CONTENTS Chairman’s Message 8 The Year in Review 20 Our Role as a Corporate Citizen 36 Board of Directors 12 Rail Operations 22 Our People 40 Senior Management 14 Selected Operating Data 26 Future Growth 44 Corporate Structure 16 Road Operations 30 Corporate Governance 48 Significant Events 18 Other Businesses 34 Financials 64 SMRT CORPORATION LTD LTD SMRT CORPORATION moving ANNUAL REPORT 2002 SMRT CORPORATION LTD ANNUAL REPORT 2002 DIRECTORY OF SUBSIDIARIES AND ASSOCIATED COMPANIES SINGAPORE MRT LTD TIBS TAXIS PTE LTD TRANSYS PTE LTD SMRT INTERNATIONAL PTE LTD 60 Woodlands 2 Ang Mo Kio Street 64 #04-00 SMRT INVESTMENTS PTE LTD Industrial Park E4, Ang Mo Kio Industrial Park 3 RFP INVESTMENTS PTE LTD Singapore 757705 Singapore 569084 TPG INVESTMENTS PTE LTD Telephone: 65 63690111 Telephone: 65 64810002 251 North Bridge Rd Facsimile: 65 63693639 Facsimile: 65 64844728 Singapore 179102 www.tibstaxis.com.sg Telephone: 65 63311000 MEDIACORP PRESS LTD Facsimile: 65 6334 0247 TIBS MOTORS PTE LTD 24 Raffles Place REGISTERED OFFICE AUDIT COMMITTEE AUDITORS www.smrtcorp.com 60 Woodlands #28-01/06 Clifford Centre 251 North Bridge Rd Daniel Ee Hock Huat, Chairman KPMG Industrial Park E4, Singapore 048621 Singapore 179102 Victor Loh Kwok Hoong Audit Partner: Soo Nam Chow SMRT ENGINEERING PTE LTD Singapore 757705 Telephone: 65 62364886 Telephone: 65 63311000 Lye Fei 16 Raffles Quay 300 Bishan Rd Telephone: 65 63654233 Facsimile: 65 65344217 Facsimile: 65 63341407 Koh Kheng Siong #22-00 Hong Leong Building Singapore 579828 Facsimile: 65 63687421 www.smrtcorp.com Engelin Teh Guek Ngor Singapore 048581 Telephone: 65 65548000 www.tibs.com.sg/motors/ CONVENIENCE SHOPPER PTE LTD Facsimile: 65 64537645 680 Upper Thomson Rd PLACE OF INCORPORATION EXECUTIVE COMMITTEE PRINCIPAL BANKERS www.smrtcorp.com TIBS LEASING PTE LTD Singapore 787103 Singapore Chew Choon Seng, Chairman The Development Bank Of Singapore Ltd 6 Teban Gardens Crescent Telephone: 65 64560233 Boey Tak Hap Overseas-Chinese Banking SINGAPORE LRT PTE LTD Singapore 608921 Facsimile: 65 64561821 DATE OF INCORPORATION Koh Kheng Siong Corporation Limited 1 Woodland Rd Telephone: 65 67788900 www.cheersstore.com 6 March 2000 Ng Ser Miang United Overseas Bank Limited #03-01 Ten Mile Junction Facsimile: 65 67777255 Jimmy Phoon Siew Heng Singapore 677899 www.tibs.com.sg/leasing/ BOARD OF DIRECTORS SHARE REGISTRAR Telephone: 65 68936456 Chew Choon Seng, Chairman REMUNERATION COMMITTEE Lim Associates (Pte) Ltd Facsimile: 65 67626732 BUS-PLUS SERVICES PTE LTD Boey Tak Hap, President & CEO Chew Choon Seng, Chairman 10 Collyer Quay www.slrt.com.sg 6 Ang Mo Kio St 62 Cheah Kean Huat, Director Cheah Kean Huat #19-08 Ocean Building Singapore 569140 Daniel Ee Hock Huat, Director Koh Kheng Siong Singapore 049315 TIBS HOLDINGS LTD Telephone: 65 64823888 Koh Kheng Siong, Director TRANS-ISLAND BUS SERVICES LTD Facsimile: 65 64823842 Victor Loh Kwok Hoong, Director NOMINATING COMMITTEE SINGAPORE SHUTTLE BUS (PTE) PTD www.busplus.com.sg Lye Fei, Director Engelin Teh Guek Ngor, Chairman TIBS TRADING PTE LTD Ng Ser Miang, Director Chew Choon Seng TIBS INVESTMENT PTE LTD TRANSIT LINK PTE LTD Jimmy Phoon Siew Heng, Director Jimmy Phoon Siew Heng 6 Ang Mo Kio St 62 100 North Buona Vista Rd #02-01 Tan Yong Soon, Director Singapore 569140 Buona Vista MRT Station Engelin Teh Guek Ngor, Director Telephone: 65 64823888 Singapore 139345 Facsimile: 65 64823842 Telephone: 65 67797600 COMPANY SECRETARIES www.tibs.com.sg Facsimile: 65 67777044 Catherine Kuan-Lee Yee Fong, CPA www.transitlink.com.sg Jessica Ho Mui Kheng, CPA statistical highlights smrt network map ADMIRALTY SEMBAWANG YISHUN KHATIB WOODLANDS FY 2002 FY 2001 % CHANGE NS9 NS10 NS11 NS13 NS14 FINANCIAL YEAR ENDED 31 MARCH 2002 FINANCIAL YEAR ENDING 31 MARCH 2003 GROUP (S$ MILLION) TOTAL REVENUE 500.0 413.0 21.1 24 MAY 2002 24 OCTOBER 2002 TOTAL OPERATING EXPENSES 317.3 251.6 26.1 MARSILING NS8 NS15 YIO CHU KANG ANNOUNCEMENT OF FY 2002 RESULTS PROPOSED ANNOUNCEMENT OF HALF-YEAR RESULTS EBITDA 196.6 173.2 13.6 EBIT 92.3 95.2 (3.0) 20 JUNE 2002 11 – 12 NOVEMBER 2002 (BOTH DATES INCLUSIVE) PROFIT AFTER TAX 56.8 102.8 (44.8) KRANJI NS7 TEN MILE JUNCTION NS16 ANG MO KIO ISSUE OF ANNUAL REPORT 2002 PROPOSED BOOK CLOSURE DATES PROFIT ATTRIBUTABLE TO SHAREHOLDERS 56.8 102.8 (44.7) BP14 SENJA JELAPANG SEGAR BP13 BP12 BP11 17 JULY 2002 21 NOVEMBER 2002 TOTAL ASSETS 1,924.9 1469.6 31.0 YEW TEE NS5 NS17 BISHAN ANNUAL GENERAL MEETING PROPOSED PAYMENT OF INTERIM DIVIDEND SHAREHOLDERS’ FUNDS 387.8 381.4 1.7 SOUTH VIEWKEAT HONG VALUE ADDED 386.1 374.4 3.1 BP2 BP3 24 – 25 JULY 2002 (BOTH DATES INCLUSIVE) CHOA CHU KANG NS4 BP1 FAJAR BP10 NS18 BRADDELL BOOK CLOSURE DATES FINANCIAL RATIO (%) BP4 BP5 BP6 EBITDA MARGIN 39.3 41.9 (6.2) 5 AUGUST 2002 EBIT MARGIN 18.5 23.0 (19.9) BUKIT GOMBAK NS3 PHOENIX NS19 TOA PAYOH TECK WHYE PROPOSED PAYMENT OF FINAL DIVIDEND RETURN ON EQUITY 14.8 26.8 (44.9) BUKIT PANJANG BP7 RETURN ON ASSETS 3.3 5.5 (39.3) BP8 BP9 PETIR DEBT/EQUITY RATIO (TIMES) 1.44 –– BUKIT BATOK NS2 PENDING BANGKIT NS20 NOVENA 1 SHARE INFORMATION EARNINGS PER SHARE AFTER TAX (CENTS) 3.79 6.85 (44.7) NS21 NEWTON EW1 PASIR RIS DIVIDEND PER SHARE (CENTS) 2.80 4.65 (39.8) 2 EW24 NS1 SHARE PRICE (S$) (31 MARCH) 0.68 0.76 (10.5) JURONG EAST EW2 TAMPINES MARKET CAPITALISATION (S$MILLION) (31 MARCH) 1020.0 1140.0 (10.5) NS22 ORCHARD BOON LAY EW27 4 ALJUNIED PAYA LEBAR EUNOS KEMBANGAN BEDOK EW9 EW8 EW7 EW6 EW5 OPERATIONAL HIGHLIGHTS EW3 SIMEI AVERAGE DAILY RIDERSHIP (’000) NS23 SOMERSET EW26 EW25 SMRT 1,067 1,062 0.6 EW23 SLRT 40.1 39.6 1.3 LAKESIDE EW10 KALLANG EW28 EXPO TIBS 797 746 6.9 EW22 EW4 CLEMENTI DHOBY GHAUT NS24 CHINESE GARDEN EW11 LAVENDER FARE REVENUE PER PASSENGER (S$) DOVER EW29 CHANGI AIRPORT EW21 SMRT 0.96 0.96 – SLRT 0.58 0.54 7.4 EW12 BUGIS TANAH MERAH TIBS 0.56 0.54 3.7 EW20 BUONA VISTA 3 CITY HALL EW19 EW13 NS25 NOTES 1. SMRT CORPORATION LTD’S FINANCIAL YEAR IS FROM 1 APRIL TO 31 MARCH. COMMONWEALTH EW18 EW14 NS26 2. TOTAL OPERATING EXPENSES EXCLUDE DEPRECIATION AND AMORTISATION. QUEENSTOWN RAFFLES PLACE 3. EBITDA REFERS TO EARNINGS BEFORE INTEREST, TAXATION, DEPRECIATION AND AMORTISATION. REDHILL EW17 4. EBIT REFERS TO EARNINGS BEFORE INTEREST AND TAXATION. 5. EARNINGS PER SHARE IS COMPUTED BY DIVIDING THE PROFIT AFTER TAXATION AND MINORITY INTERESTS BY THE WEIGHTED AVERAGE NUMBER OF FULLY PAID SHARES IN ISSUE. EW16 6. FARE REVENUE REFERS TO REVENUE COLLECTED FROM ALL TICKET TYPES. TIONG BAHRU EW15 NS27 MARINA BAY OUTRAM PARK TANJONG PAGAR 5 AN EPIGRAM DESIGN AND PRODUCTION TO THE NEXT LEVEL MERGING TO OFFER MULTI-MODAL SERVICES IN JULY 2001, SMRT CORPORATION LTD (SMRT CORP) ANNOUNCED ITS MERGER WITH BUS AND TAXI OPERATOR TIBS HOLDINGS. THIS WATERSHED EVENT TRANSFORMED SMRT CORP INTO SINGAPORE’S LARGEST PUBLIC TRANSPORT COMPANY AND THE COUNTRY’S FIRST MULTI-MODAL PLAYER ON ITS TRANSPORTATION LANDSCAPE. THE MERGER IS SET TO REDEFINE THE FUTURE OF PUBLIC TRANSPORT IN SINGAPORE. BUS AND TRAIN SCHEDULES WILL BE MESHED TO SHORTEN TRAVEL TIME AND ENHANCE THE TRAVEL EXPERIENCE OF COMMUTERS. THE COMPLEMENTARY NETWORKS AND COMBINED RESOURCES OF BOTH COMPANIES OFFER EXCELLENT SYNERGIES, SETTING THE STAGE FOR GROWTH IN RIDERSHIP AND REVENUE. EXTENDING MRT TRAINS ROLLED INTO SINGAPORE CHANGI INTERNATIONAL AIRPORT FOR THE FIRST TIME ON 8 FEBRUARY 2002. SINCE THEN, THE MUCH-ANTICIPATED CHANGI AIRPORT STATION HAS PROVED TO BE A HIT WITH AIR TRAVELLERS, VISITORS AND THE 35,000 PEOPLE WHO WORK AT THE AIRPORT. AN AFFORDABLE 26-MINUTE RIDE FROM THE CITY, CHANGI AIRPORT STATION IS PART OF SINGAPORE’S GATEWAY TO THE WORLD, JUST LIKE THE WORLD-CLASS AIRPORT IT SERVES. IN ANOTHER LANDMARK EVENT, DOVER STATION OPENED IN OCTOBER 2001, TO CATER TO STUDENTS AND STAFF OF SINGAPORE POLYTECHNIC AND RESIDENTS OF DOVER. THE FIRST STATION TO BE BUILT ON AN OPERATIONAL TRACK, DOVER STATION WAS AN ENGINEERING FEAT ACHIEVED WITHOUT COMPROMISING THE SAFETY OF COMMUTERS. OUR REACH FOR GREATER CONVENIENCE GEARING UP 26. 27 THERE WAS CAUSE FOR CELEBRATION IN AUGUST 2001 WHEN SMRT CORP CLINCHED THE MUCH-COVETED AWARD TO OPERATE THE CIRCLE LINE FROM THE LAND TRANSPORT AUTHORITY (LTA). THE CIRCLE LINE, OF WHICH THE MARINA LINE IS THE FIRST PHASE, WILL BE A FULLY-AUTOMATED MEDIUM-CAPACITY LINE LINKED TO THE EXISTING RAIL NETWORK. IT IS EXPECTED TO BE ABOUT 34 KM LONG. THE FIRST TWO STAGES OF THE LINE, COVERING ABOUT 10 KM ARE SCHEDULED TO BE READY IN 2006. THE CIRCLE LINE WILL BOOST SMRT CORP’S RAIL NETWORK BY 38 PER CENT; OFFERING COUNTLESS OPPORTUNITIES FOR SERVICE EXCELLENCE AND FUTURE GROWTH. FOR FUTURE GROWTH CHAIRMAN´S MESSAGE The year in review was indeed eventful for the Corporation. We announced the plan for a merger with TIBS Holdings (owner of the No. 2 bus operator and the No. 3 taxi operator in Singapore) in July 2001, won the award to operate the new MRT Circle Line in August 2001, became a component of the Morgan Stanley Composite Index for Singapore stocks in November 2001, and successfully issued S$500 million worth of bonds in December 2001. In addition, two new stations were commissioned, Dover in October 2001 and Changi Airport in February 2002. Amid all these milestone events, we were mindful of our core business of providing public transport services. This has a direct linkage to the country’s economy, and our financial performance in the reporting year reflected the general slowdown of the Singapore economy.