SMRT CORPORATION LTD

Deutsche Bank Corporate Day Regional Infrastructure 24 June 2005

Introduction
Listed July 2000, SMRT Corporation is first listed metropolitan rail operator in the world. Dominant operator of Singapores rail system; significant bus and taxi operator. Reaps increasing revenues from retail and advertising, as well as engineering consultancy, O&M and related services. AAA-rated, MSCI Singapore indexed stock with market capitalisation of approx. S$1.6b.
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Milestones
Nov 1987 Apr 1998 Oct 1999 Jul 2000 Aug 2001 Dec 2001 Dec 2002-3 2004 Commenced first revenue train service Entered into Licence & Operating Agreement with LTA to operate EW and NS lines for 30 years till 2028 Awarded licence to operate Bukit Panjang light rail first driverless system in Singapore till 2028 Listing of SMRT shares on SGX Awarded licence to operate Circle Line for 10 years, renewable for next 30 years Acquired TIBS Holdings Integration and consolidation, injection of new blood Expansion in Taxi and Retail operations
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Core Businesses
FY2005 Revenue by Business
Advertising 2% Engrg & Other Services 2% Rental 3%

Taxis 10%

Buses 27% Light Rail 1%

Trains 55%

82% of S$673.5m Group Revenue is fare revenue; 18% is non-fare.

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Earnings Profile
FY2005 EBIT by Business
Engrg & Other Services 6% Trains 54% Buses 9% Advertising Rental 6% 15% Taxis 4%

More than 30% of Group EBIT * is non-fare.

* Excluding goodwill impairment
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Business Strategy I Building on Stability

Fare revenue forms bulk of business, providing stable, cashgenerating base with expected organic growth of 1-2% annually. Rail network continues to expand with Boon Lay Extension (2009), Circle Line (2010) and Downtown Extension (2012) for Singapores new Business and Financial District and integrated resorts. Ridership is expected to grow and benefit from sustained economic growth in Singapore. Government has put in place a transparent and objective fare adjustment formula.
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Expansion of Rail Network

NEL operated by SBST

Cross St. Bayfront Landmark

Downtown Line DT

Business Strategy II Extracting Synergies

Create greater synergies, enhance cost efficiency and productivity, re-engineer business processes, streamline operations, and re-organise for a lean, efficient and effective organisation. Since 2003, merged backroom operations, integrated repairs and maintenance functions of Trains and Light Rail, fare operations with IT and system capabilities, and traffic planning and market development activities.
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Business Strategy III Leveraging Strengths

Focus on non-fare, higher-yield areas to grow top-line: Taxis, Retail, Advertising and offshore Engineering Consultancy, Operations & Maintenance projects.

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Taxi Expansion
Taxi market fully liberalised in Jun 2004. Operators free to grow fleet size and adjust taxi fares. In FY2005, SMRT Taxis fleet size increased by 1,000 cabs or 50% to 3,003. Previously limited to 2,000 cabs or 10% market share. Hired-out rate exceeds 90%. Continue to expand our fleet while maintaining at least 90% hired-out rate.
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Retail Achievements
Revamped retail space at 5 MRT stations in FY2005, which will contribute additional revenue of $4.0m per year from FY2006. Example: Transformed underground shopping at Raffles Place Station into Raffles Xchange life-style hub concept; retail space increased 50%.
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Then and Now

Then

Now
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Retail Achievements (contd)

To date, obtained approval to redevelop shop space at 5 more MRT stations, creating additional 3,000 sqm. Continue to work closely with authorities on other stations to create more shop space.

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Future Station Commercial Developments

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Future Station Commercial Developments (contd)

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Future Station Commercial Developments (contd)

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Advertising
There is much room to grow. Media team continues to introduce new and more creative, interactive media inventory to attract advertisers to switch from traditional media to SMRT Media.

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Engineering Consultancy, O&M

Projects carried in major cities, such as Bangkok, Manila, Taipei, Shanghai, and Nanjing. Continue to seek out opportunities outside Singapore. Our competitive advantages are: 18 years of extensive operating experience Reliability in service availability and punctuality * Cost efficiency *
* As benchmarked against 14 largest metros from NOVA and CoMET international associations.
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Business Strategy IV Increasing Shareholder Value

Management performance driven by long term financial targets and KPIs, such as EVA, ROCE, and corporate governance with primary objective to increase shareholder value. Robust dividend track record, returned more than 50% of profits to shareholders since listing.

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Rising Capital Gains

Release of Completion 1HFY05 of Raffles results Xchange and interim dividend Ex-D Release of FY05 results and final dividend

SARS period from MarApr 03

Ex-D and Impact of SARS on 1QFY04 results

Release of FY04 results and final dividend

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Summary Key Investment Highlights

Strong, Stable and Defensive Earnings from Fare-revenue Operations Supportive Government Policies on Public Transport Rail Network Expansion Offering Long-term Growth Leverage off Existing Infrastructure, providing New Nonfare Earnings Stream Overseas Expansion Opportunities in Core Competencies

Financially Sound, providing Strong Dividend Support

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THANK YOU
Visit www.smrt.com.sg/investor_relations.htm for annual reports, announcements and presentations

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APPENDIX

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Fare Revenue
Fare revenue is a function of ridership and fares. Ridership is a function of system route length, macro socio-economic factors, i.e. growth in population, social and tourist activity, employment, residential, commercial and industrial development. Fares are regulated by PTC and reviewed annually based on max. fare adjustment formula: 0.5 CPI + 0.5 WI 0.3% where 0.3 is the productivity index valid for 3 years. Relative weightage of CPI and WI is to be reviewed every 3 years.
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Train Ridership Growth

450 400 350 319 Passenger trips (m) 300 250 200 150 100 50 0 91 140
Original system fully operational in 1990 Woodlands extension (Feb 1996)

Opening of Dover (Oct 2001) & Opening of NEL (Jun 2003) Changi Airport Station (Feb 2002) Opening of Expo (Jan 2001) 403

387 367 346

390

394

391

337

278 259 244 224 206

198

FY89 FY90 FY91 FY92 FY93 FY94 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05

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History of Fare Increases

Trains/Light Rail: 1990 All fares up 10 cents 1994 2.7% (to reflect 3% GST) 1995 5.3% 1997 0.9% 2000 2.4% 2002 2.5% 2005 2.1% Buses: 1999 5% rebate on farecard top-up 2000 1.5% 2001 1.3% 2002 2.3% 2005 2.1%
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