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GOING INTERNATIONAL

ANNUAL REPORT 2014/2015

Australia

China

Hong Kong

India

Indonesia

Japan

Malaysia

New Zealand

Philippines

Singapore

Taiwan

Thailand

United Kingdom

United States

Vietnam

OUR VISION

CONTENTS

REGIONAL LEADER IN ECOMMERCE LOGISTICS AND TRUSTED COMMUNICATIONS

Rapid globalisation and proliferation of technology make it imperative to go beyond Singapore shores for long-term growth. SingPost has been steadily expanding its presence overseas, leveraging its subsidiaries and partners. SingPost is building on its five business pillars - Mail, Digital Services, Logistics, Retail & Financial Services, and eCommerce – to become a global brand. Continuing to evolve, to innovate, to leapfrog in the constant endeavour to serve stakeholders. Driven by its vision to be a regional leader in ecommerce logistics and trusted communications.

6 Letter to Shareholders 10 Board of Directors 14 Mail 17 Logistics 20 Retail & eCommerce 23 Property 24 Investor Relations 25 Shareholder Returns 26 Business Review 27 Group Financials 28 Group Five-Year Financial Summary 30 Financial Review and Outlook 36 Corporate Governance Report 65 Building a Long Term Sustainable Group and Strengthening CSR

71 Profile of Key Executives 73 Statutory Reports and Financial Statements 235 SGX Listing Manual Requirements 238 Shareholding Statistics 240 Contact Points

MAIL LOGISTICS ECOMMERCE DIGITAL

SERVICES RETAIL &

FINANCIAL SERVICES

5BUSINESSPILLARS

Retail & Financial Services eCommerce Logistics

Mail Digital Services

2

100

15

ACROSS SINGAPORE AND INTO THE REGION

3

As part of its regional thrust, SingPost has been adding relevant capabilities in various geographies

as a conduit for businesses to connect into Southeast Asia and wider Asia. Building on its competencies, SingPost is pioneering a fully integrated low-cost

ecommerce logistics model covering freight, customs and regulations management; warehousing

and fulfilment capabilities; last mile delivery and returns; and ecommerce web services. Its Regional

eCommerce Logistics Hub in Singapore will be a vital springboard to regional markets.

ECOMMERCE LOGISTICS

4

1500

5 MILLION

NEW GROWTH OPPORTUNITIES

5

For consumers and businesses, the emergence of a global marketplace means choice, convenience, mobility, speed, ease of use, 24/7. SingPost addresses these needs with digital and mobile solutions including mobile apps, SAM, and ScanMail. These omni-channel platforms offer customers a consistent and unified experience. SingPost is also investing over S$100 million to further innovation,

productivity and customer service. These include a more efficient mail sorting system, new generation post

offices integrated with 24/7 automated self-service lobbies, and higher-capacity three-wheeler scooters.

TRUSTED COMMUNICATIONS

6

Dear Shareholders,

Much has been achieved over the last 12 years since the Group first embarked on its transformation. From a domestic postal operator, SingPost has more recently become a regional player in ecommerce logistics. Since the IPO in 2003, SingPost’s market capitalisation has grown by approximately 260 per cent, and total shareholders’ return over the period amounted to approximately 350 per cent. Over the years, we have been putting into place the building blocks of an end- to-end ecommerce logistics solutions platform in Asia Pacific, in our bid to survive the reality of declining mail. We are continuing to pioneer and push beyond our current forays into this field, and build upon this foundation to expand and grow.

Financial Performance

The Group’s focus on ecommerce and logistics has been bearing fruit. Revenue amounted to S$919.6 million in FY2014/15, an increase of 12 per cent from S$821.1 million in FY2013/14. Notably, approximately 33 per cent of revenue came from our expanding overseas interests, compared to 12.9 per cent three years ago, at the start of the accelerated transformation.

In addition, we estimate ecommerce related revenue at about 28 per cent of group revenue in FY2014/15, with ecommerce customers across the Group numbering over 1,000.

In spite of the Group’s continued investment in transformation contributing to an increase in operating costs, we achieved a steady profit performance. Underlying net profit, which reflects the Group’s core operating performance, was S$157.2 million, an increase of 5.2 per cent from S$149.5 million last year. Net profit, which now includes fair value gains from investment properties, was lower by 17.9 per cent at

LETTER TO SHAREHOLDERS

7

S$157.6 million compared to the restated S$192 million for FY2013/14.

Operating cash flow remained healthy, at $235 million as at 31 March 2015 compared to S$241.8 million as at 31 March 2014. Free cash flow was lower at S$130.6 million in FY2014/15 compared to S$204.1 million in the previous financial year as a result of higher capital expenditure. The Group remained in net cash position of S$345.8 million.

Dividend

Given the healthy operating cash flows, the Board is recommending a variable dividend of 1.25 cents per share, in addition to the final quarter dividend of 1.25 cents per share. This would bring the total annual dividend to 6.25 cents per share.

Barring unforeseen circumstances, SingPost will continue to pay out a base annual dividend of 5 cents per share. This will be paid on a quarterly basis, i.e. 1.25 cents per share per quarter.