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Investor Relations

At OKP, we believe that it is important to provide timely, objective and comprehensive information on our business and financial performance to our shareholders as part of good corporate governance. We work to ensure that our investors understand and are kept informed of our strategic directions, business operations and market environment so that they can make informed investment decisions.

To achieve this aim, we engage regularly with our investors on multiple platforms to communicate effectively with them. Our senior management and investor relations (IR) team actively keep communication channels open with the investment and financial community, and the media.

Our guiding principle in relation to our shareholders is our commitment to maximising their return on investment while maintaining excellence in our products and services. Our commitment is to create and increase long-term value for all our shareholders and investors. Indeed, we have exceeded past aspirations by establishing strong foundations, developing new capabilities and expanding our knowledge, experience and skills in order to fulfill our vision to be a leading transport infrastructure and civil engineering company in Singapore and overseas. Through this approach, OKP is able to inspire agreater future through sustainable growth in its business and delivery of stable results – to meet the expectations of its shareholders and investors.

To stay ahead as an industry leader, we diligently monitors the external business and macroeconomic environment affecting our business and responds strategically. We keep abreast of best practices by institutionalising effective management practices, with good operational procedures to enable effective and smooth practical workflow. To our staff, OKP emphasises the importance of delivering good customer service, which meets and exceeds our customers' expectations.

Practising Good Corporate Governance

As a listed company, OKP is committed to ensuring good corporate governance, whereby it manages, directs and balances the interests of its stakeholders, which include customers, employees, suppliers, business partners, investors and the general public. In the light of constantly developing requirements for better disclosure, transparency and corporate governance, the Group believes good corporate governance is essential in achieving and retaining investors' trust and confidence in OKP, as well as attracting the interest of new shareholders.

We support the pledge towards board diversity, which is an initiative for listed companies by the Singapore Institute of Directors and Singapore Exchange (SGX) this year. The pledge states:

"We, as corporations, are committed to promoting diversity as a key attribute of a well-functioning and effective Board. We believe that a diverse Board will enhance decision making by harnessing the variety of skills, industry and business experiences, gender, age, ethnicity and culture, geographical background and nationalities, tenure of service, and other distinguishing qualities of the members of the Board."

We have established processes to strengthen our corporate governance framework to allow greater transparency and fast-track management decision-making processes, and reinforce management oversight. One of the ways the Group does this is by adopting the criteria used to score the Singapore Governance and Transparency Index (SGTI) ranking for SGX companies administered by the National University of Singapore Business School for Governance, Institutions and Organisation, CPA Australia, and the Singapore Institute of Directors.

Currently in its eighth year, the SGTI score uses an enhanced framework with an updated section on stakeholder engagement. It has a total of five assessment areas - board responsibilities (35 points), rights of shareholders (20 points), engagement of stakeholders (10 points), accountability and audit (10 points), and disclosure and transparency (25 points) – which add up to a base core of 100 points.

According to a Business Times report on 4 August 2016, OKP's 2016 ranking is 37, up from its 2015 ranking of 53. The Group's overall SGTI score in 2016 was 80, an improvement from the SGTI score of 69 in 2015. The SGTI results were based on a study of 631 companies which released their annual reports by 31 May 2016. Thus, it can be seen that OKP has strengthened its corporate governance.

We also aim to proactively engage the investment community and demonstrate greater transparency to shareholders, investors and other interested parties so that they are being kept up-to-date on corporate developments and able to make well-informed decisions with regard to their investments. We believe that this transparency contributes greatly towards a better understanding of the Group and its activities, and allows the investing public to assess how well the company is performing.

As a responsible organisation which is committed to good corporate governance, the Group fully supports the Corporate Governance Week, which is organised annually by the Securities Investors Association (Singapore). Its focus on building and implementing excellence in corporate governance resonates with the way the Group manages its business and how it communicates with its shareholders. The 7th Corporate Governance Week with the theme "Change & Innovation in Governance" was held from 26-30 September 2016 with OKP representatives participating in the event.

Investor Relations Policy

We have a clear IR policy, which is to ensure fair, open and ethical business dealings with all our stakeholders. We make certain that OKP discloses relevant and material information according to these basic principles and in accordance with the SGX's rules. At OKP, we are proactive in providing shareholders and other parties in the financial markets with equal and simultaneous information about matters that may influence the movement of our share price.

We have been well recognised for our excellence in IR and commitment to good corporate governance. This is evident by the numerous awards and accolades which the company has won in recent years, namely:

- Runner-up in the Most Transparent Company Award for Construction and Materials; and Mainboard Small Caps categories at the Securities Investors Association (Singapore) (SIAS) 16th Investors' Choice Awards 2015;

- Best Investor Relations Award (Gold) in the "Companies with less than $300 million market capitalisation" category at Singapore Corporate Awards (SCA) 2015;

- Merit for the Singapore Corporate Governance Award under Mainboard Small Caps category; and runner-up for the Most Transparent Company Award in the Constructions and Materials category at SIAS 15th Investors' Choice Awards 2014;

- Best Investor Relations Awards (Bronze) in the "Companies with less than $300 million in market capitalisation" category at SCA 2013;

- Winner of the Most Transparent Company Award under Mainboard Small Caps category at SIAS 14th Investors' Choice Awards 2013;

- Winner of the Most Transparent Company Award under Mainboard Small Caps category at SIAS 13th Investors' Choice Awards 2012;

- Best Investor Relations Awards (Bronze) in the "Companies with less than $300 million in market capitalisation" category at SCA 2012;

- Best Investor Relations Award (Gold) in the "Companies with less than $300 million in market capitalisation" category at SCA 2009; and

- Best Investor Relations Award (Silver) in the Small Market Capitalisation category at SCA 2008.

Dividend Policy

At OKP, we do not have a formal dividend policy. The form, frequency and amount of dividend payable on our shares will depend on our financial position, results of operations, capital needs, plans for expansion, and other factors as our Board of Directors may deem appropriate.

We have maintained a dividend payout of 12.5 per cent to 47.8 per cent over the past five years.

ENGAGING ACTIVELY WITH SHAREHOLDERS

We recognise the importance of engaging and communicating effectively with shareholders, investors and other stakeholders, especially in the framework of constantly evolving demands for better disclosure, transparency and corporate governance. To achieve this aim, we utilise multiple communication platforms to share and facilitate communications with existing and potential investors, financial analysts and the media. These channels include group briefings to analysts, investors and the media; one-to-one meetings with shareholders and potential investors; and the investor relations section of our corporate website. Some of our activities include the following:

Annual General Meeting

One of the most important channels to communicate with investors is the annual general meeting (AGM), which is held every April. Besides providing an opportunity for investors to bring up concerns and seek clarification, the AGM also enables the Board of Directors and senior management team to interact and respond directly to them. All Board members attend and answer questions from shareholders relating to the past, current and future directions of the Group's business, explain decisions made and address any concerns raised. The company takes full advantage of the AGM to brief shareholders of OKP's latest developments and provide an opportunity for shareholders to ask questions and vote on the resolutions being tabled. All directors are expected to attend the AGM, especially the Chairpersons of the Audit, Nominating and Remuneration committees. Shareholders may also submit written questions relating to the statutory audit report and we will respond in a timely manner to their questions.

Announcements Of Corporate Developments

We keep our investors up-to-date on the Group's developments by issuing timely announcements on new contracts, strategic developments, financial results and other important information through the SGXNET website, press releases, email alerts and OKP's investor-friendly website.

Our investor relations website is a key channel through which we broadcast our news to the investment community. It is a resource for corporate, financial and stock information, and announcements of significant business developments. It also houses OKP's quarterly results and annual reports. Since 2003, our website has featured webcasts comprising videos of full-year results messages plus presentation slides.

All OKP's announcements are posted immediately on its website, following its release to the SGX to ensure fair, equal and prompt dissemination of information. Thus, all shareholders and investors can keep track of the Group's latest business developments quickly and effectively.

Analyst And Media Briefings

During the release of OKP's quarterly results, the senior management team avail themselves to meet with analysts to answer their questions and address any concerns. Outside of the financial results announcement periods, where necessary and appropriate, the senior management team would also meet analysts and fund managers, who seek to understand the Group's operations better. Where appropriate and when opportunities arise, we also conduct media interviews to give shareholders and the public deeper insights into our business and management thinking. In addition, we have also conducted tours to some of our facilities for interested analysts and the media.

The Group was featured in various newspapers, journals, magazines and broadcast media. These included The Business Times, Lianhe Zaobao, The Straits Times, The Edge Singapore, Singapore Business review, Today Online, Shares Investment, Biz Daily Online, Reuters, Channel NewsAsia, High Net Worth, BT Invest, i3investor.com and Inside Invest magazine. For example, Lianhe Zaobao featured an article on OKP with the heading "建路造桥治水50载" on 11 December 2016. It discussed OKP as a listed company with 50 years of infrastructure construction expertise, recounted OKP founder Mr Or Kim Peow's entrepreneurial journey and Group Managing Director Mr Or Toh Wat's career in the company.

Another published article "This fight is everybody's business" was featured in the Business Times on 19 September 2016. In the article, Group Managing Director Mr Or Toh Wat was one of 11 industry leaders, who gave their views on the impact of Zika in Singapore.

Annual Report

Our annual report is an important and vital communication tool for stakeholders and other interested parties. We therefore take great care to ensure that this publication gives a clear and accurate picture of our activities during the year as well as our developments, policies and strategic direction in the near future. The annual report and accounts and the notice of AGM are sent to shareholders at least 20 working days before the meeting.

Our efforts have paid off and OKP's annual reports have won numerous awards. These include:

- Best Annual Report Award (Gold) in the "Companies with less than $300 million in market capitalisation" category at Singapore Corporate Awards (SCA) 2016;
- Best Annual Report Award (Gold) in the "Companies with less than $300 million in market capitalisation" category at SCA 2013;
- Best Annual Report Award (Gold) in the "Companies with less than $300 million in market capitalisation" category at SCA 2010;
- Best Annual Report Award (Silver) in the "Companies with less than $300 million in market capitalisation" category at SCA 2009;
- Best Annual Report Award (Gold) for SESDAQ company at the Inaugural SCA 2006 for excellent standards of corporate disclosure; and
- Second runner-up at 30th Annual Report Awards 2004 in the SESDAQ-listed companies category organised by the Institute of Certified Public Accountants of Singapore, Investment Management Association of Singapore, Securities Investors Association (Singapore), Singapore Institute of Management, Singapore Institute of Directors, Singapore Exchange Limited and The Business Times.

Communicating Online

Technology is an important and useful to reach out to our shareholders and other stakeholders. Thus, we make full use of technology by organising an annual webcast to communicate with our investors, taking questions online via an Online Management Questio-nand-Answer forum with investors through Shareinvestor.com.Through this forum, all stakeholders and other interested parties are able to email their feedback and queries to OKP's management and be assured of a timely response. Our website is regularly updated to provide the latest information on our operations and corporate developments.


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