Annual Report 20 19 OUR VISION To Be The World’s Land Transport Operator Of Choice OUR STRATEGIES FOR SUCCESS LOOK BEYOND THE HORIZON • Innovate and be receptive to new ideas and opportunities • Solve problems in a prompt and effective manner • Anticipate and embrace change DO THE RIGHT THINGS - RIGHT • Never take our eyes off the ball • Deploy people and assets for value enhancement • Admit and learn from mistakes GROW OUR TALENT BASE • Set the performance bar above industry norms • Give credit where credit is due • Reward equitably OUR CORE VALUES RESULTS ORIENTATION COMMITMENT We will: We will: • Set challenging and realistic goals • Anticipate our customers’ needs and • Focus on results constantly upgrade ourselves to provide • Identify and solve problems outstanding service • Have a sense of urgency and ownership • Foster an environment of trust by engaging the communities we serve INTEGRITY AND ETHICS • Reward our shareholders by delivering We will: steady and sustainable results through growth in our businesses • Conduct our affairs in a manner consistent • Care for our staff by providing a challenging with the highest ethical and professional environment with ample opportunities for standards growth and development. Build on staff • Engage in fair and honest business practices capabilities through effective recruitment, • Show respect for each other, our customers, training and career planning so as to business partners, suppliers, shareholders, the develop their full potential. Promote teamwork, authorities and the communities we operate in initiative and creativity • Communicate in a factual, honest and • Stay committed to the authorities by complying prompt manner with regulatory requirements • Be open and transparent in our dealings • Exhibit strong environmental stewardship CONTENTS 02 Global Footprint 75 Directors’ Particulars 99 Group Comprehensive Income Statement 04 Chairman’s Statement 78 Risk Management 100 Statements of Changes in Equity 13 Group Financial Highlights 81 Directories 102 Group Cash Flow Statement 16 Awards & Accolades 85 Financial Calendar 104 Notes to the Financial Statements 19 Corporate Information 86 Financial Statements 189 Share Price Movement Chart 20 Board of Directors 87 Directors’ Statement 190 Shareholding Statistics 26 Key Management 92 Independent Auditor’s Report 192 Notice of Annual General Meeting 32 Operations Review 96 Statements of Financial Position 199 Additional Information on 58 Investor Relations 98 Group Income Statement Directors Seeking Re-Election 59 Corporate Governance Proxy Form Annual Report 2019 1 GLOBAL FOOTPRINT UNITED KINGDOM ABERDEEN • BARRY • BRECON • BRIDGEND CARDIFF • DUNDEE • GLASGOW • GOWER INVERNESS • LIVERPOOL • LONDON • NEATH NEWPORT • PERTH • PONTYPRIDD • POWYS RHONDDA • STIRLING • SWANSEA • TREFOREST Total Investment S$434.1 million Total Operating Fleet Size 8,208 Total Number of Employees 7 5,805 COUNTRIES IRELAND CORK • DUBLIN GALWAY • LIMERICK Total Investment S$3.1 million Total Operating Fleet Size 25 68 Total Number of Employees LOCATIONS 19 41,688 VEHICLES MALAYSIA KUALA LUMPUR Total Investment S$3.8 million 24,329 Total Operating Fleet Size EMPLOYEES 122 Total Number of Employees 42 2 ComfortDelGro Corporation Limited CHINA BEIJING • CHENGDU • GUANGZHOU JILIN CITY • NANJING • NANNING SHANGHAI • SHENYANG • SUZHOU Total Investment S$262.0 million Total Operating Fleet Size 11,345 Total Number of Employees 818 VIETNAM HO CHI MINH CITY Total Investment S$6.5 million Total Operating Fleet Size 211 Total Number of Employees 82 SINGAPORE Total Investment S$428.2 million Total Operating Fleet Size 17,358 Total Number of Employees AUSTRALIA 13,773 ALICE SPRINGS • BALLARAT • BALLINA • BLUE MOUNTAINS BILLINUDGEL • BROKEN HILL • BYRON BAY • CANBERRA COFFS HARBOUR • DARWIN • EDGEWORTH • GEELONG • GLADSTONE GRAFTON • JABIRU • MELBOURNE • MILDURA • MORISSET • NARRABRI PARRAMATTA • PENRITH • PERTH • QUEANBEYAN • SAWTELL SINGLETON • SUNSHINE COAST • THORNTON • TORONTO • SYDNEY WEE WAA • WOOLGOOLGA • YASS Total Investment S$1.17 billion Total Operating Fleet Size 4,419 Total Number of Employees 3,790 Annual Report 2019 3 CHAIRMAN’S STATEMENT We have been involved in a total of three autonomous vehicle (AV) trials in Singapore. In July 2019, we launched our third trial with EasyMile of France in the National University of Singapore and it is operating well. INTRODUCTION LAND TRANSPORT The trade war between the United States of America (USA) Interest levels in electric vehicles (EVs) remained high. In PRC, and the People’s Republic of China (PRC), which started in which has the largest number of EVs, the Authorities have July 2018, continued through 2019. Despite a Phase One decided that when taxis have to be replaced, they have to use agreement in the beginning of 2020, there are still issues EVs. Subsidies have been granted to purchase these vehicles. that may emerge as both parties enter into the next phase of However, not many drivers are keen to drive them because negotiations. Uncertainty is a nightmare that will have grave of a shortage of charging stations and the need to charge consequences on the global economy, currency and political batteries frequently. There are cases of vehicles which are divide. We are now in an extremely volatile situation. Our equipped with transferable batteries. Even that is not popular. businesses have been adversely affected. For the same reasons, EVs are also not popular in Singapore The much hoped for peaceful resolution in the Korean even though there are plans to expand the number of charging Peninsular did not take place. For most part of the year, the stations. The Minister for the Environment and Water Resources Brexit crisis in the United Kingdom (UK) hung on a balance has also reflected on the lack of charging stations and has and only saw some resolution at the end of 2019 when the suggested that hydrogen could be a better bet in the longer Conservative Party won the General Elections with a handsome term compared to EVs from a carbon footprint perspective. majority. Finally, 31/2 years after the Brexit Referendum, the UK had ceased to be a member of the European Union (EU) In another development, the Singapore Government had from 1 February 2020. Most of Asia remains peaceful although appointed a team of US consultants to assess the feasibility protracted unrest continued to plague Hong Kong. of importing hydrogen for downstream use, ranging from vehicle fuelling to power generation. There are now The consequence of all these happenings is that our three more manufacturers who have jumped on the hydrogen operating foreign currencies of Sterling Pound (£), Australian bandwagon so we can expect more developments in this area Dollar (A$) and Chinese Renminbi (RMB) were affected when going forward. compared against our reporting currency, the Singapore Dollar (S$). The variations of the average rates for the year In the 2020 Singapore Budget approved in February, the were as follows: Government has announced incentives for EVs to be introduced in an effort to promote cleaner energy by 2040. 2019 2018 Variance In this respect, internal combustion engine vehicles will £1 S$1.7413 S$1.8003 -3.3% be phased out and more charging points will be installed islandwide. 1 RMB S$0.1975 S$0.2041 -3.2% A$1 S$0.9484 S$1.0083 -5.9% We have been involved in a total of three autonomous vehicle (AV) trials in Singapore. In July 2019, we launched our third trial The emergence of the rapidly spreading COVID-19 in the with EasyMile of France in the National University of Singapore beginning of 2020 is also likely to have effect on the global and it is operating well. We have also been operating two others economy. My hope is that it will not be a repeat of the in Sentosa and Jurong Island. The AV trial at Sentosa ended in Severe Acute Respiratory Syndrome (SARS) that we had badly November 2019. Meanwhile, the Singapore Government had experienced in 2003. decided to designate the whole of western Singapore as a testbed for AVs. With this expansion, there will be 1,000km of public roads for companies to conduct tests. 4 ComfortDelGro Corporation Limited The Singapore Authorities have repeatedly emphasised the fact 45-Minute City with 20-Minute Towns. This essentially means that the rail business in Singapore is incurring huge losses by that all journeys to the nearest neighbourhood centre using the two operators and that the Government is spending and will Walk-Cycle-Ride modes of transport will take less than 20 continue to spend large sums of money in rail development and minutes and 9 in 10 peak-period journeys using the same upgrading. The latest is an announcement by the Government Walk-Cycle-Ride will be completed in less than 45 minutes. to set up a S$30 million rail staff development fund. The Plan also conveys the policies of “Transport for All” and “Healthy Lives, Safer Journeys”. To help mitigate the high cost of running the rail network in Singapore, fares were raised by 7% with effect from 28 To this end, the rail network will expand to 360km by 2030. December 2019. The last increase was in December 2018 at Bus speeds will improve with 211km of bus lanes throughout 4.3%. These came after three consecutive years of reductions Singapore as well as Transit Priority Corridors. The cycling in 2015, 2016 and 2017. path network will expand to 1,320km by 2030, thanks to a S$1 billion Islandwide Cycling Network Programme. Self-driving Efforts by the Government to improve land transport have bus services will be introduced. By 2040 also, the entire bus borne fruit as evidenced by the findings of the Annual Public and taxi fleet will use cleaner energy. AVs will be deployed Transport Customer Satisfaction Survey, conducted between together with on-demand dynamically-routed buses in pilot mid-September and early-October 2019 with results released programme in new towns such as Punggol, Tengah and the in February 2020. The mean satisfaction score was 7.8 out of Jurong Innovation District.