The Business Times | Wednesday, January 21, 2026 | COMPANIES & MARKETS 7 ShopBack crosses S$1b in cashback to users, says experimentation is still key Being app-driven sets it apart from competitors in markets such as the US and Germany By Benjamin Cher benjamincher@sph.com.sg LOYALTY platform ShopBack has crossed the S$1 billion in cashback to users since its inception11years ago, and is not looking to stop trying new things. Its co-founder Joel Leong told The Business Times that crossing the S$1 billion threshold is proof that the flywheel for ShopBack is working, given the platform’s efforts to drive value for its users, merchants and the platform itself. “Our goal as a platform is to make sure this flywheel makes sense for them, the goals they are aiming for and how we can help them,” he said. “We keep doing new things, new things that refresh what ShopBack is, and that’s what makes it exciting for us.” For example, the loyalty platform started out targeting marketplaces like Lazada and Shopee, but now also has brands from other categories of products and services, including merchants such as Uniqlo, Guardian and Lego, and travel services such as Klook, Agoda and Emirates. ShopBack offers users real moneycashbackforonlineandin-store purchases, vouchers and payments, by earning commissions from its partnered merchants and then sharing a portion of these with its users, allowing them to withdraw cash or use it for future deals. In its new category such as ShopBack Play, for instance, users earn cashback for playing casual mobile games. In markets such as Taiwan and Australia, another new feature, ShopBack Snap, lets users scan receipts for offline in-store purchases. Some hits, some misses The company has been through some failures as well, having shuttered features such as ShopBack Go, through which users designated a credit card to be tracked for offline use, and ShopBack Paylater, a buy-now-pay later (BNPL) service launched after the acquisition of Hoolah. In May 2024, the company announced layoffs, cutting 195 roles or nearly a quarter (about 24 per cent) of its headcount then. ShopBack had a banner year in 2025, clocking S$7 billion in gross merchandise value to merchants and brand partners, a growth of 30% year on year. Mapletree Investments, MPACT appoint SP Group to build district cooling system By Chloe Lim chloeljh@sph.com.sg MAPLETREE Investments and Mapletree Pan Asia Commercial Trust (MPACT) have appointed SP Group to design, build and operate a new distributed district cooling (DDC) system at HarbourFront Precinct. The system will connect five buildings – Bank of America HarbourFront, the new HarbourFront Centre, the existing HarbourFront Towers1and 2, and VivoCity – supplying chilled water through three injection nodes. The buildings will rely on a shared system that aggregates cooling demand, to achieve economies of scale and improve cooling efficiency, instead of each building running its own chiller. “This reduces operating costs and carbon emissions, while freeing up valuable space previously used for individual cooling plants for operational or commercial use,” said the companies in a joint statement on Tuesday (Jan 20). The DDC network will be implemented over two phases, commencing in 2027. It is targeted to be fully operational by 2031. The project will be one of Singapore’s largest brownfield district cooling deployments. Located at HarbourFront Precinct, it supports Mapletree’s plans to “rejuvenate... and enhance building energy efficiency” across the area, they added. The venture is part of Mapletree’s commitment to achieve net zero by 2050. The DDC system is projected to hit over 5 per cent of savings in cooling-related expenses a year, with an installed cooling capacity of17,150 refrigeration tonnes, said the companies. It is expected to be 8 per cent more energy-efficient than the National Environment Agency’s minimum energy efficiency standards for water-cooled chilled water systems in industrial facilities, upon its full implementation. Thesystem“willalsoreducecarbon emissions by about 13,700 tonnes over the 20-year operating period”, noted the companies. “This is comparable to the emissions from powering 550 threeroom HDB households a year.” This is Singapore’s second brownfield DDC deployment, after SP Group’s work at Tampines Central in March 2025. Joel Leong, a co-founder of ShopBack, says: “We keep doing new things, new things that refresh what ShopBack is, and that’s what makes it exciting for us.” PHOTO: SHOPBACK INVESTORS do not just focus on a company’s past performance; they also buy into its future. In a market where confidence drives capital, forward guidance – the practice of sharing credible statements about future performance and strategy – matters more than ever. Singapore’s stock market is gaining momentum. The Monetary Authority of Singapore has announced initiatives such as the S$5 billion Equity Market Development Programme to catalyse investor demand and a S$30 million Value Unlock programme to help listed companies strengthen investor engagement and sharpen shareholder value creation. While these two programmes are significant levers, they cannot replace the power of clear communication from listed companies themselves. With investor interest in Singapore stocks picking up, companies have a golden opportunity to strengthen fundamentals, enhance communications and demonstrate value creation. In our many engagements with investors, forward-looking statements – commonly referred to as earnings or forward guidance – rank high on investors’ wish lists. Research analysts and institutional investors consistently emphasise the importance of anticipated earnings and the strategy the business will employ to achieve those results. Yet, few companies provide such statements. Why? Misperceptions. Let us clarify three biggest myths. Myth 1: Forward guidance is frowned upon by the authorities Many companies fear regulatory backlash if projections miss the mark. One common misconception is that forward guidance will attract regulatory scrutiny – particularly if the forward guidance subsequently proves inaccurate – and result in disciplinary consequences. In reality, companies can and should offer such guidance. While not mandatory, Singapore Exchange Regulation (SGX RegCo) strongly encourages issuers to provide forward guidance to inform shareholders of their strategic direction and business targets. The key lies in ensuring that the forward guidance is carefully prepared, based on credible methodologies and assumptions, and is realistic and defensible, in line with the principles set out in the Listing Rules. Internal models, historical performance and external market data should underpin these projections. Offering a range rather than single-point estimates is acceptable when it reflects the inherent uncertainties. If an issuer is not confident to provide quantitative forward guidance, giving forward-looking disclosures in narrative form around the companies’ strategies, or intended activities, would still be helpful. These practical guidelines ensure that investors can reasonably rely on the forward guidance. Issuers should decide, based on their own industry and business model, which metrics are appropriate for forward guidance. Examples observed in the market include traditional metrics such as revenue, earnings and costs, as well as other metrics such as assets under management or project completion milestones. Myth 2: Companies need an auditor to sign off forward-looking guidance Another myth is that an auditor must sign off on forward-looking statements. Thisisnotthecase.Auditorconfirmation applies only in specific circumstances under the Listing Rules, such as when a profit forecast is accepted from a vendor in a Chapter 10 transaction. What truly matters is that the issuer follows the guidelines above, and the board stands by the issuer’s forward guidance. Myth 3: Forward guidance must be updated immediately A third misconception is that forward guidance must be updated immediately in response to changes in the issuer’s circumstances. Despite these setbacks, Leong is undeterred. ShopBack is about experimentation and doing new things, he said, and evaluating if these new features make sense for all three parties – the users, merchants and ShopBack itself. He noted: “I never want the team to stop experimenting, even if it means that now and then, there might be one or two that we might not get right.” The unsuccessful BNPL business was evaluated, and it emerged that ShopBack Pay, a pure payment business, wasbetterforusers, merchants and ShopBack. This payment feature is growing and expanding into different markets, and would not have been discovered if ShopBack had not experimented with BNPL, noted Leong. Aside from new features and categories, ShopBack has now expanded beyond the region, entering new markets in Germany in 2023 and the US, in 2025. ShopBack’s expansion beyond the Asia-Pacific is backed by what it has learned from the region nearer home. In the Asia-Pacific, it is in 11 markets – Singapore, Malaysia, the Philippines, Indonesia, Thailand, Taiwan, Australia, New Zealand, South Korea, Vietnam and Hong Kong. The foray into the US and Germany was based on the strength of the e-commerce market there. Germany, for example, is estimated to be one of Europe’s largest e-commerce markets, with user growth projected to grow from 47.7 million in 2025 to 51.8 million by 2029, reported the International Trade Administration. ShopBack’s app-driven approach also differentiates it from its competitors in the US and Germany, which have favoured a desktop approach. ShopBack Play was brought to the US under its push to differentiate itself from the incumbents. “A lot of merchants tell us that they are willing to take a chance with us because they want to grow their app business … If you look at the incumbents in those markets, the majority of their orders come from the desktop computer,” said Leong. The platform’s German and American competitors are formidable; they include Honey, a similar affiliate marketing platform acquired by PayPal for US$4 billion in 2020. ShopBack has previously taken on incumbents and come out on top. When it entered Australia, for example, the incumbent Cashrewards was bigger than ShopBack’s combined markets. Cashrewards shuttered in September 2025, when its owner ANZ Bank’s corporate-venture arm 1835i offloaded its major investments and then closed the following month. Leong noted: “If we really play our cards right, we create a better experience for the user, we differentiate ourselves. There’s a good chance we can get a good market share in these markets.” The US and German markets have been stable for a while and need someone to shake things up, he added. Focus and funding Looking ahead, Leong sees key areas of focus being not just in artificial intelligence, but also in the offline space. ShopBack is looking to tap AI for both efficiency and personalisation. ShopBack’s business model turns on having data on its users’ spending habits across brands and being able to push personalised offers to them, benefiting both these users and the brands. Moving more into the offline space would also give ShopBack’s businessmodelaboost,asitwould gather data on users’ offline spending for a more complete picture of their spending habits. “How can we help them get rewarded for that on an everyday basis? I think that’s important for us,” said Leong. Solid performance ShopBack had a banner year in 2025, clocking S$7 billion in gross merchandise value to merchants and brand partners, a growth of 30 per cent year on year. Orders by users grew 35 per cent year on year to 120 million in 2025; the platform remained earnings before interest, taxes, depreciation and amortisation positive. This financial performance comes amid work on a dual-listing bridge between the Singapore Exchange and Nasdaq. As ShopBack has taken on funding from 65 Equity Partners’ Anchor Fund, there is some expectation of a local listing down the road. Leong is not ruling out using the bridge, but stressed that ShopBack is agnostic about all funding options. “What I’ve come to learn in10 years of business is that as long as you have a good business, all options will be on the table for you,” he added. COMMENTARY Forward guidance: Why it matters and how to get it right By Tan Boon Gin and Michael Tang Again, that is not correct. Regulators understand that forward guidance relates to an uncertain future and therefore do not require instant updates for every change. This means that issuers are not required to amend forward guidance immediately when a material event, such as winning or losing a major contract, occurs, or when there is firm evidence of significant deviations between projections and actual results. Instead, they need only announce the material event or the existence of such significant deviations, and whether the forward guidance can still be relied on. The magnitude of the differences between the forward guidance and the actual results, as well as any updates for future periods, need only be provided at the next financial report or business update. For example, while preparing its financial statements for a particular period, if an issuer finds that actual results materially deviate from prior projections, it should promptly announce the fact that the actual results may materially deviate from the forward guidance – similar to a profit warning. It would also be helpful if the issuer discloses whether the actual results would be better or worse than the forward guidance. The issuer need only provide the magnitude of the deviation, as well as updates to forward guidance for future periods, in the upcoming financial report or business update. While issuers are encouraged to provide forward guidance consistently, issuers may also choose to pause or stop if they assess that conditions are too uncertain for guidance to be meaningful and disclose the reasons for doing so. We would also encourage companies to update shareholders on their performance against previous guidance, even when such guidance has been met, as this helps to build trust. Forward guidance is an opportunity, not a risk As investor interest in Singapore stocks picks up, companies have a golden opportunity to strengthen fundamentals, enhance communications and demonstrate value creation, say the writers. PHOTO: CMG There are three key points about forward guidance that issuers and investors should remember. First, issuers are always and ultimately responsible for the accuracy and integrity of their announcements, including forward guidance. Importantly, all material information including forward guidance must be made public via SGXNet to ensure a level playing field. Second, investors should equally recognise that forward guidance, by its nature, relates to an uncertain future. It would therefore not be reasonable to expect issuers to meet their projections with absolute certainty. Third, in reviewing compliance with the Listing Rules, SGX RegCo will adopt a sensible approach. Forward-looking disclosures that issuers announce in good faith, accompanied by appropriate disclosures to enable investors to appreciate both the basis for the projections, as well as the inherent uncertainties involved, should in the ordinary course of events not attract regulatory queries. SGX RegCo continues to support disclosures that promote transparency and informed decision-making. Forward guidance should not be viewed as compliance, but a competitive edge. It signals confidence and builds credibility, which can underpin value. Forward guidance, when thoughtfully and responsibly prepared, can be a useful tool in achieving these outcomes. The writers are from SGX RegCo; Tan Boon Gin is CEO and Michael Tang is head of listing compliance

Singapore gears up for cleaner cars with bigger rebates, EV battery leasing By Fiona Lam fiolam@sph.com.sg @FionaLamBT Singapore TWO initiatives announced on Thursday are set to further fuel Singapore’s drive towards greener transport. The Vehicular Emissions Scheme (VES) will soon give bigger rebates to reward buyers of cleaner cars, while upping surcharges to discourage people from buying pollutive models. A new business model for electric vehicle (EV) users to rent batteries is also in the works, by Singapore utilities firm SP Group and South Korean car maker Hyundai Motor Group. Starting next year, the VES’s rebates and surcharges will be increased for new cars and taxis as well as imported used cars, depending on the vehicle’s pollutant levels. The enhanced emission rebates will take effect on Jan 1, 2021 till Dec Carrot and stick Emission rebates will increase next January for cleaner models, while surcharges will rise next July to discourage purchases of pollutive models. BAND CARBON DIOXIDE (G/KM) HYDROCARBONS (G/KM) 31, 2022, said the National Environment Agency (NEA) and the Land Transport Authority (LTA) in a joint statement on Thursday. The increased surcharges will kick in only on July 1, 2021, and last till Dec 31, 2022, to allow time for the market to adjust to them. Rebates for vehicles in Bands A1 and A2 will be increased by S$5,000 for cars and S$7,500 for taxis starting next January. That means a person who buys an A1 car will receive a S$25,000 rebate instead of S$20,000, while an A2 car will attract a S$15,000 rebate instead of S$10,000. The enhanced VES coupled with the Electric Vehicle Early Adoption Incentive (EEAI) will offer buyers combined cost savings of up to S$45,000 when they purchase a new fully electric car and up to S$57,500 for a new fully electric taxi. These higher savings will encourage EV adoption, by narrowing the upfront cost gap between electric cars and their internal combustion engine equivalents, said NEA and LTA. The EEAI, effective from Jan 1, 2021 to Dec 31, 2023, offers a rebate of 45 per cent, capped at S$20,000, off the additional registration fee for the purchase of a new fully electric car or taxi. Meanwhile, the surcharges for Bands C1 and C2 will rise by S$5,000 for cars and by S$7,500 for taxis, starting next July. That means a C1 car will incur a surcharge of S$15,000 instead of S$10,000, while a C2 car will be slapped with a S$25,000 surcharge instead of S$20,000. There will be no change in the pollutant criteria for each VES band for the duration of the enhanced scheme, till the end of 2022. Vehicles in Band B do not come with any rebates or surcharges under the scheme. The VES was implemented in January 2018 to encourage buyers to choose car models with lower emissions across five pollutants: carbon dioxide, hydrocarbons, carbon monoxide, nitrogen oxides and particulate matter. NEA said on Thursday that it will contact the vehicle industry in due course for consultations on the possibility of tightening the VES band thresholds. Separately, SP and Hyundai will jointly develop a business model named battery-as-a-service for the leasing of EV batteries. CARBON MONOXIDE (G/KM) NITROGEN OXIDES (G/KM) The two companies said this will be the first such model in South-east Asia, enabling EV users to rent the car battery instead of owning it. SP and Hyundai aim to accelerate the adoption of EVs in Singapore with the tie-up. Both companies will also conduct a study on EV battery utilisation and improving the ownership experience for consumers. In addition, they are looking to expand the EV charging infrastructure and develop new solutions for battery reuse and recycling to achieve carbon neutrality. SP and Hyundai said they hope to PARTICULATE MATTER (MG/KM) REBATE (-) OR SURCHARGE (+) FOR CARS (S$) REBATE (-) OR SURCHARGE (+) FOR TAXIS (S$) A1 ≤90 ≤0.020 ≤0.15 ≤0.007 =0.0 -25,000 -37,500 A2 ≤125 ≤0.036 ≤0.19 ≤0.013 ≤0.3 -15,000 -22,500 B ≤160 ≤0.052 ≤0.27 ≤0.024 ≤0.5 0 0 C1 ≤185 ≤0.075 ≤0.35 ≤0.030 ≤2.0 +15,000 +22,500 C2 >185 >0.075 >0.35 >0.030 >2.0 +25,000 +37,500 Sources: NEA, LTA lower the initial cost of purchasing EVs as well as make charging points and low-carbon mobility solutions more accessible to vehicle owners in Singapore. Hyundai last month announced a S$400 million innovation centre in Jurong, which may produce up to 30,000 vehicles per year by 2025. The South Korean firm on Thursday said it will step up its efforts to expand the supply of EVs in Singapore in cooperation with SP, which is growing its network of EV charging infrastructure.

Media Release Electricity Tariff Revision For The Period 1 April to 30 June 2021 Singapore, 31 March 2021 – For the period from 1 April to 30 June 2021, electricity tariff (before 7% GST) will increase by an average of 8.7% or 1.77 cents per kWh compared with the previous quarter. This is mainly due to higher cost of fuel for producing electricity by the power generation companies. For details on the four components of the electricity tariff, please refer to Appendix 1: Breakdown of Electricity Tariff. For households, the electricity tariff (before 7% GST) will increase from 20.76 to 22.55 cents per kWh for 1 April to 30 June 2021. The average monthly electricity bill for families living in HDB four-room flats will increase by $5.62 (before 7% GST) (Appendix 3: Average monthly electricity bills of domestic consumers). *before 7% GST SP Group reviews the electricity tariffs every quarter based on guidelines set by the electricity industry regulator, Energy Market Authority (EMA). The tariffs shown in Appendix 2 have been approved by the EMA. Issued by: SP Group 2 Kallang Sector Singapore 349277 Appendix 1 BREAKDOWN OF ELECTRICITY TARIFF 1. The electricity tariff consists of the following four components: Energy costs (paid to the generation companies): This component is adjusted quarterly to reflect changes in the cost of fuel and power generation. The fuel cost is the cost of imported natural gas, which is tied to oil prices by commercial contracts. The cost of power generation covers mainly the costs of operating the power stations, such as the manpower and maintenance costs, as well as the capital cost of the stations. Network costs (paid to SP Group): This is to recover the cost of transporting electricity through the power grid. Market Support Services Fee (paid to SP Group): This is to recover the costs of billing and meter reading, data management, retail market systems as well as for market development initiatives. Market Administration and Power System Operation Fee (paid to Energy Market Company and Power System Operator): This fee is reviewed annually to recover the costs of operating the electricity wholesale market and power system. Appendix 2 Appendix 3

s’pore Power scholarship for ITe, poly students Twenty-one students from the Institute of Technical Education (ITE) and polytechnics got help to “power up” their education yesterday. They were the pioneer batch of students to receive a scholarship for ITE and poly students launched by Singapore Power (SP), a leading energy utility company. The scholarship is one of the newest initiatives by the company to develop people to work in the power sector. It is awarded to current electrical and mechanical engineering students from the ITE or polytechnics who have completed their first year of study. The students are selected based on their academic results, aptitude and passion for power engineering, said SP. Students in the polytechnics will receive $24,000 over their course of study, while ITE students will get $11,000. They will be required to work in SP for two years after they graduate.

SP PowerAssets Limited Directors’ statement Year ended 31 March 2022 1 Directors’ statement We are pleased to submit this annual report to the member of SP PowerAssets 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) the financial statements set out are drawn up so as to give a true and fair view of the financial position of the Company as at 31 March 2022 and the financial performance, changes in equity and cash flows 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 (b) 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: Mr Stanley Huang Tian Guan Mrs Jeanne Cheng Mr Ong Teng Koon Ms Amelia Champion Ms Loong Hui Chee Mr Kenneth Soh Yew Chin 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: SP PowerAssets Limited 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 Holdings at end of the year Mrs Jeanne Cheng Singapore Telecommunications Limited Singapore Technologies Engineering Ltd 11,180 10,000 11,180 10,000 Ms Amelia Champion Singapore Telecommunications Limited CapitaLand Limited CapitaLand Investment Limited CapitaLand Integrated Commercial Trust – units 1,430 5,000 – – 1,430 –* 5,000* 773* Ms Loong Hui Chee Ascendas Real Estate Investment Trust – units Ascott Residence Trust – units CapitaLand Limited CapitaLand Investment Limited CapitaLand Integrated Commercial Trust – units Mapletree North Asia Commercial Trust – units Mapletree Treasury Services Limited - 3.95% Perpetual Bond Singapore Airlines Limited Singapore Technologies Engineering Ltd Singapore Telecommunications Limited Temasek Financial (IV) Private Limited - 2.70% T2023 Temasek S$ Bond due 25 October 2023 14,615 159,248 21,531 – 57,344 59,471 S$250,000 20,669 1,495 117,108 S$13,000 14,615 159,248 –* 21,531* 71,680* 60,321 S$250,000 20,669 1,495 117,108 S$13,000 * Scheme of arrangement by CapitaLand Limited (“CapitaLand”), pursuant to which every 1 CapitaLand share was exchanged for 1 share in CapitaLand Investment Limited, 0.154672686 unit in CapitaLand Integrated Commercial Trust, and S$0.951 in cash. SP PowerAssets Limited Directors’ statements Year ended 31 March 2022 3 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 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. As at the end of the financial year, there were no unissued shares of the Company under option. On behalf of the Board of Directors MR STANLEY HUANG TIAN GUAN Chairman MS LOONG HUI CHEE Director 1 June 2022 SP PowerAssets Limited Independent auditor’s report Year ended 31 March 2022 4 Independent Auditor’s Report For The Financial Year Ended 31 March 2022 Independent Auditor’s Report to the Member of SP PowerAssets Limited Report on the Audit of the Financial Statements Opinion We have audited the accompanying financial statements of SP PowerAssets Limited (the “Company”) which comprise the balance sheet as at 31 March 2022, the income statement, statement of comprehensive income, statement of changes in equity and statement of cash flows for the financial year then ended, and notes to the financial statements, including a summary of significant accounting policies. In our opinion, the accompanying financial statements 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 Company as at 31 March 2022 and of the financial performance, changes in equity and cash flows of the Company for the year ended on that date. Basis for Opinion We conducted our audit in accordance with Singapore Standards on Auditing (“SSAs”). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company 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. Key Audit Matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For the matter below, our description of how our audit addressed the matter is provided in that context. We have fulfilled our responsibilities described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report, including in relation to the matter. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the financial statements. The results of our audit procedures, including the procedures performed to SP PowerAssets Limited Independent auditor’s report Year ended 31 March 2022 5 address the matter below, provide the basis for our audit opinion on the accompanying financial statements. Goodwill impairment review The Company has recorded an asset of $2,166.8 million which represents goodwill on the acquisition of the transmission business as discussed in Note 6. The goodwill balance is reviewed annually for impairment based on fair value which is determined by discounting expected future cash flows as discussed in Note 6. The assessment of fair value requires significant management judgement in establishing future cash flows, the terminal value and the discount rate. Our audit procedures included assessing the key assumptions used in arriving at the fair value, including the terminal value, forecast future cash flows, and the discount rate. In performing our audit procedures, we assessed the reasonableness of cash flow projections by assessing the reliability of management’s budgeting process, the Company’s own historical data and performance and the impact of Covid-19 pandemic on market and economic conditions prevailing at the reporting date. In relation to other key inputs, such as the terminal value and discount rate, we compared these inputs to externally available industry, economic and financial data. We further reviewed the adequacy of the disclosure in the financial statements in Note 6 of the financial statements. 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. 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. SP PowerAssets Limited Independent auditor’s report Year ended 31 March 2022 6 In preparing the financial statements, management is responsible for assessing the Company’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 Company or to cease operations, or has no realistic alternative but to do so. The directors’ responsibilities include overseeing the Company’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 Company’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 Company’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 Company to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. SP PowerAssets Limited Independent auditor’s report Year ended 31 March 2022 7 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. We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with the directors, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. 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 have been properly kept in accordance with the provisions of the Act. The engagement partner on the audit resulting in this independent auditor’s report is Philip Ling Soon Hwa. Ernst & Young LLP Public Accountants and Chartered Accountants Singapore 1 June 2022 SP PowerAssets Limited Financial statements Year ended 31 March 2022 8 Balance sheet As at 31 March 2022 Non-current assets Property, plant and equipment Intangible assets Derivative assets Current assets Inventories Trade and other receivables Current tax receivable Derivative assets Cash and cash equivalents Total assets Regulatory deferral accounts (“RDA”) debit balances Total assets and RDA debit balances Note 4 6 7 8 9 7 10 11 2022 $ million 10,647.7 2,169.3 124.6 12,941.6 34.8 340.0 − 55.6 0.2 430.6 13,372.2 223.2 13,595.4 2021 $ million 10,473.5 2,171.1 176.1 12,820.7 35.0 281.2 13.7 1.1 1.8 332.8 13,153.5 222.3 13,375.8 Equity Share capital Hedging reserve Accumulated profits Total equity 12 13 2,512.4 81.6 2,595.4 5,189.4 2,512.4 52.4 2,511.5 5,076.3 Non-current liabilities Debt obligations Derivative liabilities Deferred tax liabilities Deferred income Deferred construction cost compensation Lease liabilities 14 7 15 16 17 5 2,416.7 160.4 1,442.3 133.8 256.2 0.4 4,409.8 3,320.1 63.9 1,386.5 142.3 256.2 − 5,169.0 Current liabilities Debt obligations Derivative liabilities Current tax payable Trade and other payables Lease liabilities Total liabilities Total equity and liabilities Regulatory deferral accounts (“RDA”) related deferred tax liabilities Total equity, liabilities and RDA related deferred tax liabilities 14 7 18 5 11 777.8 5.2 50.6 3,121.3 3.4 3,958.3 8,368.1 13,557.5 37.9 13,595.4 − 4.4 − 3,088.3 − 3,092.7 8,261.7 13,338.0 37.8 13,375.8 The accompanying notes form an integral part of these financial statements. SP PowerAssets Limited Financial statements Year ended 31 March 2022 9 Income statement Year ended 31 March 2022 Note 2022 $ million 2021 $ million Revenue Other income Expenses - Depreciation of property, plant and equipment - Amortisation of intangible assets - Maintenance - Management fees - Property taxes - Agency fee - Support services - Other operating expenses Operating profit Finance income Finance costs Profit before taxation Tax expense Profit for the year Net movement in RDA balances related to profit or loss and the related deferred tax movement Profit for the year and net movement in RDA balances 19 20 4 6 21 22 23 24 11 1,660.4 73.3 (622.2) (2.8) (101.8) (153.9) (60.2) (27.6) (36.1) (54.3) 674.8 0.1 (135.8) 539.1 (100.7) 438.4 0.8 439.2 1,438.1 81.4 (591.7) (9.0) (96.2) (153.2) (60.4) (26.2) (33.4) (47.2) 502.2 # (132.3) 369.9 (68.7) 301.2 170.2 471.4 # Less than $0.1 million The accompanying notes form an integral part of these financial statements. SP PowerAssets Limited Financial statements Year ended 31 March 2022 10 Statement of comprehensive income Year ended 31 March 2022 2022 $ million 2021 $ million Profit for the year and net movement in RDA balances 439.2 471.4 Other comprehensive income Items that are or may be reclassified subsequently to profit or loss: Effective portion of changes in fair value of cash flow hedges, net of tax 31.7 24.2 Net change in fair value of: - Cash flow hedges reclassified to profit or loss, net of tax (2.6) 1.0 - Cash flow hedges on recognition of the hedged items on balance sheet, net of tax 0.1 (1.2) Other comprehensive income for the year, net of tax 29.2 24.0 Total comprehensive income for the year 468.4 495.4 The accompanying notes form an integral part of these financial statements. SP PowerAssets Limited Financial statements Year ended 31 March 2022 11 Statement of changes in equity Year ended 31 March 2022 Note Share capital $ million Hedging reserve $ million Accumulated profits $ million Total equity $ million At 1 April 2020 2,512.4 28.4 2,384.8 4,925.6 Total comprehensive income for the year Profit for the year and net movement in RDA balances − − 471.4 471.4 Other comprehensive income Effective portion of changes in fair value of cash flow hedges, net of tax − 24.2 − 24.2 Net change in fair value of: - Cash flow hedges reclassified to profit or loss, net of tax − 1.0 − 1.0 - Cash flow hedges on recognition of the hedged items on balance sheet, net of tax − (1.2) − (1.2) Total other comprehensive income Total comprehensive income for the year − 24.0 471.4 495.4 − 24.0 − 24.0 Transaction with owner, recognised directly in equity Contributions by and distribution to owner Dividends declared 29 − − (344.7) (344.7) At 31 March 2021 2,512.4 52.4 2,511.5 5,076.3 The accompanying notes form an integral part of these financial statements. SP PowerAssets Limited Financial statements Year ended 31 March 2022 12 Statement of changes in equity Year ended 31 March 2022 (cont'd) Note Share capital $ million Hedging reserve $ million Accumulated profits $ million Total equity $ million At 1 April 2021 2,512.4 52.4 2,511.5 5,076.3 Total comprehensive income for the year Profit for the year and net movement in RDA balances − − 439.2 439.2 Other comprehensive income Effective portion of changes in fair value of cash flow hedges, net of tax − 31.7 − 31.7 Net change in fair value of: - Cash flow hedges reclassified to profit or loss, net of tax − (2.6) − (2.6) - Cash flow hedges on recognition of the hedged items on balance sheet, net of tax − 0.1 − 0.1 Total other comprehensive income − 29.2 − 29.2 Total comprehensive income for the year − 29.2 439.2 468.4 Transaction with owner, recognised directly in equity Contributions by and distribution to owner Dividends declared At 31 March 2022 29 − − (355.3) (355.3) 2,512.4 81.6 2,595.4 5,189.4 The accompanying notes form an integral part of these financial statements. SP PowerAssets Limited Financial statements Year ended 31 March 2022 13 Statement of cash flows Year ended 31 March 2022 2022 $ million 2021 $ million Cash flows from operating activities Profit for the year and net movement in RDA balances 439.2 471.4 Adjustments for: Tax expense 23 100.7 68.7 Depreciation and amortisation 625.0 600.7 Loss on disposal of property, plant and equipment and intangible assets 24 4.0 0.6 Deferred income 16 (8.8) (8.7) Inventories written down, net 8 4.3 5.3 (Write-back of allowance) / allowance for expected credit loss on trade receivables, net 9 (2.3) 7.5 Finance income 21 (0.1) # Finance costs 22 135.8 132.3 Exchange gain, net 24 (0.3) (0.2) Net movements in RDA balances related to profit or loss and the related deferred tax movement 11 (0.8) (170.2) 1,107.4 Changes in working capital: Inventories (4.1) (0.7) Trade and other receivables (56.8) (37.0) Trade and other payables 76.0 (6.2) Cash generated from operations 1,311.8 1,063.5 Interest received 0.1 # Income tax refunded / (paid) 13.4 (10.0) Net cash generated from operating activities 1,325.3 1,053.5 Cash flows from investing activities Purchase of property, plant and equipment (860.6) (832.0) Purchase of intangible assets (1.0) (0.9) Proceeds from disposal of property, plant and equipment and intangible assets 6.2 5.5 Net cash used in investing activities (855.4) (827.4) Note 1,296.7 Cash flows from financing activities Interest paid (56.6) (85.9) Commitment fees paid (0.1) (1.5) Repayment of related company loans (411.5) (129.9) Payment of principal portion of lease liabilities 5 (3.3) (7.0) Net cash used in financing activities (471.5) (224.3) Net (decrease) / increase in cash and cash equivalents Cash and cash equivalents at beginning of the year (1.6) 1.8 1.8 – Cash and cash equivalents at end of the year 10 0.2 1.8 # Less than $0.1 million During the financial year, tax-exempt dividend declared to the immediate holding company in relation to the financial year ended 31 March 2021 of $355.3 million (2021: $344.7 million) were settled via loans from a related company. In 2021, the Company repaid two of its bonds amounting to $780.0 million. The amounts were settled via loans from a related company. The accompanying notes form an integral part of these financial statements. SP PowerAssets Limited Financial statements Year ended 31 March 2022 14 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 1 June 2022. 1 Domicile and activities SP PowerAssets 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 principal activities of the Company are those relating to the provision of services in connection with the transmission and distribution of electricity. The immediate and ultimate holding companies are Singapore Power Limited and Temasek Holdings (Private) Limited respectively. Both companies are incorporated in the Republic of Singapore. 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 2.4 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 The financial statements are presented in Singapore dollars, which is the Company’s functional currency. All financial information presented in Singapore dollars has been rounded to the nearest 0.1 million, unless otherwise stated. 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: SP PowerAssets Limited Financial statements Year ended 31 March 2022 15 Impairment of goodwill and indefinite-lived intangible assets Impairment reviews in respect of goodwill and intangible assets are performed at least annually. More regular reviews are performed if changes in circumstances or the occurrence of events indicate potential impairment. The Company uses the present value of future cash flows to determine the recoverable amounts of the cash generating units. In calculating the recoverable amounts, significant management judgement is required in forecasting cash flows of the cash generating units, in estimating the terminal growth values and in selecting an appropriate discount rate. Details of key assumptions made are set out in Note 6. 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 3.14) 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 and volume of electricity delivered to consumers. Note 3.12 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 Company 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 Company 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 Company applies the following reliefs as and when uncertainty arising from the 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 Company 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 Notes 3.4 and 26. There was no significant financial impact to the Company as a result of these amendments. SP PowerAssets Limited Financial statements Year ended 31 March 2022 16 3 3.1 Significant accounting policies The accounting policies set out below have been applied consistently for all periods presented in these financial statements, and have been consistently applied by the Company, which addresses changes in accounting policies due to the adoption of new and revised standards. Foreign currencies Foreign currency transactions Transactions in foreign currencies are translated to the functional currency of the Company at the exchange rate at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated to the functional currency 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 translated to the functional currency at the exchange rate prevailing on the date 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 qualifying cash flow hedges, which are recognised in other comprehensive income. 3.2 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, 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. SP PowerAssets Limited Financial statements Year ended 31 March 2022 17 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 Company, and its cost can be measured reliably. The carrying amount of the replaced component is derecognised. The costs of the day-to-day servicing of property, plant and equipment are recognised in profit or loss as incurred. Depreciation Depreciation is based on the cost of an asset less its residual value. Significant components of individual assets are assessed and if a component has a useful life that is different from the remainder of that asset, that component is depreciated separately. Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of each component of an item of property, plant and equipment. 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 Transformers and switchgear Other plant and machinery - Works and other equipment - Standby electricity generator and other machinery Mains Other fixed assets (principally meters and motor vehicles) Over the term of the lease ranging from 30 to 99 years 30 to 40 years or the lease term, if shorter 30 years 3 to 10 years 15 to 25 years 30 years 3 to 10 years Depreciation methods, useful lives and residual values are reviewed at each financial year end and adjusted if appropriate. 3.3 Intangible assets Goodwill Goodwill arising from acquisition represents the excess of the cost of acquisition over the fair value of identifiable net assets acquired. Subsequent measurement Goodwill is measured at cost less accumulated impairment losses and is tested for impairment on an annual basis as described in Note 3.5. SP PowerAssets Limited Financial statements Year ended 31 March 2022 18 Other intangible assets Deferred expenditure relates mainly to contributions paid by the Company in accordance with regulatory requirements towards capital expenditure costs incurred by electricity generation companies, 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 Company derives benefits from the capital contribution payments, which is generally the useful life of the relevant equipment ranging from 7 to 19 years. Computer software is stated at cost less accumulated amortisation and accumulated impairment losses. Amortisation is recognised in profit or loss on a straight-line basis over the estimated useful life of 5 years. Computer software development in-progress is stated at cost. No amortisation is provided until it is ready for use. 3.4 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 Company 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 Company 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 Company’s business model for managing the asset and the contractual cash flow characteristics of the asset. 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 derecognised or impaired, and through the amortisation process. SP PowerAssets Limited Financial statements Year ended 31 March 2022 19 Derecognition The Company derecognises 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 Company 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 Company becomes a party to the contractual provisions of the financial instrument. The Company 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 as 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 derecognised, 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. Derecognition A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. On derecognition, 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 sheet when, and only when, the Company 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. SP PowerAssets Limited Financial statements Year ended 31 March 2022 20 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 Company 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 Company designates certain derivatives and non-derivative financial instruments as hedging instruments in qualifying hedging relationships. At inception of designated hedging relationships, the Company documents the risk management objective and strategy for undertaking the hedge. The Company 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 Company 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 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. SP PowerAssets Limited Financial statements Year ended 31 March 2022 21 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 Company 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 Company 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 Company 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 Company 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. For its highly probable assessment of the hedged item, the Company 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 Company 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. SP PowerAssets Limited Financial statements Year ended 31 March 2022 22 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 Company 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 Company 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 Company 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 Company 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 Company deems that the hedging reserve recognised in other comprehensive income for the hedging relationship is based on the alternative benchmark rate on which the hedged future cash flows will be based. 3.5 Impairment Non-derivative financial assets The Company 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 Company 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). SP PowerAssets Limited Financial statements Year ended 31 March 2022 23 For trade receivables and contract assets, the Company applies a simplified approach in calculating ECLs. Therefore, the Company does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. The Company 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. The Company considers a financial asset potentially in default when contractual payments are 180 days past due. However, in certain cases, the Company may also consider a financial asset to be in default when internal or external information indicates that the Company is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Company. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows. Non-financial assets The carrying amounts of the Company’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 amount is 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. Impairment losses are recognised in profit or loss. Impairment losses recognised in respect of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to the CGU (group of CGUs), and then to reduce the carrying amounts of the other assets in the CGU (group of CGUs) on a pro rata basis. An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised. Such reversal of impairment is recognised in profit or loss. SP PowerAssets Limited Financial statements Year ended 31 March 2022 24 3.6 Inventories Inventories are measured at the lower of cost and net realisable value. Cost is determined based on the weighted average method, and includes expenditure in acquiring the inventories and other costs incurred in bringing them to their existing location and condition. Cost may also include transfers from other comprehensive income of any gain or loss on qualifying cash flow hedges of foreign currency purchases of inventories. Allowance for obsolete, deteriorated or damaged stocks is made when considered appropriate. 3.7 Accrued revenue Revenue accrual estimates are made to account for the unbilled amount at the reporting date. 3.8 Provisions A provision is recognised if, as a result of past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as finance cost. 3.9 Government grants Capital grants are recognised on a straight-line basis and taken to profit or loss over the periods necessary to match the depreciation of the assets purchased with the government grants. Operating grants are presented within other income and are taken to profit or loss on a systematic basis in the same periods in which the expenses are incurred. 3.10 Deferred construction cost compensation Deferred construction cost compensation received to defray costs relating to the construction of an asset are accounted for as a government grant. Note 3.9 sets out the government grant accounting policy. 3.11 Deferred income Deferred income comprises (i) government grant for the purchase of depreciable assets and (ii) contributions made by certain customers towards the cost of capital projects received prior to 1 July 2009. Government grants and customer contributions Deferred income is recognised on a straight-line basis and taken to profit or loss over the periods necessary to match the depreciation of the assets purchased with the customers’ contributions and government grant. SP PowerAssets Limited Financial statements Year ended 31 March 2022 25 3.12 Regulatory deferral account (“RDA”) debit or credit balances Use of system charges Regulatory deferral account debit or credit balances represent timing differences between revenue recognised for financial reporting purposes and revenue earned for regulatory purposes. Movements in the regulatory deferral account debit or credit balances are recognised in profit or loss over the periods necessary to adjust revenue recognised for financial reporting purposes to revenue earned for regulatory purposes based on services rendered. At the end of each regulatory period, adjustments for amounts to be recovered or refunded are taken to profit or loss as net movement in regulatory deferral account balances. 3.13 Price regulation and licence The Company’s operations in Singapore are regulated under the Electricity Licence for Transmission Licensee issued by the EMA of Singapore. Allowed revenue to be earned from the transmission of electricity is regulated based on certain formulae and parameters set out in the licence, relevant acts and codes. Revenue recognised for financial reporting purposes may differ from revenue earned for regulatory purposes due to volume variances. This may result in adjustments that may increase or decrease tariffs in succeeding periods. Amounts to be recovered or refunded are brought to account as adjustments to net movement in regulatory deferral account debit or credit balances in the income statement in the period in which the Company becomes entitled to the recovery or liable for the refund. The Company’s capital expenditure may differ from its regulatory plan and is subject to a review by the EMA. The results of the variances in capital expenditure may be translated into price adjustments, if any, in the following reset period. The use of system charges are approved by the EMA for a 5-year regulatory period in accordance with the price regulation framework. 3.14 Revenue recognition Revenue is measured based on the consideration to which the Company expects to be entitled in exchange for transferring promised services to a customer, excluding amounts collected on behalf of third parties. Revenue is recognised when the Company satisfies a performance obligation by transferring the promised service to the customer, which is when the customer obtains control of the service. A performance obligation may be satisfied at a point in time or over time. The amount of revenue recognised is the amount allocated to the satisfied performance obligation. Use of system charges Revenue for financial reporting purposes is recognised over time based on tariff billings to customers when the volume of electricity is delivered. SP PowerAssets Limited Financial statements Year ended 31 March 2022 26 3.15 Leases The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. As lessor Leases in which the Company does not transfer substantially all the risks and rewards of ownership of the asset are classified as operating leases. Initial direct costs incurred in negotiating an operating lease are added to the carrying amount of the leased asset and recognised over the lease term. Rental income under operating leases are recognised in profit or loss over the term of the lease. As lessee The Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Company recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets. (i) Right-of-use assets The Company recognises right-of-use assets at the commencement or on modification date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets. If ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset. The right-of-use assets are also subject to impairment. Refer to Note 3.5 for the accounting policy. (ii) Lease liabilities At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating the lease, if the lease term reflects the Company exercising the option to terminate. SP PowerAssets Limited Financial statements Year ended 31 March 2022 27 Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they are incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs. In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset. (iii) Short-term leases The Company applies the short-term lease recognition exemption to its short-term leases of leasehold land (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). Lease payments on short-term leases are recognised as expense on a straight-line basis over the lease term. 3.16 Finance income and costs Finance income comprises interest income on funds invested. Interest income is recognised as it accrues, using the effective interest method. Finance costs comprise interest expense on borrowings, unwinding of the discount on provisions, fair value gains or losses on financial assets and liabilities at fair value through profit or loss, impairment losses recognised on financial assets (other than trade receivables), gains or losses on hedging instruments that are recognised in profit or loss, amortisation of transaction costs capitalised and interest expense on lease liabilities. Borrowing costs that are not directly attributable to the acquisition, construction or production of a qualifying asset are recognised in profit or loss using the effective interest method. 3.17 Tax expense Tax expense comprises current and deferred tax. Current and deferred taxes are recognised in profit or loss except to the extent that it relates to items recognised directly in equity or in the other comprehensive income. Current tax is the expected tax payable or receivable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. SP PowerAssets Limited Financial statements Year ended 31 March 2022 28 Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for: • temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss; and • taxable temporary differences arising on the initial recognition of goodwill. Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences, to the extent that it is probable that future taxable profits will be available against which they can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised. In determining the amount of current and deferred tax, the Company takes into account the impact of uncertain tax positions and whether additional taxes and interest may be due. The Company believes that its accruals for tax liabilities are adequate for all open tax years based on its assessment of many factors, including interpretations of tax law and prior experience. This assessment relies on estimates and assumptions and may involve a series of judgements about future events. New information may become available that causes the Company to change its judgement regarding the adequacy of existing tax liabilities; such changes to tax liabilities will impact tax expense in the period that such a determination is made. The movement in a deferred tax asset or liability that arises from the temporary differences created as a result of recognising regulatory deferral account balances are presented in the income statement net of the movement in regulatory deferral account balances related to profit or loss. 3.18 Segment reporting The Company determines and presents operating segments based on the information that is provided internally to the chief operating decision maker. The Company has only one operating segment – electricity transmission and distribution, and hence no separate disclosures are made in the financial statements. SP PowerAssets Limited Financial statements Year ended 31 March 2022 29 3.19 New standards and interpretations not yet adopted A number of new amendments to standards that are effective for annual periods beginning after 1 April 2021 have not been applied in preparing these financial statements. The following amended standards are not expected to have a significant impact on the Company’s financial statements: • Amendments to SFRS(I) 1-37: Onerous Contracts—Cost of Fulfilling a Contract • Amendments to SFRS(I) 1-1 and SFRS(I) Practice Statement 2: Disclosure of Accounting Policies • Amendments to SFRS(I) 1-8: Definition of Accounting Estimates • Amendments to SFRS(I) 1-12: Deferred Tax related to Assets and Liabilities arising from a Single Transaction SP PowerAssets Limited Financial statements Year ended 31 March 2022 30 4 Property, plant and equipment Cost At 1 April 2020 Additions Disposals Transfers from intangible assets Reclassification At 31 March 2021 Additions Disposals Reclassification At 31 March 2022 Accumulated depreciation At 1 April 2020 Depreciation Disposals At 31 March 2021 Depreciation Disposals At 31 March 2022 Carrying amounts At 31 March 2021 At 31 March 2022 Freehold land $ million Leasehold land $ million Buildings and tunnels $ million Switchgear $ million Transformers $ million Other plant and machinery $ million Mains $ million Other fixed assets $ million Constructionin-progress $ million Total $ million 0.3 500.8 1,652.6 3,262.1 1,725.5 453.3 6,123.4 219.7 2,234.6 16,172.3 − − − 1.0 − 2.2 − 16.0 808.9 828.1 − − − (39.9) (10.9) (14.1) (0.5) (6.0) − (71.4) − − − − − − − − 0.7 0.7 − 3.6 39.8 127.8 125.7 38.4 1,130.4 26.0 (1,491.7) − 0.3 504.4 1,692.4 3,351.0 1,840.3 479.8 7,253.3 255.7 1,552.5 16,929.7 − − 7.2 1.2 − 3.2 − 19.6 775.4 806.6 − − (0.1) (30.1) (30.4) (7.0) (106.7) (9.3) (3.2) (186.8) − (0.4) 154.8 123.8 86.9 27.7 308.0 9.0 (709.8) − 0.3 504.0 1,854.3 3,445.9 1,896.8 503.7 7,454.6 275.0 1,614.9 17,549.5 − 162.8 626.1 1,615.0 626.3 265.1 2,530.3 105.1 − 5,930.7 − 9.9 56.1 144.4 65.7 40.7 248.8 26.1 − 591.7 − − − (37.3) (8.6) (14.1) (0.5) (5.7) − (66.2) − 172.7 682.2 1,722.1 683.4 291.7 2,778.6 125.5 − 6,456.2 − 10.1 61.9 148.8 67.7 43.6 255.7 34.4 − 622.2 − − (0.1) (26.2) (27.9) (6.9) (106.7) (8.8) − (176.6) − 182.8 744.0 1,844.7 723.2 328.4 2,927.6 151.1 − 6,901.8 0.3 331.7 1,010.2 1,628.9 1,156.9 188.1 4,474.7 130.2 1,552.5 10,473.5 0.3 321.2 1,110.3 1,601.2 1,173.6 175.3 4,527.0 123.9 1,614.9 10,647.7 SP PowerAssets Limited Financial statements Year ended 31 March 2022 31 Expenses capitalised The following expenses were capitalised in property, plant and equipment during the year: Management fees (staff cost) 2022 $ million 78.8 2021 $ million 76.1 As at 31 March 2022, property, plant and equipment includes right-of-use assets of $325.0 million (2021: $331.7 million) relating to leasehold land, building and office under leasing arrangements. Details are presented in Note 5. 5 Right-of-use assets / Lease liabilities Set out below are the carrying amounts of right-of-use assets recognised within property, plant and equipment and the movements during the year: Leasehold land $ million Buildings and tunnels $ million Total $ million At 1 April 2020 Additions Depreciation At 31 March 2021 Additions Reclassification Depreciation At 31 March 2022 338.0 3.6 (9.9) 331.7 − (0.4) (10.1) 321.2 3.5 − (3.5) − 7.2 − (3.4) 3.8 341.5 3.6 (13.4) 331.7 7.2 (0.4) (13.5) 325.0 Set out below are the carrying amounts of lease liabilities (included under trade and other payables) and the movements during the year: At 1 April Additions Accretion of interest Payments At 31 March Current Non-current # Less than $0.1 million 2022 $ million − 7.1 0.1 (3.4) 3.8 3.4 0.4 2021 $ million 7.1 − # (7.1) − − − The maturity analysis of lease liabilities is disclosed in Note 26. SP PowerAssets Limited Financial statements Year ended 31 March 2022 32 The following are the amounts recognised in profit or loss: Depreciation expense of right-of-use assets Interest expense on lease liabilities Expenses relating to short-term leases (included in other operating expenses) 2022 $ million 13.5 0.1 1.7 15.3 2021 $ million 13.4 − 2.2 15.6 The Company had total cash outflow for leases of $5.1 million (2021: $9.3 million) for the financial year ended 31 March 2022. 6 Intangible assets Goodwill on acquisition $ million Deferred expenditure $ million Computer software $ million Computer software development in-progress $ million Total $ million Cost At 1 April 2020 Additions Disposals Transfers to property, plant and equipment Reclassification At 31 March 2021 Additions Disposals Reclassification At 31 March 2022 2,166.8 109.4 46.4 1.9 2,324.5 − 0.8 − 0.1 0.9 − − (7.6) − (7.6) − − − (0.7) (0.7) − − 0.3 (0.3) − 2,166.8 110.2 39.1 1.0 2,317.1 − 1.0 − − 1.0 − (0.3) − − (0.3) − − 0.9 (0.9) − 2,166.8 110.9 40.0 0.1 2,317.8 Accumulated amortisation At 1 April 2020 Amortisation Disposals At 31 March 2021 Amortisation Disposals At 31 March 2022 − 102.9 40.8 − 143.7 − 4.6 4.4 − 9.0 − − (6.7) − (6.7) − 107.5 38.5 − 146.0 − 2.4 0.4 − 2.8 − (0.3) − − (0.3) − 109.6 38.9 − 148.5 Carrying amounts At 31 March 2021 At 31 March 2022 2,166.8 2.7 0.6 1.0 2,171.1 2,166.8 1.3 1.1 0.1 2,169.3 SP PowerAssets Limited Financial statements Year ended 31 March 2022 33 Impairment test for goodwill The Company as a whole is considered a CGU. The recoverable amount of the CGU is based on the higher of fair value less costs to sell and value in use. The recoverable amount of the CGU is determined to be higher than its carrying amount hence no impairment is necessary. Fair value is determined by discounting future cash flows generated from the continuing use of the CGU and is based on the following key assumptions: 1. Cash flows are projected based on a 5-year business plan. 2. Cash flows are discounted using a pre-tax discount rate of 6.28% (2021: 5.23%) per annumthat reflects current market assessments of the time value of money and risks specific to the CGU. 3. Terminal value is calculated based on a multiple of 1.3 times (2021: 1.2 times) of the carrying amounts of property, plant and equipment. SP PowerAssets Limited Financial statements Year ended 31 March 2022 34 7 Derivative assets and liabilities Current: Cross-currency interest rate swaps Interest rate swaps Foreign exchange forwards Outstanding notional amounts $ million 623.8 200.0 224.0 2022 2021 Assets $ million Liabilities $ million Outstanding notional amounts $ million Assets $ million Liabilities $ million 53.6 − − − − 1.1 − 1,285.6 − (1.1) 0.9 (5.2) 215.4 1.1 (3.3) 55.6 (5.2) 1.1 (4.4) Non-current: Cross-currency interest rate swaps 2,149.1 − (160.4) 2,772.9 116.0 (62.5) Interest rate swaps 2,599.1 124.6 − 2,799.1 59.6 − Foreign exchange forwards 1.2 − # 58.8 0.5 (1.4) 124.6 (160.4) 176.1 (63.9) # Less than $0.1 million SP PowerAssets Limited Financial statements Year ended 31 March 2022 35 Offsetting financial assets and financial liabilities The Company’s derivative transactions are entered into under International Swaps and Derivatives Association (“ISDA”) Master Agreements. The ISDA agreements create a right of set-off of recognised amounts that is enforceable only following an event of default, insolvency or bankruptcy of the Company or the counterparties. As such, these agreements do not meet the criteria for offsetting under SFRS(I) 1-32 Financial Instruments: Presentation. The Company and its counterparties do not intend to settle on a net basis or to realise the assets and settle the liabilities simultaneously but have the right to set off in the case of default and insolvency or bankruptcy. The Company’s financial assets and liabilities subject to an enforceable master netting arrangement that are not otherwise set-off are as follows: Types of financial assets 2022 Derivative assets 2021 Derivative assets Gross amounts of recognised financial assets $ million Related amounts not offset in the balance sheet – financial instruments $ million Net amounts $ million 180.2 (108.9) 71.3 177.2 (20.8) 156.4 Types of financial liabilities 2022 Gross amounts of recognised financial liabilities $ million Related amounts not offset in the balance sheet – financial instruments $ million Net amounts $ million Derivative assets 2021 Derivative assets 165.6 (108.9) 56.7 68.3 (20.8) 47.5 SP PowerAssets Limited Financial statements Year ended 31 March 2022 36 Hedge Accounting As at 31 March 2022 and 2021, the Company held various types of derivative financial instruments and formally designated a portion of them in cash flow and fair value hedge relationships for accounting purposes, in accordance with the requirements of SFRS(I) 9. The following table summarises the derivative financial instruments in the balance sheet and the effects of hedge accounting on the Company’s financial position and performance. Hedge instrument Hedged item Changes in fair value used for calculating hedge ineffectiveness Outstanding notional amounts $ million Assets / (liabilities) $ million Carrying amount of Assets / (liabilities) $ million Financial statement line that includes the hedged item Accumulated amount of fair value adjustments $ million Hedging instrument $ million Hedged item $ million Hedge ineffectiveness recognised in profit or loss $ million Hedge rates Maturity (Year) 2022 Cash flow hedge Interest rate risk – Finance cost 5,197.0 158.0 − − − 52.4 (52.4) − 0.2780% - 2.3450% Up to 2027 Foreign exchange risk - Refer to Note 26 under Foreign currency risk 225.2 (4.3) − − − 3.6 (3.6) − CHF/SGD: 1.397 - 1.501 CNY/SGD: 0.187 - 0.196 EUR/SGD: 1.537 - 1.656 JPY/SGD: 0.011 - 0.013 MYR/SGD: 3.031 USD/SGD: 1.334 - 1.382 Up to 2022 Up to 2023 Up to 2024 Up to 2023 Up to 2022 Up to 2022 Fair value hedge Interest rate risk 375.0 6.0 (281.7) Debt obligations (7.1) (13.8) 14.0 0.2 6 month SOR/SORA Up to 2029 Foreign exchange risk 2,149.1 (145.1) (1,986.5) Debt obligations 156.5 (113.1) 108.6 (4.5) Refer to footnotes of Note 14 Up to 2027 SP PowerAssets Limited Financial statements Year ended 31 March 2022 37 Hedge instrument Hedged item Changes in fair value used for calculating hedge ineffectiveness Outstanding notional amounts $ million Assets / (liabilities) $ million Carrying amount of Assets / (liabilities) $ million Financial statement line that includes the hedged item Accumulated amount of fair value adjustments $ million Hedging instrument $ million Hedged item $ million Hedge ineffectiveness recognised in profit or loss $ million Hedge rates Maturity (Year) 2021 Cash flow hedge Interest rate risk – Finance cost 6,482.6 114.5 − − − 37.0 (38.6) (1.6) 0.2780% - 2.3450% Up to 2027 Foreign exchange risk - Refer to Note 26 under Foreign currency risk 274.2 (3.1) − − − (6.9) 6.9 − CHF/SGD: 1.397 CNY/SGD: 0.187 - 0.199 EUR/SGD: 1.537 - 1.656 JPY/SGD: 0.011 - 0.013 MYR/SGD: 3.028 - 3.040 USD/SGD: 1.334 - 1.425 Up to 2021 Up to 2023 Up to 2024 Up to 2023 Up to 2021 Up to 2022 Fair value hedge Interest rate risk 375.0 19.8 (295.6) Debt obligations (21.1) (6.4) 7.0 0.6 6 month SOR Up to 2029 Foreign exchange risk 2,149.1 (22.3) (2,103.6) Debt obligations 38.2 (92.5) 98.5 6.0 Refer to footnotes of Note 14 Up to 2027 SP PowerAssets Limited Financial statements Year ended 31 March 2022 38 8 Inventories 2022 $ million 2021 $ million Cables Transformers Switchgear Spare parts and accessories 24.6 1.6 7.4 1.2 34.8 24.8 3.2 4.7 2.3 35.0 In the financial year ended 31 March 2022, inventories recognised as an expense in the income statement amounted to $4.2 million (2021: $4.5 million). The write-down of inventories to net realisable value amounted to $4.3 million (2021: $5.3 million). The utilization of inventory obsolescence provision upon sale of the inventory items amounted to $3.1 million (2021: $2.1 million). 9 Trade and other receivables 2022 $ million 2021 $ million Trade receivables: - Third parties - Related companies - Immediate holding company Impairment loss Accrued revenue Deposits Prepayments 123.9 63.5 0.1 187.5 (6.5) 181.0 117.6 0.4 299.0 41.0 119.3 38.9 0.3 158.5 (8.8) 149.7 101.7 0.3 251.7 29.5 340.0 281.2 Trade receivables The average credit term is between 8 to 30 calendar days (2021: between 7 to 30 calendar days). Collateral in the form of bank guarantees and deposits are obtained from counterparties where appropriate. There were no amounts called upon during the year. SP PowerAssets Limited Financial statements Year ended 31 March 2022 39 The maximum exposure to credit risk for trade receivables at the reporting date by types of customer is as follows: Contestable transmission / distribution customers Non-contestable transmission / distribution customers Project-based customers Others 2022 $ million 133.0 22.9 22.3 2.8 181.0 2021 $ million 103.2 6.2 36.7 3.6 149.7 The Company provides for lifetime expected credit losses for all trade receivables using a provision matrix. The provision rates are determined based on the evaluation of collectability and ageing analysis of trade receivables and on the estimation of the management. A considerable amount of estimation is required in assessing the ultimate realisation of these receivables, including the current creditworthiness and the past collection history of each customer. The Company categorises trade receivables for potential write-off on the overdue trade receivables of customers that have failed to make contractual payments for more than 180 days. Where trade receivables have been impaired or written off, the Company continues to engage enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognised in profit or loss. The maximum exposure to credit risk for trade receivables by geographic region, relates mainly to Singapore at the reporting date. There is no significant concentration of credit risk of trade receivables. The Company has policies in place to monitor its credit risk. Contractual deposits are collected and sufficient collaterals are obtained to mitigate the risk of financial loss from defaults. The Company’s customers are spread across diverse industries and ongoing credit evaluation is performed on the financial condition of receivables to ensure minimal exposure to bad debts. The ageing of trade receivables at the reporting date is as follows: Not past due Past due 0 - 30 days Past due 31 - 90 days Past due 91 - 180 days Past due more than 180 days 2022 $ million 167.7 5.3 2.9 0.6 11.0 187.5 2021 $ million 134.3 1.4 5.2 2.2 15.4 158.5 SP PowerAssets Limited Financial statements Year ended 31 March 2022 40 Expected credit losses The movement in allowance for expected credit losses of trade receivables computed based on lifetime ECL are as follows: At 1 April Impairment loss recognised Impairment loss written back At 31 March 2022 $ million 8.8 − (2.3) 6.5 2021 $ million 1.3 9.0 (1.5) 8.8 Trade and other receivables are denominated predominantly in the functional currency of the Company. 10 Cash and cash equivalents 2022 $ million 2021 $ million Cash at bank and in hand 0.2 1.8 As at reporting date, cash and cash equivalents are denominated in the functional currency of the Company. 11 Regulatory deferral accounts Net movement in RDA balances related to profit or loss RDA related deferred tax movement Net movement in RDA balances related to profit or loss and the related deferred tax movement 2022 $ million 0.9 (0.1) 0.8 2021 $ million 205.1 (34.9) 170.2 SP PowerAssets Limited Financial statements Year ended 31 March 2022 41 RDA debit balances At 1 April 2021 $ million Balances arising in the period $ million (Recovery) / reversal $ million At 31 March 2022 $ million Deferral of revenue based on service rendered 256.9 106.4 (49.3) 314.0 Under recovery of volume variance (34.6) (78.6) 22.4 (90.8) 222.3 27.8 (26.9) 223.2 RDA related deferred tax liabilities RDA related deferred tax liabilities (37.8) (4.7) 4.6 (37.9) RDA debit balances Deferral of revenue based on service rendered Under recovery of volume variance RDA related deferred tax liabilities RDA related deferred tax liabilities At 1 April 2020 $ million Balances arising in the period $ million (Recovery) / reversal $ million At 31 March 2021 $ million (38.6) 266.7 28.8 256.9 55.8 1.5 (91.9) (34.6) 17.2 268.2 (63.1) 222.3 (2.9) (45.6) 10.7 (37.8) The recovery / reversal period of RDA debit and credit balances are directed by EMA. The Company is currently the sole electricity transmission and distribution company in Singapore. The EMA may not terminate the Company’s Transmission Licence except by giving 25 years’ notice, or otherwise revoking the Transmission Licence in accordance with the Electricity Act (including where the EMA is satisfied that the Company has gone into compulsory liquidation or voluntary liquidation other than for the purpose of amalgamation or reconstruction, or the public interest or security of Singapore requires). The Company therefore considers the exposure on recovery of regulatory deferral debit balances to be minimal. SP PowerAssets Limited Financial statements Year ended 31 March 2022 42 12 Share capital 2022 No. of shares $ million 2021 No. of shares $ million Ordinary shares Issued and fully-paid, with no par value At 1 April and 31 March 2,512.4 2,512.4 The holder of ordinary shares is entitled to receive dividends as declared from time to time and is entitled to one vote per share at meetings of the Company. All shares rank equally with regard to the Company’s residual assets. 13 Hedging reserve The hedging reserve comprises the effective portion of the cumulative net changein the fair value of cash flow hedging instruments related to highly probable forecast transactions. Hedging reserves At beginning of year Effective portion of changes in fair value of cash flow hedges: - Interest rate risks - Foreign exchange risks Net change in fair value of cash flow hedges reclassified to profit or loss, net of tax: - Interest rate risks Net change in fair value of cash flow hedges, on recognition of the hedged items on balance sheet, net of tax: - Foreign exchange risks 2022 $ million 52.4 34.8 (3.1) (2.6) 0.1 2021 $ million 28.4 28.7 (4.5) 1.0 (1.2) At end of year 81.6 52.4 SP PowerAssets Limited Financial statements Year ended 31 March 2022 43 14 Debt obligations Principal amount Date of maturity 2022 $ million 2021 $ million Fixed rate notes SGD 100 million USD 500 million (1) JPY 15 billion (2) SGD 75 million USD 700 million [3] JPY 7 billion (4) USD 600 million (5) SGD 100 million SGD 250 million August 2022 September 2022 April 2024 May 2024 November 2025 October 2026 September 2027 May 2029 September 2032 100.7 677.1 162.7 77.3 937.7 78.2 807.8 103.7 249.3 103.5 671.7 182.4 81.0 987.7 87.3 846.2 111.1 249.2 3,194.5 3,320.1 (1) USD 500 million swapped to SGD 623.8 million (2) JPY 15 billion swapped to SGD 230.0 million (3) USD 700 million swapped to SGD 996.0 million (4) JPY 7 billion swapped to SGD 114.7 million (5) USD 600 million swapped to SGD 808.5 million The debt obligations are on bullet repayment terms. Interest rates on debt obligations denominated in Singapore dollars range from 3.14% to 5.07% (2021: 3.14% to 5.07%) per annum. Interest rates on foreign currency debt obligations range from 1.95% to 3.25% (2021: 1.95% to 3.25%) per annum. SP PowerAssets Limited Financial statements Year ended 31 March 2022 44 A reconciliation of liabilities arising from financing activities is as follows: 2021 Cash flows Non-cash changes 2022 $ million Repayment $ million Interest paid $ million Additions / (reduction) $ million Foreign exchange movement $ million Changes in fair value $ million Interest $ million Reclassification $ million $ million Debt obligations Current Non-current Interest payable − 3,320.1 11.1 − − − − − (55.6) − − − − (4.9) − − (120.7) − − − 54.0* 777.8 (777.8) − 777.8 2,416.7 9.5 Loans from a related company Current 2,471.8 (411.5) (0.9) 355.3 − − 75.3 − 2,490.0 Lease liabilities Current Non-current − − 5,803.0 − (3.3) (414.8) − (0.1) (56.6) − 7.1 362.4 − − (4.9) − − (120.7) − 0.1 129.4 3.4 (3.4) − 3.4 0.4 5,697.8 * Comprises interest on debt obligations and net change in fair value of cash flow hedges reclassified from equity as disclosed in Note 22. SP PowerAssets Limited Financial statements Year ended 31 March 2022 45 2020 Cash flows Non-cash changes 2021 $ million Repayment $ million Interest paid $ million Additions / (reduction) $ million Foreign exchange movement $ million Changes in fair value $ million Interest $ million $ million Debt obligations Current Non-current Interest payable 780.6 3,588.3 28.1 − − − − − (85.6) (780.0) − − − (162.6) − (0.6) (105.6) − − − 68.6* − 3,320.1 11.1 Loans from a related company Current 1,411.4 (129.9) (0.2) 1,124.7 − − 65.8 2,471.8 Lease liabilities Current 7.1 (7.0) (0.1) − − − − − 5,815.5 (136.9) (85.9) 344.7 (162.6) (106.2) 134.4 5,803.0 * Comprises interest on debt obligations and net change in fair value of cash flow hedges reclassified from equity as disclosed in Note 22. SP PowerAssets Limited Financial statements Year ended 31 March 2022 46 15 Deferred taxation Movements in deferred tax assets and liabilities during the year are as follows: At 31 March 2020 $ million Recognised in profit or loss (Note 23) $ million Recognised in other comprehensive income (Note 23) $ million At 31 March 2021 $ million Recognised in profit or loss (Note 23) $ million Recognised in other comprehensive income (Note 23) $ million At 31 March 2022 $ million Deferred tax liabilities Property, plant and equipment Intangible assets Set off of tax Net deferred tax liabilities Deferred tax assets Deferred income Derivative liabilities Unutilised capital allowances Others Set off of tax Net deferred tax assets (1,316.4) (159.6) – (1,476.0) 28.1 – (1,447.9) (2.4) 1.7 – (0.7) 0.3 – (0.4) (1,318.8) (157.9) – (1,476.7) 28.4 – (1,448.3) 22.5 90.2 6.0 (1,296.3) (1,386.5) (1,442.3) 28.3 (4.0) – 24.3 (1.5) – 22.8 (5.9) – (4.9) (10.8) – (6.0) (16.8) – 76.6 – 76.6 (76.6) – – 0.1 – – 0.1 (0.1) – – 22.5 72.6 (4.9) 90.2 (78.2) (6.0) 6.0 (22.5) (90.2) (6.0) – – – 16 Deferred income 2022 $ million 2021 $ million Customers’ contributions Government grant for depreciable assets Accumulated accretion 265.9 0.3 (132.4) 133.8 265.9 − (123.6) 142.3 Movements in accumulated accretion are as follows: At 1 April Accretion for the year At 31 March 123.6 8.8 132.4 114.9 8.7 123.6 17 Deferred construction cost compensation 2022 $ million 2021 $ million Deferred construction cost compensation 256.2 256.2 SP PowerAssets Limited Financial statements Year ended 31 March 2022 47 18 Trade and other payables 2022 $ million 2021 $ million Trade payables: - Third parties - Related companies - Immediate holding company Interest payable Commitment fees payable Deposits received Advance receipts Accrued operating expenditure Accrued capital expenditure Loans from a related company - Loan balances - Interest payable 80.9 32.0 1.8 9.5 − 54.4 175.4 95.6 181.7 2,422.7 67.3 3,121.3 43.4 21.1 13.0 11.1 0.2 24.4 144.8 91.2 267.3 2,408.5 63.3 3,088.3 Payables denominated in currencies other than the Company’s functional currency comprise $9.5 million (2021: $0.1 million) of payables and accruals denominated in United States dollar (“USD”), $0.7 million (2021: $0.3 million) in Chinese Yuan (“CNY”), $1.7 million (2021: $0.5 million) in Japanese yen (“JPY”), $0.3 million (2021: nil) in Euro (“EUR”) and nil (2021: $1.2 million) in Malaysian Ringgit (“MYR”). As at 31 March 2022, the loans from a related company are unsecured, repayable on demand and bear interest at rates ranging from 1.59% to 3.93% (2021: 0.83% to 3.93%) per annum. 19 Revenue Revenue comprises use of system charges and the service is transferred over time. Transaction price allocated to remaining performance obligations The Company has applied the practical expedient not to disclose information about its remaining performance obligations as the Company recognises revenue in the amount to which the Company has a right to invoice customers in amounts that correspond directly with the value to the customer of the Company’s performance completed to date. SP PowerAssets Limited Financial statements Year ended 31 March 2022 48 20 Other income 2022 $ million 2021 $ million Rental income Leasing income Disbursement recoverable jobs Sale of scrap Accretion of deferred income Grant income Others 3.2 5.3 21.9 26.4 8.8 0.6 7.1 73.3 3.6 6.0 27.5 10.1 8.7 13.9 11.6 81.4 21 Finance income 2022 $ million 2021 $ million Interest income receivable / received from banks 0.1 # # Less than $0.1 million 22 Finance costs 2022 $ million 2021 $ million Interest expense on loans from a related company Interest expense on debt obligations Net change in fair value of cash flow hedges reclassified from equity Amortisation of fair value adjustments on cash flow hedges reclassified from equity Loss / (gain) arising from financial assets / liabilities in a fair value hedge: - hedged items - hedging instruments Net change in fair value of financial assets / liabilities at fair value through profit or loss Amortisation of capitalised transaction costs Ineffective portion of changes in fair value of cash flow hedges Amortisation of fair value adjustments on fair value hedges Commitment fees Interest expense on lease liabilities 75.3 57.2 (3.2) − (122.6) 126.9 − 2.0 − − 65.8 69.1 (0.5) 0.1 (105.5) 98.9 1.7 2.3 1.6 (2.7) 0.1 1.5 0.1 # 135.8 132.3 # Less than $0.1 million SP PowerAssets Limited Financial statements Year ended 31 March 2022 49 23 Tax expense Tax recognised in profit or loss 2022 $ million 2021 $ million Current tax expense Current year Under / (over) provision in respect of prior years Deferred tax expense Origination and reversal of temporary differences Under provision in respect of prior years Total tax expense 50.6 0.3 50.9 49.3 0.5 49.8 100.7 − (16.6) (16.6) 68.7 16.6 85.3 68.7 Tax recognised in other comprehensive income Before tax $ million 2022 Tax (expense) / credit $ million Net of tax $ million Before tax $ million 2021 Tax (expense) / credit $ million Net of tax $ million Effective portion of changes in fair value of cash flow hedges Net change in fair value of: - Cash flow hedges reclassified to profit or loss - Cash flow hedges on recognition of the hedged items on balance sheet 38.2 (6.5) 31.7 29.1 (4.9) 24.2 (3.1) 0.5 (2.6) 1.2 (0.2) 1.0 0.1 # 0.1 (1.4) 0.2 (1.2) 35.2 (6.0) 29.2 28.9 (4.9) 24.0 # Less than $0.1 million Reconciliation of effective tax rate 2022 $ million 2021 $ million Profit before taxation 539.1 369.9 Tax calculated using Singapore tax rate of 17% (2021: 17%) Non-deductible expenses Non-taxable income Under / (over) provision in respect of prior years - current tax - deferred tax 91.6 8.9 (0.6) 0.3 0.5 100.7 62.9 7.5 (1.7) (16.6) 16.6 68.7 SP PowerAssets Limited Financial statements Year ended 31 March 2022 50 24 Profit for the year The following items have been included in arriving at profit for the year: 2022 $ million 2021 $ million Exchange gain, net Loss on disposal of property, plant and equipment and intangible assets 0.3 (4.0) 0.3 (0.6) 25 Related parties For the purpose of the financial statements, parties are considered to be related to the Company if the Company has the ability, directly or indirectly, to control the party or exercise significant influence over the party in making financial and operating decisions, or vice versa, or where the Company and the party are subject to common control or common significant influence. Related parties may be individuals or other entities. The immediate and ultimate holding companies are Singapore Power Limited and Temasek Holdings (Private) Limited (“Temasek”) respectively. These companies are incorporated in the Republic of Singapore. Temasek is an investment company headquartered in Singapore with a diversified investment portfolio. Accordingly, all the subsidiaries of Temasek are related corporations and are subject to common control. The Company engages in a wide variety of transactions with related corporations in the normal course of business on terms similar to those available to other customers. Such transactions include but are not limited to sales and purchases of power, provision of consultancy and engineering services, leasing of cables and ducts, agency services and financial and banking services. The related party transactions are carried out on terms negotiated between the parties which are intended to reflect competitive terms. All electricity supplied to companies in the Temasek group are related party transactions. The Temasek group has extensive interests in a large number of companies. As the Company’s rates for electricity transmission and distribution are based on tariffs approved by the EMA, the Company has concluded that it is not meaningful to present information relating to such revenue. Other than as disclosed elsewhere in the financial statements, transactions with related parties are as follows: Related companies - management fee expenses - maintenance expenses - agency fee expenses - support service expenses - service expenses, including leases - leasing income - service income - trustee fee income Immediate holding company - maintenance expenses - support service expenses 2022 $ million (232.7) (3.7) (27.6) (1.6) (4.3) 5.3 1.1 0.4 (17.1) (34.5) 2021 $ million (229.4) (3.1) (26.2) (1.6) (3.7) 6.0 1.7 0.4 (15.0) (31.8) SP PowerAssets Limited Financial statements Year ended 31 March 2022 51 26 Financial risk management The Company’s activities expose it to foreign currency, interest rate, credit and liquidity risks which arise in the normal course of business. Generally, the Company’s overall objective is to manage and minimise exposure to such risks. The Company adopts the risk management policies and guidelines established by its immediate holding company, Singapore Power Limited, and has established processes for monitoring compliances with such policies. The Company uses forward foreign currency exchange contracts, interest rate swaps and cross currency interest rate swaps to manage its exposure to foreign currency and interest rate risks respectively. The Company does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes. The material financial risks associated with the Company’s activities are each described below, together with details of the Company’s policies for managing the risks. Foreign currency risk The Company is exposed to foreign currency risks from borrowing activities, purchase, supply and installation contracts, and trade creditors which are denominated in a currency other than Singapore dollars. The objective of the Company’s risk management policies is to mitigate foreign exchange risk by utilising various hedging instruments. The Company therefore considers avoidable currency risk exposure to be minimal for the Company. The Company enters into cross-currency interest rate swaps to manage exposures arising from foreign currency borrowings including the United States Dollar (“USD”) and Japanese Yen (“JPY”). Under cross-currency interest rate swaps, the Company agrees to exchange specified foreign currency principal and interest amounts at an agreed future date at a pre-determined exchange rate. Such contracts enable the Company to mitigate the risk of adverse movements in foreign exchange rates. Except where a foreign currency borrowing is taken with the intention of providing a natural hedge by matching the underlying cash flows, all foreign currency borrowings are swapped back to Singapore dollars. For foreign currency swaps that do not meet the requirements of hedge accounting, changes in fair value are recorded in profit or loss. The Company uses forward foreign currency exchange contracts to substantially hedge foreign currency risk attributable to purchase transactions. The maturities of the forward foreign currency exchange contracts are intended to match the forecasted progress payments of the supply and installation contracts. Whenever necessary, the forward foreign exchange contracts are either rolled over at maturity or translated into foreign currency deposits, whichever is more cost efficient. As at 31 March 2022, the Company has outstanding forward foreign currency exchange contracts with notional amounts of approximately $225.2 million (2021: $274.2 million). The net fair value of forward foreign currency exchange contracts as at 31 March 2022 is $4.3 million net liabilities (2021: $3.1 million net liabilities) comprising assets of $0.9 million (2021: $1.6 million) and liabilities of $5.2 million (2021: $4.7 million). These amounts were recognised as derivative assets and liabilities respectively. SP PowerAssets Limited Financial statements Year ended 31 March 2022 52 Sensitivity analysis for foreign currency risk As at 31 March 2022 and 2021, if the functional currency of the Company had moved against each of the currencies as illustrated in the table below, with all other variables held constant, equity would have been affected as below: Judgements of reasonably possible movements – increase / (decrease) 2022 USD Increase of the SGD by 5 per cent against US Dollar Decrease of the SGD by 5 per cent against US Dollar EUR Increase of the SGD by 7 per cent against EUR Dollar Decrease of the SGD by 7 per cent against EUR Dollar JPY Increase of the SGD by 9 per cent against Japanese Yen Decrease of the SGD by 9 per cent against Japanese Yen 2021 USD Increase of the SGD by 5 per cent against US Dollar Decrease of the SGD by 5 per cent against US Dollar EUR Increase of the SGD by 7 per cent against EUR Dollar Decrease of the SGD by 7 per cent against EUR Dollar JPY Increase of the SGD by 10 per cent against Japanese Yen Decrease of the SGD by 10 per cent against Japanese Yen Equity (hedging reserve) $ million (6.7) 6.7 (1.9) 1.9 (2.7) 2.7 (6.5) 6.5 (2.8) 2.8 (4.5) 4.5 The judgements of reasonably possible movements were determined using statistical analysis of the 90th percentile of the best and worst expected outcomes having regard to actual historical exchange rate data over the previous five years. Management considers that past movements are a reasonable basis for estimating possible movements in foreign currency exchange rates. Interest rate risk The Company manages its interest rate exposure by maintaining a significant portion of its debt at fixed interest rates. This is done by the (i) issuance of fixed rate debt; (ii) use of interest rate swaps to convert floating rate debt to fixed rate debt; or (iii) use of cross-currency interest rate swaps to convert fixed or floating rate non-functional currency denominated debt to fixed rate functional currency denominated debt. The use of derivative financial instruments relates directly to the underlying existing and anticipated indebtedness. SP PowerAssets Limited Financial statements Year ended 31 March 2022 53 Managing interbank offered rates reform and associated risks A fundamental reform of major interest rate benchmarks is being undertaken globally, to replace interbank offered rates (IBORs) with alternative nearly risk-free rates (referred to as “IBOR reform”). The Company holds interest rate swaps and cross-currency interest rate swaps indexed to the Singapore Swap Offer Rate (“SOR”) for risk management purposes which are designated in hedging relationships. SOR will cease publication after 30 June 2023, and it will be replaced by t

Media Release Electricity Tariff Revision for the Period 1 January to 31 March 2025 Singapore, 30 December 2024 – For the period from 1 January to 31 March 2025, the electricity tariff (before GST) for households will decrease by 3.4% or 0.98 cent per kWh compared with the previous quarter due to lower energy costs. The average monthly electricity bill for families living in HDB four-room flats will decrease by $3.58 (before GST). Electricity tariffs (before GST), including tariffs for non-households, will decrease by an average of 3.5% or 0.99 cent per kWh compared with the previous quarter. SP Group reviews the electricity tariffs every quarter based on guidelines set by the electricity industry regulator, Energy Market Authority (EMA). The electricity tariffs may fluctuate quarter to quarter due to volatile global fuel prices. Please refer to Appendix 1 for the components of the electricity tariff, Appendix 2 for the electricity tariffs approved by EMA, and Appendix 3 for the average monthly electricity bill for households. Appendix 1 BREAKDOWN OF ELECTRICITY TARIFF The electricity tariff consists of the following four components: Energy costs (paid to the generation companies): This component is adjusted quarterly to reflect changes in the cost of fuel and power generation. The fuel cost is the cost of imported natural gas, which is tied to oil prices by commercial contracts. The cost of power generation covers mainly the costs of operating the power stations, such as the manpower and maintenance costs, as well as the capital cost of the stations. Network costs (paid to SP Group): This is to recover the cost of transporting electricity through the power grid. Market Support Services Fee (paid to SP Group): This is to recover the costs of billing and meter reading, data management, retail market systems as well as market development initiatives. Market Administration and Power System Operation Fee (paid to Energy Market Company and Power System Operator): This fee is reviewed annually to recover the costs of operating the electricity wholesale market and power system.   Q1 2025 TARIFF FOR HOUSEHOLDS (before 9% GST) Appendix 2 ELECTRICITY TARIFFS FROM 1 JANUARY 2025 Appendix 3 AVERAGE MONTHLY ELECTRICITY BILLS FOR HOUSEHOLDS TARIFF WEF 1 JANUARY 2025 (before GST)

[●insert name of contractor●] Date: [●] [●insert address of contractor●] Co. Registration No.: [●] Your Ref: [●] Our Ref: [●] Dear Sir REQUIREMENTS FOR EARTHWORKS AT [●insert location●] 1. We refer to your Notice for Commencement of Earthworks (“NCE”) at the above-mentioned location ("Worksite") dated [●] and note that you will commence earthworks (as defined in Section 2 of the Gas Act (Cap. 116A) (the “Act”)) ("Earthworks") from [●]to [●]. 2. Pursuant to Section 32(3)(a) of the Act, you are required to comply with the following requirements when carrying out the Earthworks: 2.1. Trial Holes 2.1.1. As the gas plan obtained from SP PowerGrid Limited (“SPPG”) (which shows the necessary information on the location of the gas plant (as defined in Section 2 of the Act) ("Gas Plant") and gas pipes (conveying gas in a gas pipeline network as defined in Section 2 of the Act) ("Gas Pipes")) ("SPPG Gas Plans") only indicate the approximate location of Gas Pipes, you shall dig an adequate number of appropriate trial holes by manual means to determine the exact location of medium pressure (“MP”) Gas Pipes and low pressure (“LP”) Gas Pipes prior to the carrying out of any Earthworks. 2.1.2. When working in the vicinity of a MP Gas Pipe or a LP Gas Pipe you shall only use powered mechanical equipment for the initial breaking of the surface layer of hardcore/premix. You shall not use powered mechanical equipment below the surface layer of hard-core/premix and shall only use manual excavation with hand tools. 2.1.3. You shall contact Distribution Pipelines Operations and Maintenance section, SPPG (“DPOM”) if you are unable to locate the MP Gas Pipe and/or the LP Gas Pipe by digging the trial holes. 2.1.4. You shall not dig any trial holes in the vicinity of gas transmission pipeline (as defined in Section 2 of the Act) (“GTP”) without the written consent from Transmission Pipelines Operations and Maintenance section, SPPG (“TPOM”). You shall comply with any additional requirements that may be imposed by SPPG. Page 1 of 9 2.1.5. After the trial holes have been dug, you shall ensure that photographs of the trial holes are taken showing the dimensions of trial holes and their location. You shall make these photographs available to SPPG upon request. 2.2. Marking of Gas Pipes, Engagement of Surveyor and Purchase of Surveyed Drawings 2.2.1. Prior to the carrying out of any Earthworks when working in the vicinity of a GTP, you are required to schedule a meeting with TPOM officers to present the details of the Earthworks to be carried out and to purchase the as-surveyed drawing from the Mapping & Earthworks Administration section, SPPG (“MEA”). 2.2.2. After purchasing the as-surveyed drawing, you shall engage a registered land surveyor to peg out the Gas Pipe positions for GTP and provide adequate and prominent markings to show the Gas Pipe positions. You shall ensure that all Gas Pipe markings are durable and prominent and are not disturbed, removed or tampered with. You shall also ensure that the Gas Pipe markings are reapplied from time to time to ensure that they remain conspicuous. 2.3. Risk Management (For MP & GTP) 2.3.1. You shall assess the impact of carrying out the intended Earthworks on any Gas Plant or Gas Pipe and prepare a report detailing such assessment. 2.3.2. If there are changes to the schedule for the carrying out of the Earthworks or changes in Earthworks work methods, you shall study the implications, review the earlier assessment that had been carried out and promptly notify SPPG in writing if there are any changes to the earlier assessment. 2.3.3. The report of such assessment shall be made available to SPPG on request. Such report shall also be made known to all personnel of all working levels in the team handling the project in which the Earthworks are or are to be carried out ("Project"), including sub-contractors and any third party who are involved in any way with any part of the intended Earthworks. 2.4. Worksite Management 2.4.1. You shall provide a full-time site supervisor to monitor the site operations for the entire duration of any Earthworks. You shall ensure that the site supervisor is familiar with these requirements. 2.4.2. You shall ensure that daily site briefings with site workers are conducted (in languages that are understood by all workers) to remind them about the location of the Gas Pipes and the measures to be taken to prevent damage to the Gas Pipes. You Page 2 of 9 shall keep records of such daily briefings (which shall include but are not limited to date and time, venue and person conducting the briefings, contents of briefings and the list of site workers who have attended such briefings). You shall also disallow any site worker who has not attended such briefings from being involved with any part of the intended Earthworks. New staff must be briefed before they start work. 2.4.3. You shall inform Earthworks Surveillance & Patrolling section, SPPG (“ESP”) officers of the identity of the site management / Registered Excavator Operator (“REO”), the proposed methods of carrying out of the Earthworks and/or location of the proposed Earthworks. You shall also inform the ESP officers if there are any changes to the above. 2.4.4. You shall ensure that information on the presence of Gas Pipes in the vicinity of the Worksite and all mitigating measures that can be taken to prevent damage to such Gas Pipes, have been communicated and adhered to by all personnel of all working levels in the Project team, including sub-contractors and any third party who are in any way involved with any part of the intended Earthworks. 2.4.5. SPPG may, from time to time and at its sole discretion, deploy its officers to the Worksite to inspect and monitor the status of your works. Notwithstanding the deployment of SPPG’s officers at the worksite, you shall continue to be responsible for discharging your obligations under this Letter of Requirements (“LRe”) and for the performance of your works. SPPG shall not assume any liability for any noncompliance by you of any such obligation or non-performance of your works. 2.5. Seek Consultation with SPPG: Gas Operations (DPOM and TPOM sections) 2.5.1. You shall contact and consult TPOM and/or DPOM section(s) when the proposed Earthworks are within 5 metres of any GTP and/or 3 metres of any MP Gas Pipes respectively. You shall only carry out any Earthworks within the vicinity of Gas Pipes after seeking advice and obtaining approval from SPPG. 2.5.2. You shall contact DPOM or our 24-hour Customer Service Centre if you find any live or abandoned Gas Pipes in the course of carrying out any Earthworks at the Worksite which have not been shown in the SPPG Gas Plan. 2.5.3. You shall also contact and consult with SPPG in the following circumstances: 2.5.3.1. If it is reasonable to expect that the Earthworks could cause ground vibrations or ground movements; and/or Page 3 of 9 2.5.3.2. If there is a need for Earthworks to be carried out below Gas Pipe slabs. 2.6. Protection of Gas Pipe and Gas Pipe Diversion 2.6.1. You shall take all steps to ascertain the presence of any Gas Pipe within the boundary and/or the vicinity of the Worksite prior to the carrying out of any Earthworks. You shall take all necessary measures and due care to prevent damage to the Gas Pipes. 2.6.2. You shall relocate your intended Earthworks away from any gas pipeline or submit an official request to SPPG to divert out of the Worksite any Gas Pipe that will be affected by the intended Earthworks and bear any and all costs incurred from such diversion. 2.6.3. If the proposed Earthworks involve overcrossing, undercrossing, exposing of, or diversion of Gas Pipes, you shall, prior to the carrying out of any Earthworks: 2.6.3.1. Contact and consult SPPG; 2.6.3.2. Provide SPPG with a detailed work method statement and proposed measures to protect the Gas Pipes; 2.6.3.3. Assess the risk of damage to the Gas Pipes and submit the report of such assessment to SPPG; and 2.6.3.4. Comply with any further and additional requirements that may be imposed by SPPG. 2.6.4. You shall not construct any structure (temporary, permanent, or otherwise) over any Gas Pipe. 2.6.5. You shall not place any heavy equipment or stock pile above any Gas Pipe. 2.6.6. You shall not allow any heavy machinery or vehicular movement above any Gas Pipe. 2.6.7. You shall backfill with quarry dust during reinstatement and do not dump any debris / concrete trash / sharp objects or place any heavy object on top of the Gas Pipe corridor. 2.6.8. You shall ensure proper and adequate shoring and shuttering to prevent soil movement and/or soil subsidence which may affect any Gas Pipe. 2.6.9. You shall carefully select positions for the sinking and driving of earth rod, sheet piling, bore piling, diaphragm walling, installing of reinforced concrete/steel piles by Page 4 of 9 percussion or jack-in method, bore piling casing, installing of ground anchors, pressure grouting, installing of tubes, installing of poles, hand augering, pipe jacking, shoring, soil investigating, bore drilling and horizontal directional drilling, in order to avoid damage to any Gas Pipes. You shall do this by, amongst other things: 2.6.9.1. Referring to the SPPG Gas Plan and digging appropriate trial holes by manual means, to confirm the presence or absence of any Gas Pipe prior to the carrying out of any Earthworks. For trial hole to be dug in the vicinity of GTP, you shall obtain written consent from TPOM. 2.6.9.2. For pipe jacking and horizontal directional drilling, you shall consider additional factors such as loading from the construction plants, ground conditions, bore diameter, possible deviation of the drilling. You shall ensure that there is a minimum clearance of 2m between the path of drilling/boring device and any Gas Pipe that is in the vicinity of the Earthworks. 2.6.10. You shall provide adequate protection to unexposed or reinstated Gas Pipes that are within the work area when carrying out of any Earthworks. 2.6.11. You shall ensure that all surface boxes are accessible at all times and are not covered by tarmac, earth, landscape, equipment, stock pile or any other material. 2.6.12. You shall ensure that no static loads (i.e. loads that do not change in magnitude or position with time) are placed above the surface boxes. 2.6.13. You shall exercise due care and diligence when removing any rock, boulder, wood, metal rod, sharp object or other obstacles which are in the vicinity of Gas Pipes. 2.6.14. You shall ensure that gas free tests are carried out by a competent person along the Gas Pipe route at regular intervals throughout the duration of the Project. You shall not carry out any processes that may be a source of ignition in the vicinity of any Gas Pipes. You shall also take all other necessary mitigating measures to prevent ignition of escaped gas, if any. 2.6.15. You shall ensure that a clearance of at least 5 metres is maintained between the external wall of LP Gas Pipe and any piles and/or diaphragm wall and a clearance of at least 0.3 metres is maintained between the external wall of LP Gas Pipe and other services when working in the vicinity of LP Gas Pipe. You shall also ensure that no services are laid directly on top and parallel to any existing Gas Pipes. 2.6.16. You shall not expose, suspend and/or otherwise interfere with any Gas Pipes, without the written consent of SPPG. Page 5 of 9 2.6.17. You shall stop all Earthworks and call SPPG for advice whenever in doubt. 2.6.18. You shall stop work immediately and report to the 24-hour Customer Service Centre upon any damage or suspected damage to any Gas Pipe (including surface damage without gas escaping) or the discovery of any gas leak. You and/or your workers shall not attempt to repair or modify damaged Gas Pipes. 2.6.19. Damaging a Gas Plant or a Gas Pipe(s) may cause a delay in the completion of the Project as SPPG will need time to investigate and carry out repair work as necessary. Any repair costs may have to be borne by you. 2.6.20. SPPG shall be entitled to ask you to stop work with immediate effect in the event of non-compliance to this LRe. SPPG shall not be liable to you in any way for any losses, claims or damages arising from or in connection with such stop work requests. 2.6.21. You shall comply with any requirements as reasonably prescribed by SPPG in SPPG’s review and endorsement of the relevant method statement and any other documents submitted by you in relation thereto for the Earthworks. 2.7. NCE Submission by Sub-Contractor(s), NCE Extension and Site Meeting 2.7.1. You and/or your representatives shall attend meetings with SPPG officers as and when required. 2.7.2. When working in the vicinity of a GTP or MP Gas Pipe, you shall carry out a site visit jointly with SPPG officers before carrying out any Earthworks specified under the submitted NCE. 2.7.3. In the event that you engage a sub-contractor to carry out any Earthworks within the vicinity of any Gas Pipes, you shall ensure that such sub-contractor submits the appropriate NCE prior to the carrying out of any Earthworks in the vicinity of any Gas Pipes. 2.7.4. If, at any stage of your Project, there is a likelihood that the Earthworks may continue beyond the anticipated completion date and/or beyond the work boundary as declared in the NCE which you have submitted to SPPG, you shall notify SPPG in writing of the new date of completion and/or the new work boundary (as applicable) by submitting a new NCE. 2.7.5. You shall obtain a new SPPG Gas Plan from SPPG prior to submitting the new NCE. Prior to carrying out any Earthworks, you shall consult SPPG to ascertain if there are Page 6 of 9 changes to the gas plans that you possess. In the event there are changes to the gas plans, you shall purchase fresh gas plans from SPPG. 2.8. Powered Mechanical Excavation 2.8.1. You shall engage only a REO to operate a powered mechanical excavator. 2.8.2. You shall ensure that powered mechanical excavation is only used, under the close standing supervision of a full time site supervisor, for the surface layer of hardcore/premix when working near or above any Gas Pipe. 2.8.3. You shall not use a powered mechanical excavator, whether for mechanical excavation or otherwise (irrespective of soil condition), below the surface layer of hard-core/premix when working near or above any Gas Pipe. You shall only use manual excavation with hand tools below the surface layer of hard-core/premix. 2.8.4. You shall not excavate deeper than the PVC warning tape or the top of any Gas Pipe if there is no PVC warning tape. You shall immediately cease all further Earthworks and consult the DPOM for advice on working with the Gas Pipes when exposed Gas Pipes are encountered in the course of carrying out any Earthworks. 2.9. Pressure Grouting Works 2.9.1. You shall ascertain the alignment of Gas Pipes within the grouting influence zone prior to the carrying out of any Earthworks. 2.9.2. You shall use the necessary ground instrumentations to monitor the effect of the grouting works and ensure that adequate protective measures are provided to protect any Gas Pipes within the grouting influence zone. 2.10. Permit-to-Work (“PTW”) and Records 2.10.1. You shall implement a PTW system to monitor and ensure that all Earthworks are properly tracked and controlled if such Earthworks are to be carried out in the vicinity of GTP and MP Gas Pipes. Under the PTW system, such Earthworks shall be approved by the manager of the Project or his authorised deputy. You shall periodically audit the PTW system for its effectiveness. 2.10.2. You shall display prominently and make available the most up to date NCE, SPPG Gas Plans and these requirements at the Worksite where the proposed Earthworks are to be carried out. Page 7 of 9 2.10.3. You shall keep progressive records (Photographs / Movement Chart) of the Earthworks that have been carried out including, but not limited to, work schedules and location of trial holes. 3. Notes: 3.1. These requirements are applicable to all persons who carry out any Earthworks and strict compliance is required, unless otherwise permitted in writing by SPPG. Please consult the relevant SPPG section, if necessary. 3.2. The approximate locations of the Gas Pipes are shown in the SPPG Gas Plan. The respective operating pressure regime of the Gas Pipes is indicated against the Gas Pipelines as shown in the SPPG Gas Plan. The default pressure regime (when there is no indication of pressure regime) is low pressure. Other LP Gas Pipes are indicated as “LPA” and “LPB” in the SPPG Gas Plan. 3.3. In the low pressure distribution network, there are valves, syphons and standpipes which are indicated as “V”, “SY” and “SP” respectively. 3.4. You shall take note of the presence of standpipes and/or valve stems that are encased in a PVC pipe and accessible from surface boxes installed at ground level and not damage such fittings or cover. 3.5. The requirements stated above are not exhaustive. Additional requirements may be issued from time to time by SPPG. These additional requirements, together with the requirements in this letter, shall form the full list of requirements that must be complied with at all times. You are advised to carry out all necessary assessments and take all necessary precautions to prevent damage to any existing Gas Plant and/or Gas Pipe. 3.6. Pursuant to Section 32(3)(a) of the Act, it shall be the duty of the person who commences or carries out, or causes or permits the commencement or carrying out of, any Earthworks to comply with the reasonable requirements of SPPG for the prevention of damage to a Gas Plant or Gas Pipe. Pursuant to Section 32(7) of the Act, any person who contravenes Section 32(3)(a) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000 or to imprisonment for a term not exceeding 5 years or both. Further, Section 32A(1) of the Act provides that any person who, removes, destroys or damages any Gas Plant or Gas Pipe which is part of a Gas Pipeline Network owned by, or under the management or control of, SPPG, shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $1 million or to imprisonment for a term not exceeding 5 years or to both. 3.7. Damaging a Gas Plant or a Gas Pipe may also cause fatalities or severe injuries to personnel as well as damage to property. Page 8 of 9 3.8. Should you require any further clarification, please contact Follow up officer at [●] and/or the respective sections of SPPG as listed in the table below: SPPG Section Telephone Email TPOM 6916 6136/ 6916 6124 gasenquiry@spgroup.com.sg DPOM 6916 5947/ 6916 5908 gasenquiry@spgroup.com.sg ESP 6916 5119 espsection@spgroup.com.sg MEA 6916 5021/ 6916 5022 mea@spgroup.com.sg 24-hour Customer Service Centre 1800 752 1800 - Yours faithfully, [●] for HEAD OF SECTION EARTHWORKS SURVEILLANCE & PATROLLING SECTION As agent for and on behalf of POWERGAS LTD. Page 9 of 9

Terms & Conditions of Use IMPORTANT - PLEASE READ THESE TERMS & CONDITIONS OF USE CAREFULLY. BY ACCESSING THIS PORTAL (“PORTAL”) AND/OR USING ANY OF THE SERVICES (INCLUDING DOWNLOADING, INSTALLING OR USING ANY ASSOCIATED SOFTWARE) BEING OFFERED THROUGH THE PORTAL, THE USER AGREES TO BE BOUND BY THE TERMS & CONDITIONS OF USE STATED BELOW. IF THE USER DOES NOT AGREE TO THESE TERMS & CONDITIONS OF USE, THE USER MUST IMMEDIATELY DISCONTINUE THE ACCESS AND USE OF THIS PORTAL AND/OR THE ACCESS AND USE OF ANY OF THE SERVICES. The Services (defined below) on this Portal is provided by SP PowerGrid Ltd (hereinafter called "SPPG"). These Services may only be accessed and/or used by the User (defined below) through the use of the Security Credentials. 1. ACKNOWLEDGEMENT AND ACCEPTANCE OF TERMS AND CONDITIONS These Terms & Conditions of Use shall govern the Services and the access and/or use of this App and the Services by the User. By completing the registration or subscription process and clicking the 'Finish' button (if applicable) or clicking the "I Accept" button, the User agrees to be bound by all of the terms and conditions set out herein. In addition to these Terms & Conditions of Use, the access and/or use of the App and/or Services is also subject to any prevailing or existing terms of conditions that the User has entered into or will enter into with SPPG. If there is any conflict or inconsistency between these Terms & Conditions of Use and any prevailing or existing terms of conditions, these Terms & Conditions of Use will prevail. 2. DEFINITION OF TERMS The following terms and expressions shall have the meaning stated hereunder except where the context otherwise requires: I. “Affiliate” Singapore Power Limited, and any persons or entities that are Controlled directly or indirectly by Singapore Power Limited. II. “Content” all information, text, design, sound recordings, music, Software, photographs, videos, images, graphics, data, messages, links and any other content and materials made available through or provided as part of or for purposes of or in connection with the Portal and/or Services. III. “Control” the beneficial ownership of more than 50% of the issued share capital of a company or the legal power to direct or cause the direction of the general management of the company, and “Controls”, “Controlled” and the expression “change of Control” shall be construed accordingly; IV. “E-Account” a registered account with SPPG for the purposes of using and/or accessing the Portal. V. “Intellectual Property Rights” includes but is not limited to any rights, title and interest in patents (including utility models), designs (whether or not capable of registration), semi-conductor topography rights, rights in layouts of integrated circuits, copyrights, Moral Rights, database rights, trademarks, service marks, trade and business names, domain names, and any rights of goodwill associated therewith, rights to sue for passing off, rights in the nature of unfair competition rights, trade secrets, confidentiality and other proprietary rights including rights to knowhow, rights to technical and other information, rights to apply for registration of any of the foregoing, rights to take action for past, present and future infringements in respect of any of the foregoing, and all rights in the SP Group 2 Kallang Sector, Singapore 349277, Tel: +65 6916 8888, www.spgroup.com.sg nature of any of the foregoing anywhere in the world whether registered or unregistered, whether subsisting now or in the future. VI. “Malware” any and all forms of malicious, surreptitious, destructive or corrupting code, agent, macro or any other program which is designed to permit unauthorized access, to disable, erase, corrupt or otherwise harm or damage software, hardware or data; or any device, method, or token whose apparent or intended purpose is to allow circumvention of the normal security of software or the system containing the code. VII. “Moral Rights” the rights as described in Article 6bis of the Berne Convention for Protection of Literary and Artistic Works 1886 (as amended and revised from time to time), being "droit moral" or other analogous rights arising under any law, that exist or that may come to exist, anywhere in the world, in relation to any works or other subject matter. VIII. “Personal Data” data, whether true or not, about an individual who can be identified (a) from that data; or (b) from that data and other information to which SPPG has or is likely to have access. IX. “Security Credentials” the E-Account, business registration number, user identification code (“User ID”), and/or passwords and any other devices or information that may be issued by or which may be accepted by SPPG from time to time for use by the User for the purposes of authenticating the User’s access and/or use of the Portal, the Services and/or the Content. X. “Services” any features, functionalities, services or products which SPPG provides to the User through the Portal from time to time including any value-added features (whether online or otherwise). XI. “Software” any software programmes including any upgrades. XII. “User” the user using and accessing the Portal and Services for personal purposes. XIII. “User Content” information, content or materials which the User uploads, submits, stores, sends, receives or makes available to or through the Portal and/or Services and any Intellectual Property Rights subsisting therein, and all other information, content or materials made available for purposes of or in connection with the Portal and/or Services and any Intellectual Property Rights subsisting therein. 3. LICENCE TO USE PORTAL AND CONTENT The User will need to register for an E-Account with SPPG in order to utilise the Portal and the Services, access any information related to the User’s instructions given via the Portal, access the User’s E-Account information and any other records associated with the User’s use of the Portal. The User may only register for one E-Account with SPPG unless SPPG explicitly approves the opening of additional accounts. SPPG may refuse the creation of duplicate accounts for the same User. Where duplicate accounts are detected, SPPG may close or merge these duplicate accounts without notification to the User. The Portal and Content are proprietary to SPPG, its Affiliates and/or its licensors (as may be applicable) and must not be used other than strictly in accordance with these Terms & Conditions of Use. If the User agrees to these Terms & Conditions of Use, the User shall be granted a personal, limited, non-exclusive, nontransferable, non-sublicensable right to use the Portal and the Content. SPPG reserves all rights not granted hereunder. SP Group 2 Kallang Sector, Singapore 349277, Tel: +65 6916 8888, www.spgroup.com.sg The User is permitted to, through SPPG-designated means, print or download extracts of the Content for the User’s personal and non-commercial use only. Any copies of such Content saved to disk or to any other storage medium may only be used for subsequent viewing purpose or to print extracts for personal and noncommercial use. Any other use is strictly prohibited. Without prejudice to the foregoing, the User shall not without the prior written consent of SPPG: (i) remove, delete, augment, add to, copy, store, include in any public or private electronic retrieval system or service, create derivative works from or otherwise exploit in any way the Portal (or any part thereof), the Services (or any part thereof) or the Content (or any part thereof) in any form and by any means; (ii) reproduce, transmit, publish, perform, broadcast, store, adapt, distribute, display, rent, lease, license, export, participate in the transfer or sale of, or hyperlink the Portal (or any part thereof), the Services (or any part thereof)or the Content (or any part thereof) in any form and by any means; (iii) adapt, alter, modify, decompile, disassemble and/or reverse engineer the Portal (or any part thereof), the Services (or any part thereof) or the Content (or any part thereof); (iv) create a database whether in electronic or structured manual form by regularly or systematically downloading or storing all or any part of the Portal and/or Content for any purposes. Any breach of the requirements or restrictions in Paragraphs 5 and 6 shall result in immediate and automatic termination of all rights and licence granted by SPPG under these Terms & Conditions of Use. The User shall (i) abide by all applicable laws and regulations in the User’s access and/or use of the Portal, the Services and/or the Content; (ii) not impersonate any person or entity or to falsely state or otherwise misrepresent his/her affiliation with any person or entity; (iii) not send, distribute or upload, in any way, any Malware; and (iv) not post, promote or transmit through the Portal and/or the Services any unlawful, harassing, libellous, harmful, vulgar, obscene or otherwise objectionable material of any kind or nature. SPPG does not endorse nor assume any responsibility for the contents of the User’s transmissions or communications through the Portal and/or Services and the User is solely responsible therefor. The User warrants and represents that the User has the right and authority to submit the contents of the User’s transmissions or communications through the Portal and/or Services. SPPG shall be entitled to, without giving any prior notice, remove any information or materials submitted by the User or posted by the User through the Portal and/or Services. 4. SECURITY CREDENTIALS The User shall be responsible for maintaining the confidentiality of the Security Credentials, and agrees to accept responsibility for all activities that are referable to the Security Credentials. SPPG reserves the right to terminate any or all existing accounts the User has with SPPG in their sole discretion. All use and/or access (including any purported use and/or purported access) of the Portal, Services and/or Content referable to any of the Security Credentials (whether such access or use is authorised by the User or not) shall be deemed to be the use and/or access of the Portal, Services and/or Content by the User. SPPG shall be entitled to consider any person who gains access to the Portal, Services and/or the Content using the Security Credentials to be the User or an individual authorised by the User without further inquiry or investigation. Where applicable, references to the User’s use and/or access of the Portal, Services and/or the Content shall be deemed to include the use and/or access of the Portal, Services and/or the Content by an individual authorised by the User. The User is able to transmit instructions through the Portal and/or Services. All instructions referable to any of the Security Credentials shall be deemed to be instructions validly transmitted and issued by the User. Such instructions shall be deemed to be irrevocable and SPPG is entitled to act upon such instructions without requiring further consent. SPPG shall not be obliged to investigate or verify the authenticity, the authority or the identity of any persons effecting any instructions or the authenticity, accuracy and completeness of such instructions. Notwithstanding this, SPPG shall be entitled, at its own discretion, to decline to act or refrain from acting promptly upon any instructions and to investigate or verify the authenticity, the authority or the identity of such persons effecting the instructions or the authenticity, accuracy and completeness of the instruction. SPPG may, in its discretion, refuse to comply with any instruction if the instruction is ambiguous or conflicting, incomplete or inaccurate. SP Group 2 Kallang Sector, Singapore 349277, Tel: +65 6916 8888, www.spgroup.com.sg The User shall be responsible for all actions referable to any of the Security Credentials, whether or not authorised by the User. Therefore, SPPG does not recommend that the User discloses any of the Security Credentials to any third parties. The User shall be responsible for any access and/or use, and any purported access and/or use, of the Portal, Services, Content and/or E-Account, whether or not authorised by the User. If the User loses control of the Security Credentials, the User may lose substantial control over his/her personally identifiable information and may be subject to legally binding actions taken on the User’s behalf. The User shall immediately notify SPPG if it comes to their knowledge that any of the Security Credentials has been compromised (including any loss, theft, breach of security, or unauthorised disclosure or use) and/or there has been unauthorised use of their E-Account, the Portal and/or the Services. SPPG and its Affiliates shall not be liable or responsible for any damage, expense or loss of any kind suffered directly or indirectly by the User as a result of any loss, disclosure, theft and/or unauthorised use of the User’s Security Credentials. 5. ACCESS TO AND USE OF USER CONTENT Subject to Clause 15 of these Terms & Conditions of Use, the User hereby grants to SPPG, a non-exclusive, world-wide, royalty-free, perpetual and irrevocable, right and licence (“Licence”) to use, host, store, reproduce, perform, display, distribute, adapt, modify, re-format and create derivative works of any and all of the User Content, and the right to sublicense or transfer the foregoing rights to its Affiliates and such third parties designated by SPPG. The User represents and warrants to SPPG that it either owns the User Content and/or has valid licenses or other rights in relation to the User Content and has full authority to grant the Licence to SPPG. The User hereby consents to SPPG accessing, collecting and using, and authorises SPPG, to access, collect and use, subject to Clause 15, any and all information relating to the User with any relevant organisation, and all User Content. To the extent applicable or required, the User hereby warrants and confirms that it has done and will do all things necessary to authorise the access to, collection of and/or use by SPPG of (a) any and all information relating to the User with such relevant organisation and (b) all User Content. 6. INTELLECTUAL PROPERTY All Intellectual Property Rights in the Content, App and/or Services shall be absolutely owned by SPPG for the full duration of all such rights and all throughout the world. No licence or right is granted and the User’s access to and/or use of this Portal, the Content and/or the Services should not be construed as granting, by implication, estoppel or otherwise, any license or right to use any Intellectual Property Rights in the Portal, Content and/or Services without the prior written consent of SPPG or its Licensors. Any and all Intellectual Property Rights in and to the User Content shall vest in SPPG. The User hereby assigns all Intellectual Property Rights in and to the User Content to SPPG. The User warrants and represents that any transmissions or communications made by the User via the Portal and the User Content do not infringe the Intellectual Property Rights or any other rights of any third party. 7. ELECTRONIC COMMUNICATIONS When the User accesses and/or uses the Portal or any of the Services or sends e-mails to SPPG’s email address made available through the Portal, the User is communicating with SPPG electronically. The User consents to receive communications from SPPG electronically. SPPG will communicate with the User by e- mail sent to the last updated address made known to SPPG or by posting notices on the Portal. Where the communication is given by SPPG to the User electronically, it will be deemed to have been received upon delivery (and a delivery report received by SPPG will be conclusive evidence of delivery even if the communication is not opened by the User); and where the communication is given to SPPG electronically, it will be deemed to have been received upon being opened by SPPG. The User agrees that all agreements, notices, disclosures and other communications that SPPG provides to the User electronically will satisfy any and all legal requirements that such communications be in writing. SP Group 2 Kallang Sector, Singapore 349277, Tel: +65 6916 8888, www.spgroup.com.sg 8. ELECTRONIC FORM The User agrees that these Terms & Conditions of Use in electronic form constitute a written document and therefore the User undertakes not to dispute or challenge the validity or enforceability of these Terms & Conditions of Use on the grounds that it is not a written document and the User hereby waives any such right that the User may have at law. 9. PAYMENTS The User acknowledges and agrees to carry out a transaction in accordance with these Terms & Conditions of Use and the instructions set out in the Portal, which may be amended from time to time. The User further acknowledges and agrees that in the event the User fails to comply with these Terms & Conditions of Use and/or instructions set out in the Portal and such failure results in a transaction not being executed, SPPG shall not be liable in any way for any loss and liability that the User may incur as a result the non-execution of the transaction. If SPPG is unable to execute the User’s transaction, SPPG will notify the User of the same and, if possible, inform the User of the reasons for such refusal and explain how to remedy the situation. SPPG may, in its sole discretion, delay the execution of the User’s request to carry out a transaction if there is reason to believe that the User’s request to execute a transaction may involve fraud or misconduct, and/or violates any of these Terms & Conditions of Use and/or applicable law. Where the User makes payment through the Portal by debit/credit card, the User acknowledges, agrees and consents that his/her Personal Data may be disclosed to third parties (located within and outside of Singapore) processing such debit/credit card transactions, including debit/credit card companies, banks and payment gateways, and, subject to their respective personal data privacy policies and applicable laws, may be used, processed and stored by such third parties to facilitate payments that the User now or subsequently make. Payment to SPPG of fees, if any, for the provision of any of the Services shall be made in the manner prescribed by SPPG. Where the User makes payment through the Portal for third party services, the User acknowledges and agrees that the User shall be deemed to be the party making such payment directly to the relevant third party service provider. The User may not claim against SPPG or any of its agents, for any failure, disruption or error in connection with the User’s chosen payment method. SPPG reserves the right at any time to modify or discontinue, temporarily or permanently, any payment method without notice to the User or giving any reason. Subject to Paragraph 9 of this clause herein, the User acknowledges and agrees that SPPG’s records and any records of the communications, transactions, instructions or operations made or performed, processed or effected through the Portal and/or Services by the User or any person purporting to be the User (whether or not authorised by the User), or any record of communications, transactions, instructions or operations relating to the operation of the Portal and/or Services and any record of any communications, transactions, instructions or operations maintained by SPPG or by any relevant person authorised by SPPG relating to or connected with the Portal and/or Services shall be binding on the User for all purposes whatsoever and shall be conclusive evidence of such communications, transactions, instructions or operations. The User has a duty to examine and verify the correctness of any and all confirmations, statements, records and any other documents issued by SPPG in relation to the E-Account, Portal and Services. The User further undertakes to promptly inform SPPG in writing of any alleged error, irregularity, discrepancies or omissions in such documents. If no such notice is received by SPPG within 14 days from the date stated in such documents, the User shall be (a) deemed to have conclusively accepted all content contained in such documents; and (b) liable for any and all losses arising from or in connection with any alleged error, irregularity, discrepancies or omissions in such documents. SP Group 2 Kallang Sector, Singapore 349277, Tel: +65 6916 8888, www.spgroup.com.sg 10. OTHER BUSINESSES The Portal may provide links to websites or services of SPPG, SPPG’s Affiliates and certain other businesses and/or third parties. SPPG and its Affiliates are not responsible for examining or evaluating, and do not warrant the offerings of, any of these businesses or individuals or the content of their websites or services. SPPG does not assume any responsibility or liability for the actions, product, and content of all these and any other third parties. The User should carefully review their privacy statements and other conditions of use. 11. FURTHER AGREEMENTS In addition to these Terms & Conditions of Use, the access and/or use of specific aspects of the Portal, Services and/or the Content may be subject to additional terms and conditions that SPPG may prescribe. Access and/or use of additional services of SPPG’s Affiliates or other third parties may be provided through the Portal and/or Services under separate agreements with SPPG’s Affiliates or such other third parties where necessary. Such agreements shall strictly be between the User and such SPPG’s Affiliates or other third parties. Under no circumstances shall it be construed that, in the case of the User’s access to and use of the additional services of SPPG’s Affiliates or any third party, SPPG is a party to any transaction, if any, between the User and such Affiliate or third party, or that SPPG endorses, sponsors, certifies or is involved in the provision of such additional services through the Portal and/or Services. 12. DISCLAIMERS Certain links on the Portal, Content and/or Services may lead to websites or social media channels or apps not operated by or under the control of SPPG or its Affiliates. The User shall access such websites, social media channels or apps at their own risk and SPPG accepts no responsibility or liability for any damage caused or alleged to be caused by or in connection with the use of the material or functions contained on those websites, social media channels or app. Some parts of the Portal, Content and/or Services may contain advertising and/or other materials submitted by third parties. SPPG shall not be responsible for any error, omission or inaccuracy in any such advertising or such other materials. Any links to other websites, social media channels, apps or any advertising and/or materials submitted by third parties shall not be considered to be referrals or endorsements of such websites, social media channels, apps, advertising and/or materials and the links are provided purely for convenience or for informational purposes. The User agrees that the access to and/or use of such linked websites, social media channels, apps or advertising and/or materials submitted by third parties is entirely at the User’s own risk. The Portal, Services and the Content are provided on an "as is" and "as available" basis. To the fullest extent permitted by law, SPPG makes no and expressly disclaims all representations or warranties of any kind, express or implied or statutory, including without limitation to warranties of accuracy, adequacy, completeness, timeliness, merchantability, currency, reliability, satisfactory quality, fitness for a general or particular purpose, title, non-infringement of third party rights and authenticity of any material or claim, continued available or compatibility with any other equipment or other software, and to any implied warranty arising from the course of dealing or usage or trade. The Content is only for general information or use. They do not constitute advice and should not be relied upon in making (or refraining from making) any decision. No oral advice or written information given through the Portal and/or the Services or by SPPG or its officers, directors, employees, agents, third party service providers or third party content providers shall create a warranty nor shall the User rely on any such information or advice. SPPG does not warrant that the Portal, Content and/or the Services provided will meet all or any of the User's requirements. In particular, SPPG does not warrant that the Portal, Content and/or the Services will always be available, accessible, complete, uninterrupted, timely, secure or error free. Further, SPPG makes no warranty that the Portal, Content and/or Services are free from Malware or defects which may affect the Portal, Content and/or Services generally. SPPG shall in no event be liable to the User if the User does not have a device which is compatible with the software of the Portal. SPPG reserves the right not to permit the User to access and/or use the Portal, Services and/or Content should the Portal be incompatible with the User’s device. SP Group 2 Kallang Sector, Singapore 349277, Tel: +65 6916 8888, www.spgroup.com.sg To the fullest extent permitted by law, SPPG shall not, in any event, be liable to the User or any other party for any damages, losses, expenses, penalties or costs whatsoever (including without limitation, any direct, indirect, special, incidental or consequential damages, loss of profits or loss opportunity) arising in connection with the User's use of the Portal, Content and/or Services, or the User’s reliance on any Content and/or Services, regardless of the form of action and even if SPPG had been advised as to the possibility of such damages. Without prejudice to Paragraph 6 of this clause, should any liability be attributed to SPPG, SPPG’s Affiliates, and SPPG’s respective directors, officers, employees, agents, contractors and licensors, the total liability shall not exceed in aggregate the sum of S$200,000. 13. INDEMNIFICATION The User hereby agree to defend, indemnify and hold harmless SPPG and its Affiliates, officers, directors, employees, agents, third party service providers, third party content providers and licensors (“SPPG Indemnitees”) from and against all damages, claims, expenses, penalties and costs (including indemnification of legal costs on a full indemnity basis arising out of the User's use of the Portal, Content and/or the Services) suffered or incurred by SPPG Indemnitees in connection with or arising from (1) the User's access and/or use, or the User’s purported access and/or use of the Portal, Content and/or Services;(2) the User's breach or purported breach of any of these Terms & Conditions of Use; (3) the enforcement of SPPG’s rights under these Terms & Conditions of Use or in acting upon any instructions which the User may give in relation to the Portal, Content and/or Services; or (4) any negligence, fraud and/or misconduct on the User’s part. 14. TERMINATION The User may terminate these Terms & Conditions of Use by giving 30 days’ written notice to SPPG. SPPG shall be entitled to terminate the provision of the Services to the User immediately upon a breach by the User of any of the terms of these Terms & Conditions of Use with or without prior written notice. In the absence of such breach, SPPG may terminate the provision of the Portal, Services and/or Content to the User at any time in writing. For the avoidance of doubt, the User may not evade any legal proceedings or investigations by cancelling the User’s E-Account with SPPG or if the E-Account is terminated by SPPG. The User will remain liable for all obligations related to the User’s E-Account even after the E-Account is cancelled or terminated. Failure to comply with these Terms & Conditions of Use constitutes a material breach and may result in SPPG taking all or any of the following actions: (i) immediate, temporary or permanent withdrawal of the User’s right to use the Portal, Content or Services; (ii) immediate, temporary or permanent removal of any material uploaded by the User to the Portal; (iii) issuance of a warning to the User; (iv) legal proceedings against the User for reimbursement of all costs on an indemnity basis (including, but not limited to, reasonable administrative and legal costs) resulting from the breach; (v) further legal action against the User; and/or (vi) disclosure of such information to law enforcement authorities as SPPG reasonably feel is necessary. SPPG will determine, in its reasonable discretion, whether there has been a breach of these Terms & Conditions of Use through the User’s use of the Portal and/or the Services. When a breach of these Terms & Conditions of Use has occurred, SPPG may take such action as it deems appropriate. SPPG has the right to disable the access of any User at any time, if in its reasonable opinion the User has failed to comply with any of the provisions of these Terms & Conditions of Use. SPPG will notify the User of any suspension or restriction of the User’s E-Account and of the reasons for such suspension or restriction as soon as SPPG can, unless notifying the User would be unlawful or would compromise SPPG’s reasonable security interests. SP Group 2 Kallang Sector, Singapore 349277, Tel: +65 6916 8888, www.spgroup.com.sg SPPG excludes liability for actions taken in response to breaches of these Terms & Conditions of Use. The responses described in these Terms & Conditions of User are not limited, and SPPG may take any other action that it reasonably deems appropriate. 15. APP POLICIES, MODIFICATION, AND SEVERABILITY Please review our other policies, such as the SP Group Personal Data Protection Policy (https://www.spgroup.com.sg/personal-data-protection-policy) which may be updated and/or amended from time to time, which shall be deemed to be incorporated into these Terms & Conditions of Use. By using the Portal and/or the Services, the User agrees that all Personal Data of the User may be collected, used and disclosed by SPPG, its Affiliates and partners in accordance with SP Group Personal Data Protection Policy, as may be updated and/or amended from time to time. In addition to and without prejudice to any other consent which the User provides to SPPG from time to time (for example through the SP Group Personal Data Protection Policy), the User hereby authorises and consents to SPPG, its Affiliates and partners to collect, use and disclose the Personal Data of the User for the following purposes: a. 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SP Group 2 Kallang Sector, Singapore 349277, Tel: +65 6916 8888, www.spgroup.com.sg A person or entity who is not a party to these Terms & Conditions of Use (other than SPPG’s Affiliates) shall have no right under the Contracts (Rights of Third Parties) Act (Chapter 53B of Singapore) or any similar legislation in any jurisdiction to enforce any term of these Terms & Conditions of Use. Without prejudice to the generality of the above, SPPG’s right to vary, amend or rescind these Terms & Conditions of Use in accordance with these Terms & Conditions of Use may be exercised without the consent of any person or entity who is not a party to these Terms & Conditions of Use. User agrees and acknowledges that these Terms & Conditions of Use and the Services do not include the provision of Internet access or other telecommunication services by SPPG. Any Internet access or telecommunications services (such as mobile data connectivity) required to access and use the Content and/or Services shall be the User’s sole responsibility and shall be separately obtained by User, at the User’s own cost, from the appropriate telecommunications or internet access service provider. Nothing herein shall be construed as a representation by SPPG and/or its Affiliates that the information and materials contained in or accessed through this Portal is appropriate or available for use in geographic areas or jurisdictions other than Singapore. By accessing and/or using this Portal and/or the Services, the User agrees that such access and/or use, as well as these Terms & Conditions of Use shall be governed by, and construed in accordance with, the laws of Singapore and the User agrees to submit to the exclusive jurisdiction of the Singapore courts. SP Group 2 Kallang Sector, Singapore 349277, Tel: +65 6916 8888, www.spgroup.com.sg

Consumption_Water Average consumption of Water (CuM) Premises Types Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 HDB 1-Room 7.9 8.0 8.1 8.0 7.9 8.0 8.0 8.0 7.8 7.8 8.0 8.3 HDB 2-Room 9.4 9.6 9.7 9.4 9.5 9.5 9.5 9.6 9.3 9.3 9.3 9.7 HDB 3-Room 12.3 12.2 12.5 12.1 12.4 12.4 12.4 12.3 12.0 12.0 12.2 12.8 HDB 4-Room 15.4 15.4 15.6 15.1 15.5 15.7 15.7 15.5 15.1 15.0 15.5 16.2 HDB 5-Room 16.9 16.7 16.9 16.3 16.8 17.1 17.1 16.9 16.4 16.1 16.7 17.8 HDB Executive 18.7 18.6 18.8 18.2 18.9 19.0 19.2 18.8 18.1 18.1 18.8 19.9 Apartment 14.0 13.7 13.7 13.2 13.3 13.7 13.9 13.7 13.1 12.8 13.1 14.4 Terrace 25.4 25.3 26.0 25.5 25.9 26.0 26.5 26.5 25.2 24.3 25.8 28.0 Semi-Detached 30.6 30.7 30.9 30.7 31.5 31.6 32.9 31.9 30.4 30.0 30.7 34.9 Bungalow 48.7 50.9 48.1 48.0 48.5 51.7 54.8 54.2 48.6 49.4 46.3 59.5

Media Release Growing The Singapore Core In Oil, Petrochemical, Energy & Chemical Sectors ~ $13 million set aside to attract locals, up-skill and train 1,000 technicians and engineers ~ Singapore, 7 November 2012 - The National Trades Union Congress’ (NTUC) Oil, Petrochemical, Energy & Chemical (OPEC) Cluster1 will move the OPEC sectors towards progressively higher wages by setting aside a $13 million funding for training and skills upgrading so as to grow the Singaporean Core. The OPEC sectors have been facing the key challenges of an ageing Singaporean Core in the technical professional workforce and attracting new entrants, despite competitive pay and prospects. 2. Mr K Karthikeyan, Chairman of NTUC’s OPEC Cluster said, “We have committed to this initiative to highlight that our Progressive Wage Model (PWM) (Annex A) is a model for all levels of workers. It aims to help them earn higher pay progressively throughout their careers, even in industries where salaries are relatively better. The Cluster and NTUC’s e2i (Employment and Employability Institute) will continue to work with our companies to tap on the funding to develop more structured approaches towards training for better jobs and good career progression for all Singaporeans.” 3. Singapore Power (SP), a leading energy utility company in the Asia Pacific, is a prime example of a company which has spearheaded efforts in concert with the Labour Movement. Aligned with the Cluster’s objectives of achieving better wages and strengthening the Singaporean Core in the OPEC sector, the Cluster joined hands with SP to organise a comprehensive Learning Journey (LJ) today. SP presented its career progression track, development programmes and new technologies that have helped workers enhance their skills and job scopes, resulting in higher productivity and wages. 4. To augment the Labour Movement’s commitment towards enhancing the skills of workers, the OPEC Cluster, in close partnership and funding support from the e2i and Singapore Workforce Development Agency (WDA), will set aside $13 million over the next three years to benefit 1,000 technical professionals (i.e. technicians and engineers). The Cluster will work with companies in the sectors to cultivate T-shaped2 capabilities for more locals to enhance the Singaporean Core. 5. Mr Ang Chai Soon, Director of Manufacturing & Construction Division, WDA, said: “WDA and e2i are pleased to work with the OPEC Cluster and the industry on Workforce Skills Qualifications (WSQ) training programmes and traineeships to help attract locals to join the sectors and develop strong technical expertise for them. The presence of a structured career progression and development pathway will enable companies to plan and develop their workforce capabilities for growth and expansion.” Career uplifting for technical professionals 6. The OPEC Cluster and tripartite partners aim to help 1,000 workers achieve progressively higher wages through various strategies (Annex B), namely: a. Allowances and subsidies for companies to attract and upgrade the Singaporean Core b. Developing and structuring the companies’ training and development frameworks c. Enhancing employee progression from technical to engineering positions 1 The NTUC Oil, Petrochemical, Energy and Chemical Cluster comprise seven unions representing workers from the Oil & Gas, Petrochemical, Energy, Chemicals and Biomedical sectors. They include the Chemical Industries Employees’ Union (CIEU), ExxonMobil Singapore Employees Union (EMSEU), Singapore Refining Company Employees Union (SRCEU), United Workers of Petroleum Industry (UWPI), Union Of Power and Gas Employees (UPAGE), Singapore Shell Employees Union (SSEU-SHELL) and the the Amalgamated Union of Statutory Board Employees (AUSBE). 2 T-shaped capabilities refers to employees’ in-depth specialised expertise (vertical bar), whereas the horizontal bar is the ability to collaborate across disciplines with experts in other areas and to apply knowledge in areas of expertise other than one's own. Career Progression Path – The Singapore Power (SP) Way As more businesses progress to strengthen the core of Singaporean workers, raise productivity and enhance job and wage progression, there are companies who have made good inroads in these areas.   SP is a unionised company under the Union of Power and Gas Employees (UPAGE). At today’s Learning Journey, the company shared its career progression pathway. SP has put in place a structured path for Technicians to progress to Senior Technician, and thereafter to Technical Officer, Senior Technical Officer and Engineer.   SP invests in the training and upgrading of workers to help them develop their potential and advance to higher responsibilities. One such example is Mr Abdul Rahman bin Suthamoo who joined SP as a Technician Apprentice. He underwent structured training and within 3 years, he became a fully qualified Technician. Last year, he completed his diploma through SP’s sponsorship and is now a Technical Officer. Another example is Mr Murugaiah Selvam who made the leap from Technical Officer to Engineer when he completed a degree course fully sponsored by SP. (See Annex C for the detailed profiles of Mr Selvam, Mr Rahman and two other workers who are now enjoying better jobs and wages through their respective career progressions).   Mr Wong Kim Yin, Group Chief Executive Officer, Singapore Power, explained, "We want to equip our staff with the right skills, tools and support to do their jobs well and take care of their families. Through continuous learning, as they advance to each stage of their career, they can look forward to upgrading their skills, improving productivity and attaining higher wages in a progressive manner."   RKS Nachiappan, General Secretary of the Union Of Power and Gas Employees (UPAGE) commended the move, “UPAGE and Singapore Power have worked hard over many years to cultivate an excellent working relationship. We are united in our journey towards creating “Better Jobs for All”. Through this partnership, we hope to promote inclusive growth for all workers, strengthen the Singaporean core, and implement productivity measures to create higher value jobs.”   In summary, what this means for: The Oil, Petrochemical, Energy & Chemical (OPEC) Cluster Support to address challenges of ageing workforce and attracting young entrants Grow the Singaporean Core The Employers – Companies and service providers Funding for companies to attract and upgrade the Singaporean Core Structuring of training and development frameworks The Employees – Technicians and Engineers More opportunities to develop T-shaped capabilities and advance in career Better clarity on upgrading opportunities and career prospects Consumers and Service Buyers Assurance of higher quality and reliability