CREATING A SUSTAINABLE FUTURE. Harnessing the Power Of One ANNUAL REPORT 2015/2016

Transcription

1 CREATING A SUSTAINABLE FUTURE Harnessing the Power Of One ANNUAL REPORT 2015/2016

2 CONTENTS LEVERAGING STRONG FOUNDATIONS Group Overview 4 Corporate Profile 6 Our Presence and Key Figures 8 Highlights for FY15/16 10 Awards and Accolades CONSOLIDATING OUR STRENGTHS Harnessing the Power of One 14 Chairman s Message 17 Interview with the Group CEO Governance and Transparency 20 Board of Directors 27 Senior Leadership Team 28 Corporate Information 29 Corporate Governance 35 Enterprise Risk Management ACHIEVING STEADY GROWTH ENABLING SUSTAINABLE DEVELOPMENT Left : Galaxis at Fusionopolis, one-north, Singapore Above : Ascent, Singapore Science Park Group Highlights 38 Financial Review 41 Treasury Highlights 44 Business Review 45 Funds Management 48 Country Operations Singapore China India Korea Southeast Asia 57 Portfolio Details Sustainability Review 62 About the Report 64 Strong Partnerships 64 Corporate Governance and Compliance 65 Product Responsibility 71 Environment 74 People Development 78 Enriching Lives in Communities 79 Global Reporting Initiative (GRI) Content Index For In Accordance Core Option A PDF version of the full Annual Report and Financial Statements is available for download from our website: ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/2016 1

3 S$21.6b 20% JONGRO PLACE, SEOUL, SOUTH KOREA ASSETS UNDER MANAGEMENT (AUM) APPROXIMATE GROWTH IN AUM ASCENDAS ONEHUB GKC, GUANGZHOU, CHINA LEVERAGING STRONG FOUNDATIONS Bringing together the expertise, customer base, capital resources and global connections of two leading companies, Ascendas- Singbridge provides bestin-class urban and business space solutions that catalyse economic and social development. 2 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/2016 3

4 GALAXIS, SINGAPORE CORPORATE PROFILE INTERNATIONAL TECH PARK CHENNAI, INDIA DALIAN ASCENDAS IT PARK, CHINA Ascendas-Singbridge (the Group ) was formed through the merger between Ascendas, Asia s leading business space solutions provider, and Singbridge, a major player in large-scale integrated sustainable developments. Jointly owned by Temasek and JTC Corporation (JTC) through a 51:49 partnership, Ascendas-Singbridge is the asset and investment holding arm of the integrated urban solutions platform created by Temasek and JTC to capitalise on urbanisation trends in the region. From our base in Singapore, we have established a pan- Asia presence, serving a global clientele of more than 2,600 customers in 29 cities across 10 countries including Singapore, China, India, South Korea, Japan, Australia and Southeast Asia. Leveraging Singapore s successful development experience, Ascendas-Singbridge brings the combined capabilities in upstream and downstream activities to its projects, building value-adding environments that will create employment opportunities, spur population growth, and catalyse urban development that cater to the evolving needs of the local communities. These include feasibility studies, design and master planning, real estate and infrastructure development, facilities and estate management, as well as property and fund investments to offer a comprehensive end-to-end urban development value chain. Our track record originates from the development of Science and Business Parks in Singapore to drive the country s transformation from a labour-intensive to knowledge-based economy. Similarly, we brought the Singapore experience to the region, pioneering India s first work-live-play IT park concept with International Tech Park Bangalore in 1994, and the ready-built facilities concept with Ascendas-Xinsu in Suzhou Industrial Park in Today, Ascendas-Singbridge has an extensive portfolio of business space solutions, with Assets Under Management (AUM) of S$21.6 billion (approximately US$15.8 billion). This includes iconic developments such as Changi City at Changi Business Park in Singapore, International Tech Park Chennai in India, Dalian Ascendas IT Park in China as well as large-scale development projects such as Sino-Singapore Guangzhou Knowledge City and Sino-Singapore Jilin Food Zone in China. Beyond business space solutions, the Group has deep capabilities in real estate fund management with three successful listed trusts, namely the Ascendas REIT (A-REIT), Ascendas India Trust (a-itrust) and Ascendas Hospitality Trust (A-HTRUST). In addition, the Group s fund management business comprises 11 private real estate funds investing in a diverse range of industrial and commercial real estate assets across Asia. Bringing together the expertise, customer base, capital resources and global connections of two leading companies, Ascendas-Singbridge possesses the scale and experience to participate in largescale, complex urban development projects, providing best-in-class urban and business space solutions that are tailored to drive economic and social development. 4 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/2016 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/2016 5

5 Jilin Beijing Dalian OUR PRESENCE Chengdu Xi'an Chongqing CHINA Tianjin Suzhou Hangzhou KOREA Seoul JAPAN Tokyo Osaka Shanghai KEY FIGURES INDIA Gurgaon VIETNAM Ho Chi Minh City Guangzhou Pune Bangalore Coimbatore Hyderabad Chennai 29 CITIES ACROSS 10 COUNTRIES MALAYSIA Johor SINGAPORE Jakarta INDONESIA PHILIPPINES Manila S$701 MILLION EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION TOTAL ASSETS UNDER MANAGEMENT (AUM) AT 31 MARCH 2016 S$21.6 BILLION $ S$290 MILLION PROFIT AFTER TAX AND MINORITY INTERESTS GLOBAL CLIENTELE >2,600 CUSTOMERS Perth AUSTRALIA Melbourne Sydney Brisbane 22.2% RETURN ON EQUITY TOTAL REVENUE UNDER MANAGEMENT AT 31 MARCH 2016 S$1.9 BILLION 6.2% RETURN ON CAPITAL EMPLOYED >1,200 EMPLOYEES 6 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/2016 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/2016 7

6 HIGHLIGHTS FOR FY15/16 NOV 2015 DEC 2015 APR 2015 Ascendas China Business Parks Fund 4 launched The S$333-million fund invests in a portfolio of premium business park assets in Shanghai, Suzhou and Xi an. It comprises completed properties such as Ascendas Lotus Business Park in Zhangjiang, Shanghai; Ascendas-Xinsu in Suzhou; and Ascendas Innovation Towers, a development project in Xi an. MAY 2015 Ascendas and Metland Karyadeka to jointly develop OneHub Puri in Greater Jakarta Ascendas first development project in Indonesia, the 9.7-hectare mixeduse development will comprise offices, apartments, retail and supporting amenities. JUN 2015 Ascendas and Singbridge complete merger Through the merger, Ascendas- Singbridge combines the synergistic capabilities, deep bench strength and strong track record of both companies to originate, aggregate and provide urban and business space solutions across multiple geographies. Ascendas-Singbridge and China Machinery Engineering Corporation (CMEC) enters strategic collaboration Ascendas-Singbridge and CMEC entered a strategic collaboration in industrial / business park investments and developments across Asia. Both companies will jointly explore opportunities in key Asian countries under China s One Belt One Road initiative. These include China, India, Vietnam, Indonesia and Malaysia. Ascendas-Singbridge awarded tender for CPF Building Ascendas-Singbridge won the tender for 79 Robinson Road (also known as CPF Building) by a narrow 2%-margin at S$550 million, to redevelop the building into a Grade-A central business district (CBD) office building with supporting retail elements. The win marked the Group s first foray into the Grade-A CBD office market in Singapore. Ascendas REIT completes Australian logistics portfolio acquisition Ascendas REIT completed its maiden acquisition of 26 logistics properties in Australia for AUD1,013 million. The acquisition established Ascendas-Singbridge as the 8th largest industrial landlord in Australia. Ascendas Hospitality Trust acquires Aurora Melbourne Central s Serviced Apartments The Trust signed an agreement with UEM Sunrise Berhad to acquire the 252-unit serviced apartments component of the La Trobe Street mixed-use development, Aurora Melbourne Central, for AUD120 million. Ascendas-Singbridge unveils newly redeveloped Ascendas Xinsu Square The refreshed Ascendas Xinsu Square, comprising six multi-tenanted buildings that provide premium business park space, was unveiled in an event that celebrated Ascendas China s 20th Anniversary and Ascendas- Singbridge s launch in China. Fifth private real estate fund launched in South Korea Named Ascendas Korea Office Private Real Estate Investment Trust 3 (AKOPREIT 3), the seven-year closed private fund acquired Jongro Place, a Grade-A office building located in the CBD of Seoul, South Korea, for about S$290 million. JUL 2015 OCT 2015 JAN 2016 MAR 2016 Nusajaya Tech Park partners Mitsui to offer build-to-suit developments in Malaysia 10.7 hectares of land will be set aside for build-to-suit facilities for lease in Nusajaya Tech Park. Besides offering customised facilities on long-term leases, the joint venture will oversee and finance the entire real estate process for customers. Ascendas India Trust completes acquisition of avance 3 in Hyderabad A quality multi-tenanted IT building with a total floor area of 63,000 sq m, avance 3 was acquired for INR 2.9 billion 1 (S$63 million) 2. Singapore Centre officially opens at Sino- Singapore Guangzhou Knowledge City Located within Ascendas OneHub GKC, the Singapore Centre will provide a one-stop service platform to assist Singapore-based companies investing in China. OneHub Saigon breaks ground in Ho Chi Minh City A joint venture development by Ascendas and Saigon Bund Capital Partners, the 12-hectare integrated business park development is located at Saigon Hi-Tech Park in Ho Chi Minh City, Vietnam. 1 Excludes transaction expenses (acquisition fee payable to the Trustee-Manager, stamp duty, professional and other fees, and acquisition expenses) and subject to working capital adjustment and debt assumed based on the balance sheet of Phoenix Hitec City Pvt Ltd (being the vehicle holding avance 3) on completion of the transaction. 2 Based on the exchange rate of S$1 to INR Sino-Singapore Jilin Food Zone s launch product arrives in Singapore Fragrance 43 N japonica rice, the first Sino-Singapore Jilin Food Zonebranded product, was launched to the Singapore consumer market. Cultivated in Jilin, Northeast China, Fragrance 43 N s high-quality japonica rice is harvested and packaged through processes that integrate Singapore s food safety standards and experience. Ascendas India Trust acquires additional building in CyberVale, Chennai The acquisition of a 26,000-sq m building in CyberVale was completed, at an estimated total acquisition cost of about INR 0.8 billion (S$15 million 3 ), after including fees and other expenses. Hotel Sunroute Osaka Namba reopens after JPY 1.1 billion refurbishment Ascendas Hospitality Trust unveiled the refurbished Hotel Sunroute Osaka Namba 4, which reopened on 1 April 2016, following a JPY1.1 billion makeover. Ascendas-Singbridge acquires 100 Arthur Street, North Sydney Acquired for about S$324 million, the A-Grade commercial building was renamed Ascendas Innovation Place and heralds Ascendas- Singbridge's entry into the commercial office sector in Australia. 3 Based on exchange rate of S$1 to INR The Hotel, renamed Hotel Sunroute Osaka Namba as at 1 January 2016, was previously known as Osaka Namba Washington Hotel Plaza 8 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/2016 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/2016 9

7 AWARDS AND ACCOLADES CORPORATE GOVERNANCE AND TRANSPARENCY ENVIRONMENT QUALITY CORPORATE SOCIAL RESPONSIBILITY Corporate Governance Awards 2015 Ascendas REIT was the winner of the Most Transparent Company Award (REITs & Business Trusts Category) at the 2015 Securities Investors Association of Singapore (SIAS) Investors Choice Awards. The Trust was also named the Runner-up in the REITs & Business Trusts Category for the Singapore Corporate Governance Awards BUSINESS EXCELLENCE Top 100 Singapore Brands 2015 Ascendas REIT was named one of the Top 100 Singapore Brands of 2015 by Brand Finance, at an improved ranking at 39 as compared to 54 in Top 10 Successful ASEAN Enterprises in China Ascendas-Singbridge was recognised as one of the Top 10 Successful ASEAN Enterprises in China in The award was conferred by China-ASEAN Business Council. BCA Green Mark Awards Ascendas-Singbridge received the following awards from Singapore's Building & Construction Authority (BCA) DNV GL Technology Centre - Green Mark (Pearl) Certification ONE@Changi City - Green Mark (Pearl) Certification Ascent building in Singapore Science Park - Green Mark (Platinum) Certification USGBC LEED Certification The following Leadership in Energy & Environmental Design (LEED) certifications were received from the US Green Building Council (USGBC) Dalian Ascendas IT Park in China USGBC LEED Silver (Core and Shell) for Phase 5 development International Tech Park Bangalore in India USGBC LEED Gold for Discoverer, Innovator and Creator buildings IGBC Awards The following awards were received from the India Green Building Council (IGBC): The V, Hyderabad - IGBC Green Building (Platinum) for Auriga, Capella, Mariner, Orion and Vega buildings International Tech Park Bangalore - IGBC Gold for Explorer, Inventor and Navigator buildings. Excellence in Energy Management 2015 The V, Hyderabad was awarded Excellent Energy Efficient Unit by the Confederation of Indian Industry (CII) for Excellence in Energy Management (2015). Garden Awards 2015 International Tech Park Pune received the First Prize in the Garden Award from the Pune Municipal Corporation, Horticulture Division. In Hyderabad, The V was conferred Runner-up in the Landscaped Gardens Maintained by Private Companies / IT Parks category by the Department of Horticulture, Government of Telangana, at the Garden Festival Awards ONE@CHANGI CITY, SINGAPORE Property Awards 2015 International Tech Park Pune in India won the IT Park Project of the Year award at the NDTV Property Awards The Park was also recognised as a Runner-up under the Non- Residential Property of the Year at the Asian Customer Engagement Forum (ACEF) Property Awards. Xi an Hi-tech Zone 2015 Major Development Award The award was conferred upon Ascendas Innovation Towers, located in the Software New City within Xi an Hi-tech Zone in China. Ascendas Innovation Towers comprises two 23-storey research and development (R&D) tower blocks and one standalone R&D villa, providing a total gross floor area of 120,000 sq m. Most Preferred Real Estate Award Central Park, a residential development within Ascendas OneHub GKC in Sino-Singapore Guangzhou Knowledge City in China, won the Most Preferred Real Estate award conferred by Guangzhou Yang Cheng Metro Newspaper. The development was also conferred the 2015 Quality Life Award by Sino Leju. Patron of the Arts Awards 2015 Ascendas-Singbridge received the Associate of the Arts Award from the Singapore National Arts Council. ASCENDAS INNOVATION TOWERS, XI'AN, CHINA 10 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/2016 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/

8 As a unified entity leveraging Singapore's experience, Ascendas-Singbridge brings the combined capabilities in project origination, investment promotion, asset development and township management to contribute and capitalise on the urbanisation megatrend. CONSOLIDATING OUR S$290m S$1.9b STRENGTHS PROFIT AFTER TAX & MINORITY INTERESTS TOTAL REVENUE UNDER MANAGEMENT $ SINO-SINGAPORE GUANGZHOU KNOWLEDGE CITY, CHINA 12 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/

9 CHAIRMAN S MESSAGE WONG KAN SENG CHAIRMAN HARNESSING T H E P O W E R O F ONE A SOUND PERFORMANCE In February 2015, JTC Corporation (JTC) and Temasek Holdings (Temasek) announced the planned merger of four of their operating subsidiaries into an integrated platform for sustainable urban development. On 10 June 2015, Ascendas and Singbridge completed the merger to form Ascendas-Singbridge. It is my pleasure, as Chairman of the newly-merged entity, to present Ascendas-Singbridge s inaugural annual report for the year ended 31 March 2016, on behalf of the Board. For the 10-month period ended 31 March 2016, Ascendas-Singbridge achieved S$701 million in earnings before interest, tax, depreciation and amortisation (EBITDA). Profit after tax and minority interests (PATMI) for the same period was S$290 million, contributed mainly by leasing revenues from properties in our portfolio and fee incomes earned from our listed and private funds. We also benefited from revaluation gains for several of our properties both in Singapore and overseas. The Group posted a 22.2% return on equity for the period, and grew shareholders funds by 3.1% to S$1.3 billion. The total capital employed as at 31 March 2016 is about S$9.2 billion and the Group generated a return of about 6.2%. We grew our Assets Under Management (AUM) by about 20%, from S$17.9 billion to S$21.6 billion since completion of the merger between Ascendas and Singbridge. This growth was driven predominantly by acquisitions undertaken by funds and listed entities, most notably Ascendas REIT s successful acquisition of the Australian logistics portfolio. In tandem with this growth, the Group closed the year with total revenue under management of S$1.9 billion. Consequent to the merger, a change in control was triggered and the Group redeemed the S$300- million perpetual securities previously issued by Ascendas in April To show our appreciation to the security holders who have supported us, the redemption was made at 1% above par value. During the last quarter of the financial period, the Group issued S$200 million of 7-year notes at 3.5% coupon rate, S$100 million of 5-year notes at 2.965% coupon rate, and S$75 million of 10-year notes at 3.5% coupon rate. All three issuances were oversubscribed and received strong orders from institutional fund managers, banks, and private banking clients. Strong commitments from JTC and Temasek, previously 100% shareholders of Ascendas and Singbridge respectively, made the merger possible. JTC continued to extend its support with a S$3.5- billion 10-year fixed-rate bond at 3.5% interest per annum to the Group, while Temasek provided S$1.1 billion of equity capital. While we will not be declaring dividends for the current period in view of our growth plans for the Group, we have set aside the provision and funding for the coupon payment on the bond. A UNIFIED ENTITY The merger is a major milestone as Ascendas- Singbridge embarks on the journey to play a key role and capitalise on the urbanisation megatrend. The percentage of global population living in urban areas grew from 43% to 54% between 1990 and Asia experienced the most dramatic changes over the same period, with its urban population doubling to 2.1 billion, and this is expected to grow to 2.8 billion by Putting these figures into perspective, the growth in Asia s urban population is equivalent to building more than 100 Singapores over the next 15 years. 14 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/2016 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/

10 INTERVIEW WITH THE GROUP CEO MOVING FORWARD As we move into the next phase of our growth, we aim for our projects to create value and deliver appropriate returns for our shareholders, while at the same time, to meet the development needs and objectives of our host locations. We actively engage our partners, investors, and customers to ensure alignment, understanding, and cooperation to achieve mutually beneficial outcomes. ASCENDAS ONEHUB GKC, GUANGZHOU, CHINA Ascendas-Singbridge, with combined capabilities in project origination, investment promotion, asset development and township management, is uniquely positioned to contribute and capitalise on this new phase of urban growth. As a unified entity leveraging Singapore s experience, we are now able to see through large-scale and complex urbanisation projects. As an example, we are witnessing the results of this successful combination of Tier-1 master developer and Tier-2 real estate developer capabilities in the Sino-Singapore Guangzhou Knowledge City (SSGKC) project. We have completed the basic infrastructure within the first phase of the Start-Up Area, as well as the first phase of Ascendas OneHub GKC, and some of the residential developments. We are looking forward to welcome the first batch of companies and residents into SSGKC later this year. We are working closely with the Guangzhou Development District to develop SSGKC into China s state-level intellectual property rights protection hub. We also partnered with Singapore s Nanyang Technological University and China s South China University of Technology to establish a Joint Research Institute to research new technologies such as next-generation electric vehicles in SSGKC. Both Singapore s Prime Minister Lee Hsien Loong and China s President Xi Jinping witnessed the signing of the partnership agreement in November 2015, signifying the support and recognition SSGKC has attained with both countries. We are expecting some strong macroeconomic headwinds ahead, particularly in Singapore and China, where lower growth rates are projected. In order for us to stay competitive and relevant to the market, we must continue to grow our expertise and keep up with technological advances. The Board has worked with the Management to develop a fiveyear strategic plan to chart our growth. Some key initiatives will require us to explore entry into highergrowth and higher-margin adjacent business sectors, as well as review existing operations to enhance our competitive advantage. I am thankful to have the strong support of the Board, which comprises members with different backgrounds, as well as a competent Management under the strong leadership of Group CEO, Miguel Ko. Collectively, the Board and the Management bring a wealth of experience that spans diverse industries and professions, possess deep market knowledge, and holistic perspectives from private and public sectors. I also want to thank all our customers, partners and employees, whose support has been critical for our success. Moving forward, I am excited about the next phase of growth for Ascendas-Singbridge as one team. Wong Kan Seng Chairman MIGUEL KO GROUP CEO As the Group CEO, what do you think is unique about Ascendas-Singbridge? Ascendas-Singbridge is one of very few companies with integrated Tier-1 and Tier-2 development capabilities and track record. We envision Ascendas-Singbridge to be a leader in sustainable urban development that catalyses economic transformation and enriches lives. We are uniquely positioned to undertake large-scale urbanisation projects and create total business environments that inspire people to excel. The core focus of our large-scale projects such as Sino-Singapore Jilin Food Zone (SSJFZ) and Sino- Singapore Guangzhou Knowledge City (SSGKC) includes industry growth, housing and infrastructure, urban governance, and social and food security, which can have far-reaching outcomes and impact. As a Tier-1 master developer and Tier-2 real estate developer, Ascendas-Singbridge will enable SSJFZ and SSGKC to cater to the demands of the respective cities. The other unique strength of Ascendas-Singbridge is its position as a leading provider of business space solutions with a strong customer base and wide regional footprint in key growth markets. This enables us to undertake shorter-term projects in our pursuit of a balanced, sustainable and profitable business model. Singapore is our home base where we have several iconic projects. We see further growth opportunities in Singapore and are also exploring intensification of land use at Singapore Science Park, and strengthening the park s positioning to bring greater vibrancy to the area. Beyond Singapore, we are deepening our presence 16 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/2016 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/

11 INTERVIEW WITH THE GROUP CEO in mature markets, such as Australia and Korea, where we have built up a strong portfolio. We also plan to grow further in China, India and Southeast Asia, and deliver quality products and services that enable industry growth, job creation and urban development in these regions. While we strive for profitability, we continue our efforts to support the economic and social development of our host countries. We believe that environmentally friendly and socially responsible practices are key contributors to our competitive advantage. How has the merger integration been? The planning for the merger started way back in September 2014 and a detailed integration programme was put in place from Day One of Ascendas-Singbridge. We took a deliberate approach for a smooth transition, setting specific targets and timelines to ensure we are able to efficiently harness the complementary synergies of Ascendas and Singbridge. We made a concerted effort to engage and involve employees from across the Group in the integration programme. I am happy to share that we have achieved most of the integration objectives as at 31 March On 7 December 2015, we moved to our new office in Galaxis at Fusionopolis, one-north, where we adopted a vibrant open-office design to facilitate a more open and collaborative work culture. I personally believe that it is the quality of people that differentiates an organisation from its competitors, and Ascendas-Singbridge has the right people that will play a part in shaping the Group s future. To build a winning culture, we established Ascendas-Singbridge s core values, Power of One, which will guide us in the way we think, behave and make decisions. We developed a series of immersive programmes to foster employee engagement with the core values, which are: PASSION : Be passionate. Love what we do. Have fun at work. OPEN : Be open. Share information to help each other. Seek new ideas. WIN : Have a winning mindset. Work with speed. Deliver quality. EXCEL : Be the best we can be. Have courage to challenge limits. RESPECT : Respect each other. Show appreciation. Be humble. ONE TEAM : We are One Team. We break down walls that stand between us. Do the right thing for the company. We streamlined our organisation structure to speed up decision making and go-to-market, and further strengthened roles and responsibilities between headquarter and country units. As part of the effort to innovate on our business solutions, we launched a one-year transformation programme titled ASB Advantage, which seeks to explore and improve delivery of Ascendas-Singbridge s entire value chain. We also devoted a greater focus on building talents within the Group, involving our Chairman, Senior Leadership Team and the Management in coaching and interacting with our young talents through regular programmes. What are some of Ascendas-Singbridge s key achievements in the first year? There are many synergies between Ascendas and Singbridge, and the merger enabled us to capitalise on our complementary strengths. With greater flexibility in capital deployment, we are able to achieve more dynamic growth. Some of our notable achievements since the merger include: Ascendas REIT s (A-REIT) acquisition of 27 prime logistics properties in Australia valued at just over S$1 billion in Sydney, Melbourne, Brisbane and Perth boosted our position in the market and established us as the 8th largest industrial landlord in Australia. A-REIT achieved a fullyear distribution per unit (DPU) of cents (after performance fee), an increase of 5.2% over FY14/15 s DPU of cents. Ascendas India Trust s portfolio achieved a full-year DPU of 5.50 cents, 13% higher than the previous year. In Indian Rupee terms, revenue grew by 11% supported by positive rental reversions, portfolio occupancy and new acquisitions. The trust recorded healthy fair value gains on investment properties of S$96.1 million. Ascendas Hospitality Trust grew its distributable income by 13.2% year-on-year, partly contributed by a portion of the net proceeds from the divestment of Pullman Cairns International. The Trust also recorded increase in the valuation of its portfolio, mainly driven by the hotels in Japan which have benefited from the vibrant hospitality sector, as well as the refurbishment and improved rent structure of Hotel Sunroute Osaka Namba. We made our maiden foray into the CBD office sector in Singapore and Australia. In November 2015, we won the tender to redevelop 79 Robinson Road (also known as CPF building) by a narrow 2%-margin at S$550 million. In March 2016, we acquired 100 Arthur Street (renamed Ascendas Innovation Place) in North Sydney for about S$324 million, which brought our Assets Under Management (AUM) in Australia to about S$2 billion. We also launched our fifth private office fund in Korea, which acquired Jongro Place, a Grade-A office building located in the CBD of Seoul for about S$290 million. With this addition, we have grown our AUM in Korea by 23% to S$1.6 billion. We completed Phase 1A1 of Nusajaya Tech Park in Iskandar Malaysia, in which 73% of the 21 facilities launched were sold ahead of their completion. We also completed Ascent building in Singapore Science Park, which achieved close to 50% pre-commitment before its completion. To-date, SSJFZ has attracted about 15 projects in food industries, complementary services, and real estate developments. We successfully introduced our first SSJFZ-branded product, Brilliance s Fragrance 43 N japonica rice, to the Singapore market. At SSGKC, we completed development of the first two multi-tenanted business park buildings in Ascendas OneHub GKC and achieved 54% sale of the 302 residential units that were launched. Horizon Lakeview, a joint venture highend residential project with Wing Tai Holdings, also achieved approximately 40% sales (168 units) of Phase 1A. We expect greater vibrancy within the Start-up Area as companies and residents move in later this year. How do you feel about Ascendas- Singbridge moving forward? Our investors, partners and customers have been supportive of the merger and optimistic of the Group s ability to deliver on our promises to them. The energy and enthusiasm of our employees in carrying out their duties is a constant source of inspiration for me. The Management has been open and committed to the changes, cognizant of the fact that these are required to bring the Group to the next level of excellence. I am also strongly encouraged by an approachable Board, which has been generous with its guidance and advice. Our shareholders, Temasek and JTC, have been understanding and supportive, providing guidance while giving us the flexibility to chart our growth. All these factors combined have made the journey in the last year an enriching and interesting one, and I would like to extend my personal thanks to all the stakeholders involved. With determination and the power of one, I am assured that we have everything we need for the journey ahead, to be the best-inclass sustainable urban developer. 18 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/2016 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/

12 BOARD OF DIRECTORS Mr Wong Kan Seng Chairman Mr Miguel Ko Executive Director and Group CEO Mr Wong Kan Seng assumed Chairmanship of Ascendas-Singbridge in June He chairs the Executive Committee and is a member of the Leadership Development and Compensation Committee. He also chairs the S Rajaratnam Endowment. Mr Wong was the former Deputy Prime Minister of Singapore. He retired in May 2011 after serving 26 years in the Singapore Government. His last appointment was as the Coordinating Minister for National Security and Minister in charge of the Population and Talent Division in the Prime Minister s Office. During his tenure as Deputy Prime Minister, Mr Wong co-chaired the China-Singapore Joint Council for Bilateral Cooperation, the Suzhou Industrial Park Joint Steering Mr Miguel Ko was appointed Executive Director and Group CEO of Ascendas- Singbridge in June He is also a member of the Executive Committee. Previously, Mr Ko was Chairman and President of Starwood Hotels & Resorts, Asia Pacific Division. Prior to his appointment, Mr Ko was Deputy Chairman and CEO of CDL Hotels International. Between 1992 and 1999, Mr Ko was President of Pepsi-Cola International, Asia Pacific, and was responsible for executing the soft drink giant's entry into the emerging markets of China, Thailand, Vietnam and Indonesia. Mr Ko is widely recognised for his knowledge and insight of business and culture in Asia Pacific, particularly in areas relating to travel, leisure and Committee and the Sino-Singapore Tianjin Eco-city Joint Steering Council with the then PRC Vice-Premier. He also co-chaired the Qatar-Singapore High Level Joint Committee with the State of Qatar's former Heir Apparent. For his contributions to the Civil Service and labour movement, Mr Wong was conferred the Public Administration Medal (Silver) in 1976 by the President of the Republic of Singapore, and the Medal of Honour by the National Trades Union Congress in He received the London Business School Alumni Achievement Award in Mr Wong graduated with a Bachelor of Arts (Honours) degree from the University of Singapore and a Master of Business Administration degree from the London Business School. property development sectors. He was voted as Regional Hotel Chief of the Year 2007 and again in 2008 by readers of the Travel Weekly. He was the winner of the Visionary Leader of the Year in 2007, recipient of the 2007 Global Awards at the World Travel Mart in London and honored with the Lifetime Achievement Award in 2012 at the China Hotel Investment Conference in Shanghai. A native of Hong Kong, Mr Ko is a naturalized Singapore citizen. He received a Bachelor of Arts in Economics from the University of Massachusetts and a Master of Business Administration from Suffolk University. He is also a non-practicing Certified Public Accountant (CPA) by the State Board of Accountancy in New Hampshire in the U.S. Dr Beh Swan Gin Independent Non-Executive Director Mr Ko is currently a Director on the boards of Changi Airport Group and Samsonite International S.A. Mr Ko's other previous board directorships included Merlin Entertainment PLC, Delta Topco Limited (Formula One), Surbana International Consultants Dr Beh Swan Gin joined the Board in June 2015, and is a member of the Executive Committee. Dr Beh was appointed Chairman of the Singapore Economic Development Board (EDB) on 1 December He also chairs the Boards of EDB Investments and EDBI. Dr Beh was Permanent Secretary of the Ministry of Law from 1 July 2012 to 30 November The Ministry of Law is responsible for legal policy; the development of the legal sector including regulation of the legal profession; intellectual property policy; land policy; the provision of services such as bankruptcy administration, public trustee services, community mediation and legal aid; as well as the regulation of moneylenders and pawnbrokers. Prior to the Ministry of Law, he had been Managing Director of EDB from 1 August 2008 to 30 June He joined EDB in November 1992 and held various portfolios over the years including leadership roles in the development of Singapore s Biomedical Sciences industry cluster, as well as overseas assignments in EDB s North American operations. Holdings Pte Ltd, Royal Orchid Hotel (Thailand) Public Company Ltd, Civil Aviation Authority Singapore, CDL Hotels Ltd/City e-solutions Hong Kong, Millenium & Copthorne Plc, Amarin Plaza Company Ltd and Serm Suk (Pepsi-Cola) Bottler Ltd. In 2006 and 2007, Dr Beh also held concurrent appointments as the Executive Director of the Biomedical Research Council at the Agency for Science, Technology & Research, as well as the Director of the Ministry of Trade and Industry s Energy Planning Division. Dr Beh is a medical doctor by training and graduated from the National University of Singapore (NUS). He is also a Sloan Fellow with a Master of Science in Management from Stanford University s Graduate School of Business, and completed the Advanced Management Programme at the Harvard Business School. He is a Board Director for Singapore Technologies Engineering Ltd and chairs the Board of Singapore Technologies Electronics Limited. He is also a Board Director for LucasFilm Animation Pte Ltd and the Human Capital Leadership Institute. He is a member of the Advisory Board for the University of St Gallen as well as Singapore Management University s Lee Kong Chian School of Business. Dr Beh is also a member of the Young Presidents Organisation. 20 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/2016 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/

13 BOARD OF DIRECTORS Mr Chua Thian Poh Independent Non-Executive Director Mr Chua Thian Poh joined the Board in June 2015, and is a member of the Executive Committee and the Board Risk Committee. Since founding the Ho Bee Group in August 1987, Mr Chua has helmed the Group as Chairman and Chief Executive Officer. As the organisation s key decision maker, he sets the Group s strategic direction and determines its financial and investment decisions. Mr Chua has led the Group through several pivotal chapters of its history including the Group s Initial Public Offering in 1999 and its international expansion. Mr Chua serves on the boards of several other companies and community organisations. He is the President of Singapore Federation of Chinese Clan Associations, Board Chairman of Business China, Honorary President of Singapore Chinese Chamber of Commerce & Industry, Chairman of Ren Ci Hospital, President of Singapore Hokkien Huay Kuan and Chairman of Bishan East Citizens Consultative Committee. Mr Chua is also the Chairman of Board of Trustee of Chinese Development Assistance Council. Mr Chua, who is Singapore s Non- Resident High Commissioner to the Republic of Maldives, was conferred the Public Service Star (BBM) in 2004 and appointed Justice of the Peace in He was conferred Businessman of the Year by the Singapore Business Awards in 2006, the President s Award for Philanthropy (Individual) in 2012 and the Distinguished Service Order (Darjah Utama Bakti Cemerlang) in Mr Lee Eng Beng Independent Non-Executive Director Mr Lee Eng Beng joined the Board in June 2015, and is a member of the Audit Committee. Mr Lee joined Rajah & Tann Singapore LLP in 1998 and became Managing Partner of the firm in He is also Chairman of Rajah & Tann Asia, a network of law firms with more than 550 lawyers and offices across South-East Asia. He also runs a busy legal practice as a disputes lawyer, and was appointed as Senior Counsel in His main area of practice is in commercial litigation and arbitration, with a focus on corporate disputes, shareholders' and joint venture disputes, bankclient disputes, and restructuring and insolvency proceedings. Mr Lee graduated with First Class Honours in law from NUS in Upon graduation, he served as a Senior Tutor with the Faculty of Law in NUS and a Justices' Law Clerk in the Supreme Court of Singapore. In 1994, he obtained the Bachelor of Civil Law postgraduate degree from Oxford University, with First Class Honours. He then served as a lecturer in the Faculty of Law in NUS from Mr S. Chandra Das Independent Non-Executive Director Mr S. Chandra Das joined the Board in June He is a member of the Audit Committee and the Leadership Development and Compensation Committee. Mr Das has been the Managing Director of NUR Investment & Trading Pte Ltd, a company engaged in trading and investment activities in India, Singapore and Myanmar since He has over 40 years of experience primarily in companies involved in the trading and manufacturing industries. Mr Das served as the Singapore Trade Representative to the USSR from 1970 to 1971, Chairman of the Trade Development Board from 1983 to 1986, Chairman of NTUC Fairprice Co-operative Ltd from 1993 to 2005, Director of CapitaMall Trust Management Ltd from 2002 to 2012 and Chairman & Director of Nera Telecommunications Ltd from 1988 to Mr Das is currently the Chairman of Goodhope Asia Holdings Ltd, Tamil Murasu Limited, YHS (Singapore) Pte Ltd; Talkmed Group Ltd, Eldercare Holdings Pte Ltd and the Deputy Chairman of Yeo Hiap Seng Ltd. He also serves on the board of Super Group Ltd. Mr Das is currently Singapore s Non- Resident High Commissioner to Sri Lanka. He is also the Pro-Chancellor of Nanyang Technological University (NTU). Mr Das served as a Member of Parliament in Singapore from 1980 to He is and has been conferred numerous awards, such as the President s Medal by the Singapore Australian Business Council in 2000, and the Distinguished Service (Star) Award by National Trades Union Congress in 2005 and the Public Service Star (BBM) in Mr Das graduated with a Bachelor of Arts (Honours) degree from the University of Singapore in Professor Tan Kong Yam Independent Non-Executive Director Professor Tan Kong Yam joined the Board in June 2015, and is a member of the Audit Committee. Professor Tan is presently Professor of Economics at Nanyang Technological University and Director of the Asia Competitiveness Institute at Lee Kuan Yew School of Public Policy at NUS. He also sits on the boards of Changi Airport, Surbana Jurong Private Limited and CapitaRetail China Trust Management Limited. From , Professor Tan was the assistant director on exchange rate policy at the Monetary Authority of Singapore. He was also assistant to the late Dr Goh Keng Swee, the former Deputy Prime Minister of Singapore invited by Mr Deng Xiaoping to advise China on development strategy. From June 2002 to June 2005, he was a senior economist at the World Bank office in Beijing. In 2004, he was a member of the World Bank expert group on the eleventh five-year plan ( ) for the State Council in China. Prior to that, he was the chief economist of the Singapore Government at the Ministry of Trade and Industry and Head, Department of Strategy and Policy at the NUS Business School. He is a graduate of Princeton ( , class of 1931 scholar, Paul Volcker Thesis prize) and Stanford University ( ). Prior to joining NUS, he has worked at the Hoover Institution at Stanford University, World Bank, the Monetary Authority of Singapore, and was the Director of Research at the Ministry of Trade and Industry in Singapore. 22 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/2016 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/

14 BOARD OF DIRECTORS Mr Ong Yew Huat Independent Non-Executive Director Mr Ong Yew Huat joined the Board in June He chairs the Audit Committee and is a member of the Board Risk Committee. Mr Ong was Managing Partner and later Executive Chairman of Ernst & Young Singapore from July 2005 till December Prior to that, he led the transaction advisory and corporate recovery practice in the Far East area. A Chartered Accountant, Mr Ong began his career with Ernst & Young s London office. Upon his return to Singapore in 1983, he embarked on financial advisory work, whilst continuing his audit practice. Mr Ong is Chairman of United Overseas Bank Malaysia Berhad and a director of United Overseas Bank Ltd where he serves on the Board Risk and Audit Committees and is chairman of the Credit Committee. Mr Ong is also a director of Singapore Power Ltd and the Singapore Mediation Center, and Chairman of the Tax Academy of Singapore. A known supporter of the arts, Mr Ong is Chairman of the National Heritage Board and Singapore Tyler Print Institute (STPI). He was awarded the Public Service medal in 2011 for his contribution to the arts in Singapore. Mr Ong holds a Bachelor of Accounting (Honours) degree from the University of Kent at Canterbury. He is a member of the Institute of Chartered Accountants in England and Wales and Institute of Singapore Chartered Accountants. Mr Png Cheong Boon Non-Executive Director Mr Png Cheong Boon joined the Board in June He is a member of the Executive Committee and the Leadership Development and Compensation Committee. Mr Png was appointed as the CEO of JTC Corporation (JTC) on 1 May Prior to this appointment, he was Chief Executive of SPRING Singapore from 2008 to 2013 where he spearheaded the Board s efforts in developing a competitive small and medium enterprises (SME) sector and nurturing innovative Singapore enterprises. As an EDB-Glaxo scholar, Mr Png's decade-stint at EDB saw his last appointment as Regional Director for Central United States based in Chicago. He was responsible for promoting EDB s investment in the mid-west and southcentral states. Township Development Pte Ltd and China-Singapore Suzhou Industrial Park Development Group Co. Ltd. He also serves as a member of the Management Board of the Institute for Engineering Leadership in NUS. From 2008 to 2013, he was appointed as a Director in the Employment and Employability Institute Pte Ltd (e2i) and served as a member of the Board of Governors of the Institute of Service Excellence (ISES) in the Singapore Management University (SMU). On top of a Bachelor of Science degree in Electrical Engineering from Cornell University, Mr Png also completed a Master of Science in Management under the Sloan Fellows Programme at Stanford University. Mr Png was conferred the Public Administration Medal (Silver) in Mr Png sits on the board of JTC, Jurong Port Pte Ltd, the Singapore Suzhou Ms Cheo Hock Kuan Non-Executive Director Ms Cheo Hock Kuan joined the Board in June She chairs the Leadership Development and Compensation Committee. Ms Cheo heads the Sustainability & Stewardship Group of Temasek International Pte Ltd. She also heads Temasek s Strategic & Public Affairs Group, which oversees the company s brand and reputation, and manages its relationships with external stakeholders, including governments, regulators, NGOs, media and the public. It is also responsible for assessments of strategic issues and building of Temasek's network of partners. Prior to her current position, Ms Cheo had held the appointment of Head Organisation & Leadership, overseeing organisation development, corporate governance and leadership dynamics. She was also co-head China for a number of years, developing Temasek's presence in the China market. Prior to joining Temasek in 2002, Ms Cheo was a senior executive of Singapore Technologies Pte Ltd where she was responsible for the executive resource management of the Singapore Technologies group of companies. Ms Cheo is on the Board of TJ Holdings (III) Pte Ltd, Pavilion Capital Holdings Pte Ltd and Mandai Safari Park Holdings Pte. Ltd. Ms Cheo holds a Bachelor of Business Administration from NUS. Mr Dilhan Pillay Sandrasegara Non-Executive Director Mr Dilhan Pillay Sandrasegara joined the Board in June He is a member of the Executive Committee and the Board Risk Committee. Mr Sandrasegara is the President; Joint Head, Enterprise Development Group; Joint Head, Investment Group; Joint Head, Singapore; as well as Head, Americas of Temasek International Pte Ltd. Prior to joining Temasek, he was a corporate lawyer. Mr Sandrasegara serves on the boards of the Singapore Management University, Changi Airport Group (Singapore) Pte Ltd, Changi Airports International Pte Ltd, Temasek Life Sciences Ventures Private Limited, Fullerton Financial Holdings Pte Ltd, Mandai Safari Park Holdings Pte Ltd, Vertex Venture Holdings Ltd and TJ Holdings (III) Pte Ltd. He also serves as board member of the National Research Foundation and is a member of the Committee on the Future Economy. He was previously a member of the Corporate Governance Council and a board member of various publicly listed companies and public bodies. He graduated from NUS with a Bachelor of Laws and obtained a Master of Law from the University of Cambridge. 24 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/2016 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/

15 BOARD OF DIRECTORS SENIOR LEADERSHIP TEAM Mr Danny Teoh Non-Executive Director Mr. Danny Teoh joined the Board in July He chairs the Board Risk Committee and is a member of the Audit Committee. Mr Teoh spent 27 years in KPMG LLP, Singapore and held various senior positions over the years including Member of Executive Committee, Head of Audit, Head of Financial Services, Head of Risk Advisory Services and Head of Marketing & Communications. He was the Managing Partner of KPMG LLP, Singapore since 2005 until his retirement from the firm in September Mr Teoh is a qualified Chartered Accountant in England since 1981 and is an associate member of the Institute of Chartered Accountants in England and Wales. He has almost 30 years of auditing and advisory experience from working in England, Malaysia and Singapore. Mr Teoh s other directorships include DBS Group Holdings Ltd, DBS Bank Ltd, DBS Bank (China) Limited, and DBS Foundation Ltd. He also serves on the boards of Changi Airport Group (Singapore) Pte Ltd, Keppel Corporation Limited and JTC. Mr Miguel Ko Group CEO (Please see Board of Directors pg 20) Mr Manohar Khiatani Deputy Group CEO Mr Chia Nam Toon CEO, Ascendas Funds Management (Singapore) Ltd Ms He Jihong Chief Strategy Officer Mrs Lorraine Ng Head, Group Human Resources and Administration Mrs Nina Yang Chief Operating Officer, Singbridge Mr Jonathan Yap Chief Investment Officer & Head, Real Estate Funds 26 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/2016 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/

16 CORPORATE INFORMATION CORPORATE GOVERNANCE EXECUTIVE COMMITTEE Mr Wong Kan Seng (Chairman) Mr Miguel Ko Dr Beh Swan Gin Mr Chua Thian Poh Mr Dilhan Pillay Sandrasegara Mr Png Cheong Boon AUDIT COMMITTEE Mr Ong Yew Huat (Chairman) Mr S. Chandra Das Mr Lee Eng Beng Mr Danny Teoh Prof Tan Kong Yam BOARD RISK COMMITTEE Mr Danny Teoh (Chairman) Mr Chua Thian Poh Mr Dilhan Pillay Sandrasegara Mr Ong Yew Huat LEADERSHIP DEVELOPMENT AND COMPENSATION COMMITTEE Ms Cheo Hock Kuan (Chairman) Mr Wong Kan Seng Mr S. Chandra Das Mr Png Cheong Boon EXTERNAL AUDITOR Ernst & Young LLP One Raffles Quay North Tower, Level 18 Singapore Partner in-charge: Mr Nelson Chen COMPANY SECRETARIES Ms Mary J. de Souza Ms Karen Ng Mr Wee Chor Yong REGISTERED OFFICE 1 Fusionopolis Place #10-10 Galaxis Singapore Tel: (65) Fax: (65) Website: Co.Reg.No E Ascendas-Singbridge Pte Ltd adopts a strong corporate governance culture that protects the interests of relevant stakeholders. This is inherent in the core values of the Ascendas-Singbridge Group (the Group ). Ascendas-Singbridge s corporate governance framework is aligned to the principles and guidelines of the Singapore Code of Corporate Governance 2012 (the Code ) as described below: BOARD MATTERS The Board s Conduct of Affairs The Board provides leadership and sets overall long-term strategic objectives for the Group. Matters requiring the Board s approval include: 1. Major funding proposals, investments, acquisitions and divestments; 2. Annual budgets and financial plans of the Group; 3. Annual and quarterly financial reports; 4. Internal controls and risk management strategies and execution thereof; 5. Appointment of directors and key management staff, including the review of performance and remuneration packages. The Group has in place Financial Regulations which define levels of authority for approvals on matters such as operating and capital expenditure, credit lines, and acquisition and disposal of assets and investments. To ensure an in-depth and timely review of specific issues, the Board has delegated certain functions to various Board Committees i.e. the Executive Committee (EXCO), the Audit Committee (AC), the Board Risk Committee (BRC) and the Leadership Development and Compensation Committee (LDCC). Each of these Board Committees has its own terms of reference. The EXCO comprises six members, namely Mr Wong Kan Seng (Chairman of the EXCO), Mr Miguel Ko, Mr Dilhan Pillay Sandrasegara, Mr Png Cheong Boon, Dr Beh Swan Gin and Mr Chua Thian Poh. The EXCO s principal responsibilities include: To evaluate and approve investments to be made by the Group (including the injection of additional capital into subsidiary companies, equity participation and/ or extension of contingent liabilities in joint venture companies by Ascendas-Singbridge and/or its subsidiary companies, and participation in land tenders) as well as financing relating thereto, and divestments by Ascendas- Singbridge and/or its subsidiary companies, within the prescribed limits; and To review and advise on the Group s overall business and commercial strategy, annual operating budget, financial plans and capital structure necessary to achieve its objectives, prior to submission to the Board for approval. 28 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/2016 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/

17 CORPORATE GOVERNANCE Details of the other Board Committees are provided below. Board Attendance The Board meets at least once every quarter and more often, when necessary. Four Board meetings were held in the financial year ending 31 March 2016 (FY15/16). The (i) Board Members Board No. of meetings held: 4 Audit Committee (AC) No. of meetings held: 3 Executive Committee (EXCO) No. of meetings held: 2 Board Risk Committee (BRC) No. of meetings held: 3 Leadership Development & Compensation Committee (LDCC) No. of meetings held: 3 Mr Wong Kan Seng Mr Miguel Ko 4 3 (i) 2 2 (i) 3 (i) Mr Ong Yew Huat Ms Cheo Hock Kuan Mr Danny Teoh Dr Beh Swan Gin Mr Chua Thian Poh Mr Dilhan Pillay Sandrasegara Mr Lee Eng Beng Mr Png Cheong Boon Mr S. Chandra Das Prof Tan Kong Yam Mr Ko attended the AC, BRC and LDCC meetings in his capacity as Ascendas-Singbridge Group CEO Directors Training Upon appointment, a Director is given a formal letter of appointment along with the Constitution of Ascendas- Singbridge and the Terms of Reference of the Board, which sets out the key Directorship responsibilities. A comprehensive orientation and induction programme, including site visits to the Group s properties, is organised to familiarise new Directors with the Group s business, operations, organisation structure and corporate policies. New Directors are briefed on Ascendas-Singbridge s corporate governance practices, regulatory regime and their duties as Directors. Directors are updated regularly attendance of the Directors at meetings of the Board and Board Committees, and the frequency of such meetings, is disclosed below: on changes in relevant laws and regulations, industry developments, business initiatives and challenges. Directors are informed and encouraged to attend relevant training programmes conducted by the Singapore Institute of Directors, business and financial institutions and consultants. Directors may, at any time, request Management s attendance for further explanations, briefings or informal discussions on any aspect of the Group s operations or business issues. Ascendas-Singbridge funds the training and development programmes that it arranges for its Directors. Board Composition and Guidance The Board currently comprises twelve Directors. All the Directors, except the Group Chief Executive Officer (Group CEO), are non-executive Directors. Each Director has been appointed on the strength of his/her calibre and experience. As a group, the Directors possess core competencies in relevant areas such as real estate, finance, engineering, economics, legal, and strategic corporate management, particularly in the Asia-Pacific region. Seven of the twelve Directors currently on the Board, including the Chairman, are independent Directors, who satisfy the criteria for independence under Guideline 2.3 of the Code. One of the twelve Directors, Ms Cheo Hock Kuan, is female which provides gender diversity on the Board. Key information regarding the Directors, including directorship appointments both current and those held over the preceding three years in listed companies, as well as other principal commitments, are set out in the Board of Directors section of this Annual Report, at pages 20 to 26. The Board considers that its composition provides for a balanced exchange of views and deliberations, and effective oversight of the Management. All Board members are supplied with relevant, complete and accurate information on a timely basis via a secure, dedicated online Board communication platform. Chairman and Chief Executive Officer The Chairman and the Group CEO are separate persons and are not related. The Chairman is a non-executive and independent Director. He approves the agenda for Board meetings, and proactively leads the Board in providing effective guidance and support to the Management in the growth of the Group s businesses. The Chairman leads the development of constructive relations within the Board, between the Board and Management, and with the shareholder of Ascendas-Singbridge. The Group CEO bears executive responsibility for the Group s business and implements the Board s decisions. Board Membership The Leadership Development and Compensation Committee (LDCC) reviews the composition of the Board and Board Committees at least once annually, taking into account each Director s competencies, commitment, contribution and performance, as well as the need for progressive renewal of the Board. The LDCC is chaired by Ms Cheo Hock Kuan, the other members being Mr Wong Kan Seng, Mr S. Chandra Das and Mr Png Cheong Boon. The LDCC meets at least once a year to review the balance and mix of expertise, skills and attributes of the Directors in order to meet the business and governance needs of the Group, shortlists candidates with the appropriate profile for Board succession planning and makes recommendations to the shareholder for approval. New Directors are formally appointed by way of a Board resolution. The LDCC also reviews annually whether a Director or potential candidate for the Board is considered independent, taking into consideration the provisions of the Constitution of Ascendas-Singbridge, as well as the explanation in the Code as to who would qualify as an independent director. Board Performance It is part of the LDCC s duties to initiate and review Board performance annually. The LDCC will ascertain whether there are any matters that need to be addressed arising from the foregoing, and, if so required, make recommendations for appropriate action. Access to Information The Board is provided with quarterly financial accounts, other financial statements and progress reports of the Group s business operations. The quarterly financial results and annual budget are presented to the Board for approval. The financial results are also compared against the budgets and explanations are given for any significant variances in the reporting period. As a general rule, board papers are sent to Directors at least one week in advance in order for Directors to be adequately prepared for the meeting and can focus on the relevant issues. The Senior Leadership Team, including the Group CEO and Deputy Group CEO, attends Board meetings to answer any query from Directors. Directors also have unrestricted access to the Company Secretary and the Management at all times. At the quarterly Board meetings, Directors are updated on developments and changes to the operating environment affecting the Group. 30 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/2016 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/

18 CORPORATE GOVERNANCE A one-day off-site Board strategy meeting is organised annually for the Board and the Senior Leadership Team to discuss strategic issues and formulate plans pertaining to the Group. The Company Secretary works closely with the Chairman and the Group CEO in setting the agenda for Board meetings. The Company Secretary attends all Board meetings and ensures that Board procedures are followed and that applicable rules and regulations are complied with. The Company Secretary prepares minutes of Board meetings and proceedings of Board Committees. Remuneration Matters The LDCC oversees the remuneration framework of the Board and key executives of the Group. This includes reviewing and, if the LDCC deems appropriate, endorsing the remuneration framework and principles as may be proposed by the Management from time to time, to ensure that the Group is able to attract, recruit, motivate and retain the best talents through competitive and progressive remuneration principles. The LDCC recommends to the Board the proposed framework for the remuneration of Directors. The Board remuneration framework takes into account the Directors responsibilities and contributions (including service on various Board Committees) as well as prevailing industry practices and norms on remuneration. The LDCC advocates a performance-based remuneration system for key executives of the Group. The system is flexible, responsive to the market and based on the individual employee s performance. The LDCC s oversight of the compensation framework and remuneration of key executives includes: i Establishment of appropriate remuneration policies of the Group, including long-term incentive schemes; ii Approval of the remuneration structure for the Management (other than for Group CEO, which is under the Board s purview); and iii Recommending the Group CEO s remuneration structure (including salary and incentives) for the Board s consideration and approval. Accountability and Audit The Board is responsible for providing a balanced and comprehensive assessment of the performance, position and prospects of Ascendas-Singbridge and the Group. Financial reports and other relevant information are promptly disseminated to the shareholder. The Board has unrestricted access to information from the Management, who regularly provides the Board with reports on the performance, position and prospects of Ascendas- Singbridge and the Group. Such reports include the Consolidated Income Statement, the Statement of Financial Position, a comparison of actuals against budgets and explanatory notes for significant variances for the month and year-to-date performance. Risk Management and Internal Controls The Board Risk Committee (BRC) assists the Board in overseeing risk governance within the Group. The BRC helps to ensure that the Management maintains a sound system of risk management and internal controls to safeguard shareholder interests and the Group s assets. It also assesses the nature and extent of risks which the Board is willing to take in achieving the Group s strategic objectives. The BRC s duties and responsibilities include: 1. Reviewing and discussing, with the Management, the Group s risk governance structure and risk policies, risk identification, risk mitigation and monitoring processes and procedures; 2. Recommending to the Board for its determination, the nature and extent of significant risks which the Group may take in achieving its strategic objectives and the overall Group s levels of risk tolerance and risk policies; 3. Providing timely input to the Board on critical risk issues that are brought to the BRC s attention. The Enterprise Risk Management Department of the Group implements the Group s risk management policies and processes, and develops the framework to assist the operating units in identifying, monitoring and managing the risks within the Group. The Management regularly assesses the nature and extent of risks, and maintains and updates a risk register which identifies risks and the internal controls in place to mitigate such risks. This register is submitted to the BRC and the Board on a quarterly basis. The BRC reports material findings to the AC and the Board, and makes recommendations in respect of any material risk issues. The Risk Management Report is found on page 35. Audit Committee The AC currently comprises five members, all of whom are non-executive Directors with the majority being independent non-executive Directors. The members of the AC are Mr Ong Yew Huat (Chairman), Mr Danny Teoh, Mr Lee Eng Beng, Mr S. Chandra Das and Prof Tan Kong Yam. The AC performs the following core functions, in line with best practices as set out in the Code: 1.1 Reviewing the quarterly, half-yearly and annual financial statements before submission to the Board for approval, and the assurance provided by the Group CEO and CFO regarding the financial records being properly maintained and the financial statements giving a true and fair view of the Group s operations and finances; 1.2 Reviewing the external audit plan with external auditors, including approving the nature and scope of the audit, their evaluation of the system of internal accounting controls, their audit report and their management letter and Management s response thereto; 1.3 Reviewing the independence of external auditors, the remuneration (for audit and non-audit related services) of external auditors, including their terms of engagement; 1.4 Recommending to the Board the appointment, reappointment or removal of external auditors for the ensuing financial year; 1.5 Reviewing the principles, policies, strategies, processes and control frameworks for managing the Group s financial processes and risks, as well as the adequacy and effectiveness of the Group s internal controls; 1.6 Monitoring the procedures established to regulate interested party transactions; 1.7 Reviewing the assurance provided by Management regarding the effectiveness of internal controls as well as disclosures in the Annual Report relating to the effectiveness of the internal control systems; 1.8 Reviewing the effectiveness of the Group s internal audit function; and 1.9 Reviewing the whistleblowing framework and procedures of the Group. The AC has the authority to investigate any matter within its terms of reference. It also has full access to and co-operation from the Management as well as full discretion to invite any Director or executive officer to attend its meetings. The AC has conducted an annual review of the performance of external auditors and the volume of non-audit services to satisfy itself that the nature and extent of such services will not prejudice the independence and objectivity of the external auditors, before confirming their re-nomination. The AC meets with the external and internal auditors, in each case, without the presence of the Management, at least once a year. Quarterly financial statements are reviewed by the AC before presentation to the Board for approval, to ensure the integrity of information. The AC takes measures to keep abreast of the changes to accounting standards and issues which have a direct impact on financial statements, with training conducted by professionals or external consultants. The Internal Audit Division (IAD) of the Group has an annual audit plan, which complements that of the external auditors. IAD s plan focuses on material internal control systems including financial, operational, information technology and compliance controls, and risk management. Any material non-compliance or lapses in internal controls, together with corrective measures, are reported to the AC. Internal Audit The internal auditors assist the AC in ensuring that Management maintains a sound system of internal controls, by regular monitoring of key controls and procedures and ensuring their continued effectiveness. In the financial year under review, the internal audit function of Ascendas- Singbridge was carried out by KPMG LLP (KPMG). 32 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/2016 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/

19 CORPORATE GOVERNANCE ENTERPRISE RISK MANAGEMENT Staffed by qualified executives, KPMG has unrestricted access to the AC. KPMG reports to the Chairman of the AC and is guided by the Standards for the Professional Practice of Internal Auditing. During the year, KPMG adopted a riskbased auditing approach covering financial, operational and compliance controls. Internal audits were carried out on Group entities. Internal audit reports were submitted to the AC for review and the summary of findings and recommendations were discussed at the AC meetings. The AC has reviewed the internal audit function in the financial year under review and is satisfied of its adequacy and independence from the activities it audits. Ascendas- Singbridge s IAD is headed by a qualified accountant and professional auditor, who reports directly to the Chairman of the AC on audit matters and to the Group CEO on administrative matters. IAD has adopted the Standards for Professional Practice of Internal Auditing set by the Institute of Internal Auditors. The AC approves the hiring, removal, evaluation and compensation of the Head of Internal Audit function. Internal Controls Based on the audit reports and management controls in place, the AC is satisfied that the internal control systems provide reasonable assurance that assets are safeguarded, proper accounting records are maintained and financial statements are reliable. In the course of their statutory audit, the Group s external auditors will highlight any material internal control weaknesses that come to their attention while carrying out their normal audit, which is designed primarily to enable them to express their opinion on the financial statements. Such material internal control weaknesses and recommendations, if any, by the external auditors are reported to the AC. The Group CEO and the CFO at the financial year-end have provided a letter of assurance to the Board on the integrity of the financial records/statements, as well as the effectiveness of the Group s risk management and internal control systems. The internal control systems include the safeguarding of assets, maintenance of proper accounting records, reliability of financial information, compliance with appropriate legislation, regulations and best practices, and identification and containment of business risk. Such systems are designed to manage rather than to eliminate the risk of failure to achieve business objectives. For this reason, they provide only reasonable, and not absolute, assurance against material misstatement of loss. The Board also notes that all internal control systems contain inherent limitations and no system of internal controls can provide absolute assurance against the occurrence of material errors, poor judgment in decisionmaking, human error losses, fraud or other irregularities. Based on the system of risk management and internal controls established and maintained within the Group, work performed by the internal and external auditors, reviews performed by the Management, various Board Committees and the Board, and the assurance from the Group CEO and CFO, the Board concurs with the AC and is of the opinion that the system of risk management and internal controls addressing material financial, operational, compliance and information technology risks of the Group were effective and adequate as at 31 March Code of Business Ethics and Employee Conduct Policy The Group has a Code of Ethics which is posted on its intranet website, to regulate the ethical conduct of its employees. The Group also has a Whistleblowing Policy and Procedure which is posted on its corporate website, to allow staff and external parties such as suppliers, customers, contractors and other stakeholders, to raise concerns or observations in confidence to Ascendas-Singbridge, about possible irregularities for independent investigation and appropriate follow up action to be taken. Communication with Stakeholders The Group upholds a strong culture of proactively engaging our customers, partners and stakeholders through regular and transparent communications. Information relating to the Group is made available through press releases and periodic publications (including our quarterly ASCENT magazine, and annual reports), and the Group s website The Board Risk Committee supports the Board by reviewing the management of risks and assessing the effectiveness of risk mitigation strategies. Risk management is an integral part of our planning and decision-making process. Our risk management framework is supported by a rigorous process of risk identification, management, monitoring and reporting that provides assurance to the Board and our stakeholders. We have designated personnel who are involved in regular assessments and improvement of risk management processes and controls. Independent third-party reviews are also conducted to ensure that our framework remains relevant and adequate. RISK FACTORS Ascendas-Singbridge s performance is influenced by a wide range of risk factors, some of which could be outside of the Group s ability to control, assessed to be non-material or are presently unknown. We recognise that risks cannot be completely eliminated, especially in an evolving and uncertain landscape. The systems we have in place are intended to provide reasonable but not absolute assurance. Through our framework, we aim to minimise risks to a reasonable level, where costs do not outweigh the potential benefits. Our principal risk types are: Strategic Risks Strategic risks relate to the Group s business plans and strategies, which are affected by geopolitical conditions in countries where we operate and/or have significant investments. Uncertainties could arise from evolving competitive landscape, changes in laws and regulations, customers needs, product offering relevance and economic cycle, as well as the ability to acquire quality assets at reasonable prices. Our strategic direction, business strategies, plans and performance targets are reviewed and approved by both the Management and Board. We periodically review the macroeconomic environment by monitoring economic and market indicators, which enable us to gain better insights on future developments. We also analyse market trends and demands to identify potential shifts in our customers location strategies. We scrutinise our investment and divestment plans rigorously, to ensure we achieve alignment with our strategic business focus and are able to meet the required rates of return on investments. During the risk evaluation stage, a multidisciplinary advisory team provides an independent review of the relevant risk factors including market, financial and operational risks. The plans are presented to the Group Investment Committee, where it is reviewed and escalated to the EXCO or Board for approval, depending on the agreed thresholds. Project Management Risks We have set up clearly-defined procedures for monitoring, managing and controlling the delivery of major projects. The project management teams under various business units are responsible for ensuring that all projects are managed effectively, and regular progress reports including significant activities are submitted to the Management. We also ensure that the teams establish and monitor key project risk indicators, and implement remedial actions where applicable. Human Resource Risks The Group adopts competitive human resource practices in staff recruitment, talent development and remuneration plans, supported by comprehensive human resource policies in these areas. External consultants, where needed, are engaged to conduct market surveys to provide insights on hiring trends and guidance on compensation and benefit policies. We acknowledge that succession planning and the ability to attract and retain top talents are critical to our organisation. In addressing these areas, we implemented programmes aimed at building a talent pool to ensure the availability of experienced and capable employees to fill key business leadership positions. Exposure to Financial Market Risks Ascendas-Singbridge is exposed to financial risks that largely arise from foreign exchange and interest rate movements. We have clearly-defined financial regulations where business units are only allowed to engage in standard forward transactions for hedging foreign exchange and interest rate risks. Banking mandates defining the permitted financial instruments and facility limits are approved by the relevant Boards within the Group. Catastrophic Risks Some of the countries in which we operate are subject to natural catastrophes such as earthquakes, floods, or manmade acts like terrorism. Such occurrences may significantly impact our operations and ability to provide services to our customers and partners. Besides ensuring that our operations are adequately insured, the Group has a defined crisis management and escalation process. The process involves the Management s response to emergencies and/or catastrophic events, so that we maintain business and service continuity without compromising our value promise to our customers and stakeholders. Information Technology Risks We have established policies and procedures to manage our Information Technology (IT) risks, which cover IT security, access controls and data security across the Group. We conduct regular tests of our disaster recovery processes to validate our system continuity plans. In addition, network penetration tests are held regularly to identify security gaps. 34 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/2016 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/

20 ACHIEVING STEADY GROWTH S$1,138m 22.2% TOTAL INCOME FY15/16 RETURN ON EQUITY Ascendas-Singbridge reported a consolidated Profit After Tax and Minority Interests (PATMI) of S$290 million. Total income for the same period amounted to S$1,138 million and we generated Return on Equity (ROE) of 22.2%. SIGNATURE TOWERS, SEOUL, SOUTH KOREA 36 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/2016 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/

21 FINANCIAL REVIEW SELECTED INCOME STATEMENT ITEMS (FOR THE YEAR ENDED 31 MARCH 2016) SELECTED BALANCE SHEET ITEMS (AS AT 31 MARCH 2016) (S$ m) FY15/16 (10 Months) Revenue Profit before other gains, finance expense, share of profits from associates & joint ventures, tax and non-controlling interests 90.4 Negative goodwill arising from acquisition of business, net of the contingent consideration (S$ m) FY15/16 Assets Investment properties 4,949.4 Properties, plant and equipment Development properties for sale Investment in associates & joint ventures 2,758.0 Cash and bank balances Others Total Assets 10,316.0 Other gains/(losses) - net Finance expense (162.0) Share of profits from associates & joint ventures Liabilities Borrowings / medium term notes 3,221.5 Unsecured 10-Year fixed-rate bond 3,471.2 Others 1,271.1 Total Liabilities 7,963.8 Profit before tax Net Assets 2,352.2 Income tax expense (102.2) Non-controlling interests (118.5) Profit attributable to shareholder (PATMI) Equity Shareholder s funds 1,309.9 Non-controlling interests 1,042.3 Total Equity 2,352.2 Financial Ratios Return on capital employed (%) 6.2% Return on equity (%) 22.2% Gross debt equity ratio (%) 292% 5 Interest cover ratio (X) 4.2 AUM 21,559 5 Gross debt equity ratio includes the borrowings amounting to S$162.4 million relating to disposal group held for sale. 38 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/2016 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/

22 FINANCIAL REVIEW TREASURY HIGHLIGHTS GROUP AT A GLANCE On 10 June 2015, the merger between Ascendas and Singbridge was completed to form Ascendas-Singbridge. Previously held by JTC and Temasek respectively, Ascendas and Singbridge are now wholly-owned by a newly formed holding company, Ascendas-Singbridge Pte Ltd, which is in turn jointly-owned by JTC (49%) and Temasek (51%). As part of the structuring for the merger, Ascendas- Singbridge issued a 10-year 3.5% fixed rate bond (JTC Bond) amounting to S$3,471.2 million to JTC as purchase consideration for Ascendas. The 10-year bond further entitles JTC to a contingent consideration arrangement whereby JTC continues to participate in the future profits arising out of the future capital appreciation of property and property-related assets (collectively earn-out assets ) that were owned by Ascendas following the completion of the merger. Resulting from the acquisition of Ascendas at lower than the fair value of net assets, a negative goodwill of S$186.7 million (net of the contingent consideration/earn-out provision) was recorded. Additionally, Ascendas-Singbridge issued S$1,075 million of redeemable convertible preference shares for the transfer of Temasek s 100% interest in Singbridge to Ascendas-Singbridge and transaction costs relating to the merger. FY15/16 FINANCIAL REVIEW On a post-merger basis, for the 10 months ending 31 March 2016, Ascendas-Singbridge Group (the "Group") reported consolidated profit after tax and minority interests (PATMI) of S$290 million. We generated return on capital employed (ROCE) of 6.2% and return on equity (ROE) of 22.2% for the reporting period. The Group s main sources of income are proceeds from sale of development properties, rental income, fee-based income, fair value gains and contribution from our investments in associates and joint ventures. For the same period, the Total Income from these earnings amounted to S$1,138 million. Rental income from investment properties is a stable source of recurring income for the Group and contributed approximately 20% or S$228 million to our Total Income. This included contributions from the completion of a buildto-suit facility for DSO National Laboratories at Singapore Science Park ahead of schedule, and from Galaxis located at one-north which was completed in December In Korea, we acquired Jongro Place, a Grade-A office building, via Ascendas Korea Office Private Real Estate Investment Trust 3, which further contributed to our recurring rental income base. Recurring fee-based income, comprising fund and property management, contributed approximately 13% or S$144 million to Total Income. This included acquisition fee arising from Ascendas REIT s significant acquisition of the S$1.1 billion logistics portfolio in Australia. In addition, Ascendas Funds Management (S) Ltd was awarded a performance fee in view of the better results achieved by Ascendas REIT for the financial year. Other gains or losses, comprising mainly negative goodwill, earn-out provision and fair value gains, contributed approximately 38% or S$431 million. For the 10 months, we recorded S$239 million fair value gains for assets held on our balance sheet. The fair value gain was underpinned by the strong asset performance on Galaxis and the completion of DSO National Laboratories as well as significant increase in the value of the refurbished Hotel Sunroute Osaka Namba held via Ascendas Hospitality Trust (A-HTRUST). In China, the stiff competition and oversupply faced in Suzhou impacted negatively on our sales and margins. In view of the less favourable performance, we have booked provisions amounting to S$55 million on our investment in Suzhou. In addition, the Group has also taken a S$10 million impairment provision on our investment in Sino-Singapore Tianjin Eco- City. This represented a write-down of the premium we paid for the stake previously acquired in 2010, having considered the future cash flows estimated at the project level. Earnings from our investments in associates and joint ventures, including our listed Trusts, contributed S$152 million to the Group s Profit. The Group saw strong contributions from our listed Trusts, the joint ventures with Frasers Centrepoint Limited in Singapore and Nusajaya Tech Park, Malaysia. FUNDING ACTIVITIES DURING THE YEAR We continue our proactive capital management efforts in support of Ascendas-Singbridge s business growth following the merger. This was achieved through understanding the market dynamics and planning ahead in securing the Group s funding requirements. To ensure the Group s financial stability and flexibility, we monitor the Group s liquidity position, funding capacity, loan profile, cost of funds, foreign exchange and interest rate exposure on a regular basis. Higher capital requirements for banks have made long-term bank financing increasingly expensive. As such, we started to tap on debt capital markets for our long-term financing needs. This has helped to optimise the Group s borrowing cost, diversify our funding sources and lengthen the average loan maturity. We successfully launched S$200 million 7-year Singaporedollar bonds under Ascendas S$1 billion Medium Term Note (MTN) Programme in January 2016 amid the turmoil in equity and currency markets. This was the first issuance of Singapore-dollar bonds by a corporate in 2016, and was commended by market as a well-timed offering of a safe haven investment catered to investors flight to safety. This was followed by another two successful bond issuances of S$175 million for 5-year and 10-year tenors in the first quarter of In addition to the bond issuances, we also secured bank borrowings of S$1,040 million in FY15/16. The proceeds were mainly deployed to finance the Group s acquisitions and investments during the year. LIQUIDITY AND FUNDING CAPACITY As at 31 March 2016, the Group s total available funding capacity was S$1,625 million, comprising cash reserves and bank credit facilities. Total Funding Capacity 39% 16% 45% Uncommitted Bank Facilities Committed Bank Facilities Cash Reserves In addition to the above, the Group has an issue capacity of S$1,550 million under the existing MTN programmes established by Ascendas and A-HTRUST. These welldiversified sources of funds will enable us to capitalise on any future opportunities for growth. GROUP S LOAN PROFILE As at 31 March 2016, the Group recorded a total debt of S$6,863 million after taking into account the 10-Year JTC Bond of S$3,471.2 million. Excluding the JTC Bond, total debt would have been S$3,392 million. As the JTC Bond was structured as a long-term funding for the merger between Ascendas and Singbridge, it is treated as a form of quasi-equity for internal monitoring purposes. As a result, the discussion and analysis in this section shall treat the JTC Bond as a form of quasi-equity and focus on the external borrowings of the Group. In managing the Group s loan portfolio, we reduce refinancing risk by spreading out the loans maturity. We review our loan portfolio regularly and plan ahead for the refinancing of large loans. As at 31 March 2016, the Group s average loan maturity period was 3.4 years. Based on the current projections, the Group has more than sufficient resources to support its refinancing needs for the next financial year. 40 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/2016 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/

23 TREASURY HIGHLIGHTS Loan Maturity Profile (in S$ million) 776 SUMMARY (S$ millions) FY15/ SGD INR KRW USD AUD CNY JPY S$ bridging loan in the process of being refinanced by a 4-year project loan with annual extension option for another 3 years thereafter. Funding Capacity Available and unutilised bank credit facilities 985 Cash and cash equivalents (excl. cash pledged) 640 Unutilised facilities and funds available for use 1,625 Debt Securities Capacity Debt securities capacity 2,000 Issued debt securities 450 Unutilised debt securities capacity 1,550 With operations spanning across Asia and Australia, the Group s funding needs are primarily met by local borrowings, which act as a natural hedge to mitigate exposure to foreign currency risks. Singapore, being our home market, makes up our largest business segment and hence, our largest source of borrowing. In addition, the Group has also entered into foreign exchange contracts and cross currency swaps in selected currencies to hedge against exposure for the Group s overseas investments. The Group has a wide network of banking relationships with local banks in all the countries that we have a presence in. This enables us to tap on the strength and expertise of the local banks in meeting our funding requirements and to support our growth in Singapore and abroad. Group s Funding Currencies 62.8% 12.4% 10.9% 8.1% 4.1% 1.5% 0.2% SGD AUD KRW CNY JPY INR USD INTEREST RATES MANAGEMENT The Group adopts a prudent strategy in managing our interest rate cost and exposure. This is done through a mix of fixed and floating rate borrowings. As at 31 March 2016, fixed rate borrowings comprised 66% of the Group s total debt with the balance on floating rates. In FY15/16, the Group incurred a total finance cost of S$168 million, resulting in an interest cover ratio of 4.2 times. This low ratio is mainly attributable to the S$99 million coupon for JTC Bond. Excluding the coupon for the JTC Bond, the interest cover ratio would have been 10.1 times. GEARING We fund our growth via a combination of disposal proceeds (capital recycling) and borrowings. To support the Group s expansion plans, borrowings are employed to bridge the gap when there is a timing difference between its divestment and investment plan and to improve the Group s investment returns. During the year, the Group redeemed its S$300 million perpetual securities previously issued by Ascendas. This redemption was triggered by a change of control arising from the corporate merger of Ascendas and Singbridge. Consequently, this reduced the Group s equity base. As at 31 March 2016, the Group s gross and net debt-toequity ratios were 2.92x and 2.65x respectively. Treating the JTC Bond as quasi-equity, the Group s gross and net debt-toequity ratios would have been 0.58x and 0.47x respectively. Interest Cover Ratio Earnings before interest, tax, depreciation and amortisation 701 Finance cost 69 JTC Bond Coupon 99 Interest cover ratio incl. coupon of JTC Bond (x) 4.2x Interest cover ratio excl. coupon of JTC Bond (x) 10.1x Secured Debt Ratio Unsecured debt 1,889 Secured debt 1,503 JTC Bond 3,471 % of debt secured incl. JTC Bond 22% % of debt secured excl. JTC Bond 44% Debt Equity Ratio Gross debt 3,392 JTC Bond 3,471 Equity 2,352 Gross debt equity ratio (%) 292% Net debt equity ratio (%) 265% Gross debt equity ratio with JTC Bond as quasi-equity (%) 58% Net debt equity ratio with JTC Bond as quasi-equity (%) 47% 42 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/2016 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/

24 BUSINESS REVIEW FUNDS MANAGEMENT ASSETS UNDER MANAGEMENT Our Assets Under Management (AUM) grew by some 20%, from S$17.9 billion at the time of merger to S$21.6 billion at the end of FY15/16. In line with our business model to grow through third party funds, we achieved a 74:26 split between the assets held via funds and the assets held on our own balance sheet. In terms of distribution by location, more than 50% of the AUM is held in Singapore, which continues to be our key market. Our other core markets are China, India, Australia and South Korea. In terms of distribution by segment, our mainstay currently are business parks and industrial assets. In FY15/16, our significant acquisitions were: A portfolio of 27 logistics properties in four Australian cities, namely Sydney, Melbourne, Brisbane and Perth Ascendas Innovation Place, a prime well-occupied office building in North Sydney central business district (CBD) Jongro Place, a prominent well-occupied office building in Seoul CBD 79 Robinson Road (also known as CPF Building), an office redevelopment site in Singapore CBD OneHub Puri, our first mixed-development project in Greater Jakarta, Indonesia. With asset acquisition as a growth focus, we will continue to invest and deepen our presence in Tier-1 cities within our core markets through funds and co-investments, where appropriate. We also plan to increase our exposure in CBD and suburban offices, logistics facilities, and mixed-use integrated developments. AUM by Asset Class 12% 10% 12% S$21.6 billion 14% 39% AUM by Country 9% 9% 19% S$21.6 billion 52% 7% 3% 2% 1% 8% 2% 1% S$b Business Park 8.5 Office 2.9 Logistics 2.6 Hi-Specs Industrial 2.5 Light Industrial 2.1 Hospitality 1.6 Tier 1 Development 0.6 Residential 0.5 Retail 0.3 S$b Singapore 11.1 China 4.2 Australia 2.0 India 1.9 Korea 1.6 Japan 0.5 SEA 0.2 Leveraging our diverse portfolio of income-yielding assets and green field developments, we have grown our fund management business through our listed platforms. We also work with institutional capital partners on a series of private equity real estate funds and co-investment projects, upholding strong corporate governance to deliver value to our investors. 21% 8% Listed Funds Private Funds Co-investment Total Funds AUM as at 31 Mar 2016 S$17.3 Billion 71% 13% 6% Core Opportunistic Valued-added The three listed platforms are Ascendas REIT (A-REIT), Ascendas India Trust (a-itrust) and Ascendas Hospitality Trust (A-HTRUST). Information on their performance for FY15/16 are available from pages 46 to 47. Japan Asean PRIVATE FUNDS Our institutional capital partners include global pension funds, insurance funds, institutional multi-managers, corporates and sovereign wealth funds. Our 11 private funds are: 81% 10% 11% 9% 13% 4% 1% Singapore China India Korea Australia 52% Fund Investment Mandate 1. Ascendas China Commercial Fund 2 Commercial office in China s Tier 1 city 2. Ascendas China Business Parks Fund 2 Business park asset in Suzhou 3. Ascendas China Business Parks Fund 4 Business park and industrial assets in China s key cities 4. Ascendas India Development Trust Industrial and business park assets in India s key cities 5. Ascendas India Growth Programme IT and business park assets in India s key cities 6. Ascendas ASEAN Business Space Fund Mixed development and business space assets in ASEAN countries 7. Ascendas Korea Office Fund 1 Office building in South Korea 8. Ascendas Korea Office Fund 2 Office building in South Korea 9. Ascendas Korea Office Private Real Estate Investment Trust 1 Office building in South Korea 10. Ascendas Korea Office Private Real Estate Investment Trust 2 Office building in South Korea 11. Ascendas Korea Office Private Real Estate Investment Trust 3 Office building in South Korea 44 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/2016 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/

25 FUNDS MANAGEMENT We manage our funds business based on clear operating tenets to optimise returns for our investors by adopting an integrated fund manager-developer model. Our investors and partners can be assured of our long-term commitment as a sponsor, because we maintain an equity stake in all our funds and co-investment projects. To safeguard the interest of our capital partners, we commit to the following policies: The fund or co-investment programme to determine the best-use, direction and destination of the assets. In the event of a conflict, there is an established process for asset valuations to be fairly determined by the advisory or independent investment committee members. We work with like-minded capital partners to achieve the optimum outcome for the investment mandate and asset performance. LISTED TRUSTS Ascendas REIT Ascendas REIT (A-REIT) is Singapore s largest business space and industrial real estate investment trust and is one of the 30 constituents of the FTSE Straits Times Index. As of 31 March 2016, A-REIT owns a diverse portfolio of 103 properties in Singapore, 27 properties in Australia and three in China, comprising over 3.8 million sq m Gross Floor Area (GFA) of space. A-REIT s total assets under management stood at S$9.9 billion as at 31 March A-REIT achieved a full-year distribution per unit (DPU) of cents (after performance fee), an increase of 5.2% over FY14/15 DPU of cents. This was underpinned mainly by contributions from new properties, Hyflux Innovation Centre, The Kendall and ONE@Changi City in Singapore, and the Australian properties. Higher occupancy at Aperia in Singapore and positive rental reversions of 7.0% over preceding contracted rental rates also contributed to the higher DPU. Some key highlights in FY15/16 include: Investing into the future A-REIT acquired S$1.5 billion worth of assets in Singapore and Australia. Its maiden acquisition in Australia (AUD1.1 billion) comprises 26 freehold logistics properties located in the key cities of Sydney, Melbourne, Brisbane and Perth, with one additional asset subsequently acquired in February The strategic investment enabled A-REIT to gain immediate scale in a new market and establish itself as the eighth largest industrial landlord in Australia. In Singapore, A-REIT acquired its seventh property in Changi Business Park, ONE@Changi City, valued at S$439 million. Prudent capital management To fund A-REIT s new acquisitions in Australia and Singapore during the year, the Manager raised S$855 million through perpetual securities and equity issuances. A-REIT s aggregate leverage stood at 37.3%. To minimise re-financing risk and interest rates volatility, no more than 20% of total debt is due for refinancing in any one year and 71.9% of A-REIT s debt is fixed. Exercising good corporate governance A-REIT was the winner of the Most Transparent Company Award for the fifth consecutive year at the Securities Investors Association of Singapore (SIAS) Investors Choice Awards 2015 and was the runner-up for the Singapore Corporate Governance Award in the REITs category. Ascendas India Trust Ascendas India Trust (a-itrust), a business trust listed in Singapore, manages about 840,000 sq m of business space in India. The Trust owns six completed IT parks spread across three cities, namely International Tech Park Bangalore (ITPB), International Tech Park Chennai (ITPC) and CyberVale in Chennai, and The V, CyberPearl and avance Business Hub (avance) in Hyderabad. Over 290 tenants and around 96,000 skilled employees work in these parks. The portfolio s committed occupancy stood at 96% as at 31 March a-itrust achieved 11% revenue growth in Indian Rupee terms in FY15/16. Its topline growth was supported by positive rental reversions, higher average occupancy and income from the newly acquired CyberVale and avance 3. Since listing in 2007, a-itrust has grown its portfolio s leasable area, Indian Rupee revenue and net property income at a compound annual growth rate of 11%, 12% and 13% respectively. The Trust will grow by progressively developing its land bank with 266,000 sq m of potential leasable area in ITPB. a-itrust recently completed Victor, a new 58,000-sq m IT building in Bangalore, which has achieved 100% lease commitment. In addition, the Trust is developing a new 38,000-sq m IT building at The V in Hyderabad. a-itrust is also expanding through the purchase of stabilised properties from third parties and its sponsor, Ascendas- Singbridge Group. In December 2014, a-itrust announced the forward purchase of BlueRidge 2, a 141,000-sq m IT Special Economic Zone (SEZ) at an estimated consideration of up to S$133 million 6 (INR6.4 billion). The acquisition marks a-itrust s entry into Pune, an important market for both existing and potential clients. In July 2015, a-itrust acquired avance 3, a 63,000-sq m IT building in Hyderabad for S$63 million 6 (INR2.9 billion). In March 2016, a-itrust also acquired a third building in CyberVale of 26,000 sq m at an estimated total cost of S$15 million 6 (INR0.8 billion). a-itrust consistently applies green technology and sustainable practices to its existing portfolio and new developments. In FY15/16, The V in Hyderabad was awarded the Platinum rating by the Indian Green Building Council (IGBC) and became the first IGBC Platinum rated IT Park in India. In addition, six of our buildings in ITPB have been awarded the US Green Building Council Leadership in Energy & Environmental Design (LEED) or IGBC Gold certification. Ascendas Hospitality Trust Ascendas Hospitality Trust (A-HTRUST) is one of the first listed Pan-Asian hospitality trusts, and owns 11 quality hotels with a portfolio valuation of S$1,524.7 million as at 31 March A-HTRUST s well-diversified portfolio is spread across seven key cities in the Asia Pacific region - Sydney, Melbourne, Brisbane, Beijing, Tokyo, Osaka and Singapore. Within these cities, the hotels are strategically located in close proximity to central business districts (CBD), transportation nodes and iconic tourist landmarks. The hotels are operated under well-known brands and managed by established operators who have strong domain knowledge of the markets where the hotels are located. With a total of 4,351 rooms, these hotels cater to different segments from economy to upscale, as well as shortterm to extended stay. A-HTRUST completed its maiden divestment in June 2015 when it sold Pullman Cairns International for a consideration of AUD75.1 million, which represented a premium of 12% to its latest valuation as at 31 March In December 2015, A-HTRUST entered into a forward agreement with a wholly-owned subsidiary of Malaysian property developer, UEM Sunrise Berhad, to acquire the 252-units serviced apartment component of Aurora Melbourne Central for AUD120.0 million. Aurora Melbourne Central is a mixed-use development which is expected to be completed in Strategically located in the heart of Melbourne CBD with direct access to Melbourne Central Railway Station, the iconic 92-storey development will be one of the tallest buildings in Melbourne CBD. On 1 April 2016, Hotel Sunroute Osaka Namba in Japan opened its doors to welcome its first guests after its JPY1.1 billion makeover. A-HTRUST will continue to enhance its portfolio through active asset management and value-adding acquisitions. In April 2015, A-HTRUST also successfully issued its first series of stapled notes. The issuance, which amounted to S$75 million on a five-year tenor, saw strong demand from investors. In FY15/16, A-HTRUST s distributable income grew by 13.2% year-on-year (y-o-y). Despite retaining 5% of the distributable income, distribution per stapled security for FY15/16 increased by 6.9% y-o-y to 5.41 cents. Overall, the underlying performance of the portfolio has improved in FY15/16. In particular, the hotels in Sydney, Melbourne and Tokyo registered strong growth, while the hotels in Beijing also improved despite challenging conditions. However, the performances of the hotels in Brisbane and Singapore were affected by soft market conditions in these respective cities. 6 Converted into S$ using spot exchange rate at the time of acquisition/ investment. 46 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/2016 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/

26 COUNTRY OPERATIONS SINGAPORE FAR LEFT : ASCENT, SINGAPORE SCIENCE PARK LEFT TOP : NUCLEOS, SINGAPORE LEFT BOTTOM : DSO NATIONAL LABORATORIES (PHASE 2), SINGAPORE In FY15/16, we reaped the benefits of our efforts to curb rising operating expenses. We achieved significant savings totalling S$33 million, mainly from bulk-tender procurement of maintenance works services and electricity supply. Our Singapore operations performed well in FY15/16. Including Ascendas REIT s portfolio, we grew our total Assets Under Management (AUM) in Singapore to S$11.1 billion as at 31 March A key highlight of the year was the successful bid for the coveted 79 Robinson Road (also known as CPF Building), a prime office site in the central business district (CBD). The win marks our maiden foray into the Grade-A CBD office market which strongly complements our core business park space. We also scored a first by securing the contract to develop an 8,400-sq m build-to-suit (BTS) facility for Aetos Holdings Pte Ltd, one of Singapore s leading security solutions providers. The building is scheduled to complete in In September 2015, we completed a BTS facility for DSO National Laboratories (DSO). The 8-storey DSO (Phase 2) building provides a total Gross Floor Area (GFA) of approximately 46,000 sq m, and strengthened DSO s position as one of Singapore Science Park s lead tenants. The total area leased to DSO is approximately 69,000 sq m across both Phases 1 and 2. Our properties held up well with strong demand for the high-quality integrated development, Galaxis, located at Fusionopolis in one-north. Galaxis has a full occupancy, with creative, media and IT enterprises located in the work lofts and its business park tower featuring Grade-A tenants including Canon, Garena Online, Oracle, Lloyds Register, MSD and Hitachi. We also achieved full occupancy at Infinite Studios, Mediapolis, which houses the first commercial soundstages in Singapore. Nucleos at Biopolis, a dedicated facility for biomedical, pharmaceutical and bio-science companies, has also reached 70% occupancy. Ascent, an exciting integrated development in Singapore Science Park, achieved close to 50% pre-commitment for its business park space before completion in March Located next to Kent Ridge MRT Station, Ascent comprises a 7-storey business park block, ground-floor retail and F&B units as well as a spacious lobby sporting a modern design infused with collaborative co-working spaces. As part of the Singapore Science Park rejuvenation, we will be redeveloping two land plots at the former Fleming and Faraday sites. Offering a total GFA of about 25,000 sq m, it will be part of a fullyintegrated development as we transform Singapore Science Park into a lush and modern campus ideal for start-ups, young companies and multinationals to collaborate and network with one another. Featuring a pedestrian-centric design, this integrated development will enhance connectivity throughout the park. During the year, we rolled out a structured training programme for our frontline employees and contractors to raise service standards. Initial feedback from our customers have been encouraging, stating a noticeable improvement in customer experience. We installed Automatic Meter Readers (AMR) at our multi-tenanted buildings, which eliminated potential errors due to manuallyrecorded meter readings. A project to test-bed Robotic Cleaning was also carried out at two buildings, Aperia and Galaxis. We completed our collaboration with BOSCH to install Building-Integrated Photovoltaics (BIPV) materials on Ascent building. The initiative converts passive aluminium panels on the building s east façade into active photovoltaics panels that generate about 24,000 kilowatt hour (kwh) of energy each year. Following this successful initiative, we are working with Heliatek to implement Organic Photovoltaics film at Teletech Park, which will reduce the overall building heat load and provide an alternative source of energy. 48 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/2016 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/

27 COUNTRY OPERATIONS CHINA FAR LEFT : SINO-SINGAPORE GUANGZHOU KNOWLEDGE CITY, CHINA LEFT : ASCENDAS XINSU SQUARE, SUZHOU, CHINA Singapore s experience and expertise, with the help of Agri-Food Technologies Pte Ltd, the consultancy arm of Singapore s Agri-Food and Veterinary Authority. The first SSJFZ-branded food product, Brilliance's Fragrance 43 N japonica rice, was introduced to Singapore. Fragrance 43 N japonica rice is harvested, processed, and imported in compliance with SSJFZ s IFSS. A second shipment of the japonica rice is being ordered. Our AUM in China totalled up to about S$4.2 billion, which includes large-scale development projects such as Sino-Singapore Guangzhou Knowledge City (SSGKC) and Sino-Singapore Jilin Food Zone (SSJFZ). URBAN DEVELOPMENTS We made steady progress in the development and attraction of key investments to seed industry activities at the Southern Start-up Area (SUA) of SSGKC. Construction of the road, rainwater harvesting, waste water and recycled water infrastructure has been substantially completed within budget and scheduled for handover to the municipal government. Ascendas OneHub GKC, an integrated development located in the SUA comprising residential apartments, business space and lifestyle amenities, is progressing on schedule. Two multi-tenanted business blocks are completed and will be welcoming its first tenants, which include Nicolabs Biotech, Dentalthon Medtech, Sang Choy International and Bank of China. We commenced the sale of residential and Construct-to-Sell (CTS) units in Phase 1 in mid-2015, of which 54% of the 302 residential units launched and three of the CTS units were sold. Other residential development projects within SSGKC are also on schedule. Investment promotion efforts drew in an estimated S$814 million (US$590 million) into SSGKC, which comprises investments by knowledge-intensive companies and specialists in robotics, big data, cloud computing and advanced manufacturing. The Singapore Centre, a joint initiative with International Enterprise (IE) Singapore and Action Community for Entrepreneurship, was set up within Ascendas OneHub GKC, to help companies gain market access and provide one-stop services in investment consultancy, government facilitation, business matching, and company registration and set-up. In line with the objective to leverage and share Singapore s software experience, several strategic collaboration initiatives were established in the areas of research and development, executive learning and intellectual property protection. In November 2015, the Joint Research Institute initiative with Nanyang Technological University and South China University of Technology was officiated at a signing ceremony witnessed by Singapore Prime Minister Lee Hsien Loong and Chinese President Xi Jinping in Singapore. In October 2015, the initiative to set up the Centre of Excellence for Software Transfer (CREST) was inked during the Joint Council for Bilateral Cooperation meeting, witnessed by Singapore Deputy Prime Minister Teo Chee Hean and Chinese Vice Premier Zhang Gaoli. In Jilin, a visioning exercise was conducted to develop a comprehensive strategy and master plan for the development of SSJFZ, with specific focus on the industry value chains and supporting amenities to be set up within the zone. SSJFZ is the first agricultural collaboration between Singapore and China, and is built on the premise of a Foot and Mouth Disease Free Zone, with an Integrated Food Safety System (IFSS) of international standards to safeguard the integrity of food supply. IFSS is a set of safety standards established based on To-date, SSJFZ has attracted about 15 projects in food industries, complementary services, and real estate developments. Investment promotion efforts will continue to focus on attracting companies with interest in safe food production in the areas of aquaculture, infant milk formula, dairy production and greenhouses. Besides the japonica rice, other products from Jilin that meet the requirements of IFSS are also being selected for export. The Singapore-Sichuan (Chengdu) Hi-tech Innovation Park (SSCIP) and Raffles City Chongqing projects are developing steadily. In SSCIP, the arterial roads are substantially completed. With the subway line linking Chengdu s city centre in operation, connectivity to the SSCIP has significantly improved. Xinchuan Park Lake, a key landscape project within the Park, is substantially completed, and a total of 11 investors have successfully acquired 48.5-hectares of land within the Park for development. Main construction work at Raffles City Chongqing have commenced in May As at 31 March 2016, piling work for seven out of the eight towers is completed. 50 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/2016 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/

28 COUNTRY OPERATIONS INDIA ASCENDAS LOTUS BUSINESS PARK, SHANGHAI, CHINA BUSINESS PARK DEVELOPMENTS We continue to enhance the performance and focus on the timely delivery of our business park development projects. In Shanghai, we ramped up the occupancy rate at Ascendas Lotus Business Park to about 56% with key tenants such as Pfizer and Fuji Xerox. Meanwhile, we completed retrofitting works at Ascendas i-link, which was acquired in the fourth quarter of FY15/16. At Ascendas Xinsu Square in Suzhou Industrial Park, the conversion of part of the industrial space to business and office uses is expected to complete by August Comprising six R&D buildings offering 72,000-sq m of business space, the redevelopment will enhance Ascendas Xinsu Square's asset value and enable companies to locate their production operations as well as corporate offices within the park. We are in the process of expanding Dalian Ascendas IT Park with the development of a fifth multi-tenanted building. The 11-storey office building is expected to complete in FY16/17, and will add 30,000 sq m of leasable area to the well-occupied park. In Xi an, the development of Ascendas Innovation Towers, comprising two office buildings, is on track to complete in When completed, Ascendas Innovation Towers will deepen our presence in Xi an by offering 94,756 sq m of quality business space to meet the growing demand from our existing and new customers. In Hangzhou, we are on track to complete the Phase 2 development of Singapore-Hangzhou Science and Technology Park, which will provide ten R&D buildings with a total GFA of approximately 166,000 sq m. In an effort to attract Singapore start-ups and innovation enterprises, we collaborated with Singapore MIT Alliance for Technology Research (SMART) and the Hangzhou government to set up a project incubation innovation centre within the Park. INTERNATIONAL TECH PARK PUNE, INDIA As at 31 March 2016, the Group s AUM in India amounted to S$1.9 billion, which comprises completed business space, and land under or awaiting development. Our developments in Pune and Chennai are on schedule and we have started a new project in Gurgaon under the Ascendas India Growth Programme. In addition to those reported under a-itrust, some highlights of our India operations for the year are: In Pune, Cedar, Phase 1 of International Tech Park Pune, is now fully-leased to Synechron Technologies Private Limited, a leading IT solutions company. The construction of Phase 2, Juniper, which has a leasable area of 57,670 sq m, has been substantially completed and obtained pre-commitment from Infosys for the entire building. Development of Phase 3, Cypress, will commence in FY16/17. In Chennai, industrial activity stepped up in OneHub Chennai, with Hitachi Automotive Systems commencing commercial production in April In September 2015, Ajinomoto India celebrated the inauguration of their facility within the 585-hectare industrial township while Takasago and Maruchan Ajinomoto are scheduled to commence operations by mid Liwayway, a Philippine snack manufacturer, is also planning to commence construction of its facility within the township by end ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/2016 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/

29 COUNTRY OPERATIONS KOREA SOUTHEAST ASIA SIGNATURE TOWERS, SEOUL, KOREA As at 31 March 2016, Ascendas-Singbridge s AUM in Korea reached S$1.6 billion, which comprises five office buildings. With the acquisition of a new office asset, Jongro Place in Seoul, our total GFA increased to 272,657 sq m. Our five assets in Korea are held and managed by independent singleasset funds, namely Ascendas Korea Office Fund 1 and 2, Ascendas Korea Office Private Real Estate Investment Trust (AKOPREIT) 1, 2 and 3. Leveraging our fund management license and expertise in Korea, we set up AKOPREIT 3 to acquire Jongro Place, with three local financial institutions as equity partners in the fund. Jongro Place is a stabilised office asset in Seoul CBD, with a value of about S$290 million. A five-year old building, the 14-storey Jongro Place enjoys a high occupancy of over 96% and is in excellent condition. Our success in retaining major tenants such as Citibank and Wooricard in our existing assets underpinned our good performance in Korea for FY15/16. Our portfolio maintained a strong average occupancy of about 97% and generated close to 6% of Net Property Income yield, compared to a market yield of 5%. ONEHUB PURI, GREATER JAKARTA, INDONESIA During the year, our Southeast Asia operations entered Indonesia through a joint venture with a local property developer to build an integrated mixed-use Business Park in Greater Jakarta. Our portfolio in Southeast Asia totalled to an AUM of S$179.7 million as at 31 March 2016, and will generate a Gross Development Value of S$654.8 million. INDONESIA In May 2015, we partnered PT Metropolitan Karyadeka Development on a 9.7-hectare mixed-use development in Tangerang, Greater Jakarta. Named OneHub Puri, the development is strategically located next to the new Karang Tengah Toll Exit on Jakarta Merak Toll Road and is just 25-minutes drive from Jakarta CBD. Located just 10 kilometres from Soekarno-Hatta International Airport, the integrated development is poised to be a prime destination for businesses and a vibrant lifestyle community. Phase 1 of the project, which consists of high-rise apartment blocks, office tower and amenities, is expected to complete construction in end MALAYSIA In Malaysia, we completed the first cluster of readybuilt facilities in our flagship development, Nusajaya Tech Park, in February More than 73% of the 21 facilities, which are located within the 50-hectare Phase 1, were sold ahead of its completion. We have commenced the construction of the second cluster to cater to the demand from manufacturing investments in Iskandar Malaysia. We established a collaboration with local telecommunications giant, Telekom Malaysia (TM Group), to develop a purpose-built data centre within Nusajaya Tech Park. Situated on 3.2 hectares of land, the VADS Nusajaya Data Centre will be the first of two major centres planned by TM Group to meet rising demand. We are making good progress on the construction for the data centre, which commenced in October ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/2016 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/

30 COUNTRY OPERATIONS PORTFOLIO DETAILS PORTFOLIO AS AT 31 MARCH 2016 Name Product Type Effective stake Total Net Lettable Area (sq m) SINGAPORE Admirax Light Industrial 100% 43,585 Ang Mo Kio Land Lease Light Industrial 100% - Ascent Business Park 100% 44,090 Built-To-Suit (BTS) for Pratt & Whitney at Seletar Light Industrial 100% 14,948 Aerospace Park BTS for Aetos 1 Business Park 100% 8,430 BTS for Det Norske Veritas Business Park 100% 9,855 BTS for DSO National Laboratories Business Park 100% 68,746 Chadwick/Curie/Cavendish Business Park 100% 20,670 Galaxis Business Park 75% 58,554 ICON@IBP Business Park 100% 33,105 Infinite Studios Business Park 70% 19,005 Nucleos Business Park 100% 36,593 Redevelopment of CPF Building 2 Office 100% 45,281 Science Park I Land Leases Business Park 100% - Science Park II Land Leases Business Park 100% - The Aquarius Business Park 100% 3,052 The Franklin Business Park 100% 7,285 Teletech Park Business Park 100% 16,056 Fleming & Faraday 3 Business Park 100% - ONE@Changi City 4 Business Park 50% - ABOVE LEFT: NUSAJAYA TECH PARK, JOHOR, MALAYSIA ABOVE RIGHT: ONEHUB SAIGON, HO CHI MINH CITY, VIETNAM On 28 July 2015, we extended our strong partnership with Mitsui & Co to Malaysia, to jointly offer build-to-suit properties for lease in the park. Through this joint venture, Nusajaya Tech Park is positioned as an ideal gateway for Japanese corporations to invest in Iskandar Malaysia and grow their presence in the region. A 10.7-hectare land area will be set aside for this development within the 210-hectare development. VIETNAM We broke ground for the OneHub Saigon project in Ho Chi Minh City on 1 October An integrated business park located at the main entrance of Saigon Hi-Tech Park, the 12-hectare OneHub Saigon will comprise quality business space, lifestyle amenities, educational facilities and home offices. To be developed in three phases over a sevenyear period, OneHub Saigon will provide a vibrant and seamless work-live-play-learn environment for its tenants and the surrounding community when completed. In Binh Duong, we saw a significant increase in demand for our 500-hectare Ascendas-Protrade Singapore Tech Park (APSTP) during the second half of 2015 as a result of Taiwanese companies expanding or relocating from China. As at 31 March 2016, 43 companies have invested in the park, of which 22 have commenced operations. Many of the remaining companies have started construction of their factories and will begin operations gradually from As an enhancement to the integrated customer solutions that we are providing to our tenants, we started business matching services for our customers, which culminated in the establishment of three industry clusters within APSTP. We are also enhancing our customer experience through providing assistance in sourcing for technical and production workers to meet their manpower needs. 56 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/2016 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/

31 PORTFOLIO DETAILS PORTFOLIO AS AT 31 MARCH 2016 Name City Product Type Effective Stake Total Net Lettable Area (sq m) Name City Product Type Effective Stake Total Net Lettable Area (sq m) CHINA Ascendas C62 Park (i-link) Shanghai Business Park 100% 21,540 Ascendas ihub Suzhou 1A Suzhou Business Park 40% 38,700 Ascendas ihub Suzhou 1B Suzhou Business Park 40% - Ascendas ihub Suzhou 1C Suzhou Business Park 40% 103,661 Ascendas Innovation Hub Xi an Business Park 18% 34,736 Ascendas Innovation Towers 5 Xi an Business Park 23% 120,000 Ascendas Lotus Business Park Shanghai Business Park 23% 32,426 Ascendas OneHub GKC 6 Guangzhou Business Park 76% 600,000 Ascendas Plaza Shanghai Office 93% 39,255 Ascendas-Xinsu Suzhou Light Industrial 23% 280,685 Beijing BDA Beijing Light Industrial & Logistics 99.7% 26,345 BTS for Foseco Tianjin Light Industrial 100% 8,136 Dalian Ascendas IT Park Dalian Business Park 50% 143,533 Horizon Lakeview Guangzhou Residential 60% - Raffles City Chongqing Chongqing Mixed-use Development 37.5% - Singapore-Hangzhou Science & Hangzhou Business Park 80% 95,576 Technology Park Singapore-Sichuan (Chengdu) Hi-tech Chengdu Tier-1 Development 25% - Innovation Park Sino-Singapore Guangzhou Knowledge Guangzhou Tier-1 Development 50% - City Sino-Singapore Tianjin Eco-City Tianjin Tier-1 Development 5% - Tianjiao Project Guangzhou Residential 100% - Xingsheng Project Guangzhou Residential 100% - INDIA OneHub Chennai Chennai Light Industrial 10% - Ascendas OneHub Coimbatore Coimbatore Business Park 13% - Ascendas OneHub Gurgaon Gurgaon Business Park 13% 51,058 International Tech Park Gurgaon Special Gurgaon Business Park 30% - Economic Zone (SEZ) 1 International Tech Park Gurgaon SEZ 2 Gurgaon Business Park 13% - International Tech Park Pune Pune Business Park 74% 61,428 KOREA Anam Tower Seoul Office 66% 15,001 Citibank Center Seoul Office 6% 19,752 Jongro Place Seoul Office 48.8% 45,735 Signature Towers Seoul Office 30% 99,997 West Finance Center Seoul Office 57% 92,173 MALAYSIA Nusajaya Tech Park Johor Light Industrial 60% - VIETNAM Ascendas-Protrade Singapore Tech Park Binh Duong Light Industrial 14% - OneHub Saigon 7 Ho Chi Minh City Business Park 60% 357,000 INDONESIA OneHub Puri 8 Jakarta Business Park 49.99% 677,746 AUSTRALIA Ascendas Innovation Place Sydney Office 100% 27,395 Name Effective stake LISTED ENTITIES Ascendas REIT Portfolio 9 20% Ascendas India Trust Portfolio 10 24% Ascendas Hospitality Trust Portfolio 11 27% Notes: 1. To start construction in 2Q Estimated gross floor area 2. Planned for redevelopment. Actual gross floor area 3. Planned for redevelopment 4. ONE@Changi City was divested to Ascendas REIT on 1 March Estimated gross floor area 6. Planned gross floor area 7. To start development in 2Q Allowable gross floor area 8. To start development in 2Q Estimated gross floor area 9. Ascendas REIT owns a diversified portfolio of 103 properties in Business and Science Parks, High-Specs Industrial, Light Industrial/Flatted Factories, Logistics & Distribution Centres and Warehouse Retail Facilities in Singapore; two business park properties and one Logistics Centre in China; and 27 properties in Australia, with a total net lettable area of approximately 3.24 million sq m 10. Ascendas India Trust has a portfolio comprising six IT parks in India, namely International Tech Park Bangalore (ITPB), International Tech Park Chennai (ITPC), CyberVale in Chennai as well as CyberPearl, The V and avance in Hyderabad, with a total floor area of approximately 836,000 sq m 11. Ascendas Hospitality Trust s portfolio comprises 11 hotels with over 4,351 rooms across key cities in Australia, China, Japan and Singapore 58 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/2016 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/

32 ENABLING SUSTAINABLE 30 STAFF >1,200 BONDING OVER GAMES DURING THE JUNE 2015 EMPLOYEE FORUM DEVELOPMENT GREEN BUILDING AWARDS TOTAL WORKFORCE At Ascendas-Singbridge, we see the value of being sustainable in our business practices and we are committed to be environmentally and socially responsible. These principles have helped us improve our operational efficiency and achieve sustained growth. STAFF VISIT TO SHANXI XIANYANG AI JIA BEI CHILDREN WELFARE INSTITUTE WITH DONATIONS IN BABY FOOD AND SUPPLIES 60 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/

33 SUSTAINABILITY REVIEW ABOUT THE REPORT At Ascendas-Singbridge, we see the value of being sustainable in our business practices. Post-merger, we continue to uphold our long-standing commitment of being environmentally and socially responsible. These principles have also helped us to improve our operational efficiency and bring about sustained economic growth. We have attempted to summarise our sustainability policies and performance within this inaugural sustainability report for Ascendas- Singbridge, as a continuation of our sustainability efforts. Our report was prepared in accordance with the Global Reporting Initiative (GRI) G4 guidelines Core, and the GRI Construction and Real Estate Sector Supplement (CRESS). It covers the sustainability performance of urban developments and properties 7 under our substantial operational control in Singapore, China, India and Korea from 1 April 2015 to 31 March This includes our role as a master developer for Sino-Singapore Guangzhou Knowledge City (SSGKC). Table 1: Mode of Engagement with Key Stakeholders Stakeholders Objectives of Engagement Methods of Engagement Frequency of Engagement Customers We strive to provide our Networking events Throughout the year customers with a delightful Regional customer satisfaction surveys Annually experience Tenant engagement activities Throughout the year Updates on Ascendas-Singbridge As and when there are updates developments Employees We value our people, and Chairman Tea Sessions Throughout the year are committed to fulfilling their career aspirations Company-wide employee survey - Our Voice@ASB Biennially while providing a business Employee Forums Biennially environment that inspires our people to excel Induction programmes Upon joining the Group Internal communication through the As and when there are updates Intranet Portal Wellness, sports and social activities Throughout the year Investors Local Communities We aim to provide our investors a pride of ownership and maximum shareholder value We advocate the spirit of caring and sharing within our communities Our hotel properties under the Ascendas Hospitality Trust (A-HTRUST) portfolio are excluded from this report, as they are wholly-managed by the hotel operators. In addition, we have also excluded our operations in Malaysia and Vietnam as these projects have not been completed. As we wish to focus our report on our core businesses, we have not included the operations of our power plant in International Tech Park Bangalore (ITPB). STAKEHOLDER ENGAGEMENT We understand our operations may impact on others and similarly, our stakeholders may influence various aspects of our business. Recognising this interdependency has driven us to engage proactively with our key stakeholders, so that their feedback can be incorporated to improve our business. Table 1 summarises our approach towards stakeholder engagement. Investor meetings Investor delight survey Updates on Ascendas-Singbridge developments Various Social and Community activities including those through the Ascendas- Singbridge GIVES Foundation 7 For a comprehensive list of Ascendas-Singbridge s portfolio, please refer to pages of the annual report. As and when required Annually As and when there are updates Throughout the year MATERIALITY ASSESSMENT Following the completion of our merger, we conducted a formal materiality assessment exercise in November 2015 with representatives from our Management. Our Management representatives evaluated an extensive list of environmental, social and governance issues, and ranked them according to their importance from both internal and external stakeholders perspectives. As a result, a total of 22 issues were identified as material, while two other issues were also chosen for reporting due to their significance in the local context. These issues are depicted in Figure 1. Figure 1: Material Issues Importance to external stakeholders High , , 21 Low Importance to internal stakeholders High S/N Material sustainability issues Corresponding Global Reporting Initiative (GRI) aspects 1 High Standards of Corporate Governance General Standard Disclosure 2 Business Ethics and Employee Conduct Anti-Corruption SO 3 Regulatory Compliance Compliance SO 4 Sustainable Business Growth Economic Performance EC 5 Health, Hygiene & Safety Protection of General Public Customer Health and Safety PR and Adjacent Communities 6 Security of Townships and Properties Customer Health and Safety PR 7 Security of Information Customer Privacy PR 8 Branding No GRI aspect applicable 9 End-to-end Premium Quality Solutions Product and Service Labelling PR 10 Customer Satisfaction Product and Service Labelling PR 11 Integrated Communities Local Communities SO 12 Responsible Supply Chain Management Supplier Assessment for Labour Practices SO 13 Responsible Marketing Communications Marketing Communications PR 14 Stakeholder Communications General Standard Disclosure 15 Strong Partnerships General Standard Disclosure 16 Employee/Contractor Health and Safety Protection Occupational Health and Safety LA 17 Respecting Human Rights Non-discrimination HR Human Rights Grievance Mechanisms 18 Fair Employment Practices Employment LA 19 Talent Management Training and Education LA 20 Succession Planning No GRI aspect applicable 21 Employee Well-Being and Engagement No GRI aspect applicable 22 Reducing Energy and Carbon Footprint Energy Emissions EN S/N Non-material sustainability issues chosen for reporting Corresponding GRI aspects 23 Water Conservation Water EN 24 Enrich Lives in Communities Local Communities SO 1 62 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/2016 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/

34 STRONG PARTNERSHIPS PRODUCT RESPONSIBILITY As an urban solutions provider, it is imperative that we align our interests with our host locations. To that end, we work closely with public and private sector partners to achieve common objectives that create economic value and enrich lives in our host cities. Moreover, such partnerships are invaluable as they help to facilitate sharing of know-how, best practices and planning of joint initiatives. For example, recognising the business value of strong partnerships, we have forged collaboration with various partners in the development of Sino-Singapore Guangzhou Knowledge City (SSGKC). Since 2013, we have organised the annual Sino-Singapore Knowledge Forum a knowledge-sharing platform for experts and government officials. In addition, we intend to partner with a renowned Singapore school and a Singapore-based Voluntary Welfare Organisation in the areas of education and social services respectively. THE ASCENDAS-SINGBRIDGE BRAND As a newly-merged company, it is essential that we develop a strong Ascendas-Singbridge brand identity that inspires confidence in all our stakeholders. As a leading provider of urban and business space solutions, our brand is built on our Figure 2: Focus Areas of the Ascendas-Singbridge Brand 1. Coordinating internal branding strategies and guidelines track records, as well as Singapore s reputation for quality and credibility. Our strategy around our brand identity has been focused on three key areas, as illustrated in Figure 2. Ensure consistent internal brand building to achieve consistent internal and external messaging. This was conducted via initiatives such as focused positioning, crisis communication policies, media policy and guidelines, information sources on intranet which is accessible by employees, brand ambassadors and town hall meetings. Achieve good relationship with stakeholders through initiatives such as customer engagement activities, investor meetings, corporate events, announcements and collaterals, and customer and brand surveys (For results of the brand surveys, please refer to the Tenant Satisfaction section). 2. Creating sound corporate relations initiatives 3. Seeking constant improvement on value creation of the brand Identify core drivers of value creation for Ascendas- Singbridge s brand among the current customers and prospects, and the key areas for brand growth. An external consultant was engaged to support Ascendas-Singbridge s core team in driving growth and continuous value creation. CORPORATE GOVERNANCE AND COMPLIANCE We have implemented a corporate governance framework to guide us in our operations. The framework entails policies which were developed based on our core values, including anti-corruption and whistleblowing policies. These policies are communicated to all staff at induction and annually through a graded e-learning module. In addition, updates on TOP & ABOVE : SINO-SINGAPORE KNOWLEDGE FORUM 2015 LEFT : 2016 FUTURE CHINA BUSINESS FORUM compliance matters are regularly shared by our Compliance Officer. As a result of our robust corporate governance, there were no confirmed cases of corruption or non-compliance with laws and regulations. For more details on our corporate governance, please refer to pages of the annual report. PROVIDING END-TO-END SOLUTIONS Our merger represented the integration of project origination, investment promotion, asset development, township and real estate management and value-adding customer solutions as our business offering. For instance, the vision of SSGKC is to create a smart city that catalyses industry upgrading. Beyond infrastructure and real estate development, we focus our investment promotion efforts on building a value-creating cluster of knowledgeintensive companies and innovative enterprises in infocomm technology (ICT), creative, biomedical, research and development (R&D), intellectual property services, healthcare, financial services and education. To-date, SSGKC attracted an estimated S$814 million worth of investments in these areas and is poised to be a centre of knowledge-based industry activities that will contribute to Guangzhou s economic transformation. In addition, Ascendas-Singbridge worked with International Enterprise (IE) Singapore and the Chinese Government, to set up the Singapore Centre within Ascendas OneHub GKC, offering a one-stop platform to assist companies in investment consultancy, government facilitation, business matching, company registration and set-up. To create a conducive environment for technology innovation and R&D, an Intellectual Property Rights Utilisation and Protection Hub (IPR Hub) will be developed within SSGKC to offer intellectual property services. The IPR Hub will host the Guangzhou Intellectual Property Court and China s State Intellectual Property Office (SIPO) Guangdong Patent Examination Center. We are also working with the Intellectual Property Office of Singapore (IPOS) to open its China representative office in the IPR Hub. In another example, we observed a growing demand among businesses to tap on start-ups and innovative enterprises to drive business growth. In FY15/16, we launched the AIRmaker accelerator programme, a partnership between Ascendas- Singbridge, Infocomm Investments Pte Ltd (IIPL) and China s Runyang Group, to connect our customers with the start-up community and meet their business needs for innovation. Furthermore, a mobile platform is currently being conceptualised to provide more value-added services to our customers. 64 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/2016 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/

35 PRODUCT RESPONSIBILITY HEALTH, SAFETY AND SECURITY Table 2: Workplace Safety Key Performance Indicators Targets Zero reportable workplace-related incidents for employees in Singapore 4 incidents, for reasons explained in Page 67 Zero cases of work-related back injuries and strains caused by lifting operations for employees in Singapore Achieved Driven by our commitment to be a responsible developer and landlord, we place strong emphasis on safeguarding of health, safety and security of our tenants, visitors and employees at all times. To achieve this, we have implemented a Workplace Safety and Health Management System (WSHMS) across our local and overseas operations. Our Table 3: Elements of WSHMS Safety training and campaigns Safety risk assessment Emergency preparedness All our employees undergo a compulsory safety induction course. The safety knowledge is further reinforced through various campaigns on workplace safety. In FY15/16, 20 safety messages were disseminated via Ascendas-Singbridge s intranet portal. We carry out risk assessment and ensure that all control measures are implemented prior to any work activity. In addition, our onsite employees are trained to handle situations which require safety intervention. In line with the Singapore Fire Safety Act, we have formed Company Emergency Response Teams (CERT). Standard operating procedures and emergency preparedness exercises are in place to mitigate various emergency situations. Public health management Incident reporting and investigation Safety performance monitoring We carry out regular pest control activities to prevent the outbreak of dengue. In addition, we have developed a Business Continuity Plan in the event of pandemics and contagious diseases, as well as a haze mitigation plan. Safety incidents within our properties can be highlighted by tenants, visitors, and employees by submitting the Incident Reporting Form. Subsequently, each reported incident is investigated by the Safety Committee to find the root cause and determine the corrective actions going forward. WSHMS is both internationally and locally recognised with Occupational Health and Safety Management System (OHSAS) 18001, BizSAFE Star, and SS 506 Singapore Standard on Occupational Safety and Health Management certifications. Various elements under the WSHMS are summarised in Table 3. Our internal auditors proactively identify safety lapses and communicate their findings to our dedicated Safety Committee. A monthly meeting is held by the Safety Committee to track and discuss Ascendas-Singbridge s safety performance. In compliance with the relevant laws, we require our contractors to provide workmen s accident compensation insurance for their employees. Although not mandated by law, we have also taken public liability insurance to provide compensation to visitors impacted by our operations. Safety Performance In FY15/16, there were no safety accidents affecting our employees, visitors and contractors in our overseas operations. While there were some unfortunate safety accidents affecting our employees and visitors in Singapore, there were no safety accidents affecting our contractors during the year. We noted that the two common causes for the safety incidents in FY15/16 were slip and fall, as well as personal safety lapses during physical activities. To address these issues, we supplied a blower to dry the floor each time after washing, in addition to providing anti-slip mats and putting up Wet Floor signs. We also conducted safety briefings prior to the commencement of physical activities during our company events. Figure 3: Number of incidents/accidents in our properties 2 1 FY 14/15 FY 15/16 Employees 4 2 Visitors Property Security To complement our WSHMS, we have incorporated a threetier security system within our properties as depicted in Figure 4. Figure 4: Our approach to property security Level 3 Security of tenant premises Individual tenants install their own security access systems at their units to detect breaches. Level 2 Security of common areas within buildings CCTVs, Security Access System and frequent guard patrols are in place within the buildings. Level 1 Security of compound / external areas CCTVs and frequent guard patrols ensure the space is secured. We adopted more stringent security measures for selected overseas operations with a higher security threat. In India, for example, a hologram identification sticker is pasted on all employee vehicles. Moreover, we installed vehicle arrestors at the main entrances, and power fencing along the boundary walls of our business park. With the rise of terrorism activities globally, we have established partnerships with the local police, the State Intelligence Bureau and the Centre for Counter Terrorism. There have been no reports of trespassing violations or incidence of theft in India. Security of Information As a trusted business partner to our tenants, safeguarding the security of our tenant and their company information is our utmost priority. Besides complying with the Personal Data Protection Act (PDPA) and MAS Technology Risk Management Guidelines (MAS TRMG), we implemented an information security system as illustrated in Figure 5. The system s policies and procedures are constantly reviewed and revised to adapt to the changing landscape of threats and vulnerabilities. 66 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/2016 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/

36 PRODUCT RESPONSIBILITY Figure 5: Ascendas-Singbridge's information security system Policies 1. Information Security Policy 2. Ascendas Integrated Technology Risk Framework 3. Bring Your Own Device Directive 4. Personal Data Protection Directive 5. Incident Response Plan Systems 1. Central Directory Services - Provides strong authentication and security functionalities 2. Data Loss Prevention - Secures personal data and protects intellectual property 3. Mobile Device Management - Secures and supports mobile devices use. 4. PDPA System of Do Not Call Registry Check 5. Regular System Maintenance 6. Real time monitoring of unauthorised changes in the Central Directory In Singapore, we continued our partnership with Singapore s Health Promotion Board to implement Healthy Workplace Ecosystem programme, which introduces fitness amenities, activities and healthier dining options for our employees, tenants and visitors at our properties. In FY15/16, we successfully rolled out Healthy Workplace Ecosystem in all property clusters in Singapore, with positive responses and participation from our customers. In one of our properties, the Oasis, we provide an exclusive and complimentary membership programme for tenants called the OASIS Club Membership, which entitles tenants to use selected fitness clubs, facilities, and enjoy discounts at selected food and beverages outlets. RESPONSIBLE MARKETING COMMUNICATIONS We recognise the importance of communicating responsibly and providing reliable information to our valued stakeholders. A dedicated Corporate Communications department performs internal review of communication and marketing materials in cooperation with the other departments. This helps to ensure that our marketing materials convey fair, accurate and timely information to the public. In addition, we observe the PDPA at all times by appointing a Data Protection Officer to administer the Do-Not-Call (DNC) Registry system. All telephone numbers are checked against the DNC Registry before we perform any marketing communications. CUSTOMER SATISFACTION Customer satisfaction is critical for our business success. We strive to provide our customers with the best solutions to meet their needs and continually assess their satisfaction through our annual eq Benchmarking External Customer Delight Survey 8. Table 4 and Figure 6 depict our customer satisfaction survey results for FY15/16. Specific Actions 1. Regular communication to employees on the corporate use of encryption and PDPA 2. Annual Information Security Training & Awareness programme for employees in China 3. Regular Information Security reports and meetings to track and raise any security issues 4. Regular IT audits Table 4: Targets and Results for Customer Satisfaction FY15/16 target FY15/16 performance Customer eq index at or above the industry norm Achieved for Ascendas overall, China, India and Korea Not achieved for Ascendas Singapore, with one point below the industry average In FY15/16, we implemented a system which conducts real-time monitoring of unauthorised critical changes in the Central Directory. This has helped to improve our information breach detection capability by detecting suspicious network activities promptly. As testament to our effective information security system, there was no security breach of tenant privacy or loss of tenant information noted in FY15/16. INTEGRATED COMMUNITIES Beyond meeting the needs of our customers, we create a conducive and integrated work-live-play-learn environment for our stakeholders. This is especially true in our townplanning and larger-scale development projects, where we provide a seamless combination of high-quality business, lifestyle, retail and hospitality spaces within each project. In SSGKC, this was actualised through equal land apportionment for residential, industrial, and amenities purposes. Various facilities and developments will also be rolled out to make SSGKC an Eco-friendly, Smart and Learning City. This ethos is the foundation of developing the integrated ecosystem of smart city technologies in the Start-Up Area (SUA). Public services, commercial business and community needs will be harmonised through the economic drivers of eservices, emobility, ehealth and Energy Management, underpinned by strong protection of intellectual property rights. The centrallylocated Neighbourhood Centers within residential districts will form a core around which schools, sporting facilities, recreational outlets and other amenities will be developed to meet the needs of the residents. In addition, we leveraged Singapore s experience in partnering with Voluntary Welfare Organisations (VWO) and worked with Thye Hua Kuan Moral Society to set up family service centres in SSGKC. Since the initial setup in 2011, the Thye Hua Kuan Family Service Centre has been consolidated into an integrated family service centre within SSGKC, providing services for children and youth, family, elderly, disabled and volunteers. The centre is now popular and wellreceived by the residents in the area. Figure 6: Ascendas-Singbridge s customer satisfaction results in FY15/ Overall Singapore China India Korea Industry average Ascendas-Singbridge performance While we narrowly missed our target for Singapore, we have taken this opportunity to better understand our customers needs. For instance, we noted from the survey that property management is an area that we can improve on. As a follow-up, we are leveraging technology to enable a Mobile Inspection System which facilitates site inspections and institutionalises work routines in the coming year. In addition, we have rolled out the Service Culture Project to all properties in Singapore, with the aim of addressing our customers' needs from an outside-in perspective. At the initial stage of this project, we held focus group discussions with our customers to understand their needs before we implement the Service DNA training programme. Under this training programme, our employees were coached on the new service standards and behaviours so that they are able to respond to customers' needs more effectively. 8 The FY15/16 eq survey did not cover town developments as it was done prior to the merger of Ascendas and Singbridge 68 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/2016 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/

37 PRODUCT RESPONSIBILITY ENVIRONMENT RESPONSIBLE SUPPLY CHAIN MANAGEMENT Supply chain is integral to our operations, with about 1,235 suppliers supporting us in the areas of construction, maintenance, cleaning, security, and others. For such a diverse and interlinked supply chain, we strive to uphold quality and sustainable practices for all our suppliers. Supplier Screening Stringent criteria are applied in our supplier screening process. These criteria are multi-faceted, covering multiple aspects such as the suppliers financial health, track records on quality, litigation history, as well as sustainability certifications. For instance, our suppliers must be at least either BizSAFE level 3 certified, holding Cleanmark Silver certification, or B grade license from Police Licensing and Regulatory Department, depending on the types of services supplied. We tap on publicly available databases such as Singapore s BizCheck Plus or China s Municipal Human Resources and Social Security Bureau database to perform pre-qualification background checks on our suppliers. Supplier Assessment Beyond compliance to legal and regulatory requirements, our suppliers are required to comply with our Workplace Safety and Health Management System (WSHMS). Site inspections, OHSAS audits, and other safety audits by external consultants are conducted quarterly to monitor our suppliers compliance and performance. To affirm our support towards our suppliers, we spearheaded the Hassle Free, Operational Excellence, Service with Passion and Trustworthy (H.O.S.T) training in FY15/16 to improve the service delivery of our suppliers. Suppliers who fail to meet the regulatory requirements or our performance standards may receive a warning, liquidated damages letter, or have their contracts terminated, depending on the severity of the situation. For instance, we barred a contractor from participating in tenders in FY15/16 due to repeated performance lapses. The stern action was taken to send a strong signal to existing and prospective contractors that such lapses are unacceptable. In Ascendas-Singbridge, we support the Singapore Ministry of Manpower s WorkRight initiative to promote fair labour practices. All our outsourced employees are informed of their rights and contact helplines under the WorkRight initiative. We believe that properties and green spaces built to high standards of quality and sustainability can be of great value to our customers. Since 2012, we have set a minimum target to achieve the Singapore s Building and Construction Authority (BCA) Green Mark Gold PLUS Standard 9 for all new developments in Singapore, and the US Green Building Council Leadership in Energy & Environmental Design (USGBC LEED) Silver or equivalent for our overseas projects. The target is set two levels above BCA s requirement of Green Mark Certification for all new buildings in Singapore. Notably, one of our properties, The V, is the first IT park in India to achieve the India Green Building Council (IGBC) Green Building Platinum certification. In Singapore, two of Figure 7: Summary of Sustainable Certifications by Country 2 BCA Green Mark Pearl Buildings in Singapore 1 2 BCA Green Mark Platinum Buildings in Singapore 1 3 BCA Green Mark Gold PLUS Buildings in Singapore 2 our projects, DNV GL Technology Centre and ONE@Changi City, attained the new Green Mark Pearl awards. This is a new award conferred by BCA to landlords who have collaborated with their tenants towards environmental stewardship. Our Green Tenant s Guide, which include criteria such as requirements for renovation works, repair of water fittings in toilets, and use of energy-efficient lighting for our tenants, have been instrumental in helping us achieve the new award. Figure 7 provides an overview of the sustainable certifications that we have achieved. Following the expansion of our business scope, we are in the process of reassessing our environmental targets and we look forward to reporting them in the coming year. 2 BCA Green Mark Gold Buildings in Singapore 1 1 BCA Green Mark Certified Building in Singapore 3 IGBC Green Building Platinum (Park) in India IGBC Leed Platinum (Core & Shell) in India IGBC Leed Gold (Core & Shell) In India IGBC Leed Silver (Core & Shell) in India IGBC Leed Gold in India USGBC Leed Platinum (O&M) in India USGBC Leed Gold (O&M) in India USGBC Leed Silver (O&M) in India USGBC Leed Gold in India USGBC Leed Gold (Core & Shell) in China USGBC Leed Silver (Core & Shell) in China USGBC Leed (Pre-Certification) in China Korea Green Building Certification (Platinum) 9 This link to BCA provides details of the various BCA building certifications: 70 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/2016 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/

38 ENVIRONMENT ENERGY CONSUMPTION AND CARBON EMISSIONS We acknowledge the intensive energy consumption of real estate and are committed to optimise energy efficiency in our operations. In this report, we accounted for the energy consumption within the common areas of our properties as these are under our operational control. Most of our energy consumption is from grid electricity, with a small amount of diesel and liquefied natural gas being used to run part of our operations in China and Korea. In FY15/16, we took on various energy-saving initiatives. In Singapore, we upgraded chillers and condenser systems, which will enable us to reduce our energy consumption by over three million kilowatt hour (kwh). This amount is equivalent to the annual household consumption of approximately 650 four-room apartments in Singapore 10. FY15/16 saw a 6.7% and a 3.9% increase in our electrical energy consumption 11 and intensity 12 respectively. This was attributable to the addition of new properties to our portfolio in late FY14/15. The full-year consumption of these properties was included in FY15/16, which resulted in an increase in electrical energy consumption and intensity. In contrast, there was a decrease in our energy consumption and intensity from fuels due to the inclusion of a property in China, Ascendas Lotus Business Park, which runs entirely on grid electricity. Accordingly, this resulted in a decrease in direct carbon emissions and increase in indirect carbon emissions as shown in Figure 10 and Figure 11. Figure 8: Electrical Energy Consumption 11,12,13 Figure 9: Direct Energy Consumption from Fuels 11,12,13 Figure 10: Direct Carbon Emissions (Scope 1) 11,13 Figure 11: Indirect Carbon Emissions (Scope 2) 13,14 Energy Consumption (million KWh) FY 14/15 FY 15/ Energy Intensity (KWh/m 2 ) Energy Consumption (TJ) FY 14/15 FY 15/ Energy Intensity (TJ/m 2 ) Carbon Emissions (tonnes CO2) 150, ,000 50, , ,432 FY 14/15 FY 15/ Carbon Emmissions Intensity (tonnes CO2/m 2 ) Carbon Emissions (tonnes CO2) 5,000 4,000 3,000 2,000 1, , ,598 FY 14/15 FY 15/ Carbon Intensity ( kg CO2/m 2 ) Korea India China Singapore Intensity Korea China Intensity Korea India China Singapore Intensity Korea China Intensity WATER CONSUMPTION Besides optimising energy efficiency, we are also committed to efficient water use. In FY15/16, there was a 13.2% increase in water consumption due to the expansion of our portfolio. However, our water intensity remained stable at slightly over 2m 3 /m 2, a direct result of our continuous efforts in improving water efficiency. For instance, we have a sewage water treatment facility to treat use water from our premises in India for use in toilets, cooling towers and irrigation. Figure 12: Water Consumption 8,9 4,500,000 Water Consumption (m 3 ) ,255,368 2,876,905 3,000,000 1,500, Water Intensity (m 3 /m 2 ) 0 FY 14/15 FY 15/16 0 Korea India China Singapore Intensity 10 The average electricity consumption for four-room HDB flats in 2015 is retrieved from Singapore Power statistics 11 We applied the default net calorific values from the 2006 IPCC Guidelines for National Greenhouse Gas Inventories 12 The energy and water consumption in FY14/15 has been restated to include the landlord consumption only 13 The aggregate energy and emission intensity for FY14/15 have been restated to exclude leasable floor area. This is consistent with the presentation of energy consumption and emissions pertaining to the landlord 14 Emission factors used are the national averages for CO 2 Emissions per kwh from the International Energy Agency: CO 2 Emissions from Fuel Combustion Highlights: ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/2016 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/

39 PEOPLE DEVELOPMENT PROFILE OF OUR WORKFORCE In FY15/16, we had 1,214 employees a 12.3% increase as compared to FY14/15, due to our merger and business expansion. Overall, we achieved a well-balanced gender ratio within our workforce, with over half of them working in Singapore. Figure 13: Total Workforce by Employment Category 3% 3% 4% 49% 51% 50% 38% 36% 37% 10% 10% 9% FY 13/14 FY 14/15 FY 15/16 Non-Executive Middle Management Executive Senior Management Figure 14: Total Workforce by Region and Gender 49% 49% 47% 48% 48% 49% 51% 51% 53% 52% 52% 51% 230 new employees joined our team in FY15/16. Meanwhile, our company-wide turnover rate was 12.1%. In Singapore, our turnover rate stood at 15.2%, which was higher than 14.3% in FY14/15, and the industry average of 12.4% 15. The turnover rates were lower in our China and India operations, where their rates also fell below the national industry averages 15 of 14.0% and 15.8% respectively. Hire rate in Others remained high due to business growth in Southeast Asia. Moreover, turnover rate had reduced by 8% compared with FY14/15. More details on our hire and turnover rates can be found in Figure 15 to Figure 17. Figure 15: Annual Hire and Turnover Rate by Region 20% 15% 19% 8% 11% 8% 28% 13% Singapore China India Others Hire Rate Turnover Rate Figure 16: Annual Hire and Turnover Rate by Gender Figure 17: Annual Hire and Turnover Rate by Age Groups 31% 17% Under and Above Hire Rate 62% 74% FAIR EMPLOYMENT PRACTICES Employees are our most valuable assets. We advocate fair employment treatment and recognise the importance of human rights across our operations. Through adhering strictly to the labour laws in our countries of operation, and as a signatory to the Employers Pledge for Fair Practices with the Tripartite Alliance for Fair Employment Practices (TAFEP), we have developed and refined our employment practices over the years. Our employment practices are underpinned by our core value of Respect, which calls for tact and sensitivity to the needs of others with different backgrounds or cultures. This is also reflected in our Code of Ethics and Conduct Policy which does not tolerate any form of harassment. To support our fair employment practices, we have also set in place Misconduct and Disciplinary Action Policy as well as Whistleblowing Policy for our employees to communicate work-related grievances and report any misdeeds. 7% 9% Turnover Rate During the year, there were no filed grievances or confirmed cases of human rights violation among our employees. EMPLOYEE WELL-BEING AND ENGAGEMENT We believe that a happy, healthy and engaged workforce is very important for our organisation. Our employees benefit from a comprehensive flexible-benefits package (including health screenings, dental benefits, medical insurance, among others), and free flow of healthy snacks in the pantry. Through our WOW Club Committee, we regularly organise various activities for our employees, including the annual Dinner and Dance, Fruit Day, festive celebrations, and massage sessions. We also encourage collaboration and fun-at-work behavior through the modern, open-concept design as well as collaborative spaces and facilities provided within our office. To build an engaged workforce, we actively engage our employees directly. We conduct a company-wide employee survey called Our Voice@ASB on a biennial basis. 98% of our employees participated in the last survey, which was held in We have received valuable feedback from our employees and implemented several improvement plans which include efforts to simplify the organisation structure and streamline Management meetings and processes, as well as a review of our rewards and compensation policies and our performance management system. While our Management and employees often interact in the normal course of work, we have set up a variety of platforms to foster even better engagement across the ranks. FY 13/14 FY 14/15 FY 15/16 Female Overseas Male Singapore 50% 50% 50% 50% Male Hire Rate Female Turnover Rate 15 The average turnover rates were obtained from Mercer Turnover Survey ABOVE : GROUP CEO MR MIGUEL KO ADDRESSING EMPLOYEES DURING THE MID-YEAR EMPLOYEE FORUM IN NOVEMBER 2015 LEFT : CONVERSATION WITH OUR SENIOR LEADERSHIP TEAM AT THE JUNE 2015 EMPLOYEE FORUM FOLLOWING THE COMPLETION OF THE MERGER 74 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/2016 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/

40 PEOPLE DEVELOPMENT Figure 18: Employee Engagement Platforms Figure 19: Ascendas-Singbridge's Programmes for Succession Planning Chairman Tea Sessions In an effort to better engage employees, the Ascendas- Singbridge Group Chairman holds small-group tea sessions with employees. Through the sessions, the employees would interact, share views on company matters, and could also provide any suggestions for improvement. Employee Forums Held at the company level twice every year, company updates and key messages are shared to all employees through these forums. Similar employee communication platforms were also held in our other operating countries annually. The ASB Advantage The ASB Advantage is a one-year transformation programme launched in Feb The objective of this programme is to explore and improve delivery of the entire value chain of Ascendas-Singbridge and to create advantages for the Group by asking and answering the question of "how can we be faster and best-in-class? ASB Advantage comprises seven work streams, each formed by members across functional teams to foster creative thinking and collaboration. The Management provides mentorship and guidance to the work streams. Acceleration Centre The Acceleration Centre is a programme that: 1. Examines leadership behaviours that have been identified as critical for the next leadership level through an integrated system of exercises, such as simulations and interviews 2. Provides a holistic picture of individual s key strengths and growth opportunities 3. Guides follow-up which includes targeted development programmes, coaching and mentoring Creative Blender All employees with good ideas on process or service improvements may submit them on the intranet system. Good ideas are rewarded with cash incentives and could be nominated for the annual Innovation Awards. New Employees Induction The Management briefs new employees at the New Employee Induction (every two months) about their key functions. This provides a good opportunity for new employees to learn about the company s direction and plans from the start. TRAINING AND DEVELOPMENT Table 5: Targets and Results for Training and Development Target Each staff attends two training courses in a year Performance Achieved for Ascendas- Singbridge overall Figure 20: Training Hours by Employment Category (No. of Hours) TALENT MANAGEMENT We understand the importance of building and maintaining a strong talent pipeline in today s competitive landscape. To achieve this, our Human Resources team operates from an established talent management framework and performance management system. The talent management framework entails an annual career development plan, which is determined jointly by employees and their supervisors based on individual employees development needs. The employee s development needs are addressed through the learning and development plan, which lays out the employee s learning focus for the year. We monitor and track the learning undertaken by each employee in the year, and maintain a minimum target for training participation across all countries of operations. During the mid-year and annual reviews, all employees will receive formal feedback from their supervisors on their performance and areas for improvement. Furthermore, we provide our employees with opportunities for overseas attachments, job rotations, or sponsorships for part-time courses. To encourage our staff to pursue higher education qualifications, we present Qualification Awards to employees who have successfully completed their parttime studies. To ensure the long-term sustainability of Ascendas- Singbridge, our Talent Council, which is chaired by our Group CEO and comprises representatives from the Management would meet at least three times a year to ensure a healthy succession plan, and drive leadership development. As part of our succession plan, they identify leaders to be developed and given meaningful exposure through programmes such as the ASB Advantage and Acceleration Centre. Our Ascendas- Singbridge Management Associate Programme (A-MAP) seeks to equip outstanding university graduates with a good foundation of the company s key business operations via a challenging 18-month rotation programme. We have achieved our overall training target of two courses per staff per year. The training hours of our middle management and executives were maintained at/above the national average of 26 hours 16. The key focus in FY15/16 include Service DNA training roll-out, ASB Learning Fiesta and Team Dynamics workshops. In FY15/16, senior management staff were heavily involved in the strategic and organisation review activities before and after the merger. These had taken higher priority over training for this group. On top of formal training, other learning opportunities include internal sharing and learning through cross-functional events, such as the ASB Advantage and Power of One learning carnivals. FY 13/14 FY 14/15 FY 15/16 Senior Management Middle Management Executive Figure 21: Training Hours by Gender (No. of Hours) FY 13/14 FY 14/15 FY 15/16 Male Female 16 The national median training hours committed for staff in Singapore is extracted from a biennial survey undertaken by Ministry of Manpower. The most recent survey was conducted in 2014 with the associated report, Employer Supported Training, released in October ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/2016 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/

41 ENRICHING LIVES IN COMMUNITIES GLOBAL REPORTING INITIATIVE (GRI) CONTENT INDEX FOR IN ACCORDANCE CORE OPTION As our company grows, we remain true to our commitment as a responsible corporate citizen by giving back and investing in the communities in which we operate. The Ascendas- Singbridge GIVES Foundation (previously known as Ascendas GIVES Foundation) drives our philanthropic pursuits through GROOMING ARTISTIC TALENTS Provided sponsorships to various productions, such as: o S$50,000 to Toy Factory s December Rains o S$20,000 to Robot Playground s The Violin o S$10,000 to Sight Lines Production s Lord of the Flies o S$15,000 to Singapore University of Technology and Design s inaugural dance concert o S$20,000 to Orchestra of Music Makers Mahler s Symphony No. 8 Symphony of a Thousand Partnered with Social Creatives, a non-profit social enterprise which promotes the arts by painting murals for people s homes, hospitals, void decks, and any open spaces of the public STAFF VOLUNTEERS THREADING FLOWERS FOR THE WORLD'S LARGEST FLORAL CHANDELIER TO LAUNCH SINGAPORE GARDEN FESTIVAL 2016 ARTS ASCENDAS - SINGBRIDGE GIVES FOUNDATION COMMUNITY ENVIRONMENT ENVIRONMENT 37 volunteers planted 50 trees at Sembawang Park Connector Participated in National Parks Board s NatureCares Programme, where 113 volunteers partnered with Loyang Primary School students to: o Bring aged residents of Jamiyah Home for guided nature walks o Conduct a gardening workshop at Jamiyah Home Partnership with Waterways Watch Society, where volunteers guided primary and secondary school students for MacRitchie learning trail, and created an eco-park along Kallang Riverside Park to raise public awareness on environmental efforts 38 volunteers participated in Pasir Ris Beach cleanup Sponsored S$60,000 for Learning Garden at Singapore Garden Festival volunteers planted mangrove saplings at Sungei Buloh Wetland Reserves its three pillars of Arts, Community and Environment. In FY15/16, we donated a total of S$526,000 to various targeted beneficiaries through the foundation. Our contributions inkind through the volunteering hours by our employees are in addition to this. NURTURING THE COMMUNITY Established Parents Club at Shanghai Silence Angel Kindergarten (SAK), a rehabilitation centre for autistic and mentally challenged children Donated: o S$30,000 to Providence Care Centre to conduct music and robotics lessons for children from lowerincome families o S$20,000 to Singapore Children s Society s Walk for our Children carnival o S$10,000 to Community Chest s Charity in the Park carnival o S$17,000 to provide free health screening for 7,000 villagers residing near OneHub Chennai Sponsored: o S$21,000 for training courses to groom parents in SAK to be able to facilitate sharing of experiences, as well as organise activities to improve SAK students skills o 31 bicycles to underprivileged students in Vietnam o S$10,500 to One-North Run, which benefitted Singapore Children s Society, AWWA (formerly known as Asian Women's Welfare Association) and Movement for the Intellectually Disabled of Singapore (MINDS) o S$5,000 to Purple Parade, an event that supported the inclusion of people with disabilities o Andrew & Grace (AG) Home s activities Raised: o S$8,050 for AG Home through a lunch fiesta to engage and sell food to staff o S$3,807 for Star Shelter, a temporary home for abused mothers, through making and selling garden terrariums and painted Hoya plants o S$6,553 for Arts@Metta through charity bazaars during the foundation week to support youths with special needs GENERAL STANDARD DISCLOSURES Indicators Section Strategy and analysis G4-1 Provide a statement from the most senior decision-maker of the organisation (such as CEO, chair, or equivalent senior position) about the relevance of sustainability to the organisation and the organisation s strategy for addressing sustainability. Chairman s Statement (page 14) Organisational profile G4-3 Report the name of the organisation. Corporate Profile (page 4) G4-4 Report the primary brands, products, and services. Corporate Profile (page 4) G4-5 Report the location of the organisation s headquarters. Corporate Profile (page 4) G4-6 Report the number of countries where the organisation operates, and names of countries where either the organisation has significant operations or that are specifically relevant to the sustainability topics covered in the report. Corporate Profile (page 4) Our Presence (page 6) G4-7 Report the nature of ownership and legal form. Corporate Profile (page 4) G4-8 Report the markets served (including geographic breakdown, sectors Portfolio Details (page 57) served, and types of customers and beneficiaries). G4-9 Report the scale of the organisation, including: Total number of employees Total number of operations Net sales (for private sector organisations) or net revenues (for public sector organisations) Total capitalisation broken down in terms of debt and equity (for private sector organisations) Quantity of products or services provided G4-10 a. Report the total number of employees by employment contract and gender. b. Report the total number of permanent employees by employment type and gender. c. Report the total workforce by employees and supervised workers and by gender. d. Report the total workforce by region and gender. e. Report whether a substantial portion of the organisation s work is performed by workers who are legally recognised as self-employed, or by individuals other than employees or supervised workers, including employees and supervised employees of contractors. f. Report any significant variations in employment numbers (such as seasonal variations in employment in the tourism or agricultural industries). Our Presence (page 6) Key Figures (page 7) Profile of Our Workforce (page 74) Profile of our Workforce (page 74) 78 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/2016 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/

42 GRI CONTENT INDEX FOR IN ACCORDANCE CORE OPTION GENERAL STANDARD DISCLOSURES Indicators G4-11 Report the percentage of total employees covered by collective bargaining agreements. Section None of our employees are covered by collective bargaining agreements. G4-12 Describe the organisation s supply chain. Responsible Supply Chain Management (page 70) G4-13 Report any significant changes during the reporting period regarding the organisation s size, structure, ownership, or its supply chain, including: Changes in the location of, or changes in, operations, including facility openings, closings, and expansions Changes in the share capital structure and other capital formation, maintenance, and alteration operations (for private sector organisations) Changes in the location of suppliers, the structure of the supply chain, or in relationships with suppliers, including selection and termination G4-14 Report whether and how the precautionary approach or principle is addressed by the organisation. G4-15 List externally developed economic, environmental and social charters, principles, or other initiatives to which the organisation subscribes or which it endorses. G4-16 List memberships of associations (such as industry associations) and national or international advocacy organisations in which the organisation: Holds a position on the governance body Participates in projects or committees Provides substantive funding beyond routine membership dues Views membership as strategic Ascendas went through a merger with Singbridge in Corporate Governance (page 32) Fair Employment Practices (page 75) Asian Association for Investors in Non-listed Real Estate Vehicles, Asian Public Real Estate Association, British Chamber of Commerce Singapore, Real Estate Developers' Association of Singapore, REIT Association of Singapore, Singapore Business Federation, Singapore Indian Chamber of Commerce & Industry, Singapore Institute of International Affairs, Singapore International Chamber of Commerce, Singapore Manufacturers' Federation, SNEF National Employers Federation, Singapore Compact for CSR, Hoftel Asia Ltd GENERAL STANDARD DISCLOSURES Indicators Identified material aspects and boundaries G4-17 a. List all entities included in the organisation s consolidated financial statements or equivalent documents. b. Report whether any entity included in the organisation s consolidated financial statements or equivalent documents is not covered by the report. G4-18 a. Explain the process for defining the report content and the Aspect Boundaries. b. Explain how the organisation has implemented the Reporting Principles for Defining Report Content. G4-19 List all the material Aspects identified in the process for defining report content. G4-20 For each material Aspect, report the Aspect Boundary within the organisation, as follows: Report whether the Aspect is material within the organisation If the Aspect is not material for all entities within the organisation (as described in G4-17), select one of the following two approaches and report either: o The list of entities or groups of entities included in G4-17 for which the Aspect is not material or o The list of entities or groups of entities included in G4-17 for which the Aspects is material Report any specific limitation regarding the Aspect Boundary within the organisation G4-21 For each material Aspect, report the Aspect Boundary outside the organisation, as follows: Report whether the Aspect is material outside of the organisation If the Aspect is material outside of the organisation, identify the entities, groups of entities or elements for which the Aspect is material. In addition, describe the geographical location where the Aspect is material for the entities identified Report any specific limitation regarding the Aspect Boundary outside the organisation G4-22 Report the effect of any restatements of information provided in previous reports, and the reasons for such restatements. G4-23 Report significant changes from previous reporting periods in the Scope and Aspect Boundaries. Section Portfolio Details (page 57) About the Report (page 62) Materiality Assessment (page 63) Materiality Assessment (page 63) Materiality Assessment (page 63) Materiality Assessment (page 63) We have restated some of our performance figures post-merger. Materiality Assessment (Page 63) 80 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/2016 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/

43 GRI CONTENT INDEX FOR IN ACCORDANCE CORE OPTION GENERAL STANDARD DISCLOSURES Indicators Section Stakeholder engagement G4-24 Provide a list of stakeholder groups engaged by the organisation. Stakeholder Engagement (page 62) G4-25 Report the basis for identification and selection of stakeholders with Stakeholder Engagement (page 62) whom to engage. G4-26 Report the organisation s approach to stakeholder engagement, Stakeholder Engagement (page 62) including frequency of engagement by type and by stakeholder group, and an indication of whether any of the engagement was undertaken specifically as part of the report preparation process. G4-27 Report key topics and concerns that have been raised through stakeholder engagement, and how the organisation has responded to those key topics and concerns, including through its reporting. Report the stakeholder groups that raised each of the key topics and concerns. Stakeholder Engagement (page 62) Report profile G4-28 Reporting period (such as fiscal or calendar year) for information About the Report (page 62) provided. G4-29 Date of most recent previous report (if any). Ascendas Sustainability Report FY14/15 G4-30 Reporting cycle (such as annual, biennial). About the Report (page 62) G4-31 Provide the contact point for questions regarding the report or its contents. G4-32 a. Report the in accordance option the organisation has chosen. b. Report the GRI Content Index for the chosen option c. Report the reference to the External Assurance Report, if the report has been externally assured. G4-33 a. Report the organisation s policy and current practice with regard to seeking external assurance for the report. b. If not included in the assurance report accompanying the sustainability report, report the scope and basis of any external assurance provided. c. Report the relationship between the organisation and the assurance providers. d. Report whether the highest governance body or senior executives are involved in seeking assurance for the organisation s sustainability report. Accessibility and Feedback (page 88) About the Report (page 62) GRI Content Index (page 79) We have not sought external assurance as this is the inaugural sustainability report. External assurance will be considered as reporting matures. GENERAL STANDARD DISCLOSURES Indicators Governance G4-34 Report the governance structure of the organisation, including committees of the highest governance body. Identify any committees responsible for decision-making on economic, environmental and social impacts. G4-38 Report the composition of the highest governance body and its committees by: Executive or non-executive Independence Tenure on the governance body Number of each individual s other significant positions and commitments, and the nature of the commitments Gender Membership of under-represented social groups Competences relating to economic, environmental and social impacts Stakeholder representation G4-39 Report whether the Chair of the highest governance body is also an executive officer (and, if so, his or her function within the organization s management and the reasons for this arrangement). G4-40 Report the nomination and selection processes for the highest governance body and its committees, and the criteria used for nominating and selecting highest governance body members, including: Whether and how diversity is considered Whether and how independence is considered Whether and how expertise and experience relating to economic, environmental and social topics are considered Whether and how stakeholders (including shareholders) are involved G4-41 Report processes for the highest governance body to ensure conflicts of interest are avoided and managed. Report whether conflicts of interest are disclosed to stakeholders, including, as a minimum: Cross-board membership Cross-shareholding with suppliers and other stakeholders Existence of controlling shareholder Related party disclosures Section Governance and Transparency (page 20) Governance and Transparency (page 20) Chairman and Chief Executive Officer (page 31) Board Composition and Guidance (page 31) Board Membership (page 31) Corporate Governance (page 29) 82 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/2016 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/

44 GRI CONTENT INDEX FOR IN ACCORDANCE CORE OPTION GENERAL STANDARD DISCLOSURES Indicators G4-51 a. Report the remuneration policies for the highest governance body and senior executives for the below types of remuneration: Fixed pay and variable pay: - Performance-based pay - Equity-based pay - Bonuses - Deferred or vested shares Sign-on bonuses or recruitment incentive payments Termination payments Clawbacks Retirement benefits, including the difference between benefit schemes and contribution rates for the highest governance body, senior executives, and all other employees b. Report how performance criteria in the remuneration policy relate to the highest governance body s and senior executives economic, environmental and social objectives. G4-52 Report the process for determining remuneration. Report whether remuneration consultants are involved in determining remuneration and whether they are independent of management. Report any other relationships which the remuneration consultants have with the organization. Ethics and integrity G4-56 Describe the organisation s values, principles, standards and norms of behaviour such as codes of conduct and codes of ethics. G4-58 Report the internal and external mechanisms for reporting concerns about unethical or unlawful behaviour, and matters related to organizational integrity, such as escalation through line management, whistleblowing mechanisms or hotlines. Section Remuneration Matters (page 32) Remuneration Matters (page 32) Interview with the Group CEO (page 17) Code of Business Ethics and Employee Conduct Policy (page 34) Code of Business Ethics and Employee Conduct Policy (page 34) Fair Employment Practices (page 75) SPECIFIC STANDARD DISCLOSURES Indicators Section Category: Economic EC1 Direct economic value generated and distributed Financial Review (page 38) Enriching Lives in Communities (page 78) Category: Environmental EN3 Energy consumption within the organisation Energy Consumption and Carbon Emissions (page 72) EN5/ CRE1 Energy intensity Energy Consumption and Carbon Emissions (page 72) EN6 Reduction of energy consumption Energy Consumption and Carbon Emissions (page 72) EN8/ CRE2 Total water withdrawal by source Water Consumption (page 73) EN15 Direct greenhouse gas (GHG) emissions (Scope 1) Energy Consumption and Carbon Emissions (page 73) EN16 Indirect greenhouse gas (GHG) emissions (Scope 2) Energy Consumption and Carbon Emissions (page 73) EN18/ CRE3 Greenhouse Gas (GHG) emissions intensity Energy Consumption and Carbon Emissions (page 73) EN29 Monetary value of significant fines and total number of nonmonetary sanctions for non-compliance with environmental laws and There were no significant fines during the year. regulations Category: Social Sub-category: Labour practices and decent work LA1 Total number and rates of new employee hires and employee turnover by age group, gender and region Profile of our Workforce (page 74) LA6 LA9 LA10 LA11 Type of injury and rates of injury, occupational diseases, lost days and absenteeism, and total number of work-related fatalities, by region and by gender Average hours of training per year per employee by gender and by employee category a. Report on the type and scope of programs implemented and assistance provided to upgrade employee skills. b. Report on the transition assistance programs provided to facilitate continued employability and the management of career endings resulting from retirement or termination of employment Report the percentage of total employees by gender and by employee category who received a regular performance and career development review during the reporting period Health, Safety and Security (page 67) Talent Management (page 77) Talent Management (page 76) Talent Management (page 76) 84 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/2016 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/

45 GRI CONTENT INDEX FOR IN ACCORDANCE CORE OPTION SPECIFIC STANDARD DISCLOSURES Indicators CRE6 Percentage of the organisation operating in verified compliance with an internationally recognised health and safety management system LA14 Percentage of new suppliers that were screened using labour practices criteria Sub-category: Human rights HR3 a. Report the total number of incidents of discrimination during the reporting period. b. Report the status of the incidents and the actions taken with reference to the following: Incident reviewed by the organization Remediation plans being implemented Remediation plans have been implemented and results reviewed through routine internal management review processes Incident no longer subject to action HR12 a. Report the total number of grievances about human rights impacts filed through formal grievance mechanisms during the reporting period. b. Of the identified grievances, report how many were: Addressed during the reporting period Resolved during the reporting period c. Report the total number of grievances about human rights impacts filed prior to the reporting period that were resolved during the reporting period. Sub-category: Society SO1 Percentage of operations with implemented local community engagement, impact assessments and development programmes SO3 Total numbers and percentage of operations assessed for risks related to corruption and the significant risks identified SO4 Communication and training on anti-corruption policies and procedures Section Health, Safety and Security (page 66) Supplier Assessment (page 70) Fair Employment Practices (page 75) Fair Employment Practices (page 75) Enriching Lives in Communities (page 78) Internal Controls (page 34) Risk Factors (page 35) Corporate Governance and Compliance (page 64) SO5 Confirmed incidents of corruption and actions taken Corporate Governance and Compliance (page 64) SO8 Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with laws and regulations Corporate Governance and Compliance (page 64) SPECIFIC STANDARD DISCLOSURES Indicators Section Sub-category: Product responsibility PR1 Percentage of significant product and service categories for which health and safety impacts are assessed for improvement Health, Safety and Security (page 66) PR5 Results of surveys measuring customer satisfaction Customer Satisfaction (page 69) PR7 Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including Corporate Governance and Compliance (page 64) advertising, promotion, and sponsorship, by type of outcomes PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data Security of Information (page 68) PR9 CRE8 Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services Type and number of sustainability certification, rating and labelling schemes for new construction, management, occupation and redevelopment Corporate Governance and Compliance (page 64) Environment (page 71) 86 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/2016 ASCENDAS-SINGBRIDGE ANNUAL REPORT 2015/

46 Accessibility and Feedback As part of our efforts in environmental conservation, we have printed limited copies of this report. A PDF version of the full Annual Report and Financial Statements is available for download from our website: We value feedback from our stakeholders as it allows us to continually improve our sustainability practices. Please share your views, suggestions or feedback to: Ascendas-Singbridge Pte Ltd 1 Fusionopolis Place #10-10 Galaxis Singapore enquiries@ascendas-singbridge.com 88