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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

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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

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100

15

ACROSS SINGAPORE AND INTO THE REGION

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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

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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

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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

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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.

Transformation Update

The Group’s efforts in spearheading ecommerce logistics are being recognised. In June 2014, SingPost was awarded the World Mail Award for eCommerce.

Investments in the transformation continue. Capital expenditure has increased. In FY2014/15, capital expenditure amounted to S$104.4 million, a 176.5 per cent increase from FY2013/14.

Trusted Communications In support of the Government’s call to raise productivity, we invested S$45 million in new mail sorting equipment. The integrated machines, which were installed and commissioned smoothly during the

financial year, help to deliver both a more productive as well as better service. This is especially so, as operating costs in Singapore continue to increase. The increase in postage rates during the financial year, the first effective rate revision since 2006, will help to partially mitigate cost increases.

As part of our ongoing efforts to transform the post office network, we started to roll out new generation post offices which are remodelled into vibrant lifestyle hubs integrated with 24/7 automated self-service lobbies.

Our investment in innovation continued with the integration of transactional services onto a digital platform. This offers a unified user experience for our customers across the self-service automated kiosks, mobile phones, tablets and personal computers.

We also continued to upskill our frontline staff. Development initiatives like Lean Six Sigma, WSQ certification courses and organisation-wide C3 service training were rolled out to help staff stay relevant, and raise their productivity and income. This is also in line with the Government’s efforts to drive lifelong employability and greater productivity. It also helps the company to innovate and create value in new ways.

Regional eCommerce Logistics During FY2014/15, Alibaba Investment Limited took a 10.3% stake in SingPost via share issue and treasury share transfer.

Our web-solutions business has taken on more globally known mono-brand customers and further extended into new online markets in Asia. To strengthen our regional ecommerce logistics capabilities, our subsidiaries undertook several overseas acquisitions and joint ventures. SP eCommerce entered a joint venture to tap the ecommerce opportunities in the market. Acquisitions included:

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• The Store House in Hong Kong by General Storage as part of the regional expansion of the self-storage solutions business;

• Couriers Please in Australia by Quantium Solutions for a complete end-to-end ecommerce logistics chain in the Pacific region; and

• F.S. Mackenzie UK and FPS NZ by Famous Holdings which extended its freight forwarding network.

Investments in ecommerce logistics infrastructure continued. The fully integrated Regional eCommerce Logistics Hub, which is expected to be operational in the second half of 2016 and be equipped with state- of-the-art technology, will be the first of its kind in Southeast Asia.

We reached our stretch target of 100 automated smart parcel locker stations, POPStations, in Singapore, and introduced more services on the locker stations, such as posting of parcels and payment for online purchases.

Transformation of Support Enablers Underpinning the Group’s transformation are the critical investments in supporting enablers, such as technology and human resources.

For the Group to play a leading role in enabling our customers to operate in the online space, we must have the necessary technology capabilities. We have been investing in various areas such as track and trace for our delivery network, IT integration for our various operations, digital platforms and mobile apps.

In addition, the Group is shaping a lean operation backbone across the organisation. For example, we are leveraging technology for support services, revamping and improving processes, and outsourcing support functions. This will also enable the Group to be more

efficient and have systems that are flexible and scalable as we expand our presence into various markets across the region.

Our employees are our most valuable asset. We are strengthening our talent and management bench, and investing in training and upgrading the skill sets of our staff. We continue to provide support for lower income staff through the SingPost Inclusivity Fund.

People and Culture

Our transformation efforts have delivered strong results because our core values are embedded in our culture, ensuring long-term sustainability. Our core values of Trust, Total Customer, One Team, Top Execution, and Transformation have proven more important than ever, serving as the bedrock for over 7,000 employees across geographies, including newly acquired companies. Our values shape our culture, and help us to better serve our stakeholders.

Going International

We are pushing ahead with the next phase of the Group’s transformation. With building blocks in place in key markets in Asia Pacific, we are now further accelerating our overseas expansion. This is in keeping with the Government’s encouragement of local companies to spread their wings overseas. Our key focus is to extend and strengthen the Group’s ecommerce logistics network in Asia Pacific, especially our warehousing and delivery capabilities.

Our investments into the future will continue, with higher expenditure on resources and infrastructure. We are investing in building up talent in our workforce in Singapore and the region as the Group operates in

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the international arena. Infrastructure, such as the upcoming Regional eCommerce Logistics Hub, will position us for further growth.

As part of our growth strategy, we will continue to pursue investment opportunities, including M&As and joint ventures in the region.

As we go international, our commitment to the Singapore market and domestic customers remains unchanged. This is despite the fact that the Group faces increasing challenges. The structural decline in the traditional postal business is reflected in lower letter mail volumes and post office transactions. Costs have risen significantly over the past eight years since the postage rate increase in 2006. The recent rate revision in October 2014 provides some relief. Costs such as labour expenses, are expected to continue rising in Singapore. Competition has intensified as more operators enter the regional markets for a share of transhipment, ecommerce and logistics businesses.

Commitment to All Stakeholders

SingPost is committed to its service obligations and quality of service standards as the Public Postal Licensee of Singapore. Notwithstanding the challenges of declining traditional letter mail volumes and rising costs of operation, we have been investing in postal infrastructure and service quality, even as some postal operators worldwide have been scaling back.

The Group is commited to being a good corporate citizen and contributes to the community through corporate adoptions of charities and causes, donations and sponsorships. Apart from corporate giving, we also encourage our staff to volunteer their time and contribute towards our adopted charities -- Food from

the Heart and the Jamiyah Children’s Home. Giving back to society is, and always will be an integral part of our corporate culture and we will continue to engage and contribute to the community.

Thank you

On behalf of the Board, I wish to express my appreciation to our management and staff who have been essential in driving the Group forward. We greatly appreciate the continued support of our partners, the union and customers, as we forge ahead with our transformation.

I thank our Board of Directors for their invaluable guidance and contributions during this critical period. They have gone beyond the call of duty, in their efforts to help the company accelerate its transformation. On behalf of the Board of Directors, I welcome our new directors, Mr Goh Yeow Tin and Mr Justin Chen. The Board has been further strengthened by their presence and benefitted from their insights.

Last but not least, we appreciate the support of our shareholders during these challenging but exciting times as we transform the Group into a regional leader in ecommerce logistics and trusted communications.

LIM HO KEE CHAIRMAN

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BOARD OF DIRECTORS

Lim Ho Kee, 70 Chairman Non-executive, independent director

Date of first appointment as a director: 25 April 1998

Date of last re-election as a director: 29 June 2012

Board committee(s) served on: Executive Committee (Chairman) Nominations Committee (Member)

Academic & Professional Qualification(s): Bachelor of Science (Economics), London School of Economics, United Kingdom

Present Directorships in other listed companies (as at 31 March 2015): Nil

Principal Commitments: Majuven Pte. Ltd. (Managing Partner)

Past Directorships in listed companies held over the preceding three years: (from 31 March 2012 to 30 March 2015) Jardine Cycle & Carriage Limited Keppel Land Limited

Goh Yeow Tin, 63 Deputy Chairman Non-executive, independent director

Date of first appointment as a director: 7 July 2014

Date of last re-election as a director: -

Board committee(s) served on: Compensation Committee (Chairman) Executive Committee (Member)

Academic & Professional Qualification(s): Bachelor of Engineering (Honours) (Mechanical), the University of Singapore Masters of Engineering (Industrial Engineering and Management), the Asian Institute of Technology

Present Directorships in other listed companies (as at 31 March 2015): Vicom Ltd Sheng Siong Group Ltd OEL (Holdings) Limited Lereno Bio-Chem Ltd. AsiaPhos Limited

Principal Commitments: Seacare Medical Holdings Pte Ltd (Non-Executive Chairman)

Past Directorships in listed companies held over the preceding three years: (from 31 March 2012 to 30 March 2015) Nil

Tan Yam Pin, 74 Non-executive, independent director

Date of first appointment as a director: 25 February 2005

Date of last re-election as a director: 4 July 2014

Board committee(s) served on: Audit Committee (Member) Board Risk and Technology Committee (Member) Compensation Committee (Member) Executive Committee (Member)

Academic & Professional Qualification(s): Bachelor of Arts (Economics), University of Singapore Master of Business Administration, University of British Columbia Fellow, Canadian Institute of Chartered Accountants, Canada

Present Directorships in other listed companies (as at 31 March 2015): Keppel Land Limited Great Eastern Holdings Limited

Principal Commitments: Singapore Public Service Commission (Deputy Chairman)

Past Directorships in listed companies held over the preceding three years: (from 31 March 2012 to 30 March 2015) BlueScope Steel Limited (Australia)

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Professor Low Teck Seng, 60 Non-executive, independent director

Date of first appointment as a director: 8 October 2010

Date of last re-election as a director: 28 June 2013

Board committee(s) served on: Board Risk and Technology Committee (Chairman)

Academic & Professional Qualification(s): Bachelor of Science (First Class Honours) and Ph.D, Southampton University Institute of Electrical and Electronics Engineer (Fellow) Royal Academy of Engineers (Fellow)

Present Directorships in other listed companies (as at 31 March 2015): Excelpoint Technology Ltd ISEC Healthcare Ltd

Principal Commitments: National Research Foundation (Chief Executive Officer)

Past Directorships in listed companies held over the preceding three years: (from 31 March 2012 to 30 March 2015) Innotek Limited

Keith Tay Ah Kee, 71 Non-executive, lead independent director

Date of first appointment as a director: 25 April 1998

Date of last re-election as a director: 4 July 2014

Board committee(s) served on: Nominations Committee (Chairman) Audit Committee (Member) Executive Committee (Member)

Academic & Professional Qualification(s): Fellow, Institute of Chartered Accountants in England and Wales Honorary Fellow, Institute of Singapore Chartered Accountants

Present Directorships in other listed companies (as at 31 March 2015): Singapore Reinsurance Corporation Limited Rotary Engineering Limited FJ Benjamin Holdings Ltd YTL Starhill Global REIT Management Limited

Principal Commitments: Stirling Coleman Capital Ltd (Non-Executive Chairman)

Past Directorships in listed companies held over the preceding three years: (from 31 March 2012 to 30 March 2015) SATS Limited

Dr Wolfgang Baier, 41 Group Chief Executive Officer Executive, non-independent director

Date of first appointment as a director: 5 October 2011

Date of last re-election as a director: 4 July 2014

Board committee(s) served on: Executive Committee (Member)

Academic & Professional Qualification(s): Ph.D in Laws (Distinction), University of Vienna Master of Laws, University of Vienna (Austria) Master of Business Economics, Universities of Exeter (UK) and Graz (Austria)

Present Directorships in other listed companies (as at 31 March 2015): Nil

Principal Commitments: Nil

Past Directorships in listed companies held over the preceding three years: (from 31 March 2012 to 30 March 2015) Nil

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Bill Chang York Chye, 49 Non-executive, non-independent director

Date of first appointment as a director: 15 Nov 2010

Date of last re-election as a director: 28 June 2013

Board committee(s) served on: Board Risk and Technology Committee (Member) Compensation Committee (Member)

Academic & Professional Qualification(s): Bachelor of Engineering (Electrical and Computer Systems Engineering) (Honours), Monash University

Present Directorships in other listed companies (as at 31 March 2015): Nil

Principal Commitments: Singapore Telecommunications Limited (Chief Executive Officer, Group Enterprise) Singapore Polytechnic (Chairman of Board of Governors)

Past Directorships in listed companies held over the preceding three years: (from 31 March 2012 to 30 March 2015) Nil

Chen Jun, 41 Non-executive, non-independent director

Date of first appointment as a director: 31 July 2014

Date of last re-election as a director: -

Board committee(s) served on: Nil

Academic & Professional Qualification(s): Bachelor of International Finance and Accounting, Shanghai University EMBA degree, INSEAD, France

Present Directorships in other listed companies (as at 31 March 2015): Alibaba Health Information Technology Limited

Principal Commitments: Alibaba Group Holding Limited (Vice President)

Past Directorships in listed companies held over the preceding three years: (from 31 March 2012 to 30 March 2015) Nil

Soo Nam Chow, 61 Non-executive, independent director

Date of first appointment as a director: 20 December 2013

Date of last re-election as a director: 4 July 2014

Board committee(s) served on: Audit Committee (Chairman) Nominations Committee (Member)

Academic & Professional Qualification(s): Fellow Member, Association of Chartered Certified Accountants, United Kingdom Member, Institute of Singapore Chartered Accountants

Present Directorships in other listed companies (as at 31 March 2015): Mapletree Industrial Trust Management Ltd

Principal Commitments: Nil

Past Directorships in listed companies held over the preceding three years: (from 31 March 2012 to 30 March 2015) Nil

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Aliza Knox, 54 Non-executive, independent director

Date of first appointment as a director: 30 August 2013

Date of last re-election as a director: 4 July 2014

Board committee(s) served on: Board Risk and Technology Committee (Member)

Academic & Professional Qualification(s): Masters in Business Administration in Marketing (Distinction), New York University Graduate School of Business Administration Bachelor of Arts in Applied Math and Economics (magna cum laude), Brown University

Present Directorships in other listed companies (as at 31 March 2015): InvoCare Limited GfK SE

Principal Commitments: Twitter, Inc., Singapore (Managing Director)

Past Directorships in listed companies held over the preceding three years: (from 31 March 2012 to 30 March 2015) Nil

Michael James Murphy, 61 Non-executive, non-independent director

Date of first appointment as a director: 7 August 2009

Date of last re-election as a director: 29 June 2012

Board committee(s) served on: Board Risk and Technology Committee (Member)

Academic & Professional Qualification(s): Bachelor of Science (Nuclear Engineering and Industrial Technology), University of Massachusetts

Present Directorships in other listed companies (as at 31 March 2015): Nil

Principal Commitments: Postea Group, Inc. (Founder and Chief Executive Officer)

Past Directorships in listed companies held over the preceding three years: (from 31 March 2012 to 30 March 2015) Nil

Zulkifli Bin Baharudin, 55 Non-executive, independent director

Date of first appointment as a director: 11 November 2009

Date of last re-election as a director: 4 July 2014

Board committee(s) served on: Audit Committee (Member) Compensation Committee (Member) Nominations Committee (Member)

Academic & Professional Qualification(s): Bachelor of Science (Estate Management), National University of Singapore

Present Directorships in other listed companies (as at 31 March 2015): Ascott Residence Trust Management Limited

Principal Commitments: Uzbekistan (Non-Resident Ambassador) Kazakhstan (Non-Resident Ambassador) Indo Trans Logistics Corporation (Chairman) Civil Aviation Authority of Singapore (Board Member) Singapore Management University (Member, Board of Trustees)

Past Directorships in listed companies held over the preceding three years: (from 31 March 2012 to 30 March 2015) Hup Soon Global Corporation Limited

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MAIL

Continued investments in service

Even as SingPost accelerates its transformation efforts, it continues to sharpen its focus on meeting the needs of customers in this digital age, and delivering a better service experience.

To strengthen our capabilities and enhance delivery service quality, we are investing over S$100 million in the Singapore market over several years, despite mail volume decline and increasing costs of operation. The new S$45 million integrated sorting machines were fully operational in the second half of FY2014/15. These further increased the automation process, sorting capacity and speed of sorting, leading to improved efficiency and accuracy. As part of its efforts to enhance service quality, SingPost strengthened its postal workforce, hiring additional delivery staff and Quality Control officers to boost capacity to serve the increase in population and new housing estates. We also increased the salary of our postmen and frontline staff as well as continued to work closely with the Union to introduce measures to enhance job satisfaction. The postage rate adjustment in October 2014 will help to partially fund the investment in service enhancements.

In response to the growing ecommerce demographic, SingPost introduced new initiatives to offer customers greater choice and convenience during FY2014/15. We developed an envelope version of SmartPac known as SmartPac Lite for ecommerce items of up to 1kg to cater to the growing population of local online retailers. We also extended our operations to six delivery days, with Saturdays dedicated to delivering mail packages, as well

Continued investments to drive innovation, productivity and customer service to bring greater value to customers.

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as extended our call centre service to offer customers round-the-clock access. In addition, we expanded our fleet of higher capacity three-wheeler scooters for more and heavier ecommerce items, greater stability and safety for the postmen.

Our continuous efforts to enhance service quality have generated positive results. SingPost was bestowed the Service Provider of the Year 2014 Award by the Postal Technology International. Locally, SingPost was the only company in the transport and logistics sector to report a significant improvement in the Customer Satisfaction Index of Singapore 2014. Customer satisfaction in postal services increased to 71.2 points.

Smarter ways to connect

We remain focused on developing and innovating our digital offerings to help businesses seize the growth opportunities of the digital economy. In FY2014/15, we launched a subscription based digital mail service - ScanMail for small and medium-sized enterprises (SMEs), enabling them to access important physical documents in a digital setting anytime and anywhere.

We also strengthened our suite of integrated direct mail solutions. DMrocket, our direct mail business extended its interactive digital offerings to include Augmented Reality app, samplestore.com and Marketing Lab. Marketing Lab is an all-in-one portal that helps corporate customers run targeted campaigns to achieve their marketing objectives and return on their investment. The Sample Store, our tryvertising online platform, is developing a mobile application that will

provide a seamless consumer experience for redeeming samples on-the-go, facilitating sample search and sending in sample requests.

Strengthened international postal collaborations

As Singapore’s designated representative at the Universal Postal Union (UPU), SingPost participates actively in various working groups and committees in the UPU Postal Operations Council (POC). Through working in the various POC committees such as Product Strategic Integration Group, Supply Chain Integration, Markets Development and Physical Services, SingPost helps to define the postal industry for the future.

SingPost continues to serve on the boards of various international and regional postal cooperatives. It leads the Asia Pacific and ASEAN communities in a few postal initiatives to stimulate growth and improve service quality.

We remain focused on developing and innovating our digital offerings to help businesses seize the growth opportunities of the digital economy.

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Philately & Stamps

To strengthen bilateral ties with other postal administrations, SingPost collaborated with Philatelie Liechtenstein to release the first joint stamp issue, as well as with China Post on a commemorative prepaid

To mark Singapore’s 50th year of independence, SingPost rolled out a series of SG50 commemorative products

postcard celebrating the 20th anniversary of the founding of Suzhou Industrial Park. We also released stamp issues covering significant national events, such as commemorating 50 years of tourism and the completion of Singapore Sports Hub. A total of 11 stamp issues were released in FY2014/15.

In celebration of Singapore’s 50th year of nation building, we started releasing a three-set series of commemorative stamps from 2013, with the final set to be issued in 2015. In January 2015, we kicked off our first SG50 activities - stamped mail imprinted with a SG50 slogan depicting Singaporeans’ unique and fun traits, values and characteristics each month. We also launched a special edition SG50 MyStamp Folder showcasing Singapore iconic landmarks, culture and events, as well as limited edition SG50 Hello Kitty plush collectibles and MyStamp folder to celebrate the occasion.

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LOGISTICS

Stronger international presence

As part of our strategy to be a regional ecommerce logistics leader, we have made a number of acquisitions and invested in logistics infrastructure and last mile capabilities to strengthen our end-to-end integrated ecommerce logistics value chain. These include freight, customs and regulations management; warehousing and fulfilment capabilities; last mile delivery and returns; and ecommerce web services. Our focus is Asia Pacific, where we understand the region’s business and cultural characteristics.

Our wholly owned subsidiary, Quantium Solutions, made steady progress in expanding geographic coverage and capabilities. It acquired Couriers Please Holdings, an Australian express parcel delivery service, enabling us to provide end-to-end solutions across ecommerce, forwarding, warehousing and delivery in Australia. Quantium Solutions also expanded its ecommerce warehouse footprint with additional facilities in Hong Kong, Indonesia, New Zealand and Singapore.

We extended our international freight network through Famous Holdings, our freight forwarding arm. Famous acquired UK-based freight forwarder F.S. Mackenzie, providing the Group an entry point into the Western European freight market and strengthened its ability to provide customers with integrated ecommerce logistics solutions. Famous also acquired 90 per cent of Famous Pacific Shipping (NZ) in January 2015, broadening its network and boosting its end-to-end fully integrated ecommerce logistics solutions in the Pacific region.

We continued to develop our end-to-end ecommerce logistics solutions for a variety of markets across Asia and globally.

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The fully integrated Regional eCommerce Logistics Hub with state-of-the-art automation will help to facilitate our expanding ecommerce logistics business.

General Storage, which offers self-storage solutions under the brand of Lock+Store, acquired The Store House which has four storage facilities in Hong Kong. During the year, its facility in Malaysia commenced operations, offering cost-effective storage solutions and serviced office space. In Singapore, General Storage expanded its service offerings to include serviced office space at its flagship Chai Chee facility, and a bulk package counter at its Serangoon North outlet. SMEs can also tap on Lock+Store’s short- and long-term storage facilities with an option to use its ‘store, pack and deliver’ service for added convenience and speed. Additionally, SMEs can also rent office space as their businesses expand.

Enhanced speed-to-market

While SingPost forges ahead with its regional plans, the Singapore market remains a key priority as it continues to strengthen its logistics hub services for Singapore as well as internationally.

To enhance our ecommerce logistics capability amid a fast growing ecommerce market in Asia, SingPost is investing approximately S$182 million to develop a fully integrated Regional eCommerce Logistics Hub. The integrated hub, which includes an office block, will house automated parcel sorting and warehousing systems and bring together the ecommerce activities of Quantium Solutions, Singapore Parcel, Lock+Store and

SP eCommerce. The new facility when fully operational in the second half of 2016 is expected to further improve productivity, leading to lower handling cost and higher operational efficiency.

We continued to focus on enhancing our domestic parcel delivery operations and services to increase customer satisfaction. For instance, SMEs can use ezy2ship.com which allows them to prepare, pay and print postage for their packages easily from their office and at their own convenience. ezy2ship.com also allows them to manage and track their shipments easily.

We rolled out EzyTrak Mobile - an android delivery application that made our delivery more cost-efficient. The app facilitates our couriers to perform their job

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With the POPStation app, consumers can pick up their parcels even more quickly when they are within close proximity to the POPStation.

easily on any android-based smartphone, and allows customers to sign the delivery acceptance and rate our courier services as well.

Greater convenience

In our continuous efforts to provide customers greater convenience, we rolled out 100 POPStations islandwide at accessible places, such as shopping malls, office buildings, sports and recreation centres, post offices, petrol stations and community centres. Designed for today’s on-the-go lifestyles, the POPStation is popular with parcel recipients as it offers 24/7 access, security and convenience at no extra cost. We also added innovative features to further enhance customers’ online shopping experience, including a mobile app that enables remote unlocking of the secured locker, making parcel collection even speedier. The app also allows customers to track their parcels, receive alerts, manage their accounts or get information on the POPStation locations. Other new features enable customers to post their parcels, pay for their online purchases and collect them on-the-spot as well as return parcels.

To bring even greater convenience to online shoppers, SingPost works with eRetailers who can use the

POPStation as an alternative last-mile delivery option for customers. Partner eRetailers onboard include popular brands like Omigo, Taobao, vPost, Xiaomi and Zalora with more customers in the pipeline.

Our relentless efforts in enhancing our delivery service have not gone unnoticed. We were awarded the 2014 EMS Gold Certification Award by the Universal Postal Union, earning the honour of being the only company in the world to have won an award every year since 2001.

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We rolled out more than 10 new generation post offices with self-help friendly features that offer 24/7 access to key services.

RETAIL & ECOMMERCE

New generation post offices

We continued to make our post offices future-ready to meet the changing needs and lifestyles of our customers, particularly in the areas of their global ecommerce and digital needs. Following the successful pilot at Raffles Place Post Office, we rolled out more than 10 new generation post offices with self-help friendly features that offer 24/7 access to key services such as parcel collection and bill payments. This helped improve customer experience while enhancing staff productivity. Steps were also taken to streamline the product offerings, with an emphasis on merchandise related to customers’ mail and logistics needs. More new generation post offices will be rolled out gradually in the coming years.

The post office network serves as touchpoints for third parties that are interested in leveraging our convenient islandwide network and trusted infrastructure. In FY2014/15, we saw strong interest from financial institutions and government agencies in outsourcing day-to-day transactions, such as bill payments and cash deposits/withdrawals to the post office network. Customers will be able to access an expanded range of transactions through both physical and digital channels.

A new way to connect

The rise of digital technologies is transforming the way individuals and businesses communicate and access services. With customer centricity in mind, we began to build, design and work towards a unified user

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experience across our digital assets from web to mobile. We aim to integrate it seamlessly from online to our offline properties, such as in our post offices. We also integrated digital advertising across our digital assets i.e. web, mobile, TV and kiosks. Our enhanced SingPost app hit 0.4 million downloads, a 2.5 times growth from the previous year.

During the year, we extended our Self-service Automated Machines (SAM) from a kiosk to an omni- channel platform. In keeping with our innovation approach and alignment with customer’s changing lifestyles, we launched the web and mobile version of SAM in October 2014, and the pilot of the redesigned SAM kiosk in March 2015. Customers can access many SAM kiosk transactions on their own devices through the mySAM web portal and SAM mobile app. More enhancements will be added in the near future.

Financial services To provide greater accessibility to customers seeking life insurance solutions, SingPost rolled out AXA@POST at 34 selected post offices. This exclusive postassurance partnership with AXA, which was first announced in 2013, commenced in January 2015. We also introduced the AXA Rewards programme to reward AXA@POST customers for their support. They can select premium gifts at SingPost’s online marketplace, www.omigo.com.sg, and have them delivered to their doorstep.

The Standard Chartered SingPost Platinum Visa credit card, launched in 2012, was refreshed with new features added to better serve the growing ecommerce needs of customers. It is the first in the market to provide an ‘online price guarantee’ which allows the cardholder to get back 50 per cent of the price difference from the bank should he find a better deal online after purchase. It also offers seven per cent cashback on online purchases, which is the highest cashback rate offered in Singapore for online shopping. Importantly, the card also comes with ‘card safe guarantee’ to protect cardholders from fraudulent and unauthorised transactions.

Integrated eCommerce solutions

In the ecommerce space, we continued to enable businesses to tap the growing ecommerce market in Asia. We expanded our online offerings in the region to include Australia, New Zealand, Hong Kong and South Korea, providing businesses a connection into Asia Pacific.

With AXA@POST, customers have access to financial planning advice and services at selected post offices.

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We continued to scale up investments in technology like online security, scalability, marketing and omni- channel capabilities, remaining at the forefront of ecommerce and logistics in the region. Leveraging key partnerships with global technology providers, we enhanced our technology services further to help businesses expand their ecommerce operations across multiple markets in a scalable, sustainable model.

In April 2015, SingPost rolled out a fully integrated end- to-end ecommerce fulfilment solution to help SMEs sell online, scale and enhance productivity. This solution,

ezyCommerce automates the order-to-fulfilment cycle enabling SMEs to leverage SingPost’s efficient warehouse management and extensive distribution networks to scale up their business across multiple marketplaces and countries. Modular solutions such as shopping cart integrations, returns and import services will be rolled out progressively. During the year, our ecommerce solutions gained traction. We have more than 1,000 ecommerce customers which include global brands such as Deckers Outdoor, Muji and Triumph. In February 2015, we partnered Google for the first Great Online Shopping Festival in Singapore.

To provide online shoppers more cost efficient shipping solutions, our online shipping portal, vPost, launched a sea freight service between US and Asia Pacific. vPost also partnered postal administrations such as Australia Post and Austria Post to enable their residents to have their online purchases from US, UK, China and Japan shipped to them.

For our continuous efforts to help businesses to efficiently grow their business locally and internationally, SingPost won the World Mail Award for eCommerce in June 2014.SingPost launched ezyCommerce, a fully integrated end-to-end

ecommerce fulfilment solution, to help SMEs efficiently grow their business locally and internationally.

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PROPERTY

Singapore Post Centre (SPC), a mixed-use development, comprising office, industrial and retail lease space, is our largest property. To focus on enhancing value for our shareholders and in tandem with the Urban Redevelopment Authority’s plans to make Paya Lebar Central one of the sub-regional centres in Singapore, the Group intends to redevelop the retail mall of SPC. SPC continued to enjoy a high occupancy rate of 96 per cent as at 31 March 2015.

List of Major Properties

Name Address Title Yrs With

Effect From

Land Building

(SQ M) Gross Floor Area (SQ M)

Airmail Transit Centre 21 North Perimeter Road Leasehold 30 25.09.00 2,903 8,862

Alexandra Post Office 110 Alexandra Road Leasehold 99 31.03.92 2,305 923

Bukit Panjang Post Office 10 Choa Chu Kang Leasehold 99 31.03.92 3,264 2,015

Jurong Delivery Base 2 Kian Teck Way Leasehold 30 16.10.95 4,016 3,574

Kallang Delivery Base 18 Jalan Lembah Kallang Leasehold 30 16.09.98 2,761 6,850

Killiney Road Post Office 1 Killiney Road Leasehold 99 31.03.92 1,029 555

Loyang Delivery Base 25 Loyang Lane Leasehold 30 16.10.95 3,519 3,225

MacPherson Post Office 70 MacPherson Road Leasehold 99 31.03.92 1,918 315

Pasir Panjang Post Office 396 Pasir Panjang Road Leasehold 99 31.03.92 1,726 391

Serangoon Garden Post Office 54 Serangoon Garden Way Leasehold 99 31.03.92 1,215 307

Serangoon Road Post Office 755 Upper Serangoon Road Leasehold 99 31.03.92 1,353 3,012

Simpang Bedok Post Office 350 Bedok Road Leasehold 99 31.03.92 1,134 329

Singapore Post Centre 10 Eunos Road 8 Leasehold 99 30.08.82 32,738 137,134

Tanglin Post Office 56 Tanglin Road Leasehold 99 31.03.92 2,622 2,678

Woodlands Delivery Base 9 Woodlands Walk Leasehold 30 16.10.95 3,040 2,393

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INVESTOR RELATIONS

Enhanced investor engagement and communications

As the pace of transformation continues, we proactively communicate with the investor community to convey information and insights on market dynamics, challenges and strategy. We make use of one-on-one and group meetings, conference calls, post-results roadshows, investor conferences, site tours and various other channels to communicate with investors.

Management participated in investor conferences and non-deal roadshows in Singapore and the region. They also conducted quarterly results briefings to analysts and media, and post-results roadshows. About 181 investor meetings and calls were made during the financial year.

A total of eight research firms covered SingPost, issuing 50 research reports and notes during the year. We continue to partner with the Securities Investors Association of Singapore (SIAS) to organise investor presentations for their members.