Using the 2 latest annual reports as attached.

Analyse how each of the companies account for the intangible assets separately. You should include in your analysis:

A brief description of the companies

The intangible assets which are reported

The intangible assets which are not recognised

Implications of non-recognition of intangible assets

Recommendations for the companies

• Limit to 1200 wrds
• APA referencing

A N N UA L R E P O RT 2 0 1 6 1 Contents 01 Corporate Profile 02 Financial Highlights 04 Chairman's Message 07 Corporate Information 08 Board of Directors 12 Key Management 16 Awards & Accolades 18 BreadTalk Group Limited & Subsidiaries 20 Geographical Reach 22 Business Review - Bakery 26 Business Review - Restaurant 28 Business Review - Food Atrium 30 Corporate Social Responsibility 32 Investor Relations 33 Corporate Governance 53 Financial Statements 160 Statistics of Shareholdings 162 Notice of Annual General Meeting T he BreadTalk Group thrives on its array of award-winning F&B brands, incubating and bestowing creativity in our concepts to bring excitement to consumers. Ever flourishing, always a pleasure to enjoy, our eight brands span across 17 territories and continue to grow in breadth and depth over the years. We place every endeavour to build a robust and sustainable foundation as we operate close to 1,000 outlets across Singapore, Mainland China, Hong Kong, Taiwan, Malaysia, Indonesia and Thailand. Supported by a global staff strength of 7,000, our stable of brands include BreadTalk, Toast Box, Food Republic, RamenPlay, The Icing Room, Bread Society, Thye Moh Chan and the operating rights to the muchlauded Din Tai Fung restaurants from Taiwan. A N N UA L R E P O RT 2 0 1 6 01 Financial highlights REVENUE (S$'million) EBITDA (S$'million) 615.0 600 536.5 500 589.6 624.1 615.0 447.3 87.5 80 400 300 70.9 62.3 60 77.5 87.5 49.6 40 200 20 100 0 0 2012 2013 2014 2015 2016 2012 Net Debt (S$'million) Cash Flow from Operations (S$'million) 140 100 120 80 100 102.4 89.1 80 64.2 60 40 106.8 95.5 94.9 79.4 120.6 60.7 -40 2013 2014 2015 REVENUE MIX BY GEOGRAPHICAL SEGMENT FY 2016 53.3 30.4 29.0 -39.1 2016 2012 2014 2015 -34.7 2013 REVENUE MIX BY BUSINESS SEGMENT FY 2016 55% 28% Mainland China 11% B R E A DTA L K 66.5 0 0 02 71.4 73.3 20 -20 Hong Kong 2016 Free Cash Flow (S$'million) 53.4 40 32.2 Singapore 2015 85.2 60 20 2012 2014 CASH FLOW FROM OPERATIONS VS FREE CASH FLOW CASH AND CASH EQUIVALENT VS NET DEBT Cash and Cash Equivalents (S$'million) 2013 6% Rest of the World G R O U P L I M I T E D 50% Bakery 26% Food Atrium 24% Restaurant 2016 FIVE-YEAR FINANCIAL PERFORMANCE SUMMARY (Financial Year Ended 31 December) 2012 2013 2014 2015 2016 Group Revenue Bakery Food Atrium Restaurant 447,334 233,136 111,578 102,620 536,530 271,320 143,007 122,203 589,644 294,128 164,781 130,735 624,149 307,915 173,084 143,150 614,995 306,864 157,901 150,230 Group EBITDA Bakery Food Atrium Restaurant 49,621 20,079 14,890 13,844 62,261 23,936 21,569 17,332 70,905 22,972 24,153 21,039 77,582 22,362 17,875 33,901 87,517 30,304 16,089 30,546 Group PBT Bakery Food Atrium Restaurant 19,376 9,554 1,039 7,251 22,390 11,592 4,579 9,054 32,801 7,554 5,407 12,896 25,376 5,306 (3,021) 25,961 29,716 11,651 (7,174) 24,053 Profit attributable to the equity holders of the company 12,000 26,369 22,171 7,602 11,436 Cash Flow Statement (S$'000) Cash flows from operating activities Capital expenditure, net Cash flows used in investing activities Net increase/(decrease) in borrowings Cash flows from/(used in) financing activities 53,436 (92,566) (126,745) 57,712 50,245 71,439 (106,170) (120,420) 72,453 65,120 73,325 (42,933) (85,914) 28,547 18,516 66,462 (37,480) (57,875) 3,597 (9,966) 85,241 (31,905) (21,005) (20,605) (38,173) Balance Sheet (S$'000) Total Assets Cash and cash equivalents Property, plant and equipment Total Liabilities Bank borrowings and debt securities Net debt / (cash) 356,409 64,245 157,408 265,384 96,419 32,174 481,021 79,420 225,860 364,269 168,516 89,096 538,810 95,452 220,670 400,320 197,819 102,367 545,141 94,896 205,696 398,717 201,685 106,789 533,903 120,589 180,663 381,958 181,310 60,721 Key Ratios EBITDA margin (%) Net Margin (%) Return on equity (%) (1) Dividend payout ratio (%) Net gearing (x) (2) Net debt / EBITDA (x) EBITDA / Interest expense (x) 11.1 2.7 15.0 30.5 0.39 0.65 35.80 11.6 4.9 27.9 19.2 0.83 1.43 23.28 12.0 3.8 19.1 19.1 0.82 1.44 19.02 12.4 1.2 6.0 55.6 0.83 1.38 14.56 14.2 1.9 8.8 94.7 0.46 0.69 14.76 Per Share Information (S$'cents) Earnings per share - basic Earnings per share - diluted Net assets per share Dividend per share 4.27 4.25 32.40 1.30 9.37 9.34 41.50 1.80 7.87 7.85 49.16 1.50 2.70 2.69 51.97 1.50 4.07 4.06 54.01 3.85 Income Statement (S$'000) (1) Return on equity is defined as profit attributable to equity holders of the company divided by average shareholders' equity. (2) Net gearing is defined as total bank borrowings and debt securities less cash and cash equivalents divided by shareholders' equity. A N N UA L R E P O RT 2 0 1 6 03 Chairman's message Dear Shareholders The Year in Review growth in the long term. Changes were made to our In 2016, we continued to build on our strengths portfolio to consolidate underperforming assets to deliver growth in spite of a difficult and volatile and focus our resources on maximising growth trading environment. opportunities in faster growing and more profitable segments of our various businesses. Revenue remained steady at S$615.0 million from S$624.1 million in the preceding year, while earnings We maintained a disciplined approach towards before interest, tax, depreciation and amortisation capital investments and cost management. (EBITDA) rose 12.8% year-on-year to S$87.5 million. Increased investments were made in IT infrastructure The improvement in EBITDA margin to 14.2% from and supply chain management systems, which 12.4% in FY2015 reflected the effectiveness of our have resulted in greater operational efficiencies efforts to streamline our operations, better manage and improved margins. More importantly, these our supply chain and control cost. investments in essential infrastructure are building blocks that will improve our competitive position and Consequently, net profit attributable to Shareholders support our longer term growth objectives. increased by 50.4% to S$11.4 million from S$7.6 million in FY2015. To drive us towards enhanced performance, another key element has been the constant strengthening of To reward shareholders, the Board is pleased to our senior management team. recommend a final tax-exempt dividend of 2.0 cents per share. Including the interim dividend of 0.5 Driving Sales Leadership cents and special dividend of 1.35 cents per share, As we centred our focus on long-term earnings the total dividend paid and proposed for FY2016 is growth, we continued to be nimble in spotting 3.85 cents per share. new food trends and develop products that will drive sales and strengthen our market leadership Ensuring consistent and sustainable growth positions. Increased emphasis was placed on During the year, we continued to fine-tune our shortening the time-to-market of new concepts business plans to ensure that the Group can and products, which is critical to success in an continue to deliver consistent and sustainable increasingly competitive marketplace. 04 B R E A DTA L K G R O U P L I M I T E D Our first global concept store at VivoCity seeks to engage consumers in a distinctive experience that hearkens back to enjoying natural goodness and the bliss of great-tasting breads. As we continued our quest to create delicious and the United Kingdom. Having managed the brand for creative flavours, we collaborated with Taiwanese the last 13 years in Singapore and seven years in chef Johnny Chen, who was the Champion of the Thailand, we are indeed very excited to introduce Din 2015 Mondial du Pain, one of the world's most Tai Fung to the European market, which will allow prestigious bread-making competitions. We consumers to appreciate this much-loved authentic launched BreadTalk's most visually beautiful breads Taiwanese cuisine. We expect the first Din Tai Fung to date - the Flavours of Jubilation - which included restaurant to open in London by end 2017. three of Chef Johnny's award-winning recipes in both Singapore and Shanghai to much acclaim. Nearer home, we are moving into Yangon, Myanmar with the opening of our first BreadTalk outlet in March 2017 through a franchise agreement with the Shwe Taung Group. The Shwe Taung Group is an established conglomerate with diversified business interests including property development and investment, construction, infrastructure and trading. With a growing middle class and rising retail Chef Johnny Chen, Champion of the 2015 Mondial du Pain continues his quest to create delicious and creative flavours for BreadTalk. consumption, we see immense growth opportunities for BreadTalk in Myanmar. We are currently working with our partner to conduct greater market research As a player in the competitive F&B industry, and to tailor our products to suit the local tastes. delivering experiential concepts and innovative products to market quickly is of critical importance. Another exciting development in our overseas Not only does it constantly draw customers, it also operations during the year was the opening of our increases brand recognition and heightens the BreadTalk, Toast Box, and Food Republic outlets in perceived value of the BreadTalk brand across the Shanghai Disney Resort. We will continue to source region. As such, we will continue to develop our R&D, for collaboration opportunities with world-class as well as work with strategic partners, to build up strategic partners to situate our brands in top-notch our pipeline of innovative products for 2017. properties, so as to strengthen our leadership position and brand recognition throughout Asia. Maximising Growth Opportunities As part of our consolidation efforts in 2016, we In our search for new growth opportunities, we are also made some hard decisions to close down looking beyond Asia and the Middle East to the underperforming outlets and focus on growing the global marketplace. In November 2016, we inked outperforming ones. As a result, we are seeing an agreement to operate the Din Tai Fung brand in significant improvements in our bakery business in Hong Kong and Malaysia, and we are expecting A N N UA L R E P O RT 2 0 1 6 05 Chairman's message better performance of our food atrium business in January 2017. We expect to record a gain of S$9.3 China in 2017. We have also commenced the review million before transaction costs. of our franchise portfolio with the aim to consolidate and be prepared for future expansion. Developing Human Capital Talent development is also an important pillar for building long-term sustainable growth. We have developed various training programmes, forums and seminars to develop the capabilities of our employees, nurture their careers, and manage the performance of individuals and teams. Our Beijing Tongzhou Integrated Development investment will help to further enhance our presence in Mainland China. We will continue to evaluate our return on capital for our other property investments which include AXA Tower, CHIJMES, and Beijing Tongzhou Integrated Development, and realise their value when the opportunities arise. Looking Ahead in 2017 While the current political uncertainties and We continually improve our various training programmes to develop and harness the collective capabilities of our employees. economic headwinds in Asia and globally will Over the years, we have also built a pool of talented some time to come, we are confident that our people in our various overseas operations. To strategic direction, our strong portfolio of brands, provide a cross-cultural platform for exchanging our robust pipeline of innovative products, and ideas, we held our very own 'GM12 Summit' where unwavering commitment to customer service and 12 of our top-performing General Managers of quality, will position us well to continue to deliver the BreadTalk brand around the region gathered growth and value to all our stakeholders. continue to make trading conditions difficult for to share their experiences of driving sales and managing challenges creatively and resourcefully in Acknowledgments their respective markets. It was a beneficial session Our solid performance in 2016, in spite of various for all. market challenges, reflected the hard work and dedication of our employees. On behalf of the Following our accreditation as an 'Approved Training Board, I would like to thank the team for their efforts. Centre' by WDA in 2015, our training team has I am also grateful to my fellow Directors for their diligently developed six more modules that will commitment to the BreadTalk Group. Their active allow our staff to attain the full WSQ F&B Operations participation and support have strengthened Board Certification in-house. This is a nationally-recognised decision-making and provided insightful leadership certification in the F&B industry, and will definitely for the Group. enhance the personal and professional development of our staff in their field of work. To all our shareholders, customers, and business partners, thank you for your trust in the Group and continued support. Unlocking Value In line with our capital management strategy to unlock the value of our strategic investments, we divested our stake in TripleOne Somerset, a 17-storey George Quek commercial building in the Orchard Road area in Chairman 06 B R E A DTA L K G R O U P L I M I T E D Corporate information Directors Bankers Dr George Quek Meng Tong DBS Bank Ltd Ms Katherine Lee Lih Leng Oversea-Chinese Banking Corporation Limited Mr Ong Kian Min United Overseas Bank Limited Mr Chan Soo Sen Dr Tan Khee Giap Share Registrar Mr Paul Charles Kenny RHT Corporate Advisory Pte Ltd 9 Raffles Place #29-01 Company Secretaries Republic Plaza Tower 1 Chew Kok Liang Singapore 048619 Shirley Tan Sey Liy Auditors Registered Office Ernst & Young LLP 30 Tai Seng Street One Raffles Quay #09-01 BreadTalk IHQ North Tower Level 18 Singapore 534013 Singapore 048583 Tel: 6285 6116 Fax: 6285 1661 Partner in charge: Philip Ling (since financial year ended 31 December 2016) A N N UA L R E P O RT 2 0 1 6 07 Board of directors From left to right: Dr Tan Khee Giap, Mr Ong Kian Min, Ms Katherine Lee, Dr George Quek, Mr Chan Soo Sen and Mr Paul Charles Kenny 08 B R E A DTA L K G R O U P L I M I T E D Dr George Quek Meng Tong Ms Katherine Lee Lih Leng Chairman Deputy Chairman Doctorate in Business Administration (Honorary), Wisconsin International University, USA DATE OF FIRST APPOINTMENT AS A DIRECTOR DATE OF FIRST APPOINTMENT AS A DIRECTOR 6 March 2003 6 March 2003 DATE OF LAST RE-ELECTION AS DIRECTOR DATE OF LAST RE-ELECTION AS DIRECTOR 20 April 2016 22 April 2014 LENGTH OF SERVICE AS A DIRECTOR LENGTH OF SERVICE AS A DIRECTOR (AS AT 31 DECEMBER 2016) (AS AT 31 DECEMBER 2016) 13 years 10 months 13 years 10 months BOARD COMMITTEES SERVED ON BOARD COMMITTEES SERVED ON Nil Nil PRESENT DIRECTORSHIPS IN OTHER LISTED COMPANIES PRESENT DIRECTORSHIPS IN OTHER LISTED COMPANIES Nil Nil MAJOR APPOINTMENTS MAJOR APPOINTMENTS (OTHER THAN DIRECTORSHIPS IN OTHER LISTED COMPANIES) (OTHER THAN DIRECTORSHIPS IN OTHER LISTED COMPANIES) Director, Sky One Art Investment Pte. Ltd. Director, Heritage R Pte. Ltd. DIRECTORSHIPS IN OTHER LISTED COMPANIES HELD OVER THE DIRECTORSHIPS IN OTHER LISTED COMPANIES HELD OVER THE PRECEDING THREE YEARS PRECEDING THREE YEARS Nil Nil BACKGROUND AND WORKING EXPERIENCE BACKGROUND AND WORKING EXPERIENCE Katherine oversees the Group's research and development, as well as pioneers new ideas and concepts Responsible for concept creation, product development and enhancement of the Group's various brands both locally and globally, Katherine also formulates product training and technical skill upgrade programmes to ensure proper transfer of knowledge and skills to its franchisees in line with its local operations so as to sustain product quality Katherine also spearheads product costing, which is an integral part of product strategy Katherine has more than 20 years of experience in the industry. She was previously the Finance Director of Topwin Singapore prior to which she was in charge of the Human Resource and Operations of more than 20 F&B outlets in Taiwan Founder of BreadTalk Group Limited Led and grew the Company from a homegrown brand to become a dynamic Asian F&B group. He continues to drive its strategic direction and development into the future George started his F&B business in Taiwan in 1982, successfully growing it into a chain of 21 Southeast Asian food outlets within a decade. Returning to Singapore in 1992, he founded Topwin Singapore and subsequently Megabite China in 1996, establishing the food court businesses In 2000, he started the bakery business with BreadTalk Pte Ltd and eventually brought it to list on the SGX in 2003 George is a Brand Champion who has positioned the company's brand portfolio into innovative concepts now widely accepted in Asia and throughout the world. His keen interest in the arts, creative talent, and acute sense of anticipating consumer demands have delighted consumers time and again with the Group's line up of creative F&B concepts Among other awards, George won the Ernst & Young \"Entrepreneur of the Year 2006\" (Emerging Entrepreneur Category), the \"Entrepreneur of the Year Award 2002\" organised by the Association of Small and Medium Enterprises, and The Rotary Club of Singapore, the \"Business Personality of the Year\" Award 2013 accorded by Midas Touch Asia in conjunction with Channel NewsAsia, as well as the \"CEO Brand Leader of the Year 2016\" by Influential Brands A N N UA L R E P O RT 2 0 1 6 09 Board of directors Mr Ong Kian Min Dr Tan Khee Giap Lead Independent Director Independent Director LLB (Hons) (Ext), University of London, UK BSc (Hons), Imperial College (London), UK PhD (Economics), University of East Anglia, UK DATE OF FIRST APPOINTMENT AS A DIRECTOR DATE OF FIRST APPOINTMENT AS A DIRECTOR 30 April 2003 1 October 2010 DATE OF LAST RE-ELECTION AS DIRECTOR DATE OF LAST RE-ELECTION AS DIRECTOR 22 April 2015 22 April 2014 LENGTH OF SERVICE AS A DIRECTOR LENGTH OF SERVICE AS A DIRECTOR (AS AT 31 DECEMBER 2016) (AS AT 31 DECEMBER 2016) 13 years 8 months 6 years 3 months BOARD COMMITTEES SERVED ON BOARD COMMITTEES SERVED ON Audit Committee (Chairman) Nominating Committee (Chairman) Remuneration Committee (Member) Audit Committee (Member) Nominating Committee (Member) Remuneration Committee (Member) PRESENT DIRECTORSHIPS IN OTHER LISTED COMPANIES PRESENT DIRECTORSHIPS IN OTHER LISTED COMPANIES Boustead Projects (Independent Director) TEE Land Limited (Independent Director) Food Empire Holdings Limited (Independent Director) HUPSteel Limited (Non-Executive Chairman) Jaya Holdings Limited (Independent Director) Penguin International Limited (Lead Independent Director) Silverlake Axis Ltd (Independent Director) MAJOR APPOINTMENTS (OTHER THAN DIRECTORSHIPS IN OTHER LISTED COMPANIES) Consultant, Drew & Napier LLC Senior Advisor, Alpha Advisory Pte. Ltd. Founder, Kanesaka Sushi Pte. Ltd. Director, OUE Hospitality REIT Management Pte. Ltd. Director, OUE Hospitality Trust Management Pte. Ltd. Director, GPTW Institute (Singapore) Pte Ltd Director, Qenergy Pte. Ltd. MAJOR APPOINTMENTS (OTHER THAN DIRECTORSHIPS IN OTHER LISTED COMPANIES) Associate Professor & Co-Director, Asia Competitiveness Institute, Lee Kuan Yew School of Public Policy, National University of Singapore Chair, Singapore National Committee for Pacific Economic Cooperation DIRECTORSHIPS IN OTHER LISTED COMPANIES HELD OVER THE PRECEDING THREE YEARS: Forterra Real Estate Pte. Ltd. (Trustee-Manager of Forterra Trust) Artivision Technologies Ltd. (Independent Director) DIRECTORSHIPS IN OTHER LISTED COMPANIES HELD OVER THE BACKGROUND AND WORKING EXPERIENCE PRECEDING THREE YEARS Member, Resource Panel of the Government Parliamentary Committee for Transport and Government Member, Parliamentary Committee for Finance and Trade & Industry Member, Government Parliamentary Committee for Defence and Foreign Affairs (since 2007) Associate Dean, Graduate Studies Office, Nanyang Technological University (2007-2009) Deputy President, Singapore Economic Society (2004) Deputy Chairman, IPS Forum for Economic Restructuring (2003) Chairman, Task Force on Portable Medical Benefits Member, 2002 Economic Review Committee China Energy Limited GMG Global Ltd (Independent Director) BACKGROUND AND WORKING EXPERIENCE Member of Parliament (1997-2011) Partner, Shook Lin & Bok (1994-2000) President's Scholarship and Police Force Scholarship (1979) Called to the Bar of England and Wales in 1988 and to the Singapore Bar in 1989 More than 20 years of legal practice in corporate and commercial law, such as, mergers and acquisitions, joint ventures, restructuring, and corporate governance 10 B R E A DTA L K G R O U P L I M I T E D Mr Chan Soo Sen Mr Paul Charles Kenny Independent Director Non-Executive Director MSc, Stanford University, USA BA (Hons), Oxford University, UK General Management Programme, Ashridge Management College, UK DATE OF FIRST APPOINTMENT AS A DIRECTOR DATE OF FIRST APPOINTMENT AS A DIRECTOR 14 August 2006 1 March 2016 DATE OF LAST RE-ELECTION AS DIRECTOR DATE OF LAST RE-ELECTION AS DIRECTOR 20 April 2016 20 April 2016 LENGTH OF SERVICE AS A DIRECTOR LENGTH OF SERVICE AS A DIRECTOR (AS AT 31 DECEMBER 2016) (AS AT 31 DECEMBER 2016) 10 years 5 months 10 months BOARD COMMITTEES SERVED ON BOARD COMMITTEES SERVED ON Audit Committee (Member) Nominating Committee (Member) Remuneration Committee (Chairman) Nil PRESENT DIRECTORSHIPS IN OTHER LISTED COMPANIES Director, Minor International Plc. PRESENT DIRECTORSHIPS IN OTHER LISTED COMPANIES Cogent Holdings Limited (Lead Independent Director) Midas Holdings Limited (Independent Director) MAJOR APPOINTMENTS (OTHER THAN DIRECTORSHIPS IN OTHER LISTED COMPANIES) DIRECTORSHIPS IN OTHER LISTED COMPANIES HELD OVER THE Chief Executive Officer and Director, The Minor Food Group Plc. Director, Select Service Partner Limited Director, Oaks Hotel & Resort Limited Director, The Minor (Beijing) Restaurant Management Co. Ltd. Director, Minor DKL Food Group Pty. Ltd. Director, Liwa Minor Food & Beverages LLC Shareholder, Minor International Plc. Shareholder, S&P Syndicate Plc. PRECEDING THREE YEARS SunMoon Food Company Limited DIRECTORSHIPS IN OTHER LISTED COMPANIES HELD OVER THE BACKGROUND AND WORKING EXPERIENCE Nil MAJOR APPOINTMENTS (OTHER THAN DIRECTORSHIPS IN OTHER LISTED COMPANIES) Adjunct Professor, Nanyang Centre of Public Administration, Nanyang Technological University Chairman, SCP Consultants Chairman, Dongus Institute for Development & Strategy PRECEDING THREE YEARS Executive Vice President, Singbridge International Singapore Pte Ltd (2009-2012) Director (Chairman's Office), Keppel Corporation (2006-2009) Minister of State, Ministry of Trade & Industry (20052006) Minister of State, Ministry of Education (2004-2006) Minister of State, Prime Minister's Office & Ministry of Community Development & Sports (2001-2004) Senior Parliamentary Secretary, Prime Minister's Office & Ministry of Health (2001) Parliamentary Secretary, Prime Minister's Office & Ministry of Health (1999-2001) Parliamentary Secretary, Prime Minister's Office & Ministry of Community Development (1997-1999) Member of Parliament (1996-2011) CEO, China-Singapore Suzhou Industrial Park Development Co Ltd (1994-1996) BACKGROUND AND WORKING EXPERIENCE Chief Executive Officer, The Minor Food Group Plc. (2002-present) Senior Vice President/Chief Operating Officer, The Minor Food Group Plc. (1993-2002) Managing Director, Pizza Hut (Taiwan) Jardine Pacific Ltd. T.P.H. Company Ltd. (1990-1993) Operations Manager, Jardine Restaurant, Victoria, Australia (1987-1989) A N N UA L R E P O RT 2 0 1 6 11 Key management Oh Eng Lock Group Chief Executive Officer Eng Lock was appointed as Group CEO on 1 January 2011. As Group CEO, he oversees the Group's global operations, focusing on strategic planning, investments, business development, and regional expansion. Prior to his appointment as Group CEO, Eng Lock was Regional Managing Director with Merrill Lynch Asia Pacific Ltd in Hong Kong, overseeing the North Asia businesses. He has also garnered vast senior executive and management experience at DBS Bank and United Overseas Bank, growing their franchises in China, Taiwan, and the USA. Eng Lock holds a Bachelor of Arts degree from the University of Singapore. Chan Ying Jian Group Chief Financial Officer Ying Jian was appointed as Group CFO on 10 June 2015. As Group CFO, he is responsible for corporate finance and treasury, shared services, reporting, tax, legal and risk management functions across our businesses. He works alongside the senior management team on Group and Division level investments, mergers, acquisitions, and joint ventures. He also fronts the investor relations efforts of the Group. Before his appointment as Group CFO, Ying Jian was Financial Controller of the Group's Food Atrium Division from 1 August 2014. Prior to joining the Group, Ying Jian was Vice President of Equity Research with J.P. Morgan Securities Singapore, serving as Sector Head of Agri-Commodities and Consumer Staples for the ASEAN region. Ying Jian graduated summa cum laude (with Highest Distinction) from the Singapore Management University with double-degree in Business Management (Finance) and Accountancy. He is also a Chartered Accountant of Singapore (CA Singapore) and Chartered Financial Analyst (CFA) by qualifications. 12 B R E A DTA L K G R O U P L I M I T E D Tan Aik Peng CEO, Bakery Division Aik Peng joined BreadTalk Group as Managing Director, Bakery Division on 20 October 2014 and was subsequently appointed CEO of the Division on 25 May 2015. Prior to joining the Group, Aik Peng was the Head of Corporate Strategy, Planning and Business Development department for SATS Ltd, responsible for developing the company's overall strategic roadmap and driving its inorganic growth through identifying, qualifying, pursuing, and closing Business Development opportunities (JVs, M&As, Strategic Alliances, etc.) both locally and overseas. Before that, Aik Peng spent 12 years at Cisco Systems - a US multi-national company and the global market leader of networking and communications equipment. During his tenure with Cisco, he held various roles such as Strategic Business Transformation, Sales and Marketing Management, Business Development, Solutions Development, Strategic Partnership, Advisory/ Consulting Services, Program Management and IT Operations/ Implementations. His last role with Cisco was Managing Director of Cisco China Smart+Connected Communities Business Unit and Vice President of Cisco China Strategic Business Transformation Office. Aik Peng completed his MBA at the Nanyang Business School, Singapore. He also holds a Bachelor of Mechanical Engineering (Hons, 2nd Upper) and a Master of Engineering in Quality and Statistics from the National University of Singapore. Jenson Ong Chin Hock CEO, Food Atrium Division Jenson was appointed CEO, Food Atrium Division on 1 January 2011. As CEO of the Food Atrium Division, he is responsible for the overall development, operations, projects execution, and strategic planning of the business globally. Jenson has over 20 years of F&B experience, especially in the food court business. He joined BreadTalk Group in 2003 as Director of Food Republic in China. In 2005, he established Megabite Hong Kong Limited and oversaw the management and operations of Food Republic in Hong Kong as Managing Director until his current appointment. Jenson's passion for the F&B industry has been greatly reflected in his work, in which he pioneered Singapore's first food court business model and initiated more than 100 food court concepts and more than 350 F&B outlets in ASEAN and Greater China. A N N UA L R E P O RT 2 0 1 6 13 Key management Cheng William CEO, Restaurant Division William was appointed CEO of Restaurant Division on 1 January 2011. He leads the Company's overarching business and marketing strategies, structure, and people development that drive sales and profitability across our Din Tai Fung businesses in Singapore, Thailand, and United Kingdom. All functional leaders in the Restaurant Division report to William, a 14-year veteran with the Company. He has more than 20 years of extensive culinary and operations experience and previously served as a Branch Manager at BreadTalk before the inception of Din Tai Fung in 2003. Under his leadership, Din Tai Fung has successfully launched a state-of-the-art Central Kitchen, researched and developed a range of popular signature dishes that have won the hearts of Singaporeans, Thais, and international patrons, as well as generated strong sales and profit growth for the heritage brand. He placed a renewed focus on quality customer service and brand relevance through customer-centric initiatives supported by a people-centric culture. Frankie Quek Swee Heng CEO, ASEAN Region Frankie was appointed as CEO, ASEAN Region on 15 October 2012. In his role, Frankie is involved in the formulation and implementation of the expansion plans for the Group in the ASEAN Region. Frankie joined the Group in 2001, starting out as the Group's Assistant General Manager and subsequently as the General Manager in 2002. He then held various portfolios within the Group including the Head of Bakery operations in Shanghai and Beijing from January 2005, and was subsequently promoted to Group COO and CEO, China Region on 1 June 2006 prior to his current appointment. He has played an instrumental role in the growth of the Group's Bakery and Food Atrium businesses in China and its subsequent expansion into several ASEAN markets. Frankie holds an honorary Master of Business Administration degree from the American University of Hawaii, USA. 14 B R E A DTA L K G R O U P L I M I T E D CORPORATE AFFAIRS & COMMUNICATIONS CHINA Group Vice President Chief Operating Officer Huang Yingren, Glenn Hu Xiao Feng HUMAN RESOURCES & ADMINISTRATION HONG KONG Group Head Country Manager Chan Wing Git Jennifer Ong INFORMATION TECHNOLOGY THAILAND Group Senior Vice President Country Manager Vincent Ho Vorachai Charoonprasitporn TRAINING Group Vice President Koh Lay Nah A N N UA L R E P O RT 2 0 1 6 15 Awards & accolades DR. GEORGE QUEK (Chairman) ORG A N I SE R Influential Brands C AT EG ORY CEO Brand Leader of the Year YEAR 2016 ORG A N I SE R Midas Touch Asia C AT EG ORY Business Personality of the Year YEAR 2013 16 years in the baking and the BreadTalk Group has continued to stay true to its mission, values, and brand personality. We pride ourselves in delighting consumers with our innovative blend of unique concepts and distinctive cuisines across our bakery, ORG A N I SE R Ernst & Young, Singapore C AT EG ORY Entrepreneur of the Year YEAR 2006 restaurant, and food atrium divisions. ORG A N I SE R In 2016, our brand efforts continued to be recognised C AT EG ORY with our founder and chairman, Dr George Quek, being honoured as one of the recipients for \"CEO ASME and The Rotary Club Entrepreneur of the Year YEAR 2002 Brand Leader of the Year\" at the Influential Brands Awards 2016. This is an inaugural category to recognise business leaders for their strong corporate leadership and for fully embracing branding as part of their business strategy. For the second consecutive year, BreadTalk was named Asia's \"Top Brand\" in the Bakery category by the Influential Brands Awards, and \"Brand of BREADTALK GROUP ORG A N I SE R China Chain Store & Franchise Association C AT EG ORY the Year 2016-2017\" in the Bakery category at the CCFA Retail Innovation Award prestigious World Branding Awards. Other awards YEAR won by the brand include \"Five Star Diamond Brand 2016 Award\" by the World Brand Laboratory Award, and ORG A N I SE R the \"CCFA Retail Innovation Award\" by the China World Branding Awards Chain Store & Franchise Association. C AT EG ORY Din Tai Fung was named, for the fourth consecutive year, Asia's \"Top Brand\" under the Asian Restaurant category by the Influential Brands Awards. For Brand Finance's \"Top 100 Singapore's Brands\OLD CHANG KEE | ANNUAL REPORT 2017 ii Our Advocacy Contents Corporate Profile Chairman's Statement and Operations Review 1 2 Our Brands 8 Milestones 10 Retail Outlets 12 Group Structure 14 Financial Highlights 16 Board of Directors 18 Key Management 20 Corporate Information 21 Delivering great food is our advocacy. Satisfying the wide palate of Singapore remains to be our delight; and we just keep getting better at it. Making good at its promise, Old Chang Kee carries on with its tradition of turning simple recipes into high quality dishes at fair prices. This is for the service of many hardworking Singaporeans who deserve all the delectable treats that our kitchen can provide. This annual report has been prepared by the Company and its contents have been reviewed by the Company's sponsor, PrimePartners Corporate Finance Pte. Ltd. (the \"Sponsor\") for compliance with the Singapore Exchange Securities Trading Limited (the \"SGX-ST\") Listing Manual Section B: Rules of Catalist. The Sponsor has not verified the contents of this annual report. This annual report has not been examined or approved by the SGX-ST. The Sponsor and the SGX-ST assume no responsibility for the contents of this annual report including the accuracy, completeness or correctness of any of the information, statements or opinions made or reports contained in this annual report. The contact person for the Sponsor is Ms Jennifer Tan, Senior Manager, Continuing Sponsorship, at 16 Collyer Quay #10-00 Income at Raffles, Singapore 049318, Telephone (65) 6229 8088. C O R P O R AT E P R O F I L E Old Chang Kee is synonymous with quality food. An accessible go-to snack creator, a trusted store when you need to grab a bite or fill an empty stomach. We have been present in Singapore for over 60 years now. And we are going to remain as your Old Chang Kee, giving the same good old taste you have loved all these times. We specialise in the manufacture and sale of affordable and delectable food products of consistent quality, under the \"Old Chang Kee\" brand name. Our signature curry puff is sold at our outlets together with over 30 other food products including fishballs, chicken nuggets and chicken wings. We pride ourselves on always innovating and introducing new products for our customers. Most of our sales are on a takeaway basis and our outlets are located at strategic locations to reach out to a wide range of consumers. The Dip 'n' Go retail outlet offers delicious food on the go, with a variety of dips to go with. Bun Times retail outlets offer Hainanese inspired buns with a variety of fillings like curry chicken and coconut. The \"Curry Times\