribution towards national defence, SP was accorded the Minister for Defence Award 2005 and the Ministry of Home Affairs Award for National Servicemen’s Employers 2005. The Minister for Defence Award is the highest accolade for employers accorded by the Ministry of Defence. SP was one of 21 employers who received the award in 2005. Community Development Fund The Community Development Fund was developed by SP AusNet to contribute positively to the long-term growth and development of Australia’s Victorian communities. The Fund demonstrates that SP AusNet does more than deliver safe and reliable energy to over a million customers across Victoria. SP AusNet launched the fund in South Gippsland Shire in FY2005. Two projects are being undertaken in this area with the help of the Fund. REACH Foundation Regional Workshops SP AusNet sponsors the REACH Foundation to run school-based workshops in key regional towns. The workshops empower young people with life skills and raise questions that stimulate positive and critical thinking. Landcare Sponsorship SP AusNet has maintained a long and mutuallybeneficial relationship with Landcare Victoria since 1999. Over this period, SP AusNet has targeted funding to preserve and improve the native landscape; develop and maintain suitable native vegetation near easements; and educate landowners on selecting and managing vegetation near powerlines. The Landcare programme provides the basis of a working partnership between the community, government and industry. As part of its commitment to the environment, SP AusNet also encourages its security holders to register to receive their security holder notices and annual report electronically through the eTree programme. For each investor who signs up, SP AusNet donates A$2 to Landcare Australia to fund the planting of indigenous trees in the community. 66 Singapore Power Annual Report 2005 Designed and produced Singapore by Key Power Communications Annual Report Pte 2005 Ltd 67 Singapore Power Limited 111 Somerset Road #10-01 Singapore Power Building Singapore 238164 Tel: (65) 6823 8888 Fax: (65) 6823 8188 www.singaporepower.com.sg 68 Singapore Power Annual Report 2005

Search SP Group Boosts Electric Mobility Capabilities via Investment in The Mobility Househttps://www.spgroup.com.sg/about-us/media-resources/news-and-media-releases/SP-Group-Boosts-Electric-Mobility-Capabilities-via-Investment-in-The-Mobility-House Media Release SP Group Boosts Electric Mobility Capabilities via Investment in The Mobility House Singapore/Munich/Zurich, 3 September 2020 – SP Group (SP) today announced a strategic investment in The Mobility House AG (TMH) to explore smart charging1 (V1G) and vehicle-to-grid2 (V2G) feasibility [20200903] Joint News Release - SP Group Boosts Electric Mobility Capabilities via Investment in The Mobility Househttps://www.spgroup.com.sg/dam/spgroup/wcm/connect/spgrp/3885980d-054e-4cbb-a25f-b9029e3591e3/%5B20200903%5D+Joint+News+Release+-+SP+Group+Boosts+Electric+Mobility+Capabilities+via+Investment+in+The+Mobility+House.pdf?MOD=AJPERES&CVID= Joint News Release SP GROUP BOOSTS ELECTRIC MOBILITY CAPABILITIES VIA INVESTMENT IN THE MOBILITY HOUSE Singapore/Munich/Zurich, 3 September 2020 – SP Group (SP) today announced a strategic investment in The Mobility House AG (TMH) to explore smart charging 1 (V1G) and vehicle-togrid 2 (V2G Searchhttps://www.spgroup.com.sg/search?tag=mobility Search SP Group Boosts Electric Mobility Capabilities via Investment in The Mobility Househttps://www.spgroup.com.sg/about-us/media-resources/news-and-media-releases/SP-Group-Boosts-Electric-Mobility-Capabilities-via-Investment-in-The-Mobility-House Media Release SP Group Boosts Electric Mobility Searchhttps://www.spgroup.com.sg/search?tag=mobility Search SP Group Boosts Electric Mobility Capabilities via Investment in The Mobility Househttps://www.spgroup.com.sg/about-us/media-resources/news-and-media-releases/SP-Group-Boosts-Electric-Mobility-Capabilities-via-Investment-in-The-Mobility-House Media Release SP Group Boosts Electric Mobility HSBC Asset Management Energy Transition Infrastructure (ETI) Team Invests in a Strategic Stake in SP Mobilityhttps://www.spgroup.com.sg/about-us/media-resources/news-and-media-releases/HSBC-ASSET-MANAGEMENT-ENERGY-TRANSITION-INFRASTRUCTURE--ETI--TEAM-INVESTS-IN-A-STRATEGIC-STAKE-IN-SP-MOBILITY Joint Media Release HSBC Asset Management Energy Transition Infrastructure (ETI) Team Invests in a Strategic Stake in SP Mobility Singapore, 11 February 2025 – HSBC Asset Management (“HSBC AM”) today announces an investment1 by its Energy Transition Infrastructure (“ETI”) team in SP Mobility, an SP Hyundai+Motor+Launches+E-mobility+Pilot+in+Singapore+with+SP+Group+and+Komoco.pdfhttps://www.spgroup.com.sg/dam/spgroup/wcm/connect/spgrp/30af18e8-68dc-498a-b697-afde62be1c9d/Hyundai+Motor+Launches+E-mobility+Pilot+in+Singapore+with+SP+Group+and+Komoco.pdf?MOD=AJPERES&CVID= Hyundai Motor Group Launches ‘E-mobility Pilot’ in Singapore with SP Group and Komoco Motors to Enhance EV Customer Experience • Pilot program to offer real-time EV battery management solution, preventive maintenance, EV charging credits and V2V mobile charging for EV owners in Singapore • EV Hyundai Motor Group Launches ‘E-mobility Pilot’ in Singapore with SP Group and Komoco Motors to Enhance EV Customer Experiencehttps://www.spgroup.com.sg/about-us/media-resources/news-and-media-releases/Hyundai-Motor-Launches--E-mobility-Pilot--in-Singapore-with-SP-Group-and-Komoco News Release Hyundai Motor Group Launches ‘E-mobility Pilot’ in Singapore with SP Group and Komoco Motors to Enhance EV Customer Experience Pilot program to offer real-time EV battery management solution, preventive maintenance, EV charging credits and V2V mobile charging for EV owners in Singapore Borneo Motors Singapore and SP Group to Pilot Singapore’s First Electric Car-Sharing Programme in Tengah, Singapore’s First Integrated Smart Energy Townhttps://www.spgroup.com.sg/about-us/media-resources/news-and-media-releases/Borneo-Motors-Singapore-and-SP-Group-to-pilot-Singapore-s-first-electric-car-sharing-programme-in-Tengah--Singapore-s-first-integrated-smart-energy-town News Release Borneo Motors Singapore and SP Group to Pilot Singapore’s First Electric Car-Sharing Programme in Tengah, Singapore’s First Integrated Smart Energy Town • The partnership aims to accelerate Singapore's transition to green mobility by increasing awareness on sustainable mobility [30062022]+Media+Release+-+BMS+and+SP+to+pilot+SG's+first+electric+car+sharing+programme+in+Tengah.pdfhttps://www.spgroup.com.sg/dam/spgroup/wcm/connect/spgrp/7aacef70-9cf0-44e6-8484-b84ac03837ec/%5B30062022%5D+Media+Release+-+BMS+and+SP+to+pilot+SG's+first+electric+car+sharing+programme+in+Tengah.pdf?MOD=AJPERES&CVID= News Release BORNEO MOTORS SINGAPORE AND SP GROUP TO PILOT SINGAPORE’S FIRST ELECTRIC CAR-SHARING PROGRAMME IN TENGAH, SINGAPORE’S FIRST INTEGRATED SMART ENERGY TOWN • The partnership aims to accelerate Singapore’s transition to green mobility by increasing awareness on sustainable mobility SP Group launches Tengah’s First Public EV Chargers, Expanding Singapore’s Green Mobility Networkhttps://www.spgroup.com.sg/about-us/media-resources/news-and-media-releases/SP-Group-launches-Tengah-s-First-Public-EV-Chargers--Expanding-Singapore-s-Green-Mobility-Network Media Release SP Group launches Tengah’s First Public EV Chargers, Expanding Singapore’s Green Mobility Network 25 February 2025, Singapore – SP Group (SP) today launched the first electric vehicle (EV) charging points in Tengah estate, Singapore’s first and largest smart and sustainable town Our Integrated EV Charging Solutionshttps://www.spgroup.com.sg/sustainable-energy-solutions/electric-vehicle-solutions/our-integrated-ev-charging-solutions OverviewSP MobilityFor DriversFor PartnersCharger Locations Our Integrated EV Charging Solutions Catalysing sustainable mobility SP mobility is committed to accelerate Singapore’s transition to sustainable mobility by building Singapore’s largest high-speed EV charging network. We are nurturing SP Mobility and Huawei to Launch Singapore’s Fastest Public EV Charger at Temasek Polytechnichttps://www.spgroup.com.sg/about-us/media-resources/news-and-media-releases/sp-mobility-huawei-to-launch-singapore-fastest-public-ev-charger-at-temasek-polytechnic Media Release SP Mobility and Huawei to Launch Singapore’s Fastest Public EV Charger at Temasek Polytechnic [SINGAPORE, 8 July 2025] – Charging of electric vehicles (EVs) will now be super swift with the launch of Singapore’s first liquid-cooled ultra-fast direct current charger – the fastest 1 2 3 4 5 ..... 11

Registration Number: 199406577N | SP Power Limited and its subsidiaries CHAIRMAN'S MESSAGE 2022 “I believe that with the strong partnership forged with our stakeholders, we will remain committed to creating greater value for our customers and empowering the future of energy together.” The past year has been a test of resilience, agility and unity. Reflecting on SP Group’s performance, it has been a remarkable year on several counts. Despite unprecedented challenges and constraints posed by the pandemic, supply chain disruptions and a labour crunch, we concluded the year with a record electricity supply interruption performance, exceeded targets for gas operations and workplace safety, and attained an all-time high employee engagement. As a provider of essential energy services, SP Group has been steadfast in ensuring reliable and secure supply of electricity and gas for our customers, amidst change and transformation around us. With the gradual easing of safe management measures, we have doubled our efforts in asset maintenance and renewal works to ensure long-term network reliability. Recognising climate change imperatives, we have stepped up efforts in developing sustainable energy solutions. We have expanded our low-carbon footprint in Singapore and overseas, providing energy solutions through district cooling, electromobility and renewable energy investments. The difficult operating environment has not deterred us from continued investment in building capabilities as we pursue technology, people development and process innovation, and maintain a strong financial position to meet future needs. MANAGING RELIABLE NETWORKS Our teams work round the clock to run robust operations of the grid, delivering reliable power and gas supply to more than 1.6 million commercial, industrial and residential customers in Singapore. - 2 - SP GROUP ANNUAL REPORT 2022 CHAIRMAN'S MESSAGE 2022 Efforts spanning asset planning, renewal and maintenance have contributed to a record network reliability performance. On average last year, a customer experienced a record low 6.6 seconds of electricity interruption and 11.9 seconds of gas interruption. In the past year, we completed 18 renewal projects, and replaced 140km of cables, 263 transformers and 1,044 switchgear panels in our electricity distribution infrastructure. We invest in infrastructure and technology such as artificial intelligence and machine learning. This enables us to conduct comprehensive real-time monitoring, trend analysis and diagnostics so as to predict and manage future network problems before they occur. Forty critical distribution substations have been installed with online condition monitoring equipment, with another 99 more in the pipeline. In anticipation of growth in electricity demand, electrification and renewable and distributed energy deployment, there is a need for a - 3 - SP GROUP ANNUAL REPORT 2022 CHAIRMAN'S MESSAGE 2022 high-fidelity digital replica of Singapore’s future electricity grid. SP is developing a Grid Digital Twin, an innovative in-house creation to better plan, operate and maintain the national power grid through modelling, simulations, condition monitoring and asset health analysis. We draw on up-to-date information from over 12,000 substations across our entire electricity network. As part of our gas asset renewal and maintenance programme, we concluded an open tank inspection for a gas holder and successfully completed the renewal of two town gas offtake stations. Another seven stations are scheduled for completion in the next three years. Our Technical Officer performing condition monitoring of our electricity asset We carried out projects to lay more than 70km of durable polyethylene pipes to replace ageing ductile iron pipelines, thereby reducing the risk of gas leakage. Another key milestone was the completion of the in-line inspection operations for a subsea gas pipeline connecting Indonesia to Singapore to ensure integrity of the pipeline. We have adopted new technologies such as the implementation of a new gas enterprise asset management system. These initiatives will optimise operational effectiveness and enable us to better assess the condition of our assets in order to facilitate timely replacement and minimise unplanned interruption. SP is driving the national rollout of smart meters to help customers optimise their energy efficiency. We have installed 648,000 advanced electricity meters for businesses and households. Under the project awarded by PUB in 2021 to supply, install and manage smart water meters, we are making steady progress in rolling out 309,100 smart water meters under the first phase of PUB’s Smart Water Meter Programme. With these meters, commercial and residential customers can track their electricity and water consumption, better understand their usage patterns and achieve better efficiency. - 4 - SP GROUP ANNUAL REPORT 2022 CHAIRMAN'S MESSAGE 2022 UPHOLDING SAFETY STANDARDS We carried out projects to lay more than 70km of durable polyethylene pipes to replace ageing ductile iron pipelines, thereby reducing the risk of gas leakage. Another key milestone was the completion of the in-line inspection operations for a subsea gas pipeline connecting Indonesia to Singapore to ensure integrity of the pipeline. We have adopted new technologies such as the implementation of a new gas enterprise asset management system. These initiatives will optimise operational effectiveness and enable us to better assess the condition of our assets in order to facilitate timely replacement and minimise unplanned interruption. SP is driving the national rollout of smart meters to help customers optimise their energy efficiency. We have installed 648,000 advanced electricity meters for businesses and households. Under the project awarded by PUB in 2021 to supply, install and manage smart water meters, we are making steady progress in rolling out 309,100 smart water meters under the first phase of PUB’s Smart Water Meter Programme. With these meters, commercial and residential customers can track their electricity and water consumption, better understand their usage patterns and achieve better efficiency. ACHIEVING STRONG FINANCIAL OUTLOOK As with all industries and markets around the world, we have grappled with a challenging and rapidly changing external environment. Despite this, SP has delivered another year of solid financial performance, staying the course in achieving our Strategy 2030 launched two years ago. For the year ended 31 March 2022, the Group recorded a Net Profit After Tax of S$2 billion after a one-time gain of S$1.1 billion (net of tax) due to the divestment of our stake in our investment in AusNet Services, to Brookfields Group. Including a special dividend of S$2 billion arising from the divestment, we will be declaring a record dividend of S$2.47 billion in the next financial year. Moody’s has raised the long-term credit ratings of Singapore Power, SP PowerAssets and SP Group Treasury from Aa2 to Aa1. Together with the upgrade by S&P in July 2021, SP Group is now rated Aa1 by Moody’s and AA+ by S&P. This signals the strong financial position of the SP Group. The updated ratings also represent the highest credit ratings that SP Group has achieved since 2003. - 5 - SP GROUP ANNUAL REPORT 2022 CHAIRMAN'S MESSAGE 2022 TOWARDS A LOW CARBON, SMART ENERGY FUTURE We develop and invest in solutions to enable the integration of more renewable energy sources in Singapore’s energy mix. We are accelerating the development of greener buildings and cities to achieve Singapore’s ambitious sustainability targets. outcomes captured under the United Nations Sustainable Development Goals 7 and 9 which are to ensure access to affordable, clean and sustainable energy for all, build reliable infrastructure, promote inclusion and industrialisation, and foster innovation. In our Sustainability Review, we outline progress in our Strategy 2030, with initiatives and SP is the largest district cooling solutions provider in Singapore. In the past year, we welcomed five - 6 - SP GROUP ANNUAL REPORT 2022 CHAIRMAN'S MESSAGE 2022 new upcoming developments to our flagship Marina Bay network, expanding our district cooling services to a total of 28 buildings that will benefit from our energy-efficient cooling services by 2026. This will help reduce almost 20,000 tonnes of carbon emissions annually, equivalent to removing 17,672 cars off our roads. SP continues to make progress with the expansion of our district cooling solutions to residential areas including Tampines and the upcoming Tengah housing estate by 2023. We are building Singapore’s largest industrial district cooling system that will serve ST Microelectronics (ST) at its Ang Mo Kio Technopark premises. Built in partnership with Daikin, it will have a cooling capacity of up to 36,000 refrigerant tonnes (RT), reaping 20 per cent savings in cooling-related electricity consumption for ST annually. When operational in 2025, the system will enable ST to reduce carbon emissions by up to 120,000 tonnes a year at the premises, equivalent to taking 109,090 cars off the road. Tampines will be Singapore’s first town centre to be retrofitted with SP’s cooling solution. Seven buildings will be plugged into SP’s distributed district cooling network, which is specially engineered for brownfield developments. The network will be completed and operational in 2025. In collaboration with the Housing and Development Board, we are progressing well in developing Singapore’s first residential centralised - 7 - SP GROUP ANNUAL REPORT 2022 CHAIRMAN'S MESSAGE 2022 cooling system for up to 22,000 households at the upcoming Tengah housing estate by 2023. As at 31 May 2022, there are 7,616 households – 90 per cent of units allocated – that have opted for SP’s centralised cooling solution. When these projects are completed, SP will be operating a total of 158,200 RT of cooling capacity, reinforcing SP’s position as the largest provider of district cooling solutions in Singapore. SP is the operator of Singapore's largest public high-speed EV charging network. SP is making strides in decarbonising Singapore’s transportation system. To accelerate our nation’s transition to electric mobility, we are building an extensive and highly accessible electric vehicle (EV) charging network across Singapore. With 525 EV charging points at over 100 locations as at 31 May 2022, SP is the operator of Singapore's largest public high-speed EV charging network. A first in Southeast Asia, SP rolled out a vehicle-to-grid (V2G) technology trial in 2021 to test and verify the possibility of tapping energy stored in EVs. This is to enhance grid reliability in order to support more than 600,000 vehicles when Singapore phases out internal combustion engine vehicles by 2040. - 8 - SP GROUP ANNUAL REPORT 2022 CHAIRMAN'S MESSAGE 2022 A first in Southeast Asia, SP rolled out the vehicle-to-grid technology trial to enhance grid reliability as Singapore phases out internal combustion engine vehicles. We are partnering Sembcorp Industries and Sarawak Energy to undertake a feasibility study for the development of cross-border transmission infrastructure for power exchange between Sarawak and Singapore. SP is deploying expertise in renewable energy solutions across several industrial and commercial properties. Last year, we deepened our partnership with Sembcorp Marine to deploy 4 MWp of solar energy across seven rooftops at the Tuas Boulevard Yard. With the additional rooftop solar installation, the yard’s solar power capacity of 8.5 MWp will deliver up to 10,400 MWh of electricity annually – enough to power more than 2,300 four-room flats per year. The solar energy generated will be integrated and optimised via SP’s Green Energy Tech (GETTM) to provide intelligent and reliable energy management to realise significant energy savings. With solutions like GET TenantCare, a smart and automated tenant sub-metering solution powered by SP Digital’s advanced metering infrastructure, we are empowering commercial customers, building owners and landlords to manage tenant utilities consumption efficiently. To date, 31 buildings, including Tampines Town Council, Defence Science and Technology Agency and Mercatus Co-operative Limited (Mercatus), are onboard the GET programme. Mercatus will deploy SP’s GET solutions and more than 700 smart electricity meters at three of its properties, namely AMK Hub, One Marina Boulevard and Jurong Point. Our suite of digital - 9 - SP GROUP ANNUAL REPORT 2022 CHAIRMAN'S MESSAGE 2022 solutions will help building owners enhance their operational efficiency, allowing them to deliver greater value to their tenants while advancing their own sustainability agenda. The SP app is a key enabler for our sustainable energy solutions to be accessible and convenient for consumers. As at 31 May 2022, the app has been downloaded 1.58 million times. Users benefit from tools, developed by SP Digital, that shape green lifestyle practices. Ground-up initiatives like GreenUp encourage users to take up sustainable and practical challenges and earn rewards. LEADING IN SUSTAINABLE ENERGY SOLUTIONS IN ASIA PACIFIC SP will deploy district cooling and heating, smart metering, energy management and monitoring solutions to transform the city of Wuhou to a smart eco-district. With our established track record in Singapore, there is growing demand for SP’s expertise in sustainable energy solutions in regional markets. In China, SP is partnering the Wuhou district, to transform the largest of five city centre districts in Chengdu, to a smart eco-district. SP will deploy district cooling and heating, smart metering, energy management and monitoring solutions to accelerate the city’s urban renewal masterplan. The project is a testament of SP’s expertise and capabilities in these low-carbon, smart energy solutions. Also underway are distributed solar projects in Shandong and Sichuan provinces. In Vietnam, we established our presence in Ho Chi Minh City and entered into a joint venture with Bamboo Capital Group Energy to develop 500MWp of rooftop solar assets power for - 10 - SP GROUP ANNUAL REPORT 2022 CHAIRMAN'S MESSAGE 2022 commercial and industrial customers. The joint venture has been welcomed by the market, as evidenced by the agreement with Vinamilk – Vietnam’s largest dairy company – for us to install rooftop solar across its nine factories and seven farms. We have inked a memorandum of understanding with Banpu NEXT to develop sustainable energy solutions in Thailand including district cooling, cross-border renewable energy certificates platform and distributed solar projects. EMPOWERING OUR PEOPLE We believe an engaged workforce is one where people are valued and equipped to contribute optimally. Notwithstanding the challenges of working with pandemic restrictions, our all-time high Employee Engagement Survey score of 87 per cent gives confidence of the strong commitment of our workforce to Strategy 2030 and our brand position of empowering the future of energy. We concluded four Collective Agreements with the Union of Power and Gas Employees. Various enhancements have been introduced including salary ranges, medical subsidies, and benefits to promote health, fitness and family bonding. As we develop the capabilities of our people and equip them for transformation in the energy landscape, we invested S$8 million and a total of 179,000 training hours last year. SP appointed seven senior engineers as Technical Experts to groom the next generation of engineers in emerging areas such as High-Pressure Gas Engineering, Condition Monitoring and Power Quality. - 11 - SP GROUP ANNUAL REPORT 2022 CHAIRMAN'S MESSAGE 2022 To deepen engineering knowledge and capabilities, we have introduced a Technical Expert development scheme and appointed seven senior engineers as our initial batch of Technical Experts. Backed by their wealth of knowledge and experience, they are mentors in grooming the next generation of engineers in emerging areas such as High-Pressure Gas Engineering, Condition Monitoring and Power Quality. With growing concerns about mental well-being, we have introduced a holistic series of initiatives under SP’s Workplace Health Programme for our 3,600 strong workforce. An Employee Assistance Programme was set up to offer a counselling channel to help staff deal with personal and work-related issues. Close to 100 of our staff have been trained as Care Ambassadors to render peer support and provide relevant assistance to colleagues who wish to seek professional help. SUPPORTING VULNERABLE COMMUNITIES SP has donated S$1.35 million to the Institute of Technical Education to set up the SP Group Engineering Study Award. We have remained steadfast in giving back to the community, through staff volunteerism, philanthropy and skills-based contributions. Last year, SP’s corporate social responsibility contributions totalled S$4.5 million in donations, sponsorships and volunteer manpower. In our annual SP Power Packs Charity Drive, we have committed a record high S$1.1 million to benefit 10,000 families, many of whom are seniors from low-income household. This five-fold increase from previous years enables us to provide more vulnerable families with essentials and care kits to guard against the pandemic. - 12 - SP GROUP ANNUAL REPORT 2022 CHAIRMAN'S MESSAGE 2022 SP has extended support to youth by donating S$1.35 million to the Institute of Technical Education to set up the SP Group Engineering Study Award. The funds will provide monthly financial support to 450 engineering school students from low-income families over the next three years. Since the launch of SP Kids at Heart in July 2021, SP Heart Workers – our staff volunteers – have put in time and effort to pack and deliver learning resources to pre-schoolers from low-income families, as part of our ongoing support to KidSTART. With the support of our business associates and the public, we raised S$1.8 million for the SP Heartware Fund towards programmes for seniors and pre-schoolers last year, making it a total of S$18 million since 2005. United in Singapore’s pandemic defence, our team of call agents doubled up as Home Recovery Buddies at MOH’s Case Management Contact Centre, to support those who have tested positive for COVID-19. Our call centre has also served as the public hotline for Temasek Foundation’s Stay Prepared initiatives and handled more than 180,000 phone calls during the provision of free face masks, hand sanitiser, oximeters and mouth gargle to all households in Singapore. IN APPRECIATION I would like to record my appreciation to Mr Ng Kwan Meng, who retired from the Board on 29 July 2022, for his invaluable contributions. I welcome Prof Yaacob bin Ibrahim who joined the Board in September 2021. I am also grateful to all Board members for your guidance and counsel. On behalf of the Board, I would like to express my appreciation to the management and staff for your unwavering efforts, pivoting to seize new opportunities for growth and transformation. I thank our shareholder, business partners, union and regulator for their close collaboration and continuous support. As we rise above the challenges of the past two years and embrace new opportunities, the future remains uncertain. However, I believe that with the strong partnership forged with our stakeholders, we will remain committed to creating greater value for our customers and empowering the future of energy together. Mohd Hassan Marican Chairman August 2022 - 13 - SP GROUP ANNUAL REPORT 2022 ANNUAL REPORT TABLE OF CONTENTS Singapore Power Limited and its subsidiaries Annual Report Year ended 31 March 2022 Table of Contents Directors’ statement 1 Independent Auditor’s Report Balance sheets 7 10 Income statements 11 Statements of comprehensive income 12 Statements of changes in equity 13 Consolidated statement of cash flows 16 Notes to the financial statements 18 1 Domicile and activities 18 2 Basis of preparation 18 2.1 Statement of compliance 18 2.2 Basis of measurement 18 2.3 Functional and presentation currency 18 2.4 Use of estimates and judgements 19 2.5 Changes in accounting policies 20 3 Significant accounting policies 21 3.1 Basis of consolidation 21 3.2 Foreign currencies 23 3.3 Property, plant and equipment 24 3.4 Intangible assets 25 3.5 Investment property under development 26 3.6 Financial instruments 27 3.7 Impairment 32 3.8 Inventories 34 3.9 Accrued revenue 34 3.10 Contract balances 34 3.11 Employee benefits 34 3.12 Provisions 35 3.13 Government grant 35 3.14 Deferred construction cost compensation 35 3.15 Deferred income 36 3.16 Regulatory deferral account (“RDA”) debit or credit balances 36 Singapore Power Limited and its subsidiaries Annual Report Year ended 31 March 2022 Table of Contents 3.17 Price regulation and licence 36 3.18 Revenue recognition 37 3.19 Leases 38 3.20 Finance income and costs 40 3.21 Tax expense 40 3.22 Segment reporting 41 3.23 New standards and interpretations not yet adopted 41 4 Property, plant and equipment 42 5 Right-of-use assets / Lease liabilities 44 6 Intangible assets 46 7 Investment property under development 48 8 Subsidiaries 48 9 Associates and joint ventures 50 10 Other non-current assets 54 11 Deferred taxation 56 12 Derivative assets and liabilities 58 13 Investments in debt and equity securities 64 14 Inventories 64 15 Trade and other receivables 65 15a Trade receivables 65 15b Other receivables, deposits and prepayments 67 15c Balances with subsidiaries, associate and joint venture (non-trade) 68 16 Cash and cash equivalents 68 17 Regulatory deferral accounts 69 18 Share capital 71 19 Reserves 71 20 Debt obligations 73 21 Other non-current liabilities 75 21a Deferred income 75 21b Deferred construction cost compensation 76 21c Provisions 76 22 Trade and other payables 77 22a Other payables and accruals 77 23 Revenue 78 Singapore Power Limited and its subsidiaries Annual Report Year ended 31 March 2022 Table of Contents 24 Other income 25 Finance income 26 Finance costs 27 Tax expense 28 Profit for the year 29 Related parties 30 Operating segments 31 Financial risk management 32 Fair values 33 Commitments 34 Dividends 79 79 80 81 82 83 84 87 97 100 101 Singapore Power Limited and its subsidiaries Directors’ statement Year ended 31 March 2022 1 Directors’ statement We are pleased to submit this annual report to the member of Singapore Power Limited (the “Company”) together with the audited financial statements for the financial year ended 31 March 2022. Opinion of the Directors In our opinion, (a) (b) the financial statements are drawn up so as to give a true and fair view of the financial position of the Company and its subsidiaries (the “Group”) as at 31 March 2022 and the financial performance, changes in equity and cash flows of the Group and of the financial performance and changes in equity of the Company for the year ended on that date in accordance with the provisions of the Companies Act 1967 (the “Act”) and Singapore Financial Reporting Standards (International) (“SFRS(I)”); and at the date of this statement, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they fall due. Directors The directors in office at the date of this statement are as follows: Tan Sri Mohd Hassan Marican Ms Leong Wai Leng Mr Ong Yew Huat Mr Timothy Chia Chee Ming Mr Ng Kwan Meng Ms Goh Swee Chen Mr Lee Kim Shin Prof Yaacob Bin Ibrahim (appointed on 1 September 2021) Mr Stanley Huang Tian Guan Directors’ interests According to the register kept by the Company for the purposes of Section 164 of the Act, particulars of interests of directors who held office at the end of the financial year (including those held by their spouses and infant children) in shares, debentures, warrants and share options in the Company and in related corporations are as follows: Singapore Power Limited and its subsidiaries Directors’ statement Year ended 31 March 2022 2 Name of director and related corporations in which interests (fully paid ordinary shares unless otherwise stated) are held Holdings at beginning of the year / date of appointment Holdings at end of the year Tan Sri Mohd Hassan Marican Singapore Airlines Limited - 3.13% Notes due 2026 CapitaLand Treasury Limited - 4.076% Notes due 20 September 2022 Sembcorp Marine Ltd # CapitaLand Integrated Commercial Trust – units Mapletree Commercial Trust – units S$250,000 USD200,000 – – – S$250,000 USD200,000 9,694,126 1 41,976 62,653 Ms Leong Wai Leng CapitaLand Limited CapitaLand Investment Limited CapitaLand Integrated Commercial Trust – units Mapletree Commercial Trust – units Mapletree Commercial Trust - 3.11% Notes due 24 August 2026 Mapletree Industrial Trust – units Mapletree Real Estate Advisors Pte. Ltd. – units - Great Cities Logistics (US) Trust - Great Cities Logistics (Europe) Trust - Mapletree Global Student Accommodation Pte Trust - USD – Class A units - GBP – Class B units 40,000 – 689,700 39,057 S$250,000 –* 40,000* 695,886* 39,057 S$250,000 450 500 371 371 371 371 1,685 1,685 1,685 1,685 Mapletree Treasury Services Limited - 3.58% Bonds due 2029 - 3.15% Notes due 3 September 2031 S$250,000 S$250,000 S$250,000 S$250,000 1 The shares are held in the name of Credit Suisse AG Singapore Singapore Power Limited and its subsidiaries Directors’ statement Year ended 31 March 2022 3 Name of director and related corporations in which interests (fully paid ordinary shares unless otherwise stated) are held Holdings at beginning of the year / date of appointment Holdings at end of the year Singapore Airlines Limited 9,800 9,800 Singapore Airlines Limited - Mandatory Convertible Bonds SIA MCBZ300608 - SIA MCBZ 2021 Singapore Airlines Limited - 3.145% Notes due 8 April 2021 - 3.16% Notes due 2023 Singapore Technologies Engineering Ltd Singapore Technologies Telemedia Pte Ltd - 4.05% Notes due 2 December 2025 - STT GDC 3.13% Bonds due 28 July 2028 Singapore Telecommunications Limited StarHub Limited Altrium Private Equity Fund I GP Limited - Interest as limited partner in the Altrium PE Fund I F&F L.P. Fund Altrium Private Equity Fund II GP Limited - Interest as limited partner in the Altrium PE Fund II F&F L.P. Fund Vertex Master Fund II (GP) Pte. Ltd. - Interest as limited partner in Vertex Master Fund II Ascendas Real Estate Investment Trust - 2.47% Notes due 10 August 2023 2 Astrea IV Pte. Ltd. - 4.35% Class-A1 Secured Bonds due 14 June 2028 - 6.75% Class-B Secured Bonds due 14 June 2028 Astrea V Pte. Ltd. - 3.85% Class-A1 Secured Bonds due 20 June 2029 - 4.50% Class-A2 Secured Bonds due 20 June 2029 17,000 – S$250,000 S$250,000 41,000 S$250,000 S$500,000 22,027 36,000 36,000 Commitment amount of USD500,000 – Commitment amount of USD500,000 S$250,000 S$336,000 USD200,000 S$214,000 USD200,000 17,000 20,482 – S$250,000 – S$250,000 S$500,000 22,027 Commitment amount of USD500,000 Commitment amount of USD1,000,000 Commitment amount of USD500,000 S$250,000 S$336,000 USD200,000 S$214,000 USD200,000 2 Held jointly with spouse. Singapore Power Limited and its subsidiaries Directors’ statement Year ended 31 March 2022 4 Name of director and related corporations in which interests (fully paid ordinary shares unless otherwise stated) are held Holdings at beginning of the year / date of appointment Holdings at end of the year Astrea VI Pte. Ltd. - 3.00% Class-A1 Secured Bonds due 18 March 2031 - 3.25% Class-A2 Secured Bonds due 18 March 2031 - 4.35% Class-B Secured Bonds due 18 March 2031 S$105,000 USD200,000 USD400,000 S$105,000 USD200,000 USD400,000 Fullerton Fund Management Company Ltd - Fullerton Optimised Alpha Fund Class A USD – units - Fullerton USD Income Fund Class A (SGD hedged) – – 5,000 S$500,000 Temasek Financial (IV) (Private) Limited - 1.8% 5-years T2026 S$ Temasek Bond – S$30,000 Mr Ong Yew Huat Sembcorp Marine Ltd # – 500,000 Mr Timothy Chia Chee Ming Singapore Telecommunications Limited Vertex Master Fund II (GP) Pte. Ltd. - Interest as limited partner in VMII Affiliates Fund LP Vertex Venture Holdings Ltd Commitment amount of USD250,000 2,070 2,070 Commitment amount of USD250,000 - 3.30% Notes due 2028 – S$250,000 Mr Ng Kwan Meng Singapore Telecommunications Limited Singapore Technologies Engineering Ltd Starhub Limited Mapletree North Asia Commercial Trust – units Sembcorp Marine Ltd # CapitaLand Integrated Commercial Trust – units CapitaLand Limited CapitaLand Investment Limited 85,350 25,000 6,000 22,000 – 153,184 61,000 – 85,350 5,000 6,000 – 1,720,000 162,618* –* 61,000* Singapore Power Limited and its subsidiaries Directors’ statement Year ended 31 March 2022 5 Name of director and related corporations in which interests (fully paid ordinary shares unless otherwise stated) are held Holdings at beginning of the year / date of appointment Holdings at end of the year Ms Goh Swee Chen CapitaLand Limited CapitaLand Investment Limited CapitaLand Integrated Commercial Trust – units Singapore Telecommunications Limited Singapore Airlines Limited Singapore Airlines Limited - Mandatory Convertible Bond SIA MCBZ300608 34,592 – – 5,000 18,550 3,835 –* 46,709* 7,224* 5,000 18,550 42,604 Mr Lee Kim Shin Singapore Telecommunications Limited Singapore Airlines Limited Singapore Airlines Limited - SIA MCBZ 2021 Ascott Residence Trust – units 190 19,800 – 4,644 190 26,000 41,382 4,644 Prof Yaacob Bin Ibrahim Ascendas India Trust – units Ascott Residence Trust – units Singapore Airlines Limited 100,000 26,208 5,000 100,000 26,208 5,000 # Related corporation with effect from 11 November 2021 * Scheme of arrangement by CapitaLand Limited (“CapitaLand”), pursuant to which every 1 CapitaLand Limited share was exchanged for 1 share in CapitaLand Investment Limited, 0.154672686 unit in CapitaLand Integrated Commercial Trust, and S$0.951 in cash. Singapore Power Limited and its subsidiaries Directors’ statement Year ended 31 March 2022 6 Except as disclosed in this statement, no director who held office at the end of the financial year had interests in shares, debentures, warrants or share options of the Company, or of related corporations, either at the beginning of the financial year, or at the end of the financial year. Neither at the end of, nor at any time during the financial year, was the Company a party to any arrangement whose objects are, or one of whose objects is, to enable the directors of the Company to acquire benefits by means of the acquisition of shares or debentures of the Company or any other body corporate. Share Options During the financial year, there were: (i) (ii) no options granted by the Company or its subsidiaries to any person to take up unissued shares in the Company; and no shares issued by virtue of any exercise of option to take up unissued shares of the Company or its subsidiaries. As at the end of the financial year, there were no unissued shares of the Company or its subsidiaries under option. On behalf of the Board of Directors TAN SRI MOHD HASSAN MARICAN Chairman MR STANLEY HUANG TIAN GUAN Director / Group Chief Executive Officer 2 June 2022 Singapore Power Limited and its subsidiaries Independent auditor’s report Year ended 31 March 2022 7 Independent Auditor’s Report to the Member of Singapore Power Limited Opinion Independent Auditor’s Report For the financial year ended 31 March 2022 Report on the Audit of 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 2022, the income statements, statements of comprehensive income, statements of changes in equity of the Group and the Company and statement of cash flows of the Group for the financial year then ended, and notes to the financial statements, including a summary of significant accounting policies. In our opinion, the accompanying consolidated financial statements of the Group, the balance sheet, income statement, statement of comprehensive income and statement of changes in equity of the Company are properly drawn up in accordance with the provisions of the Companies Act 1967 (the “Act”) and Singapore Financial Reporting Standards (International) (“SFRS(I)”) so as to give a true and fair view of the financial position of the Group and of the Company as at 31 March 2022 and of the financial performance, changes in equity of the Group and the Company and consolidated cash flows of the Group for the year ended on that date. Basis for Opinion We conducted our audit in accordance with Singapore Standards on Auditing (“SSAs”). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Group in accordance with the Accounting and Corporate Regulatory Authority (“ACRA”) Code of Professional Conduct and Ethics for Public Accountants and Accounting Entities (“ACRA Code”) together with the ethical requirements that are relevant to our audit of the financial statements in Singapore, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ACRA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Other Information Management is responsible for other information. The other information comprises the directors’ statement. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Singapore Power Limited and its subsidiaries Independent auditor’s report Year ended 31 March 2022 8 Responsibilities of Management and Directors for the Financial Statements Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the provisions of the Act and SFRS(I), and for devising and maintaining a system of internal accounting controls sufficient to provide a reasonable assurance that assets are safeguarded against loss from unauthorised use or disposition; and transactions are properly authorised and that they are recorded as necessary to permit the preparation of true and fair financial statements and to maintain accountability of assets. In preparing the financial statements, management is responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so. The directors’ responsibilities include overseeing the Group’s financial reporting process. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with SSAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. • Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern. Singapore Power Limited and its subsidiaries Independent auditor’s report Year ended 31 March 2022 9 • Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. • Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Report on Other Legal and Regulatory Requirements In our opinion, the accounting and other records required by the Act to be kept by the Company and by those subsidiaries incorporated in Singapore of which we are the auditors have been properly kept in accordance with the provisions of the Act. Ernst & Young LLP Public Accountants and Chartered Accountants Singapore 2 June 2022 Singapore Power Limited and its subsidiaries Financial statements Year ended 31 March 2022 10 Balance sheets As at 31 March 2022 Group Company Non-current assets Property, plant and equipment Intangible assets Investment property under development Subsidiaries Associates and joint ventures Other non-current assets Deferred tax assets Derivative assets Investments in debt and equity securities Current assets Inventories Trade and other receivables Derivative assets Cash and cash equivalents Investments in debt and equity securities Total assets Regulatory deferral accounts (“RDA”) debit balances and related deferred tax assets Total assets and RDA debit balances Note 4 6 7 8 9 10 11 12 13 14 15 12 16 13 17 2022 $ million 13,828.7 111.3 765.0 – 1,622.3 343.7 21.7 133.6 56.0 16,882.3 47.4 795.7 113.6 4,207.8 413.9 5,578.4 22,460.7 499.5 22,960.2 2021 $ million 13,693.2 150.9 728.2 – 2,907.2 337.9 100.5 256.2 29.7 18,203.8 46.7 462.2 3.5 1,187.2 – 1,699.6 19,903.4 454.7 20,358.1 2022 $ million 23.4 14.9 – 5,043.7 45.4 – – – # – 5,127.4 – 4,095.2 5.0 1.3 – 4,101.5 9,228.9 – 9,228.9 2021 $ million 16.3 16.2 – 5,524.6 45.4 – – – # – 5,602.5 – 3,070.4 – # 0.8 – 3,071.2 8,673.7 – 8,673.7 Equity Share capital Reserves Accumulated profits Total equity, attributable to owner of the Company 18 19 2,911.9 (97.2) 11,143.9 2,911.9 (424.3) 9,491.4 2,911.9 – # 6,246.6 2,911.9 – 5,712.8 13,958.6 11,979.0 9,158.5 8,624.7 Non-current liabilities Debt obligations Derivative liabilities Deferred tax liabilities Other non-current liabilities Lease liabilities Current liabilities Debt obligations Derivative liabilities Current tax payable Trade and other payables Lease liabilities Total liabilities Total equity and liabilities RDA credit balances and related deferred tax liabilities Total equity, liabilities and RDA credit balances 20 12 11 21 5 20 12 22 5 17 3,377.9 160.5 1,699.7 479.7 32.2 5,750.0 908.2 143.0 645.6 1,484.6 5.8 3,187.2 8,937.2 22,895.8 64.4 22,960.2 4,369.7 101.3 1,748.4 498.8 34.9 6,753.1 173.6 7.6 67.0 1,314.4 5.9 1,568.5 8,321.6 20,300.6 57.5 20,358.1 – – # 1.4 – – 1.4 – 5.1 0.4 57.6 5.9 70.4 9,228.9 – 9,228.9 – – 1.4 – – 1.4 – – 0.6 47.0 – 69.0 47.6 49.0 8,673.7 – 8,673.7 # Amount is less than $0.1 million The accompanying notes form an integral part of these financial statements. Singapore Power Limited and its subsidiaries Financial statements Year ended 31 March 2022 11 Income statements As at 31 March 2022 Group Company Note 2022 $ million 2021 $ million 2022 $ million 2021 $ million Revenue Other income Expenses - Purchased power - Depreciation of property, plant and equipment - Amortisation of intangible assets - Maintenance - Staff costs - Property taxes - Other operating expenses Operating profit Finance income Finance costs Share of profits of associates, net of tax Share of losses of joint ventures, net of tax Profit before taxation Tax (expense) / credit Profit for the year attributable to owner of the Company Net movement in RDA balances related to profit or loss and the related deferred tax movement Profit for the year and net movements in RDA balances, attributable to owner of the Company 23 24 5,213.5 1,683.7 (2,806.7) 3,574.1 188.9 (1,473.1) 1,040.1 11.0 – 754.8 9.5 – 4 (790.3) (757.4) (9.9) (8.3) 6 (55.7) (56.1) (5.6) (3.5) (141.1) (126.4) (10.5) (9.0) (324.7) (319.9) (73.9) (72.7) (93.9) (99.2) (0.3) (0.3) (191.4) (145.3) (37.2) (61.0) 2,493.4 785.6 903.7 609.5 25 26 58.6 (85.0) 164.0 45.3 (79.7) 180.0 19.4 (0.1) – 33.9 (0.1) – (5.7) (6.0) – – 2,625.3 925.2 923.0 643.3 27 28 17 (660.3) 1,965.0 37.9 (197.8) 727.4 249.3 0.8 923.8 – 5.3 648.6 – 2,002.9 976.7 923.8 648.6 The accompanying notes form an integral part of these financial statements. Singapore Power Limited and its subsidiaries Financial statements Year ended 31 March 2022 12 Statements of comprehensive income Year ended 31 March 2022 Group Company 2022 $ million 2021 $ million 2022 $ million 2021 $ million Profit for the year and net movements in RDA balances 2,002.9 976.7 923.8 648.6 Other comprehensive income Items that will not be reclassified to profit or loss: Share of defined benefit plan remeasurements of associates 10.1 10.1 9.3 – – 9.3 – – Items that are or may be reclassified subsequently to profit or loss: Translation differences relating to financial statements of foreign operations (86.7) 446.7 – – Effective portion of changes in fair value of cash flow hedges, net of tax 41.0 31.7 – # (0.2) Net change in fair value of: - Cash flow hedges reclassified to profit or loss, net of tax (5.3) 10.2 – – - Cash flow hedges on recognition of the hedged items on balance sheet, net of tax 0.6 2.1 – # (0.1) Share of hedging reserves of associates Disposal of interest in an associate Other comprehensive income for 211.1 148.9 – – 195.9 – – – 356.6 639.6 – # (0.3) the year, net of tax 366.7 648.9 – # (0.3) Total comprehensive income for the year, attributable to owner of the Company 2,369.6 1,625.6 923.8 648.3 # Amount is less than $0.1 million The accompanying notes form an integral part of these financial statements. Singapore Power Limited and its subsidiaries Financial statements Year ended 31 March 2022 13 Statements of changes in equity Year ended 31 March 2022 Group Share capital $ million Currency translation reserve $ million Hedging reserve $ million Other reserves $ million Accumulated profits $ million Total equity, attributable to owner of the Company $ million At 1 April 2020 Total comprehensive income for the year Profit for the year and net movement in RDA balances Other comprehensive income Translation differences relating to financial statements of foreign operations Effective portion of changes in fair value of cash flow hedges, net of tax Net change in fair value of: - Cash flow hedges reclassified to profit or loss, net of tax - Cash flow hedges on recognition of the hedged items on balance sheet, net of tax Share of other comprehensive income of associates Total other comprehensive income Total comprehensive income for the year 2,911.9 (810.1) (282.7) 19.6 8,920.7 10,759.4 – – – – 976.7 976.7 – 446.7 – – – 446.7 – – 31.7 – – 31.7 – – 10.2 – – 10.2 – – 2.1 – – 2.1 – – 148.9 9.3 – 158.2 – 446.7 192.9 9.3 – 648.9 – 446.7 192.9 9.3 976.7 1,625.6 Transactions with owner, recognised directly in equity Distribution to owner Dividends declared (Note 34) Total transactions with owner At 31 March 2021 – – – – (406.0) (406.0) – – – – (406.0) (406.0) 2,911.9 (363.4) (89.9) 28.9 9,491.4 11,979.0 # Amount is less than $0.1 million The accompanying notes form an integral part of these financial statements. Singapore Power Limited and its subsidiaries Financial statements Year ended 31 March 2022 14 Statements of changes in equity Year ended 31 March 2022 Group Share capital $ million Currency translation reserve $ million Hedging reserve $ million Other reserves $ million Accumulated profits $ million Total equity, attributable to owner of the Company $ million At 1 April 2021 2,911.9 (363.4) (89.8) 28.9 9,491.4 11,979.0 Total comprehensive income for the year Profit for the year and net movement in RDA balances – – – – 2,002.9 2,002.9 Other comprehensive income Translation differences relating to financial statements of foreign operations – (86.7) – – – (86.7) Effective portion of changes in fair value of cash flow hedges, net of tax Net change in fair value of: – – 41.0 – – 41.0 - Cash flow hedges reclassified to profit or loss, net of tax – – (5.3) – – (5.3) - Cash flow hedges on recognition of the hedged items on balance sheet, net of tax – – 0.6 – – 0.6 Share of other comprehensive income of associates – – 211.1 10.1 – 221.2 Disposal of interest in an associate – 231.9 (36.0) (39.6) 39.6 195.9 Total other comprehensive income – 145.2 211.4 (29.5) 39.6 366.7 Total comprehensive income for the year – 145.2 211.4 (29.5) 2,042.5 2,369.6 Transactions with owner, recognised directly in equity Distribution to owner Dividends declared (Note 34) Total transactions with owner – – – – (390.0) (390.0) – – – – (390.0) (390.0) At 31 March 2022 2,911.9 (218.2) 121.6 (0.6) 11,143.9 13,958.6 # Amount is less than $0.1 million The accompanying notes form an integral part of these financial statements. Singapore Power Limited and its subsidiaries Financial statements Year ended 31 March 2022 15 Statements of changes in equity Year ended 31 March 2022 Share capital $ million Hedging reserve $ million Accumulated profits $ million Total $ million Company At 1 April 2020 2,911.9 0.3 5,470.2 8,382.4 Total comprehensive income for the year Profit for the year – – 648.6 648.6 Other comprehensive income Effective portion of changes in fair value of cash flow hedges, net of tax – (0.2) – (0.2) Net change in fair value of: - Cash flow hedges on recognition of the hedged items on balance sheet, net of tax – (0.1) – (0.1) Total other comprehensive income – (0.3) – (0.3) Total other comprehensive income for the year – (0.3) 648.6 648.3 Transactions with owner, recognised directly in equity Dividends declared (Note 34) – – (406.0) (406.0) Total transactions with owner – – (406.0) (406.0) At 31 March 2021 2,911.9 – 5,712.8 8,624.7 At 1 April 2021 2,911.9 – 5,712.8 8,624.7 Total comprehensive income for the year Profit for the year – – 923.8 923.8 Other comprehensive income Effective portion of changes in fair value of cash flow hedges, net of tax – – # – – # Net change in fair value of: - Cash flow hedges on recognition of the hedged items on balance sheet, net of tax – – # – – # Total other comprehensive income – – # – – # Total other comprehensive income for the year – – # 923.8 923.8 Transactions with owner, recognised directly in equity Dividends declared (Note 34) – – (390.0) (390.0) Total transactions with owner – – (390.0) (390.0) At 31 March 2022 2,911.9 – # 6,246.6 9,158.5 # Amount is less than $0.1 million The accompanying notes form an integral part of these financial statements. Singapore Power Limited and its subsidiaries Financial statements Year ended 31 March 2022 16 Consolidated statement of cash flows Year ended 31 March 2022 Note 2022 $ million 2021 $ million Cash flows from operating activities Profit for the year and net movements in RDA balances 2,002.9 976.7 Adjustments for: Deferred income (20.0) (23.9) RDA debit or credit balances and related deferred tax assets or liabilities (37.9) (249.3) Depreciation and amortisation 846.0 813.5 Finance costs 26 90.3 83.5 Finance income 25 (58.6) (45.3) Exchange loss / (gain), net 28 0.9 (14.7) Loss on disposal of property, plant and equipment and intangible assets 11.7 1.2 Impairment loss on intangible assets and property, plant and equipment 2.4 5.0 Gain on disposal of interest in an associate 24 (1,532.0) – Share of profit of associates and joint ventures, net of tax (158.3) (174.0) Tax expense 27 660.3 197.8 Write-down of inventory 14 8.4 5.3 Allowance for expected credit loss on trade receivables, net 15a 14.7 13.9 Net fair value gain on equity investments at FVTPL 26 (5.3) (3.8) Others 5.0 3.4 1,830.5 1,589.3 Changes in working capital: Inventories (9.1) (2.6) Trade and other receivables and contract assets (304.5) 4.3 Balances with related parties (trade) 6.1 10.6 Trade and other payables 214.9 (10.4) Cash generated from operations 1,737.9 1,591.2 Interest received 34.3 64.7 Net tax paid (30.0) (63.4) Net cash generated from operating activities 1,742.2 1,592.5 The accompanying notes form an integral part of these financial statements. Singapore Power Limited and its subsidiaries Financial statements Year ended 31 March 2022 17 Consolidated statement of cash flows (continued) Year ended 31 March 2022 Note 2022 $ million 2021 $ million Cash flows from investing activities Purchase of property, plant and equipment (1,006.2) (986.4) Purchase of intangible assets (18.1) (40.7) Proceeds from disposal of property, plant and equipment and intangible assets 6.3 5.5 Proceeds from disposal of interest in an associate 3,154.1 – Dividends received from associates and joint venture 153.8 146.9 Proceeds from redemption of other investment – 5.0 Acquisition of interest in associates and joint venture (24.4) (42.7) Loans to a joint venture (46.4) – Payments for investments in debt securities (413.4) – Acquisition of other investments (21.3) (14.4) Additions to investment property (36.9) (6.6) Net cash generated from / (used in) investing activities 1,747.5 (933.4) Cash flows from financing activities Proceeds from loans 83.2 156.0 Proceeds from termination of derivatives 19.5 – Repayment of debt obligations (176.5) (797.1) Dividends paid to owner of the Company (390.0) (406.0) Interest paid (81.8) (108.9) Commitment fees paid – (1.5) Upfront fees paid for credit facilities (2.6) – Payment of principal portion of lease liabilities (6.2) (5.9) Net cash used in financing activities (554.4) (1,163.4) Net increase / (decrease) in cash and cash equivalents 2,935.3 (504.3) Cash and cash equivalents at beginning of the year 1,187.2 1,673.4 Effect of exchange rate changes on balances held in foreign currencies 85.3 18.1 Cash and cash equivalents at end of the year 16 4,207.8 1,187.2 The accompanying notes form an integral part of these financial statements. Singapore Power Limited and its subsidiaries Financial statements Year ended 31 March 2022 18 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 2 June 2022. 1 Domicile and activities Singapore Power Limited (the “Company”) is incorporated in the Republic of Singapore and has its registered office at 2 Kallang Sector, SP Group Building, Singapore 349277. The immediate and ultimate holding company is Temasek Holdings (Private) Limited, a company incorporated in the Republic of Singapore. The principal activities of the Company are that of investment holding and provision of management support services. Its subsidiaries are engaged principally in the transmission and distribution of electricity and gas, provision of related consultancy services and investments in related projects. The consolidated financial statements relate to the Company and its subsidiaries (together referred to as the “Group”) and the Group’s interests in associates and joint ventures (collectively referred to as “Group entities”). 2 Basis of preparation 2.1 Statement of compliance The financial statements have been prepared in accordance with the Singapore Financial Reporting Standards (International) (“SFRS(I)”). 2.2 2.3 Basis of measurement The financial statements have been prepared on the historical cost basis except as disclosed in the accounting policies set out below. Functional and presentation currency These financial statements are presented in Singapore dollars, which is the Company’s functional currency. Each entity in the Group determines its own functional currency and items included in the financial statements of each entity are measured using that functional currency. All financial information presented in Singapore dollars has been rounded to the nearest 0.1 million, unless otherwise stated. Singapore Power Limited and its subsidiaries Financial statements Year ended 31 March 2022 19 2.4 Use of estimates and judgements The preparation of financial statements in conformity with SFRS(I) 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 critical judgements in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements is discussed below: Taxation The Group is subject to taxes mainly in Singapore and Australia. Significant judgement is required in determining provision for taxes. There are many transactions and calculations during the ordinary course of business for which the ultimate tax determination is uncertain. The Group recognises liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made. Details are set out in Note 11 and Note 27. Impairment of associates Impairment reviews in respect of associates are performed at least annually or when there is any indication that the investment in associates may be impaired. More regular reviews are performed if changes in circumstances or the occurrence of events indicate potential impairment. The Group uses the present value of future cash flows to determine the recoverable amounts of the underlying cash generating units in the associates. In calculating the recoverable amounts, significant management judgement is required in forecasting cash flows of the cash generating units, in estimating the terminal growth values and in selecting an appropriate discount rate. 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 31 sets out the basis of valuation of financial assets and liabilities. Accrued revenue Revenue accrual estimates are made to account for the unbilled period between the end-user’s last billing date and the end of the accounting period. The accrual relies on detailed analysis of customers’ historical consumption patterns, which takes into account base usage and sensitivity to consumption growth. The results of this analysis are applied for the number of days over the unbilled period. Singapore Power Limited and its subsidiaries Financial statements Year ended 31 March 2022 20 Regulatory deferral accounts Regulatory deferral account debit or credit balances represent timing differences between revenue recognised for financial reporting purposes (as set out in Note 3.18) and revenue earned for regulatory purposes. Revenue earned for regulatory purposes is estimated based on the revenue allowed by the Energy Market Authority (“EMA”) (in accordance with the price regulation framework), taking into consideration the services rendered, sale and volume of electricity and gas delivered to consumers. Note 3.16 sets out the accounting policy for regulatory deferral accounts. 2.5 Changes in accounting policies Adoption of new and revised SFRS(I)s and Interpretation to SFRS(I) The Group has applied the Amendments to SFRS(I) 9, SFRS(I) 1-39, SFRS(I) 7, SFRS(I) 4, SFRS(I) 16: Interest Rate Benchmark Reform – Phase 2 which is effective for annual financial periods beginning on or after 1 April 2021. The Phase 2 amendments provide practical relief from certain requirements in SFRS(I) Standards. The amendment most relevant to the Group is where it provides for a series of temporary exceptions from certain hedge accounting requirements when a change required by the interest rate benchmark reform occurs to a hedge item and / or hedging instrument that permit the hedge relationship to be continued without interruption. The Group applies the following reliefs as and when uncertainty arising the from interest rate benchmark reform is no longer present with respect to the timing and the amount of the interest rate benchmark-based cash flows of the hedged item or hedging instrument: • the Group amends the designation of a hedging relationship to reflect changes that are required by the reform without discontinuing the hedging relationship; and • when a hedged item in a cash flow hedge is amended to reflect the changes that are required by the reform, the amount accumulated in the hedging reserve is deemed to be based on the alternative benchmark rate on which the hedged future cash flows are determined. The details of the accounting policies and related disclosures on financial risk management are disclosed in Note 3.6 and 31. There was no significant financial impact to the Group as a result of these amendments. Singapore Power Limited and its subsidiaries Financial statements Year ended 31 March 2022 21 3 Significant accounting policy The accounting policies set out below have been applied consistently for all periods presented in these financial statements, and have been consistently applied by the Group entities, which addresses changes in accounting policies due to the adoption of new and revised standards. 3.1 Basis of consolidation Business combinations Business combinations are accounted for using the acquisition method as at the acquisition date, which is the date on which control is transferred to the Group. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, the Group takes into consideration potential voting rights that are currently exercisable. The consideration transferred does not include amounts related to the settlement of pre-existing relationships. Such amounts are generally recognised in profit or loss. Costs related to the acquisition, other than those associated with the issue of debt or equity securities, that the Group incurs in connection with a business combination are expensed as incurred. Any contingent consideration payable is recognised at fair value at the acquisition date and included in the consideration transferred. If the contingent consideration is classified as equity, it is not remeasured and settlement is accounted for within equity. Otherwise, subsequent changes to the fair value of the contingent consideration are recognised in profit or loss. For non-controlling interests that are present ownership interests and entitle their holders to a proportionate share of the acquiree’s net assets in the event of liquidation, the Group elects on a transaction-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. Any excess or deficiency of the purchase consideration over the fair value of the identifiable assets acquired and liabilities and contingent liabilities assumed is accounted for as goodwill or bargain purchase gain (see Note 3.4). Subsidiaries Subsidiaries are entities controlled by the Group. The Group controls an investee when it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. In the Company’s separate financial statements, investments in subsidiaries are accounted for at cost less impairment losses. The accounting policies of subsidiaries have been changed when necessary to align them with the policies adopted by the Group. Losses applicable to the non-controlling interests in a subsidiary are allocated to the non-controlling interests even if doing so causes the non-controlling interests to have a deficit balance. Singapore Power Limited and its subsidiaries Financial statements Year ended 31 March 2022 22 Loss of control Upon the loss of control, the Group de-recognises the assets and liabilities of the subsidiary, any non-controlling 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 equity investment at fair value through other comprehensive income depending on the level of influence retained. Joint arrangements A joint arrangement is a contractual arrangement whereby two or more parties have joint control. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. To the extent the joint arrangement provides the Group with rights to the assets and obligations for the liabilities relating to the arrangement, the arrangement is a joint operation. To the extent the joint arrangement provides the Group with rights to the net assets of the arrangement, the arrangement is a joint venture. The Group recognises its interest in a joint venture as an investment and accounts for the investment using the equity method. The accounting policy for investment in joint venture is set out below. Investments in associates and joint ventures (equity-accounted investees) An associate is an entity over which the Group has the power to participate in the financial and operating policy decisions of the investee but does not have control or joint control of those policies. Investments in associates and joint ventures are accounted for using the equity method (equity-accounted investees) and are recognised initially at cost. The Group’s investments in equity-accounted investees include goodwill identified on acquisition, net of any accumulated impairment losses. The consolidated financial statements include the Group’s share of the profit or loss and other comprehensive income of the equity-accounted investees, after adjustments to align the accounting policies of the equity-accounted investees with those of the Group, from the date that significant influence or joint control commences until the date that significant influence or joint control ceases. When the Group’s share of losses exceeds its interest in an equity-accounted investee, the carrying amount of the investment, together with any long-term interests that form part thereof, is reduced to zero and the recognition of further losses is discontinued except to the extent that the Group has an obligation to fund the investee’s operations or has made payments on behalf of the investee. Singapore Power Limited and its subsidiaries Financial statements Year ended 31 March 2022 23 Acquisition of non-controlling interests Acquisitions of non-controlling interests are accounted for as transactions with owners in their capacity as owners and therefore no goodwill is recognised as a result of such transactions. The adjustments to non-controlling interests arising from transactions that do not involve the loss of control are based on a proportionate amount of the net assets of the subsidiary. Any difference between the adjustment to non-controlling interests and the fair value of consideration paid is recognised directly in equity and presented as part of equity attributable to owners of the Company. Transactions eliminated on consolidation Intra-group balances and transactions, and any unrealised income or expenses arising from intra-group transactions, are eliminated in preparing the consolidated financial statements. Unrealised gains arising from transactions with equity-accounted investees are eliminated against the investment to the extent of the Group’s interest in the investee. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment. Accounting for subsidiaries and joint ventures by the Company Investments in subsidiaries and joint ventures are stated in the Company’s balance sheet at cost less accumulated impairment losses. 3.2 Foreign currencies Foreign currency transactions Transactions in foreign currencies are translated to the respective functional currencies of Group entities at the exchange rates at the dates of the transactions. The functional currencies of the Group entities are mainly Singapore dollars, Australian dollars and Chinese Yuan Renminbi. Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated to the functional currencies at the exchange rate at the reporting date. The foreign currency gain or loss on monetary items is the difference between amortised cost in the functional currency at the beginning of the year, adjusted for effective interest and payments during the year, and the amortised cost in foreign currency translated at the exchange rate at the end of the year. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional currency at the exchange rate prevailing on the date on which the fair value was determined. Non-monetary items in a foreign currency that are measured in terms of historical cost are translated using the exchange rate at the date of the transaction. Foreign currency differences arising on translation are recognised in profit or loss, except for differences arising on the translation of a financial liability designated as a hedge of the net investment in a foreign operation that is effective, an equity investment at fair value through other comprehensive income, 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. Singapore Power Limited and its subsidiaries Financial statements Year ended 31 March 2022 24 Foreign currency differences are recognised in other comprehensive income, and presented in the foreign currency translation reserve (“translation reserve”) in equity. However, if the foreign operation is a non-wholly-owned subsidiary, then the relevant proportionate share of the translation difference is allocated to the non-controlling interests. When a foreign operation is disposed of, such that control, significant influence or joint control is lost, the cumulative amount in the translation reserve related to that foreign operation is reclassified to profit or loss as part of the gain or loss on disposal. When the Group disposes of only part of its interest in a subsidiary that includes a foreign operation while retaining control, the relevant proportion of the cumulative amount is reattributed to non-controlling interests. When the Group disposes of only part of its investment in an associate or joint venture that includes a foreign operation while retaining significant influence or joint control, the relevant proportion of the cumulative amount is reclassified to profit or loss. When the settlement of a monetary item receivable from or payable to a foreign operation is neither planned nor likely in the foreseeable future, foreign exchange gains and losses arising from such a monetary item are considered to form part of a net investment in a foreign operation. These are recognised in other comprehensive income, and are presented in the translation reserve in equity. 3.3 Property, plant and equipment Recognition and measurement Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials and direct labour, any other costs directly attributable to bringing the asset to a working condition for their intended use, and the costs of dismantling and removing the items and restoring the site on which they are located and capitalised borrowing cost. Capitalisation of borrowing costs will cease when the asset is ready for its intended use. Cost may also include transfers from equity of any gain or loss on qualifying cash flow hedges of foreign currency purchases of property, plant and equipment. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment. When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment. The gain or loss on disposal of an item of property, plant and equipment is determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment, and is recognised net within other income/other operating expenses in profit or loss. Subsequent costs The cost of replacing a component of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the component will flow to the Group, and its cost can be measured reliably. The carrying amount of the replaced component is de-recognised. The costs of the day-to-day servicing of property, plant and equipment are recognised in profit or loss as incurred. Singapore Power Limited and its subsidiaries Financial statements Year ended 31 March 2022 25 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. Freehold land and construction-in-progress are not depreciated. The estimated useful lives for the current and comparative periods are as follows: Leasehold land Buildings, office and tunnels Plant and machinery - Mains (Electricity) - Mains (Gas) - Transformers and switchgear Other plant and equipment (principally gas storage plant, remote control and meters) Motor vehicles and office equipment Over the term of the lease, ranging from 3 – 99 years 2 – 40 years or the lease term, if shorter 10 – 30 years 5 – 50 years or the lease term, if shorter 20 – 30 years 2 – 40 years 2 – 10 years Depreciation methods, useful lives and residual values are reviewed at each financial year end, and adjusted if appropriate. 3.4 Intangible assets Goodwill Goodwill that arises upon the acquisition of subsidiaries is included in intangible assets and represents the excess of: - the fair value of the consideration transferred; plus - the recognised amount of any non-controlling interests in the acquiree; plus - if the business combination is achieved in stages, the fair value of the pre-existing equity interest in the acquiree, over the net recognised amount (generally fair value) of the identifiable assets acquired and liabilities assumed. When the excess is negative, a bargain purchase gain is recognised immediately in profit or loss. Subsequent measurement Goodwill is measured at cost less accumulated impairment losses. In respect of equity-accounted investees, the carrying amount of goodwill is included in the carrying amount of the investment, and an impairment loss on such an investment is not allocated to any asset, including goodwill, that forms part of the carrying amount of the equity-accounted investee. Singapore Power Limited and its subsidiaries Financial statements Year ended 31 March 2022 26 Other intangible assets Other intangible assets with finite useful lives are measured at cost less accumulated amortisation and accumulated impairment losses. Expenditure on internally generated goodwill is recognised in profit or loss as an expense when incurred. Intangible assets that have indefinite lives or that are not available for use are stated at cost less accumulated impairment losses. Software is stated at cost less accumulated amortisation and accumulated impairment losses. Amortisation is recognised in profit or loss on a straight-line basis over the estimated useful life of 2 to 5 years. Deferred expenditure relates mainly to contributions paid by the Group in accordance with regulatory requirements towards capital expenditure costs incurred by electricity generation companies and onshore receiving facility operator, and is stated at cost less accumulated amortisation and accumulated impairment losses. Deferred expenditure is amortised on a straight-line basis over the period in which the Group derives benefits from the capital contribution payments, which is generally the useful life of the relevant equipment ranging from 7 to 19 years. Research costs are expensed as incurred. Capitalised development costs arising from development expenditures on an individual project are recognised as an intangible asset when the Group can demonstrate the technical feasibility of completing the intangible asset so that it will be available for use or sale, its intention to complete and its ability to use or sell the asset, how the asset will generate future economic benefits, the availability of resources to complete and the ability to measure reliably the expenditures during the development. Following initial recognition of the capitalised development costs as an intangible asset, it is carried at cost less accumulated amortisation and any accumulated impairment losses. Amortisation of the intangible asset begins when development is complete and the asset is available for use. Capitalised development costs have a finite useful life and are amortised over the period of 5 years on a straight line basis. Intangible assets under construction are stated at cost. No amortisation is provided until the intangible assets are ready for use. 3.5 Investment property under development Investment property under development is property held either to earn rental income or for capital appreciation or for both, but not for sale in the ordinary course of business, use in the production or supply of goods or services or for administrative purposes. Investment property under development is measured at cost on initial recognition. Cost includes expenditure that is directly attributable to the acquisition of the investment property. The cost of self-constructed investment property includes the cost of materials and direct labour, any other costs directly attributable to bringing the investment property under development to a working condition for their intended use and capitalised borrowing costs. Any gain or loss on disposal of an investment property under development (calculated as the difference between the net proceeds from disposal and the carrying amount of the item) is recognised in profit or loss. When the use of a property changes such that it is reclassified as property, plant and equipment, its fair value at the date of reclassification becomes its cost for subsequent accounting. Property that is being constructed for future use as investment property under development is accounted for at cost less accumulated depreciation and accumulated impairment losses. Investment property under development is not depreciated. Singapore Power Limited and its subsidiaries Financial statements Year ended 31 March 2022 27 3.6 Financial instruments Non-derivative financial assets Initial recognition and measurement Financial assets are recognised when, and only when the entity becomes party to the contractual provisions of the instruments. At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss. Trade receivables are measured at the amount of consideration to which the Group expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third party, if the trade receivables do not contain a significant financing component at initial recognition. Subsequent measurement Investments in debt instruments Subsequent measurement of debt instruments depends on the Group’s business model for managing the asset and the contractual cash flow characteristics of the asset. The measurement categories for classification of debt instruments are: (i) (ii) (iii) Amortised cost Financial assets that are held for the collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. Financial assets are measured at amortised cost using the effective interest method, less impairment. Gains and losses are recognised in profit or loss when the assets are de-recognised or impaired, and through the amortisation process. Fair value through other comprehensive income (“FVOCI”) Financial assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets’ cash flows represent solely payments of principal and interest, are measured at FVOCI. Financial assets measured at FVOCI are subsequently measured at fair value. Any gains or losses from changes in fair value of the financial assets are recognised in other comprehensive income, except for impairment losses, foreign exchange gains and losses and interest calculated using the effective interest method are recognised in profit or loss. The cumulative gain or loss previously recognised in other comprehensive income is reclassified from equity to profit or loss as a reclassification adjustment when the financial asset is de-recognised. Fair value through profit or loss Assets that do not meet the criteria for amortised cost or FVOCI are measured at fair value through profit or loss. A gain or loss on a debt instrument that is subsequently measured at fair value through profit or loss and is not part of a hedging relationship is recognised in profit or loss in the period in which it arises. Singapore Power Limited and its subsidiaries Financial statements Year ended 31 March 2022 28 Investments in equity instruments On initial recognition of an investment in equity instrument that is not held for trading, the Group may irrevocably elect to present subsequent changes in fair value in OCI. Dividends from such investments are to be recognised in profit or loss when the Group’s right to receive payments is established. For investments in equity instruments which the Group has not elected to present subsequent changes in fair value in OCI, changes in fair value are recognised in profit or loss. De-recognition The Group de-recognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Group neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset. Cash and cash equivalents Cash and cash equivalents comprise cash balances and bank deposits. Non-derivative financial liabilities Initial recognition and measurement Financial liabilities are recognised when, and only when, the Group becomes a party to the contractual provisions of the financial instrument. The Group determines the classification of its financial liabilities at initial recognition. All financial liabilities are recognised initially at fair value plus in the case of financial liabilities not at fair value through profit or loss, directly attributable transaction costs. For financial liabilities at fair value through profit or loss, directly attributable transaction costs are recognised in profit or loss incurred. Subsequent measurement After initial recognition, financial liabilities that are not carried at fair value through profit or loss are subsequently measured at amortised cost using the effective interest method. Gains and losses are recognised in profit or loss when the liabilities are de-recognised, and through the amortisation process. Financial liabilities at fair value through profit or loss are measured at fair value and net gains and losses, including any interest expense, are recognised in profit or loss. Singapore Power Limited and its subsidiaries Financial statements Year ended 31 March 2022 29 De-recognition A financial liability is de-recognised when the obligation under the liability is discharged or cancelled or expires. On de-recognition, the difference between the carrying amounts and the consideration paid is recognised in profit or loss. Offsetting Financial assets and liabilities are offset and the net amount presented on the balance sheets when, and only when, the Group has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. The rights of offset must not be contingent on a future event and must be enforceable in the event of bankruptcy or insolvency of all the counterparties to the contract. 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 and 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 host contract is not a financial asset and certain criteria are met. Derivatives are initially measured at fair value and any directly 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 generally recognised in profit or loss. The Group designates certain derivatives and non-derivative financial instruments as hedging instruments in qualifying hedging relationships. At inception of designated hedging relationships, the Group documents the risk management objective and strategy for undertaking the hedge. The Group also documents the economic relationship between the hedged item and the hedging instrument, including whether the changes in cash flows of the hedged item and hedging instrument are expected to offset each other. The Group applies hedge accounting for certain hedging relationships which qualify for hedge accounting. For the purpose of hedge accounting, hedges are classified as: • cash flow hedges when hedging exposure to variability in cash flows that is either attributable to a particular risk associated with a recognised asset or liability or a highly probable forecast transaction or the foreign currency risk in an unrecognised firm commitment; or • fair value hedges when hedging the exposure to changes in fair value of a recognised asset or liability or an unrecognised firm commitment. Singapore Power Limited and its subsidiaries Financial statements Year ended 31 March 2022 30 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. When a cash flow hedge is discontinued, the cumulative gain or loss previously recognised in other comprehensive income will remain in the cash flow hedge reserve until the future cash flows occur if the hedged future cash flows are still expected to occur or reclassified to profit or loss immediately if the hedged future cash flows are no longer expected to occur. 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. Hedges directly affected by interest rate benchmark reform Phase 1 amendments: Prior to interest rate benchmark reform – when there is uncertainty arising from interest rate benchmark reform For the purpose of evaluating whether there is an economic relationship between the hedged item(s) and the hedging instrument(s), the Group assumes that the benchmark interest rate is not altered as a result of interest rate benchmark reform. For a cash flow hedge of a forecast transaction, the Group assumes that the benchmark interest rate will not be altered as a result of interest rate benchmark reform for the purpose of assessing whether the forecast transaction is highly probable and presents an exposure to variations in cash flows that could ultimately affect profit or loss. In determining whether a previously designated forecast transaction in a discontinued cash flow hedge is still expected to occur, the Group assumes that the interest rate benchmark cash flows designated as a hedge will not be altered as a result of interest rate benchmark reform. The Group will cease to apply the specific policy for assessing the economic relationship between the hedged item and the hedging instrument (i) to a hedged item or hedging instrument when the uncertainty arising from interest rate benchmark reform is no longer present with respect to the timing and the amount of the contractual cash flow of the respective item or instrument or (ii) when the hedging relationship is discontinued. Singapore Power Limited and its subsidiaries Financial statements Year ended 31 March 2022 31 For its highly probable assessment of the hedged item, the Group will no longer apply the specific policy when the uncertainty arising from interest rate benchmark reform about the timing and the amount of the interest rate benchmark-based future cash flows of the hedged item is no longer present, or when the hedging relationship is discontinued. Phase 2 amendments: Replacement of interest rates – when there is no longer uncertainty arising from interest rate benchmark reform When the basis for determining the contractual cash flows of the hedged item or the hedging instrument changes as a result of interest rate benchmark reform and therefore there is no longer uncertainty arising about the cash flows of the hedged item or the hedging instrument, the Group amends the hedged documentation of that hedging relationship to reflect the change(s) required by interest rate benchmark reform. A change in the basis for determining the contractual cash flows is required by interest rate benchmark reform if the following conditions are met: • the change is necessary as a direct consequence of the reform; and • the new basis for determining the contractual cash flow is economically equivalent to the previous basis – i.e. the basis immediately before the change. For this purpose, the hedge designation is amended only to make one or more of the following changes: • designating an alternative benchmark rate as the hedged risk; • updating the description of hedged item, including the description of the designated portion of the cash flows or fair value being hedged; or • updating the description of the hedging instrument. The Group amends the description of the hedging instrument only if the following conditions are met: • it makes a change required by interest rate benchmark reform by changing the basis for determining the contractual cash flows of the hedging instrument or using another approach that is economically equivalent to changing the basis for determining the contractual cash flows of the original hedging instrument; and • the original hedging instrument is not derecognised. The Group amends the formal hedge documentation by the end of the reporting period during which a change required by interest rate benchmark reform is made to the hedged risk, hedged item or hedging instrument. These amendments in the formal hedge documentation do not constitute the discontinuation of the hedging relationship or the designation of a new hedging relationship. If changes are made in addition to those changes required by interest rate benchmark reform described above, then the Group first considers whether those additional changes result in the discontinuation of the hedge accounting relationship. If the additional changes do not result in discontinuation of the hedge accounting relationship, then the Group amends the formal hedge documentation for changes required by interest rate benchmark reform as mentioned above. When the interest rate benchmark on which the hedged future cash flows had been based is changed as required by interest rate benchmark reform, for the purpose of determining whether the hedged future cash flows are expected to occur, the Group deems that the hedging reserve recognised in OCI for the hedging relationship is based on the alternative benchmark rate on which the hedged future cash flows will be based. Singapore Power Limited and its subsidiaries Financial statements Year ended 31 March 2022 32 Intra-group financial guarantees in the separate financial statements Financial guarantees are financial instruments issued by the Group that require 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 debt instrument. Financial guarantees issued are initially measured at fair value and the initial fair value is amortised over the life of the guarantees. Subsequent to initial measurement, the financial guarantees are measured at the higher of the amortised amount and the amount of loss allowance. Expected credit losses are a probability-weighted estimate of credit losses. Expected credit losses are measured for financial guarantees issued as the expected payments to reimburse the holder less any amounts that the Group expects to recover. 3.7 Impairment Non-derivative financial assets The Group recognises an allowance for expected credit losses (“ECLs”) for all debt instruments not held at fair value through profit or loss and financial guarantee contracts. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Group expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms. ECLs are recognised in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is recognised for credit losses expected over the remaining life of the exposure, irrespective of timing of the default (a lifetime ECL). For trade receivables and contract assets, the Group applies a simplified approach in calculating ECLs. Therefore, the group does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. The Group has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment. For debt instruments at fair value through OCI, the Group applies the low credit risk simplification. At every reporting date, the Group evaluates whether the debt instrument is considered to have low credit risk using all reasonable and supportable information that is available without undue cost or effort. The Group considers a financial asset potentially in default when contractual payments are 180 days past due. However, in certain cases, the Group may also consider a financial asset to be in default when internal or external information indicates that the Group is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Group. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows. Singapore Power Limited and its subsidiaries Financial statements Year ended 31 March 2022 33 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

Consumption_Elect Average consumption of Electricity (kWh) Premises Types Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 HDB 1-Room 127 125 121 111 127 142 152 147 145 143 146 144 135 126 126 132 150 152 149 140 151 148 139 142 HDB 2-Room 165 166 158 148 166 185 202 190 190 189 190 188 176 164 167 173 199 199 195 183 198 192 183 186 HDB 3-Room 235 233 226 212 242 270 288 271 272 269 274 269 247 236 241 250 292 285 277 264 283 277 266 266 HDB 4-Room 320 318 309 289 326 367 391 371 371 367 374 370 342 321 330 342 398 396 383 360 385 381 363 365 HDB 5-Room 373 369 363 338 381 428 456 437 434 427 437 436 401 367 381 399 463 466 448 416 447 446 427 429 HDB Executive 448 453 443 414 473 528 561 531 536 528 541 530 478 456 474 489 575 568 544 515 546 548 520 523 Apartment 469 450 425 414 465 543 585 546 514 515 537 541 483 430 435 486 578 573 543 500 513 539 523 519 Terrace 752 748 727 686 756 867 902 868 866 859 890 881 804 740 794 821 957 900 872 838 847 885 851 851 Semi-Detached 995 997 962 930 1,024 1,182 1,233 1,159 1,134 1,150 1,187 1,174 1,065 1,019 1,038 1,109 1,254 1,224 1,170 1,128 1,126 1,168 1,137 1,141 Bungalow 1,986 2,073 1,938 1,901 2,016 2,303 2,482 2,320 2,219 2,298 2,308 2,358 2,075 2,106 1,951 2,146 2,432 2,360 2,266 2,220 2,121 2,347 2,192 2,190

Joint Media Release SP GROUP LAUNCHES GREEN FINANCING FRAMEWORK Company also secures S$100 million in green loan facilities from DBS, OCBC Bank and UOB Singapore, 22 April 2021 – SP Group (SP) has established a Green Financing Framework 1 in a move that deepens the integration of its sustainability ambition into its financing strategy. SP has also secured its maiden green loan facilities of S$100 million from DBS, OCBC Bank and UOB on a bilateral basis. Under the Framework, SP and its subsidiaries will be able to issue green financing instruments to finance and/or refinance eligible green projects in four categories: clean transportation, energy efficiency projects, renewable energy and green buildings. The Framework will also govern the use and management of the green loan facilities from DBS, OCBC Bank and UOB. The Framework is credible, impactful and aligned with the relevant international principles and guidelines 2 , as established in findings by Sustainalytics, an independent ESG and corporate governance research, ratings and analysis firm. The firm was engaged to provide a second party opinion on the Framework. With the Framework in place, investors and lenders will now have greater visibility of the use of proceeds and the positive environmental impact of SP’s investments in sustainable energy solutions and projects that are funded by green financing instruments. This will help investors and lenders identify and fund investments and projects aligned with their sustainable investing strategy. Chief Financial Officer of SP, Ms Loong Hui Chee, said, “This Green Financing Framework is central to SP Group’s commitment to advance clean energy transition, build sustainable infrastructure and foster innovation to enable a low carbon economy. We are pleased to partner DBS, OCBC Bank and UOB to secure our maiden green loan facilities. We look forward to working with like-minded financiers to support Singapore’s efforts to build a green finance ecosystem.” Mr Lim Wee Seng, Group Head of Energy, Chemicals and Infrastructure, DBS Institutional Banking Group, said, “As Southeast Asia’s largest bank, DBS plays a significant role in financing positive change and using our expertise and sector knowledge to support leading energy companies like SP Group, in achieving their sustainable development goals. In our on-going commitment to sustainability, DBS financed about SGD 597 million of renewable and clean energy-related projects last year. We continue to see tremendous growth potential in sustainable finance with more companies exploring ways to create positive impact and as stakeholders place greater responsibility on corporates to drive both profit and purpose-driven agendas.” 1 The Framework and Second Party Opinion is available at: https://www.spgroup.com.sg/about-us/investor-relations 2 Green Bond Principles 2018 by the International Capital Market Association; Green Loan Principles 2020 by the Loan Market Association, Asia Pacific Loan Market Association and Loan Syndications and Trading Association; ASEAN Green Bond Standards 2018 by the ASEAN Capital Markets Forum. OCBC Bank’s head of Global Corporate Banking, Ms Elaine Lam, said, “We are pleased to support our long-time customer SP Group to drive the clean energy transition and contribute to the building of sustainable cities. Their Green Financing Framework, which we are pleased to have codeveloped, enables them to tap on green loans to fund projects that can create positive change. We look forward to partnering on more sustainable finance deals with SP Group in the future.” Mr Leong Yung Chee, Head of Group Corporate Banking, UOB said, “At UOB, we understand how important sustainability is to our client’s business model and take an active role in supporting their transition towards a low carbon future as they ramp up their sustainability strategies. We are pleased to deepen our existing relationship with Singapore’s biggest utilities group, from our partnership on UOB’s Utilities Marketplace 3 , to being a provider of the company’s first green loan. Our latest green loan exemplifies our commitment to helping our clients grow responsibly and demonstrates our efforts in building more sustainable and liveable cities.” More information on SP’s Green Financing Framework can be accessed at https://www.spgroup.com.sg/about-us/investor-relations. -Ends- 3 Please refer to UOB news release: “UOB charges ahead with Singapore’s first online utility marketplace to help customers save on their monthly bills”, 6 May 2019. About SP Group SP Group is a leading utilities group in the Asia Pacific, enabling a low-carbon, smart energy future for its customers. It owns and operates electricity and gas transmission and distribution businesses in Singapore and Australia, and sustainable energy solutions in Singapore and China. As Singapore’s national grid operator, about 1.6 million industrial, commercial and residential customers benefit from its world-class transmission, distribution and market support services. These networks are amongst the most reliable and cost-effective world-wide. Beyond traditional utilities services, SP Group provides a suite of sustainable energy solutions such as cooling and heating systems for business districts and residential townships, electric vehicle fast charging and green digital energy management tools for customers in Singapore and the region. For more information, please visit spgroup.com.sg or follow us on Facebook at fb.com/SPGroupSG, on LinkedIn at spgrp.sg/linkedin and on Twitter @SPGroupSG. About DBS DBS is a leading financial services group in Asia with a presence in 18 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's "AA-" and "Aa1" credit ratings are among the highest in the world. Recognised for its global leadership, DBS has been named “World’s Best Bank” by Euromoney, “Global Bank of the Year” by The Banker and “Best Bank in the World” by Global Finance. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “World’s Best Digital Bank” by Euromoney. In addition, DBS has been accorded the “Safest Bank in Asia” award by Global Finance for 12 consecutive years from 2009 to 2020. DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets. DBS is committed to building lasting relationships with customers, and positively impacting communities through supporting social enterprises, as it banks the Asian way. It has also established a SGD 50 million foundation to strengthen its corporate social responsibility efforts in Singapore and across Asia. With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit www.dbs.com. About OCBC Bank OCBC Bank is the longest established Singapore bank, formed in 1932 from the merger of three local banks, the oldest of which was founded in 1912. It is now the second largest financial services group in Southeast Asia by assets and one of the world’s most highly-rated banks, with an Aa1 rating from Moody’s. Recognised for its financial strength and stability, OCBC Bank is consistently ranked among the World’s Top 50 Safest Banks by Global Finance and has been named Best Managed Bank in Singapore by The Asian Banker. OCBC Bank and its subsidiaries offer a broad array of commercial banking, specialist financial and wealth management services, ranging from consumer, corporate, investment, private and transaction banking to treasury, insurance, asset management and stockbroking services. OCBC Bank’s key markets are Singapore, Malaysia, Indonesia and Greater China. It has more than 480 branches and representative offices in 19 countries and regions. These include over 230 branches and offices in Indonesia under subsidiary Bank OCBC NISP, and over 70 branches and offices in Mainland China, Hong Kong SAR and Macau SAR under OCBC Wing Hang. OCBC Bank’s private banking services are provided by its wholly-owned subsidiary Bank of Singapore, which operates on a unique open-architecture product platform to source for the bestin-class products to meet its clients’ goals. OCBC Bank's insurance subsidiary, Great Eastern Holdings, is the oldest and most established life insurance group in Singapore and Malaysia. Its asset management subsidiary, Lion Global Investors, is one of the largest private sector asset management companies in Southeast Asia. For more information, please visit www.ocbc.com. About UOB United Overseas Bank Limited (UOB) is a leading bank in Asia with a global network of more than 500 offices in 19 countries and territories in Asia Pacific, Europe and North America. Since its incorporation in 1935, UOB has grown organically and through a series of strategic acquisitions. UOB is rated among the world’s top banks: Aa1 by Moody’s Investors Service and AA- by both S&P Global Ratings and Fitch Ratings. In Asia, UOB operates through its head office in Singapore and banking subsidiaries in China, Indonesia, Malaysia, Thailand and Vietnam, as well as branches and representative offices across the region. Over more than eight decades, generations of UOB employees have carried through the entrepreneurial spirit, the focus on long-term value creation and an unwavering commitment to do what is right for our customers and our colleagues. We believe in being a responsible financial services provider and we are committed to making a difference in the lives of our stakeholders and in the communities in which we operate. Just as we are dedicated to helping our customers manage their finances wisely and to grow their businesses, UOB is steadfast in our support of social development, particularly in the areas of art, children and education.