Boustead Singapore : Projects FY2022 Longevity Report

FY2022 LONGEVITY REPORT

/ THE BOUSTEAD WAY /

Boustead Projects Limited

FY2022 Sustainability Report

01 BOUSTEAD PROJECTS LIMITED FY2O22 LONGEVITY REPORT

INTRODUCTION		LONGEVITY REPORTING		PURSUING BUSINESS WITH
	FRAMEWORK		A GREATER PURPOSE

DEVELOPING OUR BEST ASSET -		CONSERVING OUR COLLECTIVE		OTHER INFORMATION
BOUSTEAD PROJECTS EMPLOYEES		HOME - PLANET EARTH

CORPORATE PROFILE

Established in 1996 and listed on the SGX Mainboard, Boustead Projects Limited (SGX:AVM) is a leading provider of innovative eco-sustainable real estate solutions with a regional presence across Singapore, China, Malaysia and Vietnam. Our core businesses are uniquely integrated to support the ecosystem of diversified classes of real estate, comprising:

• Turnkey engineering, full-fledged integrated digital delivery ("IDD"), and project and construction management encompassing design-and-build;
• Real estate development, asset and leasing management; and
• Real estate fund management including being the sponsor and manager of Boustead Industrial Fund, a scalable private real estate trust platform for business park, logistics and industrial properties, and joint owner of Echo Base-BP Capital Pte Ltd, an Asia-centric fund management and services platform focused on smart buildings and integrated developments.

To date, we have constructed and/or developed more than 3,000,000 square metres of real estate for clients including Fortune 500, S&P 500 and Euronext 100 corporations, across diverse sectors like aerospace, business park, food, healthcare and pharmaceutical, high-tech manufacturing, logistics, research & development, technology and waste management, among others. Under the Boustead Development Partnership with a reputable Middle East sovereign wealth fund, we have developed or redeveloped more than half a million square metres of real estate in Singapore including landmark developments like ALICE@Mediapolis and GSK Asia House.

Our in-house capabilities are backed by core engineering expertise, the progressive

adoption of transformative methodologies including full-fledged IDD and Industry 4.0 technologies and augmented by strategic partnerships which enable the co-creation of smart, eco-sustainable and future-ready developments. Our wholly-owned Engineering

• Construction subsidiary in Singapore, Boustead Projects E&C Pte Ltd ("BP E&C") is the eco-sustainability leader in pioneering Green Mark Platinum-rated new private sector industrial developments under the Building
• Construction Authority ("BCA") Green Mark Certification Scheme and a national champion of best practices for transformation, quality, environmental, and workplace safety and health ("WSH") management. BP E&C's related achievements include being the
  first SkillsFuture Queen Bee for the built environment sector, quality leader on the BCA CONQUAS all-time top 100 industrial projects list and one of only eight bizSAFE Mentors, receiving numerous awards for exemplary WSH performance.

We were awarded the Corporate Excellence & Resilience Award at the Singapore Corporate Awards 2021 Special Edition, a recognition of our best practices in corporate governance and leadership, innovation and resilience during the COVID-19 pandemic. We were also awarded the Singapore Corporate Governance Award in the Newly Listed Category at the Securities Investors Association (Singapore) Investors' Choice Awards 2017 and are one of only 92 SGX-listed corporations on the SGX Fast Track Programme.

Boustead Projects is a 54%-owned subsidiary of Boustead Singapore Limited (SGX:F9D),

a progressive global infrastructure-related engineering and technology group which is separately listed on the SGX Mainboard.

Visit us at www.bousteadprojects.com.

TABLE OF CONTENTS
SECTION 1 - INTRODUCTION
Corporate Profile	1
Defining Longevity	2
Letter to Stakeholders	3
FY2022 Environmental, Social & Governance Highlights	5
The Boustead Way, Mission, Vision & Business Model	7
1.1 About this Report	9
1.2 Board Longevity Statement	11
1.3 Corporate Stewardship & Strategies	12
1.4 Environmental, Social & Governance Materiality Assessment	14
1.5 FY2022 Longevity Performance Summary	26
SECTION 2 - PURSUING BUSINESS WITH A GREATER PURPOSE
A Quarter-Century of Pioneership & Transforming Asia's Built
Environment	32
2.1 Integrated Real Estate Solutions Provider	33
2.2 Smart, Eco-Sustainable & Future-Ready Solutions	37
2.3 Quality	44
2.4 Transformation Initiatives	46
2.5 FY2022 Direct Economic Value Generation & Distribution	49
SECTION 3 - DEVELOPING OUR BEST ASSET
- BOUSTEAD PROJECTS TEAM
A People-to-People Business	55
3.1 Code of Conduct	56
3.2 Team Development Programme	58
3.3 Positive Work Environment	66
3.4 Supply Chain Management	69
3.5 COVID-19 & Infectious Disease Outbreaks	70
SECTION 4 - CONSERVING OUR COLLECTIVE HOME
- PLANET EARTH
Planet Earth	75
4.1 Environmental Stewardship	76
4.2 Legal & Regulatory Compliance	84
4.3 Community Development	86
4.4 Conclusion	87
OTHER INFORMATION
GRI Content Index	88
Acknowledgements	94

02 BOUSTEAD PROJECTS LIMITED FY2O22 LONGEVITY REPORT

INTRODUCTION		LONGEVITY REPORTING		PURSUING BUSINESS WITH		DEVELOPING OUR BEST ASSET -		CONSERVING OUR COLLECTIVE		OTHER INFORMATION
	FRAMEWORK		A GREATER PURPOSE		BOUSTEAD PROJECTS EMPLOYEES		HOME - PLANET EARTH

DEFINING LONGEVITY

LONGEVITY

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

- Lexico Powered by Oxford1

14 YEARS	26 YEARS	194 YEARS
Average lifespan	/ Boustead Projects'	/ Boustead Group's
of S&P 500	age and counting /	age and counting /
corporation2

Welcome to the Boustead Projects Limited FY2022 Longevity Report.

Among Singapore's leading real estate solutions providers for smart, eco- sustainable and future-ready developments, we have demonstrated over a quarter- century of pioneership and innovation in real estate solutions including the engineering, construction and development of advanced facilities serving some of the world's

best corporations. Our contributions to transforming Singapore and Asia's built environment sector have been accompanied by transformative technologies that shape our business in an even more sustainable manner and enable clients with smart, eco-sustainable and future-ready developments founded upon progressive Industry 4.0 transformation standards. We also share in the enduring heritage of the

Boustead Group under Boustead Singapore Limited, which has contributed almost two centuries of progress and maintains their longstanding position as Singapore's oldest continuous business organisation

• a practical and symbolic reflection of longevity.

Our reference to sustainability reporting as 'Longevity Reporting' is deeply rooted in the enduring heritage of the Boustead Group.

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 the Boustead Group'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 have built a stable foundation, 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 we strive towards what the Boustead Group has achieved in longevity over almost two centuries and 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 corporate citizen, we are highly contemplative about how our actions 'ripple upon the pond of life'.

1. "Meaning of Longevity in English."Lexico.com, Dictionary.com and Oxford University Press, www.lexico.com/definition/longevity. Accessed 28 July 2022.
2. Handscomb, Christopher and Shail Thaker. "Activate Agility: The Five Avenues to Success." McKinsey & Company, 1 February 2018, www.mckinsey.com/business-functions/organization/our-insights/the-organization-blog/activate-agility-get-these-five-things-right.Accessed 28 July 2022.

03 BOUSTEAD PROJECTS LIMITED FY2O22 LONGEVITY REPORT

INTRODUCTION		LONGEVITY REPORTING		PURSUING BUSINESS WITH
	FRAMEWORK		A GREATER PURPOSE

LETTER TO STAKEHOLDERS

DEVELOPING OUR BEST ASSET -		CONSERVING OUR COLLECTIVE		OTHER INFORMATION
BOUSTEAD PROJECTS EMPLOYEES		HOME - PLANET EARTH

to rein in the spread of the pandemic. However, our revenue performance was partially offset by a reduction in rental revenue from the Real Estate Business following the sale of interests in 14 properties to BIF at the end of FY2021.

largest projects secured pre-pandemic

• JTC Kranji Green and Surbana Jurong Campus - and are expecting their completion in FY2023.

The adoption of construction and real estate technology - commonly known

John Lim Kok Min

Chairman

Dear Fellow Stakeholders,

It is our pleasure to present to you the

Boustead Projects Limited FY2022 Longevity Report for the financial year ended 31 March 2022.

Following the record profit in FY2021 which was boosted by the Boustead Industrial Fund ("BIF") value-unlocking transaction one-off gain of S$134.8 million ("BIF Value-Unlocking Gain"), our focus for FY2022 was to remain profitable amid the challenging business environment, and to progressively complete pre-pandemic projects that had faced unprecedented pandemic-related cost escalations. Under the guidance of the Board and the leadership of senior management, we delivered a credible performance in

Wong Yu Wei

Executive Deputy Chairman

the face of multi-faceted challenges. Our profitable performance in FY2022 was by no means an easy feat. Since the start of the pandemic, management has had to continually address evolving challenges while remaining agile and focused. Our progressive mindset, strong resilience and prudent execution have formed a stable foundation for us to prevail during this difficult period.

Overall revenue was 13% higher year- on-year at S$339.1 million, mainly due to higher revenue recognition on Engineering & Construction ("E&C") projects arising from a gradual resumption of construction activities in the built environment ("BE") sector, as compared to the previous year's extended shutdown of project sites, imposed by the Singapore Government

Our net profit attributable to our shareholders was 91% lower year-on- year at S$11.3 million, largely due to the absence of the BIF Value-Unlocking Gain. However, adjusting for this gain, net profit for FY2022 compared favourably to the post-adjustment loss of S$3.2 million for FY2021, due largely to the commitment and focus of our management team. Our team's commitment and dedication have allowed us to adapt to the challenges and stay focused on creating value for our stakeholders.

FY2022 - Navigating the Pandemic FY2022 saw the completion of a number of milestone projects, including Bombardier Singapore Service Centre Phase 2, Razer SEA HQ and Wilmar International HQ, with the latter two adding to the innovative landscape

of Singapore's thriving research & development hub, one-north. We also delivered several projects for the pharmaceutical and semiconductor sectors, including a sizeable project for a Fortune 500 semiconductor corporation in Malaysia. Apart from these, we made progress on our two

as ConTech and PropTech - to increase productivity and reduce reliance on labour is more critical today than ever before. Technology investments have not only helped us to address the challenges of the pandemic but have also transformed us into the leading technology-driven player within the BE sector. Meaningful partnerships forged with several ConTech and PropTech partners have helped our integrated digital delivery, building information modelling and technology initiatives to be critical platforms that allowed for remote coordination and minimised disruptions during the pandemic. As we continually improve our productivity and workflows, our partners are simultaneously benefitting from their opportunities to testbed and finetune technological offerings for the BE sector.

In June 2022, in recognition of our use of innovation to uplift workplace safety and health ("WSH") standards, we were named a recipient of the Bronze Award at the Singapore Contractors Association Ltd's WSH Innovation Awards 2022. This award was for our

04 BOUSTEAD PROJECTS LIMITED FY2O22 LONGEVITY REPORT

INTRODUCTION		LONGEVITY REPORTING		PURSUING BUSINESS WITH		DEVELOPING OUR BEST ASSET -		CONSERVING OUR COLLECTIVE		OTHER INFORMATION
	FRAMEWORK		A GREATER PURPOSE		BOUSTEAD PROJECTS EMPLOYEES		HOME - PLANET EARTH

deployment of SafeSite, a worksite management system by TraceSafe that uses smart sensing technology to automate health and safety protocols. The adoption of SafeSite has helped to create a safer work environment at our project sites, helping to minimise worksite accidents and dangers, and keeping our team members and suppliers' employees healthier and safer during the pandemic.

Being a leader in smart, eco-sustainable and future-ready industrial real estate solutions, our journey with the Building

• Construction Authority ("BCA")'s evolving Green Mark Certification Scheme and Singapore's emissions reduction pledge, is also progressing. As the market leader for Green Mark Platinum-rated new private sector industrial developments, we are currently delivering the most advanced eco-sustainable buildings in Singapore. Surbana Jurong Campus will be

Singapore's first Green Mark Platinum

• Super Low Energy-rated development in the large-scale business park and industrial real estate sector. We have also expanded our achievements to

design-and-build our first Green Mark Platinum - Zero Energy Building, with the almost-complete Takeda Singapore Biologics Manufacturing Support

Facility, which is earmarked to be among Singapore's first Zero Energy Buildings in the real estate sector.

In our commitment as a responsible developer to address climate change, we have also facilitated tenant commitments which will see an additional five properties within our managed portfolios fitted with industrial solar energy capacity of over 892 kilowatt-peak, capable of generating over 1.1 gigawatt-hours of electricity annually. In FY2022, we also signed an agreement to build Razer's first solar installation that will generate renewable energy of 256,000 kilowatt- hours per year under their 10-year sustainability plan #GoGreenWithRazer, a commitment to transfer their entire operations to 100% renewable energy by 2025 and become fully carbon neutral by 2030. We will continue to press forward with marketing the use of industrial solar energy systems at our developments, together with our solar energy technology partners.

In FY2022, we were appointed as a SkillsFuture Singapore ("SSG") Queen Bee - the first and only in the BE sector

• to drive workforce upskilling and help our partners, particularly small and medium-sized enterprises ("SMEs"),

to build up their technology skills capabilities to meet business needs. Beyond a recognition as a market leader, our one-year role as an SSG Queen Bee - which recently concluded

• allowed us to contribute to building up the interdependent BE ecosystem and resilience of the sector. Eventually, 28 SMEs benefitted from our mentorship and guidance as an SSG Queen Bee. Being an SSG Queen Bee has also bolstered our reputation as a national champion and complements our existing position as a bizSAFE Mentor, among only eight across Singapore and the only one among our direct competitors.

On this note, we are pleased to share that Boustead Projects was awarded the Corporate Excellence & Resilience Award at the Singapore Corporate Awards 2021 Special Edition, in recognition of our resilience, innovative spirit and strong leadership during the pandemic.

This report is intended to give you an in-depth understanding of how we 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 we strive towards what the Boustead Group has achieved in longevity over almost two centuries and 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. When reviewed in conjunction with our financial performance, you should come away with a holistic impression of not only Boustead Projects but the ecosystems - small and large - that we are an integral part of.

Thank you for entrusting us with the role of being a trustworthy corporate citizen, one which we hope to honour for many more decades to come. This journey is an ultramarathon, which we will continue running in the Boustead Way and hope to have you join, even if only for part of the way. Have an enjoyable and insightful read.

May you and your loved ones stay well and safe.

John Lim Kok Min

Chairman

Wong Yu Wei

Executive Deputy Chairman