S200042 Size A4 Mac.9 F-koh CSR EFFORTS RECOGNISED SMRT receives 2010 President’s Social Service Award (Corporate) BRINGING YOU LIFE! 11 new Circle Line stations open AWARD-WINNING INNOVATIONS STARiS | Rail Vision | Titan Gate SMRT Corporation Ltd Annual Report 2011 Metro Awards 2010 S200042 Size A4 Mac.9 F-koh Mission Core Values To be the customer’s choice by Excellence, Respect, Responsibility providing a safe, reliable and and Recognition, Commitment to the friendly travel experience that is public, shareholders and employees enhanced through convenient and innovative services Vision MOVING PEOPLE, ENHANCING LIVES Corporate Profile SMRT Corporation Ltd (SMRT) is SMRT was listed on the Singapore Singapore’s leading multi-modal public Exchange in July 2000, and as of 31 transport operator. Established in 1987, March 2011, had a market capitalisation SMRT offers a comprehensive network of approximately $3 billion. of rail, bus and taxi services, designed to We have an annual turnover of interconnect seamlessly, helping to make $969.7 million and a net profit after tax Singapore’s public transport system one of $161.1 million. Apart from its core of the best in the world. business, SMRT has interests in operations We have established a strong and maintenance services, engineering reputation as a reliable, progressive consultancy and project management, organisation, distinguished by our sound as well as the marketing and leasing of corporate governance, commitment to commercial and media spaces within its sustainable development and corporate transport network. social responsibility. These and our excellent track record in operations and maintenance have allowed us to expand our customer base in the Middle East and Asia Pacific. © SMRT Corporation Ltd. 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Designed & Produced by Printed in META FUSION PTE LTD SINGAPORE S200042 Size A4 Mac.9 F-koh 50 Investor 12 Relations At A Glance 78 Group Performance 10 Group Financial OPERATING & FINANCIAL REPORT Highlights FINANCIAL REVIEW 113 Financial Contents 12 At A Glance 72 CEO's Message 14 Chairman’s Message 74 Company Overview & 196 Group Properties & 18 Board of Directors Background Interested Person 22 Senior Management 78 Group Performance Transactions 26 Organisational 83 Value Added & 197 Shareholding Statistics Structure Economic Value 199 Notice of Annual 27 Group Structure Added Analysis General Meeting 28 Corporate Information 85 Key Dynamics & Risk 207 Proxy Form 29 Corporate Governance Management 50 Investor Relations 90 SMRT Trains & SMRT 54 Corporate Social Light Rail Responsibility 100 SMRT Buses 70 Significant Events 104 SMRT Automotive Services 106 SMRT Taxis 108 SMRT Investments (Properties & Media) 110 SMRT International & SMRT Engineering 112 Corporate Directory ONE WITH YOU SMRT Corporation Ltd / Annual Report 2011 — 01 S200042 Size A4 Mac.9 F-koh 02 — SMRT Corporation Ltd / Annual Report 2011 S200042 Size A4 Mac.9 F-koh EVery STEP a Milestone Public transport is interwoven into the very fabric of a community. Through our community engagement programmes, we bring people together, engaging and helping them understand our network and services and what our people do to ensure an enjoyable travel experience for all. By reaching out to customers, we nurture and grow a closer community we can better serve. ONE WITH YOU SMRT Corporation Ltd / Annual Report 2011 — 03 S200042 Size A4 Mac.9 F-koh 04 — SMRT Corporation Ltd / Annual Report 2011 S200042 Size A4 Mac.9 F-koh EVery MILESTONE a Journey Your first paycheck. That hard-earned bonus. Time for a well deserved treat or a day of indulgence. Our iconic Xchanges are located just where you need them, offering many shopping and dining delights to help you celebrate life’s simple pleasures or grand moments. ONE WITH YOU SMRT Corporation Ltd / Annual Report 2011 — 05 S200042 Size A4 Mac.9 F-koh EVery JOURNEY a Destination The fun is in the journey – and being greeted by a smile and helping hand along the way. Whether you’re finding your way around a new neighbourhood or exploring exciting new places, our friendly Service Leaders are there to attend to your every need – so that you not only get to where you want to be, but arrive with happy memories. 06 — SMRT Corporation Ltd / Annual Report 2011 S200042 Size A4 Mac.9 F-koh ONE WITH YOU SMRT Corporation Ltd / Annual Report 2011 — 07 S200042 Size A4 Mac.9 F-koh 08 — SMRT Corporation Ltd / Annual Report 2011 S200042 Size A4 Mac.9 F-koh EVery DesTINATION a New Step Life comes with challenges and every step towards better living is a small milestone. Through fundraising and community outreach efforts for the disadvantaged, needy and elderly, we create an inclusive society and environment where everyone has the freedom to live life on one’s own terms. ONE WITH YOU SMRT Corporation Ltd / Annual Report 2011 — 09 Group Financial Highlights FY2011 FINANCIAL PERFORMANCE REVENUE ($m) paTMI GROSS DIVIDEND PER SHARE $969.7m $161.1m (+8.3% over FY2010) (-1.1% over FY2010) 8.5 cents 969.7 162.7 162.9 161.1 8.50 8.50 149.9 879.0 895.1 7.75 7.75 7.2 5 802.1 135.4 743.1 18.7 18.5 18.2 18.2 10.7 10.7 10.6 9.9 16.6 9.0 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY PATMI ($m) PATMI margin (%) Dividend per share (cents) Basic EPS (cents) EVA ($m) CASH AND CASH RETURN ON EQUITY EQUIVALENTS ($m) $110.8m 20.5% (-8.4% over FY2010) $376.2m (-1.3% pts over FY2010) (+15.4% over FY2010) 376.2 799.1 121.0 770.0 111.1 110.8 722.1 103.3 326.0 677.1 640.2 245.6 23.3 77.5 232.5 22.8 22.1 21.8 169.6 20.5 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY Shareholders’ Fund ($m) Return on Equity (%) 10 — SMRT Corporation Ltd / Annual Report 2011 FOR THE YEAR $m FY2007 FY2008 FY2009 FY2010 FY2011 Revenue 743.1 802.1 879.0 895.1 969.7 Other operating income 27.8 20.9 26.7 43.2 20.2 Profit EBITDA 1 255.0 284.1 299.0 320.9 314.9 Operating profit 145.3 178.0 188.7 197.2 195.6 Before tax 142.3 176.2 185.8 191.7 191.7 After tax 135.8 149.9 162.7 162.9 161.1 PATMI 2 135.4 149.9 162.7 162.9 161.1 Capital expenditure 3 (CAPEX) 107.9 118.3 190.4 114.8 100.8 Operating cash flow 286.3 261.6 280.8 326.6 283.3 Free cash flow4 195.6 165.1 142.3 239.7 176.5 Economic value added (EVA) 77.5 103.3 111.1 121.0 110.8 Financial ratios EBIT margin (%) 19.5 22.2 21.5 22.0 20.2 Net profit margin (%) 18.3 18.7 18.5 18.2 16.6 Interest cover (times) 25.7 35.4 40.5 40.6 44.2 AT YEAR-END $m FY2007 FY2008 FY2009 FY2010 FY2011 Cash and cash equivalents 169.6 232.5 245.6 326.0 376.2 Total assets 1,379.0 1,437.6 1,501.5 1,583.2 1,606.6 Short-term and long-term borrowings 250.0 250.0 250.0 250.0 250.0 (total borrowings) Shareholders’ funds 640.2 677.1 722.1 770.0 799.1 Net gearing (times) 5 0.13 0.03 0.01 Net cash Net Cash PER SHARE cents FY2007 FY2008 FY2009 FY2010 FY2011 Basic earnings per share (EPS) 9.0 9.9 10.7 10.7 10.6 Net asset value 6 42.3 44.7 47.6 50.7 52.6 Net tangible asset 7 39.6 41.9 44.9 48.4 50.3 SHAREHOLDERS’ RETURN $m FY2007 FY2008 FY2009 FY2010 FY2011 Gross dividend (cents) 7.25 7.75 7.75 8.50 8.50 Net dividend (cents) 7.00 7.75 7.75 8.50 8.50 Share price at end of year ($) 1.49 1.82 1.53 2.04 1.89 Dividend yield (%)8 6.1 4.4 4.5 4.9 4.1 Total shareholder return (%)9 39.1 26.6 (11.5) 38.2 (3.3) Return on total assets (%)10 9.8 10.6 11.1 10.6 10.1 Return on equity (%)11 22.1 22.8 23.3 21.8 20.5 Notes: 1. Earnings before interest, tax, depreciation and amortisation. Excludes impairment of goodwill 2. Profit after tax and minority interests 3. Capital expenditure refers to the total cost incurred during the year to acquire assets that are expected to be used for more than one year 4. Free cash flow = cash flow from operating activities (excludes payment of dividends) – purchase of property, plant and equipment + proceeds from disposal of property, plant and equipment 5. Net gearing = (total borrowings – cash and cash equivalents) / shareholders’ funds 6. Net asset value per share excludes minority interest 7. Net tangible asset per share excludes intangible asset and minority interests 8. Dividend yield = total gross dividend / average share price in the year 9. Total shareholder return = capital gain % (based on end-of-year share prices) + dividend yield 10. Return on total assets = PAT / average of total assets as at end FY2010 and FY2011 11.