Creating a World of Difference Boustead Singapore Limited Annual Report 2016 Creating a World of Difference ‘A world of difference’: If something makes a world of difference, it improves something very much. – Cambridge Dictionary Since 1828, Boustead Singapore Limited has been creating a world of difference for millions of people from communities around the world and in Singapore. That is over 188 years or 68,668 days – generation upon generation – of making a difference and working towards enhancing the lives of others. Riding on our strong human-centric values, mindset of adaptability and reputation for credibility, integrity, quality, reliability and trust, we continue to be creators of a world of difference through our engineered solutions in energy, water, real estate and geo-spatial technology which support the sustainable economic development and transformation of our world. Creating Delivering a World of the Difference Difference Boustead Singapore Limited Boustead Projects Limited Annual Report 2016 Annual Report 2016 Key Reads Within This Report Our Business Model Group at a Glance Financial Highlights 08 14 16 Chairman’s Message Strategic Review Financial Statements 18 22 61 Corporate Contents Profile Established in 1828, Boustead Singapore Limited is a progressive global service provider of infrastructure-related engineering services and geo-spatial technology. Focusing on the engineering and Overview development of key infrastructure to support economic growth in 08 Our Business Model global markets, our strong suite of engineering services comprises 12 Global Presence Energy-Related Engineering and Real Estate Solutions. 14 Group at a Glance Under our Geo-Spatial Technology arm, we provide professional 16 Financial Highlights services and exclusively distribute Esri geo-spatial technology – 18 Chairman’s Message the world’s leading geographic information systems – to major markets across Australia and South East Asia. Our intelligent mapping platform and digital infrastructure are essential to create Strategic Review smart nations and smart cities by solving the world’s largest 22 Energy-Related problems through effective and sustainable planning, deployment and management of key infrastructure and resources. Engineering 28 Real Estate Solutions To date, we have undertaken infrastructure-related projects 34 Geo-Spatial Technology in 85 countries globally. 44 Board of Directors 46 Key Management Team In 2008 and 2009, we were recognised in the prestigious Forbes 48 Investor Relations Asia 200 Best Under A Billion as one of the Asia Pacific’s 200 best public-listed corporations under US$1 billion in revenue. We are 50 Creating a World of also listed on the MSCI World Small Cap Index for Singapore and Difference the FTSE ST Small Cap Index. 60 Corporate Information Financial Statements 61 Financial Statements 162 Management & Principal Activities 166 Statistics of Shareholdings 168 Notice of Annual General Meeting Proxy Form Creating a World of Difference Boustead Singapore Limited Annual Report 2016 Visit us or download the Annual Report at www.boustead.sg. Boustead Singapore Limited 02 Overview Annual Report 2016 Overview Strategic Review Financial Statements 03 Energy-Related Engineering Our experience and expertise are at the core of the difference we bring to our clients With engineered products and services installed in 84 countries globally, our Energy-Related Engineering Division has delivered projects for more than 60% of the world’s 50 largest oil & gas corporations including Saudi Aramco, the world’s largest oil & gas corporation. Increasingly, our engineered products and services are being used to reduce carbon and ecological footprints through waste heat recovery, and water and wastewater treatment and recycling. To date, Boustead International Heaters has designed and supplied waste heat recovery units that recover total energy equivalent to that which can heat over 2.2 million homes in the U.K. every year. Meanwhile, Boustead Salcon Water Solutions has designed and supplied water and wastewater treatment plants with a total treatment capacity of over 777 million cubic metres per year, enough to fill 311,111 Olympic size swimming pools. Division Revenue Division Profit Before Income Tax S$128.0m S$9.1m Key Highlight of FY2016 • In light of the prolonged slump in global crude prices and major cuts in capital expenditures across the global oil & gas industries, our division’s main focus was on implementing internal cost management measures and maximising supply chain cost efficiencies. Read more on page 22. Boustead Singapore Limited 04 Overview Annual Report 2016 Seagate Singapore Design Center – The Shugart, Fusionopolis, Singapore Overview Strategic Review Financial Statements 05 Real Estate Solutions (Boustead Projects) Our customised solutions differentiate us from the competition Our Real Estate Solutions Division under Boustead Projects is the only integrated industrial real estate solutions provider listed on the SGX Mainboard, incorporating multiple capabilities in: development, design-and-build, and industrial leasehold portfolio management and ownership. Our division goes beyond conventional design-and-build and development options to provide value engineering, the systematic design or redesign of a custom-built facility to ensure that clients enjoy greater or similar facility performance, function and quality at significantly reduced costs. As the outright market leader in building eco-sustainable industrial facilities, our division has built over 20% of all Green Mark Platinum-rated new non-residential facilities on Business 1 and Business 2 industrial-zoned land in Singapore since the inception of the Green Mark Programme. Our division’s Green Mark Platinum clients have enjoyed estimated total energy and water savings of over 33.7 gigawatt hours and 82,700 cubic metres respectively per year, equivalent to providing electricity to over 7,500 homes in Singapore and filling 33 Olympic size swimming pools every year. Division Revenue Division Profit Before Income Tax S$255.5m S$29.7m Key Highlights in FY2016 • Our division gained traction in Malaysia with five new contracts. • Our division extended its track record in higher value industries by securing a design-and-build contract for a full-scale data centre. Read more on page 28. Boustead Singapore Limited 06 Overview Annual Report 2016 Primary Industries & Regions South Australia’s AgInsight, Australia Overview Strategic Review Financial Statements 07 Geo-Spatial Technology Being innovative makes a difference in performance Our Geo-Spatial Technology Division is the number one provider of geographic information systems (“GIS”) in Australia, Singapore, Malaysia and Indonesia. As the transformation to smart nations and smart cities takes place, Esri technology continues to be the number one choice to map innovation and support more effective and efficient management of big data and the Internet of things including national assets, infrastructure and resources. As our world continues to evolve and become more complex and interconnected, localised events are increasingly becoming global events and impacting our daily lives. Esri technology – with its smart mapping capabilities – will be key to making sense of these complex events and issues including assisting our global effort to tackle climate change. Division Revenue Division Profit Before Income Tax S$103.0m S$19.9m Key Highlights in FY2016 • Demand remained firm across Australia and South East Asia, driven by continued strong engagement with government agencies, with several Enterprise Agreements signed with both new and existing clients. • Our division continues to evolve its business model with offerings such as Software as a Service and Cloud-based GIS. Read more on page 34. Boustead Singapore Limited 08 Overview Annual Report 2016 Our Business Model Over Boustead’s prestigious and rich heritage of 188 years, we have been creating a world of difference for millions of people from communities around the world – our global stakeholders – while delivering sustainable value for shareholders. Our experienced and versatile teams possess in-depth domain expertise and tremendous international experience. We are a knowledge-driven corporation with an excellent track record. Our in-house expertise in undertaking only the high value-added activities across the engineering value chain of activities means that we are able to focus on the details that matter most to our clients. Employing a business model with inbuilt exportability and flexibility has enabled us to adapt our business operations to diverse situations and widespread geographic markets covering 85 countries globally. At the very core of Boustead is our mission (stated below), fortified by our strong human-centric values: progress, respect, open mindedness, conduct, excellence, service and safety (PROCESS). Over time, we have established our reputation for credibility, integrity, quality, reliability and trust, which together with our values and business drivers, allow us to deliver on our long-term objectives of staying adaptable, delivering sustainable value and making a positive economic, environmental and social impact on the world. g adapta Stayin ble ss plat Busine forms Credibility Progress Our Values Re I ty s n e p t t f e e s a c g S t Our Reputation u r r i M t T y a s k S s Our Business i e e n n r v e n Drivers g B d i p e c e u O e u a d s n l i i n a p m e v Our Long-Term o s E s x s c ct e Objectives i m e u l t lle d nce Con s b i o R e v d e i a e e l g n l ia y e i i v b it t m a il l a a l it ua tr t p u y Q S s e u a c s c ha t in g on in r th ve e li wo De rld Our Mission To be the premier global service provider of infrastructure- related engineering services and geo-spatial technology; utilising our vast experience and expertise accumulated since 1828 to develop the world in a sustainable manner. Overview Strategic Review Financial Statements 09 Our Corporate Values Thinking Globally We take the global perspective; with global strategy, global business, global clients, global execution and global resources.