Calculate the following financial indicators for last three years (201X, 201X and 201X) using the attached documents.

(i) Compounded average revenue growth rate over 3 years

(ii) Compounded average net property income growth rate over 3 years

(iii) Compounded average net income growth over 3 years

(iv) Compounded average total return growth rate over 3 years

(v) Asset turnover ratio

(vi) Return on revenue (Sales)

(vii) Return on equity

(viii) Return on total asset

(ix) Earnings per unit

(x) Net asset value per unit

(xi) Current ratio

(xii) Quick ratio

(xiii) Debt ratio

(xiv) Time interest earned

BOOK NOW 38 111 111 38 111 111 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 Focus on results Identify and solve problems Have a sense of urgency and ownership Integrity and Ethics We will: Conduct our affairs in a manner consistent with the highest ethical and professional standards Engage in fair and honest business practices Show respect for each other, our customers, business partners, suppliers, shareholders, the authorities and the communities we operate in Communicate in a factual, honest and prompt manner Be open and transparent in our dealings Exhibit strong environmental stewardship Anticipate our customers' needs and constantly upgrade ourselves to provide them with outstanding service Foster an environment of trust by engaging the communities we serve Reward our shareholders by delivering steady and sustainable results through growth in our businesses Care for our staff by providing a challenging environment with ample opportunities for growth and development. Build on staff capabilities through effective recruitment, training and career planning so as to develop their full potential. Promote teamwork, initiative and creativity Stay committed to the authorities by complying with regulatory requirements CONTENTS 02 Global Footprint 04 Chairman's Statement 11 Milestones Achieved Under the Stewardship of Mr Kua Hong Pak 17 Group Financial Highlights 20 Awards and Accolades 24 Corporate Information 25 Board of Directors 29 Key Management 36 Operations Review 53 Investor Relations 54 Corporate Governance 74 Directors' Particulars 77 Risk Management 80 Directories 84 Financial Calendar 85 Financial Statements 86 Directors' Statement 91 Independent Auditor's Report 94 Statements of Financial Position 96 Group Income Statement 97 Group Comprehensive Income Statement 98 Statements of Changes in Equity 100 Group Cash Flow Statement 102 Notes to the Financial Statements 170 Share Price Movement Chart 171 Shareholding Statistics 173 Notice of Annual General Meeting Proxy Form annual report 2016 01 GLOBAL FOOTPRINT 35 Cities 7 Countries 45,335 Vehicles 22,048 Employees SINGAPORE BOOK NOW CHINA AUSTRALIA UNITED KINGDOM IRELAND VIETNAM MALAYSIA 02 comfortdelgro corporation limited 38 111 111 38 111 111 Singapore Beijing Chengdu Chongqing Guangzhou Jilin City Nanjing Nanning Shanghai Shenyang Suzhou Tianjin Ballarat Blue Mountains Canberra Geelong Lake Macquarie Maitland Melbourne Newcastle Parramatta Perth Queanbeyan Sydney Aberdeen Edinburgh Glasgow Liverpool London Cork Dublin Galway Limerick Ho Chi Minh City Kuala Lumpur annual report 2016 03 CHAIRMAN'S STATEMENT REVENUES AT A GLANCE BOOK NOW SINGAPORE S$2,545.9M UNITED KINGDOM S$906.3M AUSTRALIA S$385.5M I am very happy to report that we had another successful year. This is not an easy achievement and I am proud that our Management has managed to continue to grow the business despite the very difficult global business environment. Introduction The shocking outcome of the Brexit Referendum, the even more shocking United States Presidential Election, the refugee crisis in Europe, the tumultuous political struggle in the Middle East, the build-up of nuclear capabilities in North Korea and the protracted episodes in the East and South China Seas were the major political developments affecting our business in 2016. In the economic sphere, global growth continued to slow down while productivity declined. Global commerce and trade remained stunted and the cost of doing business rose. Set against 04 comfortdelgro corporation limited this backdrop, protectionism and antiglobalisation measures became the order of the day in many countries. Commodity prices remained weak while oil prices continued to hold at low levels. Currencies continued to fluctuate with the British Pound taking a beating (-15.3%) after the Brexit result. The Australian Dollar strengthened marginally (+1.4%) while the Chinese Renminbi, now an International Monetary Fund reserved currency in the Special Drawing Rights basket of currencies, dipped (-4.2%) against the Singapore Dollar, our reporting currency. In the field of technology, we are also witnessing the rapid evolution of the Fourth Industrial Revolution as technological advances are moving at breakneck speed and artificial intelligence is becoming a reality. Amidst such global uncertainty and upheaval, the Group has found it challenging to grow and expand our businesses as much as we would like to. That said, Management has turned in a respectable performance and registered its eighth year of steady growth. CHINA S$192.4M Singapore Transforming i.\tPhysical After the celebrations of Singapore's 50th Anniversary of Independence, the Government embarked on a long-term transformation programme and set up the Committee on the Future Economy (CFE) which I reported in my last statement. The Report was released in February 2017 and we will accelerate our undertaking to take into account the seven strategies outlined. We also look forward to schemes to be devised by the Authorities in implementing these strategies. Tenders for the redevelopment of the Jurong Lake District as the second central business district have been called. Plans are also afoot for the Mandai Makeover and a new Tengah Township. The latter, a new town development, comes after a lapse of 20 years and will feature a forested setting together with some 'smart' elements. It will include Singapore's first car-free town centre as part of the car-lite efforts. All roads will get dedicated walking and cycling paths. ii.\tSocio-Economic The Smart Nation programme, with its various initiatives, is being explored, studied and implemented. Aspects which are directly relevant to us include programmes related to autonomous and driverless vehicles and the car-lite environment infrastructure. Our population reached 5.61 million as at June 2016. Growth in our economy is expected to slow to a low of between 1% and 3% for a few years as it restructures and matures. IRELAND S$17.6M VIETNAM S$8.9M The re-employment age will be increased to 67 years old with effect from 1 July 2017. The Government has convened a committee to review the ElderShield Scheme as part of its broader efforts to provide for better retirement adequacy and healthcare assurance as seen in the review of the MediShield Life Scheme and the introduction of the Pioneer Generation Package. iii. Land Transport Singapore now has five Mass Rapid Transit (MRT) lines, three Light Rail Transit (LRT) lines, more than 5,000 public buses and 28,000 taxis. In addition, about 7.9 million passenger trips are made daily (3 million on trains, 3.9 million on buses and 1 million on taxis). The MRT Masterplan which I mentioned in 2008 together with its revision in 2013 is well under way. We started operations on our Downtown Line (DTL) Stage 2 on 27 December 2015. We will be getting ready for the final Stage 3 opening in 2017. By then, all the 34 stations on the DTL will be open to the public. MALAYSIA S$2.9M bus routes opened for public tenders. Terms of the remaining 80% of the existing routes were successfully negotiated between the Land Transport Authority (LTA) and the two incumbent operators. From 1 September 2016 onwards, the Authorities have assumed full revenue risk in all scheduled bus routes. As part of its expanded role, the Public Transport Council (PTC) has issued its first report to the Minister for Transport on its recommendations on improving the commuter's journey. To further promote a car-lite society, the Authorities have announced plans to build cycling paths with a target of 700km by 2030. This is also the deadline when the Land Transport Masterplan will be fully implemented with a rail network distance of 360km. A full write-up of our involvement can be found in the Annual Report of our listed subsidiary, SBS Transit. An announcement has been made that our listed subsidiary, SBS Transit Ltd, together with the other rail operator, will be the only two operators invited to tender for the Thomson-East Coast Line (TEL). The tender is expected to take place in the first quarter of 2017. The Line is set to be completed by 2024 and will first start to operate in 2019 over five stages. In a move which helped level the playing field in the taxi/private hire business in Singapore, the Authorities removed the minimum 250km mileage criterion from the Taxi Availability standard with effect from 1 January 2017. It also announced in February 2017 that private hire car drivers from ridesourcing service operators are now required to obtain a vocational licence under amendments to the Road Traffic Act and to display a decal on their vehicles. The new Bus Contracting Model (BCM) went into full swing in 2016, with 20% of the existing Driverless taxis and autonomous vehicles are on trials. The Park and Ride Scheme ceased to operate annual report 2016 05 CHAIRMAN'S STATEMENT from 1 December 2016 after 26 years. Towards the end of the year, the High Speed Rail Project Agreement between Singapore and Kuala Lumpur was signed. Scheduled for operation by 31 December 2026, the new rail line will operate a distance of 350km (with 15km in Singapore) and eight stations. It is expected to have a travel time of 90 minutes. The new land transport landscape is indeed exciting and challenging. As a Group, we will continue to gear up as we prepare to take on even more challenges in the new environment. Corporate Governance i. Board Diversity The Diversity Action Committee continued its efforts to increase women representation in the boards of listed companies. In its 2016 report, it said that the percentage had further increased to 9.7% from 9.5% a year ago. It also suggested that the Monetary Authority of Singapore (MAS) strengthen the Code of Corporate Governance (Code) by requesting listed companies disclose their diversity policies, set measurable objectives and make progress reports. I am pleased to say that we have a very diverse Board in terms of expertise and knowledge (legal, accounting and technology), overseas business experience, top management leadership experience at business, government and grassroot levels, gender, age, and involvement in the labour movement. These are very relevant to the nature of our regulated land transport business. This did not come by chance but is the result of a concerted effort to maintain as diversified a Board as possible. ii. Code of Corporate Governance We continued to do well in the Singapore Governance and Transparency Index 2016, a joint initiative by the Centre for Governance, Institutions, and 06 comfortdelgro corporation limited Organisations at the National University of Singapore Business School, Singapore Institute of Directors and CPA Australia. We take pride that the scores of our three listed companies are within the top 7% of the 631 listed companies covered in the Index: ComfortDelGro at 83, SBS Transit at 79 and VICOM Ltd at 88 far exceeded the national average of 49.7. Our respective rankings are 32nd, 41st and 20th. We also fared well at the ASEAN Corporate Governance Scorecard. This index measures the top 100 companies of each nation. In Singapore, ComfortDelGro is ranked 25th. On 27 February 2017, MAS announced that it has formed a Corporate Governance Council to review the Code. The last review was in 2012. iii. Singapore Stock Exchange Last year, we produced our first Sustainability Report, ahead of regulatory requirements. The Singapore Exchange (SGX) has mandated that all listed companies will have to publish a sustainability report for financial years ending on or after 31 December 2017. The SGX also commissioned KPMG to conduct an inaugural review of the extent of disclosures of the 85 requirements under the Code of Corporate Governance 2012. Judging from the general findings on remuneration matters, board matters, accountability and audit and shareholders rights and responsibilities, I am confident that we have done well though no specific score has been published for each of the companies. The SGX announced its restructuring plans to delink the regulatory and supervisory functions from the commercial function. The regulatory function will be placed in a separate subsidiary with a chairman independent of the SGX. This is expected to take place in the second half of 2017. iv.\tAudits I continued my practice of meeting up with our External Auditors together with all the Chairmen of our three Audit and Risk Committees (ARCs) in the absence of Management staff. This is in addition to each of the ARCs meeting with the External Auditors, also in the absence of Management staff. I am pleased to report that our Management staff had continued to extend their full cooperation and assistance to the External Auditors in the course of their work. No serious shortcomings were surfaced. Our Internal Audit team continued to undertake assignments, both locally and abroad. In the year under review, 32 internal audits were conducted including 14 or 44% on our overseas entities. There were no serious issues that warranted the attention of the Board. v. Investor Relations and Awards Our Investor Relations (IR) team continued to have an active year meeting up with our investor representatives and research analysts. Our team also participated in seven investor conferences and non-deal road shows in Singapore, Kuala Lumpur, Taipei, Hong Kong, London and Edinburgh. We held 219 meetings and post-result briefings. These opportunities gave us the platforms to make known our strategies, our operations and our Vision. Feedback gathered from these sessions was also useful to our planning and follow-up activities. We continue to adopt a transparent and prompt approach when dealing with our investors. Announcements are clearly and accurately disseminated to all Shareholders through the Exchange and on our website. Sixteen research houses covered our stock. In the course of the year, more than 170 research reports were produced. In anticipation of large turnouts at our Annual General Meetings (AGMs) as a result of changes to The Companies Act and the Central Provident Fund (CPF) Act, we decided to hold the Meetings at the larger HDB Hub instead of our usual office premises. Advanced notices and reminders were sent out so that Shareholders did not mistakenly proceed to the previous venue. We continued to meet up with our Shareholders after the AGMs sharing some light refreshments with them, attending to their queries and exchanging views with them. Board Directors and Management staff enjoyed these valuable sessions. Our companies continued to receive awards in their places of work. In particular, VICOM won the Merit Award for Corporate Governance in the Big Cap category at the Securities Investors Association Singapore's (SIAS) Investors' Choice Awards 2016. Our loyal Shareholders continued to hold our stock with 22% coming from North America, 14% from the United Kingdom (UK), 13% from Asia excluding Singapore and 5% from Europe. These constitute a majority 54% of our shareholdings. The top 20 Shareholders held 43% of our shares. We remained one of the 30 stocks of the Straits Times Index (STI). In the year under review, the STI outperformed us by about 19%. Initiated by the industry, a new Singapore Stewardship Principles, with the support of the MAS and the SGX, was launched in November 2016. I am pleased to advise that our IR activities are already in line with these Principles. vi. Directors' Continuing Education As part of our Directors' continuing education, several informatory sessions were conducted. A session on the major amendments to The Companies Act was conducted by a leading legal firm while another on Changes to the Regulatory Standards was also held. Other sessions included those on IFRS Convergence, Enhanced Auditors' Report, Sustainability Reporting and Cyber Security: Global Trends and Outlook. vii.\tDirector Renewals Starting from 2017 AGMs, one director each from our three listed entities will retire. This represents about 14% of our Group of non-executive Directors. It is a healthy start towards our director renewal process. Singapore Businesses We continue to operate in eight business areas in Singapore. These are (i) public transport services (bus and rail), (ii) taxi, (iii) vehicle inspection and non-vehicle testing services, (iv) engineering and diesel sale, (v) car rental, (vi) driving education, (vii) vehicle and outdoor advertising and (viii) insurance broking. The Scheduled Bus business assumed the new BCM in September 2016. SBS Transit's market share fell but it no longer takes on the revenue risk. The Unscheduled Bus business continued to be a significant player, running most of the major national events in addition to its usual school, corporate and Premium Bus Service contracts. The Rail business covers the North East Line (NEL), DTL MRT and the Sengkang and Punggol LRT systems. Ridership on all the Lines increased during the year. Despite strong competition, our Taxi business held its own through its awardwinning booking app. New features were added to make booking that much easier for the commuters. As a result, call booking volumes remained strong. Cashless transactions also increased during the year with the return of VISA cards. We continue to assist and support our drivers who are our close working partners. For example, we introduced an assistance fund during the year to help those who find themselves in need of urgent financial assistance as the economy slows. We also reward our loyal customers with attractive, practical and sustainable promotions from time to time. We remain committed to improving our overall service levels to both our drivers and their passengers. To this end, we have made significant investments and continue to be the leading taxi operator with a fleet size of close to 17,000 taxis or 61% of the market as at 31 December 2016. Our Engineering business serves as a strong support for our taxi business. Our priority is to maintain our fleet of vehicles, ensuring they stay in tip-top condition. Our islandwide branches of workshops also offer convenience to our drivers, and our commitment to workplace efficiency ensures that the downtime for taxi maintenance is minimised. In addition, our drivers are also provided with subsidised diesel. Besides serving our taxi fleet, our engineering arm also services and maintains fleets of large corporations and individuals. Despite increased competition, our Car Rental business continued to hold its own. Our Driving School won contracts from the Home Team and the Singapore Civil Defence Force, further reinforcing its position as Singapore's leading driving school. It celebrated its 20th year of existence in 2016. We remain the dominant operator in the Vehicle Inspection industry with a 74.4% market share. We have kept inspection fees unchanged since 2007 and instead focussed on delivering greater value for our customers through productivity improvements. We continue to keep abreast of technological developments in car manufacturing and their pursuant testing needs. Our Non-vehicle Testing business experienced a challenging year as the global economy slowed. A full report of the Vehicle Testing and Non-vehicle Testing sectors appears in the Annual Report of our second listed subsidiary, VICOM. annual report 2016 07 CHAIRMAN'S STATEMENT Our Outdoor Advertising business covers mainly taxi, bus and rail advertisements. There was increased activity during the year as DTL 2 opened for operations. The creative advertising packages produced continued to attract high patronage. The Insurance Broking business continued to look after our Group's multi-million dollar insurance premium, both locally and abroad. Effective savings and enhanced coverage have been achieved for our Group. Despite the competitive environment, we continue to look for growth and improvements. Overseas Businesses We operate in six overseas countries: the UK, Ireland, Australia, China, Vietnam and Malaysia. Other than rail, engineering, non-vehicle testing, insurance broking, the remaining five businesses that we run in Singapore, together with the bus station business, operate in the overseas countries. Towards the end of the year, we signed a Share Sale Agreement to purchase the remaining 49% stake in ComfortDelGro Cabcharge Pty Ltd for S$201.1 million (A$186.0 million), making it a wholly-owned subsidiary of the Group. This is the entity which owns the bus operations in Sydney and Melbourne where we are the leading private bus operator. The sale was completed in February 2017. i. United Kingdom The UK continues to be the best performer amongst our overseas operations. Our Bus and Coach businesses there performed commendably but the Taxi Circuit and Private Hire businesses faced great challenges. The fall in the value of the British Pound post-Brexit resulted in a drop in translated profits. Our Scheduled Bus business, operated through our wholly-owned subsidiary, Metroline, retained its position as the second largest 08 comfortdelgro corporation limited operator in London with a market share of 19.1%. It operated more than 1,740 buses on 108 routes during the year, including 394 environmentally friendly buses like fully electric and hybrids, of which 147 were the iconic 'New Routemaster' double decks. In March 2016, it won the 'Bus Operator of the Year' Award at the London Transport Awards. Our Coach operations in England and Scotland, including the InterCity Express Coach operations between Scotland and major English cities continue to perform up to our satisfaction in a very competitive environment. ii.\tIreland The Intra-City Coach operation in Ireland is doing very well. We run a network of six routes linking four major cities (Cork, Dublin, Galway, and Limerick) as well as direct Dublin Airport express coach services under the 'Irish Citylink' and 'eireagle.com' brands. On-bus sales and website sales are predominant and account for close to 95% of our bookings. iii.\tAustralia We operate in four cities: Sydney, Melbourne, Canberra and Perth. We also operate in major cities and regions such as Blue Mountains, Hunter Valley, Geelong, Ballarat and Queanbeyan. We run scheduled bus, chartered bus and school contract services in Sydney and Melbourne. In New South Wales (NSW), we are one of the largest private bus operators with 1,198 buses. Likewise in Victoria, we have 515 buses. We also offer vehicle advertising services in NSW. In Perth, we run Swan Taxis, the largest taxi circuit in the City with 1,724 vehicles. Perth City is undergoing some changes to the transport scene as a result of the On-demand Transport Industry Reforms introduced by the previous Minister for Transport. We continue to perform satisfactorily in the new environment competing against third-party apps and ride- sharing services. iv.\tChina China is our third largest overseas destination. We operate in five business areas in 11 cities - taxi, long-distance bus station, car rental & leasing, vehicle inspection and driving education. Provision of taxi services continues to be our major business in China with 10,778 vehicles operating in nine cities. We are still the leading operator in Jilin City and Nanning, second in Chengdu and Shenyang, third in Beijing and fourth in Nanjing. The remaining cities with smaller fleets are Shanghai, Suzhou and Tianjin. Like everywhere else, disruptive technologies have had an impact on the taxi industry in China. The Government has, however, laid down a set of regulations aimed at levelling the playing field with clear definition of taxi age and usage, and residential, driving and security profile of the drivers. It is our hope that these new regulations would provide a fair competitive climate. Despite the introduction of the high speed rail network, our Bus Station business continued to perform well through innovative marketing and the introduction of new value added services including fuel selling and passenger insurance and appenabled ticket purchases. v.\tVietnam Our two taxi companies in Vietnam performed satisfactorily despite the increased competition. With 604 vehicles, we still rank third in Ho Chi Minh City. vi.\tMalaysia The slowdown of the Malaysian economy has posed challenges to our Auto Leasing company which operates 182 vehicles. Manpower The cost of manpower continued to rise. In 2016, our Group manpower expense reached S$3.99 million per day, an increase of 3.9% from 2015. While extra efforts have been made to manage this cost, there is a limit to what we can do given that our vehicles still need to be manually operated by human beings. We continue to focus on staff development to service our clients. We also reviewed and streamlined manpower structures at the various Business Units, enlarging job scopes and further flattening reporting lines. Process reviews were also undertaken to improve productivity and efficiency. Concurrently, senior management bench strength was also beefed up to meet future challenges. Our staff strength in 2016 stood at 22,048, a drop of 255 from 2015. Part of the decline is due to the transfer of bus captains under the new BCM in Singapore. About 44% of our staff are based overseas. Overall, 28% of our staff are Singaporeans. The other four major nationalities are Malaysians (21%), British (14%), Australians and the People's Republic of China nationals (10% each). Together, they constitute 83% of our total workforce. Information Technology We continue to invest significantly in technology and information technology. In 2016, this accounted for about 1.1% of our total revenue, or about S$44.4 million. For example, we invested S$1.5 million in the Mobileye Safety System in Singapore which assists our bus captains in their driving so as to avoid unnecessary accidents. A similar system is being rolled out in our Australian operations in 2017. Finance I am very happy to report that we had another successful year. This is not an easy achievement and I am proud that our Management has managed to continue to grow the business despite the very difficult global business environment. Group total revenue has reached S$4.06 billion in 2016. This is slightly lower than 2015 by 1.3%. Despite the drop in revenue, Group operating profit increased by 2.6% over 2015 to S$462.2 million. The two leading Business Units, taxi and public transport services, continued to be the top performers. Their combined revenue represents 89.8% of our Group total revenue. This is 0.8 percentage point higher than 2015. However, Group taxi revenue surpassed previous year by 0.7 percentage point, while the Group's public transport services revenue also edged marginally higher compared to 2015 by 0.1 percentage point. These two businesses also lead in operating profits, contributing close to three-quarters of total Group operating profit. With weaker foreign currencies prevailing in our overseas operations, overseas total revenue in 2016 was 37.3% of Group total revenue, a slight decline of 2.7 percentage points from 2015. Likewise, overseas total operating profit is also 5.1 percentage points lower than 2015's Group total operating profit at 40.5%. The Group's profit before tax reached a record of S$466.6 million in 2016. This is 3.2% higher than 2015. Profit attributable to shareholders is also a record at S$317.1 million or 5.0% better than 2015. Earnings per share in 2016 increased by 4.6% to 14.72 cents. Net asset value per share increased to 114.77 cents from 108.60 cents previously. With these sets of figures, returns to both equity and total assets were 13.2% and 7.3% respectively in 2016 compared to 13.3% and 7.1% in 2015. Capital expenditure in 2016 was S$466.5 million compared to S$669.6 million in 2015. We will expect this expenditure to slow down as a result of the introduction of the new BCM in Singapore in which the Authorities are responsible for the ownership of the buses. However, we will continue to expand in areas where our needs are critical especially in the area of technology. Our balance sheet continues to be strong and healthy. We maintain this status so as to be able to distribute a reasonable dividend to our Shareholders as well as to be in a comfortable position for future expansion. As at end of 2016, our assets stood at S$5.1 billion, a slight drop of 1.8% from 2015. This has resulted in our total borrowings reduced to S$345.1 million from S$558.6 million in 2015. Our gearing ratio was 10.8% compared to 18.5% in 2015. Our net cash position was S$434.2 million compared to S$229.2 million in 2015. Your Directors have recommended a higher tax-exempt one-tier final dividend of 6.05 cents per share. This will be subject to Shareholders' approval at our AGM on 26 April 2017. Together with the tax-exempt one-tier interim dividend of 4.25 cents per share paid earlier, the total dividend for 2016 would be 10.30 cents per share. This is 14.4% higher than 2015 and represents 70.1% of our payout. It is also higher than our declared minimum 50% dividend policy. Against the year-end closing price of S$2.47, the yield was 4.2%. Corporate Social Responsibility Accompanying this Annual Report is the second edition of our Sustainability Report. It covers all the countries that we operate in compared to the first edition which covered only Singapore operations. Outlook And Challenges As I write this Statement, it is clear that the global political and economic environment going forward will be very challenging. How countries react to events happening around the world will determine to a large extent our future business strategy. In Singapore, we will closely monitor new regulations that may emerge following the release of the Report by the CFE. annual report 2016 09 CHAIRMAN'S STATEMENT The evolution of vehicle manufacturing will also affect our business in the years to come. We will keep a keen eye on the development of electric, hybrid and autonomous technologies and the ensuing changes in legislation, which I suspect will take a while as mindsets and attitudes towards such new innovations slowly change. We are also monitoring developments in technology applications, specifically in the area of land transport. We will continue to invest in new technologies to further improve our service offerings to our customers. It is inevitable that with changes to the business environment, appropriate manpower may need to be recruited to meet the challenges. This is the challenge that the Human Resource Department needs to anticipate and work closely with the business groups, the relevant government agencies and the labour unions. Our efforts to continue our overseas investments may need to be intensified. A new strategy may need to evolve in light of new changes and challenges. Changing Of The Guard Mr Kua Hong Pak, our Founding Managing Director/Group Chief Executive Officer (MD/Group CEO), has decided to step down on 30 April 2017. He has been at the helm for over 14 years. It has been my fortune to work very closely with him as both of us were directly responsible for the Merger of Comfort Group Limited and DelGro Corporation Limited in March 2003. 10 comfortdelgro corporation limited His hard work, determination, commitment and passion, together with his foresight, have brought ComfortDelGro to its present position. Under his leadership, the Group experienced compound annual growth rates of 5.1% in revenue, 5.8% in operating profit and 4.8% in total assets during the period from 2003 to 2016. It is indeed very rare for a Singapore-based company to venture so successfully overseas in land transport in so short a time. I wish to congratulate him for his fine efforts. In appreciation of his significant contributions, we have decided to devote a few pages in this Annual Report to reflect and record his achievements. I am also very happy that Mr Yang Ban Seng, our CEO in the Taxi Division, will be taking over the helm. Ban Seng is not new to the Group having been with Comfort and then ComfortDelGro for over 28 years. I have no doubt that he will bring the Group to new heights in a very challenging and interesting business environment. Appreciation In thanking Mr Kua Hong Pak for his many valuable and significant contributions over a period of 14 years, from 2003 to 2017, I also wish to add my grateful appreciation to my fellow Directors for their advice and suggestions over these formative years. We have embarked on a process of director renewals starting with the coming AGM where Mr Tow Heng Tan will be retiring. Heng Tan has been with us since 2002, first with Comfort and then ComfortDelGro. He has been a member of both the Remuneration Committee and the Investment Committee. He was also the Chairman of our Remuneration Committee from 2012 to 2016. My thanks also go to our hardworking Management staff, many of whom have been with the Group since it formed. To our Partners, I also wish to express my appreciation for their loyalty, understanding and assistance in the course of the year under very trying circumstances. To the Regulators and Labour Unions, we look forward to working together to further improve the level of service to our commuters. To our Commuters, we continue to have your interests at heart. We appreciate your continued patronage. We do not take your relationship with us for granted and will continue to work hard to ensure your journey with us is safe, comfortable and rewarding. I also wish to thank our faithful and loyal Shareholders for their trust, understanding and cooperation in the course of the year. I see long-term shareholdings remaining in our register of members. We shall continue to do our best and hope for growth in the coming year. Lim Jit Poh Chairman March 2017 MILESTONES Achieved under the stewardship of MR KUA hong pak Having led the Group since its formation on 29 March 2003, Mr Kua Hong Pak has become synonymous with ComfortDelGro Corporation Limited. In the last 14 years, he has steered the Group through some choppy waters with a steady and unwavering hand, all the while upholding its core values of integrity, commitment and passion. Under his stewardship, the Group has grown both in terms of breadth and depth. The following pages are some of the highlights of his career with us. annual report 2016 11 MILESTONES \"It has been a great and rewarding journey for ComfortDelGro with Hong Pak leading the Management as its head since inception on 20 March 2003.\" - Mr Lim Jit Poh, Chairman, ComfortDelGro An Idea Born The idea to marry Comfort Group and DelGro Corp was first mooted in late-2001 by then Chairman of Comfort Group, Mr Lim Jit Poh, and non-executive Director of DelGro Corp, Mr Kua Hong Pak. \"We wanted to grow the organisation. We wanted to put it together so that we would have the financial strength, the credibility and the image to really compete on the global stage and make our presence felt in a meaningful way. As smaller players, when we go abroad, no one takes us seriously,\" said Mr Kua in the Group's 5th Anniversary coffee table book, \"The ComfortDelGro Story\". RALLYING SUPPORT The press release announcing the merger proposal on 21 November 2002 took the media and stock market completely by surprise. The reception to the news was mixed and sceptics were out in full force. There was uncertainty over ridership and earnings. Yet others were unhappy about the share swap ratio. Both Mr Lim and Mr Kua were undaunted. Together with a few support staff, they set out to key financial centres in London, Edinburgh and Hong Kong to convince foreign Shareholders and fund managers of the benefits of the proposed merger. Conference 12 comfortdelgro corporation limited calls were also made to Shareholders in New York, Tokyo and Luxembourg. It was, in Mr Kua's words, \"a lot of hard work, talking morning to night until my voice was totally gone\". But the hard work paid off and on 19 March 2003, Shareholders of both Comfort and DelGro voted overwhelmingly in favour of the Merger. ComfortDelGro was born. Post merger consolidation Mr Kua recalls how he came about the decision to centralise: \"When you bring two large companies together, you are bound to end up with many duplicate functions. Whether it was in finance or human resource, it was double of everything. \"I remember visiting the various Business Units soon after the Merger and seeing data centres in practically every location. It was clearly a waste of resources. The same could be said for the way our communications was being handled. Can you imagine having over 40 newsletters and publications across the Group?\" Post merger, integration and consolidation became the order of the day. The focus was to cut duplication and increase efficiency. To this end, key corporate functions were consolidated at Group level and new positions created where it made sense. With the centralisation of resources, a total of S$3.8 million was saved in 2003 and 2004. This was followed by annual savings of S$5.2 million from then on. SARS One of the biggest challenges that Mr Kua faced as Managing Director/Group Chief Executive Officer took place just two days after the Merger was completed. A Comfort taxi driver came forth to say on 31 March 2003 that he may have ferried a SARS (Severe Acute Respiratory Syndrome) victim and her mother. Pandemonium ensued. People stopped taking taxis and drivers' incomes plunged. confidence continued to wane and Mr Kua took a snap decision to help drivers with their daily rentals with a S$10 rebate. Mr Kua and the Management team worked quickly to try and boost public confidence in the industry. A daily disinfection routine was introduced and all drivers were given face masks and \"fever-free\" stickers in a confidence-building exercise. But public Things did finally get better three months later. \"Everyone was shocked. I did not talk to anybody or consult anybody. I didn't think how much it would cost us. I was making a decision with my head on the block - if things went wrong, I would be dead,\" recalled Mr Kua. Said Mr Kua: \"We did the right thing. We made the right decisions and we managed to hold everything together.\" annual report 2016 13 MILESTONES NEW BUSINESSES In 2004, ComfortDelGro Insurance Brokers Pte Ltd was set up as an associate, with the aim of providing the Group with a dedicated insurance broking arm. In 2005, ComfortDelGro ventured into outdoor advertising through a new subsidiary, Moove Media Pte Ltd. More than a decade later, these businesses have contributed significantly to both the top and bottom lines of the Group. World's First Fully Underground Driverless Trains In June 2003, SBS Transit Ltd, a subsidiary of the Group, launched the North East Line (NEL). It was the world's first fully underground driverless train - and consequently a source of some trepidation amongst many would-be commuters who were worried about the \"lack of safety\" given that no one was at the \"wheel\". To allay the fears, Management conducted many educational and community 14 comfortdelgro corporation limited engagement sessions to explain how the system worked, especially in emergency situations. When the Line finally began operations, more than 140,000 passengers hopped on. Ridership continued to grow and people soon got used to the idea. Today, the NEL and the newer Downtown Line - both driverless systems - carry over 800,000 passengers daily. EXPANDING INTO AUSTRALIA In October 2005, ComfortDelGro partnered Cabcharge Australia Limited and acquired Westbus Group, a loss- making bus company in the country's most populous state, New South Wales (NSW). In no time at all, the renamed company, ComfortDelGro Cabcharge Pty Ltd, was able to turn the business around. After the foray into NSW, the Group expanded into Victoria and Western Australia and now operates scheduled bus, coach and taxi services Down Under. MANOEUVERING THE OIL CRISIS When the Group was formed in 2003, oil prices were trading at an average of US$29 a barrel. By 2008, oil had hit US$100 a barrel with fears that it would even breach the US$200-mark within the year. Yet, the Group managed to keep fuel costs largely in check - thanks to strict cost containment measures and clever hedging activities. NEW TECHNOLOGIES The rise of the Internet and the advent of new technologies gave rise to a new class of competitors which had little or few assets of their own. The Internet of Things meant that companies like Alibaba Group Holding Limited, Uber Technologies, Inc. and Airbnb, Inc. were able to change the way businesses operated. In the taxi industry, the growing popularity of phone applications (apps) resulted in an increase in the number of booking jobs versus street hails. The Group's taxi companies, led by ComfortDelGro Taxi, invested millions in developing their booking apps, which rank as one of the most advanced in the industry. annual report 2016 15 MILESTONES STEADY GROWTH In the 14 years since Merger, ComfortDelGro has grown from strength to strength. Revenue has more than doubled from S$2 billion to over S$4 billion while net profit attributable to shareholders has increased by 2.4 times from S$134 million to S$317 million. The fleet size has also increased significantly by 30% from 34,975 to over 45,300. Revenue 5,000 (S$'million) 4,000 2,785.7 3,000 2,019.8 2,299.5 3,012.5 3,120.2 3,051.8 2007 2008 2009 3,206.9 3,411.1 3,545.3 2011 2012 4,051.3 4,111.5 4,059.5 2013 2014 2015 2016 263.2 283.5 2013 2014 3,747.7 2,497.0 2,000 1,000 0 2003 2004 2005 2006 2010 Profit Attributable to Shareholders 400 (S$'million) 300 200 244.6 199.4 201.9 2004 2005 223.0 200.1 219.5 228.5 235.6 2009 2010 2011 248.9 301.9 317.1 133.9 100 0 2003 2006 2007 2008 2012 2015 2016 Market Capitalisation 8.00 6.56 5.56 (S$'billion) 6.00 4.00 2.00 0 16 3.20 3.31 3.33 2004 2005 2006 3.82 3.02 3.42 3.24 2.96 2009 2010 2011 3.74 5.33 4.27 1.67 2003 comfortdelgro corporation limited 2007 2008 2012 2013 2014 2015 2016 GROUP FINANCIAL HIGHLIGHTS Revenue Profit Attributable to Shareholders (S$'mil) (S$'mil) 5,000 400 4,000 300 3,000 200 2,000 100 1,000 0 2012 3,545.3 2013 3,747.7 2014 4,051.3 2015 4,111.5 2016 4,059.5 0 2012 248.9 2013 263.2 2014 283.5 2015 301.9 Earnings Per Ordinary Share Net Asset Value Per Ordinary Share (cents) (cents) 15 120 2016 317.1 100 12 80 9 60 6 40 3 20 0 2012 11.89 2013 12.43 2014 13.29 2015 14.07 2016 14.72 0 2012 95.54 2013 101.37 2014 102.36 Total Dividend Per Ordinary Share Value-Added Per Employee (cents) (S$'000) 12 120 10 100 8 80 6 60 4 40 2 20 0 2012 6.40 2013 7.00 Interim 2014 8.25 2015 9.00 2016 10.30 2015 108.60 2016 114.77 2015 107.6 2016 112.2 0 2012 97.1 2013 100.9 2014 106.5 Final annual report 2016 17 GROUP FINANCIAL HIGHLIGHTS Financial Summary 2012 2013 2014 2015 2016 Revenue (S$'mil) 3,545.3 3,747.7 4,051.3 4,111.5 4,059.5 Operating Costs (S$'mil) 3,133.0 3,321.4 3,609.2 3,660.8 3,597.3 Operating Profit (S$'mil) 412.3 426.3 442.1 450.7 462.2 Profit Attributable to Shareholders (S$'mil) 248.9 263.2 283.5 301.9 317.1 EBITDA (S$'mil) 735.3 763.7 795.8 840.0 858.2 Issued capital (S$'mil) 585.1 622.7 646.4 665.5 676.9 2,008.2 2,154.7 2,189.9 2,335.1 2,475.5 519.6 500.1 511.6 650.5 466.5 Return on shareholders' equity (%) 12.7 12.6 13.1 13.3 13.2 Earnings per ordinary share (cents) 11.89 12.43 13.29 14.07 14.72 Net asset value per ordinary share (cents) 95.54 101.37 102.36 108.60 114.77 Interim dividend per ordinary share (cents) 2.90 3.00 3.75 4.00 4.25 Final dividend per ordinary share (cents) 3.50 4.00 4.50 5.00 6.05 Total dividend per ordinary share (cents) 6.40 7.00 8.25 9.00 10.30 1.8 1.8 1.6 1.6 1.4 Capital and reserves (S$'mil) Capital disbursement (S$'mil) Dividend cover (number of times) Group Revenue by Business Segment 2012 2013 S$'mil % S$'mil Public transport services 1,863.6 52.5 2,025.8 Taxi 1,129.8 31.9 1,197.9 25.7 0.7 28.6 354.9 10.0 Inspection and testing services 97.8 Car rental and leasing Driving centre Group % 2015 S$'mil % S$'mil 54.1 2,251.5 55.5 2,332.5 32.0 1,283.7 31.7 1,326.8 0.8 29.1 0.7 29.0 316.5 8.4 302.7 7.5 2.8 105.7 2.8 109.1 35.5 1.0 35.2 0.9 38.0 1.1 38.0 1.0 3,545.3 100.0 3,747.7 Bus station Automotive engineering services 2014 2016 % S$'mil % 56.7 2,307.3 56.8 32.3 1,340.8 33.0 0.7 26.9 0.7 238.5 5.8 204.8 5.0 2.7 107.5 2.6 103.7 2.6 35.9 0.9 38.3 0.9 36.3 0.9 39.3 1.0 38.9 1.0 39.7 1.0 100.0 4,051.3 100.0 4,111.5 100.0 4,059.5 100.0 Group Revenue by Geographical Segment 2012 2013 2014 2015 2016 S$'mil % S$'mil % S$'mil % S$'mil % S$'mil % 2,103.5 59.3 2,229.8 59.5 2,399.6 59.2 2,468.7 60.0 2,545.9 62.7 United Kingdom / Ireland 680.6 19.2 802.3 21.4 1,014.1 25.0 1,024.1 24.9 923.9 22.8 Australia 492.2 13.9 485.0 12.9 413.5 10.2 387.1 9.4 385.5 9.5 China 259.5 7.3 220.1 5.9 212.9 5.3 219.7 5.4 192.4 4.7 Vietnam 6.1 0.2 6.3 0.2 7.1 0.2 8.7 0.2 8.9 0.2 Malaysia 3.4 0.1 4.2 0.1 4.1 0.1 3.2 0.1 2.9 0.1 3,545.3 100.0 3,747.7 100.0 4,051.3 100.0 4,111.5 100.0 4,059.5 100.0 Singapore Group 18 comfortdelgro corporation limited Operating Profit by Business Segment 2012 2013 2014 2015 2016 S$'mil % S$'mil % S$'mil % S$'mil % S$'mil % Public transport services 158.9 38.6 162.2 38.0 172.2 38.9 177.7 39.4 178.3 38.6 Taxi 141.1 34.2 146.2 34.3 150.9 34.1 163.9 36.4 167.5 36.2 Bus station 11.4 2.8 12.4 2.9 12.5 2.8 12.5 2.8 12.2 2.6 Automotive engineering services 51.2 12.4 52.7 12.4 51.4 11.7 41.2 9.1 50.7 11.0 Inspection and testing services 32.6 7.9 35.2 8.3 36.8 8.3 37.7 8.4 34.8 7.5 Car rental and leasing 8.9 2.1 9.1 2.1 9.1 2.1 9.2 2.0 8.1 1.8 Driving centre 8.2 2.0 8.5 2.0 9.2 2.1 8.5 1.9 10.6 2.3 412.3 100.0 426.3 100.0 442.1 100.0 450.7 100.0 462.2 100.0 Group Operating Profit by Geographical Segment 2012 2013 2014 2015 2016 S$'mil % S$'mil % S$'mil % S$'mil % S$'mil % 221.6 53.8 217.7 51.1 227.2 51.4 245.1 54.4 275.1 59.5 United Kingdom / Ireland 48.1 11.7 62.9 14.8 89.1 20.2 92.2 20.5 80.7 17.5 Australia 96.2 23.3 95.1 22.3 72.2 16.3 62.9 13.9 57.3 12.4 China 44.9 10.9 49.2 11.5 52.2 11.8 48.6 10.8 47.4 10.2 Vietnam 0.9 0.2 0.6 0.1 0.6 0.1 1.3 0.3 1.2 0.3 Malaysia 0.6 0.1 0.8 0.2 0.8 0.2 0.6 0.1 0.5 0.1 412.3 100.0 426.3 100.0 442.1 100.0 450.7 100.0 462.2 100.0 Singapore Group Value-Added for the Group 2012 2013 2014 2015 2016 S$'mil % S$'mil % S$'mil % S$'mil % S$'mil % Suppliers of capital - loan interest and dividends 194.4 9.9 193.5 9.1 220.0 9.5 232.7 9.7 244.4 9.9 Taxation to the government 223.8 11.4 227.9 10.7 240.6 10.4 242.9 10.1 243.8 9.9 Retained earnings 456.9 23.2 484.9 22.9 485.0 21.1 521.0 21.7 528.4 21.3 Employees - salaries and other staff costs 1,093.3 55.5 1,216.7 57.3 1,359.3 59.0 1,403.5 58.5 1,458.0 58.9 Total value-added 1,968.4 100.0 2,123.0 100.0 2,304.9 100.0 2,400.1 100.0 2,474.6 100.0 Number of employees Value-added per employee (S$'000) 20,275 21,042 21,646 22,303 22,048 97.1 100.9 106.5 107.6 112.2 annual report 2016 19 AWARDS AND ACCOLADES At ComfortDelGro Corporation Limited, the desire to always do better is borne out of passion - for our work and for our customers. As a result of this fervour, the Group was honoured with numerous awards and accolades during the year for our outstanding service and contributions to society. The following is a list of major awards that we won during the year. BOOK NOW 2 1 7 ComfortDelGro Corporation 1 2 3 4 Kua Hong Pak, Managing Director/ Group Chief Executive Officer (MD/ Group CEO) of ComfortDelGro, was conferred the Public Service Star (Bar) at the Singapore National Day Awards 2016 8 8 Advanced Unit on Security Information in the Taxi Industry by the Beijing Municipal Public Security Traffic Management Bureau Contribution Award at the 70th Anniversary of Victory of Chinese People's Resistance against Japanese Aggression and World Anti-Fascist War May Day Partnership Award for Outstanding Contributions to Build an Ageless Workplace by the National Trades Union Congress (NTUC) Chengdu ComfortDelGro Taxi \"Most Number of People Exercising with Resistance Bands\" by the Singapore Book of Records Chongqing ComfortDelGro Driver Training Advanced Management Staff on Municipal Traffic Security 6 Advanced Unit in City Traffic Security 7 Advanced Unit of Shi Jing Shan District Traffic Security for 2015 4 13 12 CityCab (Shenyang) 14 AAA Taxi Enterprise for Service Quality for 2015 15 Contract Observing and Trustworthy 9 Distinguished Friend of Lions Befrienders Beijing Jin Jian Taxi Services 5 3 10 AA Grade 11 Yao Gang named \"Chengdu Civilised Driver\" 12 Four-star rating by the Chongqing Road Transport Bureau 13 Zeng Qi was placed first in the \"Large Vehicle\" category at the third Chongqing Driving Instructors' Skills Competition Company of Shenyang for 2015 CityFleet Networks 16 ISO 9001:2015 Quality Management System Certification 17 ISO 14001:2015 Environmental Management System Certification ComfortDelGro Bus 18 9 National Kindness Award- Transport Gold 2016 winners ComfortDelGro Corporation Australia 19 Jim Glasson, former CEO of ComfortDelGro Cabcharge, was awarded the 2016 Outstanding Contribution to the Bus Industry Award 20 Fala Faatamala was awarded the 20 comfortdelgro corporation limited 2016 Bus NSW Rural and Regional Bus Driver of the Year Award 14 31 21 Duc Huu Nguyen, Danny, was 18 33 39 29 76 Excellent Service Award winners Finalist for the Passion! Award 2015 ComfortDelGro Driving Centre 30 bizSAFE Star Recertification by the 23 Certified On-the-Job Training Centre by the Institute of Technical Education 41 42 39 Favourite Taxi Agency at the Travellers' Choice Awards 2016 by TripAdvisor Ministry of Manpower 22 'Assisted Compliance Assurance Programme (ACAP) Premium' status by the Inland Revenue Authority of Singapore 30 20 40 Finalist in the \"Excellence in 31 BS OHSAS 18001:2007 Occupational Health and Safety Management System Recertification 32 Foo Kok Poo was Finalist for the Passion! Award 2015 Employee Work-Life Balance\" category at the HR Excellence Awards 2016 41 May Day Partnership Award for Outstanding Support to the Drive and Save Scheme 33 Plaque of Commendation Award by 24 ISO 9001:2008 Quality Management System Certification 25 Mohamed Isman Bin Mohamed Sadri was Finalist for the Passion! Award 2015 NTUC at the May Day Award 2016 ComfortDelGro Irish Citylink 34 2016 Winner in the Travel Sector by Customer eXperience Insights (CXi) 35 Fifth out of 100 brands in the 26 People Developer Singapore Certification by SPRING Singapore 27 Singapore Quality Class Star CXi survey ComfortDelGro Taxi For in Asia in 2016 by HR Asia 43 Roger Lim was awarded Merit (Safe Driver - Taxi Fleet) and Pek Ban Choon was awarded Champion (Safe Driver - Taxi Fleet) at the Singapore Road Safety Award 2015 by the Singapore Road Safety Council 36 208 Excellent Service Award winners Certification by SPRING Singapore ComfortDelGro Engineering 42 One of the Best Companies to Work 44 Weng Dianlai was Finalist at the 37 50 National Kindness Award- Transport Gold 2016 winners Singapore Tourism Awards 2016 by the Singapore Tourism Board 28 25 National Kindness Award- Transport Gold 2016 winners 38 Daniel Donny Yeo was Finalist for the Passion! Award 2015 annual report 2016 21 AWARDS AND ACCOLADES 45 56 Computer Cab (Liverpool) 45 Winner of the 'Best Taxi Company' category at the Liverpool Lifestyle Awards Guangzhou Xin Tian Wei Transportation Development 46 Advanced Company for Propaganda and Reporting for 2015 by Guangzhou Road Transport Magazine 46 47 63 61 Branch by the Guangzhou Transport Group 48 Lin Heng was awarded \"Outstanding 63 Team of the Year - Advertising at the Singapore Business Review Management Excellence Awards 2016 Jilin ComfortDelGro Taxi SBS Transit 55 Youth Civilisation Award for 64 Gan Juay Kiat, CEO of SBS Transit, 2014-2015 by the Jilin City Civilisation Office Metroline the 2016 London Transport Awards 57 Hirji Hirani was Finalist in the Top London Bus Driver category at the 2016 UK Bus Awards 58 Kingsley Tomlin was Finalist for the Langrui were awarded \"Outstanding Youth League Member\" 50 Zhong Biyun was awarded \"Outstanding Skilled Youth On Post\" 51 Huang Zhirui was Finalist for the Passion! Award 2015 Passion! Award 2015 59 Uxbridge Garage was Finalist in the London Garage of the Year category at the 2016 UK Bus Awards Moove Media 53 Outstanding Unit in Information Service Management for 2015 by the Guangzhou Transport Group Occupational Health and Safety Management System Recertification 61 Gold in the Best Media Solution - Out of Home category at the Spark Awards 2016 62 Most Innovative Contribution to a Campaign by a Media Owner at the Singapore Media Awards 2016 22 comfortdelgro corporation limited was awarded the Medal of Commendation by NTUC at the May Day Award 2016 65 145 National Kindness Award- Transport Gold 2016 winners 66 1,576 Excellent Service Award winners 67 Chung Sing Loong was awarded Champion (Most Improved Driver) and Yue Leong Phang was awarded Champion (Safe Driver) at the Singapore Road Safety Award 2015 by the Singapore Road Safety Council 68 ISO 9001:2008 Quality Management System Certification 60 BS OHSAS 18001:2007 52 Outstanding Unit in Fire Safety for 2015 by the Guangzhou Transport Group 70 awarded Advanced Information Service Management by the Guangzhou Transport Group Cadre of Youth League\" 49 Yang Wei, Wang Pan and Zeng 64 54 Lu Jianhui and Zhong Wanzhu were 56 Bus Operator of the Year Award at 47 Advanced Youth League General 55 69 Lim Yew Huat received \"Customer Service Professional of the Year\" title and Pang Swee Yong received \"Merit - Customer Service Professional of the Year\" title from the Asia Pacific Customer Service Consortium 38 111 111 38 111 111 74 71 89 70 May Day Partnership Award for Outstanding Support to the Public Transport Committee by NTUC 71 Murali A/L Lekshmanan won the Passion! Award 2015 72 Liaw Su Ching was Finalist for the 92 77 93 79 BS OHSAS 18001:2007 Occupational Health and Safety Management System Certification 80 Certificate of Appreciation from the Singapore Environmental Council 81 Eco-Office Label 2016-2019 Passion! Award 2015 82 ISO 50001:2011 Energy 73 People Developer Singapore Management System Certification Certification by SPRING Singapore 83 Madhavan Krishnamurthy was 74 Roy Ong, Lim Yew Huat, Pang Swee Yong, and Susan Hoon received the Outstanding Service Individual (Public Transport) Award at the Land Transport Excellence Awards 2016 78 81 95 97 Swan Taxis 90 Martin Laughton was Finalist for the Passion! Award 2015 VICOM 91 Eco-Office Label 2016-2019 92 Merit for the Singapore Corporate Governance Award in the Big Cap category at the 17th Securities Investors Association (Singapore) (SIAS) Investors' Choice Awards 2016 Finalist for the Passion! Award 2015 93 Singapore Quality Class Star 84 Safety Excellence Award by the Petrochemical Corporation of Singapore Certification by SPRING Singapore Vietnam Taxi (Vinataxi) 94 Certificate of Merit by the 75 Singapore Quality Class Star Certification by SPRING Singapore 85 Safety Performance Award by Department of Traffic & Transport ExxonMobil 95 \"Commendation of Typical 76 Singapore Service Class (S-Class) Certification by SPRING Singapore 77 U SAFE SPARKS Award by NTUC Setsco Services (SETSCO) 78 Sze Thiam Siong, General Manager of SETSCO, was conferred the Distinguished Partner Award by SPRING Singapore 86 Special Recognition Memento by SPRING Singapore 87 Valued Industry Partner by Republic Polytechnic 88 Workplace Safety and Health bizSAFE Level Star Certification Shenyang ComfortDelGro Taxi 89 AAA Operating Qualification Enterprise for 2015 Enterprise Owners 2015\" Award by the Ho Chi Minh City Export Processing and Industrial Zones Authority (HEPZA) and the Ho Chi Minh City Trade Union Federation 96 Outstanding Trade Union 2015 and Certificate of Merit by HEPZA 97 Vietnam Top 50 Well-known Trademark by the Vietnam Intellectual Property Department annual report 2016 23 CORPORATE INFORMATION Board of Directors Lim Jit Poh Chairman Kua Hong Pak Managing Director/ Group Chief Executive Officer Ong Ah Heng Oo Soon Hee Sum Wai Fun, Adeline Tow Heng Tan Wang Kai Yuen Wong Chin Huat, David Audit and Risk Committee Sum Wai Fun, Adeline Chairman Ong Ah Heng Oo Soon Hee Wong Chin Huat, David Remuneration Committee Wang Kai Yuen Chairman Lim Jit Poh Tow Heng Tan Wong Chin Huat, David Nominating Committee Lim Jit Poh Chairman Ong Ah Heng Oo Soon Hee Wang Kai Yuen Investment Committee Lim Jit Poh Chairman Kua Hong Pak Sum Wai Fun, Adeline Tow Heng Tan Wang Kai Yuen Corporate Directory Registered Office 205 Braddell Road Singapore 579701 Mainline: (65) 6383 8833 Facsimile: (65) 6287 0311 Email: info@comfortdelgro.com Website: www.comfortdelgro.com Company Registration Number: 200300002K Share Registrar B.A.C.S. Private Limited 8 Robinson Road #03-00 ASO Building Singapore 048544 (Appointed as Chairman on 1 January 2017) (Appointed as Chairman on 1 January 2017) Company Secretary Chan Wan Tak, Wendy Auditors Deloitte & Touche LLP Public Accountants and Chartered Accountants 6 Shenton Way, OUE Downtown 2 #33-00 Singapore 068809 Partner-in-Charge: Philip Yuen Ewe Jin Date of Appointment: 26 April 2013 24 comfortdelgro corporation limited BOARD OF DIRECTORS Lim Jit Poh Kua Hong Pak chairman (non-executive & independent) managing director /group chief executive officer Date of appointment as Director of the Company: 1 January 2003 Date of appointment as Director of the Company: 1 January 2003 Mr Lim Jit Poh has been the non-executive Chairman and Director of ComfortDelGro Corporation Limited since 2003. He is an Independent Director of the Company. Mr Lim is the Chairman of both the Nominating Committee and Investment Committee, and a member of the Remuneration Committee. Mr Lim is also the Chairman of SBS Transit Ltd and VICOM Ltd. These are listed companies with business interest in land transport and inspection and testing services. Mr Lim is also the Chairman of several non-listed companies owned by the Singapore Labour Foundation, the National Trades Union Congress (NTUC) and CapitaLand Limited Group. Mr Kua Hong Pak has been the Managing Director/Group Chief Executive Officer of ComfortDelGro Corporation Limited since 2003. He is a non-independent Director of the Company. He is a member of the Investment Committee. He is also the Deputy Chairman of SBS Transit Ltd and VICOM Ltd. Mr Kua was appointed the Executive Director of SBS Transit Ltd in 2002 and then went on to assume the position of Managing Director/Chief Executive Officer of DelGro Corporation Limited in 2003. Prior to this, he was the President/Chief Executive Officer of Times Publishing Limited, where he managed its Singapore and overseas operations in the United States, United Kingdom, China, Japan, Hong Kong and Australia. Mr Lim was a former top civil servant and a Fulbright Scholar. He was awarded the Public Administration Medal by the Government of Singapore in 1972 and the Public Service Star (BBM) in 2015 by the President of the Republic of Singapore, as well as four awards by NTUC, namely the Friend of Labour Award in 1986, the Meritorious Service Award in 1990, the Distinguished Service Award in 2000 and the Distinguished Service (Star) Award in 2014. In 2006, he was also one of the recipients of the Distinguished Science Alumni Award from the National University of Singapore. In his previous employment as Executive Director of two public-listed companies, Mr Lim had been directly involved in negotiations with business partners and relevant Authorities on various joint venture projects in the ASEAN region, as well as in China, Hong Kong, the United Kingdom, Australia and Mauritius. He was also involved in the management of these operations. Mr Lim was a Council Member of the Singapore Chinese Chamber of Commerce and Industry and the National University of Singapore, and a Member of the Singapore British Business Council. He was also very active in community work being Chairman of a community centre management committee. Presently, he is a Trustee of the Singapore National Employers Federation and a Member of the Board of Management of Pei Chun Public School. Mr Kua also serves on the boards of Temasek Holdings (Private) Limited, PSA International Pte Ltd and PSA Corporation Limited. He is also an Honorary Citizen of Shenyang City, China. In recognition of his contributions to community service, he was awarded the Public Service Medal in 1991, the Public Service Star in 1996 and the Public Service Star (Bar) in 2016 by the President of the Republic of Singapore and re-appointed a Justice of the Peace in 2015. He was awarded the Medal of Commendation in 2005 and the Medal of Commendation (Gold) in 2010 by the National Trades Union Congress. Mr Kua holds a Bachelor of Accountancy from the University of Singapore and is a Fellow of the United Nations Asian Institute. He also attended the Advanced Management Programme at the Harvard Business School. Date of last re-appointment as Director of the Company: 28 April 2016 Mr Lim holds a Bachelor of Science (Hons) in Physics from the University of Singapore and a Master of Education from the University of Oregon, USA. Date of last re-appointment as Director of the Company: 28 April 2016 annual report 2016 25 BOARD OF DIRECTORS Ong Ah Heng Oo Soon Hee director (non-executive & independent) director (non-executive & independent) Date of appointment as Director of the Company: 18 February 2003 Date of appointment as Director of the Company: 18 February 2003 Mr Ong Ah Heng has been a non-executive Director of ComfortDelGro Corporation Limited since 2003. He is an independent Director of the Company. Mr Ong is a member of both the Audit and Risk Committee and Nominating Committee. He was the Member of Parliament for Nee Soon Central Single Member Constituency until Parliament dissolved in April 2011. He is presently a Director of ComfortDelGro Engineering Pte Ltd and a Trustee of National Transport Workers' Union (NTWU). Mr Ong was the former Assistant Secretary-General of the National Trades Union Congress (NTUC) and Alignment Director of the Care & Share Secretariat in NTUC. He was also the former Executive Secretary of NTWU. Mr Oo Soon Hee has been a non-executive Director of ComfortDelGro Corporation Limited since 2003. He is an independent Director of the Company. He is a member of both the Audit and Risk Committee and Nominating Committee. Mr Oo is presently the Adviser to NSL Ltd and a Director of Natsteel Holdings Pte Ltd. He was the former Executive Director of NSL Ltd and the former President and Chief Executive Officer of Natsteel Asia Pte Ltd. Mr Ong was involved in the trade union movement from 1980 to 16 January 2010, and has taken care of members in the transport industry. Over the past 30 years, Mr Oo has had experiences handling export development and exports/imports to and from various overseas markets. These include the United States, Europe, Middle East, China, Japan, Australia and the ASEAN region. In addition, he was also involved in negotiations for investments in China and various ASEAN countries, and sat on the boards of companies in China, Hong Kong, Australia and the ASEAN region. Mr Ong holds a Bachelor of Arts (Government & Public Administration) from Nanyang University and a Master of Arts (Political Science) from the University of Arkansas. Mr Oo holds a Bachelor of Science (Hons) in Applied Chemistry and a Diploma in Business Administration from the University of Singapore. Date of last re-appointment as Director of the Company: 28 April 2016 Date of last re-appointment as Director of the Company: 28 April 2016 26 comfortdelgro corporation limited Sum Wai Fun, Adeline Tow Heng Tan director (non-executive & independent) director (non-executive & independent) Date of appointment as Director of the Company: 1 January 2007 Date of appointment as Director of the Company: 18 February 2003 Ms Sum Wai Fun, Adeline has been a non-executive Director of ComfortDelGro Corporation Limited since 2007. She is an independent Director of the Company. She is the Chairman o