Boustead Singapore : FY2022 Longevity Report

01 BOUSTEAD SINGAPORE LIMITED FY2022 LONGEVITY REPORT

CORPORATE PROFILE

Established in 1828, Boustead Singapore Limited (SGX:F9D) is a progressive global Infrastructure- Related Engineering and Technology Group listed on the SGX Mainboard.

As Singapore's oldest continuous business organisation, we focus on the niche engineering and development of key infrastructure to support sustainable shared socio-economic growth. Our strong suite of engineering services under our Energy Engineering Division and Real Estate Division centres on energy infrastructure and smart, eco-sustainable and future-ready real estate developments.

In addition, we provide technology- driven transformative solutions to improve the quality of life for all walks of life. Our Geospatial Division provides professional services and exclusively distributes Esri ArcGIS technology - the world's leading geographic information system, smart mapping and location analytics enterprise platform - to major markets in the Asia Pacific. The enterprise platform creates digital infrastructure solutions and digital twins that enable smart nations, smart cities and smart communities to solve the world's most complex problems. This improves human well-being and ecosystems, and results in the effective

planning and management of key infrastructure and resources. Our Healthcare Division provides innovative medical solutions that address age- related chronic diseases and mobility issues, with a focus on rehabilitative care and sports science in the Asia Pacific.

With a vast global network stretching across Asia, Australia, Europe, Africa and the Americas, we are ready to serve the world. To date, we have undertaken projects in 91 countries and territories globally.

Over the years, we have been a recipient of many reputable awards including the prestigious Forbes Asia 200 Best Under A Billion Award. In 2019, we were awarded the Most Transparent Company Award and Sustainability Award (Runner-Up) by the Securities Investors Association (Singapore). From 2020 to 2022, we also ranked among Singapore's Best Employers, Singapore's Fastest Growing Companies and Asia-PacificHigh-Growth Companies. We were also honoured with the Corporate Excellence & Resilience Award at the Singapore Corporate Awards 2021 Special Edition.

Visit us at www.boustead.sg.

1. Long life.
2. Long existence or service.

- Lexico Powered by Oxford1

194 YEARS

• Boustead Group's age and counting /

Welcome to the Boustead Singapore Limited FY2022 Longevity Report.

With our time-honoured age of close to two centuries, our reference to sustainability reporting as 'Longevity Reporting' is deeply rooted in our all- encompassing, holistic approach to business and how we view our place in the world. As an organisation, we have enjoyed not only a long history but also a long life in service. This past year, we continued to tackle the challenging environment posed by the COVID-19 pandemic, inflationary

pressures, supply chain disruptions, and significant climate, geoeconomic and geopolitical risks, representing an existential threat to the longevity and well-being of the world.

Nonetheless, regardless of how major crises may change the way we operate, one thing is indelible - our distinct brand of entrepreneurialism, institutionalised in a corporate culture that links back to Boustead's earliest days of trading. Our embrace of the Boustead Way prioritises the pursuit of business with a greater purpose.

It is about creating sustainable shared socio-economic value instead of maximising short-term profit; promoting adaptability and resilience; and favouring longevity over sentimentality. It is also a position, a value, a commercial sensibility that runs through every layer of our organisation.

In this report, we hope that you gain an in-depth understanding of how we are fundamentally robust, remain progressive and resilient, ensure our longevity and protect the viability and long-term value of our businesses

and the wider ecosystem that we are interconnected with. We also share how this translates to delivering sustainable shared socio-economic value and progress to key stakeholders, along with the communities that we reside in and our collective home - Planet Earth. Our performance, policies and practices on material economic, environmental, social and governance topics are explained. As a trustworthy global corporate citizen, we are highly contemplative about how our actions 'ripple upon the pond of life'.

Dear Fellow Stakeholders,

It gives me great pleasure to present to you the Boustead Singapore Limited FY2022 Longevity Report for the financial year ended 31 March 2022.

The severe negative impact of the COVID-19 pandemic - extended lockdowns, massive economic disruptions and waves of variants - has been lingering in our world for over two years and continued to be deeply felt throughout FY2022. Even with COVID-19 under control in many countries, it will take time to get to

a 'new normal', especially when the recovery from the pandemic has been hampered by significant inflationary pressures, supply chain disruptions and major black swan events like the Russia-Ukraine War.

Set against this challenging operating environment, our performance in

FY2022 was likewise impacted with overall revenue being 8% lower year- on-year at S$631.8 million, mainly as a result of a lack of business development opportunities which in turn affected new contract awards.

Net profit attributable to our shareholders was 73% lower year-on- year at S$30.6 million, as the previous year's record results had been boosted by the successful launch of Boustead Industrial Fund ("BIF") and its value- unlocking transaction one-off gain of S$134.8 million ("BIF Value-Unlocking Gain").

Had our net profit been adjusted for other gains and losses net of non- controlling interests (largely from the BIF Value-Unlocking Gain), impairments and payouts from the Singapore Government's Jobs Support Scheme, net profit would have been 28% lower year-on-year at S$32.3 million.

Boustead - More Than An Enduring Business Legacy

Our Group's sustained profitability in this turbulent year did not happen simply by chance. As Singapore's oldest continuous business organisation, Boustead has gone through an extraordinary journey spanning almost 200 years, one in which we have witnessed two world wars, numerous economic crises and the evolution of many global sectors. Our ability to weather major storms is attributed to maintaining an agile mindset and fortitude, anchored by a business model that focuses on creating shared socio-economic value, supported by diversified businesses and strategies to remain 'in the moment' and built upon a culture, structure and balance sheet that are fundamentally robust.

In the book "Leadership to Last: How Great Leaders Leave Legacies Behind", Harvard Professors, Geoffrey Jones and Tarun Khanna studied the reasons behind long-lasting businesses in South Asia and revealed five key ingredients behind their existence

for decades - even centuries. Among the reasons include a commitment to social values and leadership that focuses on innovating to generate profit in ways that directly benefit society. These similar qualities are embedded in the Boustead Way, which

prioritises the pursuit of business with a greater purpose - creating sustainable shared socio-economic value versus maximising short-term profit; promoting adaptability and resilience; and favouring longevity over sentimentality. We want to generate outcomes that clearly benefit multiple stakeholders.

With the pace of the green energy transition intensifying, the world has seen increasing investments flow into low-carbon energy solutions. Even as this trend poses challenges to our Energy Engineering Division, we believe that we can meaningfully contribute to the low-carbon energy transition, beyond just being a financier. In the green energy realm, we have the potential to value-add with our complementary technology, such as in the area of Boustead International Heaters ("BIH")'s waste heat recovery units ("WHRUs") and accompanying technology solutions. Due to increasing global legislation to reduce greenhouse gas emissions, we see a higher demand for WHRUs designed to recycle exhaust and flue gases, instead of allowing them to be directly released into the environment or wasted as a potential energy source. During FY2022, BIH completed the delivery of their largest contract on record at about S$100 million, comprising 20 WHRUs that can recover an energy equivalent of

6.4 terawatt-hours annually, enough

electricity to power a small country. BIH also delivered a hydrogen-fired process heater system in the UK, leading the way for cleaner burning process heater systems to be deployed to the global oil & gas ("O&G") sectors to reduce emissions during the refining of O&G products and reduce emissions footprints. BIH continues to actively review diversification initiatives to move beyond the O&G sectors and deliver customised emissions reduction solutions that address climate change. The incubation of such solutions is already underway but will take time

to bear fruits. Nevertheless, some progress has been made in this respect and we stand in a good position to support clients in their endeavours towards greener energy options in the future.

In the past year, Boustead Projects has continued efforts to reshape the industrial real estate landscape through groundbreaking projects and the deployment of progressive and transformative technologies, underpinned by a strong focus on quality, environmental, health and safety management. During FY2022, Boustead Projects progressed on delivering two landmark projects under the Building & Construction Authority ("BCA") Green Mark Certification Scheme, first with Surbana Jurong Campus, Singapore's first Green Mark Platinum - Super Low Energy-

rated development in the large-scale business park and industrial real estate sector, and then with Takeda Singapore Biologics Manufacturing Support Facility, which is earmarked to be among Singapore's first Zero Energy Buildings in the real estate sector.

Furthermore, Boustead Projects' appointment as a SkillsFuture Singapore ("SSG") Queen Bee - the first and only in the built environment ("BE") sector - to enhance the skills capabilities of other smaller businesses in the same sector, has cemented

our position as the market leader for smart, eco-sustainable and future- ready developments. Our one-year role as an SSG Queen Bee - which recently concluded - allowed us to share our success and contributed to the technology transformation of the interdependent BE ecosystem, uplifting and building up the sector's resilience. Eventually, 28 small and medium-sized enterprises benefitted from our mentorship and guidance as an SSG Queen Bee. Being an SSG Queen Bee has bolstered our reputation as a national champion, not just as the industrial real estate market leader for Green Mark Platinum-rated new private sector developments, but also as the market leader in the BCA CONQUAS all- time top 100 industrial list and bizSAFE Mentor - among only eight in Singapore and the only one among our direct competitors.

During the pandemic, Esri ArcGIS technology has proven to be an invaluable tool in the battle against COVID-19 regionally, such as implementing contact tracing and testing programmes, safe distancing measures and vaccine rollouts. These ultimately contributed to the containment of the pandemic, safeguarding the well-being of people and allowing for the phased reopening of borders and resumption of international travel. Even as

the pandemic recedes, geospatial technology continues to enrich our understanding of Earth and be a great enabler in advancing the UN Sustainable Development Goals with the powering of the UN Open SDG Data Hub by Esri ArcGIS, along with adapting to and mitigating climate risks and contributing to the betterment

of lives around the world. Recently, a postdoctoral research fellow and Boustead-Esri Geospatial Scholarship recipient, Li Yangyang, created a Singapore-first soil database that can identify slopes that are susceptible to erosion and landslides, with such incidents more likely to occur with climate change and more volatile weather. In Australia, we continue to partner with the Australian Institute of Health & Welfare, Clean Energy Regulator, Indigenous Mapping Workshop and Sun Cable - the world's largest solar energy infrastructure

- to deliver breakthrough climate

resilience and environmental, social and governance ("ESG") programmes as part of our core business.

More than just being a service provider, the Geospatial Division has been nurturing geospatial professionals and empowering the broader ecosystem of users and global technology partners, through active engagement and consistent education on the use of geospatial technology to enhance and address clients' business and ESG needs. Within the division, the Geospatial Skills Black Belt Framework has been used to boost our team members' technical skills and service competencies, ultimately to better serve clients. There are also several philanthropic programmes including the Esri Disaster Response Program, GIS for Schools Program and Startup Program, just some of the few examples of the positive socio-economic impact we are creating in the sectors that

we operate in, cultivating impactful relationships - externally and internally

• to ensure the longevity of our business and the wider ecosystem.

On this note, I am pleased to share that both of our listed organisations, Boustead and Boustead Projects, received the Corporate Excellence

• Resilience Award at the Singapore Corporate Awards 2021 Special Edition, in recognition of listed corporations that have displayed exemplary performance