Executive Committee Report

The Executive Committee members of The Outward Bound Trust of Hong Kong Limited (the “Trust”) submit their repor t together with the audited financial statements of the Trust for the year ended 31st December 2021.

Principal activities

The principal activities of the Trust are the provision of education and personal development training for people of all nationalities and in par ticular people from the Hong Kong Special Administrative Region.

Results and appropriations

The results of the Trust for the year are set out in the statement of comprehensive income.

Executive Committee Members of the Trust

The Executive Committee members of the Trust (“Executive Committee Members”) during the year and up to the date of this repor t were: Ms. Yuen Shan Clara Chan Ms. Man Wai Machiuanna Chu Mr. Peter Raymond Clarke Mr. David Graham (appointed on 24th June 2021) Mr. Hans Helmuth Hennig Ms. Teresa Yuk Yin Ko Ms. Deirdre Norene Lander (retired on 15th September 2021) Mr. Jonathon Glyn Lee Mr. Yat Ling Edward Jr. Ma Mr. Chris Pooley Mr. John Estmond Strickland Ms. Jean Sung Mr. Stephen Taylor Mr. Richard David Winter Mr. Jeremy Young

Pursuant to Articles 31 and 32 of the Trust’s Articles of Association, Mr. Chris Pooley, Mr. Jeremy Young, Mr. Jonathon Glyn Lee and Mr. Yat Ling Edward Jr. Ma shall return from office at the next Annual General Meeting of the Trust but shall be eligible for re-election.

Executive Committee Members’ material interests in transactions, arrangements and contracts that are significant in relation to the Trust’s business

For the year ended 31 December 2021 and the first half of 2022, an aggregate sum of HK$1,337,500 donation was contributed by the Executive Committee Members.

Other than the donation listed above, there are no transactions, arrangements and contracts of significance in relation to the Trust’s business to which the Trust was a party and in which an Executive Committee Member had a material interest, whether directly or indirectly, subsisted at the end of the year or at any time during the year. Executive Committee Members’ interests in the shares and debentures of the Trust or any specified undertaking of the Trust At no time during the year was the Trust a party to any arrangement to enable the Executive Committee Members to hold any interests in the shares, or debentures of, the Trust or its specified undertakings.

Management contracts

No contracts concerning the management and administration of the whole or any substantial part of the business of the Trust were entered into or existed during the year.

Business review

Performance Review

Despite the first half of the year being significantly impacted by the pandemic and associated operating restrictions, the Trust ended the year in a relatively strong financial position. In response to the social distancing restrictions and school closures, and the inevitable impact on revenue which came on the back of the operating challenges of 2020, the Executive Committee committed to a fundraising campaign with the aim of raising $15 million. This resulted in extensive support from a range of donors, enabling us to maintain our operations through the most challenging period perhaps and meet demand later in the year as restrictions eased.We also took this opportunity to ensure that, in consultation with the respective donors, historic designated funds continued to be utilized to best support the activities of the Trust. Of particular note is the donation of $3.5 million specifically for the required refit of the Spirit of Outward Bound, allowing the vessel to meet regulatory requirements and serve participants for the foreseeable future. As pandemic restrictions eased, demand for outdoor learning was strong and participation in our courses rebounded quickly, limited only by our staff headcount. The model of operations was amended to ensure compliance with both government regulations and social expectations, with the duration of some courses reduced and the number of participants staying overnight reduced in line with relevant policies. Income for the year ended 31 December 2021 was HK$19,814,655 reflecting an increase of 302% over the prior year, and the Trust recorded a surplus for the year of HK$5,440,014.

Government subsidies

Business subsidies of HK$300,000 were granted from the Hong Kong SAR government under Sports and Recreational Sites Scheme. The Trust has complied with all relevant regulation and conditions in relation to these subsidies, which are recognised in the statement of comprehensive income for the year ended 31st December 2021.

Environmental Protection

During the year an Environmental Working Party was convened in order to identify specific actions to implement the Outward Bound International Environmental Charter. This has resulted in enhanced recycling processes, allowing a wider range of items to be collected for recycling, and the quantities reported and monitored more accurately. This group has also laid foundations for the incorporation of further environmental education activities within program delivery, in line with the OBHK Educational Framework and expected guidance from Outward Bound International. OBHK continues to measure the impact of our work on participant awareness and connection to the environment through the Outward Bound Outcome Survey, the results of which will be available as operations return to capacity. During the year more PV solar panels were installed on Bradbury House.

Compliance with laws and regulations

The Trust is committed to making every effort to comply with all relevant laws and regulations. The Executive Committee Members are not aware of any non-compliance with the relevant laws and regulations which may have a significant impact on the Trust.

Principal Risks and Uncertainties

Despite the impacts of the pandemic being diminished and the relaxation of social restrictions, ongoing uncertainty regarding rebound in case numbers and government response remain a risk to return to full operations. As such, management continue to closely manage headcount to meet potential course demand while maintaining focused on the risks associated with increased expenditure while the risk of forced closure remains. As with all organisations, the risk of covid infections among the operations staff, who live on site in shared accommodation, also presents a potential risk to operations given the required isolation period. Any such significant loss of staff capacity might impact delivery and revenue. Policies have been introduced to manage the potential of such an incident.

Permitted indemnity provisions

A not-for-profit organisation liability insurance policy was in place during the year to protect the Executive Committee members of the Trust (whether made by the Trust or otherwise) or an associated company (if made by the Trust) against potential costs and liabilities arising from claims brought against the Executive Committee members.

Subsequent events

Details of significant subsequent events of the Company are set out in note 55 to the financial statements.

Auditor

The financial statements have been audited by PricewaterhouseCoopers who retire and, being eligible, offer themselves for re-appointment.