30 ComfortDelGro Corporation Limited

OPERATIONS REVIEW

SINGAPORE 2,468.7 REVENUE (S$’mil) 22,962 12,494 TOTAL OPERATING FLEET SIZE TOTAL NUMBER OF EMPLOYEES

Bus • Taxi • Rail • Automotive Engineering Services Inspection & Testing Services • Driving Centre • Car Rental & Leasing Insurance Broking Services • Outdoor Advertising

Bus deployed to 27 existing services to beef ComfortDelGro Corporation Limited up capacity and ease waiting times. is the market leader in both the public scheduled bus and private charter bus With the opening of its eighth fully air- service sectors in Singapore. conditioned bus interchange – Joo Koon Bus Interchange – in November 2015 , Public Scheduled Bus a major route amendment exercise Our public-listed scheduled bus subsidiary, involving nine services was conducted SBS Transit Ltd, operates a fleet of 3,656 over three weekends. Five existing bus buses and 261 bus routes – of which 215 services were amended to serve the new are basic bus services. In 2015 , average interchange, while four other bus routes daily ridership grew by 2.8% to more that originated from the Boon Lay Bus than 2.8 million passenger trips. Interchange were also amended.

To cater to the growing demand, In celebration of the Nation’s 50 years SBS Transit took delivery of 348 buses of independence, SBS Transit offered during the year. As a result, the average free travel on all its buses on 9 August age of its bus fleet is now 5.6 years. 2015 . To add to the festivities, 500 Significantly, 89 .4% of its fully air- buses as well as its bus interchanges conditioned bus fleet is wheelchair- were decorated with images of accessible and 43 .7% comprises double the little red dot – as Singapore decks. With more wheelchair friendly is affectionately known. buses in its fleet, SBS Transit rolled out 25 wheelchair-accessible bus services in As part of its efforts to improve 2015 , bringing the total number of such the public transport experience for services to 195 . This means that nine out commuters, SBS Transit started to tweet of every 10 of our basic bus services are bus service updates and announcements wheelchair- accessible. via its twitter account, @SBSTransit_Ltd, from July 2015 . As at December 2015 , it Among the new buses delivered, 154 had garnered about 6,500 followers. were funded by the Government under the Bus Service Enhancement For the year under review, SBS Transit Programme (BSEP). As at the end of participated in the first two tenders 2015 , SBS Transit has a total of 525 BSEP of the Government’s Bus Contracting buses which constitute about 14 % of Model. The results of the first tender for its fleet. In 2015 , 10 BSEP services were the Bulim Bus Package and the second rolled out. The BSEP buses were also tender for the Loyang Bus Package were Annual Report 2015 31

announced in May and November 2015 on metered fares. It is also able to predecessors, larger storage capacities respectively. Unfortunately, SBS Transit provide users with a “history” of up to and higher RAM that enable the apps to was unsuccessful in both tenders. 10 journeys over a 30 -day period. The work faster and smoother. enhanced “favourites” feature also Private Bus Charter enables commuters to book taxis from In May 2015 , ComfortDelGro Taxis The Group’s wholly-owned subsidiary, any bookmarked location in two easy became the first taxi company in ComfortDelGro Bus Pte Ltd, is steps. With the app, passengers can Southeast Asia to roll out the Euro 6 Singapore’s largest private bus e-mail receipts, share trip details with Mercedes Benz E 220 BlueTEC LimoCabs – chartering company with a fleet of others and rate the service levels of the well ahead of the Government’s deadline 350 buses, including those belonging taxi drivers. In 2015 , over 70 % of our taxi of January 2018 for diesel vehicles to to subcontractors. It offers employee drivers received at least one five-star meet Euro 6 standards. These limousines and school bus charters as well as rating. Since the ComfortDelGro booking are able to reduce harmful emissions overland bus services to West Malaysia. app was launched in 2010 , it has been by transforming 90 % of the nitrogen It also operates premium bus services, downloaded 3.18 million times. oxide (NOX) into environmentally including city direct bus services as well friendly particles such as water and as shuttle bus services for industrial On 17 November 2015 , ComfortDelGro nitrogen. The Euro 6 LimoCab emits only parks, shopping malls, educational Taxis clocked its 30 millionth booking 124 g carbon emissions per kilometre, institutions and condominiums. through the app. As a show of thanks which qualifies it for the Carbon to its many loyal customers, it waived Emissions-Based Vehicle Scheme (CEVS) ComfortDelGro Bus remained the the booking fees for the first 15 ,000 rebate, notwithstanding the more preferred bus chartering provider for customers who booked through the stringent criteria from July 2015 . flagship events such as the National app using the “ 30 MIL” promo code from Day Parade (NDP) in 2015 . It also won 19 to 25 November 2015 . The booking ComfortDelGro Taxis believes in taking tenders to provide bus services for the fee levy that taxi drivers pay was care of the welfare of its taxi drivers. State Funeral of the late Mr Lee Kuan also waived. As part of a healthy lifestyle campaign, Yew, the General Election (GE), the 28 th taxi drivers were given free access to Southeast Asian (SEA) Games and the For the year in review, ComfortDelGro ActiveSG facilities such as gymnasiums 8th ASEAN Para Games. Taxis catered a total of 34 .1 million and swimming pools on Wednesdays. booking jobs – of which more than half In addition to leading a healthy lifestyle, Under the BSEP, ComfortDelGro Bus were conducted through the app. taxi drivers have also been encouraged operates City Direct Service 651 , which to go for regular health checks. To offers direct connection between Jurong In October 2015 , ComfortDelGro make it easier for them to do so, we West and the Central Business District Taxis became the first taxi operator to partnered the Health Promotion Board (CBD), and City Direct Service 653 , which accept MasterPass™, a digital payment for the “Check Car, Check Body” health offers direct connection between Bukit service from MasterCard®. This cardless screening and intervention programme Batok/Hillview and CBD. payment enables passengers to use its in 2014 . Last year, two more health taxi services without having to whip check centres were set up in Braddell As part of its bus replacement exercise, out their wallets at all – saving both and Sin Ming so that more taxi drivers ComfortDelGro Bus replaced its old themselves and taxi drivers a lot of time. could undergo the health screening and buses with 34 new ones. All payments are done electronically health coaching sessions while their through pre-registered debit and taxis were being serviced. Over 5,500 Taxi credit cards. taxi drivers have participated in the ComfortDelGro Taxis continued to programme so far. command the lion’s share of the market The latest range of X-One Mobile Data with a combined fleet of 16 ,997 Comfort Terminals (MDTs) were installed in The Company also extended aid to its and CityCab taxis. ComfortDelGro’s taxis from June 2015 . taxi drivers by helping them defray the The new terminals wirelessly connect educational fees of their children. During In January 2015 , the ComfortDelGro the booking despatch system to the the year, 675 Primary and Secondary taxi booking app, which is available for taxis and act as built-in taxi meter-cum- level students received S$ 115 ,000 - both iPhones and Android smartphones, payment systems. They automatically worth of study achievement awards. was given a complete makeover. compute the total metered fare The revamped app has a whole and accept cashless payments. The From 3 to 11 August 2015 , as part of slew of enhanced features including new MDTs also possess CPU speeds the SG 50 celebrations, diesel sold at recommended routes and estimates that are two times faster than their our diesel kiosks was reduced to just 32 ComfortDelGro Corporation Limited

OPERATIONS REVIEW

50 cents per litre. The booking fee levy official opening by Prime Minister Mr Lee the vehicle inspection bays to the that taxi drivers pay was also waived Hsien Loong. With the 12 stations that reporting counters, thereby reducing from 11 to 17 August 2015 . In all, the were opened in 2015 , the DTL now processing time from an average of Company forked out S$ 1.75 million for has 18 stations stretching from Bukit 49 to 33 minutes. these SG 50 initiatives for its taxi drivers. Panjang to Chinatown. When fully completed in 2017 , the 42 -km long DTL ComfortDelGro Engineering For the second year running, will have 34 stations, making it the increased the list of components ComfortDelGro Taxis and its app were longest underground, driverless due for reconditioning during the named favourite taxi agency and system in Singapore. year. Besides engine and transmission favourite taxi booking app for the overhaul, the unit is now capable Travellers’ Choice Awards by TripAdvisor Ridership on the Light Rail Transit of reconditioning suspension in 2015 . systems in Sengkang and Punggol and sub-components of engines recorded double-digit growth during and transmissions. This resulted Rail the year, hitting an all-time high of 36 .0 in substantial savings for its taxi Demand for our rail services continued million passenger trips for the year. maintenance business in 2015 . to grow in 2015 with over 259 .1 million Average daily ridership grew by 14 .1% passenger trips made. This represented to 99 ,000 . For its external vehicle maintenance an increase of 7.31 % over 2014 . business, ComfortDelGro Engineering In the area of service delivery, SBS successfully secured new corporate Average daily ridership on the North Transit continued to work hard to meet contracts with East Line (NEL) grew by 4.6% to 537 ,000 commuters’ expectations. The LTA’s Engineering Company, Certis CISCO compared to 2014 . In tandem with the Public Transport Customer Satisfaction Security Private Limited, C&P Rent-A- increase in passenger demand, 135 Survey revealed that the percentage of Car (Pte) Ltd and Huawei Technologies additional train trips per week were respondents who were satisfied with Company Ltd. added to the schedules to improve train services improved from 88 .9% capacity and enhance train frequencies. to 92 .8%. The bus assembly business delivered 204 Volvo double deck buses during the year During the year, SBS Transit took delivery Automotive Engineering Services to SBS Transit. of six new that were built by Our automotive engineering services French manufacturer, Alstom, which subsidiary, ComfortDelGro Engineering Separately, Volvo East Asia Pte Ltd, the Land Transport Authority (LTA) had Pte Ltd, maintains the Group’s taxi which had won an LTA contract to supply ordered in 2012 . fleet in Singapore. To bring greater 176 double deck buses, subcontracted convenience to about 800 taxi drivers ComfortDelGro Engineering to The mid-life rail refurbishment review, residing in the northern part of assemble the buses. As at 31 December which started in 2014 , continued Singapore, ComfortDelGro Engineering 2015 , ComfortDelGro Engineering in 2015 . SBS Transit will either started operating its sixth workshop out had delivered 30 buses to the LTA. upgrade or replace ageing as well as of VICOM inspection centre in Yishun in The Company also secured another obsolete equipment. February 2015 . contract with local coach builder SC Auto Industries (S) Pte Ltd to supply 32 In September 2015 , SBS Transit To further improve service levels to taxi units of Volvo chassis and to maintain introduced a new “Meet-the-Managers” drivers, ComfortDelGro Engineering these buses. session. Planned for the last Wednesday adopted a predictive maintenance of every month, this event provided approach in which technicians are ComfortDelGro Engineering renovated commuters with the opportunity to prompted automatically by the its Bedok diesel kiosk and refurbished meet NEL’s Management to provide computer system to replace parts before the restroom at its Braddell diesel kiosk feedback or offer suggestions. These they reach the end of their lifespan. This with new floor tiles, energy-saving LED commuter engagement sessions, initiative has resulted in a reduction in light bulbs and better ventilation. held at different stations, have been taxi breakdown rates. well-received. Inspection & Testing Services During the year, ComfortDelGro As a result of innovative marketing For the year in review, the average Engineering implemented the Vehicle campaigns and improved service daily ridership on the Downtown Line Accident Reporting System. This new offerings, VICOM Ltd conducted a (DTL) 1 increased by 23 .5% to 76 ,000 . system eliminates duplicated data total of 522 ,140 vehicle inspections, DTL 2 commenced passenger service entries and electronically transfers a slight increase as compared to the on 27 December 2015 – a day after the damage assessment reports from previous year. Annual Report 2015 33

During the year, VICOM collaborated VICOM VFIT TM , the Company’s used car In November 2015 , ComfortDelGro with several business partners to evaluation service, saw a dip in demand Driving Centre and the Traffic Police introduce more benefits for its in line with the proportion of cars aged jointly developed the Safe Driving customers. This included Personal between three and eight years. Typically, Course, a new curriculum aimed at Accident coverage for customers as well pre-owned car buyers will only use the re-educating drivers on safe driving as discounts and free gifts to those who service if the cars are between three and knowledge. Under the programme, signed up for special promotions. eight years old. drivers with 12 or more demerit points can erase three demerit points off their For example, in August 2015 , VICOM VICOM’s wholly-owned subsidiary, driving records once they complete the collaborated with Diners Club to launch Setsco Services Pte Ltd (SETSCO) course. Within two months of its launch, its very own loyalty card, the Diners/ completed a number of projects in close to 1,000 learners had enrolled in VICOM “V” Card. “V” card holders Singapore involving the analysis of the course. enjoy S$ 26 discount off their vehicle water, sludge and air. It also conducted inspection fee once a year, free 24 - grease trap audit and inspection for the ComfortDelGro Driving Centre was hour roadside assistance provided PUB and ambient air monitoring for JTC again recognised by the Institute of by ComfortDelGro Engineering Corporation. Other projects included the Technical Education as a Certified and 25 % discount off car rentals at inspection of a new storage terminal On-the-Job Training Centre for its ComfortDelGro Rent-A-Car Pte Ltd. at Tembusu in Jurong Island and the robust on-the-job training system. It three-storey Terminal 4 Building at also retained the ‘Assisted Compliance As part of SG 50 , customers who Changi Airport. Assurance Programme (ACAP) Premium’ purchased motor insurance from AXA status awarded by the Inland Revenue Insurance Singapore through VICOM Over in Malaysia, SETSCO conducted Authority of Singapore and had its were entitled to 50 % off the inspection sampling and analysis of water and ISO 9001 :2008 Quality Management fees, while those who signed up for the soil at Putrajaya Dam. Further abroad, certification renewed. In addition, the “V” card received another 50 % off upon it undertook several glass inspection Centre was awarded the Singapore card approval. Given the success of the projects including those for the Flame Quality Class STAR and the People “V” card, VICOM plans to add on other Towers in Baku, Azerbaijan and the Four Developer status. motoring benefits to make it an even Seasons Hotel in Abu Dhabi, United more unique “motoring” credit card to Arab Emirates. Car Rental & Leasing attract more customers. Our car rental & leasing subsidiary, Driving Centre ComfortDelGro Rent-A-Car expanded The Automated Payment Machines ComfortDelGro Driving Centre Pte Ltd its fleet during the year and extended (APMs), which were rolled out in 2014 , provides learner driver training services the lifespan of a number of its existing have proven very popular. As such, in Singapore. vehicles to cater to higher demand for another 14 were installed during the older vehicles by corporate clients. As at year. There are plans to introduce more During the year, it clinched the Home the end of December 2015 , its fleet size services on the APMs. Team contract to conduct training for a was 1,130 . wide range of vehicle classes including Demand for VICOM Emission Test training for specialised vehicles such ComfortDelGro Rent-A-Car stepped up Laboratory’s services increased by as the Red Rhinos, fire engines and its marketing efforts during the year. more than half in 2015 due to the ambulances. It organised six road shows and took revision in the CEVS. Under the revised out advertisements. It also continued CEVS, all new or imported used cars With effect from 1 June 2015 , work to organise fun-filled activities for its registered from 1 July 2015 with carbon permit and S Pass holders who wanted customers and their families as part of emissions of less or equal to 135 g/ km to drive light goods vehicles were its customer retention programme. qualify for rebates, while cars with required by the Traffic Police to pass a carbon emissions equal to or more than practical driving test on top of the basic To further improve productivity and 186 g/km incur a registration surcharge. theory test. The new ruling presented protect data integrity, the Company ComfortDelGro Driving Centre with the implemented batch processing for VICOM Assessment Centre (VAC) opportunity to offer foreign learners credit card customers via the Wirecard assisted 1,032 motorists with the repair the Class 3 Conversion Express Practical Gateway. This solution allows the of their vehicles at approved workshops Training Course. More than 200 foreign collection of monthly rental from and filed 13 ,287 accidents reports at its learners signed up for this course long-term customers without the need three centres. While VAC saw an increase in 2015 . for them to re-enter their credit card of 16 .3% in accident vehicle survey jobs, numbers every month. This eliminates 34 ComfortDelGro Corporation Limited

OPERATIONS REVIEW

the need for repeated data entry and Unit for the UK Business Unit to control From April to May 2015 , Moove Media minimises the risk of human error. its annual claims cost. also teamed up with SAFRA Radio, for the first time, to bring two of its anchor Insurance Broking Services Outdoor Advertising radio stations to Ang Mo Kio, Bedok and ComfortDelGro Insurance Brokers Pte Our outdoor advertising subsidiary, Boon Lay Bus Interchanges as part of a Ltd, our in-house insurance broking arm Moove Media Pte Ltd, saw higher branding campaign to promote its radio continued to perform well in 2015 . demand for rail advertising with the shows. The four-week long campaign opening of more DTL stations as well featured wallscape advertisements In response to the increasing as higher demand for creative two- fitted with specially designed speakers trend of cyber attacks and threats, dimensional taxi tops. and radio that provided commuters with ComfortDelGro Insurance Brokers and an optimal surround sound experience. its associate partners worked with the During the year, Moove Media offered Group in identifying their cyber risks several innovative campaigns with As part of the SG 50 celebrations, Moove and exposures, and helped recommend interesting concepts. For example, it Media produced SG 50 Pioneer Cows in the appropriate insurance cover to deployed a fleet of 350 ComfortDelGro eight historical characters – the Coolie, mitigate them. concept taxis that were installed with the Rickshaw Man, the Kacang Puteh blue padded seats, mats and seat belt Man, the Satay Man, the Domestic In Singapore, ComfortDelGro Insurance protectors for AXA’s “It’s OK to be Helper, the Samsui Woman, the Nyonya Brokers was able to grow its third- party overprotective” advertising campaign. and the Wayang Opera Diva – to honour business by leveraging on its technical The concept taxis, which served as the and celebrate the pioneers who had expertise, market knowledge and visual element during AXA’s launch helped build Singapore. It also created experience as well as effective and of its personal family accident plan, 50 parachuting cows in vintage army pro- active claims and risk management provided passengers with the feeling uniform during the NDP. to stay ahead of its competitors. of “being protected”.

Elsewhere, ComfortDelGro Insurance Another innovative campaign was Brokers continued to aid the Group’s for EVA Air’s “Hello Kitty Jet Launch” Business Units in Australia, China campaign. The concept bus, which and the United Kingdom (UK) in garnered 155 ,000 views on Moove securing insurance coverage that had Media’s Facebook page and close to more competitive pricing structures 5,000 shares, was not only the talk and enhancements. of the town, but was also featured in several newspaper articles as well as Following the successful formation of a trade magazines. The campaign, which dedicated Claims Management Unit for was extremely popular with Hello Kitty the Group’s Australian Business Units, fans, was a finalist at the Singapore ComfortDelGro Insurance Brokers helped Institute of Advertising’s Hall of Fame to set up a similar Claims Management Awards 2015 . Annual Report 2015 35

OPERATIONS REVIEW CHINA Beijing • Chengdu • Chongqing • Guangzhou • Jilin City Nanjing • Nanning • Shanghai • Shenyang • Suzhou • Tianjin

219.7 REVENUE (S$’mil) 11,100 1,357 TOTAL OPERATING FLEET SIZE TOTAL NUMBER OF EMPLOYEES

Bus Station • Taxi • Car Rental & Leasing Vehicle Testing Services • Driving Centre

North China business. They were a draft of the “Guidelines for Deepening Reforms Beijing and Promoting Development Taxi of the Taxi Industry” and the With a fleet of 5,501 taxis, translating “Provisional Regulations for Online into a market share of 8.3%, Beijing Jin Taxi Reservations”. The taxi industry Jian Taxi Services Co., Ltd is the Capital in Beijing is expected to be more stable City’s third largest cab operator. once specific rules and regulations regarding online taxi reservation During the year, a total of 1,130 taxis are issued. were replaced, resulting in a newer fleet. In the second half of the year, the Vehicle Testing Services Company rolled out a new and more Our 80 %-owned subsidiary, Beijing Tian cost-effective taxi model – the Shen Bao Long Da Tian Vehicle Inspection Co., Ltd, D50 , which is manufactured by BAIC provides vehicle safety and emission Motor Corporation Co., Ltd (“Bei Qi”). testing services in the Capital. The demand for the Company’s taxis remained strong with the fleet almost On 1 January 2015 , a new vehicle fully hired out. The Company also inspection system was implemented expanded its reach to include retiree as part of regulatory requirements. hirers who are keen to make better use Staff were trained and work processes of their time. relooked to ensure that the migration to the new system would not Efforts carried by the Company to affect efficiency. strengthen road safety management resulted in a reduction in accident The Company also carried out inspection compensation. works on vehicles that were used during the National People’s Congress In response to the growing popularity and the Chinese Political Consultative of ride-sharing apps in China, the Conference, as well as vehicles that were Chinese Ministry of Transport issued used for military parades. two documents aimed at regulating the emerging online taxi reservation 36 ComfortDelGro Corporation Limited

OPERATIONS REVIEW

Jilin City, Jilin Province ComfortDelGro Taxi Co., Ltd, continued the opportunity to try out the new Taxi to rank as the City’s second largest Volkswagen Jetta car model as well as Jilin ComfortDelGro Taxi Co., Ltd, operator. To attract more taxi drivers, alternative driving classes, such as Class the City’s largest taxi operator with the Company convinced the Taxi C2 driving licence for auto transmission a 14 .2% share of the market, fully Association to conduct additional Taxi and Class C 5 driving licence for the hired out its fleet of 729 taxis in Vocational Licence classes for would-be physically-disabled. 2015 . To help drivers improve their drivers who wished to join the Company. safety awareness and reduce accident These recruitment efforts were further Chongqing rates, the Company carried out safety supplemented by the Company’s efforts Driving Centre training, as well as vehicle checking in rewarding and retaining taxi drivers As demand for driving school services and inspection programmes. with long-term incentives. fell across China, our 90 %-owned subsidiary, Chongqing ComfortDelGro Shenyang, Liaoning Province Car Rental & Leasing Driver Training Co., Ltd, reduced Taxi Despite the slowdown in China’s its learning fees to retain student Our two taxi companies – Shenyang economy and demand, ComfortDelGro enrolment. Efforts were also made ComfortDelGro Taxi Co., Ltd and CityCab Rent-A-Car (Chengdu) Co., Ltd, with to synergise operations and achieve (Shenyang) Co., Ltd – operate a total its fleet of 119 vehicles, continued better cost efficiency. The Centre also fleet of 1,291 taxis, making them the to maintain long-term leasing completed the restructuring of its second largest in the City. The demand contracts with existing multi-national driving circuit during the year. It was for taxis of both companies remained organisations. One such organisation is also one of about 90 driving centres strong with their entire fleet of taxis Chevron, which extended its contract to successfully obtain the Grade One fully hired out. During the year, a total of with the Company for another year. certification in October. 106 taxis were replaced. Vehicle Testing Services East China To further capture market share Our 51 %-owned subsidiary, Chengdu and improve revenue, the two taxi Jitong Integrated Vehicle Inspection Co., Shanghai companies revised their various rental Ltd, registered an increase in revenue Taxi contracts and adjusted taxi rental rates as it inspected more vehicles during With a strong reputation as an ISO 9002 during the year. the year. It also stepped up efforts to certified company, our 51 %-owned attract new customers and improve subsidiary, Shanghai City Qi Ai Taxi Shenyang ComfortDelGro Taxi continued its service standards. Services Co., Ltd, continued to maintain to provide driver training on safety, its position as one of the premium service and professional conduct. Driving Centre operators in the City with a fleet of 484 Our 95 %-owned driving subsidiary, taxis. With the discontinuation of the Both companies maintained stringent Chengdu ComfortDelGro Qing Yang Volkswagen Santana taxi model, the standards in the area of driver selection Driving School Co., Ltd, saw a drop in Company brought in Volkswagen Lavida and vehicle maintenance. Training was demand as a result of an oversupply of taxis during the year as replacement. also given to Management staff to instructors and cars. In addition, many This new taxi model has proven to upgrade their knowledge and skills. potential student drivers had adopted a be popular with taxi drivers and wait-and-see attitude in anticipation of commuters alike, thanks to its wide and For their continued efforts, Shenyang changes to the National Policy on driver spacious interior. ComfortDelGro Taxi and CityCab training. These new regulations, which (Shenyang) were given a top grade of came into effect in December 2015 , Suzhou, Jiangsu Province “AAA Taxi Enterprise for Service Quality”. allowed students to enrol in any test Taxi A total of 555 Shenyang ComfortDelGro centre not affiliated to a driving centre. The fleet of 165 taxis operated by our Taxi and CityCab (Shenyang) taxi drivers 70 %-owned taxi subsidiary, Suzhou were also commended by the Shenyang To maintain its competitive edge and Comfort Taxi Co., Ltd, was fully hired Transportation Bureau. to attract more students, the School out in 2015 . Its taxis, especially the 20 introduced new modules with shorter Volkswagen Passats, remained popular West China training hours. It also upgraded its among passengers. training circuits and kept fees affordable. Chengdu, Sichuan Province The School is investing in a second Nanjing, Jiangsu Province Taxi Stage II Test Centre that is scheduled Taxi With a fleet of 1,070 taxis, our to be operational in May 2016 . This Nanjing ComfortDelGro Dajian Taxi Co., wholly-owned subsidiary, Chengdu second test centre offers students Ltd, our 70 %-owned subsidiary, is the Annual Report 2015 37

City’s fourth largest taxi company with Efforts to rid the Bus Station of illegal a total of 679 Compressed Natural Gas buses and touts also continued with taxis. During the year, the Company increased patrols conducted around replaced the last batch of 74 old taxis the premises. – the Kia Optimas – with two new taxi models – the Kia Forte and the Hyundai Nanning, Guangxi Province Elantra taxis. Taxi Our 80 %-owned subsidiary, Nanning South China Comfort Transportation Co., Ltd, continued to be the largest taxi Guangzhou, Guangdong operator in Nanning with a fleet of Province 854 taxis, or a 13 % market share. Bus Station Nanning Comfort Transportation was Our 60 %-owned Tianhe Bus Station in named the “Best Taxi Operator Unit” for Guangzhou served a total of 13 million the 12 th year and 10 of its taxi drivers passengers in 2015 – a 4.9% drop from were named the best in the industry for the previous year as a result of the the second consecutive year. growing popularity of the Xiamen- Shenzhen high speed rail, Guangzhou- Nanning rail line and the Guangzhou- Foshan-Zhaoqing light that affected the routes to the Chaoshan area, as well as the Fujian and Guangxi Provinces.

Cargo revenue also declined during the year due to the slowdown of China’s economy and the termination of long- distance bus services. To defray cargo handling costs, a cargo handling fee was introduced.

Leveraging on technology, the Bus Station introduced an online ticketing system in 2015 , which proved to be a hit amongst customers. Online ticket sales contributed 12 % to total ticket sales for the year as a result of marketing efforts. To improve efficiency, the Company also automated its ticket refund process, thereby cutting down the risk of human error. In July 2015 , the Bus Station offered travellers the option of buying travel insurance via WeChat. This proved very successful with more than 10 ,000 policies sold within the first two months of its launch.

To improve productivity, the Bus Station implemented job enlargement training for its Operations Department. Ticket sales and gate checking staff, for example, underwent cross training so that they could take on either role during peak periods. 38 ComfortDelGro Corporation Limited

OPERATIONS REVIEW AUSTRALIA Ballarat • Blue Mountains • • Geelong • Lake Macquarie • Maitland Melbourne • Newcastle • • Perth • •

387.1 REVENUE (S$’mil) 3,660 2,312 TOTAL OPERATING FLEET SIZE TOTAL NUMBER OF EMPLOYEES

Bus • Taxi • Outdoor Advertising

Sydney, ’s bus contracts in NSW had Bus achieved customer satisfaction scores 2015 was an eventful year for our bus between 92 % and 94 %, exceeding the business in New South Wales (NSW) regulatory requirement of 85 %. as there were several large scale developments which impacted our During the year, ComfortDelGro operations and services. Cabcharge’s charter business not only maintained its existing contracts, it also Firstly, the massive construction of the won several large contracts, including North West Rail Link at the Castle Hill those for Government agencies. It and Rouse Hill Bus Interchanges affected maintained its major rail replacement bus routes and traffic conditions. This busing contract with Sydney Trains required our operations team to work through an intense open tender process closely with the Transport for New South as well as the contract with Wales (TfNSW) and its contractors to NSW Trains. minimise inconvenience to commuters. won a four-year contract to There was also what was dubbed provide shuttle services for employees “the biggest overhaul of Central of NorthConnex Company Pty Ltd. Business District (CBD) transport in a It also negotiated with TfNSW to generation”. The changes to the CBD incorporate the major events contract, network in Sydney closed off George an independent contract for a special Street, the main thoroughfare, for the bus service that conveys customers construction of Sydney CBD Light Rail in the northwestern part of Region 4 system. ComfortDelGro Cabcharge to Sydney Olympic Park. To cater to Pty Ltd worked alongside transport the growing demand for its services, agencies and implemented the changes ComfortDelGro Cabcharge added 31 successfully with minimal inconvenience buses to its Hillsbus fleet during the year. to customers. Outdoor Advertising Customer satisfaction remained a key Moove Media Australia Pty Ltd saw an focus of Management efforts and this increase in demand as it undertook was borne out by TfNSW surveys which more bus advertising campaigns showed that all of ComfortDelGro during the year. This came as a result Annual Report 2015 39 of the Company’s continuous efforts that will commence on 1 April 2016 . Two Despite stiff competition and a to educate its clients on coverage areas more buses were also added to the QCity slowdown in the economy, Swan Taxis in Sydney as well as improvements Transit bus fleet. maintained its position as a leading taxi to its coverage insights and despatch services company in Perth, marketing research. Melbourne, Victoria Western Australia. Bus Blue Mountains and Hunter ComfortDelGro Cabcharge (CDC) in To further enhance driver experience Valley, New South Wales Victoria is one of the largest private bus with the Company, Swan Taxis launched Bus operators in the region with a market three driver incentive schemes – the During the year, ComfortDelGro share of 16 %. Driver Assistance Programme, the Star Cabcharge clinched two contracts in Drivers’ Scheme and the Provisional Taxi the Australian Capital Territory (ACT) On 21 June 2015 , the Public Transport Scheme – during the year. The Driver and Singleton (Hunter Valley) to provide Victoria’s Network Transformation Assistance Programme provides leased shuttle services for the Department of Project introduced the new Regional plate owners with financial assistance Defence. It also successfully tendered to Railway Link (RRL) – a 47 .5km railway line as an incentive, while the Star Drivers’ operate rail replacement bus services in that cuts through the western suburbs Scheme provides taxi drivers with an Hunter Valley for the first time. To cater of Melbourne namely the Geelong, overview of their service performance to demand, ComfortDelGro Cabcharge Wyndham and Ballarat regions. As a every quarter. Those rated five stars are added five buses to its Hunter Valley and result, CDC Victoria Pty Ltd re-designed rewarded with contract jobs and the top Blue Mountains Transit bus fleet. its bus networks in Geelong, Wyndham driver will be rewarded with a fully-paid and the Bellarine Peninsular to better trip. The Provisional Taxi Driver scheme Since its acquisition in 2014 , Blue connect with trains and to provide more allows new drivers to operate a Swan Mountains Transit Pty Ltd has frequent services to commuters. taxi under supervision, while they are been successfully integrated into waiting to take their practical tests. This ComfortDelGro Cabcharge’s NSW At the launch of the RRL, CDC Victoria scheme was well-received by the taxi business. Technological improvements showcased the City’s first 88 -seater industry and about 80 provisional drivers such as a more robust digital radio double deck bus in over 50 years. Made signed up in 2015 . system and the Enterprise Resource in Melbourne, the double deck bus Planning system were implemented comes with counting sensors at the Swan Taxis introduced a brand new taxi during the year. stairwell and a digital display that shows booking app in August 2015 . A second the number of seats available on the top version of the app, which included an A new digital radio system, which deck. It now serves Wyndham on Route online payment and e-receipt feature, replaces the previous analogue system 190 out of Werribee Depot as part of was rolled out two months later. With that was depot-specific and had limited a trial. the launch of the app, coupled with capacity and functionality, enables extensive marketing initiatives in users to communicate via multiple During the year, CDC Victoria also November and December 2015 , the channels. For example, the Operations implemented a range of technology- popularity of cashless payments gained Control Centre can now communicate driven projects including a new payroll momentum, and is expected to generate with many depots, including those system, the same Enterprise Resource even more revenue in 2016 . across states, through customised Planning system that was implemented talk channels. in Blue Mountains Transit, the Hastus bus scheduling system as well as the The Enterprise Resource Planning digital radio system. It also trialled a bus system, which was implemented in tracking system from LECIP and set up ComfortDelGro Cabcharge in Sydney in an interim Operations and Customer 2010 , taps on Dynamics AX, a business Centre (OCC) while a new OCC at the solution that integrates departmental new Truganina Depot was being built. functions into a single software application. It provides accurate data The Company continued its strong focus capture and reporting, as well as real- on ensuring safety of its employees, time intelligence which give insights passengers and members of the public. into business processes, and is able to Besides reviewing and updating safety identify problem areas for improvement. policies and risk registers, CDC Victoria installed new safety screens in half of Queanbeyan, New South Wales its fleet. Bus The rural and regional bus contracts Perth, Western Australia for – which serves the Taxi Greater Queanbeyan Area – and Our fully-owned subsidiary Swan Taxis – which serves Pty Ltd is Perth’s largest provider of the Murrumbateman/Yass area were taxi services with a 90 % market share renegotiated for a new eight-year term comprising 1,961 taxis. 40 ComfortDelGro Corporation Limited

OPERATIONS REVIEW KINGDOMUNITED Aberdeen • Birmingham • • Glasgow • Liverpool •

1,007.9 REVENUE (S$’mil) 8,029 5,887 TOTAL OPERATING FLEET SIZE TOTAL NUMBER OF EMPLOYEES

Bus • Coach • Taxi Radio Circuit • Private Car Hire

London, England Despite some travel cancellations due Bus to security concerns in Europe, there Limited became London’s continued to be strong demand from second largest bus operator in 2015 with visitors from China and cruise ships as a fleet size of over 1,700 buses, plying well as UK travellers from other cities. As routes mainly in North, West, Central a result, demand for our coach services London and Hertfordshire. It runs over was maintained. 18 % of London’s scheduled bus mileage. Four new Euro 6 Mercedes Benz coaches Seventeen contracts started their were added to the fleet of 38 mini five-year term as a result of Metroline coaches and double deck executive successfully retaining 11 out of 13 coaches, bringing the total fleet size existing contracts that were expiring to 42 . Service levels were enhanced by during the year and winning six the installation of Wi-Fi on all coaches new contracts. during the year.

Recruitment efforts intensified during Taxi Radio Circuit the year. The Company widened its CityFleet re-positioned itself as an recruitment drive to more countries integrated national and international within the Eurozone, and added over transport provider during the year. To 100 new bus drivers. this end, the Advantage system was upgraded and actively managed as an In addition, 84 new buses were delivered integrated platform solution capable – 74 being hybrid double decks and 10 of delivering a whole suite of services – being Euro 5 single decks. taxi, private hire, executive travel, coach hire, and specialist transport services Coach – both nationally and internationally. CityFleet Networks Limited (CityFleet) The revamp included substantial provides executive coach services across investment into new state-of-the-art the United Kingdom (UK) and mainland mobile apps, an online booking tool Europe under the “” brand and a new CityFleet Business website at that meet a broad spectrum of school, cityfleetbusiness. com. commuter, tourist and corporate coach travel needs. Annual Report 2015 41

Computer Cab plc (ComCab), which car as a result of falling fuel prices. operates a taxi circuit in London, A comprehensive network review continued to maintain its pole position was conducted in the summer and in the Capital with a fleet of 2,054 taxis. implemented in November 2015 . This removed unprofitable journeys, Despite cheaper modes of transport re- timed journeys to increase patronage and ongoing austerity drive, ComCab’s and provided a more reliable and corporate sector business improved punctual timetable. during the year as a result of aggressive sales and marketing. To enhance its competitiveness, also launched a Private Car Hire year-long campaign in August 2015 CityFleet provides hassle-free to promote Service 900 , which offers airport transfers, as well as ground over 50 journeys each way between transportation for corporate entities Glasgow City Centre and Edinburgh City and individuals who want an executive Centre daily. chauffeured car service under the “Comfort Executive” brand. Aberdeen and Edinburgh, Scotland Demand remained steady in 2015 as Taxi Radio Circuit a result of the revamped integrated Computer Cab (Aberdeen) Limited has Advantage system that caters to the largest fleet of taxis in Aberdeen. the needs of its large corporate Notwithstanding this, it faced a customers who prefer an integrated challenging year as demand for taxis platform solution. remained subdued given the local economy’s high dependency on the Liverpool and Birmingham, oil sector. England Taxi Radio Circuit Computer Cab (Edinburgh) Limited also Computer Cab (Liverpool) Limited, which faced a challenging year due to clients is the City’s largest taxi circuit operator restricting travel requirements, the loss with a fleet of 315 licensed taxis, saw of several long-standing accounts in the an increase in demand for its services, past few years and a fiercely competitive thanks to new and existing clients. trading environment.

On the other hand, Computer Cab (Birmingham) Limited, which operates 82 licensed taxis, faced a challenging year as a result of reduced spending in the private sector and austerity measures in the public sector.

Glasgow, Scotland Coach Scottish Citylink Coaches Limited (Scottish Citylink), the Group’s partnership with Stagecoach, is the leading provider of express coach services in Scotland with 99 coaches.

Demand for its Glasgow-to-Edinburgh Airport express service, which operates seven days a week, grew despite a resurgence in the use of the private 42 ComfortDelGro Corporation Limited

OPERATIONS REVIEW IRELAND Cork • Dublin • Galway • Limerick

16.2 REVENUE (S$’mil) 22 14 TOTAL OPERATING FLEET SIZE TOTAL NUMBER OF EMPLOYEES

Inter-City Express Coach

ComfortDelGro is a major provider passengers generous legroom, free of express coach travel in Ireland. Wi- Fi, and onboard toilets. Operating under the “Citylink” and “eireagle.com” brands, it runs a network The corporate website and online of inter-city and Dublin Airport express booking capabilities were enhanced routes linking cities such as Cork, Dublin, during the year, thus shortening the time Galway and Limerick. Demand for needed to make bookings. Marketing services grew in 2015 on the back of a efforts were stepped up with the strong economy. introduction of family fares, customer treat days, giveaways for competitions An express non-stop coach service and the deployment of a special onboard between Dublin Airport and Limerick safety video featuring Connacht Rugby. was launched in February 2015 . This Reach was extended via the use of social daily non-stop express coach service media platforms. offers the shortest available journey time of only two-and-a-half hours from As a result of its various efforts, Limerick City to the Airport. The service ridership grew by 6%. is served by luxury coaches that offer

t t Annual Report 2015 43

OPERATIONS REVIEW VIETNAM Ho Chi Minh City

8.7 REVENUE (S$’mil) 646 200 TOTAL OPERATING FLEET SIZE TOTAL NUMBER OF EMPLOYEES

Taxi

We operate taxi services in the economic Vinataxi became the first taxi company centre of Vietnam, Ho Chi Minh City, in the City to tie up with a third-party through two companies – Vietnam Taxi booking app called Vrada. Developed by Co., Ltd (Vinataxi) and ComfortDelGro Bo Cau Services Joint Stock Company, a Savico Taxi Company. subsidiary of VinaPhone, the app enables users to book Vinataxis in just three Amidst stiff competition, both taxi steps. Cabbies who sign up for bookings companies continued to strengthen via the app are able to offer their their operations by establishing new customers a 5% discount off the taxi fare. pick-up points to reach out to more customers. Vinataxi, for example, Both companies renewed their taxi secured two more pick-up points during fleets during the year. ComfortDelGro the year – the Eastern bus station and Savico Taxi replaced 25 of its five-year- another airport queue – bringing its old taxis with new ones. As a result, total pick-up points to seven. Along the the average age of its taxi fleet is now same vein, ComfortDelGro Savico Taxi three years old. The Company plans to too secured an additional pick-up point, purchase new taxis in 2016 and expand the Phan Ngoc Thach Hospital at District its fleet to 260 . During the year, Vinataxi 10 , in 2015 . These additional pick-up also purchased 100 new taxis, bringing points helped increase the average its fleet size to 426 . It plans to purchase monthly trips by 27 % for Vinataxi and another 100 new seven-seater taxis as 5% for ComfortDelGro Savico Taxi. part of its fleet renewal and expansion plan in 2016 . By then, 75 % of its taxi To assess the demand and effectiveness fleet will be less than four years old. of each pick-up point, Vinataxi will be investing in a Management and ComfortDelGro Savico Taxi and Vinataxi Monitoring system. Among the continued to attract and retain drivers information that it can generate are trip through advertisements, referral volumes and waiting times. About 50 sets schemes and contract renewals for of Android smartphones with this system existing drivers. will be purchased in 2016 . Vinataxi is also trialling a new despatch system and will The year ended on a high for Vinataxi, replace the existing one in 2016 . when it won “Vietnam Top 50 Well- known Trademark” award for the second year running. 44 ComfortDelGro Corporation Limited

OPERATIONS REVIEW MALAYSIA Kuala Lumpur

3.2 REVENUE (S$’mil) 229 39 TOTAL OPERATING FLEET SIZE TOTAL NUMBER OF EMPLOYEES

Auto Leasing • Inspection & Testing Services

Auto Leasing Inspection & Testing Services Our subsidiary, CityLimo Leasing (M) Setsco Services Pte Ltd’s wholly-owned Sdn Bhd offers auto leasing services in subsidiary, Setsco Services (M) Sdn Bhd, Malaysia through a fleet of 229 vehicles. provides civil engineering and non- Utilisation of our vehicles remained destructive testing services. One of the high in 2015 . The Company specialises projects that it undertook during the in dedicated fleet management for year was the sampling and analysis of clients with round-the-clock nationwide water and soil samples for the Putrajaya technical and roadside emergency Dam as well as the monitoring of assistance. Established in 1996 , it seismic activity for the Kuala Lumpur provides both short- and long-term Convention Centre. leasing for a full range of passenger cars and light commercial vehicles. It is one of the leading auto leasing service providers for multinational corporations – especially in the Oil & Gas and Infrastructure segments.