Boustead FY2015 AR

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BOUSTEAD SINGAPORE LIMITEDannual report 2015

POSITIONING TO INJECT NEW ENERGY


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Visit us or download the Annual Report at www.boustead.sg.

Competitive Strengths

Key Achievements Group at a Glance

Financial Highlights

Chairman’s Message

Business Review

Financial Statements

KEY READSWITHIN THISREPORT


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Established in 1828, BousteadSingapore Limited is a progressiveglobal service provider ofinfrastructure-related engineeringservices and geo-spatial solutions.Focusing on the engineering anddevelopment of key infrastructureto support economic growth inthe public and private sectors of

emerging markets, our strong suiteof Engineering Services comprises:Energy-Related Engineering andReal Estate Solutions.

Under our Geo-Spatial Technologyarm, we provide professional servicesand exclusively distribute Esri geo-spatial technology – the world’sleading geographic informationsystems – to major markets acrossAustralia and South East Asia.

CORPORATE REPORT

Competitive Strengths Operational Highlights Key Achievements in FY Group at a Glance Global Presence Financial Highlights Chairman’s Message Energy-Related Engineering

Real Estate Solutions Geo-Spatial Technology Board of Directors Key Management Team Investor Relations Engineering the World of the Future Corporate Information

FINANCIAL REPORT

Financial Statements Management & Principal Activities Statistics of Shareholdings

Notice of Annual General Meeting Proxy Form

CONTENTS

CORPORATEPROFILE

Our solutions are essential to theeffective planning, deployment andmanagement of key infrastructureand resources in countries.

To date, Boustead has undertakeninfrastructure-related projects in84 countries globally.

In 2008 and 2009, Boustead wasrecognised in the prestigious ForbesAsia 200 Best Under A Billion as oneof the Asia Pacific’s 200 best public-listed corporations under US$1 billionin revenue. We are also listed onthe MSCI World Small Cap Index forSingapore and the FTSE ST SmallCap Index.


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2 Boustead Singapore Limited annual report 2015

Boustead Singapore Limited is positioning to injectnew energy into our business following the successfuldemerger and separate listing of Boustead ProjectsLimited on the SGX on 30 April 2015.

We have established reputable positions in ourprincipal market sectors.

Our ability to bring together engineering skills andproven technology makes us a dependable partnerwith a trusted brand name.

Going forward, our strategy to produce world-classengineering solutions globally and to enhance ourrobust capabilities through strategic acquisitions andinvestments will position us to create value for ourshareholders in the long-term.

POSITIONING TO INJECT NEW ENERGY


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Boustead Singapore Limited 3annual report 2015

BUILDING

INDUSTRIOUSSOLUTIONS

ENERGISING

THE FUTURE

NAVIGATING

WITH INNOVATION

ENERGYRELATEDENGINEERING

REAL ESTATESOLUTIONS

GEOSPATIALTECHNOLOGY


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ENERGISINGTHE FUTURE


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Boustead InternationalHeaters has designed

and supplied waste heatrecovery units that recovertotal energy equivalent tothat which can heat overtwo million homes in the U.K.

Our Energy-RelatedEngineering Division has

delivered projects formore than 60% of theworld’s 50 largest oil & gascorporations including SaudiAramco, the world’s largestoil & gas corporation.


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BUILDINGINDUSTRIOUSSOLUTIONS

Our Real Estate SolutionsDivision, Boustead Projects

Limited is the market leaderin Singapore in pioneeringadvanced environmentally-sustainable industrial facilities,having delivered 25% of allGreen Mark Platinum-ratednew non-residential facilitieson Business 1 and Business2 industrial-zoned land inSingapore.

Boustead Projects Limitedis one of only 10 bizSAFE

Mentors in Singaporeand continues to activelyengage and empowersubcontractors throughimplemented programmesto encourage and rewardgood safety behaviour.


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NAVIGATINGWITH INNOVATION


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Our Geo-Spatial TechnologyDivision is the number one

provider of geographicinformation systems inAustralia, Singapore,Malaysia and Indonesia.

Our geo-spatial platformssupport the effective and

efficient management of bigdata such as national assets,infrastructure and resources.Such solutions are critical tothe creation of smart citiesand smart nations.


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COMPETITIVESTRENGTHS

Boustead has a clear definedstrategy, which outlines our

business model and drivesour performance. It sets usapart from our competitorsand gives us the necessaryplatform to deliver long-termvalue to our shareholders.It also makes Boustead arewarding and fulfilling placeof work for our employees.

Absolute growth in grossdividend per ordinaryshare over one decade

p1,198%

Absolute growth inearnings per shareover one decade

Absolute growth in netasset value per shareover one decade

Average return on equityover one decade

p297% p303% 24%

Energy-Related

Engineering

Real Estate

Solutions

Geo-Spatial

Technology



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OUR BUSINESS MODEL

Our experienced and versatile teamspossess in-depth domain expertiseand tremendous internationalexperience. Following through withour clients on design, process anddetailed engineering to the projectmanagement and commissioningof large-scale infrastructure-relatedprojects, we are a knowledge-drivencorporation with an excellent trackrecord. Our in-house expertise inundertaking only the high value-addedactivities across the engineering valuechain of activities means that we areable to focus on the details that mattermost to our clients.

Employing a business model withinbuilt exportability and flexibility hasenabled us to adapt our businessoperations to diverse situations andwidespread geographic markets.

OUR STRATEGY

Leading market positionsWe have made our mark in nicheareas, undertaking important projectsat many of the world’s largest energydevelopments, Singapore’s leadingindustrial parks and in support ofgovernment agencies regionally.

Reputable brand and proventrack recordWith a strong brand heritage, we haveestablished reputable positions inour principal market sectors, bringingtogether engineering skills and proventechnology in over 1,000 projects.

Acquisitions and investmentsOur continuous search for value inacquisitions and investments is aimedat broadening our revenue streams anddriving long-term sustainable growth.

Engineering and managementexpertiseOur teams offer in-depth domainexpertise and deliver valueengineering, helping our clients

to achieve a highly effective costcompetitive solution that raisesefficiency and sustainability whileeliminating wastage.

Balancing risk and rewardWe are vigilant in aligning ourstrategies with risk ownership,ensuring that enhanced shareholdervalue and rewards are supportedby sound risk management.

Excellent health and safety recordWe strive to achieve the highest

standards for workplace health, safetyand environment, for the wellbeingand protection of every individual.We are a leader and active participantin the bizSAFE Programme initiated bythe Workplace Safety & Health Council.

Generating increased revenue,profit and cash flow in a

sustainable manner

Upholding our excellent reputationfor credibility, reliability and trust

Delivering long-term valueto shareholders

OUR VALUE CHAIN


Designing sustainable solutions

Committing tooperational excellence

Delivering efficiency and value to our clients


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OPERATIONALHIGHLIGHTS


Leadingpositionsin marketswithhealthylong-termprospects

13consecutiveyears ofdividend payout

industrial leasehold portfolio

(both completed and underconstruction)*

199,698 sqm

199,698 sqm181,860 sqm

FY2014 FY2015

8%compoundedannual growthrate in profitbefore tax overpast decadeachieved byGeo-SpatialTechnologyDivision

record contracts

secured by Real EstateSolutions Division

record profit beforetax attained byEnergy-RelatedEngineering Division

S$284m

S$33.4m

* Includes both wholly-owned and joint venture properties.


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KEY ACHIEVEMENTSIN FY2015

NOVEMBER 2014

Award of largest geo-spatial contract in history Esri Australia was awarded a landmark A$16.5 million contract from Australia’sDepartment of Defence – the largest in its and the Geo-Spatial TechnologyDivision’s history.

JUNE 2014

Moving into Edward Boustead CentreThe Boustead Group shifted into our new global headquarters, Edward BousteadCentre, which was designed and built by Boustead Projects Limited as a GreenMark Platinum showcase and symbolises our strong values in sustainability.

MARCH 2015

Boustead Development Partnership takes off Boustead Development Partnership was awarded its first two developmentcontracts for GlaxoSmithKline at one-north and a European aerospacemultinational corporation at the Seletar Aerospace Park.

OCTOBER 2014

Going places in MalaysiaBoustead Projects Limited strengthened its presence in Malaysia, first with thelaunch of its joint venture business park development, iBP @ Nusajaya, and thenwith the award of a milestone construction contract at the Kulim Hi-Tech Park.

APRIL 2015

Successful demerger and separate listing of Real Estate Solutions DivisionBoustead Projects Limited was listed on the Main Board of the SGX on30 April 2015.



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GROUP AT A GLANCE

Energy-Related Engineering

The Energy-Related Engineering Division is focused onproviding key process technologies for:

1. Oil & gas installations and petrochemical plants; and2. Water & wastewater treatment plants for the energy

sector.

The division has undertaken more than 1,200 projectsin 83 countries globally.

consecutive yearsof dividend payout

Group Revenue Group Net Profit Group Net Cash Position

13


DivisionRevenue (S$m)

S$190.3m

Year-on-Yearq4%

197.6

DivisionProfit BeforeTax (S$m)

S$33.4m

Year-on-Yearp29%

25.9

DivisionContractsSecured (S$m)

S$105m

Year-on-Yearq58%

248

105

33.4190.3

S$556.4m S$63.3m S$73.6m

FY14 FY14 FY14 FY15FY15FY15

Go to pages 24-29 of the annual report.


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Real Estate Solutions Geo-Spatial Technology

The Real Estate Solutions Division (i.e. Boustead ProjectsLimited) is focused on providing design-and-build anddevelopment expertise for:

1. Industrial facilities;

2. Commercial buildings; and3. Industrial and business parks.

The division has delivered more than 3,000,000 squaremetres of industrial real estate regionally. It is a leaderin pioneering advanced environmentally-sustainableindustrial facilities.

The Geo-Spatial Technology Division is focusedon providing professional services and exclusivedistribution of Esri geo-spatial technology, the world’sleading geographic information systems.

The division has more than 13,000 clients including keygovernment agencies and multinational corporationsacross its seven exclusive markets in Australia andSouth East Asia.

Group Contracts Secured Earnings Per Share Net Asset Value Per Share



S$255.4m

Year-on-Yearp22%


S$110.6m

Year-on-Yearp3%

106.9

209.2

25.2


S$33.4m

Year-on-Yearq15%


S$22.7m

Year-on-Yearq10%

39.4

DivisionContractsSecured (S$m)

S$284m

Year-on-Yearp80%

158

284

33.4

255.4

22.7

110.6

FY14 FY15

Revenue by Division FY14 FY15Energy-Related Engineering*Real Estate SolutionsGeo-Spatial Technology

%%%

%%%

S$389m 12.3¢ 73.0¢

* Water & Wastewater Engineering’s financial results have been grouped under Energy-Related Engineering.

FY14FY14 FY14FY14 FY14 FY15FY15FY15 FY15FY15




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GLOBALPRESENCE


Projectsundertakenin 84 countries

ENERGYRELATED ENGINEERING

REAL ESTATE SOLUTIONS

GEOSPATIAL TECHNOLOGY

PROJECTS TRACK RECORD PROJECTS ONGOING IN FY2015

ENERGYRELATED ENGINEERING

REAL ESTATE SOLUTIONS

GEOSPATIAL TECHNOLOGY

Eastern Europe

Hungary

Poland

Russia

Slovakia

Ukraine

Northern Europe

England

Finland

Ireland

Isle of Man

Lithuania

Norway

Scotland

Wales

Southern Europe

Cyprus

Greece

Italy

Spain

Turkey

Western Europe

Austria

Belgium

Germany

Netherlands

Switzerland

Latin America & Caribbean

Argentina

Bolivia

Brazil

Chile

Dominican Republic

Mexico

Netherlands Antilles

Peru

Venezuela

North America

Canada

U.S.A.

AFRICA

Eastern Africa

Tanzania

North Africa

Algeria

Egypt

Libya

Tunisia

Middle Africa

Angola

Equatorial Guinea

Western Africa

Gabon

Ghana

Nigeria

EUROPENORTH AMERICA& SOUTH AMERICA


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ASIA AUSTRALIA & OCEANIA

East Asia & Central Asia

Azerbaijan

China

Hong Kong

Japan

Macau

South Korea

Taiwan

Turkmenistan

South East Asia

Brunei

Indonesia

Malaysia

Philippines

Singapore

Thailand

Timor-Leste

Vietnam

Australia

New Caledonia

New Zealand

Papua New Guinea

South Asia

Bangladesh

India

Maldives

Pakistan

Sri Lanka

South West Asia

Bahrain

Jordan

Kuwait

Oman

Qatar

Saudi Arabia

U.A.E.

* Order book backlog as at the end ofFY2015 plus new orders secured since.

AFRICA

NORTHAMERICA ASIA

order book

order book order book

S$6mSOUTHAMERICA

order bookS$7m

S$22m S$357m

EUROPE

order bookS$17m

Order book backlog of S$409 million*


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FINANCIALHIGHLIGHTS


REVENUE AND PROFITS

Revenue , , , , ,

Gross profit , , , , ,

Profit before income tax , , , , ,

Profit for the year , , , , ,

Profit for the year attributable to

equity holders of the Company , , , , ,

Cash/Scrip dividends (,) (,) (,) (,) (,)

Distribution of shares in specie (,) - - - -

STATEMENT OF FINANCIAL POSITION

Equity attributable to equity holders

of the Company , , , , ,Non-controlling interests , , , , ,

CAPITAL EMPLOYED , , , , ,

Trade receivables (non-current) , , , , ,

Prepayments (non-current) , , - - -

Available-for-sale financial assets (non-current) , , , , ,

Property, plant and equipment , , , , ,

Investment properties , , , , ,

Goodwill - , , , ,

Other intangible assets , , , , ,

Investments in associated companies , , , , ,

Investments in joint ventures , , - - -

Net deferred income tax assets , Net current assets , , , , ,

Non-current liabilities

(excluding deferred income tax liabilities) (,) (,) (,) (,) (,)

ASSETS EMPLOYED , , , , ,

FINANCIAL STATISTICS

Operating profit over turnover (%) . . . . .

Return on equity (%) (Note) . . . . .

Gross dividend per ordinary share (cents) . . . . .

Dividend cover (times) . . . . .

Basic earnings per ordinary share (cents) (Note) . . . . .

Net asset value per ordinary share (cents) (Note

) . . . . .

31 Mar 15 31 Mar 14 31 Mar 13 31 Mar 12 31 Mar 11 S$’000 S$’000 S$’000 S$’000 S$’000

Notes:

. Based on profit for the year attributable to equity holders of the Company divided by equity attributable to equity holders of the Company.

. Based on profit for the year attributable to equity holders of the Company divided by weighted average number of ordinary shares in issue during

financial year ended March.

. Based on equity attributable to equity holders of the Company divided by number of ordinary shares in issue at end of financial year ended March.


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* Refers to 10-year compounded annual growth rate.

Group Revenue (S$m)10-Year CAGR*9%

Net Cash Position (S$m)10-Year CAGR13%

Gross Dividend Per Orinary Share (Cents)10-Year CAGR29%

Earnings Per Ordinary Share (Cents)10-Year CAGR

15%

Net Asset Value Per Ordinary Share (Cents)10-Year CAGR

15%

Group Net Profit (S$m)10-Year CAGR16%

FY11

FY11

FY11

FY11

FY11

FY11

FY12

FY12

FY12

FY12

FY12

FY12

FY13

FY13

FY13

FY13

FY13

FY13

FY14

FY14

FY14

FY14

FY14

FY14

FY15

FY15

FY15

FY15

FY15

FY15

560.6

184.6

10.3

52.2

7.0

45.3

408.7

170.5

11.0

55.6

5.0

50.4

513.2

189.1

16.2

81.4

7.0

60.0

513.7

165.9

13.9

70.7

7.0

68.4

556.4

73.6

12.3

63.3

19.5

73.0


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CHAIRMAN'SMESSAGE

Dear Fellow Shareholder,It gives me great pleasure to present to you the BousteadFY2015 Annual Report for the financial year ended31 March 2015.

This past year, we achieved our second highest revenueperformance at S$556.4 million, increasing 8% year-on-year and just shy of our record revenue attained inFY2011. Our net profit attributable to you – the owners of

our company – registered at a respectable S$63.3 million,although it decreased 10% year-on-year.

Comparing our net profit on an apple-to-apple basis bystripping away the major non-recurring items year-on-year, our core net profit would instead be 3% higher thanFY2014. We delivered a commendable set of financialresults in the face of the challenges posed by global andlocal economic conditions.

FY2015 – Broad-Based Profitability in TougherEconomic ConditionsI am pleased to report that all three divisions turned ina profit before tax (“PBT”) in FY2015, which allowed the

Group to achieve broad-based profitability for the fourthsuccessive year.

When we review the global economic environment,two factors, both originating from the U.S. had the largestimpact on us over the past year. The first was the FederalReserve’s frequent hints of an eventual rate hike amid signsof better economic prospects in the U.S., which pushedUSD to a five-year high against most major currencies(including AUD and SGD). This created currency headwindsfor our Geo-Spatial Technology Division. The secondwas the U.S. shale boom, which helped to destabilise thedemand and supply equilibrium in the global oil & gas

SUMMARY OF MESSAGE

Wong Fong FuiChairman & Group Chief Executive Officer


We achieved our second highestrevenue performance at S$556.4 million.Our net profit registered at a respectableS$63.3 million.

Boustead Projects was listed on theMain Board of the SGX on 30 April 2015.

Our Energy-Related EngineeringDivision’s PBT hit a new record ofS$33.4 million, up 29%.

Our Geo-Spatial Technology Divisionattained a recovery in revenue, increasing3% to S$110.6 million.

Together with our interim dividend of2 cents paid and 15.5 cents equivalentdividend in specie of Boustead Projects’shares, the 19.5 cents dividend forFY2015 is our highest on record.


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Group Revenue (S$m)

S$556.4m10-Year CAGR9%

560.6

438.4

516.6

438.3

343.9

289.3

408.7

513.2 513.7556.4

industries and resulted in a freefall in Brent crude pricesfrom US$115 per barrel to below US$50 before reboundingto above US$60. This negatively impacted our Energy-Related Engineering Division.

Following FY2014’s record-breaking year, our Energy-Related Engineering Division had the tricky task ofreplicating comparable results in FY2015, especiallywith the slump in global crude prices. Nonetheless, our

division delivered revenue of S$190.3 million, down just4% from a year earlier. Even better, PBT hit a new record ofS$33.4 million, up 29% on better cost management acrossspecific projects. Entering FY2015 with bright prospects,our division’s outlook dimmed soon after followingthe same path as the crude price plunge. The ratherunexpected crash in crude prices also led to global oil& gas corporations significantly cutting back on more thanUS$100 billion in capital expenditures, resulting in delaysin the award of sizeable contracts and the slow but suredepletion of our division’s order book backlog overthe period. A moment of déjà vu, we had entered oursecond down cycle in the short six years since the GlobalFinancial Crisis.

In case you are curious about how our water businessfared after we absorbed it into the Energy-RelatedEngineering Division, it managed to stay in the black witha PBT of S$0.9 million. Nothing exciting but then again,not posing any inconvenience to us either.

Our Real Estate Solutions Division (i.e. Boustead ProjectsLimited) topped the revenue contributors once againfor the eighth consecutive year. On 30 April 2015,the successful demerger of Boustead Projects wascompleted with its separate listing on the SGX – which mayI add is the first and only listing on the Main Board of the

SGX in 2015 (at the point of writing this message). With itslisting, Boustead Projects presented its inaugural financialresults announcement for FY2015. Revenue rose 22% toS$255.4 million while PBT declined 15% to S$33.4 million.Stripping away the major non-recurring items year-on-year,Boustead Projects’ core net profit would instead be 4%lower than FY2014. Revenue increased on both fronts atthe design-and-build and leasing businesses. BousteadProjects continues to operate in a challenging business

environment that has affected the entire real estateindustry in Singapore.

Despite being confronted by currency headwinds,our Geo-Spatial Technology Division attained a recoveryin revenue, increasing 3% to S$110.6 million. Strippingaway revenue translation effects, revenue growth wouldhave been in the mid-to-high single digits. This clearlydemonstrates that there is firm demand for Esri productsand services in our exclusive geographic territories.However, PBT was down 10% to S$22.7 million due to theafflictions of strengthening USD on our margins, as well asgoodwill impairment at MapData Services, a subsidiary ofEsri Australia which failed to live up to profit expectations

after being acquired five years ago. Any significant fall inAUD against both USD (the currency that we purchase in)and SGD (the currency that we report in) may impact ourresults further down the road.

With our commendable set of financial results, your Boardproposed a final dividend of 2 cents for your approval.Together with our interim dividend of 2 cents paid and15.5 cents equivalent dividend in specie of BousteadProjects’ shares which we distributed, the 19.5 centsdividend for FY2015 is our highest on record. We trustthat this pleases you.


FY11FY10FY09FY08FY07FY06 FY12 FY13 FY14 FY15


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CHAIRMAN'SMESSAGE


Spinning Off Boustead Projects and Succession PlanningIn last year’s annual report, I spoke at length about howour portfolio of businesses gives us momentum. It begsthe question then on why we decided to spin off BousteadProjects at this juncture and distribute 48.8% of BousteadProjects’ shares to our shareholders. Allow me to elaboratefurther on our rationale for doing so.

If you have not already read our Circular and Introductory

Document released for the demerger of Boustead Projects,we would encourage you to do so. It is by far one of themost transparent documents highlighting the hiddenvalue within Boustead Projects. At least four good reasonswere shared for the demerger. However, it is not thesefour reasons – all of which remain valid – that I would liketo elaborate on and which you can easily read in theabovementioned documents. Instead, I would like to touchon two important points, succession planning and capitalallocation.

Let us face it, I am getting on in years. At 71, although myenergy is still there, it is not what it used to be, even ifmy hair is none the whiter. The Board and more precisely,

the Nomination Committee and I, have spent a considerableamount of time over the past five years looking for mysuccessor. Alas, the search has been to no avail thusfar. The difficulty in finding suitable candidates has beenmade tougher by the requirement for cross-industrydepth of experience in energy, real estate and geo-spatialtechnology.

As the largest revenue contributor to our Group over thepast eight years, the Real Estate Solutions Division hasdelivered about S$1.8 billion in total revenue over thatperiod, representing 45% of the Group’s revenue over thatperiod. The division has reached a size where it stands on itsown two feet comfortably, as is evident by its straightforward

listing on the Main Board of the SGX instead of on theCatalist. This demerger is not simply about unlockingvalue but also about high level risk management.

Call me a cautious guy. Should anything untoward happento me (touch wood), about half of our Group’s businesswill go on operating without a hitch as if nothing hadhappened. Rest assured, we are leaving you in capablehands. Thomas Chu and Wong Yu Wei are clearlyexperienced and closer to the ground, and deserve duecredit and the flexibility to move Boustead Projects in theright direction. To advise them, we have put in place aBoard for Boustead Projects which is totally independent

and has no overlap with that of our Board. Read theresumes of the independent non-executive directors atBoustead Projects – John Lim, Chong Lit Cheong, Dr TanKhee Giap and James Lim – and you will find a treasuretrove of relevant experience to guide Boustead Projectsforward. Such capable leaders give me great comfort.I hope it does the same for you. In time, I believe that youwill see plenty of value unlocked in Boustead Projects.

With Boustead Projects well taken care of, our Board andmanagement really only has to worry about securing mysuccessor, hopefully a strong business leader who willlook after our other two divisions. I believe that this maymake the task a tad bit easier. It also, at this point in time,

frees up our management’s time to focus on strategiesfor what remains.

This brings me to my second point on the demerger ofBoustead Projects, that of capital allocation. You would havenoticed by now that the business profile and balance sheetof Boustead Projects are quite different from the rest of theGroup. Boustead Projects is the sole owner of the Group’sindustrial leasehold portfolio (asset heavy) and also thechief borrower of the Group’s bank loans (user of leverage).Listing Boustead Projects provides it with the ability to investin the growth of the industrial leasehold portfolio and otherexpansion activities without placing additional constraintson the rest of the Group. Our net cash position can then be

freed for deployment in interesting acquisition opportunitiesthat we may come across. Capital allocation within ourGroup is now clearly defined. On your part, we have also


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52.2

43.1

60.1

51.5

35.2

24.9

55.6

81.4

70.7

63.3

Group Net Profit (S$m)

S$63.3m10-Year CAGR16%


given you the ability to directly control your capital allocationin us, as you now have the flexibility to choose to be ashareholder of both listed entities or retain one and divestthe other, depending on what you are comfortable with.Take it also that I have transferred some of my riskmanagement capabilities to you.

FY2016 – Injecting New Energy This year’s message on the front cover of our annual report

states, “Positioning to inject new energy”.

Following the spin off of Boustead Projects, what remainsfirmly within our control are our Energy-Related Engineeringand Geo-Spatial Technology Divisions. In FY2016, we arepositioning ourselves to inject new energy into the Group,both literally and metaphorically speaking.

With Boustead Projects contributing less to our bottomlinein the future, the importance of the Energy-RelatedEngineering Division is likely to grow. True, we arewitnessing dampened global crude prices. That doesnot change the fact that we are still great believers in themedium-to-long-term importance and prospects for energy

in our world. Put simply, the world can save on consumerproducts and services during tough financial times but itcannot merely switch off electricity or scrimp on fuel to travelthe same distance. The demand and supply equilibriumwill eventually return to support prices.

Still on the topic of energy, the longer that crude pricesstay at lower levels, the brighter our silver lining appears.As we search for new ways to grow our divisions, the onespace that acquisition opportunities are beginning to lookmuch more attractive is in the energy industry. This couldnot have been said one year ago, when valuations lookedterribly expensive. What a difference a year makes. If wecomplete any energy acquisition in the near term, I can

assure you that the valuation paid would be reasonableand well within our appetite.

Lastly, I would like to see FY2016 as the year that weposition to inject new energy into the Group, metaphoricallyspeaking. Since the Global Financial Crisis, we havemaintained a respectable baseline performance. It hasnot been easy. However, as we reposition this Group,we aim to reinvigorate ourselves for the long-term future.After all, we still possess some very valuable attributes:a great brand name, strong values, track records, a healthynet cash position and balance sheet, and a knack for

reinvention. Need an acquisition be only in the energy spaceor within one of our remaining two divisions? Not necessarily.Positioning to inject new energy could also come in the formof the Group being an incubator of new businesses withsustainable prospects. We will not see the immediate resultsin FY2016 but as we set things in motion and focus ourefforts and time on the remaining two divisions, we hopeto plant the seeds for many fruitful years to come.

Our order book backlog of S$409 million (as at the end ofFY2015 plus new orders secured since) is healthy. We willput our energy into securing more sizeable contracts inFY2016 and reinvigorating our Group.

A Word of AppreciationTo end off, I would like to express my deepest gratitudeto our management and staff around the world for theirefforts. I would also like to extend my thanks to all ourclients, business partners, associates, bankers, suppliersand shareholders for your continuous support.

Thank you for supporting us. I look forward to seeing you atour upcoming Annual General Meeting.

Wong Fong FuiChairman & Group Chief Executive Officer

FY11FY10FY09FY08FY07FY06 FY12 FY13 FY14 FY15


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ENERGYRELATEDENGINEERINGMarket Sectors• Crude oil and natural gas production• Crude oil and natural gas refining• Gas-to-liquids production• Hydrogen power generation• Liquefied natural gas production• Oil sands upgrading• Once through steam generation• Power generation

• Waste heat recovery

Geographic Markets• Africa• Asia Pacific• Australia• Europe• Middle East• North America• South America

Air preheaters, Turkmenistan


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Division Profit Before Tax (S$m)

S$33.4mYear-on-Yearp29%

15.313.5

15.2

25.9

Division Revenue (S$m)

S$190.3mYear-on-Yearq4%

169.6 165.8

147.0

197.6

Division Contracts Secured (S$m)

S$105mYear-on-Yearq58%

104

150 142

248190.333.4

105

FY11 FY12 FY13 FY14FY11 FY12 FY14 FY11 FY12 FY13 FY14FY15 FY15 FY15FY13


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ENERGY-RELATEDENGINEERING


In FY2015, the Energy-RelatedEngineering Division managed its

second highest revenue performanceat S$190.3 million, down 4% fromthe previous year’s record revenue.This was attained despite the weakbusiness environment in the global oil& gas industries, which has persistedsince the second quarter of FY2015and resulted in a gradual depletion ofthe division’s order book backlog asthe year progressed. Profit before tax(“PBT”) was a record S$33.4 million,up 29% and attributable to an overallimprovement in margins and costsavings in specific projects.

Almost all of the revenue and profitcontributions came from businessunits involved in providing key processtechnologies for:1. Oil & gas installations and

petrochemical plants; and2. Water & wastewater treatment plants

for the energy sector.

Downstream Oil & Gas/Petrochemical InfrastructureBoustead International Heaters(“BIH”) is a leading global specialist indesigning, engineering and supplyingdirect-fired process heater systems,waste heat recovery units (“WHRUs”)and once through steam generatorsto the downstream oil & gas andpetrochemical industries. In recentyears, BIH has established a strongreputation in delivering WHRUs tothe upstream oil & gas and powerindustries as well.

In FY2015, BIH progressed onschedule with over 30 projects across

six continents, delivering key large-scale process heater systems andWHRUs to energy developmentsundertaken by global engineering,procurement & construction (“EPC”)

clients, and multinational and nationaloil & gas clients. WHRUs contributed

to approximately 55% of BIH’s revenue,with much of the remainder comingfrom process heater systems. Thesupply of process heater systems andWHRUs was mainly to oil refineriesand gas processing plants within thedownstream oil & gas industries.

Due to the slump in global crudeprices, many major oil & gascorporations significantly cut back oncapital expenditures across the board,both upstream and downstream.As a result, investment decisions

for large enquiries were delayedeven though BIH’s enquiry pipelineremained relatively healthy and globaldownstream refining operations ofmost major oil & gas corporations weremore profitable during the period.BIH did continue to see sustainedactivity from repeat clients investingin upgrading and refurbishment worksfor existing infrastructure. Furtherinvestments to upgrade brownfieldprojects or existing infrastructure areexpected to be a larger part of BIH’senquiry pipeline as compared toinvestments in greenfield projects.

In light of lower global crude prices,competition for contracts alsointensified. BIH has taken steps tobetter manage its supply chain tomaintain its competitive edge andquality to its clients. This helped BIHto achieve record PBT in FY2015stemming from improvements inproject margins and cost savingsin specific projects.

North America and Europe provedto be the most important marketsfor BIH, with more than one-thirdof all ongoing projects originatingfrom these two continents. In North

America, BIH progressed on fourcontracts each in the U.S. and Canada,

where sophisticated process heatersystems were supplied to an oilsands development for a repeat client.In Europe, BIH continued to advanceon its largest projects of the year forthe supply of process heater systemsand WHRUs at gas processing andLNG plants.

On the business development front,BIH’s extensive global network ofquality fabricators and high level ofservice responsiveness were keyfactors in BIH successfully securing

another two contracts for repeat clientsin North America, which continuesto be an important global energymarket. In Canada, BIH was awardeda contract to supply process heatersystems to Phase 3 of a project,after having secured contracts for avariety of process heater systems forPhase 2 of the same project abouttwo years ago. Elsewhere, BIH alsosecured contracts across Africa,Asia Pacific, Europe, Middle East andSouth America, with several contractsrelated to capital expenditures forupgrading and refurbishment worksat brownfield projects or existinginfrastructure.

With its recognised technicalcompetency in designing WHRUs,BIH strengthened its position in theindustry through securing five newcontracts to supply WHRUs, of whichthree are for the world’s top gasturbine vendors, GE Oil & Gas andSiemens.

Going forward in FY2016, BIH expectsthat any persistent downtrend in globalcrude prices may result in furtherdelays in investment decisions whichwill affect the negotiations of sizeable

MAJOR

CONTRACT AWARDS & ACHIEVEMENTS

IN FY2015

APR JUN 2014

Africa, Asia Pacific, Middle East,North America

S$41 million

Process heater systems, WHRUs,WHCPs, ICSS systems anddemineralisation plant


29/172


Reactor feed heaters, Saudi Arabia

WHRUs being lifted onto FPSO, Angola

OCT DEC 2014

Africa, Asia Pacific, Middle East,North America, South America

S$28 million

Process heater systems, WHRUs,WHCPs, HPUs, ICSS systems, CI skidsand wastewater treatment plants

JAN MAR 2015

Africa, Asia Pacific, Europe,Middle East

S$11 million

WHRUs, WHCPs, F&G detectionsystems and wastewatertreatment plant

JUL SEP 2014

Asia Pacific, Middle East,South America

S$25 million

Process heater system, WHRUs,WHCPs and F&G detection systems

enquiries. BIH remains focused onseeking opportunities in major oil &

gas regions, especially those regionswhere there are economically viableenergy developments in the currentoil & gas climate.

Upstream Oil & Gas InfrastructureBoustead Controls & Electrics(“BC&E”) is a well-recognised leader indesigning, engineering and supplyingwellhead control panels (“WHCPs”)and systems which use eitherpneumatic/hydraulic-based or safetyprogrammable logic controller-basedlogic, hydraulic power units (“HPUs”),

integrated control & safety shutdown(“ICSS”) systems, chemical injection(“CI”) skids, fire & gas (“F&G”) detectionsystems and other process controlsystems to the upstream oil & gasindustries.

During FY2015, BC&E made goodprogress on projects for many repeatclients in the Middle East, India andAsia Pacific. Of worthy mention,BC&E substantially delivered nineintegrated containerised wellheade-houses deployed to Saudi Aramco’sManifa Project. BC&E has alreadyput into service a number of thesesystems under a separate installationand commissioning contract awardedby Saudi Aramco. In India, BC&Econtinued to be the supplier of choicefor process control systems installed atvarious production platform upgradingand refurbishment projects for thenational oil & gas producer andend-user, ONGC.

FY2015 was an excellent year for

BC&E in terms of both performanceand new orders secured. PBT was thehighest ever. A record S$34 million innew contracts were also secured fromseveral new and repeat clients.


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ENERGY-RELATEDENGINEERING


This included contracts worthS$12 million from Abu Dhabi National

Oil Company’s entities – secured bothdirectly and through EPC corporations– for the supply of hydraulic andelectro-hydraulic wellhead controland safety shutdown systems.

Expanding its EPC client base,BC&E also secured a contract fromnew client, Snamprogetti for repeatend-user, Saudi Aramco, also forthe supply of WHCPs where BC&Ehas built up a significant commercialadvantage with proven in-housecapabilities for all of the technologies

involved.

Enquiry pipelines for WHCPs andhydraulic control systems were veryhealthy, with increased opportunities inonshore production facilities. A goodnumber of contract wins came from theMiddle East, specifically Saudi Arabiaand the U.A.E. While the downtrendin global crude prices resulted in adelay on investment decisions forlarger enquiries in the upstream oil& gas industries, there was a healthyorder inflow from major oil & gasclients investing in upgrading andrefurbishment works for brownfieldprojects or existing infrastructure.

Going forward in FY2016, BC&Ewill be focused on opportunitiesin the Middle East, India and AsiaPacific, where it has a strong marketpresence. The market outlookremains somewhat challenging withsignificantly less activity in greenfieldprojects but potential opportunitiesexist for upgrading and refurbishment

works which require lower capitalexpenditures. To provide better serviceto existing clients in the Middle East,BC&E will be setting up local offices inAbu Dhabi and Saudi Arabia.

Smart wellhead shutdown systems, Saudi Arabia

Wastewater recycling plant at Asia Symbol pulp & paper mill, China


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Water & Wastewater Engineeringfor Energy Sector

Boustead Salcon Water Solutions(“BSWS”) is a leading global water &wastewater engineering specialist forthe energy sector and Singapore’slargest ion exchange specialist inthe energy sector. BSWS’ in-depthdomain expertise and vast experiencefocuses on seawater desalination, ionexchange and wastewater recycling.With more than 800 installations in60 countries worldwide, BSWS hasdelivered projects across the oil & gas,petrochemical, pharmaceutical, power,semiconductor and special defence

industries, as well as for municipalauthorities.

Unlike its competitors, BSWS is a fullyintegrated engineering, procurement,construction & maintenance contractorand is approved by the Building &Construction Authority of Singapore forGrade ME11-L6 to execute mechanicaland electrical contracts of unlimitedvalue. In addition, BSWS has theoutstanding distinction of being one ofan exclusive group of Asian specialistsoutside of Japan to be a pre-qualifiedvendor to several of the world’s largestEPC corporations.

Following BSWS’ streamlining of itsbusiness development and operationsto focus on the energy sector,specifically the power and oil & gasindustries, BSWS has been regroupedunder the Energy-Related EngineeringDivision. The slump in global crudeprices affected BSWS’ enquiry pipelinein different ways. Enquiry levels for theupstream oil & gas industries suffered

a significant slowdown, with investmentdecisions for larger enquiries delayedand noticeably longer negotiationperiods. On the other hand, enquirylevels for the power and downstream

oil & gas industries continued to berelatively healthy as lower global crude

prices resulted in a situation of cheaperfeedstock made available for powerand refining operations.

During FY2015, BSWS made progresson industrial water and wastewatertreatment projects across five countriesin Africa, Asia Pacific and MiddleEast. In Nigeria, BSWS completedammonia and urea water filtrationand condensate polishing plants forIndorama’s US$1.2 billion fertilisercomplex at Port Harcourt, which boaststhe world’s largest single train urea

complex.

In Taiwan, BSWS progressed on an118,560 cubic metres/day condensatepolishing plant at Taiwan PowerCompany’s 1,600MW ultra supercriticalcoal-fired thermal power plant.Advanced ion exchange technologyhas been employed within thecondensate polishing plant to producehigh grade pure boiler feedwaterfor the power plant, making it moreenergy-efficient and environmentally-friendly as compared to existingtraditional coal-fired power plants.The condensate polishing plant isundergoing installation and is expectedto commence operations in July 2015.

BSWS also completed the design andconstruction of water and wastewatertreatment plants at the Petronas LNGComplex for the LNG Train 9 in Bintulu,Sarawak. The Petronas LNG Complexis one of the world’s largest LNG plantsand has eight production trains witha combined capacity of 25.7 million

tonnes per annum.

The Middle East was the centre ofmuch attention for BSWS duringFY2015. Firstly, BSWS completed a

remineralisation plant at the Rabigh IIPetrochemical Project in Saudi Arabia.

The Rabigh II Petrochemical Projectis owned by a domestic public-listedcompany with Saudi Aramco andSumitomo Chemical each owning37.5% of the shares. The project ispart of the petrochemical complex’sexpansion plans to process 30 millioncubic feet/day of ethane, 300,000tonnes per annum of ethylene andthree million tonnes per annumof naphtha, which will be used asfeedstock to produce a variety of highvalue-added petrochemical products.

Secondly, BSWS secured threenew contracts for the Saudi YanbuPower & Desalination Plant Phase 3.These include contracts to designand construct a demineralisationplant and wastewater treatmentplants for biological, chemical andoily wastewater. The 3,100MW powerplant will be one of Saudi Arabia’s firstsupercritical power plants to use heavyfuel oil as the main fuel source.

In FY2016, BSWS will remain focusedon pursuing opportunities within theAsia Pacific and Middle East, centredwithin the energy sector. BSWS isalso exploring detailed engineeringand material sourcing in regionalmarkets, with the intent to developnew technologies as substitutes toconventional water treatment systems.

Mini-Power Plants/Solid WasteEnergy Recovery PlantsDuring FY2015, Boustead sold theMaxitherm brand along with all of itsrelated intellectual property rights.

This marks the scaling down ofoperations in designing, engineeringand supplying mini-power plants, solidwaste energy recovery plants andassociated combustion technology.


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Market Sectors• Aerospace

• Commercial• Electronics• Food processing• High-tech manufacturing

• Lifestyle

• Logistics• Natural resources

• Pharmaceutical/healthcare• Precision engineering

• R&D

• Technology

Geographic Markets• South East Asia

Industrial LeaseholdPortfolio GFA(both completed andunder construction)*

199,698 sqm

Edward Boustead Centre, Singapore


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37.8

29.3

61.2

39.4



295.7

134.1

251.8

209.2

Division Contracts Secured (S$m)

S$284mYear-on-Yearp80%

142

246

163 158

255.4

33.4

284

FY11 FY12 FY13 FY14FY11 FY12 FY13 FY14 FY11 FY12 FY13 FY14FY15 FY15 FY15



34/172



For the eighth consecutive year,the Real Estate Solutions Division

(i.e. Boustead Projects Limited) toppedthe revenue contributors among thedivisions. Revenue climbed 22% toS$255.4 million, as more design-and-build revenue was generated.PBT declined 15% to S$33.4 million,mainly due to the absence of non-recurring gains, increase in overheadand other operating expenses,higher finance costs and negativeshare of results of an associatedcompany and joint ventures.

Boustead Projects is a leading

industrial real estate solutions providerin Singapore, with core engineeringexpertise in the design-and-build,and development of industrial facilitiesfor multinational corporations andlocal enterprises. To date, BousteadProjects has constructed anddeveloped more than 3,000,000square metres (“sqm”) of industrialreal estate regionally in Singapore,China, Malaysia and Vietnam. BousteadProjects is approved by the Building& Construction Authority (“BCA”) forGrade CW01-A1 and General BuilderClass One License to execute buildingconstruction contracts of unlimitedvalue.

Boustead Projects is a leader inpioneering advanced environmentally-sustainable facilities under the BCA’sGreen Mark Programme and U.S.Green Building Council’s Leadershipin Energy & Environmental Design(“LEED”) Programme. In Singapore,Boustead Projects is one of only10 bizSAFE Mentors and also a

bizSAFE Star.

FY2015 proved to be a continuation ofthe challenging business environmentin Singapore which has persisted overthe past three years. While the enquiry

pipeline was healthy, more intensecompetition and a shortage of foreign

labour persisted due to governmentpolicies that have tightened foreignworker quotas while simultaneouslyincreasing foreign worker leviesin a progressive manner over fourconsecutive years. Such measureshave put additional pressure onmargins across the entire real estateindustry.

Design-and-Build BusinessDesign-and-build revenue increasedto S$228.9 million, up 22% in FY2015.This was achieved through the

completion of Boustead Projects’largest ever design-and-build project,in addition to the progressive deliveryof several other design-and-buildprojects. However, design-and-buildPBT declined 30% to S$19.5 milliondue to additional pressure on marginsand the absence of a non-recurringgain in FY2015, whereas there was aS$5.3 million gain on disposal of assetsheld for sale in FY2014.

In FY2015, Boustead Projectscompleted eight design-and-buildprojects spanning across thecommercial, engineering, logistics,pharmaceutical, property andtechnology industries. BousteadProjects’ multi-disciplinary integratedin-house design and implementationcapabilities spanning the full lifecycleof industrial real estate projects enablesit to offer a more comprehensivesuite of solutions to better suit itsclient’s unique needs, deliveringquality at controlled costs.

Boustead Projects’ landmark deliveryof the year was clearly the SeagateSingapore Design Center –The Shugart located at Fusionopolis,one-north. Named after SeagateTechnology’s late founder, Alan Shugart,

The Shugart was completed in a record18 months with a nine-floor tower

adjoining a six-floor tower with threebasement carpark levels. The Shugartis an integrated design and R&D centrewith a focus on the development of2.5-inch small form-factor hard drives,hybrid drives, firmware, softwareand technologies. The Shugart willbe able to house more than 900Seagate Technology employees inSingapore. Adding onto the challengeof a tight project timeframe was theaim to achieve the highest levels ofeco-sustainability in The Shugart.The collection of environmental-friendly

features incorporated into The Shugarthelped it to clinch the Green MarkPlatinum Award.

Boustead Projects also designedand built the Boustead Group’s andSGX-listed Tat Hong Holdings Limited’snew headquarters, Edward BousteadCentre, a joint venture betweenBoustead Projects Limited andTat Hong Investments Pte Ltd.The 8,759 sqm Edward Boustead Centre,named as a tribute to the founder ofthe Boustead Group, was completedin just under 10 months, proving to beyet another testimony to BousteadProjects’ speed in delivering qualityindustrial facilities. Edward BousteadCentre is a benchmark showcase ofeco-sustainability in industrial facilities,having attained the Green MarkPlatinum Award for its green buildingfeatures. It is also an outstandingexample of the Boustead Group’sand Boustead Projects’ continuedcommitment to strong values insustainability.

Adding to Boustead Projects’ reputationas the builder of choice for Green MarkPlatinum-rated facilities in the logisticsindustry, it completed DB Schenker’slargest investment in the Asia Pacific.

MAJOR


IN FY2015

AUG 2014

Singapore

BDP established to develop andredevelop modern logistics andhigh quality industrial facilities


35/172


The integrated ramp-up logistics andoffi ce facility at Tampines LogisPark was

delivered in a short period of 16 monthsand achieved the Green Mark PlatinumAward. DB Schenker operates it as ashared logistics centre for its clientsin the automotive, electronics andhealthcare industries.

FY2015 also witnessed BousteadProjects capturing a record level ofnew contracts, with eight contractstotalling S$284 million in value.Starting the excellent run, BousteadProjects secured the Airbus AsiaTraining Centre (“AATC”), located

at the world-class 320-hectareSeletar Aerospace Park (“SA Park”)in Singapore. Following the award ofthe AATC, Boustead Projects was alsoawarded S$137 million in contractsin the food processing, logistics andrenewable energy industries. Furtherenhancing its excellent track record inthe logistics industry, Boustead Projectssecured Kuehne + Nagel’s advancedintegrated logistics and offi ce facility,which is earmarked to achieve boththe Green Mark Platinum Award andLEED Gold Award.

As part of business developmentefforts to expand regionally, BousteadProjects made headway in the newgeographic market of Malaysiawith its first construction contractsecured there for a medical devicemanufacturing facility at the KulimHi-Tech Park. This is the third projectthat Boustead Projects is undertakingfor a repeat client, a Fortune 500pharmaceutical corporation for whichit had previously completed two

projects in Singapore.

In FY2016, Boustead Projects willcontinue to target projects whichrequire high levels of technicalspecifications in higher value-added

OCT 2014

Singapore

S$137 million in design-and-buildcontracts for integrated foodprocessing, logis tics and offi cefacility; Kuehne + Nagel’s integratedlogist ics and offi ce facilit y; andwarehouse facility

OCT 2014

Malaysia

THAB’s offi cial sales launch of Phase 1of iBP @ Nusajaya in Iskandar Malaysia

OCT 2014

Singapore

S$20 million design-and-buildcontract for AATC at SA Park

Seagate Singapore Design Center – The Shugart, Singapore

DB Schenker Shared Logistics Center 3 (Tampines LogisPark), Singapore


36/172



industries including the aerospace,high-tech manufacturing, information

technology, media, pharmaceuticaland R&D industries. In order to reducereliance on foreign labour, efforts toexplore new construction methodologyand practices to increase productivityand quality have been ongoing forsome time. We will also be activelyreviewing overseas opportunities toexpand our regional footprint.

Leasing BusinessLeasing revenue came in at S$26.5million, rising 21%. Leasing PBT grewby 23% to S$13.9 million.

During the year, Boustead Projectsadded four newly completeddesign-build-and-lease projects tothe industrial leasehold portfolio*,increasing the completed portfolio byover 49,000 sqm. These projects areEdward Boustead Centre, ContinentalBuilding Phase 2, and industrialfacilities for Energy Alloys and MTU.

Continental Building Phase 2 is a4,936 sqm extension adjoiningthe existing Continental BuildingPhase 1 located at the Kallang iPark.The new wing consists of six floorsand is directly connected to Phase 1 atspecific floor levels, bringing the totalgross floor area of Continental Buildingto 16,186 sqm dedicated to R&Dactivities for automotive systems.

Energy Alloys’ manufacturing facilityis 10,523 sqm and hosts a full rangeof machining capabilities to processspecialised steel products fordistribution to the oil & gas industries in

the Asia Pacific. As part of its regionalexpansion plans, Energy Alloysrelocated its operations at two existingfacilities at Enterprise Road and TuasBay Drive to the new facility.

OCT 2014

Malaysia

S$43 million construction contractfor Fortune 500 pharmaceuticalcorporation’s medical devicemanufacturing facility at KulimHi-Tech Park

Perspective of Beijing Tongzhou Integrated Development, China

Perspective of iBP @ Nusajaya within SiLC, Malaysia



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At the end of FY2015, BousteadProjects completed MTU’s Asia Pacific

headquarters at the Tukang InnovationPark. The 24,800 sqm integratedmaintenance, repair and overhaul(“MRO”) service and training facilityhouses a regional service centre,training centre and workspaces forthe servicing and remanufacturing ofengines and propulsion systems forships, heavy land, rail and defencevehicles, and machinery used inthe oil & gas industries. The newheadquarters brings together over300 MTU employees in Singapore intoa single facility, consolidating business

functions including applicationengineering, distribution management,marketing and communications, andsales and service support.

As part of FY2016’s pipeline of newprojects which will eventually go intothe industrial leasehold portfolio,Boustead Projects secured twodevelopment projects under theBoustead Development Partnership(“BDP”) towards the end of FY2015.Boustead Projects will remain focusedon pursuing design-build-and-leaseopportunities for the industrialleasehold portfolio under the BDP,through reviewing opportunities forthe development or redevelopment ofprimarily single-user industrial facilitiesto increase its stream of recurringrental income.

Strategic PartnershipsBoustead Projects has put in placeseveral strategic partnerships andplatforms to enhance its competitiveposition and enter new geographic

markets and real estate sectorssuch as the commercial sector.These include the BDP and strategicpartnerships with AME ConstructionSdn Bhd, Tat Hong Holdings Limited

and CSC Holdings Limited, as wellas consortiums led by Perennial Real

Estate Holdings Limited.

In August 2014, Boustead Projectsestablished the BDP together witha reputable Middle East sovereignwealth fund. The BDP has a strategyto develop and redevelop modernlogistics and high quality industrialfacilities in Singapore, with a potentialtotal investment pipeline of overS$600 million with leverage. The BDPis also the proposed investor fordesign-build-and-lease, developmentand redevelopment projects secured

by Boustead Projects that meet theBDP’s investment criteria. The BDPeffectively commenced developmentactivities by capturing its first twodevelopments in March 2015. In itsinaugural development, the BDPwas appointed as the developer forGlaxoSmithKline’s (“GSK”) new globalheadquarters for Asia. The seconddevelopment secured by the BDP is anintegrated MRO hangar and mezzanineoffice facility for a leading Europeanaerospace corporation.

Following Boustead Projects’ entry intoa joint venture, THAB DevelopmentSdn Bhd (“THAB”), with AMEConstruction Sdn Bhd, SGX-listedTat Hong Holdings Limited and SGX-listed CSC Holdings Limited in 2013to develop 120,000 sqm of primeindustrial land in the Southern Industrial& Logistics Clusters (“SiLC”) in IskandarMalaysia, the four partners officiallylaunched Phase 1 of iBP @ Nusajaya,a premier freehold business parkin October 2014. Offering 50 units

out of a total 100 units of flexibly-designed detached and semi-detachedmodern factories, Phase 1 received100% commitment on the officialsales launch day. Boustead Projects

owns 35% of iBP @ Nusajaya whichis expected to yield 85,750 sqm of

saleable area.

In China and Singapore, BousteadProjects is a partner in consortiumswhich are led by SGX-listed PerennialReal Estate Holdings Limited. BousteadProjects has a 4% stake in Phase 1of the Beijing Tongzhou IntegratedDevelopment, a mixed-use GradeA iconic landmark currently underdevelopment in Beijing Tongzhou’sCentral Business District and frontingthe famous Grand Canal. Phase 1of the Beijing Tongzhou Integrated

Development is a proposed 422,000sqm commercial complex comprisinga five-level retail podium and threetowers of office and residential space.In January 2014, Boustead Projectsinvested S$18 million for a 5.5% stakein a consortium which purchasedTripleOne Somerset, a Grade Aproperty strategically locatedwithin the Central Business Districtand prime Orchard precinct inSingapore. The 71,215 sqm TripleOneSomerset comprises a two-level retailpodium with 17 levels of office space.The TripleOne Somerset consortiumis considering an asset enhancementinitiative estimated to be S$150 million.Boustead Projects is bidding for theasset enhancement initiative andintends to expand its presence in thecommercial sector.

Boustead Projects aims to extendits strategic partnerships in SouthEast Asia, to establish a footholdin new geographic markets andreal estate sectors by leveraging

on the experience and knowledgeof its partners while providing itscomprehensive suite of solutions.

MAR 2015

Singapore

BDP’s development for GSK’s globalheadquarters for Asia – inauguralproject for BDP

MAR 2015

Singapore

BDP’s development for Europeanaerospace corporation’s integratedMRO hangar and mezzanine officefacility

APR 2015 POSTFY2015

Singapore

Successful demerger and separatelisting of Boustead Projects Limitedon Main Board of SGX


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GEOSPATIALTECHNOLOGY


Market Sectors• Education• Environmental management• Finance• Healthcare• Homeland security• Infrastructure• Insurance• Logistics

• National security• Natural resources• Public safety and emergency services• Retail• Utilities

Geographic Markets• Australia• South East Asia

URA demonstrating 3D urban planning at Esri International User Conference 2014, U.S.


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23.8

26.9

29.7



94.7

108.2114.4

106.9

25.2

110.6

22.7

FY11 FY12 FY13 FY14FY11 FY12 FY13 FY14 FY15 FY15


40/172


GEO-SPATIALTECHNOLOGY

The Geo-Spatial Technology Divisionachieved revenue of S$110.6 million,

an increase of 3%. This marked thedivision’s second highest revenueperformance despite the adverseimpact of currency headwinds.PBT declined by 10% to S$22.7 millionas a result of margin pressure causedby the weaker AUD against SGDexchange rate and an impairment ofgoodwill on a subsidiary, MapDataServices. Nonetheless, demand for Esrigeo-spatial technology remained firmacross Australia and South East Asia.

The key companies in this division,

Esri Australia and Esri South Asia(comprising Esri Singapore,Esri Malaysia and Esri Indonesia)provide professional services and areexclusive distributors of Esri geo-spatialtechnology – the world’s leadinggeographic information systems (“GIS”)– to major market sectors across theregion. The division’s GIS technologyplatform and professional services areused by over 13,000 organisations toeffectively plan, deploy and managekey infrastructure and resources.The division is consistently rankedamong the top five distributors inEsri Inc’s global network.

During FY2015, two major events tookplace which spurred the activities of thedivision regionally.

Firstly, ArcGIS 10.3, the most significantupdate to Esri’s ArcGIS platform inrecent years was launched in themarket and was well received bycommercial and government clients.Highlights of ArcGIS 10.3 include

the ability for users to easily make,share and analyse 2D, 3D and real-timesmart maps, meaning organisationscan now quickly create and distributelive information on smart maps,

perform advanced analysis of currentsituations and predict future scenarios.

In addition, ArcGIS 10.3 is accompaniedby a host of new applications, includingArcGIS Pro, which is designed to furtherexpand the use of the technologythroughout existing client sites.

Secondly, further global GIS marketconsolidation took place followingGoogle’s withdrawal from the deliveryof enterprise GIS. Regionally, thedivision together with Esri Inc, has beenworking closely with Google to helptransition Google Earth Enterprise andGoogle Maps Engine customers to the

Esri ArcGIS platform. The division willcontinue to work with Google to delivercontinuity of service to relevant Googlecustomers looking to transition.

AustraliaIn FY2015, Esri Australia continuedto be the largest contributor to thedivision’s revenue and PBT. A rise inthe uptake of enterprise agreements(“EAs”) – a flexible client engagementframework that provides organisationswith additional support to help themrealise the full value of their technologyinvestments – was attributed to newclients from local government groupsand the award of the largest contractin Esri Australia’s history by Australia’sDepartment of Defence (“Defence”).At the same time, demand for moreflexible technology delivery methodssaw a significant surge in the uptakeof expanded Software as a Service(“SaaS”) offering, including hosted andonline GIS solutions, hence resultingin 113% growth in the SaaS revenuestream. Core revenue streams for

professional services and after-salesmaintenance also did well, with EsriAustralia placing an emphasis onbuilding recurring annuity revenueswhich help clients through the entire

lifecycle of a project instead of one-offengagements, thus providing a strong

base for growth in future years.

In a landmark deal, Esri Australiasecured the largest contract in itsand the division’s history – a three-year A$16.5 million contract withDefence. Leveraging on both local andinternational expertise, Esri Australiawill play a strategic role in supportingDefence in the creation of anenterprise-wide GIS. The partnershipwill deliver advanced geo-spatial andmapping capabilities across Defence,facilitating greater collaboration,

quicker analysis, more robust planningand superior decision making formore than 65,000 military and civilianpersonnel with access across theentire Defence enterprise at fixed anddeployed locations globally.

As cloud-based solutions continueto gain in popularity, the past yearalso saw the open data movementgain momentum on both a global andnational scale, with the need for betteraccess to content high on the agendafor government and industry bodies.Esri Australia provided the platform forthe Open Data Institute of Queenslandto develop an open data portal –a first for Australia – which providesfree access to more than 10,000high-quality datasets. The system isexpected to serve as a benchmark forother national government agenciesthat are looking to establish open datamanagement frameworks.

SaaS offerings and cloud-basedGIS services remained a relevant

area of growth for Esri Australia,with an expansion in ArcGIS Onlinedeployments. For instance, Tasmania’sLaunceston City Council implementedan ArcGIS Online solution to share its

MAJOR


IN FY2015

JUL 2014

Australia

Cross-industries

Esri Australia awarded GlobalMarketing Award by Esri Inc


41/172


vast reservoirs of spatial datawith residents and businesses

available 24-hours-a-day. The council’sonline portal contains interactivesmart maps layered with a range ofdata, including planning schemes,flood information and details on localfacilities and services.

In another notable ArcGIS Onlinedeployment, the New South WalesLand & Property Information(“NSW LPI”) implemented a smarterscheduling system that enablesgovernment agencies, utilities andcouncils to coordinate infrastructure

maintenance and construction acrossthe state. With the ability to alert thevarious groups of opportunities tostreamline the road maintenanceschedule, the cloud-based solutionprovides NSW LPI with the mostefficient infrastructure coordinationcapability in Australia. Elsewhere,the Australian Rail Track Corporation,Essential Energy, Insurance Council ofAustralia, Queensland Urban Utilitiesand Western Australia Department ofFisheries also took up SaaS projectsto manage various aspects of theiroperations.

As in previous years, Esri Australiacontinued to consolidate itspresence in the natural resources,telecommunications and utilitiesmarkets. Major GIS implementationswere concluded for Amcom, QGC,Queensland Urban Utilities, Roy Hilland Telstra. As one of Australia’s mostprominent natural gas producers,QGC carried out a real-time GIS projectto optimise its workplace health and

safety practices. The solution leveragesEsri’s GeoEvent Extension for Serverto consolidate real-time data feedsabout the location of QGC personneland alarm or threat information,

OCT 2014

Malaysia

Government

Esri Malaysia signed MOU withMIMOS to support Open InnovationPlatform

Guardian Evacuations app displaying nearby evacuation centres, Australia

QGC GIS platform for real-time overview of safety operations, Australia

JUL 2014

Australia, Indonesia, Malaysia, Singapore

Cross-industries

South Australia Department of Communities & SocialInclusion, Queensland Department of Natural Resources& Mines, Singapore Land Authority, JUPEM’s BGSP andPertamina awarded SAG Awards by Esri Inc


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providing safety and security teamswith a real-time overview of QGC’s

operations. This first-of-its-kind solutioncan pinpoint the location of staff duringa crisis such as a flood or fire withinseconds and is expected to serve asa benchmark for other organisationsacross the region.

In another milestone project centredon safety, Esri Australia worked closelywith partners, GP One Consultingand QIT Plus to develop the GuardianEvacuations app – winner of the GlobalDisaster Resilience App Challengeorganised by the United Nations Office

for Disaster Risk Reduction andEsri Inc. Powered by Esri technology,the app links people fleeing fromnatural disasters with nearbyevacuation centres through its smartmapping interface that displays centrelocations and details, as well as real-time traffic, weather, flood and fireinformation to help citizens determinethe safest routes during a disaster.The app is expected to be rolled outto councils across the country overthe coming year and offered free tothe public.

New technology advancementsaccompanying the release of ArcGIS10.3 have helped to position the EsriArcGIS platform as a business-criticalsystem which can be embedded intoclients’ existing business databasesand enterprise resource planningsystems. Esri Australia partnered withWestern Australia Department ofTraining & Workforce Developmentto commence the delivery of an EsriMaps for Cognos solution, which will

ultimately be used to provide vitalupdates to state ministers and seniorgovernment personnel.

Iskandar Malaysia GeoSpatial Platform, Malaysia

URA 3D mapping with CityEngine, Singapore


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festival celebrating maps and mapping.The Esri-driven application was

well-received by senior governmentofficials and thousands of membersof the public.

FY2015 also saw a new EA signedwith the Singapore Police Forceand the Ministry of Home Affairs,and continuous involvement in test-bedpartnerships with the Safety & SecurityIndustry Programme Office. This sets astrong foundation for continued growthin the national security sector in thecoming year.

Meanwhile, mobile GIS deploymentscontinued to be a key area of growth.The Public Utilities Board (“PUB”)rolled out a mobile solution for itsasset management processes usingEsri technology. PUB equipped itsfield force with mobile devices andlightweight applications to inspectwater assets, providing its workforcewith access to real-time informationand greater situational awareness ondaily operations.

Along with the URA, Esri technologyhas been a vital platform that isused by other key government landagencies, JTC Corporation (“JTC”) andthe Singapore Land Authority (“SLA”).JTC, the lead agency responsiblefor spearheading the planning anddevelopment of Singapore’s industriallandscape is using Esri technology todevelop a GIS platform that will helpJTC to better understand the yield ofits assets across the island.

Efforts to raise public awareness on

the benefits of geo-spatial technologycontinued well into its seventh year,with strong support from the SLA.As an annual tradition, SLA heldthe Spatial Challenge, a national

competition that encourages theinnovative use of GIS in Singapore’s

schools. Supported by the Ministryof Education, the Spatial Challengeoffers students hands-on experiencein using Esri technology to developsmart solutions that address real-worldchallenges.

Announced in November 2014,Singapore is building the world’s firstSmart Nation by making full use oftoday’s state-of-the-art technologiesto support better living, create moreopportunities and establish strongercommunities. Part of this move is to

leverage 3D smart mapping technologyto create a 3D map of Singaporethat would facilitate greater citizenengagement through crowdsourcingand enable the government to ensureongoing developments can meet theneeds of citizens now and in the future.

Aligning with the intentions of theSmart Nation Programme, Bousteadtogether with Esri Singapore recentlyprovided S$200,000 in seed fundingfor the establishment of a CommunityAnalytics Development Programme(“CADP”) jointly with the Institute ofSocial Analytics & Research at theNational University of Singapore(“NUS”). The CADP will focus on thegrowing field of community analytics– a system of community-based toolsand information portals to promotecommunity integration and socialcohesion. The CADP will be able tosupport teaching modules at NUSand other community engagementprogrammes by students at NUS.

FY2016 will see attention focusedon the Singapore Government’sSmart Nation Programme, where Esritechnology has been readily identifiedas a key platform.

Going forward in FY2016, businessdevelopment efforts will be targeted

towards the utilities, national security,retail and insurance sectors, whichwill see GIS technology being morewidely deployed. Esri Australia will alsolook to strengthen alliances with majortechnology partners including IBM,Microsoft and SAP, and the Big Fourconsultancy firms being Deloitte, Ernst& Young, KPMG and PWC, to furthersupport clients in their operations.The accelerated uptake of EAs andafter-sales maintenance agreementswill be underpinned by the broadenedservice offerings Esri Australia is

incorporating into these agreements,including enhanced applicationsupport, cloud-based ArcGIS Onlineand SaaS which will continue to makeGIS more accessible to the market.

SingaporeIn FY2015, Esri Singapore workedclosely with an increasing number ofgovernment agencies to support theirtechnology platforms.

After signing a memorandum ofunderstanding (“MOU”) with the UrbanRedevelopment Authority (“URA”) inFY2014, Esri Singapore supported theURA with its development of a smart3D mapping tool enabling Singapore’surban planners to carry out large-scale town planning simulations moreefficiently. In July 2014, this relationshipreceived international attention whenthe URA presented their world-leading3D GIS capabilities and plans forSingapore’s future to more than 15,000industry experts at the Esri InternationalUser Conference 2014.

Separately, Esri Singapore collaboratedwith the URA and the National LibraryBoard (“NLB”) to deliver the first-of-its-kind mapping exhibit as part of NLB’s

JAN 2015

Malaysia

Government

Esri Malaysia partnered JUPEM’sBGSP and MAF to develop uGEOfor Defence Programme

DEC 2014

Australia

Government

Esri Australia provided GIS platformfor Open Data Institute of Queenslandto develop open data portal –Australia’s first

NOV 2014

Australia

Government

Esri Australia awarded A$16.5 millionlandmark contract by Defence –largest in history


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the government’s data managementagenda through actively supporting

the first phase implementation of theNational Spatial Data Infrastructure(“Ina-SDI”). Esri Indonesia expectsto increase its involvement as theIna-SDI enters its second phaseduring FY2016 and beyond.

Moving from the national level tothe capital, Jakarta, Esri technologywas used to record and analyse dataregarding distribution of flood points,floodwater levels, refugee numbersand evacuation points as part of anew flood management system for

the Jakarta Disaster ManagementAgency.

During the year, some of EsriIndonesia’s largest businessopportunities emerged from thenatural resources sector. Amongthese were projects undertaken forthe Ministry of Energy & MineralResources, Pertamina Geothermal,as well as the development of anenterprise-wide GIS for PT FreeportIndonesia, the country’s largest miningcompany. The platform developedincorporates mobile technologiesand other GIS applications to providethe organisation with advanceddata visualisation and real-time datamonitoring and analysis capabilities.

Positioning a long-term GIS tertiaryeducation programme, Esri Indonesiasigned agreements with eight leadinguniversities in Indonesia to incorporateGIS as a critical component of thecountry’s education curriculum andgroom future GIS professionals.

These educational partnerships willposition Esri’s technology as key toIndonesia’s rapid development andequip undergraduates with technicalknowledge that is in demand withinthe country’s job market.

R&D efforts in the field of nationalsecurity to new heights. The MOU aims

to support MIMOS’ Open InnovationPlatform, which involves collaborativeengagements with governmentagencies including the Royal MalaysiaPolice, Ministry of Health, ImmigrationDepartment, Ministry of Defence,Performance Management & DeliveryUnit and JUPEM. The partnershipmarks an important chapter inEsri Malaysia’s contribution to thecountry, strengthening its defenceand security agencies with readilyaccessible location-based technology.

Esri Malaysia also delivered anadvanced mapping platform for theIskandar Regional DevelopmentAuthority (“IRDA”) that is capable ofintegrating and analysing data frommultiple business systems to enableurban planners, economic managersand other key decision makers todesign and transform Iskandar intoa world-class metropolis by 2025.The solution helps IRDA personnelto make up-to-the-minute strategicdecisions to ensure that potentialinvestments do not erode theattractiveness of the region’senvironment or upset its socialcommunities. GIS has also helpedto address one of the IRDA’s biggestchallenges – capturing, storing andcrunching a large volume of big dataand translating this into meaningfulinformation about activities in andabout Iskandar.

IndonesiaIn FY2015, Esri Indonesia focusedefforts on establishing strong

operational foundations and aneffective framework that can scale toaccommodate growth expected infuture years. Esri Indonesia’s efforts tobe part of the drive for greater accessto GIS content is strongly aligned with

MalaysiaFY2015 was a breakthrough year

for Esri Malaysia, with Esri Malaysiaenjoying the greatest revenue growthby percentage terms within thedivision, contributed by successfulengagements in the national mapping,national security and natural resourcessectors. Esri Malaysia successfullydeveloped the uGEO for DefenceProgramme for the Department ofSurvey and Mapping Malaysia’s(“JUPEM”) Defence Geospatial Division(“BGSP”) to support the MalaysianArmed Forces’ (“MAF”) mission-criticaloperations with seamless access to

accurate and authoritative geo-spatialdata on demand.

Esri Malaysia was also involvedin numerous high-profile GISdeployments throughout the year,providing key GIS support to the BGSPduring search and rescue operationsfor flights MH370 and MH17. In theimmediate aftermath of the MH17disaster, ArcGIS Online was used togenerate an operational dashboardof the crisis, providing importantinformation for government agenciesand other stakeholders involvedin response and recovery efforts.Sister companies, Esri Malaysia andEsri Australia, were heavily involvedin providing GIS support to theirrespective governments in searchplanning and operations for themissing MH370 in the Indian Ocean.

Similar to Singapore, Esri Malaysiastrengthened partnerships with keyMalaysian government agencies.An MOU was signed between Esri

Malaysia and MIMOS – the nationalR&D centre in information andcommunications technology underthe purview of the Ministry of Science,Technology & Innovation – which isanticipated to bring the government’s


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Regional AccoladesFY2015 continued to be a year where

the division and its clients wererecognised for their achievements.

As well as the Guardian Evacuationsapp being globally recognised bythe United Nations, several of thedivision’s key clients receivedSpecial Achievements in GIS (“SAG”)Awards at the Esri International UserConference 2014. Client recipientsof SAG Awards include the SouthAustralia Department of Communities& Social Inclusion, QueenslandDepartment of Natural Resources

& Mines, Singapore Land Authority,JUPEM’s BGSP and Pertamina.

On the operational front, Esri Australiareceived the Global MarketingAward from Esri Inc, placing EsriAustralia ahead of more than 80 otherdistributors worldwide. The awardrecognises the success of a numberof major marketing initiatives,including the delivery of a landmarkapplication with a national newsbroadcaster during Australia’s 2013Federal Election.

Esri Australia was furtheracknowledged for its efforts in thenational security sector after beingshortlisted in the Land DefenceAustralia Limited Innovation Awardsfor developing an intelligence analysisplatform for Defence togetherwith technology partners, IBM andClavinger.

Hand-in-hand with its clients andbusiness partners, the Geo-Spatial

Technology Division continues itsmarch towards becoming the largestand most influential GIS player in theAsia Pacific.

PT Freeport enterprise-wide GIS for mining operations, Indonesia

Jakarta Disaster Management Agency flood map, Indonesia


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BOARD OFDIRECTORS

Wong Fong FuiChairman &

Group Chief Executive Offi cer• Member, Nominating CommitteeBachelor of Engineering (Chemical Engineering), University of New South WalesHonorary PhD (Business), University of New South Wales

Mr Wong was appointed as theChairman and Group Chief ExecutiveOffi cer in April 1996. He began hiscareer as a chemical engineer in theoil & gas industries and subsequentlyco-founded various engineering andconstruction companies. Prior to

joining the Boustead Group, he wasthe Group Managing Director of QAFLimited, a food manufacturing andretail company which he succeededin turning around. He was alsoinstrumental in the start-up andprivatisation of Myanmar AirwaysInternational. An entrepreneur withproven success in diverse fields,his interests have expanded to includecommercial aviation, education, foodmanufacturing and retail, informationtechnology and telecommunications.

In April 2009, Mr Wong received theChief Executive Offi cer of the Year2008 Award (market capitalisation ofS$300 million to less than S$1 billion)at the Singapore Corporate Awards.He was also appointed by the Ministryof Finance to sit as Co-Chairmanfor the Land Sub-Committee of theEconomic Strategies Committee. InNovember 2014, Mr Wong receivedan Honorary Doctor of Businessfrom his alma mater, the Universityof New South Wales. More recently,he was recognised by the Singapore

Chinese Chamber of Commerce &Industry with the SG50 OutstandingChinese Business Pioneers Award andbecame a Co-Opt

Documents

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