ST Engineering Annual Report 2021

CORPORATE PERFORMANCE FINANCIAL
OVERVIEW REVIEW SUSTAINABILITY REPORT
CORPORATE PURPOSE
Harness technology and innovation to enable

a more secure and sustainable world
It is the unifying purpose that aligns everything we do.
GROUP ASPIRATION
Become a global technology, defence and

engineering powerhouse
It is the singular winning long-term goal that all our businesses follow.
CORE VALUES
Integrity Value Creation Courage Commitment Compassion
Our Core Values guide every aspect of our business and are embedded in our culture – from the
people we hire, to the way we work with one another and how we engage our partners and customers.
Read more
on our website
ST Engineering is a global technology, defence

and engineering group with a diverse portfolio Contents
of businesses across the aerospace, smart city,
defence and public security segments.
CORPORATE OVERVIEW
Driven by technology and innovation, we create Financial Highlights 02
people-centric, multidisciplinary and smart Letter to Shareholders 04
engineering solutions for our customers in the
Corporate Information 17
commercial, government and defence segments.
Board of Directors 18
Headquartered in Singapore, we employ about Directors Seeking Re-election 25
23,000 people across our network of subsidiaries Group Executive Committee 28
and associated companies in Asia, Europe, the
Middle East and the U.S.
PERFORMANCE REVIEW
We rank among the largest companies listed on Technology and Innovation 30

the Singapore Exchange and are a component Operating Review & Outlook
stock of the FTSE Straits Times Index, MSCI → Commercial Aerospace 34
Singapore, iEdge SG ESG Transparency Index and → Urban Solutions & Satcom 40
iEdge SG ESG Leaders Index.
→ Defence & Public Security 46
Financial Review 52
Investor Relations 62
Awards 64
SUSTAINABILITY
Board Statement 66
Environment 74
Social 80
Governance 95
→ Corporate Governance Report 96
FINANCIAL REPORT
Directors' Statement 122
Independent Auditor’s Report 137
Consolidated Income Statement 144
Consolidated Statement of 145
Comprehensive Income
Financial Position
Changes in Equity
WHERE YOU SEE THESE ICONS Cash Flows
Notes to the Consolidated 154
This directs you to further Financial Statements
information online
Statement of Financial Position 274
of the Company
This points to related
information in the report Notes to the Statement of 275
Financial Position of the Company
This directs you to Shareholding Statistics 279
an external video SGX Listing Rules Requirement 281
ST ENGINEERING ANNUAL REPORT 2021 01

FINANCIAL HIGHLIGHTS
→ ORDER BOOK → REVENUE
$19.3b 25% $7.7b 7.5%

2020: $15.4b 2020: $7.2b
→ EBITDA → EVA
$1,071.7m 10% $313.0m 9%

2020: $975.0m 2020: $286.4m
→ EARNINGS PER SHARE → DIVIDEND PER SHARE
18.30¢ 9% 15.0¢ –
2020: 16.74¢ 2020: 15.0¢
→ TOTAL SHAREHOLDERS RETURN → RETURN ON EQUITY
2.4% 1.5 pts 23.6% 0.8pts

2020: 0.9% 2020: 22.8%
→ REVENUE BY CUSTOMER LOCATIONS
Europe
U.S.
16%
20% Asia
58%
Others
6%
Amounts may not add up due to rounding.

FINANCIAL HIGHLIGHTS
→ REVENUE BY TYPE ($b)
Commercial Defence
2021 4.8 2021 2.9
2020 4.6 2020 2.6
Refers to revenue by product and services type.
→ REVENUE BY SEGMENT (%) → EBIT BY SEGMENT (%)
2021 2021
2020 2020
27
32
14
5
33
53 52
81
4
15
69
15
$7,158m $7,693m $596.4m $673.6m

2020 2021 2020 2021
($m) ($m) ($m) ($m)
Commercial Commercial
Aerospace 2,332 2,465 Aerospace 80.9 181.9
Urban Solutions Urban Solutions
& Satcom 1,101 1,191 & Satcom 31.4 25.8
Defence & Defence &
Public Security 3,725 4,038 Public Security 484.0 466.0
→ PROFIT BEFORE TAX → NET PROFIT
$637.6m 19% $570.5m 9%

2020: $534.4m 2020: $521.8m

LETTER TO SHAREHOLDERS
→ KWA CHONG SENG

Chairman
Non-Executive Independent Director
→ VINCENT CHONG SY FENG

Group President & CEO
Executive Director
Dear Shareholders
As a result of the ongoing COVID-19 pandemic, 2021 The proposed TransCore acquisition illustrates the
was a challenging year for ST Engineering, as it was for strength of our resources and our desire for growth.
most companies around the world. However, 2021 was Well-considered acquisitions of strategic assets
also a year of opportunity for the Group. will help us emerge stronger in the post-pandemic
world. Over time, the Group will achieve its aspiration
Our strategy was consistent and clear – we focused of becoming a global technology, defence and
on creating long-term sustainable growth by investing engineering powerhouse, one that improves the lives
in our people, our capabilities, and our business, both of people around the world, supports sustainability,
organically and by acquisition. Our commitment to while at the same time ensuring our shareholders
invest across business cycles and to seek growth in are rewarded.
select domains, as well as our strong balance sheet,
afforded us the ability to evaluate M&As even in the DELIVERING ON OUR PLAN:
midst of the pandemic. 2021 FINANCIAL RESULTS
Nowhere is this clearer than in our proposed This year, we are presenting our financial results based
acquisition of TransCore for US$2.68b (S$3.62b) in on our new organisation structure. We previously
cash in October 2021. This is the biggest acquisition in highlighted that the goal of this new structure is to
our history. It will accelerate growth in our Smart City sharpen our focus on our customers through more
business, especially in the Smart Mobility segment. effective organisation and deployment of resources.

Under this new structure, the three reportable The diversity of our business
business segments are: Commercial Aerospace,
Urban Solutions & Satcom, and Defence & Public portfolio and our focus on
Security. We appreciate that shareholders may
take some time to get used to this new reporting
seizing growth opportunities,
framework. However, we will ensure that we coupled with productivity and
deliver meaningful reporting output to enable our
shareholders to understand our performance better.
cost management measures,
helped us to achieve this
While 2021 was the first year of operation for our new
organisation, we already benefitted from how we balanced set of results in 2021.
are now structured to accelerate the development
of deeper domain expertise and enhance the
performance of our businesses. We are more focused
than ever on turning ST Engineering into a sharper With this, the Group generated earnings per share
and more agile organisation that is highly attuned and of 18.3 cents and a return on equity of 23.6%. The
responsive to evolving customers’ needs. diversity of our business portfolio and our focus on
seizing growth opportunities, coupled with productivity
In 2021, we delivered Group revenue of $7.7b, a 7.5% and cost management measures, helped us to achieve
increase over the year before, contributed by all our this balanced set of results. This performance was
business segments. Group EBIT grew 13% year-on- also lifted by the stronger underlying performance of
year (y-o-y) to $673.6m from $596.4m. This more our businesses and their resilience amid continued
than offsets the lower government support, which we pandemic challenges.
had expected and guided for it to be lower than the
$350m received in 2020. The reduction in government Strong Underlying Performance from
support for 2021 was $149m. Business Segments
Revenue for the Commercial Aerospace segment
Also consistent with our guidance, the combination was $2.46b, a 6% increase y-o-y from $2.33b,
of cost savings, net of reinvestments in growth areas notwithstanding a strong 1Q2020 prior to the impact
and partial business recovery more than offset of COVID-19 being felt. This segment registered strong
the reduction in government support. Excluding y-o-y quarterly revenue growth from the second
government support, Group EBIT for 2021 improved by quarter of 2021, and sequential quarterly revenue
93% y-o-y, reflecting a strong underlying performance growth across 2021.
amid continuing pandemic challenges.
The revenue growth was contributed by Aerostructures
& Systems, while Aerospace MRO continued to be
impacted by the subdued aviation sector. Aviation
Asset Management’s AUM increased by 30% to
While 2021 was the first year of US$1.05b (S$1.4b) as at end December 2021 from
operation for our new organisation, US$813m (S$1.1b) as at end December 2020. The
Commercial Aerospace segment’s EBIT grew 125%
we already benefitted from how we y-o-y to $182m from $81m as a result of higher
are now structured to accelerate revenue and cost savings initiatives.
the development of deeper Although the pandemic headwinds faced by

domain expertise and enhance the our Commercial Aerospace business persist, we
continued to invest in the business to position
performance of our businesses. ourselves to thrive when recovery gets underway.
This is why we went ahead with the expansion of our

The Group posted a Profit before tax (PBT) of $637.6m, airframe MRO facility in Pensacola, U.S., which has an
19% higher than the $534.4m the year before. Group existing two-bay widebody hangar. When completed, the
Profit attributable to shareholders (Net Profit) grew expansion will add three hangars and associated support
9% y-o-y to $570.5m from $521.8m. Net Profit growth shops. We also ramped up the production of A320neo
was lower than PBT growth due to the unfavourable tax nacelles, our biggest nacelle programme, to keep pace
effect of lower non-taxable government grants received with Airbus’ production rate as the OEM had called on
in 2021 compared to 2020. suppliers to prepare for the production of 64 aircraft

Although the pandemic headwinds Our Satcom business was affected by the global
chip shortage, and its aviation and maritime cruise
faced by our Commercial customer segments remained challenged from
Aerospace business persist, we the COVID-19 impact. However, we continue to
hold a positive long-term view of the satellite
continued to invest in the business communications industry. As outlined previously,
the launch of next-generation medium earth orbit
to position ourselves to thrive (MEO) and low earth orbit (LEO) constellations
when recovery gets underway. presents numerous opportunities for us, and we
will continue to push technological boundaries
with our leading-edge satcom ground infrastructure
solutions.
per month by mid-2023. At the same time, we expanded
our Airbus freighter conversion (P2F) facilities across Revenue for the Defence & Public Security
our global network in view of the strong demand for segment was 8% higher at $4.04b, from $3.72b
converted freighters as e-commerce and air cargo a year ago, with contribution from all its sub-
volumes expand globally. Besides Dresden, Germany segments of Digital Systems & Cyber, Land
and Singapore, new conversion sites include San Systems, Marine and Defence Aerospace. Its
Antonio, U.S., which was set up in end-2021, and Mobile, EBIT was down 4% y-o-y to $466m from $484m
U.S. and Shanghai, China that will be set up in 2022. due to lower government support of $137m, but
Demand for P2F was also supported by reduced ‘belly this was substantially offset by higher revenue
capacity’ because there were fewer passenger planes and cost savings.
in operation.
Our defence business made good progress
To capture further growth, we entered into a new internationally. We collaborated extensively,
business in converted freighter aircraft leasing through leveraging partnerships — including with local
a JV with Temasek. ST Engineering will provide the defence champions of our target markets — to
associated maintenance, repair and overhaul service deliver defence solutions that enhance the
options for these aircraft, and be the asset and lease operational readiness of our customers.
manager to the JV, consistent with our Aviation Asset
Management’s business model. Together with Oshkosh Defense, we were selected
to build two Cold Weather All-Terrain Vehicle
The Urban Solutions & Satcom segment posted prototypes, based on the all-terrain capability of
revenue of $1.19b, up 8% y-o-y from $1.10b, our Bronco family of vehicles for the U.S. Army.
contributed by higher Smart City project deliveries, At the time of writing this letter, we had moved on
though partially offset by the impact of global from the successful prototype testing to the next
semiconductor chip shortages on Smart City projects phase of bidding for the production. We expect
and Satcom product deliveries. Its EBIT was $26m, to know the outcome in mid-2022. Separately,
down 18% y-o-y from $31m largely due to $8m of we are contracted by Abu Dhabi Ship Building
TransCore-related M&A transaction expenses, lower PJSC to design four Falaj 3-class Offshore Patrol
government support and the impact of semiconductor Vessels for the UAE Navy, and to provide platform
chip shortages. This was partially offset by higher equipment and technical assistance in the vessel
revenue and lower operating expenses. construction. Over in the U.S., we received a
contract from the U.S. Navy to build the second
This segment continued to be impacted by the Polar Security Cutter.
pandemic and project executions outside of
Singapore were disrupted by travel restrictions. In terms of Group revenue breakdown by business
Nevertheless, our Urban Solutions business was able segment, Commercial Aerospace, Urban Solutions
to make some headway in growing scale with our & Satcom and Defence & Public Security
existing customers and with new market penetration. accounted for 32%, 15% and 53% respectively.
For example, our Mobility Rail business made inroads By geography, customers from Asia (including
into cities like Brisbane, 10th of Ramadan in Greater Singapore) accounted for 58%, and customers
Cairo, and Bucharest. Likewise, the growing demand from the U.S. and Europe accounted for 20%
for IoT, smart utilities and infrastructure expanded and 16% respectively, with the remaining 6%
business opportunities, such as the deployment of our contributed by customers from the rest of the
Smart Street Light control solution to connect more world. By products and services type, Commercial
than 300,000 streetlights in Rio de Janeiro. sales was $4.8b and Defence sales was $2.9b.

→ TOTAL CONTRACT WINS The Board of Directors has

$11.7b recommended a final dividend of
10.0 cents per share, bringing total
dividend for 2021 to 15.0 cents
→ ORDER BOOK per share, which represents a
$19.3b dividend yield of 4.0%.
Robust Order Book Driven by Strong Contract Healthy Operating Cash Flow
Win Momentum In 2021, we increased capital expenditure to about
Complementing our results, we achieved strong $320m after pulling it back for a year (was $196m
contract wins and a record order book in 2021. in 2020) to keep pace with business activities and
We have enhanced the way we disclose contract to support growth demand. These included the
values to include the values of confidential projects not expansion of our meltblown and mask production
previously released. This will provide investors with a facilities, the purchase of two aircraft and two engines
more complete view of our new contract wins, without for our Aviation Asset Management business, as well
compromising project confidentiality. In 2021, we as overall IT infrastructure enhancement.
secured $11.7b in new contract value, compared
to the new contract values of $8.2b for 2020 We generated a very healthy operating cash flow
(previously reported as $5.7b) and $9.5b for 2019 and do not expect any issues with our balance sheet
(previously reported as $8b). This means that our strength in financing the proposed acquisition of
businesses won more contracts in 2021 compared TransCore. Our credit ratings remain high. Following
even to pre-COVID 2019, pointing to a good business our announcement of the TransCore acquisition,
recovery momentum. Moody’s and S&P continued to rate us highly at Aaa
and AAA respectively. The Group held $816m in cash
With these new contracts, and after adjustments of and cash equivalents as at end December 2021.
revenue delivery, the Group ended the year with a robust
order book of $19.3b (was $15.4b at end-2020), providing Shareholder Returns
a good pipeline of revenue visibility. In 2022, the Group The Board of Directors has recommended a final
expects to deliver about $6.6b from the order book. dividend of 10.0 cents per share to shareholders for
approval at the forthcoming Annual General Meeting.
We expect the delivery of our strong order book, our Together with the interim dividend of 5.0 cents per
various business initiatives and further business recovery share paid to you in August 2021, the total dividend
to position us well for 2022 business performance. This is for 2021 will be 15.0 cents per share. This translates
an important starting point, as 2022 is the first execution to a dividend yield of 4.0%, computed using the
year and foundation for our next phase of growth, which average closing share price of the last trading day of
we will discuss later in this letter. 2021 and 2020.
Disciplined Cost Management Recognising that returning value to shareholders is an

We have always taken a disciplined approach to cost important management objective, the Group has been
management. This helped us build resilience over the distributing profits to shareholders by paying dividends
years, allowing us to weather the business challenges based on sustainable business results.
brought about by COVID-19.
In keeping to this commitment, the Board of Directors
Our operating expenses for 2021 were 4% lower than has approved a dividend policy to declare dividends
2020 and 5% lower than 2019. Our unit operating every quarter instead of twice a year previously. For
expenses (per unit revenue) in 2021 declined by FY2022, the plan is for dividends to be paid four times
more than 10% compared to 2020 and was 3% lower a year, at 4.0 cents per share each time, resulting in
than 2019. This performance was a result of the total dividends of 16.0 cents per share payable for
Group’s continued structural cost and operational FY2022 (compared to the 15.0 cents per share paid or
efficiency capture. payable for FY2021).

This change from declaring dividends semi- We see TransCore as an

annually to quarterly will provide shareholders with
a more frequent income stream. Notwithstanding excellent fit for our Smart
the new dividend policy, we continue to have the
financial strength and flexibility to invest in growth
Mobility business. With
opportunities and to align with our strategic goals to TransCore, ST Engineering
achieve our 2026 targets, which we will touch on in
the later part of this letter.
will have access to an extensive
Smart City channel in the
Read our North American market and
an enhanced suite of
Operating Review & Outlook
Smart Mobility solutions.

ACCELERATING SMART CITY GROWTH
We have been focused on driving growth in Smart

City, across our targeted segments in Smart Mobility,
Smart Environment and Smart Security. To accelerate
growth, we are consistently on a lookout for potential
acquisition targets that fit our strategy.
In early 2021, we made a competing bid to acquire We thank our shareholders for approving this
a U.S. company in the intelligent transportation acquisition. Meanwhile, as we write this letter, we are
solutions and payments industry, which is expecting this proposed acquisition to close by the
complementary to our Smart Mobility business. first quarter of 2022.
However, that did not come to fruition. As with any
M&A transaction, there were many variables; the Our plan is for TransCore to be part of our Smart
key was we had the discipline to know when to walk Mobility business line and for its financials to be
away. The discussion was terminated when the target subsumed under the Urban Solutions & Satcom
company accepted another offer. business reporting segment. We expect TransCore to
be cash flow positive from the first year and earnings
Later in the year, when the TransCore opportunity accretive from the second year to the Group post
came up, we evaluated it and decided that it fitted acquisition. In time to come, we will provide updates
our strategy and was attractive on many fronts. At on the transition of TransCore into the Group.
US$2.68b (S$3.62b), the acquisition translates to an
EV/EBITDA multiple of 16.2 times after accounting We will continue to search for growth opportunities
for tax benefits. This is well within the range of both and are constantly on the lookout to acquire good
precedent transactions and the market valuation of companies that are a strategic fit at a reasonable price.
comparable public listed companies in this space. We are cognisant that M&As need to be strategic,
synergistic and value accretive.
We see TransCore as an excellent fit for our Smart
Mobility business. Its road transportation solutions
will enhance our suite of Smart Mobility solutions.
In addition, its leading position in the end-to-end
electronic toll collection and congestion pricing
segments in North America represents a new business
for ST Engineering. With TransCore, ST Engineering
will also have access to an extensive Smart City
We will continue to search
channel in the North American market. for growth opportunities,
including acquisitions
Learn more about
TransCore
that are a strategic fit at
a reasonable price.

DRIVING OUR NEXT PHASE OF GROWTH: These are strategic business opportunities for the
FIVE-YEAR PLAN (2022-2026) Group. As a result, we have overlaid our strategic
objectives with our ambition to grow the digital business
We are mindful of the short-term pressure to deliver comprising Cloud, AI Analytics and Cyber — the value
results, yet at the same time, we will stay focused in of which was demonstrated during the pandemic.
the execution of our strategic plan for greatest impact
in the long term. Recent trends and developments We actively evaluated what ‘emerging stronger from
have reinforced, and indeed, accelerated the strategy the pandemic’ means to the Group, and we have set
that we first shared in 2018. specific financial targets: By 2026 (from 2020 as the
base year), we expect revenue for our Commercial
In November, we presented our next five-year plan Aerospace business to exceed $3.5b, and our Smart
(2022-2026). Our strategy to achieve sustainable City businesses to more than double to $3.5b. In
growth is built around these strategic areas: addition, we are driving growth in digital businesses
and we expect the Cloud, AI Analytics and Cyber
1. Ride the recovery in Commercial Aerospace businesses to triple to more than $500m. Along with
2. Drive growth in Smart City other core businesses, we expect to drive total Group
3. Expand International Defence business revenue to more than $11b, growing at a CAGR of two
4. Strengthen core businesses to three times global GDP growth rate, with net profits
growing in tandem with revenue.
The business environment today, however, is dynamic
and ever evolving. COVID-19 has brought about digital Read about our
transformation and wider sustainability adoption. five-year plan
Five-year Targets (2022-2026)

Annual revenue to grow at 2 to 3 times global GDP growth rate to >$11b1
Sustainability-linked
revenue to grow
to >$3b
Grow other
core businesses
Commercial
Aerospace to Digital business - Cloud, AI
achieve >$3.5b1 Smart City revenue to Analytics, Cyber revenue to
in revenue more than double to $3.5b1 triple to >$500m
Net profits to grow in tandem with revenue
Note:
1
2020 Base Year; TransCore closes in 1Q2022.

Undergirding this target is a greater emphasis on To sustain our technology and engineering core,
moving forward with our ESG agenda. We have we will continue to spend up to 5% of our annual
targeted to grow sustainability-linked businesses. revenue on R&D, of which up to 75% will be on digital
We will pursue businesses that contribute towards the technologies. Additionally, we continue to strengthen
reduction of GHG emission, that solve urban and city our competency framework for engineering and
issues and contribute towards the circular economy. technology staff, to better develop relevant skills,
We will also look at new opportunities such as in novel abilities and support career progression.
materials, products and system solutions.
We see the pursuit of this ESG agenda as both

a business opportunity and as our responsibility
as a corporate citizen. We are committed to a net We now have an organisation
zero economy and we will halve our absolute GHG structure that will better serve
emissions by 2030 (using 2010 as the base year).
In addition, we are now a signatory to the UN Global our customers and that is also
Compact and we are committed to its Ten Principles.
Furthermore, we have expanded our reporting, based
more agile to meet business
on the Global Reporting Initiative (GRI), to start challenges and to pursue the
including disclosures against frameworks outlined
by the Task Force on Climate-Related Financial
growth paths we have laid out.
Disclosures (TCFD) and Sustainability Accounting
Standards Board (SASB).
As you can see, we remained steadfast in advancing
and meeting our strategic objectives. Our targets
Read our were developed based on vigorous reviews and
ESG Performance for FY2021
assessments of how we can continue to deliver
sustained, meaningful progress and results. We are
intentional in the pursuit of our goals and therefore
Our strategy execution sees continuous focus we have structured ourselves for success. We now
on disciplined capital allocation, as well as cost have an organisation structure that will better serve
and efficiency drive. Consistent with our efforts in our customers and that is also more agile to meet
the last few years, we will continue to streamline business challenges and to pursue the growth paths
and rationalise our business portfolio to sharpen we have laid out.
our management focus, and reallocate capital to
strategic and growth businesses that can yield us BOARD RENEWAL
better returns. Concurrently, we will keep investing
resources to strengthen our key assets and In 2021, we made changes to the Board as part
capabilities: our people and culture; and our of board renewal. In August, we welcomed Tan Peng
global marketing and customer network. Yam, as a non-independent, non-executive Director,
and Teo Ming Kian as an independent, non-executive
Director. In October, Kevin Kwok Khien joined as an
independent, non-executive Director, and COL Cai
Dexian was appointed as the Alternate Director to
LG Ong Su Kiat Melvyn, in place of COL Xu Youfeng.
Quek Gim Pew, a director since August 2016, resigned

To sustain our technology in August from the Board as a non-independent and
non-executive Director. During his term, he served
and engineering core, we will as Chairman of the Research, Development and
continue to spend up to 5% Technology Committee, and as a member of the
Risk and Sustainability Committee.
of our annual revenue on
R&D, of which up to 75% will We thank our directors for their invaluable
contributions over the years and we welcome those
be on digital technologies. who have just joined us.

LEADERSHIP MOVEMENT
In 2021, we had leadership changes at the Executive

Committee (EXCO) level. We made several
appointments and movements as part of renewal
at the senior management level too.
EXCO member Lim Serh Ghee retired from the Group

in October. We are grateful for his contributions as an
EXCO member and as Group Chief Operating Officer,
as well as for his role in shaping and driving the growth
of our aerospace business. We also welcomed Tan
Lee Chew, who joined in September as a member
of the EXCO, and took on the newly created role of
President Commercial.
OUR APPRECIATION
As we continue to sharpen our focus, and grow in scale

and scope, ST Engineering will continue to be a Group
with global strengths across multiple industries – in
aerospace, smart city, defence and public security.
While our short-term goals have been impacted by the

pandemic and cannot be realised sooner, we have the
vision, the roadmap and the wherewithal to achieve
long-term sustainable growth. Most of all, we have our
people – our most valuable asset – who will continue
to be key to our success. Despite the unprecedented
challenges they faced during the pandemic, they
rose above every single one of them. The Corporate
Excellence & Resilience Award given out by the
Singapore Corporate Award in 2021 was a recognition of
the Group – for staying tenacious and committed to our
roles despite the difficult circumstances that prevailed.
This spirit will continue to drive the Group forward
and shape ST Engineering to become a truly global
technology, defence and engineering powerhouse.
We thank all our shareholders, customers and

employees for their unstinting support over the years
and for continuing the exciting journey with the Group
as we move towards a more sustainable, smarter and
brighter future ahead.
Yours sincerely,
KWA CHONG SENG VINCENT CHONG SY FENG

Chairman Group President & CEO
Non-Executive Executive Director
Independent Director
28 February 2022

致股东的信
尊敬的股东,
2021年新型冠状病毒肺炎的持续蔓延和变种造成全球经落实我们的目标：2021年财务业绩
济复苏屡次挫败，许多公司仍萎靡不振,对ST Engineering
来说也是颇具挑战的一年。
然而，2021年对集团来说也是这一年，集团的财务业绩以重组后的架构来呈现。
重组后
充满机遇的一年。的三大主要业务包括：商业宇航、智慧城市和卫星通信，
以及国防与防卫。
我们的战略维持一致且明确——专注于投资员工的技术与
思维提升，开展自身能力建设和业务发展，创造长期的可 2021年虽是集团新组织运作的第一年，我们已从新的架构
持续增长,并通过收购提高我们的竞争优势。
我们承诺为长中得到收获不但深层专业领域得到加速的发展，业绩表现
期增长进行投资，并在选定的领域里寻求增长而我们强大也得到提高。领导团队现在更专注于将集团打造成一个更
的资产负债表将让集团在疫情期间继续提供评估并购的敏锐、更灵活的组织，以高度适应且响应不断变化的客户
能力。需求。
这一点明确体现在我们2021年十月以26.8亿美元 (36.2亿 2021年，集团收入报77亿元，与前一年相比增长了7.5%，

新元) 现金收购TransCore的提案中。
这是我们有史以来最收入增长来自全体业务部门。
集团息税前利润从5.96亿元
大的一次收购。
这项收购将加快我们智能城市业务的增长，增长至 6.74亿元，年增长率达到13%，远远抵消了政府补
特别是在智能移动领域的增长。贴的锐减 (1.49亿元), 兑现了我们一年来給投资界的指引。
TransCore收购提案证明了集团的资源实力和增长渴望。通过节约成本、增长领域的扣除再投资，以及部分业务
深谋远虑的战略资产收购将助我们在后疫情世界中变得恢复，种种途径来抵消政府补贴减少带来的不利影响。
更强大。
未来，我们将实现集团的愿景: 成为一个全球若不考虑政府补贴，2021年集团息税前利润年增长达到
科技、国防与工程业的佼佼者。在过程中，我们将不断 93%，体现了集团在疫情的持续挑战下仍具有强劲的表现。
投资，加强我们有效推动世界可持续发展的能力，利用科技
解决世界上最迫在眉睫的问题，从而帮助我们的客户应付集团公布的税前利润为6.38亿元，比前一年的5.34亿元
人口都市化、气候变化等问题带来的影响。与此同时，高出19%。
集团股东应得利润 (净利润) 同比增长9%，
我们将继续创造更高的股东价值。从5.22亿元增至5.71亿元。
净利润增长低于税前利润增长，
原因是2021年收到的非税政府补贴比2020年少，产生了
不利的税收影响。
我们专注于投资员工的技术与思维因此，集团的每股收益为18.30分，股本回报率达到23.6%。
我们多样化的业务组合，聚焦于抓住成长机遇的方法，实施
提升，开展自身能力建设和业务发生产力和成本管理措施，帮助自身实现均衡业绩。
尽管疫情
展，创造长期的可持续增长,并通过挑战持续存在，集团的业务表现更加强劲，复原力也增强，
收购增大我们的市场占有率及提高因此业绩也得到了提升。
竞争优势。
强劲的部门业绩
商业宇航部门收入达到24.6亿元，比前一年的23.3亿元
相比，同比增长6%。
尽管前一年第一季业绩因未受疫情影
响而表现强劲，该部门从2021年第二季度开始, 季度收入
同比持续增长。

致股东的信
尽管商业宇航业务所面临的疫情不国防与防卫部门的收入为40.4亿元，与前一年的37.2亿
利因素仍然存在, 该部门在2021年元相比增长8%，收入增长来自数码系统和网络、陆路

系统、海事、国防宇航等所有子部门。因政府补贴减少
一整年实现了连续的季度收入增长。 1.37亿元，该部门的息税前利润从4.84亿元下降到
4.66亿元，但收入增加和成本节约大大抵消了其带来的
不利影响。
我们的国防业务在国际上取得了良好进展，该部门
通过广泛建立合作关系，积极寻求目标市场增长从而为
收入增长来源于航空结构和系统，而宇航维护、修理和客户提供高质量国防解决方案，确保最佳的战备状态。
操作 (MRO) 市场则持续受到航空业低迷的影响。航空该部门在2021也赢得了几项重要的新合同。
资产管理部门的资产管理规模从2020年12月底的
8.13亿美元 (11亿新元) 增加到2021年12月底的10.5亿总体而言, 集团收入分类如按业务部门划分，商业宇航业
美元 (14亿新元) ，增幅达到30%。由于收入提高且实施了务收入占集团总收入的32%、城市方案和卫星通信以及
成本节约措施，商业宇航部门的息税前利润从8千100万国防与治安分别占15%和53%。如以地域划分，来自亚洲
元增至1.82亿元，同比增长125%。 (包括新加坡）的客户占集团总收入约58%，来自美国和
欧洲的客户分别占20%和16%，其余6%来自世界其他
尽管商业宇航业务所面临的疫情不利因素仍然存在，我们地区的客户。如以产品和服务类型划分，商业销售额为
持续进行相关的业务投资，以便在业务反弹时抢占先机， 48亿元，国防销售额为29亿元。
迅速应对。我们不仅继续扩充在美国彭萨科拉的MRO
产能及规模，也加快了A320neo短舱的生产能力，并在赢得合同势头迅猛，推动订单量稳步增长
美国莫比尔和中国上海成立新的客机改装基地。为了获得为了让投资界对我们赢得的新合同有更全面的了解，集团
进一步的增长，我们与淡马锡组成合资公司，开展了改装在2021年加强了披露方式，在不影响项目保密性的前提
货机租赁的新业务。改装货机提供相关的维护、修理和下把前未公布的机密项目价值包括在新合同总价值里。
大修服务，并成为合资公司的资产和租赁管理人。至此，2021年签署的新合同总值为117亿元，相较于
2020年的82亿元 (原先汇报价值为57亿元）及2019年
智慧城市和卫星通信部门的收入为11.9亿元，比去年为95亿元 (原先汇报价值为80亿元)。这就意味着，即便
同期的11亿元增长了8%，主要得益于更高的智能城市项与2019年疫情爆发之前相比，我们的业务在2021年赢得
目交付量，但全球半导体芯片短缺对智能城市项目和卫星了更多合同，体现了业务恢复的趋势。集团2021财年末总
通信产品交付的影响抵消了部分利好。息税前利润因订单额为193亿元(2020年底为154亿元) 。我们预期在
TransCore相关的并购交易费、较低的政府补贴且半导体 2022年将从订单中交付约66亿元的收入，为2022年的
芯片短缺产生的影响而同比下降 18%至2千600万元。业务提供稳健的销售额。
虽然面对疫情的挑战，该部门仍在拓展市场增长机会和
扩大客户规模方面取得了可观的进展。
卫星通信业务虽然受到疫情及全球芯片短缺的影响，我们
仍对此业务秉持积极乐观的态度并坚信下一代中地球
轨道 (Medium Earth Orbit) 和低地球轨道 (Low Earth
我们在2021年共签署了总价值为
Orbit) 卫星的发射将会带来众多商机。我们会继续利用 117亿元的新合同，建立了193亿元
领先的卫星通信技术和解决方案推动该业务的发展。总订单额。

致股东的信
严谨的成本管理加快智能城市的增长
集团得益于多年严格的成本管理，运营费用有所减少。
2021的营业费用比2020降低了4% ，也低于2019约我们一直专注于推动智能城市的成长，包括智能交通、智能
2021的单位营业费用 (单位收入) 比2020下降了
5%。环境和智能安全等目标领域。
为加快成长，我们一直在寻
10%以上，比2019降低了3%。找符合我们战略的潜在收购目标。
2021年初，我们意图
竞标收购一家位于美国的智能交通解决方案和支付行业
充沛的运营现金流公司。
这项收购方案能与我们的智能交通业务形成互补。
2021年，我们在节约一年后将资本支出增加到约3.2亿元然而这笔收购交易最终没有达成。
2021年后半段，我们对
(2020年为1.96亿元)，以便支持业务活动和增长需求。 TransCore的收购案进行了评估，判定它符合我们的战略后
这些支出包括设立熔喷和口罩生产工厂，为航空资产管理开出26.8亿美元（36.2亿新元）的收购报价。
考虑到税收优
部门购买两架飞机和两台引擎，以及加强集团整体IT基础惠后，折算成16.2倍企业价值倍数(EV/EBITDA)，远在先例
设施。交易和该领域可比上市公司的市场估值范围之内。
我们的运营现金流非常健康，且握有强劲的资产负债表我们认为TransCore与我们的智能交通业务互补性强。
来应对收购TransCore的融资。
在我们宣布收购TransCore 它的道路交通解决方案将强化我们的智能交通解决方案。
之后，穆迪和标普继续给予我们高评级，分别为Aaa和此外，它在北美端到端电子收费和拥堵收费领域的领先地
AAA 。
截至2021年12月底，集团持有8.16亿元的现金和位能让集团更有效地开拓新业务和市场。
我们感谢股东批
现金等价物。准了这项收购。
在我们撰写此函之时，我们预计这项拟议的
收购将在2022年第一季度完成。
我们计划让TransCore
股东回报成为我们智能交通业务线的一部分，并将其财务数据归入
鉴于这些结果，董事会建议派发每股10分的末期股息。智慧城市和卫星通信业务的汇报部门。
我们预计TransCore
加上2021年8月派发的每股5分的中期股息，2021全年将在第一年实现现金流正增长，并在第二年实现集团收购
的总股息将为每股15分，代表4%的股息收益率。 1
后的收益增长。
届时，我们将定期提供TransCore过渡到
集团的最新消息。
本着持续回馈股东的宗旨，董事会批准了一项股利政策，
从每年两次派发股息到每季度派发股息。
针对2022财年，我们将继续寻找增长机会，包括具备战略性、协同性和
这项政策计划每季度派发4分股息。
2022财年的股息总额价值增加性的并购活动。
将为每股16分(2021财年派发的总股息为每股15分)。
尽管
制定了全新股利政策，我们仍然有足够的财务实力和灵活
性用于增长机会的投资，并与我们的战略目标保持一致，
以实现我们的2026年目标。
参阅
董事会提议派发每股10分的末期股
息来回馈股东。加上2021年8月支
运营回顾与展望
付给股东的每股5分的中期股息，
2021全年的总股息将为每股15分，
1
股息收益率以2021年和2020年最后一个交易日的平均收盘价为基准。代表4%的股息收益率。

致股东的信
TransCore与我们的智能交通业务迈向财务目标的同时，我们也拟定了推进环境、社会和治理
互补性强。其道路交通解决方案 (ESG) 的议程。

我们的目标是发展针对可持续发展的相关
业务，包括有助于减少温室气体排放、解决城市问题、促进
不但能强化我们的智能交通解决循环经济的业务。
我们还将在新材料、新产品和新系统解决
方案，也能为集团争取进军广大北方案等方面寻找新的机会。
我们致力于实现净零经济，并将
美市场的机会。在2030年前减半我们的温室气体绝对排放量 (以2010年
为基准年) 。
此外，我们现在是《联合国全球契约》的签署方，
并承诺遵守十大原则。
我们在全球报告倡议组织 (GRI)
的基础上扩大了我们的报告范围，开始按照气候相关的
财务披露工作组 (TCFD) 以及与可持续发展会计准则
参阅有关
TransCore
委员会 (SASB) 制定的框架进行披露。

的公告
推动下一阶段的增长：五年计划（2022年至2026年）
参阅
ESG重点表现
我们在11月向投资界提出了实现可持续增长的下一个五年
计划(2022-2026)。
以下是我们的战略增长领域：我们将在战略执行过程中继续进行严格的资本分配，并提
高成本的使用效率。
我们会像过去数年一样努力，继续精简
1. 充分利用商业宇航的复苏机遇和优化业务组合，强化管理重点，释放价值，并将资本循
2. 推动智慧城市的发展环用于战略性和成长性业务，为我们带来更高的回报。
3. 拓展国际国防业务同时，我们将继续投入资源，加强我们的关键资产和能力，
4. 加强核心业务即员工和文化，以及全球营销和客户网络。
为了维持我们的科技和工程核心，我们将投入高达5%
的年收入为研发用途，其中高达75%将用于开发及延伸
参阅
集团五年计划详情数码科技。
此外，我们将继续加强工程和科技人员的能力
框架，以更好地发展相关技能和能力，并支持职业发展。
随着商业环境日新月异，疫情带来的数码化转型以及更广
泛的可持续性采纳让我们意识到云计算、人工智能分析和正如你们所看到的，我们在推进和实现我们的战略目标
网络在内的数码业务的商业价值。
因此，我们设定了以下的方面仍然坚定不移。
我们的目标将推动持续、有意义的进展
2026年财务目标：和成果。
我们的集团结构现在能更有效地追求我们制定的
增长路径。
• 商业宇航业务的收入将增加超过35亿元
• 智能城市业务收入将增加一倍以上至35亿元
• 数码业务的增长，预计云计算、人工智能分析和网络业务
收入将增长两倍，超过5亿元为了维持我们的科技和工程核心，
• 再加上其他核心业务，集团总收入将超过110亿元，达到
我们将继续投入高达5%的年收入
为研发用途，其中高达75%将用于
年复合增长率为全球GDP增长率的两到三倍
• 净利润与收入同步增长
开发及延伸数码科技。

致股东的信
董事会更新领导层变动衷心感谢
为了持续更新董事会的成员，我们做了一些人事更动。随着我们不断精准聚焦，扩大发展规模和范围，
我们2021年迎来了以下几位董事： ST Engineering将继续成为一个在航空航天、智能城市、
国防或公共安全等多个行业具有全球优势的集团。
• 陈炳炎担任非独立非执行董事
• 张铭坚担任独立非执行董事我们的短期目标因疫情影响不能如期完成，但我们有实现
• 郭騫先生担任独立非执行董事以及长期可持续增长的愿景、路线和必要资金。
最重要的是，
• 蔡德贤上校代替徐友峰上校被任命为王赐吉中将的我们的员工没有畏惧疫情带来的挑战，勇往直前，超越了
候补董事每一个挑战极限。
2021年度新加坡企业奖颁发的企业卓越
与弹性奖是对我们的认可，尽管在困难的情况下，我们仍然
郭锦彪先生于七月退任非独立非执行董事一职。
郭先生于坚持不懈地致力于我们的角色。
这种精神将继续推动集团
2016年加入董事会，并在其任期内担任研究、开发和技术向前发展，并塑造ST Engineering成为真正的全球科技、
委员会的主席，以及风险和可持续发展委员会的成员。国防和工程领导者。
我们在此向郭董事致上最深的谢意，感谢他的宝贵贡献，
并在此期许我们的新任董事能够为董事会带来新的气象。我们感谢所有股东、客户和员工多年来的不懈支持，也期望
他们能继续与集团一起迈向更可持续、更智能、更光明的
2021年，在高级管理人员方面也有所更新和调整。
执行未来。
委员会成员林思義于十月退任执行委员会成员和集团首席
运营长一职。我们感谢林先生他在位期间的杰出贡献与
领导。我们在九月迎来陈丽洲女士加入执行委员会并担任此致，
新设立的商业总裁职务。
柯宗盛钟思峰
主席总裁兼首席执行长
2022年二月二十八日

CORPORATE INFORMATION
AS AT 28 FEBRUARY 2022
BOARD OF DIRECTORS NOMINATING COMMITTEE COMPANY SECRETARY/

JOINT COMPANY SECRETARY
Kwa Chong Seng Lim Chin Hu
(Chairman) (Chairman) Low Meng Wai
Vincent Chong Sy Feng Kwa Chong Seng Tan Wan Hoon
(Group President & CEO) Lim Sim Seng
Kevin Kwok Khien Ng Bee Bee (May)
Joseph Leong Weng Keong Teo Ming Kian
Lim Ah Doo REGISTERED OFFICE
Lim Chin Hu
Lim Sim Seng ST Engineering Hub
Ng Bee Bee (May) RESEARCH, DEVELOPMENT 1 Ang Mo Kio Electronics Park Road
Lieutenant-General AND TECHNOLOGY #07-01
Ong Su Kiat Melvyn COMMITTEE Singapore 567710
Quek See Tiat Tel: (65) 6722 1818
Song Su-Min Tan Peng Yam www.stengg.com
Tan Peng Yam (Chairman)
Teo Ming Kian Vincent Chong Sy Feng
Colonel Cai Dexian Lim Chin Hu
(Alternate Director to Teo Ming Kian SHARE REGISTRAR
Lieutenant-General
Ong Su Kiat Melvyn) M & C Services Private Limited
112 Robinson Road #05-01
RISK AND SUSTAINABILITY Singapore 068902
COMMITTEE
AUDIT COMMITTEE
Quek See Tiat
Quek See Tiat (Chairman) AUDITORS
(Chairman) Vincent Chong Sy Feng
Kevin Kwok Khien Kevin Kwok Khien PricewaterhouseCoopers LLP
Lim Ah Doo Lieutenant-General 7 Straits View
Song Su-Min Ong Su Kiat Melvyn #12-00 Marina One East Tower
Song Su-Min Singapore 018936
Lam Hock Choon
(Partner-in-charge)
EXECUTIVE RESOURCE AND Date of appointment:
COMPENSATION COMMITTEE STRATEGY AND 15 May 2020
FINANCE COMMITTEE
Kwa Chong Seng
(Chairman) Kwa Chong Seng
Lim Chin Hu (Chairman)
Lim Sim Seng Vincent Chong Sy Feng
Teo Ming Kian Lim Ah Doo
Lim Chin Hu
Lim Sim Seng
Teo Ming Kian

BOARD OF DIRECTORS
KWA CHONG SENG VINCENT CHONG SY FENG

Chairman Group President & CEO
Non-Executive & Executive &
Independent Director Non-Independent Director
Date of first appointment as a Director: Date of first appointment as a Director:

1 September 2012 1 October 2016
Date of appointment as Chairman: Date of last re-election as a Director:
25 April 2013 22 April 2021
Date of last re-election as a Director:
15 May 2020
Academic & Professional Qualification Academic & Professional Qualification

• Degree in Mechanical Engineering, • Bachelor of Engineering (First Class Honours) (Mechanical
former University of Singapore Engineering), National University of Singapore
• Fellow of the Academy of Engineering Singapore • Executive leadership programmes, Thunderbird School
of Global Management and the Columbia Business School
Other Directorships/Appointments – Present • Fellow of the Academy of Engineering Singapore
• Defence Science & Technology Agency
• Public Service Commission, Singapore (Deputy Chairman) Other Directorships/Appointments# – Present
• Singapore Exchange Limited* (Chairman) • JTC Corporation (Board Member and Member of
• Judicial Service Commission (Member) Development Committee)
• Jurong Port Pte Ltd (Director and Member of Management,
Development & Compensation Committee)
Other Directorships/Appointments – Past 5 years
• Mechanical Engineering Departmental Consultative Committee,
• SeaTown Holdings Pte. Ltd.
NUS (Member)
• Singapore’s Manufacturing, Trade and Connectivity Domain
International Advisory Panel (Member)
Other Directorships/Appointments# – Past 5 years

• Committee on the Future Economy (Member)
• Emerging Stronger Taskforce (Member)
• Experia Events Pte. Ltd.
• International Advisory Panel for Advanced Manufacturing
& Engineering, Ministry of Trade & Industry (Member)
• Singapore Airshow & Events Pte. Ltd.
• Singapore Quality Award Governing Council (Member)
• Temasek Defence Systems Institute (TDSI)
Management Board, NUS (Member)
* Listed company
#
Directorships excluded ST Engineering’s subsidiary(ies)

BOARD OF DIRECTORS
KEVIN KWOK KHIEN JOSEPH LEONG WENG KEONG

Non-Executive & Non-Executive &

1 October 2021 7 June 2019
Date of last re-election as a Director: Date of last re-election as a Director:
N.A. 15 May 2020
Date of next re-election as a Director: Date of next re-election as a Director:
21 April 2022 21 April 2022

• Bachelor of Arts (Honours) Economics, Accounting & • Bachelor of Arts (Engineering),
Financial Management, University of Sheffield, UK University of Cambridge, UK
• Fellow, Institute of Chartered Accountants in England • Master of Arts, University of Cambridge, UK
and Wales • Master of Business Administration,
• Fellow, Institute of Singapore Chartered Accountants Massachusetts Institute of Technology, USA
Other Directorships/Appointments – Present Other Directorships/Appointments – Present

• Singapore Exchange Limited* • Civil Service College (Member)
• Mapletree North Asia Commercial Trust Management Ltd • Defence Science & Technology Agency
(Manager of Mapletree North Asia Commercial Trust*) • DSO National Laboratories
• Sentosa Development Corporation • Second Permanent Secretary
• The Circadian Advisors Pte Ltd (Communications and Information),
• The Circadian Associates Pte Ltd Ministry of Communications and Information
• The Circadian Group Pte Ltd • Second Permanent Secretary (Cybersecurity),
• Centre for Seniors (Advisor) Prime Minister’s Office
• Singapore Technologies Holdings Pte Ltd
• Wheelock Properties (Singapore) Limited^ Other Directorships/Appointments – Past 5 years
• Keppel Offshore & Marine Ltd Nil
• Accounting Standards Council (Chairman)
* Listed company
^ Delisted from SGX-ST in 2018

BOARD OF DIRECTORS
LIM AH DOO LIM CHIN HU

Independent Director Independent Director

10 November 2015 16 July 2018
22 April 2021 18 April 2019
Date of next re-election as a Director:
21 April 2022

• Honours degree in Engineering, Queen Mary College, • Bachelor of Science, La Trobe University,
University of London, UK Melbourne, Australia
• Master in Business Administration, • Diploma in Electrical & Electronics Engineering,
Cranfield School of Management, UK Ngee Ann Polytechnic
• Fellow of the Singapore Institute of Directors
Other Directorships/Appointments – Present
• GDS Holdings Limited* Other Directorships/Appointments# – Present
• GP Industries Ltd* • Citibank Singapore Limited
• Olam International Limited* • G-Able (Thailand) Ltd
• Singapore Technologies Telemedia Pte Ltd • Heliconia Capital Management Pte. Ltd.
• STT Communications Ltd • Kulicke & Soffa Inc*
• STT Global Data Centres India Private Limited • Ministry of Health/ MOH Holdings Pte Ltd
• U Mobile Sdn Bhd - ALPS Pte. Ltd.
• Virtus HoldCo Limited - Integrated Health Information Systems Pte. Ltd.
- Singapore Health Services Pte Ltd
Other Directorships/Appointments# – Past 5 years • Sentosa Development Corporation
• ARA-CWT Management (Cache) Limited (Audit Committee Member)
• SembCorp Marine Ltd* • Singapore Exchange Limited*
• SM Investments Corporation*
• STT GDC Pte. Ltd. Other Directorships/Appointments – Past 5 years
• Keppel DC REIT Management Pte. Ltd.
• Telstra Corporation Limited*
* Listed company
#

BOARD OF DIRECTORS
LIM SIM SENG NG BEE BEE (MAY)

Independent Director Independent Director

15 May 2015 1 June 2020
22 April 2021 22 April 2021

• Japanese Government Monbusho scholar • Bachelor of Arts (Honours),
• Bachelor in Business Administration, University of Western Ontario, Canada
Yokohama National University, Japan
Other Directorships/Appointments – Present • NTUC Enterprise Co-operative Ltd.
• Building and Construction Authority • Pan-United Corporation Ltd.* (CEO and Director)
(Chairman and Non-executive Board Member)
• DBS Securities (Japan) Company Limited Other Directorships/Appointments – Past 5 years
• DBS Vickers Securities Holdings Pte Ltd • Changshu Xinghua Port Co., Ltd.
• Federal Republic of Nigeria (High Commissioner) • ZhuHai Port Development Pte Ltd
(formerly known as Singapore Changshu Development
Other Directorships/Appointments# – Past 5 years Company Pte Ltd)
• Resona Merchant Bank Asia Limited • ZhuHai Harbour (Singapore) Company, Limited
(formerly known as ASEAN Finance Corporation Limited) (formerly known as Xinghua Port Holdings Ltd.)
• Nikko Asset Management Co., Ltd (formerly known as Xinghua Port Holdings Pte. Ltd.)
• Singapore Land Authority • Mercatus Co-operative Ltd*
* Listed company
#

BOARD OF DIRECTORS
LIEUTENANT-GENERAL
QUEK SEE TIAT
ONG SU KIAT MELVYN
Non-Executive &
Non-Executive & Independent Director
Non-Independent Director

8 June 2018 1 July 2013
22 April 2021 15 May 2020
21 April 2022

• Bachelor of Science (Economics) (Honours), • Bachelor of Science (Economics) (Honours),
London School of Economics and Political Science, UK London School of Economics and Political Science, UK
• Master of Science (Development Studies), • Fellow of the Institute of Chartered Accountants in
London School of Economics and Political Science, UK England and Wales

• Ascott Business Trust Management Pte. Ltd. • Accounting Standards Council Singapore (Chairman)
(Manager of Ascott Residence Trust*) • Centre for Liveable Cities Limited
• Ascott Residence Trust Management Limited • Council of Estate Agencies (President/Council Member)
(Manager of Ascott Residence Trust*) • Monetary Authority of Singapore (Board Member)
• Defence Science & Technology Agency • Pavilion Energy Pte. Ltd.
• JTC Corporation (Board Member) • Pavilion Energy Spain, S.A.U.
• Singapore Press Holdings Limited*
Other Directorships/Appointments# – Past 5 years • Temasek Foundation Connects CLG Limited
Nil • Temasek Foundation Ltd
• TF IPC Ltd.

• Energy Market Authority (Board Member)
* Listed company
#

BOARD OF DIRECTORS
SONG SU-MIN TAN PENG YAM


16 September 2018 1 August 2021
18 April 2019 N.A.
Date of next re-election as a Director: Date of next re-election as a Director:
21 April 2022 21 April 2022

• LLB (Honours), University of Kent, Canterbury • Bachelor of Engineering (Electrical Engineering),
• Singapore Bar University of Tasmania, Australia
• Bar of England and Wales, Middle Temple
Other Directorships/Appointments – Present • Cap Vista Pte Ltd (Chairman)
Nil • Defence Science & Technology Agency
• DSO National Laboratories
Other Directorships/Appointments – Past 5 years • D’Crypt Pte Ltd
Nil • Land Transport Authority (Board Member)
• PUB Board Committee for Transformation (Member)
• Singapore Israel Industrial R&D Foundation
• Singapore University of Technology and
Design Board of Trustees (Member)
• SMRT Technical Advisory Panel (Chairman)
• Temasek Defence Systems Institute (TDSI)
Management Board, NUS (Chairman)

• National Environment Agency (Board Member)
• Temasek Polytechnic Board of Governors (Board Member)
• Government Technology Agency (GovTech) (Board Member)
• Tech Vista Pte Ltd (Chairman)
• Temasek Laboratories, NTU (Member)

BOARD OF DIRECTORS
TEO MING KIAN COLONEL CAI DEXIAN

Non-Executive & Alternate Director to
Independent Director Lieutenant-General
Ong Su Kiat Melvyn
Date of first appointment as a Director: Date of first appointment as an Alternate Director:

1 August 2021 1 October 2021
Date of last re-election as a Director:
N.A.
21 April 2022

• Bachelor of Engineering (First Class Honours) degree in • Bachelor of Arts in Economics and International Relations,
Mechanical Engineering, Monash University, Australia Stanford University, USA
• Master of Science degree in Management Studies, • Master in Business Administration (with Distinction),
Massachusetts Institute of Technology, USA INSEAD, Singapore

• Global Innovation Index by World Intellectual Nil
Property Organization (Advisory Board Member)
• Interel Pte. Ltd. Other Directorships/Appointments – Past 5 years
• Temasek Foundation Ecosperity CLG Limited (Chairman) Nil
• Temasek Foundation Ltd
• Temasek Holdings (Private) Limited
• Temasek Life Sciences Laboratory Limited (Chairman)
• Temasek Life Sciences Ventures Private Limited (Chairman)
• Temasek Lifesciences Accelerator Pte. Ltd. (Chairman)
• Temasek Trust Ltd.
• Tychan Pte Ltd (Chairman)
• TF IPC Ltd
• Vertex Venture Holdings Ltd (Chairman)
• Zinfinity Pte. Ltd. (Chairman)

• Vertex Venture Management Pte. Ltd. (Chairman)
• Heptagon Advanced Micro-Optics Pte. Ltd.
• JOil (S) Pte. Ltd. (Chairman and Alternate Director)
• Tessa Therapeutics Pte Ltd (Chairman)

DIRECTORS SEEKING RE-ELECTION

AT THE ANNUAL GENERAL MEETING ON THURSDAY, 21 APRIL 2022
→ Information Required Under Rule 720(6) of the Listing Manual
of Singapore Exchange Securities Trading Limited
LIM CHIN HU QUEK SEE TIAT
Age 63 67
Country of principal residence Singapore Singapore
The Board’s comments on this Mr Lim has decades of With his qualifications and
appointment (including rationale, management experience with years of experience in an
selection criteria, board diversity multinational technologies international audit firm, Mr Quek
considerations and the search like Hewlett Packard and Sun is able to provide invaluable and
and nomination process) Microsystems (now Oracle). An independent financial perspectives
experienced director, he was to Board deliberations. He is also
CEO of a publicly listed IT services appropriately qualified to discharge
company with expertise in M&A and his responsibilities as Chairman of
nurturing technology startups. Audit Committee.
His experience and knowledge will Mr Quek has vast experience

continue to help the management in audit and business advisory
of ST Engineering steer towards the background. His experience
Company’s growth vision. and knowledge will ensure that
Audit Committee has recent and
relevant accounting or financial
management expertise or
experience.
Whether appointment is executive, Non-Executive Non-Executive

and if so, the area of responsibility
Job Title (e.g. Lead ID, Independent Director Independent Director

AC Chairman, AC Member etc.)
Chairman of Chairman of
• Nominating Committee • Audit Committee
• Risk and Sustainability
Member of Committee
• Executive Resource and
Compensation Committee Mr Quek See Tiat will, upon
• Research, Development and re-election as a Director of the
Technology Committee Company, step down as Chairman/
• Strategy and Finance Committee Member of the Audit Committee.
Working experience and CEO, British Telecoms Deputy Chairman,

occupation(s) during the past South East Asia Pricewaterhouse Coopers
10 years (2008 – 2011) Singapore
(1981 – 2012)
CEO, Frontline Technologies
Corp. Ltd
(2000 – 2008)


SONG SU-MIN KEVIN KWOK KHIEN
Age 48 66
Country of principal residence Singapore Singapore
The Board’s comments on this Ms Song’s legal background With Mr Kwok’s broad experience
appointment (including rationale, will continue to provide a in audits and M&A activities across
selection criteria, board diversity specialised legal perspective various industries and in numerous
considerations and the search to board deliberations. jurisdictions, public listings and
and nomination process) other fund-raising activities as well
as his expertise in Corporate
Governance and accounting
practices, he will be able to provide
stewardship and guidance on the
Group’s Accounting and Financial
Management, M&A, Corporate
Governance and Risk Management
matters to ST Engineering Board’s
deliberations.
Whether appointment is executive, Non-Executive Non-Executive

and if so, the area of responsibility
Job Title (e.g. Lead ID, Independent Director Independent Director

AC Chairman, AC Member etc.)
Member of Member of
• Audit Committee • Audit Committee
• Risk and Sustainability • Risk and Sustainability
Committee Committee
Mr Kevin Kwok Khien will, upon

re-election as a Director of the
Company, assume the role of
Audit Committee Chairman.
Working experience and Partner, Allen & Gledhill LLP Head of Assurance & Advisory
occupation(s) during the past (2006 – current) Business Services - Singapore and
10 years ASEAN, Ernst & Young LLP
Non-executive independent
director of various listed companies


TAN PENG YAM TEO MING KIAN

Mr Lim Chin Hu, Mr Quek See
63 70 Tiat, Ms Song Su-Min, Mr Kevin
Kwok Khien, Mr Tan Peng Yam
Singapore Singapore and Mr Teo Ming Kian, has
each:
Mr Tan has held various defence Mr Teo has wide network and • confirmed that he/
technology positions in the Ministry broad perspective of both local she has no relationship
of Defence. He also has extensive and overseas economies which will (including immediate family
experience working with many other benefit ST Engineering in addressing relationships) with an existing
Public Service organisations as well the changing and challenging needs
director, exIsting executive
as tech organisations internationally. of ST Engineering’s operations.
officer, the Company and/or
His experience and knowledge will Mr Teo’s leadership, appropriate
complement the competencies and qualification, skillsets and vast any substantial shareholder
skills of the present Board members. experience in the various fields will of the Company or any of its
provide an all-rounded perspective principal subisdiaries.
to Board deliberations. • confirmed that he/she has no
conflict of interest (including
any competing business).
• provided an undertaking
in the format set out in
Non-Executive Non-Executive Appendix 7.7 under Rule
720(1) of the Listing Manual
of the Singapore Exchange
Non-Independent Director Independent Director Securities Trading Limited
(SGX-ST).
Chairman of Member of
• Confirmed that all responses
• Research, Development and • Executive Resource and
under items (a) to (k) of
Technology Committee Compensation Committee
• Nominating Committee Appendix 7.4.1 of the SGX-ST
• Research, Development and Listing Manual to be “No”.
Technology Committee
• Strategy and Finance Committee
Mr Teo Ming Kian will, upon

re-election as a Director of the The other information as
Company, assume the role of required under Rule 720(6)
Deputy Chairman of the Board. of the SGX-ST Listing Manual
are disclosed in the “Board of
Chief Executive of Defence Advisor, Special Projects, Directors” section on pages 18
Science and Technology Agency Ministry of Finance to 24.
(1 Oct 2009 - 2 Oct 2011)
The shareholding interest in the
National Research Foundation, Company and its subsidiaries
Prime Minister’s Office (if any) of each of these
Permanent Secretary, National Directors are disclosed in the
Research and Development “Directors’ Statement” on
(1 Jan 2006 - 2 Oct 2011) pages 122 and 136.

GROUP EXECUTIVE COMMITTEE
Group Executive
Committee
The Group Executive Committee (EXCO) is supported
Group Senior
by the Group Senior Business Council comprising a team Business Council
of senior leaders across the Group. Group Senior
Management Team
Mr Cedric Foo Chee Keng, 61, is the Group Chief Financial

Officer of ST Engineering.
VINCENT CHONG SY FENG
Group President & CEO Before joining ST Engineering in October 2016, Cedric was
the Group Deputy President and Chief Financial Officer of
Neptune Orient Lines Limited. Prior to that, Cedric served
at Singapore Airlines as the Senior Vice President, Finance
and Administration and subsequently, as the Senior Vice
President for West Asia and Africa.
Mr Vincent Chong Sy Feng, 52, is the Group President &
CEO of ST Engineering and a Director of the ST Engineering Cedric was also the Chairman of JTC Corporation from 2008
Board since 2016. to 2012 and of Spring Singapore from 2003 to 2007.
Before his current role, he was the President & CEO Cedric graduated with a Bachelor of Science in Engineering
(Designate) from late 2015, and prior to that, the Group’s (Naval Architecture and Marine Engineering) from the
Deputy CEO (Corporate Development) from late 2014. University of Michigan, Ann Arbor, USA and received his
He joined ST Engineering in early 2014 as President Master of Science (Ocean Systems Management) from the
of Strategic Plans and Business Development of the Massachusetts Institute of Technology, Cambridge, USA in
Aerospace sector. 1985. He also attended executive programmes at Harvard
and Kellogg Business Schools.
Vincent brings to the Group 20 years of global business
experience from ExxonMobil, where he spent half of that
time being based in Hong Kong, Japan, U.K. and the
U.S. He held a wide span of senior positions in global
and regional business management, refinery process
engineering, industrial and retail operations, product
marketing and strategic planning.
Vincent is a board member of JTC Corporation and
Jurong Port. He was a member of the Ministry of Trade
and Industry’s International Advisory Panel for Advanced
Manufacturing and Engineering, and served on the
Emerging Stronger Taskforce to review how Singapore can
build new sources of dynamism and stay economically
resilient in a post COVID-19 world.
CEDRIC FOO CHEE KENG
Vincent graduated in 1994 with First Class Honours in Group Chief Financial Officer
Mechanical Engineering from the National University of
Singapore. He attended executive leadership programmes
at Thunderbird School of Global Management and
Columbia Business School. He is a fellow of the
Academy of Engineering Singapore and was conferred
the Distinguished Engineering Alumni Award by National
University of Singapore in 2021.

GROUP EXECUTIVE COMMITTEE
RAVINDER SINGH
Group Chief Operating Officer
(Technology & Innovation)
President Defence & Public Security
Mr Ravinder Singh, 57, holds concurrent appointments as

the Group Chief Operating Officer (COO) (Technology &
Innovation), and President Defence & Public Security,
at ST Engineering.
Mr Ravinder oversees the development of multi-domain
TAN LEE CHEW
technologies, and business innovation across the
President Commercial
Group as its COO. He also leads the Group’s businesses
across Digital Systems, Cyber, Land Systems, Marine
and Defence Aerospace as President of Defence &
Public Security.
With over 30 years of technology and defence experience, Ms Tan Lee Chew, 58, is President, Commercial of
Mr Ravinder has held various management and leadership ST Engineering.
positions. He was President of the Group’s Land Systems
sector, then President, Defence Business and President Ms Tan oversees and drives growth for the Commercial
of the Group’s Electronics sector before he assumed cluster, which comprises three business areas:
his concurrent appointments on 1 January 2021. Prior to Commercial Aerospace, Urban Solutions and Satellite
ST Engineering, Mr Ravinder served as the Chief of Army, Communications and accounts for close to 50% of
Singapore Armed Forces (SAF) and the Deputy Secretary Group revenue as at 30 June 2021.
(Technology), Ministry of Defence, Singapore. He was
Before joining ST Engineering in September 2021,
awarded the SAF Overseas Training Award (Academic)
Ms Tan was the Managing Director, Worldwide Public
and was conferred the Public Administration Medal
Sector (ASEAN) from Amazon Web Services, responsible
(Military), Silver and Gold.
for leading new business growth through the adoption
Mr Ravinder is Deputy Chairman of National Environment of AWS services as an enabler to deliver technology
Agency, and both a board member and Executive transformation at scale for organisations.
Committee of the Agency for Science, Technology and
Research (A*STAR). He is also a board member of DSO Prior to that, Ms Tan was with Hewlett-Packard Enterprise
National Laboratories, and the Temasek Defence Systems for more than 20 years, last serving as the Senior
Institute Management Board of National University of Vice President of global Hybrid IT Sales and Category
Singapore, the independent review panel of Ministry of Management based in Palo Alto, California, where she led
Home Affairs and the Data Protection Appeal Panel for the go-to-market planning and execution of product sales
Ministry for Communications and Information Singapore. strategies for the company’s Data Center Infrastructure
and Software Defined technology portfolio globally.
Mr Ravinder holds a Bachelor of Arts in Engineering
Science (First Class Honours) and a Master of Arts in Ms Tan is the President for the Women in Tech Chapter
Engineering Science from University of Oxford. He was at the Singapore Computer Society, and serves as
awarded the Singapore Armed Forces Postgraduate the Vice Chairperson on the Board of the Singapore
Scholarship and graduated from Massachusetts Institute Heart Foundation.
of Technology with a Master of Science in management.
He attended the Advanced Management programme at Ms Tan holds a Bachelor of Arts (Hons) in Philosophy
Wharton Business School. from National University of Singapore.

TECHNOLOGY & INNOVATION
→ Technology and innovation lies at the core of what we do as a global

technology, defence and engineering Group. From sustainable
innovations to disruptive technologies that push the envelope,
we harness innovation and technology to improve lives and make
the world more secure and sustainable.
INNOVATION APPROACH: KEEPING INNOVATION ON THE FAST TRACK
Our innovation approach comprises driving synergy and deepening capability building in the Group,
as well as leveraging external capabilities to accelerate innovation. We are focused on developing
technologies that place us at the digital forefront.
Strong Technology, Engineering & Innovation Community
Drive Synergy & Broaden Outreach to Leverage

Deepen Capability Building External Capabilities
Business-driven Core Strategic Open Lab Corporate Corporate Industry

Product Engineering Technology Venture & Research Collaborations
Development Capabilities Centres Capital Labs
Our R&D Investment

We believe in prudent but focused R&D investment, driven by
business and product roadmaps that support our business growth. Research Translation
@ ST Engineering
R&D Spend In 2021, we launched Research
Funding Classification in 2021 Translation @ ST Engineering,
R&D Activity Sources Financial Statement $m a first-of-its-kind collaboration
Research Internal/ Research, design and research model partnering
92.81
Projects External development expenses Institutes of Higher Learning,
Development Resarch Institutes and A*STAR.
Internal/ Capitalised development Under this model, researchers
Projects/ IP Rights 84.92
External expenditure
and Licences will move their research out of
Customer Funded campuses or laboratories into
External part of Cost of Sales 87.8 industrial environments on
R&D Projects
ST Engineering’s premises, and
Total R&D 265.5
collaborate with our technologists
R&D Intensity over Revenue 3.5% and engineers in a common
1
see Note B3 in Notes to Financial Statements page 164 space. This aims to speed up
2
see Note C3 in Notes to Financial Statements page 184 the translation of research into
commercially viable offerings that
will meet fast-evolving market
INVEST UP TO needs and customer demands.
5%
OF REVENUE IN R&D
>75%
of R&D spent in
Digital Technology
Learn more about our
innovation approach
IN THE NEXT 5 YEARS

→ Secured Data Transmission → Boosting Drilling Efficiency

The smallest portable IP encryptor This automated robotic floor grid drilling
dongle ensures secure network access arm helps to reduce manhours required
to corporate resources anytime, per floor grid drilling during freighter
anywhere. It is designed to meet aircraft conversion by 30%. It can
the needs of governments also be used for milling
and enterprises. and welding, and
other manufacturing
processes in
our hangars.
→ Smart Lift → Clean Cabin Air

Monitoring The bipolar ioniser uses
the existing airflow system
Our cloud-based, non-intrusive
of an aircraft to distribute
AGIL Smart Lift Monitoring solution
a high concentration of
enables 24/7 lift status monitoring
positive and negative ions
and diagnostics through the use
throughout the cabin to
of remote diagnostics and edge
neutralise COVID-19
analytics, providing centralised,
and other harmful
real-time visibility of lift
viruses and bacteria.
operations to building
owners, lift operators
and technicians.
Learn how it works
→ Extended Reality Applications → Smart,

MAK ONE is an open modular product Safe and
suite with a whole world multi-domain Sustainable
synthetic environment that is a digital
twin of planet Earth, thereby allowing Ships
end users, system integrators, and DigiShip’s suite of technologies
simulation designers to conduct training enables a wide range of smart
and experimentation exercises in any functionalities such as advanced
domain (air, land, sea, space) predictive monitoring and maintenance,
independently or collectively autonomous operations, IoT sensorisation,
in multi-domain operations. digitised lifecycle support and more.
Learn how it works
→ Unmanned Vessels
The Autonomast is an all-in-one modular
system that can be installed on any vessel,
be it military or commercial, and transform
it into an unmanned surface vessel,
paving the way for smarter and safer
autonomous navigation.
→ Intelligent Cyber Defence

This advanced security management platform
can be integrated with existing intelligence-
driven security operations centre
architecture to offer 24/7 visibility
of an enterprise’s cloud, IT and
OT infrastructures’ security posture. Learn how it works Learn how it works

CHAMPIONS OF INNOVATION
→ Our champions support, facilitate and enable innovation to thrive

at ST Engineering. They are the inspirers, the connectors and
the nurturers, and they continuously challenge the status quo to
encourage a culture of innovation for our continued success.
5G: Empowering → → Virtual Simulation &

Future Connectivity Training Technologies
5G promises a wide range Today’s military simulation
of applications that will requirements demand scenarios
enable advancements and that are both larger-scale and more
developments for businesses. complex than ever. Our suite of
innovative simulation and visualisation
We are building and seeding products is designed with flexibility
several ideas in various sectors in mind and can be tailored to meet
to address increasingly complex training and experimentation needs
problems that will drive greater in all domains. Our new scalability
operational efficiency, better and interoperability framework - MAK
resource management and lower Legion - enables the efficient exchange
cost for our customers, given the of information among cloud-based
multiple opportunities in 5G. simulations of up to millions of entities
using a standards-based approach.
Gan Yeow Beng
Technology and Engineering Len Granowetter
Digital Systems Chief Technology Officer
MAK Technologies
→ Autonomous → Smoother Urban

Bus Developments Traffic Flow
Our commitment and investment in Emerging technologies impact the way
autonomous technologies will shape new systems are delivered. Our urban
future road public transport. We are traffic management system can run with
especially focused on sustainable microservices and on the cloud, using AI and
research and outcomes towards data analytics to deliver real-time decision
overcoming real-world challenges such support systems and communicate with
as adverse weather, vulnerable road vehicles through 5G or V2X technologies.
users, and ride comfort on autonomous All these have enabled us to be more agile.
shared transport like buses. This is
Furthermore, clients can now subscribe to
because we believe autonomous
our Software-as-a-Service, which eliminates
transport must be proven to be safe
the need for infrastructure building, and
and secure in order to gain public
allows for scalability as needed.
confidence and adoption.
Leong Hin Cheong
Lee Kuok Ming Urban Solutions
Urban Solutions
ST ENGINEERING ANNUAL REPORT 2021

→ Multi-Cloud Governance
& Management
Multi-Cloud environments are here to stay, and
with that, a need for an integrated platform that our
customers can design and implement to govern and
monitor their cloud usage, manage workloads across
multiple public clouds or hybrid cloud environments,
and resolve potential data breaches in real-time.
Pradhan Abhishek
Digital Systems
AI-Powered →
Video Analytics → Enabling Global
Machine Learning (ML) technologies Connections
allows us to offer AI-powered video
analytics solutions by tapping our Our model for ground infrastructure is
capabilities in computer vision and fully digitised and virtualised and can
software engineering. Thus, we are dynamically configure space resources
building an ML Ops Platform and on the ground in real time. It advances
production line that would automate key aspects of a satellite network from
and parallelise all activities, to more powerful waveforms and more
shorten production cycle and fulfill intelligent bandwidth allocation to more
customers’ complex needs. capable remotes. This enables service
delivery to be seamless, economical,
Liew Hui Ming scalable, and support whatever data
Group Engineering Centre
rate and functionality is needed for
any possible application that satellite
connectivity can support.
Frederik Simoens
Chief Technology Officer
ST Engineering iDirect
→ Autonomous System Security & IoT Security

IoT devices are increasingly adopted as they are lightweight, easy to
deploy and have use cases across multiple industries such as land fleets,
maritime, aerospace and manufacturing. However, as cybersecurity attacks
on IoT are also increasing, it is critical to uncover vulnerabilities and security
loopholes before deployment. Hence we developed a testing solution to
offer comprehensive security testing of IoT devices at our Cybersecurity
Strategic Technology Centre.
Dr Vrizlynn Thing
Cybersecurity Strategic Technology Centre

OPERATING REVIEW & OUTLOOK
Commercial
Aerospace
WHAT WE ACHIEVED IN 2021
→ Boosted freighter → Built on MRO capabilities → Expanded aviation asset

conversion capacity with new engine management business
with new conversion solutions and predictive with freighter aircraft
site in the U.S. maintenance programmes leasing joint venture
The recovery of the global aviation sector trudged In anticipation of a stronger recovery in 2022
along on an uneven footing due to the various waves and growth over the longer horizon, we continued
of infection after an early rebound at the start of the to invest in our capabilities during the year,
year. Despite the stop-start characteristics of the from constructing new aerospace facilities, to
pandemic, more countries opened up their borders by implementing smart technologies at our hangars
the end of the year with increasing vaccination rates. to enhance productivity. These investments will
help ensure that we maintain our competitive edge,
Our airframe business saw the fastest recovery which emerge stronger and be better positioned to seize
was helped by the fact that freighter aircraft MRO new opportunities.
demand remained strong during the pandemic. In
comparison, recovery of our component and AEROSTRUCTURES AND SYSTEMS
engine MRO businesses was slower as many
operators were still using equipment with green time. Our diverse businesses under Aerostructures and
Nevertheless, the overall utilisation rate of our MRO Systems saw several new developments during the
capacity remained above two-thirds on average year to help pave the way for continued growth,
throughout the year. such as the expansion of integrated solutions for
nacelles, setting up of new production sites for
Our Original Equipment (OE) Manufacturing freighter conversions and the introduction of new
businesses saw improvements as well, with our biggest cabin interior solutions to help protect air travellers
nacelle programme, the A320neo, experiencing a from COVID-19.
steady recovery in pace with Airbus' production rate.
The freighter market and our freighter conversion

business were bright spots in 2021. The heightened
interest in dedicated freighters translated to a number In anticipation of a stronger
of orders, with strong bookings of conversion slots for
our Airbus programme.
recovery in 2022, we
continued to invest in our
capabilities during the year.


→ Commercial Aerospace
→ Production volume of our nacelle programmes

remained healthy and in line with OEMs’ requirements Passenger-to-Freighter (P2F) Conversions
One of the few bright spots for the airline
industry during the year had been the strong
demand for freighters, which was largely driven
by the robust e-commerce market.
In 2021, we inducted a total of 30 Boeing and

Airbus aircraft for conversion, compared to 12
in 2020. Of the 30 conversions we carried out,
16 were for our Airbus P2F programmes, which we
secured a number of new contracts during the year.
Aircraft leasing management company, BBAM, whom

we made our first A321P2F redelivery in January,
was among the growing list of customers who made
additional orders for the A321P2F. The new orders by
Nacelle BBAM brought the total number of its A320/A321P2F
We ramped up the production volume of our biggest to 26 units as of end 2021.
nacelle programme, the A320neo, to be in line with
the requirement of the OEM, Airbus. Orders for our Our P2F customer base continued to grow when we
other nacelle product lines such as the COMAC welcomed new customers. This included Geodis,
ARJ-21, Bombardier Global 7500 and Boeing 767 MNG Airlines and Air Transport Services Group which
Tanker stayed at healthy levels in 2021. Overall, we saw placed an order of 20 A330P2F to be redelivered from
steady growth in production volume for our current 2023.
programmes, and expect the total order book for
nacelles to remain strong in the mid to long term. With such strong interest, all slots for our A330P2F
programme have been booked through 2025, while
As part of our long-term growth plans to provide more we are fully booked through mid-2024 for our A320/
integrated nacelle solutions, we continued to build our A321P2F programme.
nacelle MRO capabilities at our Middle River facility
in the U.S. by adding V2500 engine nacelles for A320
and nacelle inlets for Global 7500’s Passport engines
to its expanding list of MRO solutions.
Learn how we innovate and Watch how we convert the world’s first
make our engine nacelles greener A321 passenger aircraft into a freighter
Our A330P2F slots are booked

through 2025, while our A320/
A321P2F slots are booked
through mid-2024.
→ An A321P2F redelivered
to BBAM in operation
(photo: Titan Airways)
35

To meet higher demand, we have been expanding our We also teamed up with Singapore Institute of
conversion capacity so that we will be able to induct Manufacturing Technology in a three-year research
over 60 aircraft for conversion per year for our programme to co-develop additive manufacturing
Airbus P2F programme by 2024, compared to a (AM) processes for applications in MRO. The
capacity of just under 20 conversion slots in 2021. collaboration will help us enhance our end-to-
Our expansion plans include the setting up of a new end AM processes to better address customers’
conversion line in San Antonio, U.S. in end 2021, and increasing need for sustainable solutions in
new conversion lines in Shanghai, China and Mobile, aerospace part replacement and manufacturing.
U.S., in 2022. All these add to existing conversion sites
in Singapore and Germany. Unmanned Air Systems
Our DroNet solution continued to scale new heights
Cabin Interiors and Engineering Solutions as it notched up new contracts and applications,
With the COVID-19 pandemic changing how we view paving the way for wider use of end-to-end drone
and manage air travel, we continued to apply our system solutions. Singapore’s National Water
design and certification expertise to develop solutions Agency, PUB and Singapore Land Authority were
that meet the need for enhanced personal hygiene among the new users, deploying the solution to
and social distancing measures during air travel. monitor water quality and activities at reservoirs, as
well as inspecting Singapore’s Southern Islands.
During the year, we received the Approved Model
List Supplemental Type Certificate from the Federal
Aviation Administration to install Aviation Clean Air’s
cabin air purification solution on the Airbus A320/
A321 platforms, which is proven to swiftly purify the air
and surfaces as well as neutralise viruses and bacteria
throughout an aircraft interior.
Our DroNet solution
continued to scale new
Apart from clean cabin solutions, we continued to heights as it notched up new
support airlines that wish to capture the strong air
freight demand using their underutilised passenger contracts and applications.
aircraft with our reversible cabin modification solution,
Cargo Lite. So far, the solution has been implemented
Learn more about
in aircraft operated by Scoot in Singapore, Royal our DroNet solution
Brunei Airlines and AirAsia in Thailand and Malaysia.
→ A drone taking off from DroPort, a

critical component of our DroNet
solution, to monitor water quality and
activities at a reservoir in Singapore


AEROSPACE MRO
Airframe Services We continued to foster

On the back of strong input from freighter companies
and return of maintenance work from customers for
long-standing relationships with
their domestic aircraft, our airframe MRO business our customers and secured a
saw strong recovery in 2021 from 2020, with our global number of multi-year contracts
airframe facilities returning to near full capacity by the
end of the year. from new and existing customers.
We continued to foster long-standing relationships
with our customers and secured a number of multi-
year contracts from new and existing customers to Component / Engine Services
support their airframe MRO needs for the coming Notwithstanding the slow recovery in the level of
years. These contracts included a five-year Airbus A320 component and engine MRO activities, we secured a
airframe heavy maintenance contract from a North number of long-term contracts from airline customers
American airline, a five-year Boeing 787 airframe heavy to support them in their business activities and
maintenance contract from an Asia-Pacific airline recovery.
and a five-year heavy maintenance contract with an
international air cargo carrier for multiple fleet types. New engine MRO contracts included a five-year
heavy maintenance contract from Alaska Airlines and
At the same time, we maintained our focus on a 12-month heavy maintenance contract from an
capturing future growth, and embarked on our Asian airline. As for our component MRO business,
expansion plans by commencing the construction we secured a five-year contract from Virgin Australia
of an MRO complex in Pensacola, U.S. When fully Airlines to support their growing Boeing 737NG fleet,
completed, the expansion will add three state-of-the- a five-year contract from Japan Airlines to service
art large hangars and around 1.5 million manhours to their Boeing 787 fleet and a three-year contract
our annual airframe maintenance capacity to better from a South Korean airline to support their Boeing
serve the North American market. 737NG aircraft fleet.
To diversify and strengthen our talent pool, we Similarly, we broadened our service offerings and
are evaluating the creation of an Aviation Training capabilities in engine and component MRO as part of
Academy in Pensacola that would add 150 graduates our long-term strategy to achieve growth. We became
a year to the local aviation maintenance programmes. the only licensed MRO service provider based in Asia
We also entered into an agreement with airline Pacific for Honeywell components installed on LEAP-
customer, UPS, to collaborate on a skills progression series engines. We also started setting up quickturn
programme that would provide on-the-job training to infrastructures to help idle engines restore optimal
prospective aviation technicians. operational performance for LEAP-1B engines.
← Groundbreaking for an airframe MRO

complex in Pensacola, the U.S.
37

Aviation Asset Management OUTLOOK

We took a significant step in growing our aviation asset
management business by setting up a 50-50 joint venture Recovery of the global aviation market in 2022
(JV) for freighter aircraft leasing with Temasek on the back depends on how quickly the world can further relax
of growing demand for freighter aircraft. border control and resume flying activities. We believe
that the market has bottomed in 2021, and will be on a
The JV targets to build a portfolio valued at about steady recovery trajectory, provided that the COVID-19
US$600m (about S$800m) within five years, investing situation does not take a turn for the worse.
in passenger aircraft to be converted into highly
efficient freighters. In the mid to long term, the As flying activities rise in volume, so will the demand
JV intends to securitise the leasing income streams for MRO services and aircraft orders. However, we
by way of a business trust to unlock capital. expect operators to send in their components and
engines for servicing only towards the later half of
This is a synergistic move for us as we will be able to 2022 after their green time has been used up. As for
provide the associated MRO services as options. In aircraft production, strong global cargo demand and
addition, ST Engineering will be the asset and lease earlier-than-expected U.S. domestic travel recovery
manager to the JV, which is consistent with the Group’s spurred a slew of orders for aircraft in 2021. A rebound
aviation asset management business model. in global economic growth in 2022 will add to the
momentum for higher orders.
Apart from setting up the JV, we continued to build our
customer base in aircraft leasing. For instance, Vaayu E-commerce, which is expected to be a big part of
Group signed a letter of commitment with us to lease this overall economic growth, will continue boosting
up to five A320P2F aircraft. We also reached a new demand for freighter aircraft. This will in turn translate
milestone by delivering our first A321P2F to Qantas to further orders for freighter conversion, especially
Group under a convert and lease arrangement. by operators looking for more cost effective and
greener options in recycling retired passenger
aircraft. We also anticipate higher demand for
services in freighter leasing and MRO.
As we look forward to a stronger recovery by the

industry in 2022, we can also expect competition
We believe that the market has to get more intense, with many market participants
bottomed in 2021, and will be on gearing up to ride the wave of recovery. To stay ahead
of the pack, we will continue to build on the breadth
a steady recovery trajectory. and depth of our capabilities in nose-to-tail lifecycle
solutions. At the same time, we will continue our
focus on enhancing productivity through
the use of technology and developing
sustainable solutions.
→ The first A320 freighter to

be included in our portfolio
of aircraft leasing assets
undergoing P2F conversion
in Singapore

Developing New MRO Capabilities

We are building on our suite of MRO solutions to
make them even more comprehensive, such as
setting up full LEAP-1B engine MRO services by end-
2023. With the expansion of our integrated solutions
in nacelles, we are also looking at nacelle MRO
opportunities in countries such as the U.S., Europe
and China.
Creating Value through Synergy

Using our strengths as an integrated aviation solution
provider, we are able to bring unique and bespoke
solutions to the market that no pure OEM or MRO
provider can. For instance, we are building on our
leasing business to provide total lifecycle asset
management services that can bring greater value
proposition to the market. These value-added → Solar panels installed at our Singapore aerospace
solutions include aircraft and cabin reconfiguration, facilities help fulfil 30% of our electricity needs
maintenance and freighter conversion that will give
operators the support they need to focus on their
core business and grow.
to do more with less, and also ensuring that we can
Capturing Growth with Higher Capacity manage any cadence with agility. For instance,
Capacity expansion is a critical component of we automated the floor grid drilling process in freighter
our long-term strategy in capturing opportunities conversion to make the process less labour-intensive.
arising from the growth of the aviation industry. We
have identified the North American region as a key Stepping Up Sustainability Efforts
growth market, which we aim to further with a new We are stepping up our sustainability efforts and
MRO complex in Pensacola. In addition to airframe reducing our carbon footprint by continuing to make
MRO, we are also expanding our freighter conversion our solutions and operations greener. For instance,
capacity such that by 2024, we will be able to induct through the development of engine nacelles for
over 60 Airbus aircraft for conversions per year, increasingly integrated propulsion systems, we help
compared with just under 20 conversions in 2021. bring about lower overall weight, better performance,
and reduction in fuel consumption. In our daily
Enhancing Productivity with Technology operations, we are using more solar energy. In 2021,
Our operations will be even more automated we installed more solar panels at our aerospace
and digitised so that we can be more nimble and facilities in Singapore to generate enough clean energy
adaptable, especially when operating under to meet about 30% of our electricity needs, up from
dynamic market conditions. Smart technologies 10% the year before. Our other facilities in regions
are increasingly deployed across our MRO and such as China and the U.S. are similarly stepping up
OE manufacturing operations, enabling us efforts to adopt the use of solar energy.
→
KEY FO CUSES FOR 2022
→ Build on value proposition → Gain bigger share in freighter → Accelerate digitalisation

with integrated OE market by building up and automation to achieve
manufacturing, MRO and freighter conversion capacity higher productivity and
asset management solutions and leasing business cost efficiencies

Urban Solutions
& Satcom
→ Expanded Smart Mobility → Secured landmark → Continued to lead in

capabilities and global Smart City projects in satellite ground segment
track record through new Singapore and around with technology innovation
partnerships and key wins the world
With the pandemic continuing to play out in 2021, capabilities will accelerate our growth and advance
the global economy saw cautious and uneven our Smart City leadership position. This will bring us
recovery across geographies and industries. This closer to achieving our vision of enabling connected,
contributed to delays in Smart City projects around resilient and sustainable cities that enhance the
the world, a situation exacerbated by the global quality of life for communities around the world.
semiconductor chip shortage.
SMART MOBILITY
However, with land transport and utilities projects
deemed as critical infrastructure projects, our Smart Smart Mobility is a key focus area in our Smart City
Mobility and Smart Utilities and Infrastructure growth strategy and we continually strive to be at the
businesses saw a gradual resumption in business forefront of mobility technologies to help cities tackle
activities and continued to secure contracts with their mobility challenges. Amid a challenging business
new and existing customers across the world. We landscape, our Mobility Rail business continued its
also announced our intention to acquire TransCore, a momentum, strengthening its foothold in Singapore
leader in the electronic toll collection and congestion and Asia while making inroads into new markets.
pricing segments in the U.S.
In Singapore, our consortium with Siemens Mobility
With the pandemic highlighting the fragility of global secured a $180m contract to renew and modernise
supply chains, we set up Singapore’s first meltblown the communications system for Singapore’s North-
filter production facility to produce medical-grade South and East-West Lines and the Bukit Panjang LRT,
polypropylene filter material, the critical layer in the first of its scale since the lines started operations.
masks, to ensure ready access to the critical raw We also secured contracts to implement various smart
material needed for our mask production. metro solutions for other lines in Singapore including
the Jurong Region Line and the Downtown Line.
Despite softened demand in travel-related segments,
our Satcom business continued to secure contracts to We continued to strengthen our presence in existing
enable cost effective, high-speed connectivity across rail markets while making forays into new ones. Our
the world, helping customers expand and move into consortium with Hyundai Rotem was awarded a
new business areas. $445m contract to provide turnkey rail services for
the Kaohsiung MRT Red Line Extension in Taiwan.
We believe that our strategic ecosystem partnerships In Australia, Egypt and Romania, we secured
and continued efforts to invest in, and develop our contracts to deploy our smart metro solutions on


→ Urban Solutions & Satcom
Australia's Cross River Rail, Egypt’s 10th of Ramadan

City Railway and Romania's Bucharest Metro Line 5.
These add to our growing Mobility Rail track record of
over 200 projects in 50 cities across Asia, the Middle
East and the U.S.
To extend our Smart Mobility expertise to new markets,

we entered into an MOU with MSI Global, a subsidiary
of Singapore’s Land Transport Authority (LTA), to
foster future collaboration in rail projects overseas.
The complementary capabilities and synergies from
both organisations will strengthen our combined rail → We signed an MOU with Envision Digital to co-develop
offerings and position us as a strong global contender. net zero carbon digital building innovations
In land transport, we developed the Smart Traffic

Junction solution that leverages Artificial Intelligence
(AI), data analytics and Internet of Things (IoT) SMART UTILITIES AND INFRASTRUCTURE
for enhanced urban traffic management. This will
help pave the way for Vehicle-to-Everything (V2X) We continued to deploy best-in-class IoT technologies,
communications to improve road safety, traffic data and video analytics, and advanced network
efficiency and a more sustainable transport network. solutions to help cities move to real-time data-driven
management systems to provide a connected, safer
We also provided our fleet management and and more sustainable environment for communities.
operation services to support the LTA’s public bus
operations in Singapore, and contributed our In one of the largest scale deployments of its kind, our
expertise to the development of a Smart Mobility AGIL Smart Lift Monitoring solution will be installed on
masterplan for a city in the Philippines. lifts in Singapore starting this year. Through 24/7 remote
lift status monitoring and centralised real-time visibility
As part of Singapore’s goal to have its entire bus of lift operations across brands, models and locations,
fleet run on clean energy by 2040, we delivered to the solution is set to transform the upkeep of lifts and
the LTA 20 new single-deck, three-door electric improve reliability, safety and productivity.
buses that can be charged quickly during short
layovers at interchanges and depots via overhead Further afield, our Telematics Wireless T-Light Galaxy
pantograph chargers. Smart Street Lighting solution with AGIL IoT platform
will manage over 300,000 street lights and 25,000
sensors and devices in Rio de Janeiro, making it one
of the world’s largest single deployments of a city-
wide public smart street light control project. Besides
providing reliable public street lighting to enhance
safety and quality of life for residents, the solution will
← We will be providing reduce operational and energy costs, and help the city
our Passenger lay the foundation for a smart future. At the same time,
Information
System solution we continued to extend our Water Advanced Metering
for Egypt’s 10th Infrastructure (AMI) solution to help cities in the U.S.
of Ramadan
City Railway
better manage their water operations and reduce
supply disruptions. These projects contribute to our
growing track record of over 15 million wireless nodes
and IoT solutions in cities worldwide.
Supporting the Singapore Green Plan 2030, we entered

into an MOU with Envision Digital to co-develop an
end-to-end net zero carbon urban infrastructure
solution. The collaboration includes building a cloud-
based, Integrated Net Zero Carbon Digital Building
Suite that connects and facilitates real-time data
flows across our smart digital building solutions.
41

URBAN ENVIRONMENT SOLUTIONS
We made strides in respiratory protection and started

operations at our new facility to produce medical-
grade polypropylene filter material, the critical filter
layer in masks. The first such facility in Singapore, the
local production of meltblown filter material ensures
ready access to the critical raw material needed for
our production of medical-grade and industrial-grade
Personal Protective Equipment such as surgical masks
and N95 masks. This allows us to vertically integrate our
mask production operations to strengthen Singapore's
mask supply chain resilience, ensuring our healthcare
and frontline workers are protected.
Extending our range of respiratory protection

innovations, we launched our new high performance
→ AGIL Smart Junction Suite optimises AIR+ Reusable Mask with anti-microbial and anti-
the efficiency of urban road networks haze protection. The AIR+ Reusable Mask provides a
to improve travel experiences sustainable and ergonomically designed option for
consumers seeking enhanced respiratory protection.
SATELLITE COMMUNICATIONS
In Smart Security and Automation, we continued to
incorporate advanced technologies such as machine We saw progressive pick-up in business activities
learning, AI and robotics across our solutions to help across most of our satcom market segments.
organisations boost responsiveness, operational However, recovery in the aviation and maritime
performance and efficiency in dynamic environments. cruise segments remained the weakest due to
During the year, we secured contracts to deploy our continued restrictions on global travel.
Smart Security solutions for various public agencies in
Singapore, including an Access Control System at the Despite the challenging environment, including
Jurong Island Checkpoint. the global shortage in semiconductor chips impacting
our supply chains, our Satcom business continued
AUTONOMOUS SOLUTIONS AND ROBOTICS to lead in our key market segments and remained
steadfast in our vision of shaping the future of how
To help Singapore build a thriving mobility value chain, the world connects.
we served as the AV Bus Consortium and Programme
Lead for the pilot deployment of an autonomous We continued to achieve breakthroughs in ground
transport revenue service, in an initiative led by infrastructure solutions that enable satellite connectivity
Singapore’s Emerging Stronger Taskforce’s Alliance for around the globe in new and innovative ways. Our
Action on Robotics. The revenue service, the first of its satellite-based IoT solution enabled customers to
kind in the Asia-Pacific, successfully demonstrated leverage their existing hub infrastructure and deploy
Singapore’s ability to operationalise paid autonomous our portfolio of compact, lightweight IoT terminals.
vehicle (AV) services that meet commuters’ need for Featuring a tightly integrated satellite modem and
safe, reliable and efficient transport. flat-panel antenna design, these terminals allow
quick activation of fixed and mobile IoT applications
We also delivered and commissioned 10 autonomous across the transportation, energy, mining, utilities,
shuttles designed to transport personnel and supplies agriculture and construction markets. We were also
at security installations in Singapore. The autonomous selected by Eutelsat as the platform-of-choice for their
shuttles increase efficiency, allowing manpower to be new ADVANCE network-as-a-service offering which
redeployed for ops and training support. provides flexibility and cost effectiveness for satellite
service providers.
Furthermore, we started our delivery of fully electric
Automated Guided Vehicles (AGV) and automated Through our comprehensive solutions portfolio, we
chargers to PSA Corporation for the new Tuas Mega expanded network connectivity in emerging markets
Port, a landmark development in Singapore’s and helped customers capture growth opportunities.
maritime history. In the cellular backhaul segment, our Dialog® platform


with Mx-DMA® return technology was selected by a

→ Satellite imaging and geospatial analytics
leading mobile network operator in Latin America to
enable more effective decision-making in
support its network expansion to deliver 3G, 4G and agriculture, environmental protection, land
corporate internet services across Brazil. We partnered planning and disaster management
with Gilat Telecom to enable Vodacom to deliver 3G
cellular backhaul services across the Democratic
Republic of Congo and enabled satellite operator
Kacific to deliver high-speed, low-cost and ultra-
reliable broadband connectivity to rural and suburban
areas in the Pacific and Southeast Asia.
Our satellite imagery and geospatial analytics

business continued to drive new collaborations
to grow its solutions portfolio, while maintaining its
focus on R&D to deepen domain capabilities.
We partnered with BlackSky, a leading provider of

real-time geospatial intelligence and global monitoring
services to offer customers in Southeast Asia an OUTLOOK
expanded portfolio in satellite imaging and insights
solutions. We also entered into an MOU with the Smart Cities
National University of Singapore’s Centre for Remote Cities today experience the benefits of high density
Imaging, Sensing and Processing (NUS-CRISP) to living, but along with those advantages come challenges
collaborate on R&D and to commercialise advanced like congestion, security threats, pandemic spread and
remote sensing technologies and geospatial imagery increasing carbon emissions.
analytics solutions. These have applications in areas
such as urban planning, infrastructure development, Smart and green technologies are presenting new
maritime safety and security, environmental monitoring opportunities for cities to pivot to the ‘new normal’
and agricultural growth tracking. of living with the pandemic, and to become more
sustainable. Post-pandemic economic recovery
With our end-to-end capabilities in supporting plans will centre around accelerating digitalisation
space missions, our teams are working to prepare and technologies that improve efficiency and
two satellites for launch in 2022, namely the DS-EO strengthen resilience, to enhance the quality of
satellite which is co-owned with Singapore’s Defence life for communities.
Science and Technology Agency, and the NeuSAR
satellite built by DSO National Laboratories. Mitigation measures to the impact of climate change
will increasingly define smart city agendas. The
With higher resolution and multispectral imaging, the increased focus on sustainability and shift towards
DS-EO satellite will support whole-of-government electrification will create opportunities in areas like
applications and better meet needs in areas such smart infrastructure and electric vehicles.
as maritime security and oil spill detection, while
enhancing our commercial satellite imagery services. With our comprehensive and integrated suite of Smart
Singapore’s first small satellite pathfinder, NeuSAR, Mobility, Smart Utilities and Infrastructure, and Urban
aims to explore the commercial potential of a micro- Environment solutions powered by deep technology
satellite constellation to better support growing capabilities and expertise, we are well-poised to help
customer demand for varied satellite imagery needs. cities navigate the new normal and transform into
connected, resilient and sustainable spaces.
Smart Mobility
With over two-thirds of the world’s population
projected to live in urban areas by 2050, mobility
We continued to achieve remains an integral component of cities. While
breakthroughs in ground COVID-19 has led to plummeting demand for urban
transport, it is set to pick up with workforces returning
infrastructure solutions that enable to workplaces and the gradual reopening of
satellite connectivity around the international borders.
globe in new and innovative ways.


Sustainable transport will be the focus of transport

→ Our electric Automated Guided Vehicle
authorities and technology like AI and data analytics
provides automated container transport
in transport infrastructure will enable governments to at the new Tuas Mega Port
better support complex operations as well as deliver
enhanced commuter travel experiences. Increasingly,
efficient and affordable options for seamless
point-to-point journeys via a combination of public
transport, shared mobility and even autonomous rides
facilitated by Mobility-as-a-Service applications, are
being favoured. This trend further necessitates the
demand for more connected public transport and
intelligent road systems.
Our comprehensive suite of mobility rail and road

products spanning smart metro solutions, intelligent As a key contributor to Singapore’s AV ecosystem,
transportation and congestion charging solutions, we actively collaborate with industry players to
coupled with ongoing capability developments and accelerate AV development and adoption. We remain
strategic partnerships, place us in a strong position to laser focused on enhancing our end-to-end AV
help transport regulators and operators tackle their solutions to help cities move towards an autonomous
mobility challenges now and in the future. and more sustainable future.
The growing demand for more fuel-efficient and Robotic automation will continue transforming the
low-emission vehicles, supported by tightening healthcare, logistics and manufacturing sectors. Gains
government regulations on emissions, is set to drive in speed and accuracy, cost efficiencies, productivity,
the burgeoning growth of the electric vehicle (EV) as well as health and safety will continue to spur
market. automation adoption. Our experience in developing
next-generation autonomous mobile robots for the
In Singapore, the Green Plan 2030 will see all land healthcare segment, coupled with experience in
vehicles running on cleaner energy by 2040. With delivering AGVs for seaport operations will stand us
accessibility to charging infrastructure critical to in good stead to leverage future opportunities in this
support the EV transition, 60,000 charging points segment.
will be installed across the country by 2030. Transport
authorities have also started rolling out electric buses Smart Utilities and Infrastructure
progressively since 2020 and are trialing various Climate change and the pandemic have shone a
charging options at depots and interchanges. spotlight on the importance of IoT technologies in
helping cities strengthen resilience and pave the
Building on our experience in deploying over 2,000 EV way to sustainability.
charging stations overseas and supplying EV buses,
we will continue to strengthen our EV capabilities to Across cities, utility systems are increasingly
capture future opportunities in this emerging space. modernised with smart sensor technologies to
drive efficiencies and to optimise renewable energy
Autonomous Solutions and Robotics injections to move cities closer towards net zero
AVs are poised to lead the next chapter of urban outcomes. Smart water grids help to reduce network
mobility, opening doors for new applications and leakage, while smart street lighting optimise operations
industry collaborations that will transform commuting. and reduce energy consumption. With smarter
By providing first- and last-mile connectivity, shared buildings and infrastructure, on-demand utilities that
autonomous transport can help commuters get around adjust to prevailing traffic and facilitate predictive
conveniently while supporting a car-lite society. maintenance become viable. Open digital platforms
which provide the overarching governance structure,
With AVs promising a more connected, efficient, safer ingest data from multiple sources and serve as the
and more sustainable transport mode, the industry is digital backbone of a city’s smart infrastructure.
set to see strong interest from both private and public
sectors. Governments, enterprises and research Pandemic-driven technology applications will continue
institutions are continuing to power autonomous to drive demand for IoT. For instance, contactless
developments, with many public-private tie-ups fueling access controls with temperature sensing and
AV ventures in cities and driving new opportunities in vaccination e-certificate features can facilitate human
this space. traffic flow at mass events.


We are well-placed to ride on the growing demand solutions together. Furthermore, to unlock the full
for IoT, smart utilities and infrastructure solutions. potential of the new capacity from new multi-orbit
Our expertise and extensive suite of smart lighting constellations, ground systems must be dynamic and
management, water AMI, smart lift monitoring and tightly integrated for the orchestration and allocation
smart security solutions will meet the diverse needs of of space resources as and where they are needed.
customers across different verticals, supporting them
on their sustainability journeys. With our satcom leadership in ground segment, we
are uniquely positioned to drive the industry forward
Satellite Communications through engineering ground infrastructure innovations
The industry is seeing significant investments in that bring unique ecosystems and technologies
new satellite constellations which will bring about together to work as a unified network. We are working
massive terabit level capacity that is set to change the to pioneer a fully digitised and virtualised ground
dynamics of the industry. Besides the continued shift infrastructure that will transform the economics,
towards High-Throughput- and Very-High-Throughput- engagement models and technologies to rapidly
Satellites, we are seeing a transition from traditional expand global accessibility of satellite communications.
GEO satellites to multi-orbit deployments of GEO, MEO We will also continue to focus on our core satellite
and LEO constellations. Advances in technology have innovation to improve the speed, scale, cost and
also enabled software-defined satellite payloads that flexibility of satcom service delivery to enhance value
can be dynamically reconfigured to specific use cases for our customers.
depending on demand.
Applying satellite technology with deep tech to
At the same time, telecommunications is being solve real-world problems continues to hold vast
significantly transformed with the introduction of potential, especially for industries such as agriculture,
5G as the master platform leading the convergence environmental protection and land planning. The
of all access technologies. This presents a pivotal pandemic has also highlighted the importance
opportunity for satellites to blend seamlessly to of remote operations and asset monitoring in the
create full interoperability as part of this end-to-end agricultural and industrial sectors.
converged network, creating new possibilities, demand
and use cases for the satcom industry. Growing demand for location-based technologies
and the remote monitoring of business operations
The satcom ground infrastructure segment sits at and critical assets will spur the growth of the earth
the intersection of space assets and terrestrial 5G observation industry. With our portfolio of satellite
telecom. Technology enablers such as virtualisation, imagery and geospatial analytics services, continued
standardisation, orchestration and cloud, will serve as focus on innovation and R&D, supported by strategic
the key building blocks for the ground infrastructure partnerships, we are well-positioned to capture growth
segment to bring satellite, terrestrial and wireless opportunities in the thriving space industry.
→ Our satcom ground solutions help to bring

affordable, life-changing cellular connectivity
to Peru's remote and rural communities.
→
→ Accelerate Smart City growth through → Develop next-generation satcom platform

Smart Mobility market leadership, enabling and capabilities to capitalise on growth
smarter utilities and infrastructure for a opportunities in hybrid and terrestrial
connected, resilient and sustainable future. cloud and 5G networks
Defence &
Public Security
→ Forged industry → Continued to build → Recognised in Forrester’s

collaborations with leading international track record Now Tech Report: AI
technology companies for our suite of defence Consultancies in Asia Pacific,
to grow and strengthen and naval solutions Q1 2021, for our breadth of
our digital capabilities services and market presence
in AI and data analytics
The Defence and Public Security cluster, comprising

Digital Systems and Cyber, Land Systems, Marine,
and Defence Aerospace business areas integrates In keeping pace with digital
the Group’s defence capabilities as one single cluster,
and is better aligned to the integrated approach global
transformation, we stepped up
defence customers are increasingly adopting for our digital capabilities and
technology development and deployment. Since the expanded our talent pool.
Group’s reorganisation and the setup of this cluster, we
are in a better position to serve the evolving needs of
our customers in defence, public security and critical
infrastructure segments.
At a time when businesses are 'living with' COVID-19, and secured new cloud managed services projects
the various businesses under the cluster performed with government agencies, enterprise and defence
strongly as they sought to strengthen their core customers.
capabilities and offerings, gain access to target markets
and pursue opportunities in international markets. Our Cloud Services business gained traction in the
regulated industries and essential services sector, and
DIGITAL SYSTEMS & CYBER secured new projects in the education sector.
Our Digital Systems & Cyber business performed We forged new strategic partnerships with
well despite the continued disruption to its business technology leaders to help customers advance digital
lines and operations. We were able to capitalise transformation and power complex workloads.
on the accelerated digital transformation needs of For instance, collaborating with Google Cloud to
our customers as well as strong demand for digital deliver secure cloud solutions in our data centres adds
technologies and solutions for critical information to our suite of end-to-end cloud and data services
infrastructure and enterprise systems. that offers our customers seamless digital services on
a resilient secure cloud that meets their requirements
Throughout the year, we focused on growing our for compliance, risk mitigation, digital sovereignty,
defence and public security customer base in and secure data storage and operational security. Our suite
outside of Singapore. As a result, we secured more of services include cloud adoption and migration,
turnkey projects compared to the year before, reaped hybrid and multi-cloud management, as well as data
higher sales of cybersecurity solutions and services, centre operations for mission-critical requirements.


→ Defence & Public Security
We also partnered with software provider CogSim We continued contributions to grow Singapore’s
Technologies to expand our training and simulation cybersecurity ecosystem through partnerships with
offerings in Europe. institutes of higher learning to build new training
facilities for future cybersecurity professionals. These
In keeping pace with digital transformation, we include the Malware Analysis Centre at Temasek
stepped up our digital capabilities and expanded our Polytechnic together with Palo Alto Networks and
talent pool to include experienced data scientists, Crowdstrike, as well as the Institute of Technical
cyber experts, cloud specialists and AI engineers. Education’s new cybersecurity training centre. We
Investment in our talent pool continued to be a also inked an agreement with the National University
central part of our growth plan and a large part of our of Singapore’s Institute of Systems Science to co-
workforce acquired new digital skills such as design develop modular graduate courses, internships and
innovation and certifications in AI, cloud and scrum joint research projects to grow our digital talent pool
methodology. and upskill our workforce.
In the AI field, we were recognised in Forrester’s Now Tech Across our lines of business, technology and
Report: AI Consultancies in Asia Pacific, 1Q 2021, for our innovation remained a key priority and we launched
breadth of services and market presence in AI and data new solutions with the latest digital technologies to
analytics. We also partnered AI Singapore to integrate AI serve our government and enterprise customers.
in the navigation autonomy of unmanned surface vessels These new solutions include the MAK ONE training
to improve collision avoidance capabilities. system for warfighters.
Strong momentum in our Cyber business was driven LAND SYSTEMS

by new wins to deliver cybersecurity operations
centres for critical infrastructure verticals in Singapore, Our Land Systems business remains focused on
as well as through the demand for our cybersecurity executing and delivering on its ongoing programmes.
products and solutions. These include the Hunter Armoured Fighting Vehicle
which is in full production and the final delivery of
We expanded our suite of cybersecurity solutions the Belrex Protected Combat Support Vehicle to
and tapped emerging technologies such as quantum Singapore’s Ministry of Defence, as well as Next-
cryptography to capture new markets. We launched generation Fast Response Cars in collaboration with
NetCrypt Mini, a new-generation Data Diode, and Home Team Science and Technology Agency (HTX)
CORVA, an advanced security posture management for the Singapore Police Force.
platform and service. Besides co-developing a
quantum key distribution enabled encryptor with We collaborated with reputable partners which
the National University of Singapore, we are building enabled us to offer our customers highly competitive
competencies in operational technology (OT) and IoT solutions. In April 2021, ST Engineering and our
cybersecurity to help customers mitigate cyberattacks partner, Oshkosh Defense, were selected by the
across IoT, IT and OT environments. National Advanced Mobility Consortium (NAMC) to
participate in the prototype phase of the U.S. Army’s
Cold Weather All-Terrain Vehicle (CATV).
We partnered Oshkosh ←
Defense to deliver two
prototypes for the testing
and soldier evaluation
phase of the U.S. Army’s
CATV programme

We partnered Oshkosh Defense to deliver two

prototypes – one General Purpose and one Cargo
vehicle, in the third quarter of 2021 for testing and
soldier evaluation. The prototypes were evaluated on
payload, mobility, crush resistance, swimming and
transportability. The U.S. Army has announced plans
to issue a follow-on production contract for up to 200
CATVs in 2022.
Land Systems also participated in its first international

tradeshow at DSEI 2021 in London, after more than a
year’s absence due to global travel restrictions. Among
its showcase of mobility and weapon solutions was → LeeBoy unveiled a limited edition paver
the Finnish army’s SISU GTP 4x4 general purpose with black-grey colour scheme as part of
its “Raised on Blacktop” campaign
armoured vehicle fitted with ST Engineering’s ADDER
Remote Weapon Station. Remotely operated below
deck or from a control console, the ADDER provides
greater protection for the operator. Lightweight and The German Federal Armed Forces selected the
stabilised for better accuracy, the ADDER range can ExtremV after a more than two years’ search for a
be mounted on tracked or wheeled armoured fighting vehicle with minimal ground pressure to drive through
or logistics vehicles and can be mounted with various rugged and swampy terrain. With a ground pressure of
weapon combinations for different user needs. about 200g/cm2 and a high payload of up to 3,500kg,
the ExtremV offers the same superior mobility and
In 2022, we expect to deliver two units of ExtremV manoeuvrability of the proven Bronco All Terrain
vehicles to the German Federal Armed Forces for Tracked Carrier.
the Meppen Fire Department in Germany. This is
part of the cooperation agreement which we signed Tapping on our expertise to continually enhance
with DICOSY GmbH, a provider of disaster control our suite of products and capabilities, we signed
systems, to exclusively distribute the ExtremV in agreements with NIMR, a manufacturer of combat-
several countries in Europe. The ExtremV will be fitted proven wheeled military vehicles and Finnish
with DICOSY’s roll-off containers and configured for automotive manufacturer, Oy Sisu Auto Ab, to explore
various missions, from emergency rescue and medical and work on integrating our hybrid electric drive (HED)
evacuation, to logistics support roles and firefighting. systems for NIMR armoured vehicles and SISU GTP
4x4 hybrid vehicles respectively.
Learn more about The HED kit converts a conventional engine-driven

ExtremeV
vehicle to an electric motor-driven vehicle. Comprising
a driveline and hybrid electric engine with a small
diesel engine as a range extender, the kit is capable
of producing high export power with reduced fuel
consumption of up to 15 – 20%. It also offers better
→ Lau Thiam Beng, President, Digital Systems inked acceleration and stealth mobility.
a MOU with the NUS-ISS to co-develop modular
graduate courses, interships and joint research
projects to grow and upskill our digital talent pool Besides offering improved range, a HED system
also provides sustainability benefits such as lower
emissions, compared to a typical diesel engine system.
We continued to receive orders for our 40mm

solutions, including new orders from international
customers as well as maintenance contracts for
small and large calibre systems.
Our specialty vehicle business, Leeboy and Hackney,

reported strong orders in 2021 despite challenging
business conditions caused by disrupted operations
and supply chains, as well as the global shortage of
electronic chips.
48

LeeBoy unveiled a limited edition paver with a black- During the year, we secured several
grey paint scheme as part of its “Raised on Blacktop”
campaign to help promote the asphalt paving industry. key naval shipbuilding contracts,
Besides the dark grey paint scheme, the special furthering our extensive track record
edition paver had additional features such as weather-
proof ticket box, phone holder and an engraved in the design and construction
serialised badge. It also offers various shovel and rake of naval vessels.
carrier options.
Following its successful pivot to retrofitting dry freight

trucks and trailers, Hackney continued to implement
several key initiatives to emerge stronger and better the first two vessels in 2021. The total contract value
from COVID-19. These initiatives included diversifying would be in excess of US$244m if the Navy exercises all
businesses to building and retrofitting truck bodies for the options.
non-food services and restaurant industries, as well
as smaller class vehicles. Hackney also introduced We were also awarded a sub-contract by the Abu
new products for rental markets and strengthened its Dhabi Ship Building PJSC (ADSB) to design and
product features and reliability. supply platform equipment and technical assistance
for the construction of four Falaj 3-class Offshore
MARINE Patrol Vessels, which will be constructed in ADSB for
the UAE Navy. The contract covers the basic design,
The global maritime industry continued to face detail design and production design of the vessels.
pressures from various challenges and disruptions
from the evolving COVID-19 pandemic. The Polar Security Cutter (PSC), a contract from
the U.S. Coast Guard, is currently in the design
During the year, we secured several key naval and engineering phase and will be ready to start
shipbuilding contracts, furthering our extensive track construction in 2022. Delivery of the first PSC is
record in the design and construction of naval vessels. scheduled in 2025. In 2021, we were awarded the
The U.S. Navy awarded us a US$149m contract for second PSC contract by the U.S. Department of
the detail design and construction of the T-AGS 67 the Navy.
oceanographic survey ship. We had previously delivered
seven Pathfinder class vessels to the U.S. Navy. The We are making good progress in the Singapore’s
T-AGS 67 will be the eighth ship in the Pathfinder class Police Coast Guard’s Fast Patrol Boats programme
and is a modified repeat design of the T-AGS 66 ship. to strengthen their coastal protection capabilities, as
we look forward to complete delivery in 2022.
The U.S. Navy also exercised the option for the fifth
Auxiliary Personnel Lighter-Small (APL(S)) Class
Watch the making of
berthing barges. The original contract awarded in 2018 Fast Patrol Boats
was for the design and construction of two firm units,
with an option for another four. We successfully delivered
Ongoing commercial shipbuilding projects include
the floating power plant, Estrella del Mar III, which
was awarded jointly to ST Engineering and Siemens.
→ Estrella del Mar III was successfully completed and
We successfully completed the construction of the
delivered to Santo Domingo for hot commissioning.
The floating power plant will provide reliable energy highly-efficient power plant in April. The plant was
supply for the Dominican Republic. safely dry-towed to its destination at Ocoa Bay, Santo
Domingo to undertake hot commissioning of its power
generation facility before final delivery to the customer
in 2022. This power plant will provide reliable energy
supply for the people in the Dominican Republic.
Watch the making of

Estrella del Mar III
Our yards were also kept busy as we welcomed a

range of naval and commercial vessels including patrol
49

on-time redeliveries to our international customers

despite the COVID-19 pandemic. These customers
include the Royal Air Force of Oman, as well as
Meta Aerospace and Lynden Air Cargo, to whom
we delivered KC-135 and C-130s respectively.
As part of our ongoing R&D efforts, we also embarked

on developing and assimilating Smart MRO
technologies to position ourselves for the future.
OUTLOOK
With digitalisation playing a pivotal role in the

post-pandemic future, we are optimistic that smart
digital solutions such as smart mission critical
systems (enabled by AI/data analytics), secured
digital enterprise systems, cybersecurity, data
centres and cloud-based solutions, will continue
to see demand going forward.
→ An aerial view of the Jurong Island
Desalination Plant which is expected We expect accelerated digital transformation and
to be completed in 2022. This will be
Singapore’s fifth desalination plant. key technology trends to gain momentum, providing
more opportunities that we can pursue. One
example is Singapore’s efforts to accelerate its Smart
Nation journey and re-engineer government digital
boats, offshore vessels, dredgers, chemical tankers, infrastructure which has spurred demand for cloud
containers and yachts for repair, maintenance and migration services. Our continued investment in
conversion work. To better address our customers' digital and related technologies will drive growth in
needs, we took a comprehensive maintenance our Cyber, AI and Cloud businesses, with a target to
approach to provide turnkey services which include triple revenues from these businesses to more than
defect rectification, preventive maintenance, spares $500m by 2026.
management and predictive analysis, thus improving
the utilisation of their assets. The outlook for the defence sector remains stable and
is likely to see positive growth, largely due to the volatile
In the area of environmental engineering, work global security climate and geopolitical landscape.
commenced for Singapore’s Tuas Nexus Integrated As such, countries are expected to continue to invest
Waste Management Facility (IWMF). As part of the in and modernise their defence capabilities. We also
long-term plan to meet Singapore’s solid waste expect to see MRO and modernisation opportunities
management needs, the first phase of IWMF is to be for military aircraft fleets worldwide.
completed and fully operational in 2025. The Jurong
Island Desalination Plant, the fifth desalination plant New areas of technology innovation include the
in Singapore, achieved the Certificate of Substantial use of 5G and cloud in emerging Future Warfighting
Completion and completed its testing and Concepts. There is also an increasing push for
commissioning activities, in preparation for Project modernising land platforms through digitalisation,
Completion and Operation Date in early 2022. data analytics and autonomy. Furthermore, we will
Capitalising on our engineering, procurement,

construction, operations and maintenance
engineering expertise and experience, we are building
on our track record in water and green technologies Our continued investment in
to expand our environmental engineering successes digital and related technologies
to other parts of Asia.
will drive growth in our Cyber,
DEFENCE AEROSPACE AI and Cloud businesses, with
We continued to work closely with our customers,
a target to triple revenues to
ensuring their operational readiness and achieved more than $500m by 2026.


New areas of technology innovation With the extension of the deadline by the
International Maritime Organisation for ballast water
include the use of 5G and cloud treatment systems, we see higher demand from ship
in emerging Future Warfighting owners rallying to the call of regulators and carrying
out the retrofit of the ballast water treatment systems
Concepts, an increasing push for for marine environment protection. In line with the
modernising land platforms as well push for sustainability, innovations such as electric/
hybrid propulsion, energy-efficient platform systems,
as next-generation smart weapons. eco-hull design for fuel efficiencies and the use
of recyclable materials for shipbuilding are in the
pipeline as we offer greener and more sustainable
solutions to our customers.
see next-generation weapons and munitions that are
smart, enabling the warfighter to be more precise and The focus on digitalisation has also fuelled
use fewer rounds. In addition to smartness, armed our culture of innovation and accelerated our
forces are also looking to “do more with less” as well as digitalisation initiatives to enhance efficiencies,
increasing R&D efforts to develop unmanned robots to enable process improvements and develop new
augment existing troops and equipment. capabilities. These initiatives will transform the way
we do business and power up the entire shipbuilding
and ship repair end-to-end cycle. This cycle includes
Learn more about the the visualisation of conceptual designs, model-
benefits of 5G
based capabilities development, robotic automation,
predictive maintenance and the digitalisation of
We continually scan the technological horizon for the work packages. At the heart of all this, is our model-
latest and newest. We are also leveraging the collective based capability development concept that uses
expertise of our Land Systems and Digital Systems 3D models to do design and engineering, conduct
businesses to select and embed relevant technologies in design reviews with customers, facilitate automation
our solutions to support and future-proof the concept of of the production processes and supervise the fleet
operations for defence forces. management and lifecycle support systems.
On the naval front, fleet modernisation and the Overall, as we pursue international defence
upward trend of defence spending will drive demand business growth, we will continue to explore options
for unmanned capabilities and integration of various such as the localisation of manufacturing or support
digital technologies, in preparation for a digital fleet operations in-country, the setting up of more
that is future-ready. We see opportunities in the use of teaming and joint venture agreements, licensing
unmanned systems for a myriad of missions, such as and technology transfer, as well as local capability
mine detection and neutralisation, force protection or investments.
manned-unmanned teaming operations.
Our laser focus on technology and innovation,
Against the backdrop of energy transition and greener working alongside the Group’s Engineering
technologies, there is a shift in focus towards the Centre and Technology Office to drive advanced
renewables and offshore wind segments. We are well- technology and engineering applications to meet the
positioned to capture the growth in these segments requirements for defence and security, and critical
with our experience and expertise in design, build, infrastructure needs will put us in good stead. The
maintenance and conversion of specialised vessels Group has made clear its goal for the next five years
like the Service Operation Vessel, Crew Transfer Vessel, till 2026, and the businesses across the Defence &
Wind Turbine Installation Vessel as well as various Public Security cluster are well positioned to support
installation and support vessels. this growth.
→
→ Leverage digital technologies → Expand product suite in → Pursue international

across lines of business, growing segments, e.g. opportunities in defence
e.g. AI, 5G & Satcom, cybersecurity and cloud to and public security
cloud, AR/VR, to strengthen expand market footprint through partnerships and
core capabilities collaborations in key markets

FINANCIAL REVIEW
GOOD SET OF FINANCIAL RESULTS FOR FY2021 Economic Value Added (EVA) increased by 9% y-o-y
to $313.0m.
In FY2021, the Group delivered a good set of results
as all business segments registered growth despite The Group ended the year with a robust order book
persisting pandemic challenges. of $19.3b, of which $6.6b is expected to be delivered in
FY2022.
The Group posted revenue of $7.7b, an increase of
7.5% from $7.2b a year ago. Profit before tax grew The Board has recommended to pay shareholders a
from $534.4m to $637.6m, an increase of 19% year- final dividend of 10.0 cents per share. Together with
on-year (y-o-y). A combination of cost savings net the interim dividend of 5.0 cents per share paid in
of reinvestments in future growth areas and partial August 2021, total dividend for FY2021 is 15.0 cents
business recovery has more than offset a $149m per share.
y-o-y reduction in government support. Excluding
government support, EBIT for FY2021 improved by FINANCIAL POSITION
93% y-o-y, reflecting strong underlying performance
amid continuing pandemic challenges. Profit As at 31 December 2021, the Group’s total assets at
attributable to shareholders grew 9% y-o-y to $570.5m $10,516m were higher as compared to the prior year,
from $521.8m. due largely to increased business activities.
→ TOTAL ASSET DEPLOYMENT ($m)
2021 10,516
2020 9,964
0 2,000 4,000 6,000 8,000 10,000 12,000
Property, Plant & Trade Receivables, Contract

Intangibles and Bank Balances and
Equipment and Inventories Assets, and Advances
Other Assets Other Liquid Funds
Right-of-Use Assets and Other Receivables
The average capital employed in 2021 was $5,532m, similar to FY2020.
→ CAPITAL EMPLOYED ($m)
2021 5,532
2020 5,519
0 2,000 4,000 6,000
Borrowings Equity Others

FINANCIAL REVIEW
→ TOTAL ASSET BY GEOGRAPHY (%) CAPITAL EXPENDITURE
2021 In FY2021, the Group invested $320m (2020:

$196m) in capital expenditure, attributable
2
to Commercial Aerospace ($199m), Urban
18 Solutions & Satcom ($31m) and Defence &
2
Public Security ($90m). During the year, the
17
2020
Group invested in capacity and capability
buildup to support customer programmes,
aircraft and engines for the Aviation Asset
Management business, mask production facility
54 54 as well as IT infrastructure enhancements.
27
26
Asia U.S. Europe Others
→ CAPITAL EXPENDITURE BY SEGMENTS (%) → CAPITAL EXPENDITURE BY GEOGRAPHY (%)
2021 2021
1
19
28 2
11
2020 2020
41
43
54
19 33
61
10
62
16
Commercial Urban Solutions Defence & Asia U.S. Europe Others

Aerospace & Satcom Public Security

FINANCIAL REVIEW
TREASURY MANAGEMENT for a range of tenors up to 397 days at competitive

financing costs versus bank loans. Although the
Given its international operations, the Group is proceeds of the Notes issued under the Programme
exposed to various financial risks, including foreign will continue to be used for general corporate purposes,
exchange, liquidity, interest rate and credit risks. they may also be used as bridge financing for the
The Group has established treasury policies and Group's proposed acquisition of TransCore (the
guidelines to mitigate these risks. completion of which is subject to satisfaction of all
conditions precedent). ST Engineering North America
Treasury activities are handled by the Group’s wholly has concurrently revised the committed revolving credit
owned treasury entity, ST Engineering Treasury Pte. facility to US$3.0b to backstop the USCP.
Ltd., to ensure effective management of the Group’s
liquidity and financial risk exposures. Banking Facilities
The Group has banking facilities of approximately
The Group, through its subsidiary, ST Engineering $16.8b (2020: $16.6b) as at 31 December 2021 to
North America, Inc. has completed the update of support business operations in the areas of trade
the U.S. Commercial Paper (USCP) Programme finance, hedging and credit.
established on 26 August 2019. With effect from
22 December 2021, the Programme limit has been As at 31 December 2021, the Group has utilised
increased from US$1.5b to US$3.0b. Under this $4.4b or 26% of its total available facilities (2020:
Programme, ST Engineering may from time to time $3.7b or 22%) with $12.4b or 74% (2019: $12.9b
issue short-term unsecured promissory notes (Notes) or 78%) remaining available.
→ BANKING FACILITIES* ($b)
Available
2021 16.8
Utilised
2021 4.4
Available
2020 16.6
Utilised
2020 3.7
0 5.0 10.0 15.0 20.0
Trade Finance Foreign Exchange Interest Rates Swaps & Cross Currency Swaps Loans
* excludes US$3b committed revolving credit facility to backstop USCP

FINANCIAL REVIEW
Foreign Exchange Borrowings

The Group has receivables and payables denominated The Group’s borrowings including lease obligations were
in foreign currencies. Where possible, the Group higher at $2.1b as at 31 December 2021 (2020: $2.0b).
offsets currency exposures across its business units
before hedging remaining currency exposures in the Apart from the lease obligations, the Group’s borrowings
market via foreign exchange forward contracts. The comprised the US$750m 1.50% Medium Term Notes
main currencies transacted in 2021 for the Group were due in April 2025, USCP and short-term and long-term
USD and EUR. loans from banks.
During the year, the Group engaged in approximately Gross debt/equity ratio and net debt/equity ratio in
$3.3b (2020: $4.2b) equivalent of foreign exchange 2021 of 0.8 times and 0.5 times respectively were
transactions. As at 31 December 2021, $1.5b (2020: similar to 2020.
$1.1b) remained as outstanding foreign exchange
transactions. 2021 2020
Gross Debt ($m) 2,115 2,047
Liquidity
Gross Debt / Equity Ratio 0.8 0.8
The Group’s cash and cash equivalents, stood at $0.8b
as at 31 December 2021 (2020: $0.7b). Net Debt ($m) 1,299 1,317
Net Debt / Equity Ratio 0.5 0.5
→ BORROWING PROFILE BY MATURITY ($m)
2021 2,115
2020 2,047
0 500 1,000 1,500 2,000 2,500
< 1 Year 1 to < 3 years 3 to < 5 years > = 5 years
→ BORROWING PROFILE BY FIXED AND FLOATING RATES ($m)
2021 2,115
2020 2,047
0 500 1,000 1,500 2,000 2,500
Fixed Floating
→ BORROWING PROFILE BY CURRENCY ($m)
2021 2,115
2020 2,047
0 500 1,000 1,500 2,000 2,500
USD SGD EUR CNY

FINANCIAL REVIEW
INTEREST COVER RATIO CASH FLOWS
The Group’s interest cover ratio increased to 14.8 times In FY2021, the Group generated strong operating cash
in FY2021 as compared to 11.2 times in FY2020. The flow of $1,114m, used $414m and $615m in investing
higher interest cover was due mainly to higher profits and financing activities respectively to end the year
as well as lower interest expense incurred in FY2021 with cash and cash equivalents (CCE) of $816m.
from lower average borrowings and lower average
interest rates. Operating Activities
The Group generated cash of $1,114m from its
operating activities in FY2021, in line with EBITDA of
→ INTEREST COVER RATIO ($m) $1,072m. In FY2020, higher cash was generated from
operating activities due largely to customer advances
800 20X received.
Investing Activities
Net cash used in investing activities of $414m in
FY2021 was attributable mainly to the Group’s
667
investment in property, plant and equipment ($312m)
and additions to intangible assets ($117m).
Financing Activities
15X Net cash used in financing activities of $615m in
554 FY2021 was mainly attributable to the payment of
14.8X FY2020 final dividend and FY2021 interim dividend
($468m), repayment of lease obligations ($73m), net
repayment of commercial papers ($54m) and interest
paid ($34m), partially offset by net proceeds from
bank loans ($97m).
11.2X
TAX
10X
The Group’s effective tax rate for 2021 was 11% (2020:
2%). The higher effective tax rate was largely due to
lower non-taxable government support received under
49.6 the Jobs Support Scheme in Singapore.
45.0
5X
0 0X
2020 2021
PBT before
Associates / Joint Interest Interest
Ventures and Expenses Cover
Interest Expenses

FINANCIAL REVIEW
SIGNIFICANT ACCOUNTING POLICIES TOTAL SHAREHOLDER RETURN
The Group’s financial statements are prepared in ST Engineering paid an interim ordinary dividend
accordance with Singapore Financial Reporting Standards of 5.0 cents per share to shareholders in August
(International) (SFRS (I)). The significant accounting 2021 and will recommend a final dividend of 10.0
policies are presented at the end of each Notes to the cents per share to shareholders at the forthcoming
Financial Statements (pages 154 to 278). Annual General Meeting. The total dividend per
share (DPS) for 2021 would be 15.0 cents. Based
The Group has applied the same accounting policies and on the average share price of $3.79, the DPS of 15.0
methods of computation in the preparation of the financial cents translates to a dividend yield of 4.0%.
statements for the current reporting period compared with
the audited financial statements as at 31 December 2020 ST Engineering’s share price ended the year at
except for the adoption of SFRS(I)s, amendments to and $3.76, a 1.6% decrease y-o-y. With a dividend yield
interpretations of SFRS(I) that are mandatory for financial of 4.0%, ST Engineering generated a total positive
year beginning on or after 1 January 2021. The adoption shareholder return of 2.4%.
of these SFRS(I)s, amendments to and interpretations of
SFRS(I) did not have a material impact on the financial
statements of the Group.
→ CASH FLOWS ($m)
Operating Activities
2021 1,114
2020 1,533
Investing Activities
2021 (414)
2020 (295)
Financing Activities
2021 (615)
2020 (959)
-1,500 -1,000 -500 0 500 1,000 1,500 2,000
→ TOTAL SHAREHOLDER RETURN (%)
2021 (1.6) 4.0 2.4
2020 (3.0) 3.9 0.9
2019 12.9 4.0 16.9
2018 7.1 4.4 11.5
2017 0.9 4.6 5.5
-20 -10 0 10 20
Capital Gain Dividend Yield

FINANCIAL REVIEW
ECONOMIC VALUE ADDED (EVA)
The Group’s FY2021 EVA attributable to shareholders of the Company of $313.0m was 9% or $26.6m higher
than that of FY2020. The increase in EVA was mainly attributable to higher net operating profit after taxation,
partially offset by higher capital charge.
2021 2020
EVA Statement ($m) ($m)
Profit before tax 637.6 534.4

Adjust for:
Interest expense 51.7 57.4
Others (30.0) 1.6
Adjusted profit before interest and tax 659.3 593.4
Cash operating taxes (81.8) (62.3)
Net operating profit after taxation - (a) 577.4 531.1
Average capital employed (Note 1) 5,531.5 5,519.0

WACC (Note 2) (%) 5.0 4.5
Capital charge (276.6) (248.4)
Adjustment to capital charge (Note 3) (12.0) (11.2)
Adjusted capital charge - (b) (288.6) (259.6)
EVA - [(a) - (b)] 288.8 271.5

Non-controlling interests’ share of EVA 24.2 14.9
EVA attributable to shareholders of the Company 313.0 286.4
Note 1: Comprises monthly equity, interest bearing liabilities and others, including general provisions.
Major Capital Components:
$m
Borrowings 2,491.3
Equity 2,758.9
Others 281.4
5,531.5
Note 2: The Weighted Average Cost of Capital is calculated in accordance with ST Engineering Group EVA Policy as follows:
i) Cost of Equity using Capital Asset Pricing Model with market risk premium at 5.0%;
ii) Risk-free rate of 1.52% (2020: 0.91%) based on yield-to-maturity of Singapore Government 10 years Bonds;
iii) Ungeared beta at 0.75 (2020: 0.72) based on observed betas of comparable companies; and
iv) Cost of debt at 2.23% (2020: 2.10%) based on actual interest rates of borrowings.
Note 3: Adjustment relates to deferred capital charge on some acquisitions.

FINANCIAL REVIEW
VALUE ADDED
The Group’s total value added for FY2021 of $3,264m was 9% higher as compared to that of FY2020.
2021 2020
Value Added Statement ($m) % ($m) %
Value added from:

Revenue earned 7,692.9 7,158.3
Bought in materials and services (4,501.2) (4,180.5)
3,191.6 2,977.8
Other income 47.2 5.1

Finance income 11.7 9.2
Finance costs (exclude interest expense) (2.7) (21.6)
Share of results of associates and joint ventures, net of tax 16.0 30.4
Total value added 3,263.8 3,000.9
Distribution of total value added

To employees in wages, salaries and benefits 2,121.8 65 1,941.5 65
To government in taxes and levies 87.8 3 30.4 1
To providers of capital on:
• Interest paid on borrowings 45.0 1 49.6 2
• Dividends to shareholders 467.9 14 468.0 15
2,722.5 2,489.5
Balance retained in business

Depreciation and amortisation 398.1 378.6
Retained profits 128.9 103.4
Non-controlling interests (3.6) 3.8
523.4 16 485.8 16
Non-production costs 17.9 1 25.6 1
Total distribution 3,263.8 100 3,000.9 100

FINANCIAL REVIEW
5-Year Key Financial Data 2021 2020 2019 2018 2017
Income Statement ($m)

Revenue 7,693 7,158 7,868 6,698 6,521
Profit
EBIT 673.6 596.4 731.9 654.3 630.8
PBT 637.6 534.4 695.2 620.7 611.8
Net Profit 570.5 521.8 577.9 494.2 502.6
Balance Sheet ($m)

Property, plant and equipment,
and right-of-use assets 2,352 2,296 2,289 1,743 1,719
Intangible and other assets 2,877 2,686 2,622 1,753 1,707
Inventories 1,261 1,269 1,312 1,184 1,082
Trade receivables, contract assets, and
advances and other receivables 3,210 2,982 2,845 2,477 2,166
Bank balances and other liquid funds
and funds under management 816 731 453 416 1,350
Current liabilities 4,680 4,289 5,446 3,851 3,587
Non-current liabilities 3,168 3,100 1,584 1,187 1,941
Share capital 896 896 896 896 896

Treasury shares (33) (24) (27) (9) (23)
Capital and other reserves 2 18 (37) 46 52
Retained earnings 1,548 1,402 1,390 1,313 1,290
Non-controlling interests 255 282 269 288 281
Financial Indicators
Earnings per share (cents) 18.30 16.74 18.53 15.85 16.13
Net assets value per share (cents) 77.49 73.59 71.32 72.00 71.09
Return on sales (%) 7.4 7.3 7.5 7.7 8.1
Return on equity (%) 23.6 22.8 26.0 22.0 22.7
Return on capital employed (%) 10.4 9.6 12.3 13.6 12.7
Dividend
Gross dividend per share (cents) 15.0 15.0 15.0 15.0 15.0
Dividend yield (%) 4.0 3.9 4.0 4.4 4.6
Dividend cover 1.2 1.1 1.2 1.1 1.1
Productivity Data
Average staff strength (numbers) 22,405 23,103 22,494 21,418 21,541
Revenue per employee ($) 343,355 309,842 349,794 312,724 302,728
Net profit per employee ($) 25,465 22,588 25,693 23,076 23,334
Employment costs ($m) 2,128.2 1,948.1 2,291.7 1,999.1 1,944.6
Employment costs per $ of revenue ($) 0.28 0.27 0.29 0.30 0.30
Economic Value Added ($m) 313.0 286.4 317.0 306.0 303.8

Economic Value Added spread (%) 5.2 4.9 6.5 7.6 6.9
Economic Value Added per employee ($) 13,972 12,398 14,094 14,285 14,103
Value added per employee ($) 145,673 129,893 155,338 137,092 132,512
Value added per $ of employment costs ($) 1.53 1.54 1.52 1.47 1.47
Value added per $ of gross property, plant
and equipment ($) 0.75 0.73 0.87 0.76 0.76
Value added per $ of revenue ($) 0.42 0.42 0.44 0.44 0.44
The Group adopted SFRS(I) 16 effective on 1 January 2019 and applied the modified retrospective approach with no restatement of
comparative information.

FINANCIAL REVIEW
→ REVENUE ($b)
2021 7.69
$7.69b
2020 7.16
2019 7.87
2018 6.70
2017 6.52
→ PROFIT BEFORE TAX ($m)
2021 637.6
$637.6m
2020 534.4
2019 695.2
2018 620.7
2017 611.8
→ NET PROFIT ($m)
2021 570.5
$570.5m
2020 521.8
2019 577.9
2018 494.2
2017 502.6
→ ORDER BOOK ($b)
2021 19.3
$19.3b
2020 15.4
2019 15.3
2018 13.2
2017 13.4

INVESTOR RELATIONS
→ Over 60 institutional investors and sell-side analysts

attended the Group's Investor Day in November.
In 2021, despite COVID-19 challenges, ST Engineering We also engaged proactively with the investment
continued to proactively engage the global investment community after the announcement of our proposed
community through group and one-on-one meetings, acquisition of TransCore and conveyed how it provides
conference calls, investor conferences and roadshows. strategic and financial benefits to the Group, as well as its
We maintained strong links with sell-side analysts minimal impact on our credit ratings and balance sheet.
and continued to be well-covered by 14 analysts who
issue regular reports. We monitor analyst, industry ST Engineering goes beyond conveying a financial
and media reports closely as part of our efforts story, to cover ESG communications to meet investor
to continuously improve disclosures and investor expectations. In 2021, we engaged investors, ESG-
relations practices. related research and rating agencies to communicate
the Group’s sustainability framework, priorities and
During the year, we held our half-yearly results goals. Relevant functions and departments such as
briefings and market update briefings for the first and Sustainability, Human Resources and Risk & Assurance
third quarters. In addition to financial performance, also participated in these exchanges. We value these
we regularly shared with the investment community exchanges as they help to sharpen our ESG disclosures.
how we were navigating the challenges posed
by COVID-19, especially in the Commercial Retail investors are an important stakeholder to us.
Aerospace as well as Urban Solutions & Satellite We strongly encourage them to attend our annual
Communications business areas. We also shared general meetings and they are welcome to contact
more colour on our digital and cyber business and us directly via email or telephone. Our 24th Annual
how it has grown in tandem with increasing demand General Meeting (AGM) was held virtually in April due
for digitalisation due to the pandemic. to COVID-19. Shareholders were encouraged to submit
their questions ahead of the AGM and our responses
Apart from these quarterly sessions, we held an were posted on SGXNet three days before the meeting.
Investor Day in November to share our longer term To cater to shareholders who did not submit their
growth strategy, with business leaders presenting questions in advance or who had additional questions,
and discussing our strategic focus areas and five-year we allowed time for ‘live’ Q&As at the meeting with many
plan (2022-2026). The Investor Day, attended more questions posted, which the Board responded
in-person and virtually by over 60 investors and to candidly. We received several ‘live’ written messages
sell-side analysts, was an important engagement at the meeting and emails from retail shareholders
platform for us to reiterate and reassure that our complimenting that the AGM was well organised and
management, while navigating disruption effectively, lively despite it being a virtual session.
continues to focus on our long-term growth strategy.
The Investor Day presentation materials were posted
Visit our
on SGXNet and continues to be available on our Investor Relations webpage
corporate website.

INVESTOR RELATIONS
We adopted the same format for the Extraordinary → SHAREHOLDINGS BY TYPE 1 (%)
General Meeting (EGM) that we called in December for
shareholders to approve the acquisition of TransCore.
Questions were submitted and our responses were posted
on SGXNet and our corporate website two days prior to 21.3
the closing date for the proxy form lodgment. We adopted
real-time video conferencing and live chat to enable
shareholders to raise questions and for our management
to address them live at the EGM. 50.8
Read our Conduct of General Meetings

in the Corporate Governance Report 27.9
We maintain an updated corporate website that serves

as the primary source of corporate information, financial
data, sustainability as well as business updates and Temasek Holdings 2 Institutional Retail
developments. A dedicated Investor Relations (IR) section
contains a wealth of investor-related information including
stock exchange announcements, investor presentations, → SHAREHOLDINGS BY
financial results and annual reports, as well as information COUNTRY OF RESIDENCE 1 (%)
on Shareholder Meetings. Material information is posted
on the IR section immediately after release to SGXNet to 6.6
ensure fair, equal and prompt dissemination of information. 5.4
Our IR communication principles and mechanism of 13.3

engagement are captured in our Investor Relations
Policy, available in the ‘Investor Relations’ section of
our website. We constantly review our level of disclosure
to align with best practices, and to ensure that we
provide information necessary for investors to make
well-informed investment decisions.
74.7
SHAREHOLDER PROFILE
Temasek Holdings remains our largest shareholder with

Singapore U.S. UK Europe & Others
about 50.8% of total issued shares as at 31 December
2021. Another 28% was held by institutional shareholders
Notes
and the remaining 21% held by retail shareholders. In terms 1
Shareholding profile was derived from analysis of
of geographic distribution, Singapore shareholders held ST Engineering’s share register as at 31 December 2021.
approximately 75%, followed by those in the U.S. (13%), 2
Total shareholdings of Temasek Holdings and Vestal
UK (5%) and Europe and others (7%). Investments as at 31 December 2021.
→ 2021 INVESTOR RELATIONS CALENDAR
1Q 2Q 3Q 4Q
• Annual management lunch • 1Q2021 Market Update • 1H2021 results • UOB Kay Hian Asian Gems
with sell-side analysts • 24th Annual General announcement and Virtual Conference
• FY2020 results Meeting webcast • 3Q2021 Market Update
announcement and • Nomura Investment Forum • Post-results investor • Investor Day 2021
webcast Asia meetings
• Extraordinary General
• Post-results investor • SGX-Credit Suisse Meeting
meetings Singapore Corporate Day
Complemented by ongoing group and one-on-one IR meetings throughout the year

AWARDS
People Excellence
2021 Singapore 100 Women in Tech AMT Employer Diamond Award of Excellence
→ By Singapore Computer Society, SG Women in → By U.S. Department of Transportation Federal
Tech and Infocomm Media Development Authority Aviation Administration
• Tan Lee Chew, President Commercial • VT San Antonio Aerospace
• Chiang Yoke Fun, Senior Vice President,
Head of Singapore Digital Business Best Places to Work 2021 (Large Company)
• Dr Vrizlynn Thing, Senior Vice President, → By Washington Business Journal
Head of Cybersecurity Strategic Technology Centre • iDirect Government
Defence Technology Prize 2021 Individual

(Engineering) Award Winner
→ By Ministry of Defence
• Han Meow Kwang, Head, Centre
of Excellence at Land Systems
Top Five Most Attractive Engineering and

Natural Science Employers in Singapore
→ By Universum
→ Han Meow Kwang received the prestigious Defence Technology Prize

for his contributions in building up the indigenous capabilities for the
design, development and production of the solid propellant rocket motor.
Business Excellence
Most Outstanding Company in Singapore Top Companies in Singapore 2021
(Industrials sector) → By LinkedIn
→ By Asiamoney
Charity Platinum Award
Most Profitable Company → By Community Chest
(Industrial Conglomerates sector)
→ By The Edge Singapore Total Defence Awards
Overall Sector Winner
(Industrial Conglomerates sector)
→ By The Edge Singapore

Operations & Product Excellence

ASMI WSH Innovation Award (Silver & Bronze)
→ By Association of Singapore Marine Industries
• Marine
Defence Technology Prize 2021 Team

(Engineering) Award Winner
• COVID-19 Command and Control
(C2) Systems → AIR+ was recognised for its distinctive brand identity and
its ability to differentiate itself in a competitive market.
Factory of the Future Award
→ By Agoria
• ST Engineering iDirect Singapore Good Design Award 2021 (SG Mark) -
Branding
Safety and Health Award Recognition for Projects → By Design Business Chamber Singapore
→ By Workplace Safety and Health Council and • AIR+ Reusable Mask
Ministry of Manpower
• Urban Solutions Top Mobile User Experience Innovation Award
→ By Mobile Satellite Users Association
• ST Engineering iDirect
WSH Innovation Award (Gold) 2021

→ By Singapore Manufacturing Federation
• Land Systems
WSH Innovation Award

→ By Workplace Safety and Health Council
• Land Systems
→ ST Engineering iDirect’s Manufacturing Competence

Center was awarded the Factory of the Future for
its best-in-class, future-proof and sustainable
manufacturing technologies and processes. Learn more
Corporate Excellence & Resilience Award

→ By Singapore Corporate Awards 2021
ST Engineering Chairman, Kwa Chong Seng →

received the Corporate Excellence & Resilience
Award from Ms Indranee Rajah, Minister,
Prime Minister’s Office and Second Minister
for Finance and National Development at the
Singapore Corporate Awards ceremony.
(Photo: The Singapore Corporate Awards)

SUSTAINABILITY
BOARD STATEMENT
→ The Board of Directors oversees the management of material

environmental, social and governance (ESG) factors for
ST Engineering and takes them into consideration in setting
the Group’s strategic direction.
We remain steadfast in positively impacting people’s lives and

the health of our planet by operating responsibly in our
communities and the wider global ecosystem. We create value by
addressing real-world problems, including those related to climate
change, urbanisation and pandemics. We harness technology and
innovation to enable a more secure and sustainable world.
We link a range of operational, financial and non-financial key

performance indicators to our material ESG factors to encourage
the adoption of strategies and practices that are aligned to the
sustainable and long-term success of the Group.
Responsible
Global Citizen
Doing Our Part
Building Trust &
Managing Risks
Enabler of a
Sustainable
World
Enabling Our Customers
Growing with Partners &
Seizing Opportunities
Read our
ST Engineering
Sustainability Report

SUSTAINABILITY
GROUP PRESIDENT
& CEO MESSAGE
Dear shareholders,
ST Engineering is committed to sustainability. DOING OUR PART
2021 has been an eventful year for our sustainability We continue to reduce our impact on the environment,
journey, as we stepped up to decarbonise and better bring value to our people and maintain a high standard
organise ourselves for sustainability across the Group. of governance practices. These actions build trust and
credibility with our wide range of stakeholders.
Our efforts include:
We increased the number of buildings with solar
• Setting a target to halve our absolute greenhouse photovoltaic (PV) systems to 39 in our Singapore
gas (GHG) emissions by 2030 compared to 2010, operations. In the spirit of the circular economy, we
as we continue our journey alongside global efforts provided over 1,000 decommissioned laptops to be
towards net zero; refurbished for school children from families in need,
• Integrating sustainability considerations into our to help in their home-based education. We contributed
latest five-year business plans; $2.8m in our philanthropic efforts and community
investments. This is to encourage volunteerism among
• Launching Group-wide Eco-Initiatives to further
our employees and positively impact our communities.
increase eco-consciousness in our workplaces
We significantly enhanced our policies for export
and align our work habits and culture;
control and intermediaries and strengthened our
• Being accepted as a signatory of the UN Global governance processes and disclosures.
Compact (UNGC) and committing to its 10
principles in the areas of Human Rights, Labour, ENABLING OUR CUSTOMERS
Environment and Anti-Corruption;
• Launching a new innovation platform - In.Vent - We are committed to enabling a sustainable world
as a pathway for the Group to build new ventures, through our products and solutions.
with a strong emphasis on business and
sustainability impact; and Our aerospace products and conversion solutions
significantly extend the life of aircraft. Our first floating
• Incorporating Task Force on Climate-related power plant enables a reduction in emissions. Our
Financial Disclosures (TCFD) and Sustainability suite of Smart City solutions helps cities reduce
Accounting Standards Board (SASB) reporting energy consumption and traffic congestion.
elements in our Sustainability Report.
A PURPOSE-DRIVEN GROUP
OUR APPROACH
ST Engineering will continue to harness technology
We aim to positively impact people’s lives and the and innovation to enable a more secure and
health of our planet by being a responsible global sustainable world. Our focus is on long-term resilience
citizen. We do this by harnessing technology and and sustainable value creation for all our stakeholders
innovation to address real-world problems. We also – customers, employees, communities, shareholders,
incorporate ESG practices into our businesses globally. regulators and suppliers.
Sincerely,
→ VINCENT CHONG
Group President & CEO
28 February 2022

Sustainability Highlights
→ GHG Emissions → Green Energy
30% 8%
reduction in absolute of electricity consumption
GHG emissions over from Singapore operations
2010 base year derived from solar PV systems
on 39 buildings
→ Economic → Corporate Community

Contributions Contributions
$7.2b $2.8m
by the Group worth of community
contributions by the
Group and employees
→ People Managers → Continuous

Improvement
15% 14% $23.5m

of male of female of realised productivity
employees employees savings from continuous
are people are people improvement programmes
managers managers
→ Average → Safety Culture → Bribery

Training Hours and Corruption
21 hours 112 Zero

per employee workplace safety and cases
health activities to
promote a safety culture

SUSTAINABILITY
SUSTAINABILITY FRAMEWORK OUR STAKEHOLDERS
ST Engineering believes that creating

sustainable value for our stakeholders
is essential to the Group’s success.
Our business processes reflect
long-term and multi-stakeholder Customers Employees & Local
considerations, balancing customers’ Other Workers Communities
needs today with longer-term
developments. We strive to offer
products and solutions that enable
our customers to operate sustainably.
We are equally committed to

conducting our business responsibly. Suppliers & Shareholders & Regulators &
As a responsible military technology Collaborators Investors Governments
manufacturer, we do not design,
produce or sell anti-personnel
mines, cluster munitions and
white phosphorous munitions or
any of their related key components.
SUSTAINABILITY GOVERNANCE
Ultimate Accountability
The Board of Directors is collectively
responsible for ST Engineering's long- Board of Directors
term success. The Board provides
strategic direction and considers
sustainability issues, including the
management of material ESG Oversight on behalf of the Board
factors when formulating the
Group’s strategies and policies. Risk and Sustainability Committee
The Risk and Sustainability

Committee (RSC) oversees risk,
internal controls and sustainability Leadership
matters. The RSC also reviews and
approves the risk and sustainability Group Executive Committee
workplan.
The Group Executive Committee

(EXCO) is accountable to the Board Direction & Execution
for the implementation of these
Business Areas Group Functions
strategies and directions. The Group
Chief Strategy & Sustainability Officer
ensures that sustainability forms a
core part of our business strategy, and Coordination
that ESG considerations are integrated
into our business strategies and plans. Technology & Operational
Sustainability
Innovation Excellence
We continue our journey to adapt
and embed good sustainability
practices. We do so progressively and
systematically with strong leadership
involvement and ownership, to ensure Read our
ST Engineering Sustainability Report
that managers and employees build page 06
a culture of sustainability.

SUSTAINABILITY
MATERIAL ESG FACTORS

Why it is Material
Environmental Protection
Climate change is an issue of urgency and importance. A low carbon business strategy is
not only good for the environment, but also enables us to better respond to climate change
related regulations and price volatilities of hydrocarbon resources.
ENVIRONMENT
Productivity
Staying lean, efficient and effective in our systems and process, optimises the use of our
resources and is fundamental to maintaining our competitive edge.
Green Products & Services

Cities and organisations around the world are looking to minimise their carbon footprint
while reducing operating costs.
People Excellence
We are only as strong as our people. With a capable, motivated and agile workforce, we are
able to strengthen our talent pipeline to pursue sustainable growth.
Total Workplace Safety & Health

We are committed to “Safety Before Profit”. A safe and healthy workplace protects
workers from injury, stress and illness, and also reduces absenteeism and turnover.
It also increases productivity and raises employee morale. This duty of care extends to
our visitors and contractors working within our premises.
Quality Products & Services

Customers rely on us to meet their operational needs. Our products must be compliant with
SOCIAL
all relevant regulations and be safe to produce, operate and maintain. It must also be reliable
over the product’s lifecycle. In addition, our services must meet our customers’ requirements
and be delivered at the promised quality and within the committed turnaround time.
Responsible Procurement
We depend on a resilient and sustainable supply of goods and services to meet our
business needs. We are committed to managing our suppliers ethically and working with
them to ensure a responsible supply chain.
Economic Performance
Inclusive growth and value creation for our stakeholders are key to our long-term viability.
We are committed to delivering a sustainable and balanced triple bottom line of “People,
Planet, Profit.”
Corporate Community Contributions

We are committed to being a good corporate citizen in the places where we operate. Making
a positive impact in our host communities is aligned with our core value of compassion.
GOVERNANCE
Ethical Business & Regulatory Compliance

We comply with applicable laws and regulations in the jurisdictions where we operate.
We have zero tolerance for fraud and corrupt practices. In addition, we actively protect
our data and those entrusted to us by our stakeholders.

SUSTAINABILITY
How We Manage It UN SDGs
Environmental efforts are coordinated by the Environment Committee. All our material
business units in Singapore are certified ISO 14001 Environmental Management
Systems. Our global operations abide by relevant environmental regulations
and requirements.
Productivity efforts are coordinated by the Continuous Improvement Committee.

Initiatives such as Kaizen, quality action teams and value innovation teams are
embedded into day-to-day operations. We empower employees to identify and
eliminate waste and also recognise exemplary contributions.
Our technology community actively looks into the design and development of products
that are more sustainable. Our engineers incorporate green considerations not just
into end products, but also into responsible production and through-life support.
Through these efforts, we are able to empower and enable our customers to become
more sustainable.
Our people and culture strategy seeks to enhance our capability and capacity for
growth, build a passionate and engaged workforce, and position us at the forefront of
people practices. This proposition is realised through talent attraction and management,
career development, diversity and inclusion, a fair reward system, work-life integration
and harmonious union relations.
Workplace safety and health efforts are coordinated by the Workplace Safety & Health
Committee. All our material business units in Singapore are certified ISO 45001
Occupational Health and Safety Management Systems. Our global operations abide
by relevant workplace safety regulations and requirements.
Our quality efforts are coordinated by the Quality Committee. The majority of our
operations are certified ISO 9001 Quality Management Systems or equivalent. We design,
manufacture and service our products in accordance with industry standards and meet all
regulatory requirements. In addition, we actively work with our suppliers and collaborators
to ensure that we provide high quality bought-in parts and services. We also regularly seek
feedback from our customers to continuously improve our products and services.
Our procurement community champions the effective management of our suppliers

to align business behaviours, drive greater efficiencies, streamline processes and build
greater resilience. We work with our suppliers to embed responsible procurement
principles into our processes.
Our strategic planning community reviews the Group’s strategy in the context of global
trends and developments. Our operations and support function teams focus on
operational excellence to ensure that we continue to add value to our stakeholders and
impact our communities in a positive manner.
Corporate community contributions are coordinated by the Corporate Social

Responsibility Committee. We measure, report and communicate our corporate
community investments and philanthropy efforts.
The Risk & Assurance function oversees matters relating to governance, risk and
compliance. It has put in place a regulatory compliance framework to continually train
our global workforce on our Code of Business Conduct and Ethics. The department
also works with relevant functions and operations to strengthen compliance.

SUSTAINABILITY
CLIMATE CHANGE
The effects of climate change have become The Group Chief Strategy & Sustainability Officer
increasingly pronounced. ST Engineering is aligned assists the EXCO in ensuring that the impact of
with our stakeholders' efforts to act responsibly and climate change is taken into consideration in all
combat climate change. This includes implementing business strategies and plans. Various committees,
TCFD recommendations. In 2021, we joined the working groups and focus teams across the Group
Singapore Low Carbon Network (SLCN) as an and its business areas support the execution of
inaugural member. The SLCN aims to advance the these plans. In particular, the Operational Excellence
sharing of best practices and insights on key carbon Steering Committee (OESC), comprising the global
measurement and decarbonisation topics. operations leaders across all our business areas,
is a key platform for integrating and executing
Governance these efforts.
The Board provides oversight on all sustainability
matters, including climate-related risks and Strategy
opportunities. Briefing sessions on climate-related We identify sustainability-related risks and
topics are conducted periodically for the Board, opportunities as part of our annual five-year strategic
while detailed discussions on actions to be taken, plan review. This is discussed and endorsed by
are carried out by the Board’s Risk and Sustainability the Board’s Strategy and Finance Committee, and
Committee. forms the foundation for initiatives relating to climate
change in subsequent years.
The EXCO is accountable to the Board for the
implementation of these climate-related strategies Risk Management
and directions. Business leaders at all levels are A preliminary Physical Climate Risk Assessment was
responsible for addressing the risks and opportunities carried out for our major operating sites across the
in their respective business areas. Plans and actions world in 2021. An in-depth climate risk assessment
needed are discussed at various management for key vulnerable locations will follow in 2022. We
fora and incorporated into the strategic planning will also be examining our transition risks as we move
and annual budgeting processes. into low carbon products and operational processes,
including more detailed studies on the supply chains
of our business areas.
Metrics & Targets

We have identified relevant climate-related metrics
and targets, and these are elaborated under the
respective material ESG factors in this report.
SUSTAINABILITY
HUMAN RIGHTS
We are committed to conducting our business in a Our commitments are guided by international human
responsible manner. We adhere to labour laws and rights principles encompassed in the Universal
regulations where we operate and have zero Declaration of Human Rights, the International
tolerance for unethical labour practices such as child Labour Organization’s Declaration on Fundamental
labour, forced labour, slavery and human trafficking Principles and Rights at Work, the United Nations
in any of our operations. Global Compact and the United Nations Guiding
Principles on Business and Human Rights. These
We prohibit discrimination and harassment at our principles of respecting people’s dignity and
workplaces. We are committed to safe and healthy their inherent rights are reflected in our policies,
working conditions and the dignity of the individual. operations and relationships with our stakeholders.
We support the right to freedom of association and
encourage effective communication and consultation.
Read our Read our

Code of Business Conduct and Ethics Vendor Code of Conduct
Suppliers Customers Employees

We expect our supply chain We offer products and services All our workers are required to
partners to adhere to business that generate a positive impact adhere to honest and ethical
principles consistent with our for our customers as well as the conduct and act in accordance
own, as outlined in our Vendor communities they serve. This to our Code of Business Conduct
Code of Conduct. This includes includes improvements in quality and Ethics. This includes treating
the fair and ethical treatment of life, health, safety and security. each other with respect, and
of labour within their own abiding by our core values of
companies, as well as Integrity, Value Creation,
that of their suppliers. Courage, Commitment and
Compassion.
UNITED NATIONS GLOBAL COMPACT
ST Engineering is a signatory of the UNGC, supports

its Ten Principles and is committed to advance the
broader goals of the United Nations Sustainable
Development Goals (UN SDGs).
Learn more about our efforts to implement UNGC

principles in the Sustainability Report
page 07
We affirm our support of all 17 UN SDGs and

have identified six goals where the Group has
more contributions in terms of our internal
practices, and the products and services we
offer to our customers.
Read more about our our

Read more about our commitments
contributions to the UN SDGs
in the Sustainability Report
in the Sustainability Report
pages 07 & 08
page 08

SUSTAINABILITY
→ Environment
ENVIRONMENTAL PROTECTION
→ Set a new GHG emissions target for our → Expanded data reporting to include
global operations: 50% absolute reduction U.S. and Europe operations
by 2030, compared with 2010
→ We recognise the impact of climate change and the importance of addressing

it. We believe in conserving resources and conducting our operations more
efficiently to minimise GHG emissions and reduce pollution and waste.
GHG EMISSIONS, RENEWABLES AND In our Singapore operations, the solar PV systems
ENERGY EFFICIENCY generated 8% of the total electricity used. This was
the same proportion as in 2020, as our businesses
In 2021, the Group achieved a 30% absolute ramped up from a lower production rate.
reduction of GHG emissions with 2010 as the
base year. This translated to a 46% reduction Our business units in Singapore initiated the use
in intensity. While there was a slight increase in of electric vehicles with a pilot of eight vehicles and
emissions as operations recovered from 2020 two charging stations. We intend to replace
the Group is still on track to achieve the target the current fleet of internal combustion engine
of a 50% absolute reduction by 2030. vehicles in phases over the next few years.
Our Singapore operations consolidated their WATER CONSUMPTION AND CONSERVATION

efforts into a single GHG emissions assurance
statement. Our GHG emissions were verified In 2021, our water consumption intensity decreased by
in accordance with ISO 14064-1:2006 15% compared to the intensity in our 2015 base year.
Greenhouse Gases. In 2022, we plan for the
external assurance process to be aligned with We introduced initiatives including a water harvesting
ISO 14064-1:2018. pilot where we collected and reused rain water for
aircraft washing at our hangars, and stepped up
We continued our roll out of solar PV systems communication efforts to heighten awareness and
across our global operations to increase the shape behaviour towards water conservation.
proportion of renewables in our energy mix.
We added about 44,000m2 of solar panels in WASTE MANAGEMENT AND RECYCLING
Singapore, bringing the total to 110,000m2. This
increased the number of buildings with solar In 2021, our Singapore operations recycled 78%
panels deployed to 39, compared with 24 in 2020. of 5,900 tonnes of waste generated. The recyclables
included metal, wood, batteries and paper products.
We had no significant fines or

non-monetary sanctions related to
environmental issues in 2021.

SUSTAINABILITY
→ Environment
→ ENERGY → GHG → WATER

CONSUMPTION EMISSIONS CONSUMPTION 1
Consumption ('000GJ) Emissions ('000tCO2e) Consumption ('000m3)
1,400 200 1,200
1,200
744 778
1,000
739 150 900
18
2.6 1.9
800
100
113 117 119 600 717
600 656 638
400 559 549 50 300
480
200
0 0 0
2019 2020 2021 2019 2020 2021 2019 2020 2021
Direct Indirect Scope 1+2 Scope 3
→ WASTE RECYCLED 1
(%) Notes:
Metal 73 1 SGP: Material Singapore operations.
2 Scope 1: Direct GHG emissions from sources
Wood 18 owned or controlled by the Group.
Batteries 7 3 Scope 2: Indirect GHG emissions from the
generation of purchased electricity consumed.
Paper 2
4 Scope 3: Indirect GHG emissions from business
travel by air.
5 2021 figures have been internally verified.
We launched the Group-wide

Eco-Initiatives involving business units
across our global operations, with a
focus on three stewardship attitudes
and actions - Conserve, BYO and Recycle.
Find out more about our eco-initiatives

in our Sustainability report
page 19
KEY GOALS FOR 2022
→ Continue to reduce absolute GHG → Continue to reduce waste generation

emissions and expand initiatives globally, from operations and maintain waste
especially in renewable energy use recycling at 50% or better

SUSTAINABILITY
→ Environment
PRODUCTIVITY
→ Achieved $23.5m of realised productivity → Rolled out continuous improvement

savings from continuous improvement programmes to business units in the
programmes U.S. and Europe
→ Harnessing technology and innovation to improve our processes and

promoting skills upgrading are key drivers of the Group's productivity drive.
By optimising resource efficiency, we minimise our environmental footprint.
Continuous Improvement (CI) is at the heart of In 2021, four additional continuous improvement
our engineering heritage. Over the years, our CI e-learning courses were deployed. Consolidating
initiatives have enabled us to work smarter and all e-learning courses into a single platform has
more efficiently. improved their accessibility and usability.
Our budgeting tool allows for seamless Fifteen teams participated in the first ST Engineering
collaboration across business functions while Best-of-Best CI Award and showcased their
improving data accuracy and visibility. We accomplishments in value creation and productivity
introduced self-service online portals for our enhancements through the creative use of
employees to request for mid- to back-office technology, innovation and CI tools. Cash prizes
support. These service portals are capable of and sponsorships for a CI benchmark tour to share
performance measurement and analytics that best practices with other business units were given
generate insights on areas for improvement. to the winning team to recognise and leverage their
achievements.
In addition, we recognise the importance of
upskilling our staff through CI training. While
5S, Kaizen and Root Cause Analysis are key tools
used to improve work processes, we continue to
grow our library of e-learning modules to ensure
our staff are well trained on topics including
problem-solving tools such as Value Stream
Mapping (VSM) and Lean Management. We set up a Group Continuous
Improvement and Innovation
The Group achieved realised productivity savings framework which focuses on CI
of $23.5m from continuous improvement projects. across our businesses. Our business
This does not include realised savings from the
units welcomed the introduction of
Group’s Central Procurement initiatives, which
saved another $85.2m. We achieved a value this framework and are committed
added per employment cost of 1.53 for our to promote CI culture across our
global operations. global operations.

SUSTAINABILITY
→ Environment
Additive Manufacturing
We leveraged Additive Manufacturing (AM) to produce
design-optimised parts for our customers within a more
sustainable manufacturing ecosystem. AM effectively
enables low-quantity, high-mix production, allowing us
to produce near-to-shape products on demand and at
locations close to our customers. This helps to greatly
reduce waste, transport time and costs, enabling a
leaner and more efficient supply chain. ST Engineering’s
AM Community of Practice continues to promote
adoption of AM across the Group.
Read more about

Additive Manufacturing
iMaP Automation Value Stream Mapping

The iMaP (Intelligent Mapping and Profiling) machine VSM is an example of a Group CI
deployed at our Aerospace Engines workshop tool. It helps define, analyse and
helps reduce engine vibrations in flight. It does optimise information and material flow
this by automating engine blade weighing, profile throughout a given process. VSM also
measurement, part number capture, and blade sorting provides an overview of constraints
and distribution. Data collected is used for further and delays in a process, allowing the
analysis including compressor and turbine efficiency relevant stakeholders to investigate, as
and vibration analysis. iMaP automation has enabled well as identify areas for improvement
estimated savings of more than 2,000 manhours and correction in a timely manner.
annually for CFM56-5B & 7B engine MRO.
KEY GOALS FOR 2022
→ Increase year-on-year planned → Drive and intensify CI activities through the

productivity savings by 5% newly established Group CI office

SUSTAINABILITY
→ Environment
GREEN PRODUCTS & SERVICES
→ Enhanced tracking of R&D investments → Increased group-wide emphasis on

in green products and services across sustainability considerations in the design
our global business units and development of products and services
→ We are committed to delivering products, services and solutions that enable our
customers including airlines, aerospace OEMs, cities, government organisations
and the maritime ecosystem on their sustainability journeys.
Our products, services and solutions focus on three key themes:
REDUCE SOLVE URBAN CIRCULAR

GHG EMISSIONS AND CITY ISSUES ECONOMY
We reduce emissions by In our Smart City deployments, Our aircraft and ship
saving fuel, reducing waste, our IoT-based connected conversions allow us to
minimising road congestion, solutions optimise operational repurpose and reuse – saving
boosting energy efficiency efficiency, improve energy resources, time and costs.
and accelerating digitalisation. savings and deliver long lasting Our MRO operations extend
utility services to city residents. the life of capital assets,
Congestion We also develop and deploy whether aircraft, vehicles
Management Systems sustainable hybrid and electric or ships. We also design,
(inc. Smart Junctions) transportation solutions. build, operate and maintain
sustainable waste management
Training & Simulation
Rail Solutions and waste-to-energy facilities
Systems
that support eco-friendly waste
Smart Street Lighting
Eco-efficient Ship Designs disposal, management and
and Systems Fleet Management Systems waste water recycling.
MRO of Aircraft, Ships Electric & Autonomous
Integrated Waste and Water
and Vehicles Vehicles
Treatment Solutions
Eco-friendly Aircraft Respiratory Protection
Passenger-to-Freighter
Engine Wash Solutions Products
Conversions
Low-energy Cooling Command, Control
Ship Conversions
Systems & Communications
(inc. in hospitals, Environmental Solutions
emergency dispatch) and Recycling
Cybersecurity for
Critical Infrastructure

Command, Control
& Communications
Training &
Passenger-to-
Simulation Systems
Freighter-Conversions
Cybersecurity for MRO of Aircraft,

Critical Infrastructure Ships and Vehicles
Low-Energy Eco-friendly Aircraft

Cooling Systems Engine Wash Solutions
Integrated
Waste and Water
Treatment Solutions
Environmental
Solutions and
Recycling
Respiratory
Protection Products
Ship
Conversions
Rail
Solutions
Electric &
Autonomous
Vehicles
Fleet Eco-efficient
Management Ship Designs
Systems and Systems
Smart Street
Lighting
Congestion
Management Systems
KEY GOALS FOR 2022
→ Explore sustainability-related → Continue to quantify the environmental

technologies including those that impact of our products and solutions
potentially enable new business verticals to our customers

SUSTAINABILITY
→ Social
PEOPLE EXCELLENCE
→ Expanded and deepened the global → Strengthened learning and development

footprint of our people practices framework, accelerated workforce
digitalisation and deepened our engineering,
technology and innovation capabilities
→ People remain the cornerstone of our business. We are committed to investing

in people development and building a steady pipeline of Science, Technology,
Engineering and Mathematics (STEM) talent to help us achieve our aspiration of
becoming a global technology, defence and engineering powerhouse.
Enhancing Capability and Capacity for Growth
Rapid technological advancements and shifting

customer demands are catalysing disruptive
ST Engineering owns a diverse set of
business models. Our success lies in the
engineering capabilities. This multi-
continuous development of our technology and disciplinary portfolio is enabled by
engineering core and empowering our workforce core competencies which also allow
with knowledge and skills in this new economy. for the development of adjacencies.
Establishing GEC and GTO is a great
The Group Engineering Centre (GEC) formed in step in pooling group resources
2021 focuses on translating current technologies together to build platforms and
into products and solutions. The Group Technology technologies at a scale that might
Office (GTO) drives the development of emerging not be possible in individual
business units.
and long-term technologies across the Group to
generate impactful returns. GEC and GTO create a
conducive ecosystem for our engineering teams to Kan Zi Yang
collaborate across domains and exchange product Principal Software Engineer,
Group Engineering Centre
and solution ideas. This enables the Group to
deepen our technology and engineering core while
establishing structured professional development
pathways for our engineers.
Over 400 engineers across the Group attended

→ Fok Kar Wai, Assistant
our inaugural Technology Seminar in September
Principal Engineer from
GTO shared insights on where industry experts and experienced colleagues
autonomous system security were invited to share their learnings on trending
and IoT security applications
at the Group’s Technology
technologies.
Seminar.
Read more about our
Technology and Innovation showcase
80
It is both a personal and professional

goal of mine to keep learning.
I was an Engineering Services ST Engineering offers LinkedIn
Engineer in Singapore before My experience in the Group’s Learning to employees and those
I moved to our office in Sweden. Marine Environmental recommended courses helped me
In Sweden, we explore different Engineering team was fulfilling, gain much-needed technical skills
operational workflows to drive knowing that our work and grow into a more thoughtful,
more synergistic outcomes contributes to Singapore’s clean well-rounded leader. It can be
and deliver the best possible water and energy. I believe easy to only focus on daily
services to our customers. sustainability transcends tasks, meetings and deadlines,
2022 will be an exciting environmental protection, hence but investing in my personal
year and I look forward to I am truly excited to embark and professional development
applying and adapting on my next stint in our Group has helped myself and
the practices and skills Strategy and Sustainability my contributions to the
I acquired in Singapore! Office to contribute to realising team immensely.
ST Engineering’s sustainability
agenda and strategies.
Jonathan Lim Kaitlin Krejcik
Assistant Principal Engineer, Nerissa Tay MRB/Repairs Liaison Engineer,
Commercial Aerospace Assistant Manager, Commercial Aerospace
Group Strategy &
Sustainability Office
ST Engineering also collaborated with local As part of career development and succession
educational institutions and approved Continuing planning, we encourage structured rotations within
Education and Training centres to train our engineers and across our businesses globally. We partner with
and technicians in new economy skill areas such Singapore Economic Development Board to offer
as robotics, automation and design thinking. We employees international postings under our Global
launched the In.Vent venture building initiative to Leaders Development Programme.
catalyze an innovative culture for business creation.
We also offer personalised, bite-sized and on-demand To build a talent pipeline, our outreach programme
learning opportunities to employees group-wide. More includes a partnership with Enterprise Singapore
than 6,000 employees have been actively utilising and a SG United Traineeships Programme to offer
these digital learning opportunities to build up their internships in our Group.
understanding in topics including data science, digital
marketing and agile project management.
Strengthening a Passionate and Engaged Workforce
In 2021, we continued to enhance our policies and

realign work processes to support our employees.
Several initiatives were rolled out focusing on three
main pillars of wellbeing – physical, emotional
and social.
The ST Engineering MOVEment demonstrates that

employee wellbeing is our top priority. The MOVEment
rallied employees to make health a focus through
regular exercise while raising funds for charity. This
four-week campaign garnered the participation of over
3,300 employees, who completed more than 360,000km
collectively by running, walking and cycling. Sharing
experiences outside of work helped to increase team
bonding and sparked spontaneous interactions across
the Group, drawing employees closer as they motivated
one another to “move more together”.
ST Engineering MOVEment raised

$398,000 for President’s Challenge 2021
Read more

SUSTAINABILITY
→ Social
Other initiatives rolled out throughout the year Women@ST Engineering supports our diversity and inclusion
included a series of webinars, workshops and efforts as we engage our female employees within the
virtual sharing sessions. Guest speakers and senior organisation. Aligning to our global agenda of advancing
business leaders were invited to these sharing women in STEM, we rolled out upskilling and reskilling
sessions to speak on health and wellness, and programmes to attract, retain and develop female talent in
exchange knowledge on career planning, networking, various disciplines. Our senior executive co-sponsor for the
influencing and leadership. In these extraordinary Women@ST Engineering Committee, Tan Lee Chew and two
times, we acknowledge that it is critical that we build of our business leaders, Chiang Yoke Fun and Dr Vrizlynn
and strengthen our employees’ mental resilience to Thing were honoured in the 2021 Singapore 100 Women in
enable everyone to cope and get through the crisis. Tech list, which features female role models for the multi-
To promote this, we organised several activities such faceted roles they play in influencing Singapore’s business,
as a virtual talk on mental wellness and SkillsFuture workplace and community in the tech industry.
advice through our ST Engineering Staff Union.
Organised by the Women@ST Engineering Committee and
inaugurated by the President of the Republic of Singapore,
We donated over 1,000 decommissioned
laptops to Engineering Good
Halimah Yacob, the Women Support Group is a key
Read more women's empowerment initiative launched in 2021. It is
aimed at promoting social, emotional and mental resilience
among female employees, and serves as a platform to
engage and connect.
Learn more about our

Women Support Group
I am excited that technology is

increasingly multidisciplinary and
is a key enabler to building stronger
I have a mantra for myself, ‘never stop
economies. We celebrate
learning’. Seize opportunities to grow, learn
all women who are By sharing success
and keep up with changing technology
inspiring their communities stories with young
trends in our fast-paced
and making significant women, we can prove
world. Keep an open mind,
contributions to the tech how careers in STEM can
be genuine and don’t be
industry. As a leader, be amazingly rewarding
intimidated when taking up
I believe in steering this for anyone with curiosity
new opportunities. It’s ok to
agenda and creating and passion.
make a mistake as long as
opportunities for women
you learn from it and grow.
in tech to confidently
Keep trying. Dr. Vrizlynn Thing
step forward and drive
Senior Vice President,
business success.
Head of Cybersecurity
Chiang Yoke Fun Strategic Technology Centre
Senior Vice President,
Tan Lee Chew Head of Singapore
President Commercial Digital Business
Being at the Forefront of People Practices
ST Engineering constantly seeks to innovate and

enhance our policies to create a more rewarding career
for our employees. We have won people excellence
awards in and outside Singapore, including the
recognition of ST Engineering as one of the Top Five
most attractive employers in Singapore by Engineering
and Natural Science students. As a Group, we continue
to invest in technology and innovation, optimising
processes and operations to create a better overall
working environment and experience.
For more details,

go to Awards section
ST ENGINEERING ANNUAL REPORT 2021

SUSTAINABILITY
→ Social
→ EMPLOYEES 1 (%)
By Clusters By Geography
49 46 5 63 23 10 4
Defence & Singapore North America Europe Others

Commercial Corporate
Public Secutity
By Qualification By Age Group
41 18 20 17 4 15 26 27 23 9
"O" or "A" Below "O" 30 and
Degree or Diploma or Trade 30+ to 40 40+ to 50 50+ to 60 Above 60
levels or levels or below
Higher equivalent certification equivalent equivalent
→ WORKFORCE PROFILE
Male Female Male Female
79% 21% 85% 15%

Employees Supervised Workers2
→ AVERAGE TRAINING PER EMPLOYEE 3 → TURNOVER RATE 3
21 hours 14%
Male Female Male Female
24 hours 11 hours 14% 14%
→ PEOPLE MANAGERS 3
15% 14%
of male employees of female employees
are people managers are people managers
1
Based on the Group's 2021 annual average staff strength of 22,405.
2
Supervised workers refer to short-term contract workers hired through local contractors who work in the Group’s facilities and are
supervised by ST Engineering.
3
Based on the total employee population of each gender.
KEY GOALS FOR 2022
→ Renew capabilities → Build a high-performing, → Strengthen people

and build capacity engaged and global-ready practices to enable an agile
for sustainable growth workforce and global HR organisation

SUSTAINABILITY
→ Social
TOTAL WORKPLACE SAFETY & HEALTH
→ Reviewed and aligned our safety → Safeguarded staff wellness through the
performance indicators engagement of the Workplace Safety
and Health Council for mental health
and mental wellness
→ We regard safety and wellness as paramount to our everyday work. Above and
beyond legal requirements, we do our best to prevent occupational injuries and
illnesses. We also strive to promote a healthy and balanced lifestyle among our staff.
As part of its 2021 workplan, the Workplace Safety This is likely attributed to prolonged periods away
& Health (WSH) Committee reviewed and aligned from the workplace during the pandemic.
our safety performance indicators. This included
adopting ISO 45001 Occupational Health and Safety In 2021, the two most frequent causes of injuries
Management Systems revising our WSH indicators, were cuts/stabbed by objects and being struck by
carrying out a group-wide WSH promotion and objects. They accounted for 28% of all cases. Key
campaign, enhancing WSH digital platforms (e.g. injury mitigating measures are being adopted through
reporting, hazard reporting) and emphasising mental continuous WSH education, assessments and
wellbeing at our workplaces. surveillance activities within the group. They
include cross sharing of best practices with our
In Singapore, the Group partnered the Workplace global operations, reviewing safe work procedures,
Safety and Health Council (WSHC) to offer health conducting risk assessment on safe material and
and safety workshops including health screening mechanical handling and stepping up enforcement
and coaching, infectious disease control and on the use of specific personal protective equipment,
mental health. tools and machinery safety as well as Lockout-Tagout.
To ensure we remain compliant with relevant statutory There was a decrease in falls from height incidents
and regulatory requirements, the Group continues to from 21% to 12%, the most frequent cause of injury
use control self-assessment and audit processes as in 2020. This can be attributed to our effective
part of our enterprise risk management initiatives. fall prevention programme which focuses on the
following approaches such as intensive analysis of
SAFETY PERFORMANCE statistics; workforce direct engagement; series of
comprehensive inspections; monitoring programme
The Accident Frequency Rate (AFR) and Accident effectiveness; communication and feedback.
Severity Rate (ASR) in 2021 were 1.1 and 22.0
respectively. The AFR of our global operations We continue to advocate the importance of safe
increased from 0.8 to 1.1, and the corresponding ASR work procedures to our employees via awareness
increased from 17.2 to 22.0. One of the key factors briefings, site inspections and other safety initiatives,
that contributed to our slip in performance was due to constantly remind employees to take care of their
to human error in complying with safety procedures. safety and that of their co-workers.
→ OCCUPATIONAL HEALTH PERFORMANCE INDICATORS*
112 100% 0 100% 0

Workplace Safety At-risk staff New occupational At-risk staff New advanced
& Health activities attended respiratory diseases cases attended an noise-induced
organised protection training (excluding noise induced audiometric deafness cases
deafness cases) examination
* Singapore operations

SUSTAINABILITY
→ Social
Reinvention with Safety First Recognition for Workplace Safety Innovation

Maintaining 243 chainsaws through repetitive Pit furnace heat treatment processes expose
pulling can be strenuous and tiring, frequently technicians to numerous hazards during the
causing muscle strains and injuries to the racking and lifting processes. By designing an
technicians and inspectors. Teams were innovative lifting adapter, complete with a venting
lauded for reinventing the labour intensive pipe and racking method, our team was able to
process with a motor-driven in-built pulley eliminate handling risks and fire hazards during
system. This innovation was a big the quenching process. The team bagged a
contributor to workplace safety, prestigious award from the SMF-WSH Innovation
especially in alleviating risks of Awards (Manufacturing) 2021 as well as the
muscle injuries and lost days WSHC-WSH innovation Awards 2021, presented
due to muscle fatigue. by the WSHC and supported by the Ministry of
Manpower.
Team members
who clinched
the WSHC-WSH
Innovation Award
→ With the help of the

in-built pulley system,
technicians no longer
need to bend over often
→ BREAKDOWN OF SAFETY INCIDENTS → ACCIDENT FREQUENCY & SEVERITY RATE

No. of accidents No. of manhours
per million lost per million
manhours manhours
1.5 25
22.0
(%) 1.2 20
Cuts/Stabbed by Objects 15 17.2

Struck by Objects 13 1.1
0.9 14.7 15
Fractures/Sprains/Back Pain 13
Caught in-between Objects 13 0.8
0.6 10
Falls from Height 12 0.7
Slips, Trips and Falls 12
Machinery in Motion 8 0.3 5
Struck against Objects 8

Others* 6 0 0
2019 2020 2021
* Burns and Flying Debris Accident Frequency Rate Accident Severity Rate
KEY GOALS FOR 2022
→ Enhance focus on total WSH → Promote technology-enabled WSH

SUSTAINABILITY
→ Social
QUALITY PRODUCTS & SERVICES
→ Launched the Seven Quality Behaviours → Established multiple engagement channels

e-learning programme to reinforce the to facilitate group-wide discussions on
desired quality behaviour in building quality certifications, quality improvement
a sustainable quality culture projects, and quality training and sharing
→ We are committed to timely delivery, responsive support and maintenance of

high quality and safety standards. The majority of our operations are certified
ISO 9001 Quality Management Systems (QMS) or equivalent and all our
operations abide by the requirements of their industry regulatory bodies.
In 2021, the Quality Committee stepped up efforts to Systems Safety

bring our global quality professionals together for learning System safety forms a key focus for
and to exchange best practices. This was carried out via ST Engineering as part of our quality promise
multiple channels of engagement by each business area. to customers and employees. The concept
Activities included working on QMS certifications, quality employs a risk management approach based
improvement projects, and quality training and sharing. on the identification and analysis of potential
hazards, and the application of mitigation
Conscientious efforts were made to encourage continuous measures using a systems-based approach.
learning and improvement while maintaining the highest
standard of quality in our production lines and services. We ST Engineering actively contributed to
developed various e-learning modules to promote the right the development of the revised Technical
quality processes and behaviours in our staff to enhance Reference (TR-68) for Autonomous Vehicles
their quality knowledge and practices. We launched the (2021), including updated safety guidelines
Seven Quality Behaviours e-learning training programme in for test-bedding Autonomous Vehicle
conjunction with World Quality Day on 11 November 2021, to (AV) solutions on Singapore roads and the
stress the importance of quality to our staff. Staff were trained development of international AV standards.
to internalise the behaviours of ability, customer focus,
teamwork, integrity, out-performance, nimbleness and We ensure system safety is embedded in
safety focus, and act to build and sustain our quality culture. all aspects of our work through employee
education. Following the success of two
Staff are kept abreast of the latest quality and safety e-sharing events in 2020, the systems safety
requirements, inhouse rules and industry best practices team hosted “System Safety Practices
through regular training and briefings. They include in Land Systems” in 2021, attended by
system safety, Seven Quality Behaviours, as well as colleagues across the Group. The speakers
quality and safety awareness induction training shared good practices for MRO and software
as part of new employees’ orientation. safety, sparking employees’ interests in
future cross-sharing sessions and in-house
Going forward, our goal is to continuously strengthen our trainings. In addition, employees attended
quality and inspire our employees to abide by the Group's the virtual International System Safety
quality policy and live-out quality behaviours. We strive to Conference 2021 themed “Increasing
future-proof our quality management system by leveraging Autonomy Safely”, to gain new knowledge
technology and digitalisation to build predictive and risk- and practices.
based quality thinking practices across the organisation.

SUSTAINABILITY
→ Social
Using Data Analytics to Improve Quality

We leveraged Workforce Singapore initiatives
to train quality professionals in the Group
on data analytics. Staff were trained to use
business intelligence tools to consolidate
quality data. Timely insights collected were
used for management decisions and for
process owners to act on priorities.
3D Scanning and
Meshing of Vehicle Hull
We invested in
3D scanning equipment
to increase product
inspection accuracy.
This helps ensure
better quality in
the manufacturing
of vehicular systems.
Consistency with Every Spray Augmented Reality in Welder Training

Engine painting operations are labour intensive Augmented Reality (AR) is employed in welder
and subject to human error. Robotic arm training to better engage welders while they
technology enables our aerospace business to go through real-life training. The curriculum,
operate 24/7 without disruption, and can achieve simulation and practices are conducted
a consistent spray quality while minimising the within a Learning Management System and
product rejection rate. updated in real time through a remote system.
AR integration in training processes helps to
reduce training time and enhances learning.
KEY GOALS FOR 2022
→ Identify and develop core quality-related → Progressively roll out the

e-learning modules to enhance staff Seven Quality Behaviours to all
knowledge on quality management global business units

SUSTAINABILITY
→ Social
RESPONSIBLE PROCUREMENT
→ Acknowledgment of ST Engineering’s → Added environmental risks as a new

Vendor Code of Conduct by our supplier screening criteria for our
strategic suppliers Singapore operations
→ We aim to promote inclusive, ethical and sustainable procurement practices.

We recognise that sustainable procurement helps us manage risks, improve
efficiencies and reduce costs. To that end, we actively manage relationships
with our suppliers to meet the needs of our businesses and deliver long-term
value. We also seek to maximise social and economic benefits, while minimising
damage to the environment and health.
ST Engineering has an extensive and extremely We also seek to support local SMEs where possible
diverse supply chain. We buy goods and services -- for example, we spent $330m with local SMEs
to support our manufacturing, systems integration, supporting our Singapore operations in 2021.
MRO operations and services offerings in the
aerospace, maritime and transport domains. We will continue to strengthen our supply
We had 9,700 active suppliers supporting our chain resilience by rolling out our procurement
Singapore operations in 2021 alone. sustainability roadmap globally. We will build a
firm foundation through setting guiding principles
Despite the complexity of our global supply and standards for responsible procurement, and
chains, we embarked on a journey to better implement standards that are put into practice.
steward our partnerships with our suppliers. We will constantly review them and obtain
We believe that collaborating and engaging feedback from our global operations.
with socially- and environmentally-conscious
suppliers will mitigate a significant proportion Over the next three years, our goals include:
of our ESG risks. • Conducting surveys and consolidating feedback
on our Global Procurement Policy and Vendor
In 2021, we obtained an acknowledgement to Code of Conduct;
adhere to our Vendor Code of Conduct from
100% of our strategic suppliers supporting • Getting acknowledgment of Vendor Code of
our Singapore operations. We also started Conduct from our strategic suppliers globally;
screening all new suppliers supporting Singapore and
operations on environment- and reputation- • Implementing environmental screening for all
related risks. Suppliers not meeting expectations new suppliers globally.
must submit their recovery action plans and are
further assessed before they are accepted.

SUSTAINABILITY
→ Social
→ GLOBAL OPERATIONS → SINGAPORE OPERATIONS
PROCUREMENT SPEND
BY GEOGRAPHIC LOCATION
$4.5b
Total procurement spend
Region Annualised Spend (%)
Singapore 62
Europe 17
Others 12
North America 9
$330m
procurement
spend with local
SMEs supporting our
Singapore operations
Growing Together with SMEs
We launched a strategic engagement programme with
SMEs to provide fabrication services, a key building
block of our manufacturing operations. We are focused
on upgrading their capabilities and expanding their
capacity which will lead to increased innovation and
more cost effective solutions.
KEY GOALS FOR 2022
→ Incorporate the Vendor Code of → Include ESG criteria in the screening

Conduct as a standard business of new suppliers supporting our
requirement to all active suppliers global operations
supporting our Singapore operations

SUSTAINABILITY
→ Social
ECONOMIC PERFORMANCE
→ Continued to make economic → Refreshed organisation → Updated our five-year

contributions and provide structure for a stronger strategic plan and integrated
good jobs to our communities customer focus sustainability as a key focus
→ ST Engineering remains committed to creating sustainable and inclusive growth

for our stakeholders, especially during these challenging times. We take a
long-term view towards value creation through the delivery of a balanced
triple bottom line of “People, Planet, Profit.”
Economic performance is material to our For the second year, we continued to maintain an
sustainability goals. Our economic contributions even keel amid the challenges posed by COVID-19.
to the communities we operate in include local Our order book remained robust and increased to
procurement, direct and indirect employment, $19.3b in financial year 2021. The total economic
dividends to shareholders, taxes paid to contributions by the Group in 2021 was $7.2b.
governments, and investment in community
programmes. We also develop innovation
Further details can be found and Financial Report
capabilities, transfer know-how and technology in the Performance Review sections
to local SMEs, and provide internship and
training opportunities.
Group Economic Contribution ($m)

Bought-in material and services 4,501
→ TOTAL ECONOMIC
Employee wages, salaries and benefits 2,122 CONTRIBUTIONS
Dividends and interest paid
Government taxes and levies
513
88 $7.2b
Total 7,224
KEY GOAL FOR 2022
→ Continue to make economic

contributions, provide good jobs
and invest in our communities

SUSTAINABILITY
→ Social
CORPORATE COMMUNITY
CONTRIBUTIONS
→ Organised the inaugural → Supported communities → Created opportunities

ST Engineering MOVEment, through our three focus for skills-based
an internal fundraising event areas volunteerism
→ Our lives are deeply intertwined with the communities where we operate.
It is our responsibility to seed positive growth where we have sunk roots, so
that we prosper together.
We believe in building an inclusive, resilient For 2021, restrictions on physical interactions were
and vibrant society in which people can thrive largely maintained due to COVID-19. Undeterred,
and be safe. Our community investments and we persevere in our efforts to do good as we do well.
philanthropic efforts are guided by three focus In addition to in-kind and financial support, we
areas: charitable gifts, education and engineering. serve our communities through volunteering and
skills-based contributions.
$250,000
$2.8m
IN COMMUNITY
*
→ per annum to NTUC
Education and
Training Fund over
CONTRIBUTIONS four years since 2018
$108,000
>$640,000 to The Straits Times
to the Community Chest’s School Pocket
SHARE programme Money Fund
$398,000 $100,000 $50,000

to the Singapore
to President’s to Vietnam’s COVID-19
Institute of
Challenge 2021 Vaccine Fund
Technology’s (SIT)
Student Relief Fund
@ SIT (COVID-19)
* Includes other donations and sponsorships not listed here.
91
SUSTAINABILITY
→ Social
Improving Lives Through Charitable Gifts
We promote a purpose-driven giving culture by encouraging employees to participate

actively in fundraising activities and community programmes to improve lives.
A Winning Effort
We presented $398,000 to President Halimah
Yacob for President’s Challenge 2021 in Singapore,
raised from the inaugural ST Engineering
MOVEment. Employees contributed over $640,000
to the Community SHARE* programme. Our
efforts to uplift communities and empower lives
were recognised with our third consecutive
Charity Platinum Award at the Community Chest
Awards 2021, for having made significant
monetary* contributions.
Advocates in Action
At the height of the pandemic,
124 employees stepped up for the
StayMasked distribution campaign
by Temasek Foundation and were
part of the volunteering efforts that
enabled over 1.1 million households
to successfully collect nearly
85 million masks from over 130
collection points across Singapore.
Hands-on Help
Community Beautification In San Antonio, Texas, employees built
Employees also volunteered cabinets for three families in need
for a beautification project at of affordable homes, in support of
McAllister Park, on the north side Habitat for Humanity of San Antonio.
of San Antonio, Texas, to remove
debris from park grounds and
keeping the park clean and safe
for community use.
Upcycled Digital Gifts

We donated over 1,000
decommissioned New Toys; New Joys
laptops to Singapore- In North America, we spread the festive
based Engineering Good cheer by donating a vast array of toys for
for refurbishment and children through programmes such as
subsequent distribution Jackson County Sheriff's Department's
to the less privileged. Santa Wears a Badge, San Antonio
Police Officers Association’s Blue
Cares as well as the U.S. Marine
Corps Reserve's Toys For Tots.
* Over a 12-month period between April 2020 to March 2021.

SUSTAINABILITY
→ Social
Enriching Lives Through Education
Education opens horizons and is key to society’s progress. We work with partners and
collaborators to create diverse learning pathways across industries and demographics.
1,224 Internships for STEM Talent

We believe that STEM education can help to
create a brighter, better world and provided
1,224 technology and engineering internships
in 2021 to nurture STEM talent.
Shipbuilding Apprenticeship Programme in Mississippi

Since 2020, we have accepted 50 apprentices into our annual
apprenticeship programme held in partnership with the Mississippi
Supporting Education through the Pandemic
Gulf Coast Community College. We develop and train them into
quality shipbuilders for the marine industry within four years. We raised $108,000 for The Straits Times
School Pocket Money Fund by donating $2
from every AIR+ Reusable Mask sold#, providing
children and youths from low-income families
in Singapore with pocket money to help them
through school.
We contributed $50,000 to the Singapore Institute
of Technology’s (SIT) Student Relief Fund @ SIT
Photo: Gulf Coast Community College (COVID-19) to support 29 undergraduates facing
financial hardship due to COVID-19.
Skills Progression Programme in Mobile,

Alabama and Pensacola, Florida
Proud Partner of Assumption Pathway School
We continue to grow and diversify
our talent pool of qualified aircraft As a proud education and vocation partner of
maintenance technicians to support Assumption Pathway School, we have provided
the industry through our latest training consistent support since 2013. In 2021, we
programme with UPS. Participants gave out two Achievement awards and two
can look forward to employment Best Progress awards, placed 16 students on
opportunities with UPS as potential a two-week industry experiential programme,
early as three years upon graduation. while supporting student enrichment and
innovation projects.
We also helped set up the first Assumption
Pathway School student-run, on-the-job training
café open to the public at our Jurong East office in
Singapore. The initiative creates authentic learning
opportunities and experiences beyond the
familiarity of the school compound to strengthen
students’ competencies and employability.
The Pensacola Mayor’s Scholarship in Pensacola, Florida

We give out the scholarship annually to grow local aircraft
talent to support the growth of the Northwest Florida aviation
workforce. Starting in 2022, we expanded the programme from
four to eight recipients.
#
Over a 12-month period between March 2021 to February 2022.

SUSTAINABILITY
→ Social
Touching Lives Through Engineering
We use our technology, expertise and engineering skills to provide solutions and knowledge
transfer to communities or through their intermediaries to enhance quality of life.
Industry Consultancy Cybersecurity for the

We participated in industry workshops to provide insights on co-creating Non-Profit Sector
and developing Singapore’s Industry Digital Plan for Social Services to We helped the non-profit sector
ramp up the sector’s broad-based digitalisation. The end product included in Singapore achieve greater
a step-by-step guide on digital solutions that the social service agencies cyber resilience. By sharing our
can adopt to improve productivity and stakeholder satisfaction as well as cybersecurity expertise, 235
training programmes that they can tap on to enhance their employees’ representatives from 167 social
digital skills. service agencies and charities
were made more cyber ready to
protect their organisations and
data. We co-organised the fireside
chat together with the National
Council of Social Services in line
with Singapore’s Industry Digital
Plan for Social Services.
Free Vehicle Roadworthiness Inspections

Since 2020, our vehicle inspection business in Singapore
has been drawing on its core capabilities to support
social causes and non-profit organisations by providing
complimentary vehicle roadworthiness inspections to
Metta Welfare Association for their fleet of 11 ambulances
and buses. In 2021, we extended these free inspections
to SPD’s fleet of 11 vans so that they can also channel
the waived inspection fees towards other pressing needs,
especially given the additional operational challenges
arising from COVID-19.
KEY GOALS FOR 2022
→ Hold the second run of → Strengthen communities → Encourage staff

ST Engineering MOVEment as further through our three volunteerism
an internal fundraising event focus areas

SUSTAINABILITY
→ Governance
ETHICAL BUSINESS &

REGULATORY COMPLIANCE
→ Expanded risk and compliance training → Engaged stakeholders to strengthen the

programme to cover additional regulatory enterprise risk management process
compliance topics
→ We have zero tolerance for fraud and corrupt practices. Our Code of Business
Conduct and Ethics forms the backbone of our commitment to ethical business
conduct and regulatory compliance. We remain focused on meeting all relevant
regulatory and customers’ requirements where we operate, including those relating
to cybersecurity, data governance and protection, and business continuity.
No
In 2021, we expanded our risk and compliance
training coverage to include the General Data
Protection Regulation (GDPR). For our North
American operations, topics on preventing
workplace harassment and export control
compliance were added to their existing
training programme. We also continue to review
our risk and compliance training programme → reported cases of bribery and
to ensure that applicable risk and compliance corruption in 2021
topics are rolled out through e-learning.
→ reported violations of export
Additionally, we engaged key Group HQ control regimes in 2021
functions throughout the year to formalise our
risk heat-maps and update their key risks. → significant fines or
non-monetary sanctions
We achieved a 100% completion of the Anti- for non-compliance with
Bribery and Corruption (ABC) e-learning environmental, health and
course for relevant employees. ABC is a core
safety regulations
focus area of our governance training. We
continue to review our courses to ensure their
relevance to our businesses around the world.
KEY GOALS FOR 2022
→ Enhance staff awareness of key → Refresh the control self-assessment

compliance topics such as export process to enhance the basis of
control and personal data protection assurance provided to the Board

CORPORATE GOVERNANCE REPORT
→ Good corporate governance is the foundation for long-term value

creation of the Group. This Report sets out ST Engineering’s corporate
governance processes, practices and activities in 2021 with specific
reference to the principles and provisions of the Singapore Code of
Corporate Governance 2018 (the Code). The Board is pleased to report
that the Company has complied with the principles and substantially
with the provisions of the Code. Variations from any provision of the
Code are explained in this report.
BOARD MATTERS In the discharge of its functions, the Board is

supported by six Board Committees to which it
delegates specific areas of responsibilities for
The Board’s Conduct of its Affairs
reviewing and decision making. The Board decides
(Principle 1)
on matters that require its approval and clearly
communicates this to management in writing. The
The Board is accountable to shareholders for Board Committees, are formed with clear written terms
overseeing the effective management of the of reference setting out their compositions, authorities
Company. To this end, the Board relies on the and duties, including reporting back to the Board.
integrity, commitment, skills and due diligence
of its management, its external advisors and The Group President & CEO, Vincent Chong, is
auditors and hold management accountable for accountable to the Board. He is supported by the Group
performance. The Board puts in place a Code of Executive Committee (EXCO) comprising Group Chief
Business Conduct and Ethics, sets appropriate Financial Officer (Group CFO), Group Chief Operating
tone-from-the-top and desired organisational Officer (Technology & Innovation) and President
culture, and ensures proper accountability within Defence & Public Security, and President Commercial.
the Company.
Director Induction, Training/Development
For the onboarding of a Board member, a formal
In addition to its statutory responsibilities,
letter is sent to a Director upon his/her appointment
the Board reserves the following key matters
setting out his/her statutory obligations, duties and
for its decision:
responsibilities as a Director. He/She is also given key
• setting the Group’s strategic objectives information of the Group and the Company, as well
and ensuring that decisions made are as the terms of reference for the respective Board
consistent with these objectives; Committees. An induction programme is organised for
• approval of annual budgets, major funding a new Director on the strategic direction, sustainability
proposals, investment and divestment efforts and performance of the Group as well as
proposals in accordance with the approved his/her duties and obligations under the statutory
delegation of authority framework; compliance and corporate governance framework.
• appointment of the Group President The induction programme includes briefings by
& Chief Executive Officer (Group Presidents/Business Heads of various business
President & CEO), Board succession and areas including facility visits, where applicable, to
appointments on Board committees; enable them to develop a good understanding of the
Group’s business, operations and the respective key
• appointment of key management
management.
executives and succession planning
as an ongoing process;
The Board is routinely updated on the relevant laws,
• appointment and removal of the Singapore Exchange Securities Trading Limited (SGX-
Company Secretary; ST or the Exchange) continuing listing obligations
• review of the risk management framework and accounting standards requiring compliance, and
and sustainability performance; and their implications to the Group, so as to enable each
• approval of the unaudited half-yearly and Director to properly discharge his/her duties as a
audited full-year results prior to their release. Board member and Board Committee member.

Depending on their skill sets and background, Information furnished to the Board is an ongoing
Directors are sponsored to attend relevant courses, process, which includes monthly consolidated
conferences and seminars to better equip them management reports on the financial performance of
with the appropriate skills and knowledge to fulfil the Group and the businesses. On a quarterly basis,
their governance role and to comply with Directors’ the management reports would also include key
obligations. Directors are provided with opportunities business highlights and capital expenditure of the
to develop and maintain their skills and knowledge Group and the businesses to keep the Board apprised
at the Company’s expense. Where there are statutory of business investments and performance updates.
and regulatory changes that affect the obligations of
Directors, the Company will update the Board and, The Board also has separate and unrestricted access
where the changes are substantive, through briefings to the Senior Management, the Company Secretary,
organised by external legal counsel. During the year, internal and external auditors, risk management
the Company arranged for the following briefings for and sustainability teams. The Board may also seek
the Board: independent professional advice, if necessary, to
enable them to discharge their duties effectively.
(i) Update on Cyber Threat Landscape; All engagements of external advisers are at the
(ii) Global Sustainability Trends 2021; and Company’s expense.
(iii) Global fraud, bribery and corruption threat
landscape and emerging trends. The Board and Board Committee meetings are
scheduled well in advance. The Board and Board
The Directors were also informed of relevant courses Committee members are provided with complete,
organised by Singapore Institute of Directors or other adequate, relevant and timely information on matters
external professional organisations for their enrolment. to be discussed or considered at meetings.
The Directors’ trainings and developments were The Board has, at all times, exercised independent
funded by the Company. For new Director without any judgment to make decisions, using its collective
prior experience as a director of an issuer listed on the wisdom and experience to act in the best interests of
Exchange, the Company will arrange for the Director to the Company. Any Director who has an interest that
attend training as prescribed by the Exchange. may conflict with a subject under discussion by the
Board, declares his/her interest and either recuses
Board Meetings himself/herself from the information and discussion of
The Board convenes scheduled meetings on a the subject matter or abstains from decision-making.
quarterly basis to review the business performance
and key activities of the Group and to deliberate
significant business proposals. Board members Board met
participate actively in Board discussions, and
decisions are taken objectively in the interests
of the Company. Where warranted by particular
9 times
in 2021
circumstances, ad-hoc/special Board meetings
may be convened to consider corporate actions
requiring the Board’s guidance or approval. The Company has adopted half-yearly reporting and
provides operational updates in the first and third
To facilitate the Board and Board Committees’ quarters to the market and analysts alike. Board
decision-making process, the Company’s Constitution and Audit Committee meetings continue to be held
provides for Directors to participate in virtual meetings. quarterly.
If a Director is unable to attend a Board or Board
Committee meeting, he/she will still receive all the During the year, the Board met quarterly to consider,
materials to be tabled for discussion at that meeting, among other things, the approval and release of the
and where required, separate briefing sessions FY2020 and 1H2021 results, including the review of
are arranged. Decisions of the Board and Board the 1Q2021 and 3Q2021 Market Updates. The Board
Committees may also be obtained via circulation. also scheduled additional meetings to discuss and
At the end of every Board meeting, the Chairman deliberate on the strategic direction and growth of
allocates time for its non-executive Directors to meet the Group.
without the presence of management.

Details and attendance at Board and Board Committee meetings in 2021 are tabulated below.
Board Members’ Details Meeting Attendance Report*

Chair of the Board/ Member of the Board/
Independent (I)/
Non-Executive
Board Committee Board Committee
Executive (E)/
Independent
Board AC ERCC NC RD&T RSC SFC GM
Number of meeting held in FY2021
Non-
(NE)
(NI)
Names 9 5 3 3 1 5 2 2
Vincent Chong Sy Feng NI E 9/9 1/1 5/5 2/2 2/2
Kwa Chong Seng I NE 9/9 3/3 3/3 2/2 2/2
Kevin Kwok Khien 1

I NE 1/1 1/1 1/1
Leong Weng Keong Joseph NI NE 9/9 2/2
Lim Ah Doo I NE 8/9 7 4/5 2/2 2/2
Lim Chin Hu I NE 8/9 7 3/3 3/3 1/1 2/2 2/2
Lim Sim Seng I NE 9/9 3/3 3/3 2/2 2/2
Ng Bee Bee (May) I NE 9/9 2/3 2/2
LG Ong Su Kiat Melvyn NI NE 8/9 7 4/5 1/2
Quek Gim Pew 2

NI NE 5/5 1/1 3/3 1/1
Quek See Tiat I NE 9/9 5/5 5/5 2/2
Song Su-Min I NE 9/9 5/5 5/5 2/2
Tan Peng Yam 3

NI NE 4/4 1/1
Teo Ming Kian 4

I NE 4/4 1/1 1/1 1/1 1/1
COL Cai Dexian5 NI NE 1/1 1/1
(Alternate to LG Ong Su Kiat Melvyn)
COL Xu Youfeng 6 NI NE 3/8
(Alternate to LG Ong Su Kiat Melvyn)
AC-Audit Committee, ERCC-Executive Resource and Compensation Committee, NC-Nominating Committee, RD&T-Research, Development
and Technology Committee, RSC-Risk and Sustainability Committee, SFC-Strategy and Finance Committee, GM-Annual General Meeting
and Extraordinary General Meeting
* Refer to meetings held/attended by each Director.

1
Appointed as Director and member of AC on 1 October 2021 and appointed as member of RSC on 1 December 2021.
2
Retired as Director and Chairman and member of RD&T and RSC respectively on 1 August 2021.
3
Appointed as Director on 1 August 2021 and appointed as Chairman of RD&T on 15 August 2021.
4
Appointed as Director on 1 August 2021 and appointed as member of ERCC, NC, RD&T and SFC on 15 August 2021.
5
Appointed as Alternate Director to LG Ong Su Kiat Melvyn on 1 October 2021.
6
Ceased as Alternate Director to LG Ong Su Kiat Melvyn on 1 October 2021.
7
Directors were unable to attend an ad-hoc Board meeting due to a prior commitment. Separate briefing sessions were arranged for the
Directors to provide their feedback on the materials and discuss related issues with management prior to and/or after the meeting.
Role of Company Secretary including their timely disclosure obligations. The

The Company Secretary/Joint Company Secretary Company Secretary/Joint Company Secretary also
attends all Board meetings and ensures that board assists with the induction of new Directors and the
procedures are followed, as well as prepares minutes coordination of training for Board members to keep
of Board proceedings. The Company Secretary/ the Board up to date on corporate governance
Joint Company Secretary facilitates communication matters. The appointment and removal of the
between the Board, its Committees and management, Company Secretary/Joint Company Secretary is a
and advises the Board on governance matters matter for the Board as a whole to decide.

The Board of Directors with their combined

Board Composition and Guidance
business, management and professional experience,
(Principle 2)
knowledge and expertise, provide the core
competencies to allow for diverse and objective
Board Composition and Diversity perspectives on the Group’s business and direction.
The Board has an appropriate level of independence Having considered the scope and nature of the
and diversity of thought and background in its operations of the Group, the NC and the Board are
composition to enable it to make decisions in the satisfied that the current composition and size of the
best interests of the Company. The Board comprises Board provide for diversity and allow for informed
13 Directors and an Alternate Director. COL Cai Dexian and constructive discussion and effective decision
is Alternate Director to LG Ong Su Kiat Melvyn. LG Ong, making at Board and Board Committee meetings.
in his position as Chief of Defence Force, may be called
away on duty at times and may not be able to attend all The Board is committed to observe the need for
diversity when selecting its members. The contribution
9Independent &
3Non-Independent
each Director brings and the composition thereof
provides a good reflection on the range and adequacy
of diversity on the Board.
Non-Executive & Non-Executive
Directors Directors
1 11
Male
2
Female
Executive Director/
Group President & CEO Directors Directors
Board meetings. COL Cai is fully apprised of all Board During the year, the Board welcomed the following
matters, receives notices to attend Board meetings new Directors:
and Board papers, as well as Board resolutions by
circulation. As Alternate Director, he is in a position (i) Kevin Kwok Khien was appointed as an
to act on behalf of LG Ong in the latter’s absence. independent and non-executive Director and
was appointed as member of AC and RSC.
The Board adopted a Board Diversity Policy since
2019. The Board, through the Nominating Committee (ii) Tan Peng Yam was appointed as non-
(NC), reviews and assess the size and composition independent and non-executive Director and
of the Board taking into consideration the age, skill was appointed as Chairman of RD&T.
sets, knowledge, experience, background, gender,
cultural ethnicity, tenure, independence of Directors (iii) Teo Ming Kian was appointed as an independent
and other relevant factors. The Board also recognises and non-executive Director and was appointed
that diversity is not limited merely to gender or as member of ERCC, NC, RD&T and SFC.
any personal attributes and believes that having
experienced directors with an independent mindset (iv) COL Cai Dexian was appointed as Alternate
is important for the Board to be effective. Director to LG Ong Su Kiat Melvyn.
There are two female Directors on the Board. The Board Independence
Directors’ ages range from the forties to seventies, and The Board has 12 non-executive Directors of which
they have served on the Board for various tenures. nine are independent Directors. The Code requires
The Board consists of members with established non-executive directors to make up a majority of
track records in defence, business leadership and the Board. The independence of each Director is
professional experience in energy, finance (including determined upon appointment and reviewed
audit and accounting), banking, technology, legal, annually, and as and when circumstances require,
business management and risk and management by the NC, in accordance with the requirements of
domains. Each Director brings to the Board an the SGX-ST Listing Manual, the Code and where
independent perspective based on his/her training relevant, the recommendations set out in the Practice
and professional expertise to enable the Board to Guidance accompanying the Code.
make balanced and well-considered decisions.

The Board, taking into account the views of the the ordinary course of business and at arm’s length
NC, affirmed that the independent Directors are on normal commercial terms. Our facilities with DBS
Kwa Chong Seng, Kevin Kwok Khien, Lim Ah Doo, are under Corporate Banking and not Consumer
Lim Chin Hu, Lim Sim Seng, Ng Bee Bee (May), Banking or Wealth Management. Mr Lim is not
Quek See Tiat, Song Su-Min and Teo Ming Kian. involved in the day-to-day business operations of
Each of the members of the NC and the Board ST Engineering. He only receives Director’s fees. Mr
recused himself/herself from the deliberations Lim recused himself from discussions and decisions
on his/her independence. involving DBS’s dealings with ST Engineering group
companies. With the aforesaid, the NC determined
Kwa Chong Seng, Kevin Kwok Khien, Lim Ah Doo, that business relationships between ST Engineering
Lim Chin Hu, Lim Sim Seng , Quek See Tiat, group companies and DBS would not affect Mr Lim’s
Song Su-Min and Teo Ming Kian declared that independence. The Board is of the view that the
each of them does not have any relationships with relationships set out above do not interfere with the
the substantial shareholder, no management exercise of Mr Lim’s independent business judgement
relationship and no business relationship with the in the best interests of ST Engineering and therefore,
Company and its group of companies, that could he is considered independent Director.
interfere, or be reasonably perceived to interfere,
with the exercise of their independent business Sister of Ng Bee Bee (May) is an Executive Director
judgement in the best interests of ST Engineering. (Corporate Banking) in United Overseas Bank (UOB)
Singapore, but she is not overseeing the banking
Kwa Chong Seng attained his nine years of service relationship of ST Engineering group companies
on the Company’s board on 1 September 2021. with UOB. UOB is one of the many banks with which
The NC has reviewed and affirmed that he is an ST Engineering group companies have a banking
independent Director. relationship. All transactions between UOB and
ST Engineering group companies are conducted in
The Company sought and obtained Shareholders’ the ordinary course of business and based on normal
approval at its AGM held in April 2021 by way of a two- commercial terms. The NC determined that her sister’s
tier vote pursuant to Rule 210 (5)(d)(iii) of the SGX-ST position in UOB would not have any conflict or affect
Listing Manual, for Kwa Chong Seng to continue to be Ms Ng’s independence. In the event of any engagement
considered as independent Director with effect from of UOB requiring the Board’s approval, Ms Ng will
1 September 2021 and the approval for Mr Kwa to be recuse herself from discussions on UOB’s dealings with
independent Director will remain in force until the ST Engineering group companies. The Board is of the
earlier of the retirement or resignation of Mr Kwa or view that the relationships set out above do not interfere
the conclusion of the third AGM following the with the exercise of Ms Ng’s independent business
passing of the resolution. judgement in the best interests of ST Engineering and
therefore, she is considered independent Director.
The Board had confirmed its previous determination
that Mr Kwa remains objective and independent Teo Ming Kian is a non-executive director of Temasek
in Board and Board Committee deliberations. He Holdings (Private) Limited (Temasek), which is a
constructively challenges Management during Board substantial shareholder of the Company. Mr Teo is not
and various Board Committee meetings on which a nominee of Temasek on the Board of ST Engineering.
he serves and his extensive experience enables him His role on the Temasek board is non-executive
to provide wise counsel and guidance to facilitate in nature and he is not involved in the day-to-day
sound decision- making. Mr Kwa’s length of service conduct of the business of Temasek. Mr Teo is also
on the Board neither interferes with his exercise of not directly associated with Temasek in that he is not
independent judgment nor hinders his ability to act accustomed or under an obligation, whether formal
in the best interests of the Company. On this basis, or informal, to act in accordance with the directions,
the Board is of the view that Mr Kwa will be able to instructions or wishes of Temasek in relation to the
continue to discharge his duties independently corporate affairs of ST Engineering. It also does not
with integrity and competency. generate any issue that may affect his independence
as a Director of ST Engineering. The NC determined
Lim Sim Seng is the Group Head of Consumer that Mr Teo’s position in Temasek would not have
Banking Group and Wealth Management of DBS any conflict or did not impair his ability to act with
Bank (DBS). DBS is one of the many Banks which independent judgement in the discharge of his duties
ST Engineering group companies has a banking and responsibilities as a Director. The Board is of the
relationship with. All transactions between DBS and view that the relationships set out above do not interfere
ST Engineering group companies are conducted in with the exercise of Mr Teo’s independent business

judgement in the best interests of ST Engineering and

Board Membership and Board Performance
therefore, he is considered independent Director.
(Principle 4 and 5)
Joseph Leong Weng Keong* is considered as non-
executive non-independent Director given his position The Board is supported by the following Board
as Permanent Secretary (Defence Development) of Committees:
Ministry of Defence.
• Audit Committee
LG Ong Su Kiat Melvyn is considered as non-executive • Executive Resource and Compensation Committee
non-independent Director given his position as Chief • Nominating Committee
of Defence Force of Ministry of Defence. • Research, Development and Technology Committee
• Risk and Sustainability Committee
Tan Peng Yam is considered as non-executive • Strategy and Finance Committee
non-independent Director given his position as
Chief Defence Scientist of Ministry of Defence. Nominating Committee
Independent and Non-Executive Directors

Chairman and Chief Executive Officer Lim Chin Hu (Chairman)
(Principle 3)
Kwa Chong Seng
Lim Sim Seng
The Chairman and Group President & CEO roles and
responsibilities are kept separate in order to maintain Ng Bee Bee (May)
effective oversight. The recommendation in the Code Teo Ming Kian
for a lead independent director is not applicable as the
Chairman and the Group President & CEO are separate
individuals and are not related. No individual or small The NC comprises five members, all of whom
group of individuals dominates the Board’s decision (including the chairman) are non-executive
making process. The Group President & CEO and independent Directors. The NC is responsible
senior management regularly consult with individual for reviewing the composition of the Board and
Board members and seek the advice of members of identifying suitable candidates to the Board,
the Board Committees through meetings, telephone in particular, candidates with the appropriate
calls, as well as by email. qualifications, skill sets and experience who are
able to discharge their responsibilities as Directors.
The Chairman is responsible for leading the Board Shortlisted candidates are recommended to the
and ensuring the effective functioning of the Board Board for approval. The NC is also responsible for
to act in the best interests of the Company and its reviewing and determining the independence of
shareholders. The Chairman facilitates the relationship non-executive Directors annually, conducting Board
between the Board, Group President & CEO and performance evaluation, reviewing succession
management, engaging them in open dialogue over planning for the Board and its committees,
various matters including strategic issues, sustainability, including the Chairman and the Group President
risks and business planning processes. He ensures & CEO, as well as key Senior Management, and
that discussions at the Board level are conducted reviewing director training and professional
objectively and professionally where all views are heard development programmes according to the
and key issues are debated in a fair and open manner. needs of each individual director.
The Chairman also ensures that adequate time is
provided for discussion of strategic issues and key NC met
concerns at Board meetings. He represents the
views of the Board to the shareholders.
3 times
in 2021
Vincent Chong as an executive Director and Group
President & CEO, is accountable to the Board for
the conduct and performance of the Group. He has The NC is continually engaged in the Board renewal
been delegated authority to make decisions within process of ST Engineering, having regard to the
certain financial limits authorised by the Board. He is skills, experience and industry expertise needed
supported in his work by the Senior Management. for a balanced board composition to, among other
* Joseph Leong Weng Keong will cease to be a Director with effect from 1 April 2022.

things, oversee governance, risks and sustainability Maximum Board Representation

within the Group’s business. When the need for a The NC reviews directorships of the Board and determine
new director is identified, potential candidates are if a Director is able to and has been adequately
identified from various sources including internal carrying out his or her duties as a Director, taking into
references or recommendations made by Directors. consideration the Director’s number of listed company
The NC will assess a shortlist according to the type board representations and other principal commitments.
of expertise needed. The NC will also assess a
candidate’s character, independence and experience The NC noted the list of other directorships held by
to ensure that he/she has the requisite standard of our Directors, taking into consideration their principal
competence to carry out his/her duties as a director commitments. The NC and the Board are satisfied that
of a listed company as well as to enhance the Board’s each of the Directors is able to devote time to carry out
effectiveness. his/her duties as Director in the Company.
The NC is tasked to oversee and review the succession The Board has considered and agreed not to set
planning process for board renewal including that of guidelines for a maximum directorship that a Director
the Chairman of the Board, having regard to achieving can hold. Annually, an incumbent Director is asked
a balance of skills, diversity, independence, knowledge to affirm that he/she has adequate time to devote to
and attributes required of an effective Board. The NC his/her Board responsibilities. ST Engineering Board
also oversees and reviews the succession planning members are selected on the basis of their ability to
for the Group President & CEO and key senior contribute to the Board through their relevant skill
management. sets, experience, calibre and willingness to devote
time. In addition, each director is required to provide
Board Evaluation an annual affirmation of commitment to his/her
The NC conducted an annual Board Evaluation to Board responsibilities. With these considerations,
gauge the effectiveness of the Board and Board the Board is of the view that setting a maximum
Committees as well as the individual Board number of board representations for our Directors
member’s performance. is not needed.
With effect from FY2021, the Company engages an Re-election of Directors

independent external consultant once every three The NC is also responsible for renewal and succession
years to facilitate the Board evaluation process and plans to ensure Board continuity. At each Annual
provide the Board with an independent perspective General Meeting (AGM), one-third of the directors
of the Board’s performance, including benchmarking with those longest in office since his/her last
against peer boards and best practices. re-election have to retire. Effectively, this results in
all directors having to retire at least once every three
In FY2021, Aon Solutions Singapore Pte. Ltd. (Aon), years or even earlier, in compliance with Rule 720(5)
an independent external consultant was appointed of the SGX-ST Listing Manual. A retiring director may
to facilitate the Board evaluation process. The submit himself/herself for re- election. Under this
performance criteria includes Board composition, provision, Lim Chin Hu, Quek See Tiat and Song Su-
information management, Board processes, ESG, Min will retire at the 2022 AGM. Kevin Kwok Khien,
Board strategies and priorities, managing Company’s Tan Peng Yam and Teo Ming Kian who are newly
performance, CEO Development and succession appointed during FY2021, will hold office until the
planning, Director development and management, forthcoming AGM of the Company. The retiring
risk management, Board Committee effectiveness Directors, being eligible, have offered themselves for
covering general evaluation of Committees, Committee re-election. In accordance with Rule 720(6) of the
self evaluation, overall perception and Directors’ peer SGX-ST Listing Manual, the information relating to the
evaluation on individual Director’s performance. The retiring Directors seeking re-election is found on pages
evaluation was conducted by way of questionnaire 25 to 27 of this Annual Report.
via online platform. A report on Board and Committee
evaluation (including benchmarking against general Each of the retiring non-executive Directors has
market and recommendation) was shared with the confirmed that he/she does not have any relationship
NC and the Board. The Board took on board the with his fellow Directors nor with the Company and
recommendations and feedback in the report on areas its substantial shareholders.
for improvement. In respect of the Individual Director’s
performance, the NC and Board Chairmen acted on The Board, acting on the recommendation of the
the results of the evaluation and arrange for one-to-one NC, proposes that each of the retiring Directors be
feedback session with the director, where necessary. re-elected at the Company’s 2022 AGM.

Strategy and Finance Committee related activities, promoting R&D and inculcating
innovative culture, identifying areas of synergy with
Independent and Non-Executive Directors respect to R&D capabilities, facilities and resources,
Kwa Chong Seng (Chairman) as well as identifying new technologies that will
enhance the core businesses of the Group.
Lim Ah Doo
Lim Chin Hu Please refer to page 30 of this Annual Report for
Lim Sim Seng details on the Company’s Technology & Innovations
Teo Ming Kian activities and expenditures.
Non-Independent and Executive Director RD&T met

Vincent Chong Sy Feng
1 time
in 2021
The Strategy and Finance Committee’s (SFC) role
includes guiding management in the development
REMUNERATION MATTERS
and execution of the Group’s five-year plan and
growth strategies as well as deliberating and
approving tender proposals which are above Procedures for Developing Remuneration Policies
established contract value limit. (Principle 6)
The SFC has incorporated sustainability and ESG Level and Mix of Remuneration
factors in the Group’s five-year plan. Details of the (Principle 7)
Group’s efforts in this area can be found in our
Sustainability Report. Disclosure on Remuneration
(Principle 8)
Access our
ST Engineering Sustainability Report Executive Resource and Compensation Committee

The SFC also reviewed the 2022 Budget prior to Kwa Chong Seng (Chairman)
submission to the Board for approval.
Lim Chin Hu
Lim Sim Seng
SFC met
Teo Ming Kian
2 times
in 2021 The Executive Resource and Compensation Committee
(ERCC) performs the role of the remuneration committee.
The members of the ERCC have held senior positions
Research, Development and Technology Committee
in large organisations and are experienced in the area of
Non-Independent and Non-Executive Director executive remuneration policies and trends. All ERCC
members are non-executive independent directors.
Tan Peng Yam (Chairman)
Independent and Non-Executive Directors ERCC met
Lim Chin Hu
Teo Ming Kian
3 times
in 2021
Non-Independent and Executive Director

All decisions at any meeting of the ERCC are decided
by a majority of votes of the ERCC members present
and voting (the decision of the ERCC shall at all times
The Research, Development and Technology exclude the vote, approval or recommendation of any
Committee’s (RD&T) role includes setting policies member who has a conflict of interest in the subject
and direction for strategic R&D investments and matter under consideration).

The ERCC performs the following duties and In 2020, as part of cost saving measures to mitigate
responsibilities: COVID-19 impact, the Group implemented fee
and salary reductions for the Board and senior
Executive Remuneration General Framework management team ranging between 5% and 20%.
• Reviews and recommends to the Board the Group’s Effective July 2021, the Group restored all fees
general framework for determining executive and salary reductions.
remuneration including the remuneration of
the Group President & CEO , key management A. Fixed Compensation:
executives of the Group (EXCO) and other senior The fixed compensation comprises the base salary
management executives (collectively referred to as and compulsory employer’s Central Provident Fund
“Senior Management Executives”). (CPF) contributions.
Executive Director and Senior Management Executives B. Variable Cash-based Incentives:

• Reviews and recommends to the Board the The variable cash-based incentives include the
entire specific remuneration package and Performance Target Bonus (PTB) and EVA-based
service contract terms for the Group President Incentive Scheme.
& CEO, who is also the executive Director.
Performance Target Bonus
• Considers, reviews, approves and/or varies The PTB is a cash-based incentive for Senior
(if necessary) the entire specific remuneration Management Executives which is linked to the
packages and service contract terms for the achievement of annual performance targets that
Senior Management Executives of the Group. will vary depending on their job requirements.
For FY2021, the Board reviewed and approved
the specific remuneration packages and service Individual performance objectives are set at the
contract terms for the key management executives. beginning of each financial year. The performance
targets are in financial, people, operational, customer
Non-Executive Director Remuneration and sustainability areas aligned to the business’
• Reviews and recommends to the Board the strategic goals. These objectives are cascaded
remuneration framework (including directors’ fees) down to a select group of key executives creating
for non-executive Directors. alignment between the performance of the Group,
Company and the individual.
Equity-based Plans
• Approves the design of equity-based plans and The individual PTB payouts for the Group President &
reviews and administers such plans. CEO and key management executives are determined
by the ERCC based on the Group’s, Company’s
Executive and Leadership Development and individual performance at the end of the
• Oversees the development of management with financial year.
the aim of a continual build up of talent and
renewal of strong and sound leadership to EVA-based Incentive Scheme
ensure the continued success of the Group The EVA-based Incentive Scheme (EBIS), which is
and its businesses. linked to the Company’s economic value-add and
financial performance forms part of the short-term
• Approves appointments to Senior Management incentives for the Senior Management Executives.
Executive positions within the Group.
Under the plan, a portion of EBIS bonus declared for
For financial year 2021, Aon was engaged as the financial year will be paid out annually, while the
remuneration consultant (Remuneration Consultant) remaining portions will be deferred in an EVA bank.
to provide professional advice on Board and executive Amounts in the EVA bank are at risk because negative
remuneration matters. Aon and its principal consultant EVA will result in a clawback of EVA accumulated in
are independent and are not related to the Group or the bank. This mechanism encourages the Senior
any of its Directors. Management Executives to work for sustained EVA
generation and to adopt strategies that are aligned
Executive Remuneration Structure with the long-term interests of the Group.
Remuneration for the Senior Management Executives
comprises a fixed compensation, variable cash-
based incentives, share-based incentives and
market-related benefits.

In addition, the Group has a clawback facility with • the grant of the relevant award being based on
respect to the EVA bank in the event of a restatement inaccurate financial statements;
of the financial results of the Group subsequent to an
earlier misstatement, and provisions for the forfeiture • the participant having engaged in conduct which
of the remaining EVA bank balance on termination resulted in or contributed to any financial loss or
due to misconduct or fraud resulting in any financial reputational harm to the Company or the Group;
loss to the Group. and
Based on the ERCC’s assessment, the Group has • the participant having engaged in misconduct
met the predetermined targets in financial year 2021. or committed fraud or breach of trust or duty in
relation to the Company or the Group.
C. Share-based Incentives:
Shares which were granted in financial year 2021 The Group also has clawback policies for the unvested
were based on the Singapore Technologies shares granted under the 2010 Share Plans in the
Engineering Performance Share Plan 2020 event of exceptional circumstances of restatement
(“PSP2020”) and the Singapore Technologies of the financial results of the Group subsequent to
Engineering Restricted Share Plan 2020 (“RSP2020” an earlier misstatement, or of misconduct or fraud
and together with the PSP2020, the “2020 Share resulting in any financial loss to the Group.
Plans”) approved and adopted by shareholders of the
Company at the 23rd AGM held on 15 May 2020. Share grants under the 2020 Share Plans during
financial year 2021 did not exceed 0.5% of the total
The 2020 Share Plans replaced the Singapore number of issued shares of the Company (excluding
Technologies Engineering PSP 2010 (“PSP2010”) treasury shares and subsidiary holdings), which is the
and the Singapore Technologies Engineering yearly limit set by the ERCC for the 2020 Share Plans.
RSP 2010 (“RSP2010” and together with the
PSP2010, the “2010 Share Plans”), both of which The aggregate number of shares issued and/or to be
expired on 20 April 2020. The expiry of the 2010 issued and the aggregate number of existing shares
Share Plans did not affect the awards under the (including treasury shares) delivered and/or to be
2010 Share Plans which were granted prior to such delivered, pursuant to the 2020 Share Plans, does not
expiry, whether such awards had been released to exceed 5% of the issued share capital of the Company
participants (whether fully or partially) or not. (excluding treasury shares).
The 2020 Share Plans have substantially the Details of the abovementioned share plans and grants
same terms as the 2010 Share Plans, save for the are set out in the Share Plans section of the Directors’
introduction of new malus and clawback rights, Statement from pages 132 to 135 of this Annual Report.
a reduction in size limit (from 8% under the 2010
Share Plans to 5% under the 2020 Share Plans1), PSP2020
amendments to take into account the changes to The objective of the PSP2020 is to motivate Senior
relevant legislation and the SGX-ST Listing Manual, Management Executives to strive for sustained growth
and changes to streamline and rationalise certain and performance of the Group.
other provisions.
Performance share awards are generally granted on
The malus and clawback rights under the 2020 Share an annual basis and are conditional on the Group
Plans allow the ERCC to cancel all or part of any meeting targets set for a three-year performance
award to the extent not yet released to the participant, period. The performance measures used in
and to exercise the right to clawback the monetary performance share grants are:
value of shares which have been released to the
participant within a six-year clawback period, if certain • Absolute Total Shareholder Return (TSR) taking
exceptional circumstances occur in relation to that reference to the Group’s Cost of Equity; and
participant. Such exceptional circumstances include
(but are not limited to): • Earnings Per Share (EPS) growth against pre-
determined EPS growth targets over the relevant
performance period.
1
Percentages are of the total number of issued shares of the Company (excluding treasury shares and subsidiary holdings).

A minimum threshold performance is required for The restricted share awards granted during financial
any shares to be released at the end of the applicable year 2021 were conditional upon the performance
performance period. The actual number of of the Group in financial year 2021. For this grant,
performance shares released will depend on the the Group has met the predetermined performance
achievement of predetermined targets over the threshold level set.
applicable performance period, capped at 170% of
the shares granted. D. Market-related Benefits:
The benefits provided are comparable with local
The release of the shares is also conditional on market practices.
satisfactory individual performance at the end of the
performance period. The Code requires a company to disclose the names
and remuneration of the CEO and at least the top
The performance share awards granted during five key management personnel (who are not also
financial year 2019 were conditional upon the directors or the CEO). Details of the remuneration
performance of the Group from financial years 2019 package for the Group President & CEO are provided
to 2021. For this grant, the Group has partially met in the Summary Remuneration Table for directors on
the predetermined target performance levels set. page 109. Details of the remuneration packages for
the Key Management Executives are provided in the
RSP2020 Summary Remuneration Table for Key Management
The objective of the RSP2020 is to retain and Executives on page 110.
motivate managers and above to strive for sustained
long-term growth of the Group. The plan also aims to In performing the duties as required under its Terms
foster a share ownership culture among employees of Reference, the ERCC ensures that remuneration
within the Group and to better align employees’ paid to the Senior Management Executives are
incentives with shareholders’ interests. The RSP2020 strongly linked to the achievement of business and
allows for restricted share awards to be granted to individual performance targets.
non-executive Directors (“NED Awards”) as part
of their remuneration in respect of their office as This link is achieved in the following ways:
such in lieu of cash. Such awards, which are meant
to align the interests of the Directors with those of a. Allocating a significant portion of executives’
shareholders, will consist of fully paid shares with no remuneration to be subjected to performance
vesting periods or performance conditions imposed conditions and vesting schedules.
although the Directors will be required to hold the
shares for certain moratorium periods. b. Incorporating appropriate individual
performance objectives for awarding of annual
Restricted share awards are generally granted on PTB. The performance targets are in financial,
an annual basis. Save for NED Awards, restricted people, operational, customer and sustainability
share awards are generally conditional on the Group areas aligned to the business’ strategic goals.
meeting a target set for a one-year performance
period. The performance measure used in such c. Linking variable incentives to Group’s
restricted share grants is: performance conditions such as EVA, ROCE,
EPS growth and Absolute TSR and requiring
• Return on Capital Employed (ROCE) those conditions to be met for the incentives to
be awarded or vested.
Under such awards, a minimum threshold
performance is required for any shares to be released d. Setting realistic yet stretched performance
after the end of the applicable performance period. targets each year to motivate a high degree of
The shares will vest equally over a four-year period, business performance with emphasis on both
subject to continued employment with the Group short and long-term quantifiable objectives.
and maintaining a satisfactory performance rating for
the financial year preceding each tranche of vesting.

An annual Pay-for-Performance Alignment study the financial year 2021, except for Quek Gim Chuah,
is conducted by the Remuneration Consultant and the brother of Quek Gim Pew, who retired as a Director
reviewed by the ERCC. The findings indicate strong of the Company on 1 August 2021. Quek Gim Chuah
Pay-for-Performance alignment for the Group in has been with ST Engineering for 34 years since April
terms of both absolute and relative performance. 1987 and is currently the Vice President of Technical
Training for the Commercial Aerospace’s MRO
Under the Code, the compensation system shall business. He reports to the EVP & Head, Aerospace
take into account the risk policies of the Group, be MRO, who functionally reports to President of the
symmetric with risk outcomes and be sensitive to Commercial Aerospace business. In this role, he has
the time horizon of risks. Having considered this, no dealings with ST Engineering’s Board of Directors.
the ERCC has incorporated the following risk Like all other non-executive Directors, Quek Gim
adjustments in the remuneration structure: Pew was not involved in operational matters and
the hiring, appraisal and remuneration of middle
a. Setting a prudent funding mechanism of management, including that of his brother Quek Gim
annual bonus; Chuah. For these reasons, we decided to respect
Quek Gim Chuah’s confidentiality by not disclosing his
b. Subjecting and deferring the vesting of 2020 remuneration band.
Share Plans to pre-determined performance
conditions and potential forfeiture under malus Non-Executive Director Remuneration
and clawback rights; Non-executive Directors (NEDs) have remuneration
packages consisting of directors’ fees and attendance
c. Requiring the executive Director and key fees, which are approved in arrears by shareholders
management personnel to hold a minimum for services rendered in the previous year. The
number of shares under the share ownership Directors’ Remuneration Framework comprises a
guidelines; and basic retainer, attendance and additional fees for
serving on Board committees.
d. Applying discretion, whenever necessary, to
ensure that remuneration outcomes align with For services rendered in financial year 2021, eligible
the long-term interests and performance of the NEDs will receive 70% of the total directors’ fees in
Group and discourage excessive risk-taking. cash and 30% of the total directors’ fees in the form
of restricted shares which are governed by the terms
The ERCC undertakes periodic reviews of the of RSP2020, subject to shareholders’ approval at
compensation system to identify potential its AGM in April 2022.
compensation-related risks and consider policies
and processes to manage risk exposures identified. As the restricted shares are granted in lieu of directors’
remuneration in cash, the shares will be granted
The ERCC is of the view that the level and structure outright as fully paid shares with no performance
of remuneration align with the long-term interests conditions attached and no vesting periods imposed.
and risk management policies of the Group. To encourage the alignment of interests of the NEDs
with the interests of shareholders, the share grant has
During financial year 2021, there were no termination, a moratorium on selling. Each eligible NED is required
retirement and post-employment benefits granted to hold shares in the Group worth the lower of: (a)
to directors, Group President & CEO and Key the total number of shares in the Group granted to
Management Executives other than in accordance such NED as payment of the shares’ component of
with the standard contractual agreement. the NEDs’ fees for financial year 2011 and onwards;
or (b) the number of shares of equivalent value to the
There were no employees who were immediate family prevailing annual basic retainer fee for a director of
members of a director or the Group President & CEO the Group. An NED can sell all his/ her shares in the
and whose remuneration exceeded S$100,000 during Group a year after the end of his/her Board tenure.

The computation of NEDs’ remuneration is based on the following rates.

From Private Sector ($)
FY2021
Chairman Fee (all-in) 750,000
Board Basic Retainer Fee
Director 75,000
Additional/Committee Fees
Audit Committee:
- Chairman 52,000
- Member 29,000
ERCC, SFC, RD&T and RSC:

- Chairman 35,000
- Member 18,000
Other Committees (including NC):

- Chairman 29,000
- Member 14,000
Attendance Fees
Per Board Meeting 5,000
Per Board Committee Meeting 2,500
The Chairman fee is a fixed fee covering Board basic retainer, Board Committee and meeting attendance fees.
The fee is paid in a combination of cash (70%) and shares (30%). The shares granted, as part of the fee, are
fully-paid with no performance conditions attached and no vesting period imposed. However, the shares will
have to be held for at least two years from the date of grant, and the two-year moratorium will apply even in the
event of retirement.
Fees for directors who hold public sector appointments follow the Directorship & Consultancy Appointments
Council’s (DCAC) guidelines as set out below.
Public Sector NED fees ($)

FY2021
Chairman 45,000
Deputy Chairman/Chairman Executive Committee/ Chairman Audit Committee 33,750
Member Executive Committee/Member Audit Committee/Chairman of Other Board Committee(s) 22,500
Director 11,250
NEDs who hold public sector appointments will not be eligible for the shares component of the NEDs’
remuneration. 100% of their remuneration in cash is payable to DCAC, where applicable.
The NEDs’ remuneration payable, after reinstatement of Board fees1 with effect from 1 July 2021, in respect
of financial year 2021 is proposed to be $2,025,158 (FY2020: $1,680,047). Details of the directors’
remuneration are provided in the Summary Remuneration Table for Directors on page 109.
1
The Board volunteered to reduce Board fees by 10% from 1 May 2020.

SUMMARY REMUNERATION TABLE FOR DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2021 (GROUP):
Payable by the Company
Directors’ Total Fees *5
Variable Share-
cash- based based Cash- Share-
Salary *1 Incentives *2 Benefits *3 Incentives *4 based based
Executive Director $ $ $ $ $ $ Total
Vincent Chong Sy Feng 944,409 1,868,703 130,947 1,942,958 - - 4,887,017
Non-Executive Directors #
Kwa Chong Seng - - - - 498,966 213,842 712,808
Kevin Kwok Khien (a)

- - - - 24,670 10,573 35,243
Joseph Leong Weng Keong (b)

- - - - 10,692 - 10,692
Lim Ah Doo - - - - 117,915 50,535 168,450
Lim Chin Hu - - - - 146,590 62,824 209,414
Lim Sim Seng - - - - 126,211 54,090 180,301
Ng Bee Bee (May) - - - - 93,861 40,226 134,087
LG Ong Su Kiat Melvyn (b) - - - - 10,692 - 10,692
Quek Gim Pew (b) (c) - - - - 11,953 - 11,953
Quek See Tiat - - - - 153,976 65,990 219,966
Song Su-Min - - - - 127,365 54,585 181,950
Tan Peng Yam (d)

- - - - 45,337 19,430 64,767
Teo Ming Kian (e)

- - - - 59,385 25,450 84,835
COL Cai Dexian (f)
(Alternate to LG Ong Su Kiat Melvyn) - - - - - - -
COL Xu Youfeng (g)
(Alternate to LG Ong Su Kiat Melvyn) - - - - - - -
Total for Non-Executive Directors - - - - 1,427,613 597,545 2,025,158
Payable by Subsidiaries
Executive Directors
Vincent Chong Sy Feng (h) - - - - 30,000 - 30,000

Non-Executive Directors
Quek Gim Pew (b) (i) - - - - 5,799 - 5,799
Lim Chin Hu - - - - 20,000 - 20,000
Total for Non-Executive Directors - - - - 32,500 - 32,500
# Non-Executive Directors’ fees with reinstatement with effect from 1 July 2021.
*1 Salary includes base salary (with reinstatement) and employer CPF for the financial year ended 31 December 2021.
*2 Variable cash-based Incentives include Performance Target Bonus & EVA-based incentive declared.
*3 Benefits provided for employees are comparable with local market practices. These include medical, dental, insurances, transport, etc.
*4 Share-based Incentives consist of PSP and RSP shares granted for financial year ended 31 December 2021.
*5 The directors’ cash fees and share grants will only be paid/granted upon approval by the shareholders at the forthcoming AGM of the Group.
(a) Pro-rated. Appointed as Director and member of AC on 1 October 2021 and appointed as member of RSC on 1 December 2021.
(b) Fees for public sector directors are payable to a government agency, the DCAC.
(c) Pro-rated. Retired as Director and Chairman and member of RD&T and RSC respectively on 1 August 2021.
(d) Pro-rated. Appointed as Director on 1 August 2021 and appointed as Chairman of RD&T on 15 August 2021. Director’s fee is paid based on
private sector NED remuneration fee structure.
(e) Pro-rated. Appointed as Director on 1 August 2021 and appointed as member of ERCC, NC, RD&T and SFC on 15 August 2021.
(f) Appointed as Alternate Director to LG Ong Su Kiat Melvyn on 1 October 2021.
(g) Ceased as Alternate Director to LG Ong Su Kiat Melvyn on 1 October 2021.
(h) Fees are payable to Singapore Technologies Engineering Ltd.
(i) Pro-rated. Ceased as Chairman and Director of a subsidiary on 18 June 2021.

SUMMARY REMUNERATION TABLE FOR KEY MANAGEMENT EXECUTIVES FOR THE YEAR ENDED
31 DECEMBER 2021 (GROUP)1:
Variable Share-
cash- based based
Salary2
Incentives 3 Benefits4
Incentives 5
Remuneration % % % % Total
Between $2,250,000 and $2,500,000
Foo Chee Keng Cedric 26% 41% 3% 30% 100%
Ravinder Singh s/o Harchand Singh 26% 41% 3% 30% 100%
Between $1,750,000 and $2,000,000
Lim Serh Ghee6 25% 55% 7% 13% 100%
Tan Lee Chew 7
11% 51% 1% 37% 100%
Total for Key Management Executives $8,857,619
1
The ERCC is of the view that the relevant Key Management Executives shall comprise members of the Group Executive Committee.
2
Salary includes base salary (with reinstatement) and employer CPF for the financial year ended 31 December 2021.
3
Variable cash-based Incentives include Performance Target Bonus & EVA-based incentive declared.
4
Benefits provided for employees are comparable with local market practices. These include medical, dental, insurances, transport, etc.
5
Share-based Incentives consist of PSP and RSP shares granted for financial year ended 31 December 2021.
6
Lim Serh Ghee retired as Group Chief Operating Officer (Operations Excellence) on 31 October 2021.
7
Tan Lee Chew was appointed President Commercial on 1 September 2021.
ACCOUNTABILITY AND AUDIT For the Board to discharge its duties objectively
over risks and internal control, Management of
ST Engineering meets with the Board and Board
Risk Management and Internal Controls Committees frequently during the year.
(Principle 9)
RSC met
5 times
The Board is responsible for the governance of risk
and ensures that Management maintains a sound risk
management and internal control system to safeguard in 2021
the interests of the Company and its shareholders.
The Board received a written assurance from the a) Sustainability Oversight

Group President & CEO and the Group CFO that the The RSC oversees the Group’s sustainability matters,
financial records have been properly maintained and including those related to climate change. It provides
the financial statements give a true and fair view of the direction on sustainability strategies (short, medium
Company’s operations and finances. and long term) and monitors progress on sustainability
plans and commitments.
The Risk and Sustainability Committee (RSC) is
established to ensure Management has adequate Information on sustainability is reported to the RSC via
oversight over the awareness and handling of risks the Group Strategy and Sustainability Office.
and sustainability matters.
Details on RSC’s governance and oversight of
Risk and Sustainability Committee sustainability are in our Sustainability Report.

Find out more about
Quek See Tiat (Chairman) Sustainability Oversight
in our Sustainability Report
Kevin Kwok Khien
Song Su-Min
b) Risk Governance
Non-Independent and Non-Executive Directors The RSC assists the Board in its risk governance
LG Ong Su Kiat Melvyn responsibility, overseeing the responsibilities
delegated to Management to ensure that there is a
sound system of controls in place for identifying and
Non-Independent and Executive Director
managing risks in order to safeguard stakeholders’
Vincent Chong Sy Feng interests and the Company’s assets.

The RSC is supported on risk related matters by a) Risk Appetite Framework

the Risk and Assurance (R&A) function which in turn The Risk Appetite Framework defines the risk
works with Chief Risk Officers (CROs) of the respective boundaries in line with our corporate strategy for
businesses and management team. The R&A function compliance within the Group. Under this framework,
is key to making sure that ST Engineering manages the Board has approved the following Group Risk
its risks well, complies with legal and regulatory Appetite Statements with respect to our key risks in line
requirements where it operates and has the right with the Group’s material ESG factors. They serve as a
governance and controls in place. Specifically, key conduit for aligning the Group’s risk profile with the
the R&A function is to: Group’s corporate strategy and business models.
• work with Management to strengthen in-line

Strategic
controls and governance, risk management and We are committed to pursuing sustainable and
compliance (GRC) culture; inclusive growth to enhance our competitive
• provide assurance to Management that the Group advantage whilst upholding our core values.
is conducting its business in compliance with
ESG
all relevant and material regulations, customer We subscribe to ESG best practices to benefit
requirements and internal procedures; and all stakeholders.
• ensure the continued effectiveness of GRC
Financial
frameworks, policies and procedures in Singapore
• We aim to maintain a resilient balance sheet.
and overseas business units. • We have a defined governance framework
to evaluate and approve all investment and
Group Head, R&A reports to Group CFO. The R&A business transactions.
function provides leadership in the implementation
of a Group-wide Enterprise Risk Management (ERM) Regulatory Compliance
framework that allows risks to be identified, assessed, • We comply with all applicable laws and
monitored and managed by the business managers. regulations in the countries where we
operate in.
• We adopt a zero tolerance policy towards
Enterprise Risk Management (ERM) Framework fraud, bribery and corruption.
The Group has put in place an ERM framework to
identify, assess, monitor and manage key business Operational
risks in the short, medium and long term. The ERM • We are committed to “Safety Before Profits”.
framework sets out a common and consistent • We aim to achieve zero accidents at the
understanding of risks and risk tolerance limits workplace.
across the Group. The framework allows the Board
IT and Cyber
and Management to have a shared understanding of We are committed to protecting our data and
the risk philosophy and overall risk appetites as they systems including those entrusted to us by
establish business strategies and objectives. adopting best practices in cybersecurity.
The annual risk work plan is approved by the RSC.

The RSC provides oversight to the Group in
There is at least a member on the RSC who is also formulating and reviewing risk policies and risk
a member of the AC to facilitate communication tolerance limits. These policies and limits are subject
and access of information between the two Board to periodic reviews to ensure that they continue
Committees. to support the Group in achieving its strategic
objectives and are aligned with the Group Risk
During the year, the Board formalised the Group Risk Appetite Framework.
Appetite Framework and Risk Appetite Statements
to promote broader risk awareness and reinforce the b) Risk Aware Culture and Training
desired risk culture across the Group. Additionally, the Embedding the right culture throughout the
R&A function has embarked on a review of the Control organisation is important for effective risk
Self-Assessment Framework, aimed at fostering management. The RSC recognises that good culture
an integrated risk-based control environment and fosters openness that will enable management and
enhancing the basis of assurance from Management. staff to escalate concerns in a timely manner without
This is expected to be progressively implemented fear. This will also promote better judgment and
for Singapore businesses in 2022, and for overseas greater assurance to the Board and Management.
business units in subsequent years.

As part of the risk awareness and communication Quarterly, Cluster Presidents and Presidents of the
programme, annual risk management training plans Business Areas, as well as their respective CROs
covering ST Engineering Code of Business Conduct review respective dashboard of top business risks
and Ethics, and key risk and compliance topics are with the RSC. At the meetings, the risk management
rolled out at the Group level. The RSC is updated action plans and measures to address these risks
regularly on the status of these trainings. will be discussed. At the same time, they will also
highlight the following for discussion:
c) Risk Review Process
Under the ERM framework, a risk dashboard of the • emerging trends and issues in each business area;
top business risks is developed and maintained by • new risks or changes to existing risk profile;
each of the significant business units, rolling up into • new risk incidents;
a summary dashboard for respective businesses. • major risk exposures; and
Once the top business risks are identified, measures • risk management actions taken on previously
will then be taken to develop and implement risk identified risks.
preventive and mitigating actions (collectively known
as “controls”) and risk monitoring processes. The The RSC continues to monitor the implementation
business managers are required to periodically of risk management policies and procedures and
review the effectiveness of the controls implemented, receives updates on the risk registers maintained
and initiate the necessary changes as the risk by the respective businesses. Key activities during
profile changes. the year include regulatory compliance reviews,
as well as assessment of business disruption risks
and their corresponding continuity plans.
ENTERPRISE RISK MANAGEMENT SYSTEM
ERM ERM ERM

INFRASTRUCTURE PROCESS REPORTS
Vision and Goals Risk and Incident Registers

ss Analysis
Oversight Structure s ine Financial and Risk Reports
Bu
Ri
Roles and Responsibilities
sk
ng
Id
rti
en
Common Language
ep o
tific
Risk R
ation
Policies and Manuals Business Goals,

Tolerances and Limits Objectives
and Strategies
Technology and Tools
n
Ris
tio
i sa
kS
r it
tra
eg
Pr
io
t
ie
s nd
a
R i s k As s e s s m ent
BUILDING A STRONG ERM CULTURE
STRENGTHENING ERM CAPABILITIES
Change Continuous Communication Information Awareness /

Management Improvement Sharing Training

d) Control Self-Assessment Process The Board has received assurance from the Group
The Control Self-Assessment (CSA) is a process President & CEO and Group CFO on the adequacy
whereby the business risk owners, together with the and effectiveness of the Company’s internal controls
respective control owners, evaluate and assess the and risk management system. Based on the internal
effectiveness of the controls established to manage controls and risk management process established
key risks. This self-assessment complements the basis and maintained by the Group, work performed by the
of assurance from Management on the adequacy and internal and external auditors, and reviews performed
effectiveness of the system of risk management and by management and various Board Committees,
controls to manage the key business risks. the Board is satisfied that the Group’s framework of
internal controls (including financial, operational,
System of Internal Control and Risk Management compliance and information technology controls) as
The Board receives, at regular intervals, updates from well as the risk management systems are adequate
the Board Committees on the key business risks, and effective as at 31 December 2021.
the material controls to manage these risks, and the
internal audit reports on the operational effectiveness The Audit Committee concurs with the Board on the
of the material controls. Accordingly, the Board, adequacy and effectiveness of the internal controls
through the Board Committees and supported by the and risk management systems established and
Group’s R&A function and Internal Audit function, is maintained by the Group as at 31 December 2021.
satisfied that internal control issues are identified on a In this regard, the Board also notes that no framework
timely basis and remedial actions are taken promptly of internal controls can provide absolute assurance
to minimise lapses. against the occurrence of material errors, poor
judgment in decision making, human error, fraud or
other irregularities.
KEY BUSINESS RISKS OF ST ENGINEERING
Product and Product

Technology Liability
Obsolescence and Safety
Business
Mergers and Disruption
Acquisitions
GROWTH AND
COMPETITION OPERATIONS
Talent
Management Contract
and Compliance
Succession
Planning
Key
HUMAN Business
CAPITAL Risks
Total
Workplace Regulatory
Safety Compliance
and Health ETHICS AND
GOVERNANCE
FINANCIAL
Bribery and
Credit Corruption
Foreign
Exchange Cyber Risks
For a detailed write-up of

the Group’s key risks,
please visit our corporate website:

ST Engineering’s IA function (IA) is staffed with

Audit Committee
individuals with the relevant qualifications and
(Principle 10)
experience and comprises a team of 20 staff
members, including the Group Head, IA, who reports
to the AC.
Quek See Tiat (Chairman) IA is a corporate member of the Singapore Chapter of
Kevin Kwok Khien the Institute of Internal Auditors (IIA) and adopts the
Lim Ah Doo International Standards for the Professional Practice
of Internal Auditing (the IIA Standards) laid down in
Song Su-Min
the International Professional Practices Framework
issued by the IIA.
The Audit Committee (AC) comprises all independent
Directors with majority, including the AC Chairman, The AC is satisfied that IA is independent, effective
having relevant accounting or related financial and adequately resourced.
management experience. The AC does not comprise
any former partner or director of ST Engineering’s The AC considered and approved the 2021 Audit Plans
existing audit firm within two years preceding their for the external and internal audits. In addition, the AC
appointment to the AC and none of them have any reviewed the adequacy of internal control procedures
financial interest in the audit firm. including cybersecurity issues, interested person
transactions and the issues raised in all IA reports.
The duties of the AC include the following:
External Auditors
• reviewing the significant financial reporting issues The appointment of external auditors is subject to
and judgements so as to ensure the integrity of approval at each AGM. In making its recommendations
the financial statements and all announcements to shareholders on the appointment and re-
relating to financial performance; appointment of external auditors, the Board relies on
the review and recommendations of the AC. The AC
• reviewing at least annually the adequacy and
reviews the adequacy, effectiveness, independence,
effectiveness of internal controls and risk
scope and results of the external audit and makes
management systems;
recommendation to the Board on the appointment,
• reviewing the assurance from the Group President removal, remuneration and the terms of engagement
& CEO and the Group CFO on the financial of the external auditors. In compliance with the
records and financial statements; SGX-ST Listing Manual, an audit engagement partner
• making recommendation to the Board on the may only be in charge of an audit for up to five
appointment, removal, remuneration and the consecutive years. PricewaterhouseCoopers LLP,
terms of engagement of the external auditors; first appointed in 2020, has met this requirement,
and the current audit engagement partner also took
• reviewing the adequacy, effectiveness, over ST Engineering’s audit in 2020.
independence, scope and results of both the
external and internal audit functions; and Fees paid to the external auditors for audit and
• reviewing the whistleblowing policy and non-audit services of the Group for financial year
arrangements and all significant whistleblowing 2021 totalled $4.5m, of which $0.21m or 5% were for
cases; the AC Chairman also chairs the Whistle- non-audit services. The AC was satisfied that the
blowing Committee and is supported by the non-audit services provided by the external auditors
Group CFO, Group General Counsel, Group Chief did not compromise their independence.
Human Resource Officer, Group Head, R&A and
Group Head, Internal Audit (Group Head, IA). The Company has complied with Rules 712 and
715 of the SGX-ST Listing Manual in relation to the
The Group Head, IA has unrestricted access to the AC. engagement of its auditors.
The AC reviews the appointment, remuneration and
resignation of the Group Head, IA. AC met
5 times
in 2021

During the year, the AC held five meetings, including a and full-year results. In the light of the COVID-19
joint meeting with the RSC to review significant risks of pandemic impacting the Group’s businesses, the AC
the Company and related key controls. reviewed the areas of financial statements affected
by the pandemic. Amongst the matters discussed
The AC also met with the external auditors, and with Management and the external auditors, the
with the internal auditors, in each case without the following significant matters impacted the financial
presence of Management. statements, and were reviewed by the AC in relation
to their materiality and appropriateness in approach,
The AC reviewed the financial statements of the Group methodology and assessment:
before the announcement of the Group’s half-yearly
Significant matters How the AC reviewed these matters
Impairment assessment The AC reviewed the reasonableness of cash flow forecasts, the long-term growth rates
of non-financial assets – and discount rates used in the valuation models in goodwill impairment assessments, as
goodwill well as how the impact of COVID-19 has been considered in the cash flow forecasts. The
AC also reviewed the stress testing of the valuation and its sensitivity to changes in key
assumptions used in the valuation model.
Revenue recognition based The AC reviewed the various controls that were designed and applied by the Group in
on stage of completion the recognition of revenue and profit from contracts with customers to ensure that the
estimates used in determining the amount of revenue and costs recognised for the
performance obligations were appropriate.
The AC concluded that Management’s accounting ST Engineering is committed to conducting business

treatment and estimates were appropriate for the with integrity and adopts a zero-tolerance attitude
above significant matters. All the key audit matters towards any malpractice, impropriety, statutory
(KAMs) that were raised by the external auditors for non-compliance and/or any wrongdoing by board
the financial year ended 31 December 2021 have members, employees and any other parties with a
been addressed by the AC and discussed in the above business relationship with the Group. The Whistle-
commentary. The KAMs in the audit report for the blowing Committee - with the assistance of the Group
financial year ended 31 December 2021 can be found Head, IA – reviews and deliberates over the contents
on pages 139 to 140 of this Annual Report. of the incident raised and determines the subsequent
measures to adopt, including making enquiries
The AC was kept updated on relevant changes in and pursuing investigations (internal or external).
accounting standards and their implications on the The AC reviews the adequacy of every investigation
financial statements. instituted with their corresponding outcomes. Under
these procedures, arrangements are in place for
Whistleblowing Policy independent investigation of reported concerns and
The AC has reviewed the ST Engineering Whistleblowing for appropriate follow-up actions to be taken.
Policy and is satisfied with the procedures through
which the employees and other stakeholders Harassment or victimisation of the whistleblower is
may, in confidence, raise concerns about possible not tolerated. Reasonable and appropriate actions,
improprieties in business conduct, financial report or subject to applicable laws, are taken to protect all
other matters without the fear of reprisals. No form of whistleblowers who raise a concern in good faith.
retaliation to the informant (internal or external) Appropriate disciplinary action may be taken against
is tolerated for any report made in good faith. employees who retaliate against the whistleblower.

Our whistleblowing policy facilitates the in-confidence Where any IPT requires shareholders’ approval,
disclosures of possible impropriety or non-compliance. the interested person abstains from voting and the
All reports, which may be made anonymously, are decision is made by other shareholders.
treated with strict confidentiality. Non-anonymous
whistleblowers (with contactable details) are informed The general mandate from shareholders is put up
when investigations are concluded. for approval at each AGM and stipulates the review
procedures to ensure IPTs are undertaken on arm’s
All stakeholders, including employees, customers, basis and on normal commercial terms consistent
suppliers and the general public, can report with the Group’s usual business practices and
incidents through various reporting channels that are policies, which are generally no more favourable
independently managed. to the interested persons than those extended to
unrelated third parties.
View our Details of IPTs entered into by the Group for financial
whistleblowing reporting channels year 2021 are set out on page 281 of this annual report.
Whistleblowing Procedure SHAREHOLDER RIGHTS AND ENGAGEMENT

Employees and other stakeholders may raise their
concerns anonymously or otherwise and/or write
Shareholder Rights and Conduct
to seek advice on the ST Engineering’s anti-bribery
of General Meetings
programme through the various whistleblowing
(Principle 11)
communication channels (i.e. dedicated email
account, postal address, 22 geographical toll-free
telephone numbers, web and mobile reporting Conduct of 24th Annual General Meeting
applications, hosted by an independent external Arising from the COVID-19 pandemic, ST Engineering’s
provider). 24th AGM was conducted in accordance with the
alternative arrangements for general meetings
Concerns involving any member of the Board or the prescribed by a ministerial order issued under the
Senior Management or the Group Head, IA may be COVID-19 (Temporary Measures) Act 2020.
reported directly to the Chairman of the Board, the
AC Chairman and the Group President & CEO via The Annual Report, Notice of AGM and Proxy Form for
dedicated email at [email protected]. The reporting the 24th AGM were made available via SGXNET and
channels are published on the Group’s website, our corporate website. The meeting was conducted via
intranet, and offices for accessibility and awareness. electronic means whereby its shareholders attended
The Whistleblowing Policy and Procedures are via live audio-visual webcast or live audio-only
reviewed by the AC from time to time to ensure that stream. Shareholders submitted questions in advance
they remain relevant. upon registration for the attendance. The Company
addressed the substantial and relevant questions
Interested Person Transactions received by publishing the answers via SGXNET and
The Group has established policies and procedures our corporate website before the meeting.
for reviewing and approving interested person
transactions (IPTs) in accordance with the general Our Group President & CEO started the 24th AGM by
mandate from shareholders to ensure that such recapitulating the Company’s growth strategy and
transactions are conducted fairly on an arm’s length aspiration, as well as the Group’s performance in
basis and will not be prejudicial to the interest of the 2020. He also provided an overview of the Group’s
Company and/or its minority shareholders. priorities in 2021, the Group’s operations amid
COVID-19 and the mitigation factors for COVID-19
The Group maintains a register of interested persons impact as well as the Group’s support to the local eco
to facilitate the identification of IPTs. systems. The presentation material was also available
on both SGXNET and our corporate website.
IPTs are reviewed by internal auditors and reported to
the AC on a quarterly basis. The Chairman and President & CEO addressed all
questions submitted live during AGM.

On voting, each proposal was put to vote as a separate This change from declaring dividends semi-annually to
resolution. We do not “bundle” resolutions.Shareholders quarterly will provide shareholders with more frequent
appointed Chairman as their proxy to vote on their behalf income streams. Notwithstanding the new dividend
at the 24th AGM. All proxy votes were received by the 72 policy, ST Engineering continues to focus on and has
hours’ deadline prior to meeting and were verified by sufficient financial capacity to seek growth pursuant to
the appointed independent scrutineers. the Group’s strategy as communicated at its Investor
Day in November 2021, and as it has demonstrated in
Extraordinary General Meeting (EGM) the last few years.
The Company convened an EGM on 15 December
2021 to seek shareholders’ approval for the proposed
Engagement with Shareholders
acquisition of all of the issued and outstanding
(Principle 12)
interests of TransCore Partners, LLC and TLP Holdings,
LLC from TransCore Holdings, LLC. The Company
recieved an overwhelming support of 99.92% approval ST Engineering treats all shareholders fairly and
for the proposed acquisition. equitably in order to enable them to exercise
shareholders’ rights and have the opportunity to
communicate their views on matters affecting
Read our the Company. The Company ensures that all
AGM and EGM minutes
communications of material information, including
price-sensitive and trade-sensitive information, are
Provision 11.4 of the Code provides for a company’s timely, balanced and fair and in compliance with the
constitution to allow for absentia voting at general SGX-ST Listing Manual and the Code.
meetings of shareholders. Presently, absentia voting
(such as by mail, email or fax) is not permitted under The Investor Relations (IR) department is an integral
the Company’s Constitution. The Company does conduit between the Company and investment
not intend to amend its Constitution to provide for community. The Investor Relations team maintains
absentia voting until security, integrity and other regular dialogues with shareholders and the
pertinent issues relating to absentia voting are investment community through a multi-channel
satisfactorily resolved. Nevertheless, the Company programme to promote effective communication
is of the view that notwithstanding its deviation from that gives them a balanced and understandable
Provision 11.4 of the Code, shareholders are treated assessment of the Company’s performance, position
fairly and equitably and have the opportunity to and prospects.
communicate their views on matters affecting the
Company. For instance, shareholders may appoint Targeted events such as AGMs, investor conferences,
proxies to attend, speak and vote, on their behalf, at group briefings and one-on-one meetings offer
general meetings if they are unable to attend. opportunities for senior management and directors
to interact first-hand with shareholders and the
Dividend Policy investment community to understand their views,
On 24 February 2022, the Board approved a dividend gather feedback and address concerns.
policy to declare dividends every quarter instead of
twice a year previously. For FY2022, the plan is for Material information relating to the Company’s
dividends to be paid four times a year, at 4.0 cents per financial performance, business and strategic
share each time resulting in total dividends of 16.0 developments are published on SGXNET, and/or on
cents per share payable for FY2022 (compared to the our corporate website www.stengg.com.
15.0 cents per share paid or payable for FY2021).
A dedicated “Investor Relations” section on our
The dividends for FY2022 are currently scheduled to website houses current and past annual reports,
be paid in June 2022, September 2022, December half-yearly financial reports and webcasts, quarterly
2022 and May 2023. As and when the Board declares market updates, as well as information on AGM and
an interim dividend for each of the first three quarters other information considered to be of interest to
of FY2022, ST Engineering will announce the relevant shareholders and the investment community.
record date and payment date on SGXNet. The final ST Engineering’s Annual Report is available
dividend payable in May 2023 is subject to shareholders’ on our corporate website within 120 days from the
approval at the ST Engineering AGM to be held in April end of the Group’s financial year-end. A printed
2023, the record date and payment date for which will copy of the latest Annual Report can be ordered at
be announced in conjunction with the release of the no cost upon request via email at [email protected].
Group’s full-year financial results for FY2022.

ST Engineering published half-year and full-year MANAGING STAKEHOLDERS RELATIONSHIPS

financial reports comprising detailed financial
statements and management commentaries on the
Engagement with Stakeholders
financial and business performance of the Group
(Principle 13)
within 45 and 60 days from the end of each respective
financial period. Release dates of half-yearly financial
reports are disclosed at least two weeks prior to the The Company engages its material stakeholders.
announcement date via SGXNET. Details can be found in the Sustainability Report
on page 12 and on our corporate website at
Briefings to present the half-year and full-year www.stengg.com.
financial results are held for media, sell-side analysts
and institutional funds, and we welcome retail
investors to observe the briefings virtually. Links DEALINGS IN SECURITIES
to live webcasts for these briefings are posted on
SGXNET and our corporate website. Audio playback
is made available on our website the same day. In The Company has in place a policy which prohibits
addition, we hold briefings for sell-side analysts on our Directors and officers of the Company and the
1st quarter and 3rd quarter to augment our half-yearly Group from dealing in ST Engineering’s securities
briefings, mainly to update on topical trends, contract one month before the announcement of half-year
wins and order book. The presentation materials are and full-year financial results (the black-out period).
posted on SGXNET and our corporate website before They are informed of the commencement date for
trading starts. each black-out period and are regularly reminded
not to deal in ST Engineering’s securities at all times
In addition to the investment community, the IR team if they are privy to any unpublished material price-
engages ESG-related research and rating agencies sensitive or trade-sensitive information. They are also
to communicate the Company’s sustainability advised to observe the insider trading laws at all times
framework, approach and goals. Relevant functions even when engaging in dealings in ST Engineering’s
or departments such as Sustainability, Human securities within the permitted window periods, and
Resources and Risk & Assurance may also participate not to deal in ST Engineering’s securities on short-
in these exchanges. term consideration.
The Company’s Investor Relations Policy, available The Company will also not purchase or acquire its
in the “Investor Relations” section on our website, securities during the black-out period and at any time
sets out general communication principles and after a price-sensitive or trade-sensitive development
mechanism of shareholder engagement. Contact has occurred or has been the subject of a decision
details of the IR team are available on the corporate until the price-sensitive or trade-sensitive information
website. We value opportunities to engage with has been publicly announced.
our investors and shareholders, who can contact the
IR team directly through email or telephone. The IR
team will respond to any queries received through CODE OF BUSINESS CONDUCT & ETHICS
email within three working days.
We welcome the investment community to subscribe Our Code of Business Conduct and Ethics (Code) is
to news alerts or follow our social media channels developed based on key principles guided by our Core
to stay updated on our business developments and Values - Integrity, Value Creation, Courage, Commitment
happenings. and Compassion. This Code forms the backbone of our
commitment to ethical business conduct and regulatory
compliance. Our employees’ performance appraisal
are linked to the Code through the evaluation of the
employees’ demonstration of the Core Values.

The Code of Business Conduct and Ethics is ANTI-BRIBERY & CORRUPTION

disseminated to employees globally in the form
of handbooks and video messages from senior
management. To supplement this Code, we have The Group has zero tolerance for fraud and corruption
developed an e-learning module which is to be and has detailed policies and compliance procedures
completed by all employees on a yearly basis. related to anti-bribery and corruption.
Employees
Read more about our The Group has detailed policies for our employees, as
Code of Business Conduct and Ethics
well as training, compliance procedures and whistle-
blowing channels that are accessible to employees and
external parties. Our Code is designed to ensure our
LOBBYING & POLITICAL CONTRIBUTION employees uphold the highest standards of business
ethics and integrity. Severe disciplinary actions will be
taken in the event of any breach or non-compliance.
Political contributions, donations or sponsorships
must be approved by management in accordance Risks
with the Group’s approval limits policy and be made The Group’s operations are assessed for risks related to
with the highest ethical standards and in compliance corruption as part of the Enterprise Risk Management
with all applicable laws of the jurisdictions where we framework. In addition, the Group’s R&A function and
operate in. They must not confer a personal benefit, IA collaborate closely to examine potential corrupt
and must not be given to gain a business advantage or practices in the planning and conduct of their reviews.
to influence a business outcome or an official action. The significant corruption-related risks as identified
relate primarily to using third-party suppliers and
intermediaries, corruption by employees, and gifts,
CYBERSECURITY / DATA PRIVACY & PROTECTION hospitality, donations and sponsorships to business
partners and public officials.
ST Engineering understands the need for strong Conflict of Interest

cybersecurity as digital technology and highly Our Conflict of Interest policy provides guidance
connected economies and businesses bring new on the different types of conflicts, ranging from
vulnerabilities from a proliferation of cyber threats. financial interest to employee relationships. All
We continue to strengthen our cyber resilience with a relevant employees are required to submit an annual
system of cybersecurity capabilities that comprises declaration of conflict of interest. All declarations are
People, Process and Technology. subject to review by management, and employees are
to comply with the recommended actions to address
We also equip our employees with relevant any conflict.
cybersecurity knowhow through internal campaigns
to protect the Group from cyber threats. Gifts and Hospitality
The Group has a Gifts and Hospitality policy, setting out
Our Personal Data Policy is available on our website. clear guidelines and principles on the giving and receipt
We have implemented policies and practices in our of gifts and hospitality items. This includes charitable
organisation to ensure we comply with applicable donations and sponsorships, where recipients are
data protection laws and regulations. These policies reviewed and subject to appropriate due diligence
describe the types of personal data we may collect before approval by senior management.
from individuals, how we may use that information,
and to whom we may share it with. They also prescribe Intermediaries
the measures that we take to protect the security of The appointment and re-engagement of intermediaries
the personal data entrusted to us. are governed by formal policy and procedures that
entail a risk-based and thorough due diligence review
process supported by independent, established service
Read more about our providers. The due diligence process includes (a)
Personal Data Policy
onboarding and ongoing screening against sanctions

lists and negative media publicity, (b) mandatory anti- The Group has in place a Regulatory Compliance
bribery and corruption training, and (c) compliance Framework that proactively identifies applicable
with our anti-bribery and corruption policy and clauses Export Control Regimes, and embeds compliance
as part of the terms and conditions of the agreement. into the day-to-day business processes, namely
In addition, intermediaries are subject to due diligence commodities classification, screening of customers
checks by established, independent third-party service or end-users, end-use destinations, purposes, record
providers prior to and post appointment. keeping and tracking of Controlled Items.
Compliance with Export Control Regimes is facilitated

EXPORT CONTROL by the Group’s Export Control Support structure that
is staffed by Export Control Officers who are
appointed at the Group, regional, country and Line
Our Export Control Policy aims to ensure that all our of Business levels.
exports are kept out of the hands of unauthorised users
and not used for unauthorised purposes. Regular awareness-level export compliance training
is provided for all relevant employees, and targeted
ST Engineering is committed to complying with all training for employees whose job functions entail
applicable laws, regulations, trade sanctions and greater involvement with Controlled Items.
embargoes (collectively referred to as “Export Control
Regimes”) governing the export of goods, services, In the event of potential or actual violations, immediate
software, technology and information (“Controlled reporting, decision-making and corrective measures
Items”) of all jurisdictions the Group operates in. are to be carried out under the supervision of senior
management and the EXCO. Significant violations are
ST Engineering is also committed to taking steps to reported to the Risk and Sustainability Committee,
ensure that transactions undertaken by any party where lessons learnt are distilled and shared.
operating on behalf of the Group, including agents,
distributors, and resellers, comply with applicable Employees may also utilise the reporting channels
Export Control Regimes. Strict adherence to this policy found in our website to report potential violations of
is required, except to the extent that a more stringent Export Control Regimes.
local law applies.
Access our
whistleblowing channels

FINANCIAL
REPORT
Directors' Statement 122

Independent Auditor’s Report 137
Consolidated Income Statement 144
Comprehensive Income
Financial Position
Changes in Equity
Cash Flows
Notes to the Consolidated Financial 154
Statements
Statement of Financial Position 274
of the Company
Notes to the Statement of 275
Financial Position of the Company
Shareholding Statistics 279
SGX Listing Rules Requirement 281

DIRECTORS’ STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2021
(CURRENCY - SINGAPORE DOLLARS UNLESS OTHERWISE STATED)
We are pleased to submit this annual report to the members of the Company together with the audited financial
statements of the Group for the financial year ended 31 December 2021 and the statement of financial position of the
Company as at 31 December 2021.
In our opinion:
(a) the consolidated financial statements of the Group and the statement of financial position of the Company set
out on pages 144 to 278 are drawn up so as to give a true and fair view of the financial position of the Group and
of the Company as at 31 December 2021, and changes in equity, financial performance and cash flows of the
Group for the year ended on that date in accordance with the provisions of the Singapore Companies Act 1967
and Singapore Financial Reporting Standards (International); and
(b) at the date of this statement, there are reasonable grounds to believe that the Company will be able to pay its
debts as and when they fall due.
The Board of Directors has, on the date of this statement, authorised these financial statements for issue.
Directors
The directors of the Company in office at the date of this statement are as follows:
Kwa Chong Seng (Chairman)

Kevin Kwok Khien (Appointed on 1 October 2021)
Joseph Leong Weng Keong
Lim Ah Doo
Lim Chin Hu
Lim Sim Seng
Ng Bee Bee (May)
LG Ong Su Kiat Melvyn
Quek See Tiat
Song Su-Min
Tan Peng Yam (Appointed on 1 August 2021)
Teo Ming Kian (Appointed on 1 August 2021)
COL Cai Dexian (Alternate Director to LG Ong Su Kiat Melvyn)
(Appointed on 1 October 2021)
Arrangements to enable directors to acquire shares or debentures
Except for the Singapore Technologies Engineering Performance Share Plan 2010 (PSP2010), the Singapore
Technologies Engineering Performance Share Plan 2020 (PSP2020), the Singapore Technologies Engineering
Restricted Share Plan 2010 (RSP2010) and the Singapore Technologies Engineering Restricted Share Plan
2020 (RSP2020 and collectively, the ST Engineering Share Plans), neither at the end of nor at any time during the
financial year was the Company a party to any arrangement whose objects are, or one of whose object is, to enable
the directors of the Company to acquire benefits by means of the acquisition of shares in or debentures of the
Company or any other body corporate.

Directors’ interests
Except as disclosed in this statement, no director who held office at the end of the financial year had interests in shares,
debentures, warrants, share options or awards of the Company or of related corporations either at the beginning of the
financial year or date of appointment if later, or at the end of the financial year.
According to the register kept by the Company for the purposes of Section 164 of the Singapore Companies Act 1967,
particulars of interests of Directors who held office at the end of the financial year in shares, debentures, warrants, share
options and awards in the Company and its related corporations were as follows:
Holdings in the name of the director,

spouse or infant children
1 January 2021
or date of 31 December
appointment 2021
The Company
Ordinary Shares
Kwa Chong Seng 1,153,800*1 1,208,500*1

Vincent Chong Sy Feng 2,296,793 2,661,271*2
Kevin Kwok Khien 170,000 170,000
Lim Ah Doo 87,300*3 99,900*3
Lim Chin Hu 90,000*3 104,800*3
Lim Sim Seng 63,800*3 76,300*3
Ng Bee Bee (May) - 5,000
Quek See Tiat 76,200 91,600
Song Su-Min 17,600 30,100
Tan Peng Yam 9,011 9,011
Conditional Award of Shares under PSP2010 to be delivered after 2020
Vincent Chong Sy Feng (428,600 shares) 0 to 728,620#1 -#2
Vincent Chong Sy Feng (469,385 shares) 0 to 797,954#1 0 to 797,954#1
Vincent Chong Sy Feng (545,958 shares) 0 to 928,128#1 0 to 928,128#1
Vincent Chong Sy Feng (412,777 shares) - 0 to 701,720#1

Directors’ interests (continued)

1 January 2021
appointment 2021
The Company
Unvested restricted shares under RSP2010 to be delivered after 2017
Vincent Chong Sy Feng (82,264 shares) 20,566#3 -
Vincent Chong Sy Feng (180,800 shares) 90,400#3 45,200#3
Vincent Chong Sy Feng (219,234 shares) 164,426#3 109,618#3
Conditional Award of restricted shares under RSP2010 to be delivered

after 2020
Vincent Chong Sy Feng 212,708#4 -
Vincent Chong Sy Feng (212,708 shares) - 159,531#3
Conditional Award of restricted shares under RSP2020 to be delivered

after 2021
Vincent Chong Sy Feng - 174,311#5
Related Corporations
Altrium Private Equity Fund I GP Limited

Limited Partner Interests in the Altrium PE Fund I F&F L.P. fund
for a commitment amount
Teo Ming Kian US$300,000 US$300,000


1 January 2021
appointment 2021
Limited Partner Interests in the Altrium PE Fund II F&F L.P. fund

Teo Ming Kian - US$300,000
Ascendas Funds Management (S) Limited

Unit holdings in Ascendas Real Estate Investment Trust

Lim Chin Hu 66,755*4 66,755*4
Ascott Residence Trust Management Limited

Unit holdings in Ascott Reit-BT Stapled Units*,
held by Ascott Residence Trust
* comprises units of Ascott Real Estate Investment Trust and

Ascott Business Trust
Lim Chin Hu 60,000*3 -

Ascott Residence Trust Perpetual Bond
Teo Ming Kian - S$250,000
Astrea IV Pte. Ltd.

S$242 million Class A-1 4.35% Secured Fixed Rate Bonds due 2028
Teo Ming Kian S$7,000 S$7,000
US$210 million Class A-2 5.50% Secured Fixed Rate Bonds due 2028


1 January 2021
appointment 2021
Astrea V Pte. Ltd.

Class B 5.75% Secured Fixed Rate Bonds
Kwa Chong Seng US$200,000*3 US$200,000*3
S$315 million Class A-1 3.85% Secured Fixed Rate Bonds due 2029
Astrea VI Pte. Ltd.

S$382 million Class A-1 3.00% Secured Fixed Rate Bonds Due 2031
Kwa Chong Seng - S$25,000*3
CapitaLand Integrated Commercial Trust Management Limited

Unit holdings in CapitaLand Integrated Commercial Trust
Kwa Chong Seng - 4,518

Tan Peng Yam 51,917 51,917
Teo Ming Kian 39,872 40,954
CapitaLand Limited
Ordinary Shares
Kwa Chong Seng 29,214 N.A. @

Quek See Tiat 13,000 N.A. @
Tan Peng Yam 10,000 N.A. @
Teo Ming Kian 7,000 N.A. @
CapitaLand Investment Limited

Ordinary Shares
Kwa Chong Seng N.A.@ 29,214

Quek See Tiat N.A.@ 13,000
Tan Peng Yam N.A.@ 10,000
Teo Ming Kian N.A.@ 7,000


1 January 2021
appointment 2021
Fullerton Fund Management Company Ltd

Fullerton SGD Income Fund – Class A
Lim Chin Hu S$453,613*3 S$453,613*3

Quek See Tiat S$1,833,085 S$2,751,350
Mapletree Commercial Trust Management Ltd.

Unit holdings in Mapletree Commercial Trust
Lim Chin Hu 35,500*3 35,500*3

Mapletree Industrial Trust Management Ltd.

Unit holdings in Mapletree Industrial Trust
Lim Chin Hu 37,221*5 43,921*6
Mapletree Logistics Trust Management Ltd.

Unit holdings in Mapletree Logistics Trust
Lim Ah Doo 185,000*3 215,200*3

Lim Chin Hu 94,791*3 98,298*3
Mapletree North Asia Commercial Trust Management Ltd.

Unit holdings in Mapletree North Asia Commercial Trust
Mapletree Real Estate Advisors Pte. Ltd.

Unit holdings in Mapletree Global Student Accommodation
Private Trust (MGSA) – Class A units at US$85
Unit holdings in MGSA – Class B units at £57


1 January 2021
appointment 2021
Unit holdings in Mapletree US & EU Logistics Private Trust (MUSEL) –

Units at US$1,000
Kevin Kwok Khien 300 300
Unit holdings in MUSEL – Units at €305
Kevin Kwok Khien 300 300
Unit holdings in Mapletree US Income Commercial Trust (MUSIC)
Kevin Kwok Khien - US$414,000

Lim Chin Hu - US$250,000*3
Mapletree Treasury Services Limited

S$625 million 4.5% Subordinated Perpetual Securities issued in 2017
(previously described as S$625M 4.5% Perpetual Securities issued in
2017)
Teo Ming Kian S$500,000 S$500,000
S$600 million 3.7% Perpetual Securities under US$5 billion (S$6.8 billion)
Euro Medium-Term Note Programme
Lim Chin Hu - S$250,000*3
Olam International Limited

Ordinary Shares
Kwa Chong Seng 609,279*7 702,670*8

Lim Ah Doo 139,300*3 305,600*3
S$500 million 6% Fixed Rate Notes due 2022
Teo Ming Kian S$250,000 S$250,000


1 January 2021
appointment 2021
Sembcorp Marine Ltd

Ordinary Shares
Kevin Kwok Khien - 196,440

Quek See Tiat - 75,000
Tan Peng Yam 110,000 110,000
Teo Ming Kian - 178,000
Singapore Airlines Limited

Ordinary Shares
Song Su-Min - 20,000

S$700 million 3.035% Notes due 2025
Teo Ming Kian S$250,000 S$250,000
S$3.496 billion Mandatory Convertible Zero-Coupon Bonds due 2030
MCBZ 2021
Singapore Telecommunications Limited

Ordinary Shares

Lim Chin Hu 38,000*3 38,000*3
Quek See Tiat 680 680
Song Su-Min 190 190
Tan Peng Yam 40,380 40,380
Teo Ming Kian 380 380


1 January 2021
appointment 2021
StarHub Ltd
Ordinary Shares

Tan Peng Yam 10,000 10,000
Temasek Financial (I) Limited

T2028 USD 10-year Temasek Bond 3.625% coupon due August 2028
Lim Chin Hu US$250,000*3 -
Temasek Financial (IV) Private Limited

T2023 SGD Temasek Bond S$500 million 2.70% coupon due
October 2023
Quek See Tiat S$7,000 S$7,000

Tan Peng Yam S$14,000 S$14,000
The LifeSciences Innovation Fund Pte. Ltd.

Preference Shares
Vertex Master Fund II (GP) Pte. Ltd.

Limited Partner Interests in VMII Affiliates Fund LP
Vertex Venture Holdings Ltd

S$250,000 denomination VVH Ltd 7-year 3.3% bonds due 28 July 2028
Teo Ming Kian S$250,000 S$250,000


@
Pursuant to the scheme of arrangement undertaken by CapitaLand Limited (CL) and CLA Real Estate Holdings Pte. Ltd. (CLA) as set out in the
scheme document despatched electronically to shareholders of CL on 17 July 2021, CapitaLand Investment Limited was listed on the Mainboard
of the SGX-ST on 20 September 2021 and CL was subsequently delisted from the Mainboard of the SGX-ST on 21 September 2021.
*1
Includes interest in 300,000 shares in Singapore Technologies Engineering Ltd, held in trust by a trustee company on behalf of the director.
*2
Includes interest in 2,300,000 shares in Singapore Technologies Engineering Ltd, held in trust by a nominee bank on behalf of the director.
* Held in trust by a trustee company on behalf of the director.

3
*4
Includes interest in 17,555 unit holdings in Ascendas Funds Management (S) Limited, held in trust by a trustee company on behalf of the director.
*5
Includes interest in 37,100 unit holdings in Mapletree Industrial Trust Management Ltd., held in trust by a trustee company on behalf of the director.
*6
Includes interest in 43,800 unit holdings in Mapletree Industrial Trust Management Ltd., held in trust by a trustee company on behalf of the director.
*7
Includes interest in 189,279 shares in Olam International Limited, held in trust by a trustee company on behalf of the director.
*8
Includes interest in 217,670 shares in Olam International Limited, held in trust by a trustee company on behalf of the director.
#1
A minimum threshold performance over a 3-year period is required for any performance shares to be released and the actual number of
performance shares to be released is capped at 170% of the conditional award.
#2
For this period, Mr Vincent Chong Sy Feng was awarded 190,727 shares upon partial achievement of targets set. The balance of the conditional
award covering the period from 2018 to 2020 has thus lapsed.
#3
Balance of unvested restricted shares to be released according to the stipulated vesting periods.
#4
This conditional award is subject to a performance target set over a one-year performance period from 1 January 2020 to 31 December 2020.
If the performance target is attained, the restricted shares comprised in this conditional award will be released according to the stipulated vesting
periods. The restricted shares will vest annually over four years, subject to the recipient’s continued employment with the Group and maintaining a
satisfactory performance rating for the financial year preceding each tranche of vesting.
#5
This conditional award is subject to a performance target set over a one-year performance period from 1 January 2021 to 31 December 2021.
If the performance target is attained, the restricted shares comprised in this conditional award will be released according to the stipulated vesting
periods. The restricted shares will vest annually over four years, subject to the recipient’s continued employment with the Group and maintaining a
satisfactory performance rating for the financial year preceding each tranche of vesting.
There was no change in any of above-mentioned Directors’ interest in the Company between the end of the
financial year and 21 January 2022.

Share Plans
The Executive Resource and Compensation Committee (ERCC) is responsible for administering the ST Engineering
Share Plans.
The ERCC members are Mr Kwa Chong Seng (Chairman), Mr Lim Chin Hu, Mr Lim Sim Seng and Mr Teo Ming Kian.
Shareholders approved the adoption of the PSP2020 and the RSP2020 (collectively, the 2020 Share Plans) at the
23rd Annual General Meeting (AGM) held on 15 May 2020.
The 2020 Share Plans replaced the PSP2010 and the RSP2010 (collectively, the 2010 Share Plans), both of which
expired on 20 April 2020. The expiry of the 2010 Share Plans did not affect the awards under the 2010 Share Plans
which were granted prior to such expiry, whether such awards had been released to participants (whether fully or
partially) or not.
As at 31 December 2021, no participants have received shares pursuant to the release of awards granted under the:
• 2010 Share Plans which, in aggregate, represent 5% or more of the total number of shares available under the
2010 Share Plans collectively; and
• 2020 Share Plans which, in aggregate, represent 5% or more of the total number of shares available under the
2020 Share Plans collectively.
In relation to the ST Engineering Share Plans:
• no share awards have been granted to controlling shareholders of the Company or their associates;
• the persons to whom the share awards were granted have no right by virtue of these awards to participate in any
share issue of any other company;
• the disclosure requirements in Rule 852(1)(c) of the SGX-ST Listing Manual relating to the grant of options to
directors and employees of the parent company and its subsidiaries is not applicable; and
• the disclosure requirements in Rule 852(1)(d) of the SGX-ST Listing Manual relating to the grant of options at a
discount is not applicable.
Except as otherwise disclosed in this Directors’ Statement, there were no share options or share awards granted by the
Company to any person to take up unissued shares of the Company.
(a) PSP2010 / PSP2020
The PSP2020, like the PSP2010, is established with the objective of motivating Senior Management Executives
to strive for sustained long-term growth and performance of the Group. Awards of performance shares are
granted conditional on performance targets set based on the corporate objectives of the Group.
Performance share awards are generally granted on an annual basis and are conditional on targets set over a
performance period, which is currently prescribed at 3 years.
The performance shares will only be released to the recipient at the end of the applicable performance period.
The actual number of performance shares released will depend on the achievement of set targets over the
performance period. A minimum threshold performance is required for any performance shares to be released
and the actual number of performance shares to be released is capped at 170% of the conditional award.

Share Plans (continued)
(a) PSP2010 / PSP2020 (continued)
The performance measures used in performance share grants are Absolute Total Shareholder Return (TSR)
taking reference to the Group's Cost of Equity and Earnings Per Share (EPS) Growth against pre-determined
EPS Growth targets over the relevant performance period. The release of the shares is additionally conditional
upon satisfactory individual performance.
Details of the awards granted under the PSP2010 and PSP2020 are as follows:
Aggregate
conditional Aggregate Aggregate
Conditional awards awards conditional
awards Awards granted since released since awards not
granted released commencement commencement released as
during the during the to end of to end of at end of
financial year financial year financial year financial year financial year
Participant under review under review* under review under review under review
PSP2010
Director of the Company
Vincent Chong Sy Feng – 190,727 0 to 3,227,862 781,187 0 to 1,726,082
Group Executives
(including Vincent
Chong Sy Feng) – 697,113 0 to 29,215,195 9,033,544 0 to 6,133,333
Aggregate
conditional Aggregate Aggregate
Conditional awards awards conditional
awards Awards granted since released since awards not
granted released commencement commencement released as
during the during the to end of to end of at end of
Participant under review under review under review under review under review
PSP2020
Director of the Company
Vincent Chong Sy Feng 0 to 701,720 – 0 to 701,720 – 0 to 701,720
Group Executives
(including Vincent
Chong Sy Feng) 0 to 3,068,371 – 0 to 3,068,371 – 0 to 2,603,557
* All PSP2010 awards released to participants during the financial year under review were satisfied by way of the transfer of treasury shares
to participants.

(b) RSP2010 / RSP2020
The RSP2020, like the RSP2010, is established with the objective of retaining and motivating managers and
above to strive for sustained long-term growth of the Group. The plans also aim to foster a share ownership culture
among employees within the Group and to better align employees’ incentives with shareholders’ interests. The
RSP2020, like the RSP2010, also allows for restricted share awards to be granted to non-executive Directors
(“NED Awards”) as part of their remuneration in respect of their office as such in lieu of cash. Such awards are
meant to align the interests of the Directors with those of shareholders.
Restricted share awards are generally granted on an annual basis. Save for NED Awards, restricted share
awards are generally conditional on the Group meeting a target set for a one-year performance period. The
performance measure used in such restricted share grants is Return on Capital Employed (ROCE). Under
such awards, a minimum threshold performance is required for any shares to be released after the end of
the applicable performance period. The shares will vest equally over a four-year period, subject to continued
employment with the Group and maintaining a satisfactory performance rating for the financial year preceding
each tranche of vesting.
Since 2011, NED Awards consisting of fully paid shares have been granted to non-executive Directors (other
than those who hold public sector appointments and who will not be eligible for the shares component of the
non-executive Directors’ remuneration) with no performance and vesting conditions but with a requirement for
the Directors to hold the shares for certain moratorium periods. These shares will form up to 30% of their total
Directors’ remuneration with the remaining 70% payable in cash.
Details of the awards granted under the RSP2010 and RSP2020 are as follows:
Aggregate Aggregate
awards awards Aggregate
Awards Awards granted since released since awards not
granted released commencement commencement released
during the during the to end of to end of as at end of
Participant under review under review* under review under review under review
RSP2010
Directors of the Company
Kwa Chong Seng – – 284,700 284,700 –

Vincent Chong Sy Feng – 173,751 0 to 2,237,693 1,850,084 314,349
Lim Ah Doo – – 42,400 42,400 –
Lim Chin Hu – – 4,400 4,400 –
Lim Sim Seng – – 48,400 48,400 –
Quek See Tiat – – 57,900 57,900 –
Song Su-Min – – 2,000 2,000 –
Non-Executive
Directors of the
Company and its
subsidiaries – – 1,304,600 1,304,600 –
Group Executives
(including Vincent
Chong Sy Feng) – 5,672,438 0 to 77,606,426 41,665,745 6,937,348

(b) RSP2010 / RSP2020 (continued)
Details of the awards granted under the RSP2010 and RSP2020 are as follows:
Aggregate Aggregate
awards awards
Awards Awards granted since released since Aggregate
granted released commencement commencement awards not
during the during the to end of to end of released
financial year financial year financial year financial year as at end of
Participant under review under review* under review under review financial year
RSP2020
Directors of the Company
Kwa Chong Seng 54,700 54,700 123,800 123,800 –

Vincent Chong Sy Feng 174,311 – 174,311 – –
Lim Ah Doo 12,600 12,600 27,500 27,500 –
Lim Chin Hu 14,800 14,800 30,400 30,400 –
Lim Sim Seng 12,500 12,500 27,900 27,900 –
Ng Bee Bee (May) 5,000 5,000 5,000 5,000 –
Quek See Tiat 15,400 15,400 33,700 33,700 –
Song Su-Min 12,500 12,500 28,100 28,100 –
Group Executives
(including Vincent
Chong Sy Feng) 6,791,103 140,610 6,918,363 142,780 6,387,366
* All RSP2010 and RSP2020 awards released to participants during the financial year under review were satisfied by way of the transfer of
treasury shares to participants.

Audit Committee
The Audit Committee comprises four independent Directors, one of whom is also the Chairman of the Committee. The
members of the Audit Committee at the date of this report are as follows:
Quek See Tiat (Chairman)

Kevin Kwok Khien (Appointed on 1 October 2021)
Lim Ah Doo
Song Su-Min
The Audit Committee carried out its functions in accordance with Section 201B of the Singapore Companies Act 1967,
the SGX-ST Listing Manual and the Code of Corporate Governance.
The Audit Committee met during the year to review the scope of the internal audit function and the scope of work of
the external auditors, and the results arising therefrom, including their evaluation of the system of internal controls.
The Audit Committee also reviewed the assistance given by the Company’s officers to the auditors. The consolidated
financial statements of the Group and the financial statements of the Company were reviewed by the Audit Committee
prior to their submission to the Directors of the Company for adoption.
In addition, the Audit Committee has reviewed the requirements for approval and disclosure of interested person
transactions, reviewed the procedures set up by the Group and the Company to identify, report and where necessary,
seek approval for interested person transactions and, with the assistance of the internal auditors, reviewed interested
person transactions.
The Audit Committee has full access to management and is given the resources required for it to discharge its
functions. It has full authority and the discretion to invite any director or executive officer to attend its meetings. The
Audit Committee also recommends the appointment of the external auditors and reviews the level of audit and non-
audit fees.
The Audit Committee has recommended to the Board of Directors that PricewaterhouseCoopers LLP, be nominated
for re-appointment as the external auditors at the forthcoming Annual General Meeting of the Company.
The Company has complied with Rules 712 and 715 of the SGX-ST Listing Manual in relation to the engagement of its
external auditors.
Auditors
The independent auditor, PricewaterhouseCoopers LLP, have expressed its willingness to accept re-appointment.
On behalf of the Board of Directors
Kwa Chong Seng Vincent Chong Sy Feng

Director Director
Singapore
24 February 2022

INDEPENDENT AUDITOR’S REPORT

TO THE MEMBERS OF
SINGAPORE TECHNOLOGIES ENGINEERING LTD
Report On The Audit Of The Financial Statements
Our Opinion
In our opinion, the accompanying consolidated financial statements of Singapore Technologies Engineering Ltd
(“the Company”) and its subsidiaries (“the Group”) and the statement of financial position of the Company are
properly drawn up in accordance with the provisions of the Companies Act 1967 (“the Act”) and Singapore Financial
Reporting Standards (International) (“SFRS(I)s”) so as to give a true and fair view of the consolidated financial
position of the Group and the financial position of the Company as at 31 December 2021 and of the consolidated
financial performance, consolidated changes in equity and consolidated cash flows of the Group for the year ended on
that date.
What we have audited
The financial statements of the Group and the Company comprise:
• the consolidated income statement of the Group for the year ended 31 December 2021;
• the consolidated statement of comprehensive income of the Group for the year then ended;
• the consolidated statement of financial position of the Group as at 31 December 2021;
• the consolidated statement of changes in equity of the Group for the year then ended;
• the consolidated statement of cash flows of the Group for the year then ended;
• the notes to the consolidated financial statements, including a summary of significant accounting policies;
• the statement of financial position of the Company as at 31 December 2021; and
• the notes to the statement of financial position of the Company, including a summary of significant accounting
policies.


TO THE MEMBERS OF
Basis for Opinion
We conducted our audit in accordance with Singapore Standards on Auditing (“SSAs”). Our responsibilities under
those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements
section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We are independent of the Group in accordance with the Accounting and Corporate Regulatory Authority Code of
Professional Conduct and Ethics for Public Accountants and Accounting Entities (“ACRA Code”) together with the
ethical requirements that are relevant to our audit of the financial statements in Singapore, and we have fulfilled our
other ethical responsibilities in accordance with these requirements and the ACRA Code.
Our Audit Approach
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the
accompanying financial statements. In particular, we considered where management made subjective judgements;
for example, in respect of significant accounting estimates that involved making assumptions and considering future
events that are inherently uncertain. As in all of our audits, we also addressed the risk of management override of
internal controls, including among other matters consideration of whether there was evidence of bias that represented
a risk of material misstatement due to fraud.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the
financial statements for the year ended 31 December 2021. These matters were addressed in the context of our audit
of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion
on these matters.


TO THE MEMBERS OF
Our Audit Approach (continued)
Key Audit Matter How our audit addressed the Key Audit Matter
Impairment assessment of non-financial assets – goodwill
Refer to Note C3 to the financial statements. We have assessed the appropriateness of management’s
identification of CGU and critically assessed the key
As at 31 December 2021, the carrying value of the assumptions used in the goodwill impairment assessment.
Group’s goodwill amounted to $796,676,000.
Our audit procedures included the following:
Goodwill is allocated to the Group’s cash generating
units (“CGU”) - Aerostructure & Systems, Aerospace • evaluated management’s key assumptions relating
MRO, Smart Utilities & Infrastructure, Satcom, to revenue growth rates, gross profit margins, discount
Specialty Vehicles, Robotics & Autonomous Systems, rates and terminal growth rates and understood
Training & Simulation Systems, Advanced Networks & how management has considered the impact of
Sensors and others. There is a risk of impairment of the COVID-19 pandemic and market uncertainty in
certain CGUs in the United States which are operating their estimates.
in a challenging business environment.
• reviewed the basis and methodology used to derive
In accordance with SFRS(I) 1-36, management is the recoverable amount of the CGU.
required to perform an impairment assessment of
goodwill annually by comparing the recoverable • assessed the appropriateness of management
amount of the CGU with its carrying amount to assumptions by comparing to past historical
determine whether there is any impairment loss. performance and considering the current
developments arising from the COVID-19 pandemic.
For the purpose of impairment testing, the recoverable
amount of the CGU is determined based on the value- • performed sensitivity analysis on management
in-use calculations, using cash flow projections. assumptions relating to revenue growth rates, gross
profit margins, discount rates and terminal growth
In the current year, impairment charge of $5,000,000 rates.
was recorded to reduce the carrying amount of the
CGU to the estimated recoverable amount. • involved our valuation experts to evaluate the
appropriateness of management’s assumptions,
We focused on this area because of the uncertainty relating to terminal growth rates and discount
arising from the ongoing and evolving COVID-19 rates, by developing an independent expectation
pandemic and significant judgements required using economic and industry forecasts and rates
in estimating the revenue growth rate, gross profit of comparable companies with consideration for
margins, discount rate and terminal growth rate specific jurisdiction factors.
applied in computing the recoverable amount of the
CGU. • considered the adequacy of the disclosures in the
financial statements.
Based on the audit procedures performed above, we

found management’s judgement and assumptions in
relation to the determination of the recoverable amount
to be appropriate, and the disclosure in this respect to
be adequate.


TO THE MEMBERS OF
Our Audit Approach (continued)
Key Audit Matter How our audit addressed the Key Audit Matter
Revenue recognition based on stage of completion
Refer to Note B2 to the financial statements. Our audit procedures included the following:
During the year ended 31 December 2021, the Group • understood the end-to-end processes and
recognised revenue of $7,692,865,000 relating to sale validated key controls relating to revenue and
of goods, rendering of services and contract revenue. receivables cycle.
Some of these revenue are recognised based on the
stage of completion of performance obligations of each • assessed the relevant internal control relating to
individual contract, which are measured by reference to customer contract acceptance and terms, change
either assessment or surveys of work performed (output orders, monitoring of project development, cost
method) or the cost incurred relative to total estimated incurred and estimating cost to complete.
costs (input method).
• assessed the terms of the customer contracts and
We focused on this area because of the significant the appropriateness of the customer recognition
management judgement required in: policies.
• determining each performance obligation within • assessed the contractual terms and evaluated
a contract; the work status of the customer contracts and
to ascertain the appropriateness of revenue
• forecasting the costs to be incurred; recognised based on the stage of completion of
each performance obligation.
• forecasting the overall margins of these
performance obligations; and • selected sample of contracts and assessed
management’s assumptions for determining stage
• assessing the stage of completion of each of completion including estimated profit and cost
performance obligation. to complete through interviews with management
and verification to the supporting documents.
• performed analysis and retrospective

reviews of completed contracts to assess the
appropriateness of management’s assumptions
applied.
Based on the audit procedures performed above, we

found the basis of the identification of performance
obligations and the revenue recognised based on the
stage of completion of each performance obligation to
be appropriate.
Other Information
Management is responsible for the other information. The other information comprises the Corporate Overview,
Performance Review, Sustainability, Corporate Governance, Directors’ Statement, SGX Listing Manual Requirement
and Corporate Information (but does not include the financial statements and our auditor’s report thereon), which we
obtained prior to the date of this auditor’s report, and the other sections of the annual report (“the Other Sections”),
which are expected to be made available to us after that date.
Our opinion on the financial statements does not cover the other information and we do not and will not express any
form of assurance conclusion thereon.


TO THE MEMBERS OF
Other Information (continued)
In connection with our audit of the financial statements, our responsibility is to read the other information identified
above and, in doing so, consider whether the other information is materially inconsistent with the financial statements
or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of this auditor’s
report, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
When we read the Other Sections, if we conclude that there is a material misstatement therein, we are required to
communicate the matter to those charged with governance and take appropriate actions in accordance with SSAs.
Responsibilities Of Management And Directors For The Financial Statements
Management is responsible for the preparation of financial statements that give a true and fair view in accordance
with the provisions of the Act and SFRS(I)s, and for devising and maintaining a system of internal accounting controls
sufficient to provide a reasonable assurance that assets are safeguarded against loss from unauthorised use or
disposition; and transactions are properly authorised and that they are recorded as necessary to permit the preparation
of true and fair financial statements and to maintain accountability of assets.
In preparing the financial statements, management is responsible for assessing the Group’s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting
unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to
do so.
The directors’ responsibilities include overseeing the Group’s financial reporting process.
Auditor’s Responsibilities For The Audit Of The Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with
SSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with SSAs, we exercise professional judgement and maintain professional scepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management.


TO THE MEMBERS OF
Auditor’s Responsibilities For The Audit Of The Financial Statements (continued)
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may
cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the
financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based
on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may
cause the Group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures,
and whether the financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the consolidated financial statements. We are responsible
for the direction, supervision and performance of the group audit. We remain solely responsible for our audit
opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to
bear on our independence, and where applicable, related safeguards.
From the matters communicated with the directors, we determine those matters that were of most significance
in the audit of the financial statements of the current period and are therefore the key audit matters. We describe
these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when,
in extremely rare circumstances, we determine that a matter should not be communicated in our report because the
adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such
communication.
Report On Other Legal And Regulatory Requirements
In our opinion, the accounting and other records required by the Act to be kept by the Company and by those subsidiary
corporations incorporated in Singapore of which we are the auditors have been properly kept in accordance with the
provisions of the Act.
The engagement partner on the audit resulting in this independent auditor’s report is Lam Hock Choon.
PricewaterhouseCoopers LLP
Public Accountants and Chartered Accountants
Singapore
24 February 2022

CONTENTS
Consolidated Income Statement for the year ended 31 December 2021 144
Consolidated Statement of Comprehensive Income for the year ended 31 December 2021 145
Consolidated Statement of Financial Position as at 31 December 2021 146
Consolidated Statement of Changes in Equity for the year ended 31 December 2021 148
Consolidated Statement of Cash Flows for the year ended 31 December 2021 152
Statement of Finanical Position and Notes to the Statement of Financial Position of the Company as at
31 December 2021 274
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
E. Capital structure
A. About this report 154-155 236-251
and financing
E1 Capital management 236
B. Business 156-172
E2 Finance costs, net 237
performance E3 Investments 239
E4 Borrowings 239
B1 Segment information 156 E5 Commitments and contingent liabilities 245
B2 Revenue 160 E6 Share capital 248
B3 Profit from operations 164 E7 Treasury shares 249
B4 Non-operating income/(expenses), net 165 E8 Capital reserves 249
B5 Earnings per share 166 E9 Other reserves 250
B6 Taxation 167 E10 Dividends 251
C. Operating assets 173-228 F. Group structure 252-271

and liabilities
C1 Property, plant and equipment 174 F1 Subsidiaries 252
C2 Right-of-use assets 183 F2 Acquisition and disposal of controlling 253
interests in subsidiaries in 2021/2020
C3 Intangible assets 184
F3 Non-controlling interests in subsidiaries 256
C4 Amounts due from related parties 192
F4 Associates and joint ventures 260
C5 Inventories 193
F5 Related party information 271
C6 Trade receivables 194
C7 Advances and other receivables 194
C8 Bank balances and other liquid funds 195
C9 Trade payables and accruals 196 G. Others 272-273
C10 Amounts due to related parties 196
C11 Provisions 197 G1 Comparatives 272
C12 Deferred income 199 G2 Adoption of new standards and 272
C13 Contract balances 199 interpretations
C14 Financial risk management 200 G3 New standards and interpretations 273
objectives and policies not adopted
C15 Classification and fair value of 210 G4 Impact of COVID-19 273
financial instruments
C16 Derivative financial instruments 220
D. Employee benefits 229-235
D1 Economic Value Added (EVA)-based 229

Incentive Scheme
D2 Personnel expenses 230
D3 Post-employment benefits 230
D4 Share-based payment arrangements 234

CONSOLIDATED INCOME STATEMENT

(CURRENCY - SINGAPORE DOLLARS)
Group Note 2021 2020

$’000 $’000
Revenue B2 7,692,865 7,158,286

Cost of sales (6,157,797) (5,630,797)
Gross profit 1,535,068 1,527,489
Distribution and selling expenses (182,760) (225,048)

Administrative expenses (607,974) (595,360)
Other operating expenses (133,841) (146,218)
Other income, net* 35,420 9,141
Profit from operations B3 645,913 570,004
Non-operating income/(expenses), net* B4 11,742 (4,043)
Share of results of associates and joint ventures, net of tax 15,991 30,389
Earnings before interest and tax 673,646 596,350
Finance income 11,686 9,274

Finance costs (47,725) (71,222)
Finance costs, net E2 (36,039) (61,948)
Profit before taxation 637,607 534,402
Taxation B6 (70,636) (8,779)
Profit after taxation 566,971 525,623
Attributable to:
Shareholders of the Company 570,540 521,840
Non-controlling interests F3 (3,569) 3,783
566,971 525,623
Earnings per share (cents) B5

Basic 18.30 16.74
Diluted 18.20 16.64
* Change in definition of Other income and Non-operating income/(expenses) in conformance with current year classification.
The accompanying notes are an integral part of the financial statements.

CONSOLIDATED STATEMENT
OF COMPREHENSIVE INCOME

$’000 $’000
Profit after taxation 566,971 525,623
Other comprehensive income

Items that will not be reclassified subsequently to profit or loss:
Defined benefit plan remeasurements 49,887 (48,789)
Net fair value changes on equity investments at FVOCI – 338
49,887 (48,451)
Items that are or may be reclassified subsequently to profit or loss:

Net fair value changes of cash flow hedges reclassified to income statement (2,415) 22,495
Effective portion of changes in fair value of cash flow hedges (25,358) 18,905
Share of net fair value changes on cash flow hedges of joint ventures 2,145 763
Foreign currency translation differences 6,507 44,090
Share of foreign currency translation differences of associates
and joint ventures 9,123 1,819
Reserves released on disposal of a subsidiary (5,643) 121
(15,641) 88,193
Other comprehensive income for the year, net of tax 34,246 39,742
Total comprehensive income for the year, net of tax 601,217 565,365
Total comprehensive income attributable to:

Shareholders of the Company 615,183 547,678
Non-controlling interests F3 (13,966) 17,687
601,217 565,365

OF FINANCIAL POSITION
AS AT 31 DECEMBER 2021

$’000 $’000
ASSETS
Non-current assets
Property, plant and equipment C1 1,793,811 1,756,944
Right-of-use assets C2 558,559 538,809
Associates and joint ventures F4 482,897 468,912
Investments E3 36,129 23,138
Intangible assets C3 1,992,738 1,946,138
Long-term trade receivables 1,534 1,524
Deferred tax assets B6 207,548 149,387
Amounts due from related parties C4 11,609 8,547
Advances and other receivables C7 69,863 58,248
Derivative financial instruments C16 4,217 20,847
Post-employment benefits D3 257 319
5,159,162 4,972,813
Current assets
Contract assets^ C13 1,726,505 1,555,781
Inventories C5 1,261,156 1,269,192
Trade receivables C6 1,066,756 1,047,844
Amounts due from related parties C4 113,843 46,305
Advances and other receivables C7 345,141 317,741
Bank balances and other liquid funds C8 815,924 730,624
5,356,497 4,991,101
Total assets 10,515,659 9,963,914
EQUITY AND LIABILITIES
Current liabilities
Contract liabilities^ C13 919,524 983,887
Deposits from customers 17,078 12,838
Trade payables and accruals^ C9 2,612,515 2,218,023
Amounts due to related parties C10 27,781 23,833
Provisions C11 331,837 306,758
Provision for taxation 161,208 163,703
Borrowings E4 559,886 496,335
Deferred income C12 7,665 70,922
Post-employment benefits D3 7,640 7,996
4,679,642 4,288,849
Net current assets 676,855 702,252
^ The comparative figures for contract assets, contract liabilities and trade payables and accruals have been reclassified in conformance with current
year presentation.

OF FINANCIAL POSITION

$’000 $’000
Non-current liabilities
Contract liabilities^ C13 832,754 802,348
Trade payables and accruals C9 63,482 19,338
Provisions C11 39,596 29,801
Deferred tax liabilities B6 174,661 166,520
Borrowings E4 1,555,334 1,550,560
Deferred income C12 73,882 50,475
Post-employment benefits D3 409,473 462,548
3,167,802 3,100,276
Total liabilities 7,847,444 7,389,125
Net assets 2,668,215 2,574,789
Share capital and reserves

Share capital E6 895,926 895,926
Treasury shares E7 (33,475) (23,743)
Capital reserves E8 103,940 107,034
Other reserves E9 (101,937) (89,017)
Retained earnings 1,548,308 1,402,414
Equity attributable to owners of the Company 2,412,762 2,292,614
Non-controlling interests F3 255,453 282,175
2,668,215 2,574,789
Total equity and liabilities 10,515,659 9,963,914

OF CHANGES IN EQUITY
Share Treasury
Group Note capital shares
$’000 $’000
At 1 January 2021 895,926 (23,743)
Total comprehensive income for the year

Profit after taxation – –

Net fair value changes of cash flow hedges reclassified to income
statement – –
Effective portion of changes in fair value of cash flow hedges – –
Share of net fair value changes on cash flow hedges of joint ventures – –
Foreign currency translation differences – –
and joint ventures – –
Reserves released on disposal of a subsidiary – –
Defined benefit plan remeasurements – –
Other comprehensive income for the year, net of tax – –
Total comprehensive income for the year, net of tax – –
Hedging gains and losses and costs of hedging transferred to the

cost of inventory – –
Transactions with owners of the Company, recognised directly

in equity
Contributions by and distributions to owners of the Company
Cost of share-based payment – –
Purchase of treasury shares E7 – (32,894)
Treasury shares reissued pursuant to share plans – 23,162
Dividends paid E10 – –
Dividends paid to non-controlling interests – –
Total contributions by and distributions to owners of the Company – (9,732)
Changes in ownership interests in subsidiaries
Acquisition of non-controlling interests in a subsidiary without a
change in control – –
Acquisition of subsidiaries with non-controlling interests – –
Total transactions with owners of the Company – (9,732)
Transfer from retained earnings to statutory reserve – –
Balance at 31 December 2021 895,926 (33,475)

Capital Other Retained Non-controlling Total

reserves reserves earnings Total interests equity
$’000 $’000 $’000 $’000 $’000 $’000
107,034 (89,017) 1,402,414 2,292,614 282,175 2,574,789
– – 570,540 570,540 (3,569) 566,971
– (1,579) – (1,579) (836) (2,415)

– (12,848) – (12,848) (12,510) (25,358)
– 2,145 – 2,145 – 2,145
– 10,076 – 10,076 (3,569) 6,507
– 9,123 – 9,123 – 9,123

– (5,643) – (5,643) – (5,643)
– – 43,369 43,369 6,518 49,887
– 1,274 43,369 44,643 (10,397) 34,246
– 1,274 613,909 615,183 (13,966) 601,217
– (2,389) – (2,389) 20 (2,369)
– 21,600 – 21,600 120 21,720

– – – (32,894) – (32,894)
(3,094) (19,978) – 90 (90) –
– – (467,891) (467,891) – (467,891)
– – – – (16,554) (16,554)
(3,094) 1,622 (467,891) (479,095) (16,524) (495,619)
– (13,551) – (13,551) (1,934) (15,485)

– – – – 5,682 5,682
(3,094) (11,929) (467,891) (492,646) (12,776) (505,422)
– 124 (124) – – –
103,940 (101,937) 1,548,308 2,412,762 255,453 2,668,215

OF CHANGES IN EQUITY
Share Treasury
Group Note capital shares
$’000 $’000
At 1 January 2020 895,926 (26,731)
Total comprehensive income for the year

Profit after taxation – –

Net fair value changes on equity investments at FVOCI E9 – –
Net fair value changes of cash flow hedges
reclassified to income statement – –
Effective portion of changes in fair value of cash flow hedges – –
Share of net fair value changes on cash flow hedges of joint ventures – –
Foreign currency translation differences – –
and joint ventures – –
Reserves released on disposal of a subsidiary – –
Defined benefit plan remeasurements – –
Other comprehensive income for the year, net of tax – –
Total comprehensive income for the year, net of tax – –
Hedging gains and losses and costs of hedging transferred to the

cost of inventory – –
Transactions with owners of the Company, recognised directly

in equity
Contributions by and distributions to owners of the Company
Capital contribution by non-controlling interests – –
Cost of share-based payment – –
Purchase of treasury shares E7 – (29,154)
Treasury shares reissued pursuant to share plans – 32,142
Dividends paid E10 – –
Dividends paid to non-controlling interests – –
Total contributions by and distributions to owners of the Company – 2,988
Transfer from retained earnings to statutory reserve – –
Balance at 31 December 2020 895,926 (23,743)

Capital Other Retained Non-controlling Total

reserves reserves earnings Total interests equity
$’000 $’000 $’000 $’000 $’000 $’000
112,563 (149,445) 1,389,966 2,222,279 268,722 2,491,001
– – 521,840 521,840 3,783 525,623
– (246) 584 338 – 338
– 15,635 – 15,635 6,860 22,495

– 10,870 – 10,870 8,035 18,905
– 763 – 763 – 763
– 38,062 – 38,062 6,028 44,090
– 1,819 – 1,819 – 1,819

– 121 – 121 – 121
– – (41,770) (41,770) (7,019) (48,789)
– 67,024 (41,186) 25,838 13,904 39,742
– 67,024 480,654 547,678 17,687 565,365
– (1,890) – (1,890) – (1,890)
– – – – 13,260 13,260
– 21,649 – 21,649 67 21,716
– – – (29,154) – (29,154)
(5,529) (26,526) – 87 (87) –
– – (468,035) (468,035) – (468,035)
– – – – (17,474) (17,474)
(5,529) (4,877) (468,035) (475,453) (4,234) (479,687)
– 171 (171) – – –
107,034 (89,017) 1,402,414 2,292,614 282,175 2,574,789

OF CASH FLOWS
Cash and cash equivalents comprise cash balances and fixed deposits. Cash equivalents are short-term and highly
liquid investments that are readily convertible to known amounts of cash and that are subject to insignificant risk of
changes in value.
Group 2021 2020

$’000 $’000
Cash flows from operating activities
Adjustments:
Share of results of associates and joint ventures, net of tax (15,991) (30,389)
Share-based payment expense 21,720 21,716
Depreciation charge 314,197 297,620
Property, plant and equipment written off 2,249 874
Amortisation of other intangible assets 83,893 81,011
Impairment of property, plant and equipment 19,490 1,617
Impairment of right-of-use assets – 2,397
Impairment of goodwill and other intangible assets 6,769 45,766
Impairment of an associate – 4,000
Gain on disposal of property, plant and equipment (2,527) (16)
Gain on disposal of subsidiaries (13,021) –
Loss on disposal of right-of-use assets 275 77
Loss on disposal of subsidiaries 1,279 43
Changes in fair value of associates (11,154) 5,285
Changes in fair value of financial instruments and hedged items (685) (1,333)
Interest expense 45,048 49,583
Interest income (3,936) (5,743)
Amortisation of deferred income (5) (6)
Operating profit before working capital changes 1,085,208 1,006,904
Changes in:
Inventories 9,455 52,955
Contract assets (162,986) 78,613
Trade receivables (13,511) 196,681
Advance payments to suppliers (18,457) 20,137
Other receivables, deposits and prepayments (14,099) (13,625)
Amounts due from related parties (18,620) 410
Amounts due to related parties (7,640) (2,038)
Amounts due from associates 8,109 (4,671)
Amounts due from joint ventures (11,701) (35,438)
Contract liabilities (38,594) 434,497
Trade payables 221,215 (166,540)
Deposits from customers 5,434 5,367
Other payables, accruals and provisions 220,247 (51,198)
Deferred income (40,183) 86,515
Foreign currency translation of foreign operations (1,212) (4,139)
Cash generated from operations 1,222,665 1,604,430
Interest received 4,048 6,393
Income tax paid (112,441) (78,007)
Net cash from operating activities 1,114,272 1,532,816

OF CASH FLOWS

$’000 $’000
Cash flows from investing activities

Proceeds from sale of property, plant and equipment 16,266 8,741
Return of capital by joint venture 3,752 –
Proceeds from disposal of joint venture 361 –
Proceeds from sale of investments 1,836 984
Purchase of property, plant and equipment (312,039) (200,301)
Purchase of investments (14,322) (7,272)
Additions to other intangible assets (116,735) (86,832)
Dividends from associates and joint ventures 24,348 13,273
Investments in associates and joint ventures (9,884) (4,868)
Repayment of loans by joint ventures – 569
Loan to associates and joint ventures (44,577) (19,461)
Acquisition of controlling interests in subsidiaries, net of cash acquired 7,333 –
Disposal of subsidiaries, net of cash disposed 30,010 –
Net cash used in investing activities (413,651) (295,167)
Cash flows from financing activities

Proceeds from bank loans 132,027 370,131
Proceeds from MTN issuance – 1,058,400
Proceeds from commercial papers 756,896 524,092
Proceeds from other loans 10,933 19,565
Proceeds from finance lease receivables 882 3,209
Repayment of bank loans (35,103) (743,080)
Repayment of commercial papers (810,960) (1,570,209)
Repayment of other loans (30,933) –
Repayment of lease liabilities (73,456) (61,271)
Purchase of treasury shares (32,894) (29,154)
Capital contribution from non-controlling interests of a subsidiary – 13,260
Acquisition of non-controlling interests in a subsidiary (15,485) –
Dividends paid to shareholders of the Company (467,891) (468,035)
Dividends paid to non-controlling interests (16,554) (17,319)
Interest paid (33,644) (58,338)
Deposits discharged/(pledged) 1,145 (10)
Net cash used in financing activities (615,037) (958,759)
Net increase in cash and cash equivalents 85,584 278,890

Cash and cash equivalents at beginning of the year 729,479 452,095
Effect of exchange rate changes on balances held in foreign currency 861 (1,506)
Cash and cash equivalents at end of the year C8 815,924 729,479

NOTES TO THE FINANCIAL STATEMENTS

31 DECEMBER 2021
(CURRENCY – SINGAPORE DOLLARS UNLESS OTHERWISE STATED)
A. ABOUT THIS REPORT
General
The Company is a public limited company domiciled and incorporated in Singapore. The address of the Company’s
registered office and principal place of business is 1 Ang Mo Kio Electronics Park Road #07-01 ST Engineering Hub,
Singapore 567710.
The principal activity of the Company is that of an investment holding company.
The Company’s immediate and ultimate holding company is Temasek Holdings (Private) Limited, a company
incorporated in Singapore.
The consolidated financial statements of Singapore Technologies Engineering Ltd and its subsidiaries (collectively
referred to as the Group) as at 31 December 2021 and for the year then ended were authorised and approved by the
Board of Directors for issuance on 24 February 2022.
Basis of preparation
The financial statements are prepared in accordance with Singapore Financial Reporting Standards (International)
(SFRS(I)).
The financial statements have been prepared on the historical cost convention, except as otherwise described in the
accounting policies below.
Accounting policies, estimates and critical accounting judgements applied to the preparation of the financial statements
are disclosed together with the related accounting balance or financial statement matters discussed.
Information is only being included in the financial report to the extent it has been considered material and relevant to
the understanding of the financial statements. A disclosure is considered material and relevant if:
• dollar amount is significant in value

• dollar amount is significant by nature
• financial results cannot be understood without specific disclosure
• critical to allow user to understand significant changes in group businesses
The financial statements are presented in Singapore dollars (SGD) which is the Company’s functional currency.
All values are rounded to the nearest thousand ($’000) unless otherwise indicated.
Significant accounting policies
The accounting policies have been applied consistently by the Group entities to all periods presented in these financial
statements unless otherwise indicated.


31 DECEMBER 2021
Foreign currency
The major functional currencies of the Group entities are the Singapore dollar (SGD), the United States dollar (USD)
and the Euro (EUR).
Transactions, assets and liabilities denominated in foreign currencies are translated into SGD at reporting date using
the following applicable exchange rates:
Foreign currency amount Applicable exchange rate
Transactions Date of transaction

Monetary assets and liabilities Reporting date
Non-monetary assets and liabilities carried at fair value Date fair value is determined
Non-monetary assets and liabilities carried at cost Date of transaction
Foreign exchange gains and losses resulting from translation of monetary assets and liabilities are recognised in the
income statement, except for qualifying cash flow hedges, which are recognised in other comprehensive income (OCI).
On consolidation, the assets, liabilities, income and expenses of foreign operations are translated into SGD using the
following applicable exchange rates:
Foreign currency amount Applicable exchange rate
Income and expenses Average exchange rate

Assets and liabilities Reporting date
Equity Historical date
Foreign exchange differences resulting from translation of foreign operations are initially recognised in the foreign
currency translation reserve and subsequently transferred to profit or loss on disposal of the foreign operation.


31 DECEMBER 2021
B. BUSINESS PERFORMANCE
The highlights of the Group’s financial performance during the financial year are:
• Revenue of $7.7 billion, up 7.5%
• Earnings before interest and tax of $673.6 million, up 13.0%
• Profit before taxation of $637.6 million, up 19.3%
• Profit attributable to shareholders of $570.5 million, up 9.3%
• Earnings per share of 18.30 cents per share, up 9.3%
B1 Segment information B4 Non-operating income/(expenses), net
B2 Revenue B5 Earnings per share
B3 Profit from operations B6 Taxation
B1 Segment information
With effect from 1 January 2021, the Group is reorganised as Commercial and Defence & Public Security
clusters, replacing the sector-structure of Aerospace, Electronics, Land Systems and Marine.
The Commercial cluster will drive the Group’s international growth through areas in Commercial Aerospace,
and Urban Solutions & Satcom domains, to be known as Global Business Areas (or GBAs), which are also
reportable business segments.
The Defence & Public Security cluster will integrate capabilities to be organised as a single cluster which is
a reportable business segment, comprising Defence Business Areas (or DBAs), namely Digital Systems and
Cyber, Land Systems, Marine and Defence Aerospace.
Management reviews the segments’ operating results regularly in order to allocate resources to the segments
and to assess the segments’ performance.
The principal activities of the operating segments are outlined below:
Segments Principal activities
Commercial Aerospace Airframe, engines and components maintenance, repair and overhaul, original
equipment manufacturer for nacelles, composite floorboard and passenger-to-
freighter conversions and aviation asset management.
Urban Solutions & Satcom Smart mobility, smart utilities & infrastructure, urban environment solutions
and satcom.
Defence & Public Security Defence, public safety and security, critical information infrastructure solutions
and others, including Group HQ functions.
Segment performance is evaluated based on operating profit or loss which in certain respects, as explained
in the table on the next page, is measured differently from operating profit or loss in the consolidated
financial statements.


31 DECEMBER 2021
B1 Segment information (continued)
Inter-segment pricing is based on terms negotiated between the parties which are intended to reflect competitive
terms.
2021 Urban Defence

Commercial Solutions & & Public
Aerospace Satcom Security Elimination Group
$’000 $’000 $’000 $’000 $’000
Revenue
External sales 2,464,827 1,190,536 4,037,502 – 7,692,865
Inter-segment sales 60,126 63,266 41,381 (164,773) –
2,524,953 1,253,802 4,078,883 (164,773) 7,692,865
Reportable segment profit

from operations 162,307 34,695 448,911 – 645,913
Non-operating income/
(expenses), net (582) – 12,324 – 11,742
Share of results of associates and
joint ventures, net of tax 20,143 (8,914) 4,762 – 15,991
Earnings before interest and tax 181,868 25,781 465,997 – 673,646
Finance income 11,686
Finance costs (47,725)
Profit before taxation 637,607
Taxation (70,636)
Non-controlling interests 3,569
Profit attributable to shareholders 570,540
Other assets 3,746,315 2,342,589 5,792,972 (2,872,586) 9,009,290

Associates and joint ventures 303,443 53,388 126,066 – 482,897
Segment assets 4,049,758 2,395,977 5,919,038 (2,872,586) 9,492,187
Deferred tax assets 207,548
Bank balances and other liquid funds 815,924
Total Assets 10,515,659
Segment liabilities 1,634,740 943,732 4,616,915 (1,799,032) 5,396,355

Provision for taxation 161,208
Deferred tax liabilities 174,661
Borrowings 2,115,220
Total Liabilities 7,847,444
Capital expenditure 310,438 102,278 173,704 (62,798) 523,622

Depreciation and amortisation 176,665 80,680 143,016 (2,271) 398,090
Impairment losses 21,259 – 5,000 – 26,259
Other non-cash expenses 966 211 1,072 – 2,249


31 DECEMBER 2021
2020 (restated) Urban Defence

Commercial Solutions & & Public
Aerospace Satcom Security Elimination Group
$’000 $’000 $’000 $’000 $’000
Revenue
External sales 2,332,453 1,101,128 3,724,705 – 7,158,286
Inter-segment sales 52,080 25,336 67,258 (144,674) –
2,384,533 1,126,464 3,791,963 (144,674) 7,158,286
Reportable segment profit

from operations 47,406 38,844 483,754 – 570,004
Non-operating income/
(expenses), net – – (4,043) – (4,043)
Share of results of associates and
joint ventures, net of tax 33,505 (7,400) 4,284 – 30,389
Earnings before interest and tax 80,911 31,444 483,995 – 596,350
Finance income 9,274
Finance costs (71,222)
Profit before taxation 534,402
Taxation (8,779)
Non-controlling interests (3,783)
Profit attributable to shareholders 521,840
Other assets 3,455,508 2,220,670 5,676,487 (2,737,674) 8,614,991

Associates and joint ventures 283,864 62,024 123,024 – 468,912
Segment assets 3,739,372 2,282,694 5,799,511 (2,737,674) 9,083,903
Deferred tax assets 149,387
Total Assets 9,963,914
Segment liabilities 1,365,902 905,482 4,472,085 (1,731,462) 5,012,007

Provision for taxation 163,703
Deferred tax liabilities 166,520
Borrowings 2,046,895
Total Liabilities 7,389,125
Capital expenditure 96,057 111,924 136,359 (412) 343,928

Depreciation and amortisation 164,968 79,417 141,094 (6,848) 378,631
Impairment losses 37,634 1,664 14,482 – 53,780
Other non-cash expenses 810 32 32 – 874
2020 business segment information have been restated following the re-organisation of the Group into
Commercial and Defence & Public Security clusters with effect from 1 January 2021, replacing the sector-
structure of Aerospace, Electronics, Land Systems and Marine.


31 DECEMBER 2021
Analysis by country of incorporation
Revenue is based on the country of incorporation regardless of where the goods are produced or services
rendered. Non-current assets, excluding derivative financial instruments, post-employment benefits and
deferred tax assets, are based on the location of those assets.
Revenue Non-current assets
2021 2020 2021 2020

$’000 $’000 $’000 $’000
Asia 4,839,875 4,415,728 1,963,235 1,841,190

U.S. 2,126,761 2,088,678 1,620,948 1,629,426
Europe 684,778 587,031 1,263,520 1,239,616
Others 41,451 66,849 99,437 92,028
7,692,865 7,158,286 4,947,140 4,802,260
For the year ended 31 December 2021:
• Within Europe, revenue of approximately $451,649,000 (2020: $371,184,000) were from subsidiaries
located in Germany.
• Within Asia, most of the revenue was from subsidiaries located in Singapore.
• The remaining revenue from customers in Asia, Europe and Others was individually insignificant.
As at 31 December 2021:
• Within Europe, non-current assets of approximately $704,005,000 (2020: $736,042,000) were located in
Germany.
• Within Asia, most of the non-current assets were from subsidiaries located in Singapore.
• The remaining non-current assets located in Asia, Europe and Others were individually insignificant.


31 DECEMBER 2021
B2 Revenue
Disaggregation of revenue
In the following table, revenue is disaggregated by major products/services lines and timing of revenue
recognition. The table also includes a reconciliation of the disaggregated revenue with the Group’s reportable
segments.
Commercial Aerospace Urban Solutions & Satcom
2021 2020 2021 2020

$’000 $’000 $’000 $’000
(restated) (restated)
Major products/services lines

Sale of goods 1,120,982 1,087,127 510,964 505,245
Service income 144,435 131,670 185,917 212,578
Contract revenue 1,259,536 1,165,736 556,921 408,641
2,524,953 2,384,533 1,253,802 1,126,464
Timing of revenue recognition

Transferred at a point in time 1,429,910 1,255,690 771,518 742,708
Transferred over time 1,095,043 1,128,843 482,284 383,756
2,524,953 2,384,533 1,253,802 1,126,464

Defence & Public Security Elimination Group
2021 2020 2021 2020 2021 2020

$’000 $’000 $’000 $’000 $’000 $’000
(restated) (restated)
1,110,350 1,044,632 (52,778) (14,886) 2,689,518 2,622,118

1,422,140 1,288,551 (35,434) (32,723) 1,717,058 1,600,076
1,546,393 1,458,780 (76,561) (97,065) 3,286,289 2,936,092
4,078,883 3,791,963 (164,773) (144,674) 7,692,865 7,158,286
1,570,940 1,409,715 (107,126) (73,017) 3,665,242 3,335,096

2,507,943 2,382,248 (57,647) (71,657) 4,027,623 3,823,190
4,078,883 3,791,963 (164,773) (144,674) 7,692,865 7,158,286
Group 2021 2020

$’000 $’000
Primary geographical markets

Asia 4,468,755 3,835,145
U.S. 1,532,475 1,704,798
Europe 1,215,704 1,202,009
Others 475,931 416,334
7,692,865 7,158,286


31 DECEMBER 2021
B2 Revenue (continued)
Revenue from contracts with customers
Revenue is measured based on the consideration specified in contracts with customers. The Group recognises
revenue when it transfers control over a good or service to the customer.
The following provides information about the nature and timing of the satisfaction of performance obligations
in contracts with customers, including significant payment terms, and the related revenue recognition policies.
(a) Revenue from sale of goods
Revenue is recognised when goods are delivered to the customer and the criteria for acceptance have
been satisfied. Where applicable, a portion of the contract consideration is received in advance from
the customers and the remaining consideration is received after delivery.
(b) Revenue from services rendered
Revenue from services rendered are recognised as performance obligations are satisfied. Payments
are due from customers based on the agreed billing milestones stipulated in the contracts or based on
the amounts certified by the customers.
Where performance obligations are satisfied over time as work progresses, revenue is recognised
progressively based on the percentage of completion method. The stage of completion is assessed
by reference to assessment of work performed (output method) or the cost incurred relative to total
estimated costs (input method) depending on which method commensurates with the pattern of
transfer of control to the customer. The related costs are recognised in profit or loss when they are
incurred, unless they relate to future performance obligations.
If the value of services rendered for the contract exceeds payments received from the customer,
a contract asset is recognised and presented separately on the statement of financial position. The
contract asset is transferred to receivables when the entitlement to payment becomes unconditional.
If the amounts invoiced to the customer exceeds the value of services rendered, a contract liability is
recognised and separately presented on the statement of financial position.
(c) Revenue from long-term contracts
The Group builds specialised assets customised to customers’ order for which the Group does not have
an alternative use. These contracts can span several years.
(i) Contracts with enforceable right to payment
The Group has determined that for contracts where the Group has an enforceable right to
payment, the customer controls all of the work-in-progress. This is because under those
contracts, the assets are at the customer’s specification and the Group is entitled to
reimbursement of costs incurred to date, including a reasonable margin when the contract is
terminated by the customer. Progress billings to the customer are based on a payment schedule
in the contract that is dependent on the achievement of specified milestones.


31 DECEMBER 2021
Revenue from contracts with customers (continued)
(c) Revenue from long-term contracts (continued)
(i) Contracts with enforceable right to payment (continued)
Revenue is recognised over time. The stage of completion is typically assessed by reference
to either surveys of work performed (output method) or the cost incurred relative to total
estimated costs (input method) depending on which method commensurates with the pattern
of transfer of control to the customer.
(ii) Contracts without enforceable right to payment
For contracts where the Group does not have an enforceable right to payment, customers
do not take control of the specialised asset until they are completed. At the inception of the
contract, the customers usually make an advance payment that is not refundable if the
contract is cancelled. The advance payment is presented as a contract liability. The rest of the
consideration is only billed upon acceptance by the customer.
Revenue is recognised at a point in time when the assets are completed and have been
accepted by customers.
When the period between the satisfaction of a performance obligation and payment by the customer
exceeds a year, the Group adjusts the transaction price with its customer and recognises a financing
component. In adjusting for the financing component, the Group uses a discount rate that would be
reflected separately as a financing income from contract inception.
For contracts with variable consideration (i.e. liquidated damages, bonus and penalty adjustments), revenue
is recognised to the extent that it is highly probable that a reversal of previously recognised revenue will
not occur. Therefore, the amount of revenue recognised is adjusted for possibility of delays to the projects
and ability to meet key performance indicators stipulated in the contract. The Group reviews the progress
of the projects at each reporting date and updates the transaction price accordingly.
The Group accounts for modifications to the scope or price of a contract as separate contracts if the
modification adds distinct goods or services at their stand-alone selling prices. For contract modifications
that add distinct goods or services but not at their stand-alone selling prices, the Group combines the
remaining consideration in the original contract with the consideration promised in the modification
to create a new transaction price that is then allocated to all remaining performance obligations to
be satisfied. For contract modifications that do not add distinct goods or services, the Group accounts
for the modification as a continuation of the original contract and recognises a cumulative adjustment
to revenue at the date of modification.


31 DECEMBER 2021
Key estimates and judgement: Revenue recognition
Judgement is applied in determining:
• whether performance obligations are distinct.
Requires an assessment of whether the customer can benefit from the good or service either on its
own or together with other resources that are readily available to the customer and if the promise is
separately identifiable from other promises in the contract.
• the transaction price for contracts with variable consideration (e.g. bonus, liquidated damages,
penalties, etc).
Requires an evaluation of potential risk and factors which may affect completion or delivery of the
contract, in accordance with contract obligations.
• estimated cost to complete.
For revenue recognised over time, the percentage of completion is assessed by reference to the
contract costs incurred till date in proportion to the total estimated costs for each contract. In making
the estimates, management relies on the expertise of its project team and past experience of completed
projects. The estimated total costs are reviewed regularly and adjusted where necessary, with the
corresponding effect of the change being recognised prospectively from the date of change.
B3 Profit from operations
Profit from operations are arrived after charging the following items (excluding those disclosed in the other notes
to the financial statements):
Group 2021 2020

$’000 $’000
After charging/(crediting)
Auditors’ remuneration
- auditors of the Company 2,418 2,322
- other auditors # 1,863 1,833
Non-audit fees
- auditors of the Company 75 143
- other auditors # 132 17
Fees paid to a firm of which a director is a member 1,119 1,890
Research, design and development expenses * 92,826 103,558
Allowance for inventory obsolescence 45,861 40,001
Short-term lease expense 10,712 14,618
Low-value assets lease expense 2,320 2,118
Property, plant and equipment written off 2,249 874
Fair value changes of investment in associates (11,154) 5,285
#
Includes the network of member firms of PricewaterhouseCoopers International Limited (PwCIL)
* Amount before offset by government grants of $6,886,000 (2020: $27,644,000)


31 DECEMBER 2021
B3 Profit from operations (continued)
Recognition and measurement
Government grants are recognised as a receivable at fair value when there is reasonable assurance that the
grant will be received and the Group will comply with all the attached conditions.
Government grants are recognised as income over the periods necessary to match them with the related costs
which they are intended to compensate on a systematic basis. Grants relating to expenses are deducted in
reporting the related expenses.
Grants relating to depreciable assets are recognised in profit or loss over the estimated useful lives of the
relevant assets.
B4 Non-operating income/(expenses), net

$’000 $’000
Gain on disposal of subsidiaries 13,021 –

Loss on disposal of a subsidiary (1,279) (43)
Impairment of an associate F4 – (4,000)
11,742 (4,043)
The assets and liabilities of the subsidiary, including any goodwill are derecognised when a change in the
Group’s ownership interest in a subsidiary result in a loss of control over the subsidiary. Amounts previously
recognised in other comprehensive income in respect of that entity are also reclassified to profit or loss or
transferred directly to retained earnings if required by a specific Standard.


31 DECEMBER 2021
B5 Earnings per share
Basic earnings per share
The weighted average number of ordinary shares used in the calculation of earnings per share is arrived at as
follows:
Company 2021 2020

’000 ’000
Number of shares
Issued ordinary shares at beginning of the year 3,115,531 3,115,741
Effect of performance shares and restricted shares released 4,916 5,981
Effect of treasury shares held (3,495) (4,481)
Weighted average number of ordinary shares issued during the year 3,116,952 3,117,241
Diluted earnings per share
When calculating diluted earnings per share, the weighted average number of ordinary shares is adjusted for the
effect of all dilutive potential ordinary shares. The Group has two categories of dilutive potential ordinary shares
from performance share plans and restricted share plans (2020: two categories of dilutive potential ordinary
shares from performance share plans and restricted share plans).
The weighted average number of ordinary shares adjusted for the dilutive potential shares is as follows:
Company 2021 2020

’000 ’000
Number of shares
Weighted average number of ordinary shares
(used in the calculation of basic earnings per share) 3,116,952 3,117,241
Adjustment for dilutive potential ordinary shares 18,464 18,808
Weighted average number of ordinary shares (diluted) during the year 3,135,416 3,136,049


31 DECEMBER 2021
B6 Taxation
(i) Tax expenses
2021 2020
Group $’000 $’000
Current income tax

Current year 132,116 81,354
Overprovision in respect of prior years (10,663) (24,061)
121,453 57,293
Deferred income tax

Current year (50,927) (59,825)
Underprovision in respect of prior years 1,368 14,501
Effect of change in tax rates (1,258) (3,190)
(50,817) (48,514)
70,636 8,779
A reconciliation between tax expense and the product of accounting profit multiplied by the applicable
corporate tax rate for the year ended 31 December is as follows:
Group 2021 2020

$’000 $’000
Taxation at Singapore statutory tax rate of 17% (2020: 17%) 108,393 90,848
Adjustments:
Income not subject to tax (23,816) (48,302)
Expenses not deductible for tax purposes 13,099 11,459
Different tax rates of other countries (8,759) (239)
Overprovision in respect of prior years (9,295) (9,560)
Effect of change in tax rates (1,258) (3,190)
Effect of results of associates and joint ventures presented net of tax (2,718) (5,166)
Tax incentives (6,553) (776)
Deferred tax assets not recognised 6,516 6,753
Deferred tax assets previously not recognised now utilised (4,663) (33,334)
Others (310) 286
70,636 8,779


31 DECEMBER 2021
B6 Taxation (continued)
(ii) Deferred tax assets and liabilities
(a) Recognised deferred tax assets and liabilities
Deferred tax assets and liabilities are attributable to the following:
Group Assets Liabilities
2021 2020 2021 2020

$’000 $’000 $’000 $’000
Property, plant and equipment (1,412) (1,741) 145,981 129,803

Intangible assets (4,967) (6,720) 146,039 212,667
Allowance for doubtful debts (1,640) (1,702) – –
Allowance for inventory obsolescence (36,193) (27,751) – –
Provisions and accruals (147,134) (173,179) 8,935 2,701
Lease liabilities (3,990) (3,089) 4,583 4,201
Unabsorbed capital allowances
and unutilised tax losses (99,358) (118,445) 1,115 22,821
Fair value of derivative financial
instruments designated as
cash flow hedges (10,946) (6,946) 2,493 11,384
Fair value of defined benefit plans (58,779) (49,390) – –
Other items (819) (8,621) 23,205 31,140
Deferred tax (assets)/liabilities (365,238) (397,584) 332,351 414,717
Set off of tax 157,690 248,197 (157,690) (248,197)
Net deferred tax (assets)/liabilities (207,548) (149,387) 174,661 166,520
The Group’s lease payments are deductible upon payment for tax purposes. In accounting for
the deferred tax relating to the lease, the Group considers the asset and liability collectively and
accounts for the deferred taxation on a net basis.


31 DECEMBER 2021
(ii) Deferred tax assets and liabilities (continued)
(b) Unrecognised deferred tax assets
Deferred tax assets have not been recognised in respect of the following items:
Group 2021 2020

$’000 $’000
Tax losses 410,716 505,322

Deductible temporary differences 4,110 37,537
Unabsorbed wear and tear allowance and
investment allowance 92 5,286
414,918 548,145
The Group has the above unrecognised deferred tax assets which have no expiry date except
for the amount of $95,771,000 which will expire from 2022 to 2040. The unrecognised deferred
tax assets can be carried forward and used to offset against future taxable income subject to
meeting certain statutory requirements by companies with unrecognised tax losses and capital
allowances in their respective countries of incorporation.
(c) Unrecognised temporary differences relating to investments in subsidiaries
As at 31 December 2021, a deferred tax liability of $141,355,000 (2020: $126,397,000) for

temporary difference of $506,111,000 (2020: $521,403,000) related to undistributed earnings
of certain subsidiaries was not recognised as the Group has determined that the undistributed
profits of its overseas subsidiaries will not be remitted to Singapore in the foreseeable future, but
will be retained for organic growth and acquisitions.


31 DECEMBER 2021
(ii) Deferred tax assets and liabilities (continued)
(d) Movement in deferred tax balances during the year
Group Recognised
As at Recognised in other Utilisation
1 January in profit comprehensive of Exchange
2020 or loss income tax losses difference
$’000 $’000 $’000 $’000 $’000
Property, plant and

equipment 93,515 35,563 – 787 (1,803)
Intangible assets 176,880 31,330 – 415 (2,678)
Allowance for doubtful
debts (1,987) 235 – 19 31
Allowance for inventory
obsolescence (26,869) (871) – (389) 378
Provisions and accruals (127,338) (44,057) – 1,824 (907)
Lease liabilities (751) 2,041 – (79) (99)
Unabsorbed capital
allowances and unutilised
tax losses (36,813) (65,811) – (1,865) 8,867
Fair value of derivative
financial instruments
designated as
cash flow hedges (9,953) (107) 14,901 8 (411)
Fair value of defined benefit
plans (27,013) (4,261) (16,125) – (1,991)
Other items 23,466 (2,576) – 1,698 (71)
63,137 (48,514) (1,224) 2,418 1,316

Recognised
As at in other Acquisition/ As at
31 December Recognised in comprehensive deconsolidation Utilisation Exchange 31 December
2020 profit or loss income of subsidiaries of tax losses difference 2021
$’000 $’000 $’000 $’000 $’000 $’000 $’000
128,062 15,085 – (29) – 1,451 144,569

205,947 (65,942) – (851) – 1,918 141,072
(1,702) 94 – 9 – (41) (1,640)
(27,751) (8,503) – 506 – (445) (36,193)

(170,478) 33,885 – 17 – (1,623) (138,199)
1,112 (585) – – – 66 593
(95,622) (6,128) – (695) 4,626 (424) (98,243)
4,438 121 (12,367) – – (645) (8,453)
(49,390) (18,633) 7,512 – – 1,732 (58,779)

22,517 (211) – – – 80 22,386
17,133 (50,817) (4,855) (1,043) 4,626 2,069 (32,887)


31 DECEMBER 2021
Current tax
Current tax is measured at the amount expected to be recovered from or paid to the tax authorities, using tax
rates and tax laws that are enacted or substantively enacted by the reporting date.
Deferred tax
Deferred tax is accounted for in respect of temporary differences arising from differences between the carrying
amount of assets and liabilities and the corresponding tax base.
Deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax assets are recognised
for all deductible temporary differences, carry-forward of unused tax assets and unused tax losses, to the
extent that it is probable that sufficient future taxable profits will be available to utilise them.
However, deferred tax assets and liabilities are not recognised for:
• temporary differences on the initial recognition of assets or liabilities in a transaction that is not a
business combination which affects neither accounting nor taxable profit or loss; and
• taxable temporary differences arising on the initial recognition of goodwill.
Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists and they relate to
taxes levied by the same tax authority on the same taxable entity.
Current tax and deferred tax are recognised in profit or loss except to the extent that it relates to a business
combination, or items recognised directly in equity or in other comprehensive income.
Estimates and judgement: Income taxes
The Group is subject to income taxes in Singapore and jurisdictions where it has foreign operations.
Judgement is required in determining the worldwide provision for income taxes and in assessing whether
deferred tax balances are recognised on the statement of financial position. Changes in circumstances will
alter expectations, which may impact the amount of provision for income taxes and deferred tax balances
recognised.
Estimates and judgement: Recovery of deferred tax assets
Deferred tax assets are recognised for tax losses and deductible temporary differences to the extent that it is
probable that sufficient future taxable profits will be available to utilise them. Judgement and estimates are
required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing
and the level of future taxable profits.


31 DECEMBER 2021
C. OPERATING ASSETS AND LIABILITIES
This section provides information relating to the operating assets and liabilities of the Group.
The Group maintains a strong financial position and credit rating to support the Group’s strategy to maximise
returns to the shareholders through efficient use of capital, taking into consideration the Group’s expenditures,
growth and investment requirements.
C1 Property, plant and equipment C9 Trade payables and accruals
C2 Right-of-use assets C10 Amounts due to related parties
C3 Intangible assets C11 Provisions
C4 Amounts due from related parties C12 Deferred income
C5 Inventories C13 Contract balances
C6 Trade receivables C14 Financial risk management objectives and

policies
C7 Advances and other receivables C15 Classification and fair value of financial
instruments
C8 Bank balances and other liquid funds C16 Derivative financial instruments


31 DECEMBER 2021
C1 Property, plant and equipment
Group Wharves,
Freehold land, floating
buildings and docks and
improvements boats
$’000 $’000
Cost
At 1 January 2021 1,485,202 143,688
Additions 29,048 1,215
Disposals/write-off (3,751) –
Acquisition of subsidiaries 41 –
Disposal of subsidiaries (117) –
Reclassifications 6,412 –
Translation difference 1,144 873
At 31 December 2021 1,517,979 145,776
Accumulated depreciation and impairment

At 1 January 2021 784,755 120,146
Depreciation charge/impairment losses 62,277 3,036
Disposals/write-off (3,122) –
Reclassifications (179) –
Translation difference 2,882 445
At 31 December 2021 846,496 123,627
Net book value

At 31 December 2021 671,483 22,149
* Others comprise transportation equipment, vehicles and satellites
During the year, the Group performed an impairment assessment and recognised an impairment loss of
$19,490,000 on certain plant and machinery due to a decline in recoverable amount of a subsidiary. The
recoverable amounts of these plant and equipment were determined based on the fair market value of the
plant and equipment, net of selling costs.

Furniture,
Production fittings, office
Plant and tools and equipment Aircraft and Construction
machinery equipment and others * aircraft engines -in-progress Total
$’000 $’000 $’000 $’000 $’000 $’000
1,212,387 424,803 444,602 308,622 72,180 4,091,484

47,351 22,623 43,075 111,557 65,190 320,059
(31,886) (7,099) (28,627) – (4,720) (76,083)
17 – 35 21,051 – 21,144
(162) (339) (76) (19,058) (17) (19,769)
9,338 (9,407) 7,240 (2,936) (24,442) (13,795)
5,613 (397) 2,542 3,910 300 13,985
1,242,658 430,184 468,791 423,146 108,491 4,337,025
684,929 297,400 332,051 115,242 17 2,334,540

110,994 26,153 41,756 16,865 – 261,081
(24,209) (6,644) (26,120) – – (60,095)
(162) (308) (78) (149) (17) (831)
5,228 (6,675) (7) (1,846) – (3,479)
5,461 520 2,104 586 – 11,998
782,241 310,446 349,706 130,698 – 2,543,214
460,417 119,738 119,085 292,448 108,491 1,793,811


31 DECEMBER 2021
C1 Property, plant and equipment (continued)
Group Wharves,
Freehold land, floating
buildings and docks and
improvements boats
$’000 $’000
Cost
At 1 January 2020 1,401,852 144,321
Additions 29,307 198
Disposals/write-off (5,520) (491)
Reclassifications 53,881 428
Translation difference 5,682 (768)
At 31 December 2020 1,485,202 143,688
Accumulated depreciation and impairment

At 1 January 2020 734,560 118,088
Depreciation charge/impairment losses 57,603 2,978
Disposals/write-off (5,406) (491)
Reclassifications 1 –
Translation difference (2,003) (429)
At 31 December 2020 784,755 120,146
Net book value

At 31 December 2020 700,447 23,542
In the prior year, the Group recognised impairment losses of $1,617,000, which mainly relate to:
- impairment losses of $1,203,000 resulting from an assessment of the recoverable amount of a flight
simulator, based on the fair value less cost to sell. The fair value is measured based on the amount to
sell the flight simulator at market price.
- Due to continued losses of a subsidiary, the Group performed an impairment assessment and
recognised an impairment loss of $414,000 on certain plant and equipment. The recoverable amounts
of these plant and equipment were determined based on the fair market value of the plant and
equipment, net of selling costs.

Furniture,
Production fittings, office
Plant and tools and equipment Aircraft and Construction
machinery equipment and others aircraft engines -in-progress Total
$’000 $’000 $’000 $’000 $’000 $’000
1,159,924 413,085 413,490 332,800 124,513 3,989,985

34,290 21,972 40,793 12,509 57,018 196,087
(24,236) (15,306) (18,413) – (1,142) (65,108)
43,125 2,741 9,434 (33,109) (109,420) (32,920)
(716) 2,311 (702) (3,578) 1,211 3,440
1,212,387 424,803 444,602 308,622 72,180 4,091,484
622,516 284,802 311,732 113,253 – 2,184,951

82,905 26,226 39,997 17,784 17 227,510
(16,132) (15,338) (18,142) – – (55,509)
31 (182) (288) (14,835) – (15,273)
(4,391) 1,892 (1,248) (960) – (7,139)
684,929 297,400 332,051 115,242 17 2,334,540
527,458 127,403 112,551 193,380 72,163 1,756,944


31 DECEMBER 2021
Reclassifications due to changes in the use of assets:
(a) Property, plant and equipment with net book value amounting to $17,843,000 (2020: $19,848,000) were
reclassified to inventories;
(b) Property, plant and equipment with net book value amounting to $5,773,000 (2020: nil) were reclassified
to finance lease receivables;
(c) Inventories of $13,300,000 (2020: $4,418,000) were reclassified to property, plant and equipment;
(d) In 2020, Asset under construction with net book value of $2,217,000 were reclassified to intangibles on
completion.
Operating lease
Included in the tables below are property, plant and equipment that the Group leases out, comprising aircraft
and aircraft engines, furniture, fittings, office equipment and others. The Group has classified these leases
as operating leases, because they do not transfer substantially all of the risks and rewards incidental to the
ownership of the assets. Movements in these assets that are subject to operating leases are presented below.


31 DECEMBER 2021
Group Furniture,
fittings, office Aircraft and
equipment aircraft
and others engines Total
$’000 $’000 $’000
Cost
At 1 January 2021 1,466 133,995 135,461
Additions – 111,534 111,534
Disposals/write-off (46) – (46)
Acquisition of subsidiaries – 21,051 21,051
Disposal of subsidiaries – (19,079) (19,079)
Reclassifications 116 26,161 26,277
Translation difference 33 3,383 3,416
At 31 December 2021 1,569 277,045 278,614
Accumulated depreciation
At 1 January 2021 653 13,087 13,740
Depreciation charge for the year 194 9,404 9,598
Disposals/write-off (27) – (27)
Disposal of subsidiaries – (170) (170)
Reclassifications – 11,300 11,300
Translation difference 15 341 356
At 31 December 2021 835 33,962 34,797
Net book value

At 31 December 2021 734 243,083 243,817


31 DECEMBER 2021
Group Furniture,
fittings, office Aircraft and
equipment aircraft
and others engines Total
$’000 $’000 $’000
Cost
At 1 January 2020 1,377 136,621 137,998
Reclassifications 115 – 115
Translation difference (26) (2,626) (2,652)
At 31 December 2020 1,466 133,995 135,461
At 1 January 2020 472 5,745 6,217
Depreciation charge for the year 213 7,763 7,976
Reclassifications (15) – (15)
Translation difference (17) (421) (438)
At 31 December 2020 653 13,087 13,740
Net book value

At 31 December 2020 813 120,908 121,721
(a) Property, plant and equipment pledged as security
Property, plant and equipment of certain overseas subsidiaries of the Group with a carrying value of
$56,290,000 (2020: $87,635,000) are pledged as security for bank loans.


31 DECEMBER 2021
(b) Major properties
Major land and buildings and improvements to premises are:
Net book value
Land area 2021 2020

Location Description Tenure (sq. m.) $’000 $’000
Singapore
1 Ang Mo Kio Industrial and 30 years from 20,000 35,320 41,056

Electronics commercial buildings 1.11.2011
Park Road
3 Ang Mo Kio Industrial and 30 years from 30,000 36,366 37,976

Electronics commercial buildings 1.12.2015
Park Road
100 Jurong East Industrial and 30 years from 11,232 49,096 49,760
Street 21 commercial buildings 1.11.2018
249 Jalan Industrial and 27 years from 208,261 84,713 79,044

Boon Lay commercial buildings 1.10.2001 to
31.12.2028
renewable to
10.10.2065
People’s Republic of China
No 2, Huayu Road, Factory building 50 years from 38,618 42,199 41,446

Huli District, 20.11.2008
Xiamen
361006, Fujian
Germany
Grenzstr. 1, Hangar and office Freehold 160,193 86,530 94,298

Dresden building


31 DECEMBER 2021
For this purpose, freehold land, buildings and improvements to premises are considered major properties
if the net book value of these assets represent 5% or more of the Group’s aggregated net book value in these
categories.
Property, plant and equipment are carried at cost less accumulated depreciation and accumulated impairment
losses.
Cost comprises expenditure that is:
• directly attributable to the acquisition of the asset;

• subsequent costs incurred to replace parts that are eligible for capitalisation; and/or
• transfers from equity on qualifying cash flow hedges of foreign currency purchases of property, plant
and equipment.
Disposals
Gains or losses on disposal of property, plant and equipment are included in profit or loss.
Depreciation
Depreciation of property, plant and equipment is recognised in profit or loss on a straight-line basis over their
useful lives, except for freehold land which are not depreciated. The estimated useful lives are as follows:
Item# Useful life
Buildings and improvements - 2 to 50 years ^

Wharves, floating docks and boats - 10 to 23 years
Plant and machinery - 2 to 20 years
Production tools and equipment - 2 to 20 years
Furniture, fittings, office equipment and others - 2 to 12 years
Aircraft and aircraft engines - 2 to 30 years
#
Property, plant and equipment purchased specifically for projects are depreciated over the useful life or the duration of the project,
whichever is shorter.
^ Refer to Note C1(b) Major Properties for details of the lease tenure used to approximate the useful lives of the leasehold land, buildings
and improvements.
Impairment
The carrying amounts of property, plant and equipment are reviewed at each reporting date to determine
whether there is any indication of impairment. If any such indications exists, then the asset’s recoverable
amount is estimated. An impairment loss is recognised if the carrying amount of an asset or its related cash
generating unit exceeds its estimated recoverable amount.
Estimates and judgement: Depreciation charge
Management estimates the useful lives based on factors such as changes in the expected level of usage and
technological developments. These are reassessed at each reporting date, and adjusted prospectively, where
appropriate.


31 DECEMBER 2021
C2 Right-of-use assets
The Group leases many assets including land, vehicles, machinery and IT equipment. Information about leases
for which the Group is a lessee is presented below.
Group Furniture,
Wharves, fittings,
floating Production office
Leasehold docks and Plant and tools and equipment
land boats machinery equipment and others Total
$’000 $’000 $’000 $’000 $’000 $’000
At 1 January 2021 524,395 1,248 1,300 429 11,437 538,809

Additions 80,342 – 60 218 6,208 86,828
Disposal of subsidiaries (190) – – – – (190)
Modifications of lease 12,614 – – – 79 12,693
Lease termination (6,394) – (130) (35) (634) (7,193)
Depreciation charge/
impairment losses (64,155) (651) (381) (288) (7,131) (72,606)
Translation difference 184 – 24 3 7 218
At 31 December 2021 546,796 597 873 327 9,966 558,559
Group Furniture,
Wharves, fittings,
floating Production office
Leasehold docks and Plant and tools and equipment
land boats machinery equipment and others Total
$’000 $’000 $’000 $’000 $’000 $’000
At 1 January 2020 469,596 595 917 274 12,593 483,975

Additions 52,584 1,302 813 504 5,806 61,009
Modifications of lease 67,161 – – (57) 100 67,204
Lease termination (32) – – – (46) (78)
Depreciation charge/
impairment losses (65,714) (649) (428) (298) (7,258) (74,347)
Translation difference 800 – (2) 6 242 1,046
At 31 December 2020 524,395 1,248 1,300 429 11,437 538,809


31 DECEMBER 2021
C3 Intangible assets
Group
Dealer Development
Goodwill network expenditure
$’000 $’000 $’000
Cost
At 1 January 2021 842,502 181,689 631,010
Additions – – 84,898
Disposal of subsidiaries (10,431) (3,013) (114)
Write-off – – –
Reclassification – – –
Translation difference 15,584 (9,231) 2,793
At 31 December 2021 847,655 169,445 718,587
Accumulated amortisation and impairment losses

At 1 January 2021 56,123 53,335 159,698
Amortisation for the year * – 6,989 38,607
Impairment losses + 5,000 – 1,769
Disposal of subsidiaries (10,431) (2,962) (104)
Write-off – – –
Reclassification – – –
Translation difference 287 (1,403) 2,078
At 31 December 2021 50,979 55,959 202,048
Net book value

At 31 December 2021 796,676 113,486 516,539

Commercial
and intellectual Technology
property rights Brands Licenses agreement Others Total
$’000 $’000 $’000 $’000 $’000 $’000
595,677 79,335 64,407 33,370 34,412 2,462,402

1,440 – – – 30,397 116,735
(164) (523) (4,972) – (742) (19,959)
– – – – – –
10,193 – (9,673) – – 520
12,714 1,585 (3) 742 – 24,184
619,860 80,397 49,759 34,112 64,067 2,583,882
125,752 17,909 49,253 19,853 34,341 516,264

33,829 1,183 334 2,576 375 83,893
– – – – – 6,769
(155) (523) (4,778) – (742) (19,695)
– – – – – –
2,159 – (1,639) – – 520
1,669 268 36 456 2 3,393
163,254 18,837 43,206 22,885 33,976 591,144
456,606 61,560 6,553 11,227 30,091 1,992,738


31 DECEMBER 2021
C3 Intangible assets (continued)
Group
Dealer Development
Goodwill network expenditure
$’000 $’000 $’000
Cost
At 1 January 2020 856,897 170,693 547,192
Additions – – 83,704
Disposal of subsidiaries – – –
Write-off – – (2,413)
Reclassification – – (15,902)
Translation difference (14,395) 10,996 18,429
At 31 December 2020 842,502 181,689 631,010
Accumulated amortisation and impairment losses

At 1 January 2020 42,886 43,390 137,617
Amortisation for the year * – 7,617 30,125
Impairment losses + 14,431 556 11,021
Disposal of subsidiaries – – –
Write-off – – (2,413)
Reclassification – – (14,529)
Translation difference (1,194) 1,772 (2,123)
At 31 December 2020 56,123 53,335 159,698
Net book value

At 31 December 2020 786,379 128,354 471,312
* Amortisation charge of $83,893,000 (2020: $81,011,000) is recognised in the income statement as part of:
- Other operating expenses of $40,624,000 (2020: $45,155,000); and
- Cost of sales of $43,269,000 (2020: $35,856,000)
+ During the year, an impairment loss on goodwill of $5,000,000 (2020: $14,431,000) was recognised in other operating expenses in
the income statement as the recoverable amount of a CGU (2020: two CGUs) was determined to be lower than the carrying amount. The
recoverable amount was determined based on the value-in-use method.
During the year, impairment losses of $1,769,000 were recognised in cost of sales in the income statement on certain development
expenditure assessed by the Group to be impaired as these intangible assets were not expected to be generating future economic
benefits. In the prior year, the Group assessed that certain development expenditure, licenses and commercial and intellectual property
rights associated with servicing of certain type of commercial airplane were impaired as these intangible assets were not expected to
be generating future economic benefits and impairment losses of $29,374,000 were recognised in cost of sales and $1,961,000 were
recognised in other operating expenses in the income statement.


Commercial
and intellectual Technology
property rights Brands Licenses agreement Others Total
$’000 $’000 $’000 $’000 $’000 $’000
605,211 80,680 63,443 34,023 34,412 2,392,551

2,262 – 866 – – 86,832
(672) – – – – (672)
– – – – – (2,413)
589 – 81 – – (15,232)
(11,713) (1,345) 17 (653) – 1,336
595,677 79,335 64,407 33,370 34,412 2,462,402
92,924 16,921 27,584 17,659 33,355 412,336

36,427 1,210 2,007 2,639 986 81,011
111 – 19,647 – – 45,766
(672) – – – – (672)
– – – – – (2,413)
– – – – – (14,529)
(3,038) (222) 15 (445) – (5,235)
125,752 17,909 49,253 19,853 34,341 516,264
469,925 61,426 15,154 13,517 71 1,946,138


31 DECEMBER 2021
(i) Goodwill
Goodwill represents the excess of:
• the fair value of the consideration transferred; plus

• the recognised amount of any non-controlling interests in the acquiree; plus
• if the business combination is achieved in stages, the fair value of the existing equity interest in
the acquiree,
over the net recognised amount (generally fair value) of the identifiable assets acquired and liabilities
assumed.
When the excess is negative, a bargain purchase gain is recognised immediately in profit or loss.
Goodwill is initially measured at cost. Following initial recognition, goodwill is measured at cost less any
accumulated impairment losses.
(ii) Other intangible assets
Class of
intangible assets Background Valuation method Useful lives
Dealer network Includes customer Initial recognition: 5 to 25 years
relationships and networks
acquired Separately acquired
intangible assets are
Commercial Relates to intellectual recognised at cost. 2 to 20 years
and intellectual property
property rights Intangible assets
arising from business
combinations are
Brands Includes LeeBoy™ and Rosco recognised at fair value at 20 to 70 years
brands of road construction the date of acquisition.
equipment
Subsequent
Licenses Relates to licenses to measurement: 7 to 30 years
- conduct commercial
aviation activities Intangible assets are
- purchase and lease carried at cost less any
Boeing parts accumulated amortisation
- develop MRO capabilities and accumulated
for specific aircraft types impairment losses
following initial
recognition.
Technology Relates to the intellectual 13 years
agreement property required to
Amortisation is calculated
operate the EcoPower
on a straight-line basis over
Engine Wash business
the estimated useful lives.
Authorised repair Relates to the sole appointed 5 years

centre agreements authorised service centre
for repair and overhaul of
landing gear


31 DECEMBER 2021
Recognition and measurement (continued)
(ii) Other intangible assets (continued)
Class of
intangible assets Background Valuation method Useful lives
Development Development expenditure (i) Initially recognised at A330-200 PTF
expenditure on an individual project is cost and A330-300
recognised as an intangible PTF: 41 years
asset when the Group (ii) Subsequently,
can demonstrate the carried at cost less A320/A321
technical and commercial any accumulated PTF: 41 years
feasibility of development. amortisation and
The capitalised costs are accumulated A350 PTF:
directly attributable to impairment losses 8 years
activities preparing the asset
for its intended use, and Others:
capitalised borrowing costs. 3 to 10 years
In any other circumstances,
development costs are
recognised in profit or loss as
incurred.
Included in development
cost are costs related to
development and assembly
of aircraft seats, A330-200
PTF and A330-300 PTF,
A350 PTF and A320/A321
PTF.
(iii) Subsequent expenditure
Subsequent expenditure is capitalised only when it increases the future economic benefits embodied
in the specific asset to which it relates. All other expenditure, including expenditure on internally
generated intangible assets, is recognised in profit or loss as incurred.
Impairment review
The Group tests intangible assets for impairment to ensure they are not carried at above their recoverable
amounts annually or more frequently if events or changes in circumstances indicate that the carrying value
may be impaired.
These tests are performed by assessing the recoverable amount of each individual asset or, if this is not
possible, then the recoverable amount of the cash generating unit (CGU) to which the asset belongs. CGUs
are the lowest levels at which assets are grouped and generate separately identifiable cash flows.
The recoverable amount is the higher of an asset or a CGU’s fair value less costs to sell and value-in-use. The
value-in-use calculations are based on discounted cash flows expected to arise from the asset.
Reversal of impairment
Intangible assets other than goodwill that suffered impairment are reviewed for possible reversal of the
impairment at each reporting date.


31 DECEMBER 2021
Key estimates and judgement: Recognition and measurement of intangible assets
Key assumptions used in estimating the recoverable amount, useful life of an intangible asset (reassessed at
each reporting date) requires management’s judgement.
Aggregate carrying amounts of goodwill allocated to each CGU within the business segments and the key
assumptions used in determining the recoverable amount of each CGU are as follows:
Group Pre-tax discount rate Terminal growth rate
2021 2020 2021 2020 2021 2020

$’000 $’000 % % % %
(Restated) (Restated) (Restated)
Commercial Aerospace .
Aerostructures & Systems 61,395 62,050 7.0 – 8.8 9.0 – 9.4 1.0 – 1.6 1.6
Aerospace MRO 16,995 16,669 9.1 9.0 1.5 1.5
Urban Solutions & Satcom

Smart Utilities & Infrastructure 75,195 73,429 10.4 8.9 3.0 3.0
Satcom 434,355 424,908 8.9 8.7 3.0 3.0
Defence & Public Security

Specialty Vehicles 108,269 110,718 10.7 – 15.5 10.5 – 15.2 2.3 2.3
Robotics &
Autonomous Systems 35,370 34,601 10.6 – 11.4 10.3 2.5 2.3
Mission Software & Services 12,320 12,320 7.5 7.0 2.0 2.0
Training & Simulation Systems 15,382 15,048 13.5 11.4 3.0 3.0
Advanced Networks & Sensors 36,619 35,860 9.7 9.5 3.0 3.0
Defence Aerospace 776 776 NA NA NA NA
796,676 786,379
* With effect from 1 January 2021, following the re-organisation of the Group into Commercial and Defence & Public Security clusters,
the comparatives were restated in conformance with current year classification.


31 DECEMBER 2021
The recoverable amounts of the CGUs are determined based on value-in-use calculations, using cash flow
projections derived from the financial budgets approved by management for the next five to ten years. The key
assumptions used in the calculation of recoverable amounts are as follows:
• The discount rate used is estimated based on the industry weighted average cost of capital.
• The long-term terminal growth rate has been determined based on either the nominal GDP rates for
the country in which the CGU is based or the long-term growth rate estimated by management by
reference to forecasts included in industry reports and expected market development.
• The revenue growth rate and gross profit margins are determined based on the past performance and
its expectations of market developments.
Sensitivity to changes in assumptions:
(a) Management has identified the following key assumption for which a change as set out below could
cause the carrying amount to exceed the recoverable amount.
Change required for

carrying amount to equal
Business Segment Assumption the recoverable amount
2021 2020
% %
Revenue growth rate

Defence & Public Security (average of next 5 years) 2.7 1.7
(b) No sensitivity analysis was disclosed for the remaining CGUs as the Group believes that any reasonable
possible change in the key assumptions is unlikely to result in any material impairment to the CGUs.
Key estimates and judgement: Impairment of goodwill
Determination of potential impairment requires an estimation of the recoverable amount of the CGUs to which
goodwill are allocated. Key assumptions made to the projected cash flows requiring judgement include growth
rate estimates and discount rates.


31 DECEMBER 2021
C4 Amounts due from related parties
Group 2021 2020

$’000 $’000
Trade:
Associates 7,514 6,927
Joint ventures 22,293 16,109
Related parties 25,464 7,444
55,271 30,480
Non-trade*:
Associate 7,318 4,256
Joint ventures 62,755 20,608
Related parties 108 116
70,181 24,980
Allowance for doubtful debts – (608)
125,452 54,852
Receivable:
Within 1 year 113,843 46,305
After 1 year 11,609 8,547
125,452 54,852
Amounts due from related parties denominated in currencies other than the respective entities’ functional
currencies as at 31 December are $62,985,000 (2020: $15,205,000) denominated in USD.
* Included in non-trade are:
(a) a long term (2020: short term), unsecured, interest free loan of $4,256,000 (2020: $4,256,000) to an
associate;
(b) a long term, unsecured, 6% (2020: nil) per annum interest bearing loan of $3,062,000 to an associate,
repayable in 2025; and
(c) loans of $61,034,000 (2020: $19,519,000) to joint ventures, bearing interest ranging from 0.71% to 6.38%
(2020: 0.85% to 6.38%) per annum, which are the effective interest rates. The loans are unsecured and
repayable from 2022 to 2029 (2020: 2021 to 2029).


31 DECEMBER 2021
C5 Inventories
Group 2021 2020

$’000 $’000
Inventories of equipment and spares 1,261,156 1,269,192
In 2021, raw materials, consumables and changes in finished goods and work-in-progress recognised as cost of
sales amounted to $3,040,874,000 (2020: $3,808,935,000).
Allowances for inventory obsolescence
As at 31 December 2021, the inventories are stated after allowance for inventory obsolescence of $359,381,000
(2020: $367,607,000).
Inventories are measured at the lower of cost and net realisable value. Cost (comprising direct labour, material
costs, direct expenses and an appropriate allocation of production overheads) is calculated on a first-in, first-
out basis or weighted average cost basis depending on the nature and pattern of use of the inventories.
Cost may also include transfers from equity on qualifying cash flow hedges of foreign currency purchases of
inventories. Allowance is made for deteriorated, damaged, obsolete and slow-moving inventories.
Net realisable value represents the estimated selling price in the ordinary course of business, less estimated
costs to sell.
Estimates and judgement: Allowance for inventory obsolescence
The allowance for inventory obsolescence is based on estimates from historical trends and expected utilisation
of inventories. The actual amount of inventory write-offs could be higher or lower than the allowance made.


31 DECEMBER 2021
C6 Trade receivables
Group 2021 2020

$’000 $’000
Gross receivables 1,125,418 1,139,829

Allowance for doubtful debts (58,662) (91,985)
Trade receivables, net 1,066,756 1,047,844
Trade receivables denominated in currencies other than the respective entities’ functional currencies as at
31 December are as follows:
• $213,370,000 (2020: $166,549,000) denominated in USD

• $29,248,000 (2020: $21,201,000) denominated in EUR
C7 Advances and other receivables
Group 2021 2020

$’000 $’000
Deposits 12,311 13,205

Interest receivables 22 135
Finance lease receivables 14,115 2,229
Other recoverables 81,826 51,051
Non-trade receivables 44,268 66,854
Advance payments to suppliers 167,941 142,750
Prepayments 82,919 86,839
Housing and car loans and advances to staff 11,602 12,176
Loans to third parties – 750
415,004 375,989
Receivable:
Within 1 year 345,141 317,741
After 1 year 69,863 58,248
415,004 375,989
The Group entered into finance lease arrangements with customers with terms ranging from 1.0 to 7.1 years
(2020: 0.6 to 7.1 years) and effective interest rates ranging from 0.56% to 2.74% (2020: 1.65% to 2.74%) per
annum.


31 DECEMBER 2021
C8 Bank balances and other liquid funds
Group 2021 2020

$’000 $’000
Fixed deposits with financial institutions 123,293 86,622

Cash and bank balances 692,631 644,002
Bank balances and other liquid funds 815,924 730,624
Deposits pledged – (1,145)
Cash and cash equivalents in the statement of cash flows 815,924 729,479
Fixed deposits with financial institutions mature at varying periods within 7 months (2020: 11 months) from the
financial year-end. Interest rates range from 0.1% to 1.9% (2020: 0.1% to 2.1%) per annum, which are also the
effective interest rates.
Included in cash and cash equivalents are bank deposits amounting to $26,010,000 (2020: 19,699,000) which
are not freely remissible for use by the Group because of currency exchange restrictions.
Cash and bank balances of nil (2020: $1,145,000) have been placed with banks as security for letters of credit
issued to third parties. Cash and cash equivalents denominated in currencies other than the respective entities’
functional currencies as at 31 December are as follows:



31 DECEMBER 2021
C9 Trade payables and accruals
Group 2021 2020

$’000 $’000
Trade payables 914,757 689,879

Non-trade payables 109,861 89,423
Purchase of property, plant and equipment 8,341 321
Accrued operating expenses* 1,638,504 1,453,250
Accrued interest payable 4,534 4,488
2,675,997 2,237,361
Payable:
Within 1 year 2,612,515 2,218,023
After 1 year 63,482 19,338
2,675,997 2,237,361
Trade payables denominated in currencies other than the respective entities’ functional currencies as at
31 December are as follows:

* Included in the accrued operating expenses is an amount of $288,424,000 (2020: $244,203,000) for the
Group’s obligations under its employee compensation schemes.
C10 Amounts due to related parties
Group 2021 2020

$’000 $’000
Trade:
Associates 18,621 9,925
Joint ventures 754 476
Related parties 1,242 1,110
20,617 11,511
Non-trade:
Joint ventures* 7,151 12,314
Related parties 13 8
7,164 12,322
27,781 23,833
Payable:
Within 1 year 27,781 23,833
There were no significant amounts due to related parties denominated in currencies other than the respective
entities’ functional currencies as at 31 December 2021 and 31 December 2020.
* Included in the amounts due to joint ventures (non-trade) is an amount of $7,121,000 (2020:
$12,300,000) placed by joint ventures with a subsidiary of the Group under a cash pooling arrangement,
where an effective interest of 0% per annum (2020: 0%) is charged on the outstanding balance.


31 DECEMBER 2021
C11 Provisions
Movements in provisions are as follows:
Group Onerous Closure Restoration

Warranties contracts costs costs Total
$’000 $’000 $’000 $’000 $’000
2021
At 1 January 2021 181,741 118,695 1,033 35,090 336,559
Charged/(write-back) to
profit or loss 46,865 85,490 – (109) 132,246
Additions – – – 14,208 14,208
Utilised (31,375) (81,353) (56) (530) (113,314)
Disposal of subsidiaries (13) – – – (13)
Translation difference 9 1,705 – 33 1,747
At 31 December 2021 197,227 124,537 977 48,692 371,433
Group Onerous Closure Restoration

Warranties contracts costs costs Total
$’000 $’000 $’000 $’000 $’000
2020
At 1 January 2020 176,146 52,322 1,339 20,646 250,453
Charged to profit or loss 37,490 91,177 – 1,577 130,244
Additions – – – 12,888 12,888
Utilised (31,126) (22,696) (232) – (54,054)
Translation difference (769) (2,108) (74) (21) (2,972)
At 31 December 2020 181,741 118,695 1,033 35,090 336,559
Group 2021 2020

$’000 $’000
Provision
Within 1 year 331,837 306,758
After 1 year 39,596 29,801
371,433 336,559


31 DECEMBER 2021
C11 Provisions (continued)
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of past
events, it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate
of the amount can be made.
(i) Warranties
The warranty provision represents the best estimate of the Group’s contractual obligations at the
reporting date.
Under the terms of the revenue contracts with key customers, the Group is obligated to make good, by
repair or replacement, engineering or manufacturing defects that become apparent within the warranty
period from the date of sale. The warranty obligation varies from 90 days to 12 years. The Group’s
experience of the proportion of its products sold that requires repair or replacement differs from year to
year as every contract is customised to the specification of the customers.
The estimation of the provision for warranty expenses is based on the Group’s past claim experience
over the duration of the warranty period and the industry average in relation to warranty exposures and
represents the best estimates of the costs expected to incur per dollar of sales.
The warranty provision made as at 31 December 2021 is expected to be incurred over the applicable
warranty periods.
(ii) Onerous contracts
Provision for onerous contracts on uncompleted contracts is recognised immediately in profit or loss
when it is determinable.
(iii) Closure costs
Provision for closure costs is made in respect of the expected costs that the Group will undertake
between the cessation of certain operations of the Group to the completion of their liquidation.
(iv) Restoration costs
Provision for restoration costs is made for dismantlement, removal or restoration costs expected to be
incurred on expiry of lease agreements.
Estimates and judgement: Provision for warranty
The provision for warranty is based on estimates from known and expected warranty work to be performed
after completion. The warranty expense incurred could be higher or lower than the provision made.
Estimates and judgement: Provision for onerous contracts
The Group conducts a critical review of all its long-term contracts regularly. Allowance is made where necessary
to account for onerous contracts and judgement is used to estimate the total cost to complete.


31 DECEMBER 2021
C12 Deferred income
Group 2021 2020

$’000 $’000
Government grants 81,209 121,397

Deferred rents 338 –
81,547 121,397
Recognise:
Within 1 year 7,665 70,922
After 1 year 73,882 50,475
81,547 121,397
Government grants relate mainly to grants received to subsidise the cost of capital assets. In the prior year,
the government grant included deferred grant recognised under the Jobs Support Scheme (JSS) and other
government support for employee related expenses. The JSS is a temporary scheme introduced in the Singapore
Budget 2020 to help enterprises to retain local employees. Under the JSS, employers will receive cash grants in
relation to the gross monthly wages of eligible employees.
C13 Contract balances
The following table provides information about contract assets and contract liabilities from contracts with
customers.
Group 2021 2020 2019

$’000 $’000 $’000
Contract assets 1,726,505 1,555,781 1,630,492

Contract liabilities (1,752,278) (1,786,235) (1,352,648)
The timing of revenue recognition, billings and cash collections results in billed accounts receivable (included
in trade receivables), unbilled receivables (contract assets), and customer advances (contract liabilities) on the
statement of financial position.
The contract assets primarily relate to the Group’s rights to consideration for work completed but not billed at
the reporting date. If the value of services rendered exceeds payments received from the customer, a contract
asset is recognised and presented separately. Costs to fulfil are recognised in profit and loss when the related
revenue is recognised. The contract asset is transferred to receivables when the entitlement to payment becomes
unconditional.
Contract assets include costs to fulfil of $693,698,000 (2020: $665,572,000). Costs to fulfil of $1,340,917,000
(2020: $1,145,418,000) were recognised in profit and loss during the year.
The contract liabilities primarily relate to advance consideration received from customers for contract revenue.
If the amounts invoiced to the customer exceeds the value of services rendered, a contract liability is recognised
and presented separately.
These assets and liabilities are reported on the statement of financial position on a contract by contract basis at
each reporting date.


31 DECEMBER 2021
C13 Contract balances (continued)
The contract assets balance increased as the Group provided more services and transferred more goods ahead
of the agreed payment schedules.
The contract liabilities decreased due to lesser consideration received by the Group ahead of the provision of
services and goods.
Revenue recognised in relation to contract liabilities
Group 2021 2020

$’000 $’000
Revenue recognised that was included in the contract liability balance

at the beginning of the year 556,473 518,900
Transaction price allocated to the remaining performance obligations
The aggregate amount of transaction price allocated to the remaining performance obligations as at
31 December 2021 is $19,330,917,000 and the Group expects to recognise $6,590,168,000 as revenue
relating to the unsatisfied (or partially unsatisfied) performance obligations in 2022 with the remaining
$12,740,749,000 in 2023 and beyond.
As at 31 December 2020, the aggregate amount of transaction price allocated to the remaining performance
obligations was $15,403,538,000 and the Group expected to recognise $5,344,283,000 as revenue relating to
the unsatisfied (or partially unsatisfied) performance obligations in 2021 with the remaining $10,059,255,000
in 2022 and beyond.
Variable consideration that is constrained and therefore not included in the transaction price is excluded in the
amount presented above.
Estimates and judgement: Contract balances
Judgements are used to estimate these total contract costs to complete. In making these estimates,
management has relied on past experience of completed projects. The estimated total contract costs are
reviewed every reporting period and adjusted where necessary, with the corresponding effect of change being
recognised prospectively from the date of change.
C14 Financial risk management objectives and policies
The Group has exposure to the following financial risks arising from its operations and the use of financial
instruments:
• Interest rate
• Foreign exchange
• Market
• Liquidity
• Credit
The Group’s principal financial instruments, other than foreign exchange contracts and derivatives, comprise
bank guarantees, performance bonds and bank loans, finance leases and hire purchase contracts, investments,
cash and short-term deposits.


31 DECEMBER 2021
C14 Financial risk management objectives and policies (continued)
All financial transactions with the banks are governed by banking facilities duly accepted with Board of Directors’
resolutions, with banking mandates, which define the permitted financial instruments and facilities limits. All
financial transactions require dual signatories. The Group has various other financial assets and liabilities such
as trade receivables and trade payables, which arise directly from its operations.
It is the Group’s policy not to engage in foreign exchange and/or derivatives speculation. The purpose of engaging
in treasury transactions is solely for hedging. The Group’s treasury mandates allow only foreign exchange spot,
forward or non-deliverable forward, foreign exchange swap, cross currency swap, purchase of foreign exchange
call, put or collar option, forward rate agreement, interest rate swap, purchase of interest rate cap, floor or collar
option. These instruments are generic in nature with no embedded or leverage features and any deviation from
these instruments would require specific approval from the Board of Directors.
The policies for managing each of these risks are broadly summarised below:
Interest rate risk
As at reporting date, the interest rate profile of the interest-bearing financial instruments is:
Group 2021 2020

$’000 $’000
Fixed rate instruments

Financial assets 205,760 112,626
Financial liabilities (1,811,411) (1,816,348)
(1,605,651) (1,703,722)
Variable rate instruments

Financial liabilities (310,930) (242,847)
(310,930) (242,847)
The Group has cash balances placed with reputable banks and financial institutions. The Group manages its
interest rate risk on its interest income by placing the cash balances in varying maturities and interest rate terms
with due consideration to operating cash flow requirements and optimising yield.
The Group’s debts include bank loans, Medium Term Notes (MTN), commercial papers and lease liabilities
(2020: bank loans, commercial papers and lease liabilities). The Group seeks to minimise its interest rate risk
exposure through tapping different sources of funds to refinance the debt instruments and/or enter into interest
rate swaps.
An increase/decrease of 50 basis points in interest rate, with all other variables being held constant, would lead
to a reduction/increase of the Group’s profit or loss by approximately $1.6 million (2020: $1.2 million).
The Group’s policy is to maintain at least 50% of its borrowings at fixed rate, using floating-to-fixed interest rate
swaps to achieve this when necessary. During 2021 and 2020, the Group’s borrowings at variable rate were
mainly denominated in USD.
Except bank loans of $132,350,000 (2020: nil), other variable interest rates borrowings were not referenced to
inter-bank offered rates (IBORs) that will be affected by the IBOR reforms.


31 DECEMBER 2021
Included in the variable rate borrowings is a USCP of $350,869,000 (2020: $396,230,000) whose interest rate on
each rollover correlates with 3-month LIBOR. To hedge the variability of the cash flows of the USCP, the Group
has entered into a 5-year interest rate swap of notional amount of $179,087,000 as at 31 December 2021 (2020:
$191,719,000) with key terms that match part of the outstanding USCP on which it pays a fixed rate and receives
a variable rate.
The Group expects to issue 10-year bonds to refinance part of the short term debt that will be taken up to
fund the acquisition of TransCore Partners, LLC and TLP Holdings, LLC (collectively, “TransCore”). From the
date of announcement of the TransCore acquisition on 3 October 2021 until the expected bond issuance
post-acquisition, the Group will be subjected to the volatility of the 10-year U.S. Treasury yield as this yield
will form the basis of the Group’s 10-year bond yield at the time of pricing of the bond. The Group entered
into US$1 billion of 10-year treasury locks in 4Q 2021 to lock in the 10-year U.S. Treasury forward yield.
Treasury lock is a hedging tool to lock the forward yield on a specific U.S. Treasury security. The locked forward
yield will mitigate the volatility in the 10-year U.S. Treasury yield for the Group’s expected bond issuance.
The Group’s borrowings and receivables are carried at amortised cost. The borrowings are periodically
contractually repriced and to that extent are also exposed to the risk of future changes in market interest rates.
Hedge ineffectiveness for interest rate swaps is assessed using the same principles as for hedges of foreign
currency purchases. It may occur due to:
• the credit value/debit value adjustment on the interest rate swaps which is not matched by the loan;
• differences in critical terms between the interest rate swaps and loans; and
• the effects of the forthcoming reforms to LIBOR, because these might take effect at a different time and
have a different impact on the hedged item (the floating-rate debt) and the hedging instrument (the
interest rate swap used to hedge the debt).
No ineffectiveness has been recognised in relation to the interest rate swaps in finance income or finance costs
in profit or loss for 2021 (2020: nil).
Information relating to the Group’s interest rate risk exposure is also disclosed in the notes on the Group’s
borrowings, investments and loans receivable, where applicable.
Foreign exchange risk
The Group is exposed to foreign exchange risk from its global operations and revenues, costs and borrowings
denominated in a currency other than the respective entities’ functional currencies. The Group’s foreign
exchange exposures are primarily from USD and EUR, and manages its exposure through forward currency
contracts and embedded derivatives.
The Group’s centralised Treasury Unit monitors the current and projected foreign currency cash flows within the
Group and aims to reduce the exposure of the net position by transacting with the banks where appropriate.
No foreign exchange sensitivity analysis was disclosed as a reasonable change in the exchange rates would not
result in any significant impact on the Group’s results.
Market risk
The Group has strategic investments in unquoted equity shares. The market value of these investments will
fluctuate with market conditions.
No sensitivity analysis was disclosed as a reasonable change in the market value of these investments would not
result in any significant impact on the Group’s results.


31 DECEMBER 2021
Liquidity risk
To manage liquidity risk, the Group monitors its net operating cash flows and maintains an adequate level of
cash and cash equivalents and secured committed funding facilities from financial institutions. In assessing the
adequacy of these funding facilities, management reviews its working capital requirements regularly.
The table below analyses the maturity profile of the Group’s financial liabilities based on the contractual
undiscounted cash flows including estimated interest payments and excluding impact of netting arrangements.
Group Contractual Within Between More than

cash flow 1 year 1 and 5 years 5 years
$’000 $’000 $’000 $’000
2021
Bank loans (214,359) (144,451) (42,039) (27,869)
Commercial papers (351,416) (351,416) – –
Medium term notes (1,064,274) (15,206) (1,049,068) –
Lease liabilities (702,271) (69,088) (205,184) (427,999)
Trade and other payables (2,703,778) (2,640,296) (26,248) (37,234)
Derivative financial instruments:
• Gross-settled forward currency contracts
- payments (1,646,898) (1,120,991) (525,907) –
- receipts 1,637,833 1,127,732 510,101 –
• Net-settled interest rate swaps (5,835) (3,732) (2,103) –
• Treasury Lock 216 216 – –
2020
Bank loans (122,057) (15,511) (66,504) (40,042)
Commercial papers (396,660) (396,660) – –
Medium term notes (1,055,999) (14,875) (1,041,124) –
Lease liabilities (696,277) (71,307) (208,666) (416,304)
Other loans (19,756) (19,756) – –
Trade and other payables (2,261,194) (2,241,856) (18,937) (401)
Derivative financial instruments:
• Gross-settled forward currency contracts
- payments (974,449) (659,965) (314,484) –
- receipts 1,011,791 680,517 331,274 –
• Net-settled interest rate swaps (24,432) (12,216) (4,607) (7,609)
Financial guarantees (15,332) (1,147) (7,320) (6,865)


31 DECEMBER 2021
Liquidity risk (continued)
Except for the cash flows arising from the intra-group financial guarantee, it is not expected that the cash flows
included in the maturity analysis could occur significantly earlier, or at significantly different amounts.
At the reporting date, the Group does not consider it probable that a claim will be made against the Group under
the financial guarantees.
Financial guarantees are financial instruments issued by the Group to joint ventures that require the issuer to
make specified payments to reimburse the holder for the loss it incurs because a specified debtor fails to meet
payment when due in accordance with the original or modified terms of a debt instrument.
Financial guarantees are recognised initially at fair value and are classified as financial liabilities. Subsequently,
they are measured at the higher of the loss allowance determined in accordance with SFRS(I) 9 and the amount
initially recognised less, when appropriate, the cumulative amount of income recognised in accordance with
the principles of SFRS(I) 15.
ECLs are a probability-weighted estimate of credit losses. ECLs are measured for financial guarantees issued
as the expected payments to reimburse the holder less any amounts that the Group expects to recover.
Credit risk
Credit risk is managed through the application of credit approvals, credit limits and monitoring procedures.
Where appropriate, the Company or its subsidiaries obtain collaterals from customers or arrange master netting
agreements. Cash terms, advance payments, and letters of credit or bank guarantees are required for customers
of lower credit standing.
The carrying amounts of financial assets and contract assets represent the Group’s maximum exposures to
credit risk, before taking into account any collateral held.
Group 2021 2020

$’000 $’000
Investments 36,129 23,138

Derivative financial instruments 31,389 44,461
Contract assets 1,726,505 1,555,781
Trade receivables 1,068,290 1,049,368
Amounts due from related parties 125,452 54,852
Advances and other receivables 164,144 146,400
Bank balances and other liquids funds 815,924 730,624
3,967,833 3,604,624


31 DECEMBER 2021
Credit risk (continued)
Impairment losses on financial assets and contract assets recognised in profit or loss are as follows:
Group 2021 2020

$’000 $’000
Trade receivables 9,863 22,319

Contract balances arising from contracts with customers 19,965 4,367
29,828 26,686
Exposure to credit risk
As at 31 December 2021, 20% (2020: 21%) of trade receivables and contract assets relate to three major
customers of the Group.
The table below analyses the trade receivables and contract assets by the Group’s main reportable segments:
Group Carrying amount
2021 2020
$’000 $’000
(restated)
Commercial Aerospace 625,110 556,858

Urban Solutions & Satcom 853,762 873,968
Defence & Public Security 1,315,923 1,174,323
2,794,795 2,605,149


31 DECEMBER 2021
Exposure to credit risk (continued)
A summary of the Group’s exposures to credit risk for trade receivables and contract assets is as follows:
Group 2021 2020 2019

Not credit Credit Not credit Credit Not credit Credit
impaired impaired impaired impaired impaired impaired
$’000 $’000 $’000 $’000 $’000 $’000
Receivables measured at
lifetime ECL:
Trade receivables and
contract assets 2,794,795 82,811 2,605,149 104,648 2,878,041 97,749
Loss allowance – (82,811) – (104,648) – (97,749)
Total 2,794,795 – 2,605,149 – 2,878,041 –
Expected credit loss assessment
Trade receivables and contract assets
For specific trade receivables and contract assets identified by the Group to be credit impaired, the Group
recognised a loss allowance equal to lifetime expected credit loss. Hence, the recoverability of these balances
are assessed separately from the allowance matrix.
For the remaining trade receivables and contract assets, the Group uses an allowance matrix to measure the
expected credit loss (ECL) of trade receivables and contract assets from its customers. Loss rates are calculated
using a ‘roll rate’ method based on the probability of a receivable progressing through successive stages of
delinquency to write-off. Roll rates are calculated separately for exposures in different segments based on the
common credit risk characteristics.
In calculating the expected credit loss rates, the Group considers historical loss rates for each category of
customers and adjusts to reflect current and forward-looking macroeconomic factors affecting the ability of
the customers to settle the receivables. Based on this assessment, the Group has concluded that the expected
credit losses from these trade receivables and contract assets are immaterial.


31 DECEMBER 2021
Expected credit loss assessment (continued)
Trade receivables and contract assets (continued)
The table below shows the aging and loss allowance analysis of the Group’s trade receivables as at 31 December
2021 and 2020:
2021 Not 1 – 90 91 – 180 181 – 360 > 360

past due days days days days Total
$’000 $’000 $’000 $’000 $’000 $’000
Commercial Aerospace
contract assets 586,345 49,879 9,341 9,863 16,600 672,028
Loss allowance (19,377) (370) (4,906) (7,190) (15,075) (46,918)

contract assets 810,782 37,700 5,312 7,737 9,406 870,937
Loss allowance (3,104) (1,273) (878) (2,791) (9,129) (17,175)

contract assets 1,227,112 76,222 8,659 11,083 11,565 1,334,641
Loss allowance (11,588) (122) (694) (215) (6,099) (18,718)
2020 (restated) Not 1 – 90 91 – 180 181 – 360 > 360

past due days days days days Total
$’000 $’000 $’000 $’000 $’000 $’000
Commercial Aerospace
contract assets 484,470 60,696 14,815 22,535 48,072 630,588
Loss allowance (2,510) (7,543) (4,766) (13,311) (45,600) (73,730)

contract assets 806,567 54,380 9,695 7,389 8,311 886,342
Loss allowance (168) (1,256) (577) (2,578) (7,795) (12,374)

contract assets 1,068,059 83,572 12,454 11,834 16,948 1,192,867
Loss allowance (11,533) (282) (391) (2,492) (3,846) (18,544)


31 DECEMBER 2021
Trade receivables and contract assets (continued)
The movement in the allowance for impairment in respect of trade receivables and contract assets during the
year were as follows:
Group Lifetime ECL
2021 2020
$’000 $’000
At 1 January 104,648 97,749

Impairment loss recognised 29,828 26,686
Amounts written off (52,777) (19,290)
Translation difference 1,125 (497)
At 31 December 82,811 104,648
Bank balances and other liquid funds
Bank balances and other liquid funds are placed with financial institutions, which mainly have long-term rating
of A3 by Moody’s or A- by Standard & Poor’s or the equivalent by a reputable credit rating agency. Impairment
on bank balances and other liquid funds has been measured on the 12-month expected loss basis and reflects
the short maturities of the exposures. The Group considers that its bank balances and other liquid funds to have
low credit risk based on the external credit ratings of the counterparties. The amount of the allowance on bank
balances and other liquid funds is insignificant.
Other financial assets
Other financial assets comprise amounts due from related parties and other receivables, which are mostly
short-term in nature. Impairment on other financial assets has been measured on the 12-month expected loss
basis and reflects the short maturities of exposures. The Group considers its other financial assets to have low
credit risk and the amount of the allowance on other financial assets is insignificant.
The Group recognises loss allowances for ECLs on financial assets measured at amortised cost, contract
assets (as defined in SFRS(I) 15), and debt investments at FVOCI, but not for equity investments.
Loss allowances of the Group are measured using either the simplified or general approach.
The Group applies the simplified approach to provide for ECLs for all trade receivables (including lease
receivables) and contract assets. The simplified approach requires the loss allowance to be measured at an
amount equal to lifetime ECLs.
The Group applies the general approach to provide for ECLs on all other financial instruments. Under the
general approach, the loss allowance is measured at an amount equal to 12-month ECLs at initial recognition.


31 DECEMBER 2021
The Group considers a financial asset to be in default when:
• the borrower is unlikely to pay its credit obligations to the Group in full, without recourse by the Group to
actions such as realising security (if any is held); or
• the financial asset remains outstanding for more than the reasonable range of past due days, taking into
consideration historical payment track record, current macroeconomics situation as well as general
industry trend.
Credit-impaired financial assets
At each reporting date, the Group assesses whether financial assets carried at amortised cost and debt
investments at FVOCI are credit-impaired. A financial asset is ‘credit-impaired’ when one or more events that
have a detrimental impact on the estimated future cash flows of the financial asset have occurred.
Evidence that a financial asset is credit-impaired includes the following observable data:
• significant financial difficulty of the borrower or issuer;
• a breach of contract such as a default or payment remains outstanding for more than a reasonable
range of past due days;
• the restructuring of a loan or advance by the Group on terms that the Group would not consider
otherwise;
• it is probable that the borrower will enter bankruptcy or other financial reorganisation; or
• the disappearance of an active market for a security because of financial difficulties.
Presentation of allowance for ECL in the statement of financial position
Loss allowances for financial assets measured at amortised cost and contract assets are deducted from the
gross carrying amount of these assets.
Write-off
The gross carrying amount of a financial asset is written off (either partially or in full) to the extent that there is
no realistic prospect of recovery. This is generally the case when the Group determines that the debtor does
not have assets or sources of income that could generate sufficient cash flows to repay the amounts subject
to the write-off. However, financial assets that are written off could still be subject to enforcement activities in
order to comply with the Group’s procedures for recovery of amounts due.
Estimates and judgement: Impairment of financial assets and contract assets
Impairment of financial assets and contract assets are estimated based on historical loss experience for assets
with similar credit risk characteristics. The estimated ECL is reviewed every reporting period and adjusted
where necessary, with the corresponding effect of change being recognised prospectively from the date of
change.


31 DECEMBER 2021
C15 Classification and fair value of financial instruments
--------------------------- Carrying amount --------------------------
Fair value
Amortised – hedging
Group cost FVTPL instruments
$’000 $’000 $’000
2021
Financial assets measured at fair value
Investments – – –
Associates – 34,215 –
Derivative financial instruments – 20,240 11,149
– 54,455 11,149
Financial assets at amortised cost

Trade receivables 1,068,290 – –
Amounts due from related parties 125,452 – –
Advances and other receivables 164,144 – –
Bank balances and other liquid funds 815,924 – –
2,173,810 – –
Financial liabilities measured at fair value

Derivative financial instruments – (15,266) (37,862)
Financial liabilities at amortised cost

Trade payables and accruals – – –
Amounts due to related parties – – –
Borrowings – – –
– – –

------------------------- Carrying amount ------------------------- -------------------------------- Fair value -------------------------------
FVOCI – Other Total

equity financial carrying
instruments liabilities amount Level 2 Level 3 Total
$’000 $’000 $’000 $’000 $’000 $’000
36,129 – 36,129 – 36,129 36,129

– – 34,215 – 34,215 34,215
– – 31,389 31,389 – 31,389
36,129 – 101,733 31,389 70,344 101,733
– – 1,068,290
– – 125,452
– – 164,144
– – 815,924
– – 2,173,810
– – (53,128) (53,128) – (53,128)
– (2,675,997) (2,675,997)
– (27,781) (27,781)
– (2,115,220) (2,115,220)
– (4,818,998) (4,818,998)


31 DECEMBER 2021
C15 Classification and fair value of financial instruments (continued)
--------------------------- Carrying amount --------------------------
Fair value
Amortised – hedging
Group cost FVTPL instruments
$’000 $’000 $’000
2020
Financial assets measured at fair value
Investments – – –
Associates – 20,858 –
Derivative financial instruments – 9,639 34,822
– 30,497 34,822
Financial assets at amortised cost

Trade receivables 1,049,368 – –
Amounts due from related parties 54,852 – –
Advances and other receivables 146,400 – –
Bank balances and other liquid funds 730,624 – –
1,981,244 – –
Financial liabilities measured at fair value

Derivative financial instruments – (2,471) (20,769)
Financial liabilities at amortised cost

Trade payables and accruals – – –
Amounts due to related parties – – –
Borrowings – – –
– – –

------------------------- Carrying amount ------------------------- -------------------------------- Fair value -------------------------------
FVOCI – Other Total

equity financial carrying
instruments liabilities amount Level 2 Level 3 Total
$’000 $’000 $’000 $’000 $’000 $’000
23,138 – 23,138 – 23,138 23,138

– – 20,858 – 20,858 20,858
– – 44,461 44,461 – 44,461
23,138 – 88,457 44,461 43,996 88,457
– – 1,049,368
– – 54,852
– – 146,400
– – 730,624
– – 1,981,244
– – (23,240) (23,240) – (23,240)
– (2,237,361) (2,237,361)
– (23,833) (23,833)
– (2,046,895) (2,046,895)
– (4,308,089) (4,308,089)


31 DECEMBER 2021
Movements in Level 3 financial instruments measured at fair value
The following table presents the reconciliation for all financial instruments measured at fair value based on
significant unobservable inputs (Level 3).
Group 2021 2020

$’000 $’000
Associate
At 1 January 20,858 5,847
Addition during the year 2,203 –
Transfer from Level 2 – 20,296
Total unrealised gains/(losses) recognised in profit or loss, other income/
(expenses) 11,154 (5,285)
At 31 December 34,215 20,858
Equity instruments (unquoted)

At 1 January 23,138 9,437
Addition during the year 12,991 –
Transfer from Level 2 – 13,701
At 31 December 36,129 23,138
70,344 43,996
(a) Non-derivative financial assets and liabilities
Classification and subsequent measurement
On initial recognition, a financial asset is classified as measured at: amortised cost; FVOCI – debt
investment; FVOCI – equity investment; or FVTPL.
Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its
business model for managing financial assets, in which case all affected financial assets are reclassified
on the first day of the first reporting period following the change in the business model.


31 DECEMBER 2021
(a) Non-derivative financial assets and liabilities (continued)
Classification and subsequent measurement (continued)
Financial assets Classification Subsequent measurement
Amortised cost • The asset is held within a business Measured at amortised cost using the
model whose objective is to hold effective interest method. The amortised
assets to collect contractual cash cost is reduced by impairment losses.
flows; and Interest income, foreign exchange
gains and losses and impairment are
• The contractual terms of the asset recognised in profit or loss. Any gain or
give rise on specified dates to cash loss on derecognition is recognised in
flows that are solely payments profit or loss.
of principal and interest on the
principal amount outstanding.
Debt investments • The asset is held within a business Measured at fair value. Interest
at FVOCI model whose objective is achieved income calculated using the effective
by collecting contractual cash interest method, foreign exchange
flows and selling financial assets; gains and losses and impairment
and are recognised in profit or loss. Other
net gains and losses are recognised
• The contractual terms of the asset in OCI. On derecognition, gains
give rise on specified dates to cash and losses accumulated in OCI are
flows that are solely payments reclassified to profit or loss.
of principal and interest on the
principal amount outstanding.
Equity investments On initial recognition of an equity Measured at fair value. Dividends are
at FVOCI investment that is not held-for- recognised as income in profit or loss
trading, the Group may irrevocably unless the dividend clearly represents
elect to present subsequent changes a recovery of part of the cost of the
in the investment’s fair value in investment. Other net gains and
OCI. This election is made on an losses are recognised in OCI and are
investment-by-investment basis. never reclassified to profit or loss.


31 DECEMBER 2021
Financial assets Classification Subsequent measurement
FVTPL* All other financial assets are classified Measured at fair value. Net gains
as measured at FVTPL. Financial and losses, including any interest or
assets that are held-for-trading or are dividend income, are recognised in
managed, and whose performance profit or loss.
is evaluated on a fair value basis, are
measured at FVTPL.
* On initial recognition, the Group may

irrevocably designate a financial asset
that otherwise meets the requirements
to be measured at amortised cost or at
FVOCI, as at FVTPL if doing so eliminates
or significantly reduces an accounting
mismatch that would otherwise arise.
Business model assessment
The Group makes an assessment of the objective of a business model in which an asset is held at a
portfolio level because this best reflects the way the business is managed and information is provided
to management. The information considered includes:
• The stated policies and objectives for the portfolio and the operation of those policies in practice;
• How the performance of the portfolio is evaluated and reported to the Group’s management;
• The risks that affect the performance of the business model and how those risks are managed;
• How managers of the portfolio are compensated; and
• The frequency, volume and timing of disposals in prior periods, the reasons for such disposals
and its expectations about future activity.


31 DECEMBER 2021
Assessment of whether contractual cash flows are solely payments of principal and interest
For assessment purposes, ‘principal’ is defined as the fair value of the financial asset on initial
recognition. ‘Interest’ is defined as consideration for the time value of money and for the credit risk
associated with the principal amount outstanding during a particular period of time and for other basic
lending risks and costs (e.g. liquidity risk and administrative costs), as well as profit margin.
In assessing whether the contractual cash flows are solely payments of principal and interest, the
Group considers contingent events, leverage features, modifications of the time value of money and
other limiting terms in the contractual terms of the instrument, which change the timing or amount
of contractual cash flows such that the cash flows of the instrument would not be reflective of solely
payments of principal and interest.
Reclassifications
Financial assets are not reclassified subsequent to their initial recognition, except in the period after the
Group changes its business model for managing those financial assets.
Financial liabilities
The Group classifies its financial liabilities, other than financial guarantees and loan commitments, as
measured at amortised cost or FVTPL.
Derecognition
Financial assets
The Group derecognises a financial asset when the contractual rights to the cash flows from the
financial asset expire, or when it transfers the rights to receive the contractual cash flows in a transaction
in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in
which the Group neither transfers nor retains substantially all of the risks and rewards of ownership and
it does not retain control of the financial asset.
Financial liabilities
The Group derecognises a financial liability when its contractual obligations are discharged or cancelled,
or expired.
(b) Fair value
The Group has an established approach with respect to the measurement of fair values.


31 DECEMBER 2021
(b) Fair value (continued)
Fair value hierarchy
The Group classifies fair value measurement using a fair value hierarchy that reflects the significance
of the inputs used in making the measurements. The following table shows the levels of fair value
hierarchy and the respective valuation technique used in measuring the fair values, as well as significant
unobservable inputs:
Types of financial instruments Valuation method
Level 1 FVOCI Determined by reference to their quoted bid

- Equity investments (quoted) prices for these investments as at reporting date.
Level 2 FVOCI Determined by reference to the most recent

- Equity investments (unquoted) purchase price.
Derivatives Determined based on broker quotes. Similar

- Forward currency contracts contracts are traded in an active market and the
- Interest rate swaps quotes reflect the actual transactions in similar
- Embedded derivatives instruments.
FVTPL Determined by reference to the most recent

- Investment in associates purchase price.
Level 3 FVOCI Determined based on latest funding round.

- Equity investment (unquoted)
FVTPL Determined based on valuation performed

- Investment in associates using adjusted market multiples. Changing one
or more of the inputs to reasonable alternative
assumptions is not expected to have a material
impact on the changes in fair value.


31 DECEMBER 2021
(b) Fair value (continued)
Measurement of fair values
The Group regularly reviews significant unobservable inputs and valuation adjustments. If third party
information, such as broker quotes or pricing services, is used to measure fair value, then the Group
assesses and documents the evidence obtained from the third parties to support the conclusion that
such valuations meet the requirements of SFRS(I)s, including the level in the fair value hierarchy the
resulting fair value estimate should be classified.
The Group recognises transfers between levels of the fair value hierarchy as of the end of the reporting
period during which the change has occurred. In 2020, other than transfers from Level 2 to Level 3,
there were no other transfers between the different levels of fair value hierarchy. In 2021, there were no
transfers between the different levels of fair value hierarchy.
The following methods and assumptions are used to estimate the fair value of other classes of financial
instruments:
Types of financial instruments Valuation method
Bank balances, other liquid funds and Carrying amounts approximate fair values due
short-term receivables to the relatively short-term maturity of these
instruments.
Short-term borrowings and other current
payables
Long-term receivables Estimated based on the expected cash flows

discounted to present value.
Long-term payables Estimated based on present value of future

principal and interest cash flows, discounted at
the market rate of interest at the reporting date.


31 DECEMBER 2021
C16 Derivative financial instruments
Cash flow hedges
At 31 December 2021, the Group held the following instruments to hedge exposures to changes in foreign
currency and interest rates:
Between
Group Within 1 year 1 to 5 years
2021
Foreign currency risk

Nominal amount of forward exchange contracts (in thousands of SGD) 664,271 307,274
- Average EUR:USD forward contract rate 1.1663 1.1932
- Average USD:SGD forward contract rate 1.3626 1.3672
- Average EUR:SGD forward contract rate 1.5702 1.5851
Nominal amount of embedded derivatives (in thousands of SGD) 167,455 101,890
- Average EUR:SGD 1.5987 1.6080
- Average USD:SGD 1.3490 1.3923
- Average GBP:SGD 1.8394 1.8268
Interest rate risk

Nominal amount of interest rate swaps – 179,087
- Average fixed interest rate – 2.6722
Nominal amount of treasury lock 1,351,600 –
- Average fixed interest rate 1.6050 –
2020

Nominal amount of forward exchange contracts (in thousands of SGD) 184,081 154,582
- Average EUR:USD forward contract rate 1.1736 1.1615
- Average EUR:SGD forward contract rate 1.6083 1.6785
- Average THB:SGD forward contract rate 22.99 23.04
Nominal amount of embedded derivatives (in thousands of SGD) 138,189 92,928
- Average EUR:SGD 1.6191 1.6602
- Average USD:SGD 1.3717 1.3891
- Average GBP:SGD 1.8169 1.8289
Interest rate risk

Nominal amount of interest rate swaps – 191,719
- Average fixed interest rate – 2.6731


31 DECEMBER 2021
C16 Derivative financial instruments (continued)
Cash flow hedges (continued)
The amounts at the reporting date relating to items designated as hedged items are as follows:
Group Change in
value used for
calculating hedge Cash flow
ineffectiveness hedge reserve
$’000 $’000
2021
Sales (23,398) (4,155)
Receivables – (323)
Purchases 1,252 (1,327)
Payables (237) 228
Embedded derivatives (3,677) (5,313)
Interest rate risk

Variable rate borrowings 6,860 (14,675)
2020
Sales 16,834 21,088
Receivables (5) (335)
Purchases 9,797 2,417
Payables (89) 385
Embedded derivatives 11,520 (1,636)
Interest rate risk

Variable rate borrowings (19,136) (24,316)
There are no balances remaining in the cash flow hedge reserve from hedging relationships for which hedge
accounting is no longer applied.


31 DECEMBER 2021
The amounts relating to items designated as hedging instruments and hedge ineffectiveness are as follows:
Group 2021
Line item
in the statement
of financial
position where
Nominal the hedging
amount Assets Liabilities instrument
$’000 $’000 $’000 is included

Forward exchange contracts 971,545 4,951 (17,839) Derivative
financial
instruments,
advances and
other receivables
and trade
payables and
accruals
Embedded derivatives 269,334 – (5,186)
Interest rate risk

Interest rate swaps (a) 179,087 – (5,385) Derivative
financial
instruments
Treasury lock 1,351,600 4,774 (4,558)
(a)
The contractual notional amount of interest rate swaps held for hedging which is based on LIBOR is $179,087,000 (2020: $191,719,000).

During the year 2021
Changes in
the value of
the hedging Hedge Line item in Amount from Amount Line item in
instrument ineffectiveness profit or loss that hedging reserve reclassified from profit or loss
recognised recognised includes hedge transferred to hedging reserve affected by the
in OCI in profit or loss ineffectiveness cost of inventory to profit or loss reclassification
$’000 $’000 $’000 $’000
(22,383) 2 Finance costs, (2,389) (4,360) Revenue /

net Cost of sales /
Operating
expenses /
Finance
costs, net
(3,677) – – – – –
6,644 – – – – –
216 – – – – –


31 DECEMBER 2021
The amounts relating to items designated as hedging instruments and hedge ineffectiveness are as follows: (continued)
Group 2020
Line item
in the statement
of financial
position where
Nominal the hedging
amount Assets Liabilities instrument
$’000 $’000 $’000 is included

Forward exchange contracts 338,664 29,915 (492) Derivative
financial
instruments,
advances and
other receivables
and trade
payables and
accruals
Embedded derivatives 231,117 851 (3,645)
Interest rate risk

Interest rate swaps 191,719 – (12,222) Derivative
financial
instruments

During the year 2020
Changes in
the value of
the hedging Hedge Line item in Amount from Amount Line item in
instrument ineffectiveness profit or loss that hedging reserve reclassified from profit or loss
recognised recognised includes hedge transferred to hedging reserve affected by the
in OCI in profit or loss ineffectiveness cost of inventory to profit or loss reclassification
$’000 $’000 $’000 $’000
26,537 3 Cost of sales / (1,890) 13,814 Revenue /

Finance costs, Cost of sales /
net Operating
expenses /
Finance costs,
net
11,520 – – – – –
(4,808) – – – (20) –


31 DECEMBER 2021
The following table provides a reconciliation by risk category of components of equity and analysis of OCI items,
net of tax, resulting from cash flow hedge accounting:
Group Hedging reserve
2021 2020
$’000 $’000
Balance at 1 January (7,572) (32,950)
Change in fair value:

Foreign currency risk (26,060) 38,057
Interest rate risk 6,860 (19,136)
Equity accounted joint ventures 2,145 763
Amount reclassified to profit or loss:

Foreign currency risk (4,360) 15,635
Interest rate risk 2,781 –
Amount included in the cost of non-financial items:

Foreign currency risk – inventory purchases (2,389) (1,890)
Tax movements on reserves during the year 6,353 (8,051)
Balance at 31 December (22,242) (7,572)
Derivative financial instruments and hedge accounting
The derivative financial instruments are initially recognised at fair value on the date of which a derivative
contract is entered into. Attributable transaction costs are recognised in profit or loss as incurred. Subsequent
to initial recognition, derivative financial instruments are remeasured at their fair values.
Any gains or losses arising from changes in the fair value of derivatives that do not qualify for hedge accounting
are taken directly to the profit or loss.
Designation of hedges
At inception or upon reassessment of the hedge arrangement, the Group documents the relationship between
hedging instrument and hedged item, and the methods that will be used to measure the effectiveness of
the hedged relationship, as well as risk management policies and strategies in undertaking various hedged
transactions.
The Group also documents its assessment, both at inception and on an ongoing basis, the economic
relationship between hedging instruments and hedged item, including whether derivatives designated as
hedging instruments are highly effective in offsetting changes in fair values or cash flows of the hedged item.


31 DECEMBER 2021
Derivative financial instruments and hedge accounting (continued)
Category Subsequent measurement
(1) Cash flow When a derivative is designated in a cash flow hedge, the effective portion of changes
hedges in the fair value of the derivative is recognised in other comprehensive income limited
to the cumulative change in the fair value of the hedged item and presented in the fair
value reserve. Any ineffective portion of changes in the fair value of the derivative (i.e.
the extent to which changes in the fair value of the hedge instrument do not match the
changes in fair value of the hedged item) is recognised immediately in profit or loss.
The amount accumulated in equity is retained in other comprehensive income, and

depending on the nature of the hedged item, will either be transferred to the profit or loss
in the same period that the underlying transaction affects profit or loss or be capitalised
in the initial carrying amount of the non-financial item.
If the hedging instrument no longer meets the criteria for hedge accounting, expires or
is sold, terminated or exercised, hedge accounting is discontinued prospectively. The
cumulative gain or loss previously recognised in the fair value reserve remains there
until the forecast transaction occurs. If the forecast transaction is no longer expected to
occur, then the amount accumulated in equity is reclassified to profit or loss.
(2) Fair value Changes in the fair value of derivative financial instruments that are designated and
hedges qualify as fair value hedges are recorded in profit or loss, together with any changes in
the fair value of the hedged asset or liability that are attributable to the hedged risk.
(3) Net The Group designates certain derivatives and non-derivative financial liabilities as
investment hedges of foreign exchange risk on a net investment in a foreign operation.
hedges
When a derivative instrument or a non-derivative financial liability is designated as the
hedging instrument in a hedge of a net investment in a foreign operation, the effective
portion of, for a derivative, changes in the fair value of the hedging instrument or, for a
non-derivative, foreign exchange gains and losses is recognised in OCI and presented
in the translation reserve within equity. Any ineffective portion of the changes in the fair
value of the derivative or foreign exchange gains and losses on the non-derivative is
recognised immediately in profit or loss. The amount recognised in OCI is reclassified to
profit or loss as a reclassification adjustment on disposal of the foreign operation.
Estimates and judgement: Interest rate benchmark reform
Following the global financial crisis, the reform and replacement of benchmark interest rates such as USD
LIBOR and other inter-bank offered rates (IBORs) has become a priority for global regulators.
To transition existing contracts and agreements that reference LIBOR to Secured Overnight Financing Rate
(SOFR), adjustments for term differences and credit differences might need to be applied to SOFR, to enable
the two benchmark rates to be economically equivalent on transition.


31 DECEMBER 2021
Derivative financial instruments and hedge accounting (continued)
Estimates and judgement: Interest rate benchmark reform (continued)
The Group’s treasury function is managing the Group’s LIBOR transition plan. The greatest change will be
amendments to the contractual terms of the LIBOR-referenced interest rate swap and the corresponding
update of the hedge designation.
Relief applied
The Group has applied the following Phase 1 reliefs that were introduced by the amendments made to SFRS(I)
9 Financial Instruments:
• When considering the ‘highly probable’ requirement, the Group has assumed that the variable interest
rate on which the Group’s hedged debt is based does not change as a result of IBOR reform;
• In assessing whether the hedge is expected to be highly effective on a forward-looking basis, the Group
has assumed that the variable interest rate on which the cash flows of the hedged debt and the interest
rate swap that hedges it are based is not altered by the IBOR reform; and
• The Group has not recycled the cash flow hedge reserve relating to the period after the reforms are
expected to take effect.
Assumptions made
In calculating the change in fair value attributable to the hedged risk of floating-rate debt, the Group has made
the following assumptions that no changes to the terms of the floating rate debt are anticipated to reflect its
current expectations.


31 DECEMBER 2021
D. EMPLOYEE BENEFITS
The Group uses the following programs to reward and recognise employees and key executives, including key
management personnel.
• Economic Value Added (EVA)-based Incentive Scheme

• Defined contribution plans
• Post-employment benefits
• Share plans
The Group believes that these programs reinforce the value of ownership and incentivise and drive performance
both individually and collectively to maximise returns to the shareholders.
D1 Economic Value Added (EVA)-based D3 Post-employment benefits

Incentive Scheme
D2 Personnel expenses D4 Share-based payment arrangements
D1 Economic Value Added (EVA)-based Incentive Scheme
The Group adopts an incentive compensation plan, which is tied to the creation of EVA, as well as attainment
of individual and Group performance goals for its key executives. An EVA bank is used to hold incentive
compensation credited in any year.
Typically a portion of EVA-based bonus declared in the financial year is paid out in cash each year, with the
balance being deferred for payment in the following years.
Estimates and judgement: EVA-based Incentive Scheme (EBIS)
Estimates of the Group’s obligations arising from the EBIS at the reporting date may be affected by future
events, which cannot be predicted with any certainty. The assumptions and estimates are made based on
management’s knowledge and experience and may vary from actual experience so that the actual liability may
vary considerably from the best estimates. Negative EVA will result in a clawback of EVA bonus accumulated
in previous years.


31 DECEMBER 2021
D2 Personnel expenses
Group 2021 2020

$’000 $’000
Wages and salaries* 1,670,620 1,464,167

Contributions to defined contribution plans 178,287 169,561
Defined benefit plan expenses 34,836 37,791
Share-based payments 21,122 21,226
Other personnel expenses 231,700 261,563
2,136,565 1,954,308
* $204,698,000 (2020: $353,233,000) of COVID-19 related government grants were recognised during the year, including amount received
under the Jobs Support Scheme and various government grants received by the Group’s subsidiaries in the countries they operate in.
These amounts were deducted in wages and salaries.
(i) Short-term employee benefits
Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as
the related service is provided.
(ii) Defined contribution plans
Defined contribution plans are post-employment benefit plans under which the Group pays fixed
contributions into separate entities such as the Central Provident Fund and will have no legal or
constructive obligation to pay further amounts. The Group’s contributions to the defined contribution
plans are recognised in the income statement as expenses in the financial year to which they relate.
D3 Post-employment benefits
Group 2021 2020

$’000 $’000
Net defined benefit asset 257 319

Total post-employment benefit asset 257 319
Net defined benefit liabilities 407,320 460,724

Liability for staff benefits 9,793 9,820
Total post-employment benefit liabilities 417,113 470,544
Non-current 409,473 462,548

Current 7,640 7,996
417,113 470,544


31 DECEMBER 2021
D3 Post-employment benefits (continued)
Movement in net defined benefit liability/(asset)
The following table shows a reconciliation from the opening balances to the closing balances for net defined
benefit liability/(asset) and its components.
Group Defined benefit Fair value of Net defined benefit

obligation plan assets liability/(asset)
2021 2020 2021 2020 2021 2020

$’000 $’000 $’000 $’000 $’000 $’000
Balance at 1 January 822,428 714,844 (362,023) (336,857) 460,405 377,987

Included in profit or loss
Current service cost 25,555 21,321 – – 25,555 21,321
Past service credit – 5,241 – – – 5,241
Interest cost/(income) 17,014 19,906 (8,978) (10,639) 8,036 9,267
Administrative expenses 293 634 952 1,328 1,245 1,962
42,862 47,102 (8,026) (9,311) 34,836 37,791
Included in OCI
Remeasurement loss/(gain):
• Actuarial loss/(gain)
arising from:
- demographic assumptions 1,952 (2,022) – – 1,952 (2,022)
- financial assumptions (37,795) 75,028 (68) 478 (37,863) 75,506
- experience assumptions 11,925 1,565 (241) 72 11,684 1,637
• Return on plan assets
excluding interest income – – (33,641) (10,210) (33,641) (10,210)
Effect of movements in
exchange rates 51 – – – 51 –
(23,867) 74,571 (33,950) (9,660) (57,817) 64,911
Others
Contributions paid by
the employer (16,810) (570) (14,900) (26,954) (31,710) (27,524)
Benefits paid (8,772) (21,322) 16,973 20,651 8,201 (671)
Translation difference (861) 7,803 (5,991) 108 (6,852) 7,911
Balance at 31 December 814,980 822,428 (407,917) (362,023) 407,063 460,405
The expenses are recognised in the following line items in profit or loss:
Group 2021 2020

$’000 $’000
Cost of sales 24,185 25,865

Administrative expenses 3,987 4,571
Other operating expenses 77 83
Finance cost, net 6,587 7,272
Defined benefit obligation expenses 34,836 37,791


31 DECEMBER 2021
The fair value of plan assets in each category are as follows:
Group 2021 2020

$’000 $’000
Equity securities 133,996 140,777

Government bonds 27,266 31,268
Corporate bonds 167,614 122,547
Derivatives 355 778
Cash/money markets 4,979 6,873
Property occupied by the Group 48,516 34,991
Funds managed by a trustee 2,514 2,216
Funds with insurance companies 22,677 22,573
Fair value of plan assets 407,917 362,023
All equity securities and government bonds have quoted prices in active markets. All government bonds have an
average rating of A+.
In the case of the funded plans, the Group ensures that the investment positions are managed within an asset-
liability matching (ALM) framework that has been developed to achieve long-term investments that are in line
with the obligations under the pension schemes. Within this framework, the Group’s ALM objective is to match
assets to the pension obligations by investing in long-term fixed interest securities with maturities that match the
benefit payments as they fall due and in the appropriate currency.
Defined benefit obligation
(a) Actuarial assumptions
The following relates to the actuarial assumptions of significant post-employment defined benefit plans
for subsidiaries in Germany and United States of America. The remaining defined benefit plans are not
material to the Group and additional disclosures are not shown at the reporting date.
The following were the principal actuarial assumptions at the reporting date (expressed as weighted
averages):
Group 2021 2020

% %
Discount rate 2.0 1.7

Future salary growth 3.2 3.2
Future pension growth 2.0 2.0


31 DECEMBER 2021
Defined benefit obligation (continued)
(a) Actuarial assumptions (continued)
Assumptions regarding future mortality have been based on published statistics and mortality tables.
The current longevities underlying the values of the defined benefit obligation at the reporting date were
as follows:
Group 2021 2020

Germany U.S. Germany U.S.
Longevity at age 65 for current pensioners:

Males 20.5 20.0 20.3 19.4
Females 23.9 22.1 23.8 21.4
Longevity at age 65 for current members

aged 45:
Males 23.2 21.5 23.1 19.9
Females 26.1 23.5 26.0 22.1
At 31 December 2021, the weighted average duration of the defined benefit obligation was 24.4 years
(2020: 25.4 years) for the subsidiaries in Germany and 13.9 years (2020: 14.6 years) for the subsidiary
in United States of America.
(b) Sensitivity analysis
Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding
other assumptions constant, would have affected the defined benefit obligation by the amounts
shown below.
Group 2021 2020

Increase Decrease Increase Decrease
$’000 $’000 $’000 $’000
Discount rate (0.5% movement) (57,121) 70,520 (64,249) 72,501

Future salary growth (0.25% movement) 1,851 (1,621) 2,328 (2,111)
Future pension growth (0.25% movement) 2,283 (2,184) 2,632 (2,512)
Future mortality (10% movement) (19,921) 24,401 (19,040) 26,264


31 DECEMBER 2021
(b) Sensitivity analysis (continued)
A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The Group’s
net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the
amount of future benefit that employees have earned in return for their service in the current and prior periods;
that benefit is discounted to determine its present value.
The fair value of any plan assets is deducted. The Group determines the net interest expense/(income) on the
net defined benefit liability/(asset) for the period by applying the discount rate used to measure the defined
benefit obligation at the beginning of the annual period to the net defined benefit liability/(asset).
D4 Share-based payment arrangements
PSP2010 and PSP2020 (PSP)
The PSP is established with the objective of motivating Senior Management Executive to strive for sustained
long-term growth and performance in ST Engineering and its subsidiaries (ST Engineering Group or the Group).
Awards of performance shares are granted conditional on performance targets set based on the ST Engineering
Group corporate objectives.
The performance measures used in PSP grants are Absolute Total Shareholder Return (TSR) taking reference
to the Group's Cost of Equity and Earnings Per Share (EPS) Growth against pre-determined targets. In addition
to the PSP performance targets being met, final award for PSP is conditional upon satisfactory performance
of the recipient.
RSP2010 and RSP2020 (RSP)
The RSP is established with the objective of motivating managers and above to strive for sustained long-term
growth of ST Engineering Group. It also aims to foster a share ownership culture among employees within the
ST Engineering Group and to better align employees’ incentive scheme with shareholders’ interest.
A minimum threshold performance is required for any shares to be released to the recipients at the end of the
performance period. The shares will vest equally over a four-year performance period, subject to continued
employment with the Group and maintaining a satisfactory performance rating for the financial year preceding
each tranche of vesting.
Movement in the number of shares under the PSP and RSP are as follows:
Group 2021 2020

PSP RSP PSP RSP
Outstanding awards
Balance at 1 January 5,546,244 13,262,039 4,896,009 13,308,887
Granted 935,496 6,918,603 3,458,270 6,705,899
Lapsed (645,280) (915,380) (430,932) (790,203)
Released (697,113) (5,940,548) (2,377,103) (5,962,544)
Balance at 31 December 5,139,347 13,324,714 5,546,244 13,262,039
These shares were awarded by reissuance of treasury shares.


31 DECEMBER 2021
D4 Share-based payment arrangements (continued)
Singapore Technologies Engineering Performance Share Plan (PSP) and Singapore Technologies Engineering
Restricted Share Plan (RSP)
PSP RSP
Year of grant Year of grant
Group
2021 2020 2021 2020
Volatility of the Company’s shares (%) 22.78 26.87 15.14 – 26.67 26.87
Risk-free rate (%) 0.72 1.13 0.47 – 0.83 0.99 – 1.21
Share price ($) 3.86 2.80 3.86 2.80
Cost of equity (%) 7.7 7.2 N.A. N.A.
Dividend yield (--Management’s forecast (--Management’s forecast
in line with dividend policy--) in line with dividend policy--)
The fair value of the performance and restricted shares is determined on grant date using the Monte Carlo
simulation model.
During the current year, the Group met partially the pre-determined target performance level and hence,
697,113 performance shares were awarded in respect of the grant made in 2018 under PSP2010. In the prior
year, 2,377,103 performance shares were awarded in respect of the grant made in 2017 under PSP2010.
The Group operates a number of share-based payment plans. A description of each type of share-based
payment arrangement that existed at any time during the period is described in the Directors’ Statement.
The grant date fair value of share-based payment awards granted to employees is recognised as an employee
expense, with a corresponding increase in equity, over the period that the employees unconditionally become
entitled to the awards.
The amount recognised as an expense is adjusted to reflect the number of awards for which the related service
and non-market vesting conditions are expected to be met, such that the amount ultimately recognised as
an expense is based on the number of awards that meet the related service and non-market performance
conditions at the vesting date.


31 DECEMBER 2021
E. CAPITAL STRUCTURE AND FINANCING
This section provides information relating to the Group’s capital structure and how they affect the Group’s financial
position and performance, and how the risks are managed.
The primary objective of the Group’s capital management is to ensure that it maintains a strong credit rating and
healthy financial metrics in order to support its business and maximise shareholder value. Capital consists of total
shareholders’ funds and gross debts.
The Group manages its capital structure and makes adjustment to it, in light of changes in economic and financial
market conditions. The Group may adjust the dividend payout to shareholders, buy back or issue new shares to
optimise capital structure within the Group.
E1 Capital management E6 Share capital
E2 Finance costs, net E7 Treasury shares
E3 Investments E8 Capital reserves
E4 Borrowings E9 Other reserves
E5 Commitments and contingent liabilities E10 Dividends
E1 Capital management
The Group is currently in a net debt position and will continue to be guided by prudent financial policies of which
gearing is an important aspect. Neither the Company nor any of its subsidiaries is subject to externally imposed
capital requirements.
Group 2021 2020

$’000 $’000
Gross debt
Bank loans 206,766 115,525
Commercial papers 350,869 396,230
Medium term notes 1,010,704 987,841
Lease liabilities 546,881 527,734
Other loans – 19,565
2,115,220 2,046,895


31 DECEMBER 2021
E1 Capital management (continued)
Group 2021 2020

$’000 $’000
Shareholders’ funds
Share capital 895,926 895,926
Treasury shares (33,475) (23,743)
Capital and other reserves 2,003 18,017
Retained earnings 1,548,308 1,402,414
2,412,762 2,292,614
Non-controlling interests 255,453 282,175
2,668,215 2,574,789
Gross debt/equity ratio 0.8 0.8
Gross debt 2,115,220 2,046,895

Less: Cash and cash equivalents (815,924) (729,479)
Net debt* 1,299,296 1,317,416
* Net debt refers to gross debt less cash and cash equivalents
E2 Finance costs, net
Group 2021 2020

$’000 $’000
Finance income
Interest income
- bank deposits 1,024 3,003
- staff loans 4 6
- finance lease 451 617
- others 2,457 2,117
Exchange gain, net 4,388 –
Fair value changes of financial instruments
- gain on forward currency contract designated as hedging instrument 2,861 103
- gain on fair value changes of forward currency contract not designated as
hedging instrument 501 863
- gain on ineffective portion of forward currency contract designated as
hedging instrument in cash flow hedges – 45
Fair value changes of hedged items – 2,520
11,686 9,274


31 DECEMBER 2021
E2 Finance costs, net (continued)
Group 2021 2020

$’000 $’000
Finance costs
Interest expense
- bank loans and overdrafts (6,584) (7,974)
- medium term notes and commercial papers (18,669) (21,549)
- lease liabilities (15,752) (16,458)
- contracts with customers (1,190) (1,480)
- others (2,853) (2,122)
Exchange loss, net – (19,441)
Net change in fair value of cash flow hedges reclassified from equity on
occurrence of forecast transactions – (1,306)
Fair value changes of financial instruments
- loss on forward currency contract designated as hedging instrument – (892)
- loss on ineffective portion of forward currency contract designated as
hedging instrument in cash flow hedges (2) –
Fair value changes of hedged items (2,675) –
(47,725) (71,222)
Finance costs, net, recognised in profit or loss (36,039) (61,948)
Finance income comprises interest income, dividend income, gains on disposal and fair valuation of financial
assets and gains on hedging instruments that are recognised in profit or loss. Interest income is recognised as
it accrues in profit or loss, using the effective interest method. Dividend income is recognised in profit or loss
when the shareholder’s right to receive payment is established.
Finance costs comprise interest expense, losses on disposal and fair valuation of financial assets, and losses
on hedging instruments that are recognised in profit or loss. Interest expense that are not directly attributable
to the acquisition, construction or production of a qualifying asset are recognised in profit or loss using the
effective interest method.
Foreign currency gains and losses on financial assets and liabilities are reported on a net basis as either
finance income or finance cost.


31 DECEMBER 2021
E3 Investments
Group 2021 2020

$’000 $’000
Equity shares, at FVOCI

- unquoted 36,129 23,138
Total investments, net of impairment losses 36,129 23,138
Represented by:
Long-term investments 36,129 23,138
36,129 23,138
E4 Borrowings
Group Note Non-current Current Total

$’000 $’000 $’000
31 December 2021
Bank loans (a) 64,165 142,601 206,766
Commercial papers (b) – 350,869 350,869
Medium term notes (c) 1,010,704 – 1,010,704
Lease liabilities (d) 480,465 66,416 546,881
1,555,334 559,886 2,115,220
31 December 2020
Bank loans (a) 101,865 13,660 115,525
Commercial papers (b) – 396,230 396,230
Medium term notes (c) 987,841 – 987,841
Lease liabilities (d) 460,854 66,880 527,734
Other loans (e) – 19,565 19,565
1,550,560 496,335 2,046,895
(a) Bank loans
Effective
Currency interest rate Maturity Group
2021 2020 2021 2020 2021 2020

% % $’000 $’000
Bank loans USD 1.0 – 5.0 1.0 – 5.0 2022 –2023 2023 143,422 12,897
EUR 1.4 – 1.6 0.5 – 1.6 2026 –2029 2026 –2029 63,344 102,628
206,766 115,525
- Unsecured 162,643 62,811

- Secured 44,123 52,714
At the end
of the year 206,766 115,525


31 DECEMBER 2021
E4 Borrowings (continued)
(a) Bank loans (continued)
There are bank loans which are secured by assets as follows:
Secured by Loan amount ($)
Certain property, plant and equipment of subsidiaries - $28,738,000 (2020: $35,043,000)

Subsidiary’s land use right - $15,385,000 (2020: $17,671,000)
All bank loans are denominated in the respective entities’ functional currency.
(b) Commercial papers
Group 2021 2020

$’000 $’000
Principal 351,416 396,660

Unamortised interest (463) (233)
Unamortised costs (84) (197)
350,869 396,230
(c) Medium term notes
Group 2021 2020

$’000 $’000
Principal 1,013,700 991,650

Unamortised discount (2,996) (3,809)
1,010,704 987,841
Unamortised discount:
At beginning of the year 3,809 –
Additions – 4,406
Amortisation for the year (892) (621)
Translation difference 79 24
At the end of the year 2,996 3,809
On 29 April 2020, the Group issued US$750 million 1.50% Notes due 2025 under its
S$5.0 billion Multicurrency Medium Term Note Programme. The bonds bore interest at a fixed rate of
1.50% per annum and interest was payable every six months from the date of issue. The bonds were
unconditionally and irrevocably guaranteed by the Company.


31 DECEMBER 2021
(d) Lease liabilities
The Group leases various assets including real estate leases, vehicles, machinery and IT equipment.
Information about leases for which the Group is a lessee is presented below.
Group 2021 2020

$’000 $’000
Maturity analysis – contractual undiscounted cash flows

Within 1 year 69,088 71,307
Between 1 and 5 years 205,184 208,666
After 5 years 427,999 416,304
Total undiscounted lease liabilities at 31 December 702,271 696,277
Lease liabilities included in the statement of financial position

at 31 December 546,881 527,734
Repayable:
Within 1 year 66,416 66,880
After 1 year 480,465 460,854
546,881 527,734
The total cash outflow for leases recognised in the statement of cash flows is $89,141,000 (2020:
$77,592,000).
(i) Real estate leases
The Group leases land and buildings for its office space, hangar and production facilities. The
leases run for a period of 5 to 30 years. Some leases include an option to renew the lease for an
additional period of the same duration after the end of the contract term.
Some leases provide for additional rent payments that are based on changes in local price
indices. Some also require the Group to make payments that relate to the property taxes levied on
the lessor and insurance payments made by the lessor; these amounts are generally determined
annually.
The Group sub-leases some of its properties under operating and finance leases.


31 DECEMBER 2021
(d) Lease liabilities (continued)
(i) Real estate leases (continued)
Extension options
Some leases of office buildings contain extension options exercisable by the Group up to the day
before the end of the non-cancellable contract period. Where practicable, the Group seeks to
include extension options in new leases to provide operational flexibility. The extension options
held are exercisable only by the Group and not by the lessors. The Group assesses at lease
commencement whether it is reasonably certain to exercise the extension options. The Group
reassesses whether it is reasonably certain to exercise the options if there is a significant event or
significant change in circumstances within its control.
Estimates and judgement: Extension options – Lease terms
Extension option is included in the lease term if the lease is reasonably certain to be extended. In
determining the lease term, management considers all facts and circumstances that create an
economic incentive to exercise the extension option. The leases for office buildings contain extension
periods, for which the related lease payments had not been included in lease liabilities as the
Group is not reasonably certain to exercise these extension options. The Group negotiates extension
options to optimise operational flexibility in terms of managing the assets used in the Group’s
operations. The majority of the extension options are exercisable by the Group and not by the lessor.
Potential future
lease payments
Lease liabilities not included in
2021 recognised lease liabilities
Group (discounted) (discounted)
$’000 $’000
Office buildings 18,414 23,069
Potential future
lease payments
Lease liabilities not included in
2020 recognised lease liabilities
Group (discounted) (discounted)
$’000 $’000
Office buildings 40,092 102,713
(ii) Other leases
The Group leases vehicles and equipment, with lease terms of three to five years. In some cases,
the Group has options to purchase the assets at the end of the contract term.
The Group monitors the use of these vehicles and equipment, and reassesses the estimated
amount payable under the residual value guarantees at the reporting date to remeasure lease
liabilities and right-of-use assets.
The Group also leases IT equipment and machinery. These leases are short-term and/or leases of
low-value items. The Group has elected not to recognise right-of-use assets and lease liabilities
for these leases.


31 DECEMBER 2021
(e) Other loans
In the prior year, included in the other loans was a USD denominated promissory note of $19,565,000
favouring the U.S. Department of the Treasury issued by a U.S. entity of the Group related to a Payroll
Support Program agreement under the Coronavirus, Aid, Relief, and Economic Security (CARES) Act.
The promissory note had a 10 years’ maturity with no prepayment penalties, was unsecured and bears
an effective interest at 4% per annum. The other loan was repaid during the year.
Reconciliation of movements of liabilities and assets to cash flows arising from financing activities
Group Liabilities Assets
Trade Amounts
payables due to
and related Deposits
Borrowings accruals parties pledged Total
$’000 $’000 $’000 $’000 $’000
Balance at 1 January 2021 2,046,895 2,237,361 23,833 (1,145) 4,306,944
Changes from financing cash flows

Proceeds from bank loans 132,027 – – – 132,027
Proceeds from commercial papers 756,896 – – – 756,896
Proceeds from other loans 10,933 – – – 10,933
Repayment of bank loans (35,103) – – – (35,103)
Repayment of commercial papers (810,960) – – – (810,960)
Repayment of other loans (30,933) – – – (30,933)
Repayment of lease liabilities (73,456) – – – (73,456)
Interest paid (16,212) (17,432) – – (33,644)
Deposit discharged – – – 1,145 1,145
Total changes from financing
cash flows (66,808) (17,432) – 1,145 (83,095)
Changes arising from obtaining or
losing control of subsidiaries – 369 – – 369
The effect of changes in foreign
exchange rates 25,419 14,254 – – 39,673
Change in fair value (9,425) – – – (9,425)
Liability-related other changes
Working capital changes (728) 423,936 3,948 – 427,156
New leases 92,328 – – – 92,328
Interest expense 27,539 17,509 – – 45,048
Total liability-related other changes 119,139 441,445 3,948 – 564,532
Balance at 31 December 2021 2,115,220 2,675,997 27,781 – 4,818,998


31 DECEMBER 2021
Group Liabilities Assets
Trade Amounts
payables due to
and related Deposits
Borrowings accruals parties pledged Total
$’000 $’000 $’000 $’000 $’000
Balance at 1 January 2020 2,337,707 2,541,348 70,007 (1,135) 4,947,927
Changes from financing

cash flows
Proceeds from bank loans 370,131 – – – 370,131
Proceeds from
MTN issuance 1,058,400 – – – 1,058,400
Proceeds from
commercial papers 524,092 – – – 524,092
Proceeds from other loans 19,565 – – – 19,565
Repayment of
commercial papers (1,570,209) – – – (1,570,209)
Repayment of bank loans (743,080) – – – (743,080)
Repayment of
lease liabilities (61,271) – – – (61,271)
Interest paid (45,401) (10,499) – – (55,900)
Deposits pledged – – – (10) (10)
Total changes from
financing cash flows (447,773) (10,499) – (10) (458,282)
The effect of changes in
foreign exchange rates (51,621) (1,989) – – (53,610)
Change in fair value 14,328 – – – 14,328
Liability-related
other changes
Working capital changes – (302,946) (46,314) – (349,260)
Other movements 28,045 – – – 28,045
New leases 128,213 – – – 128,213
Interest expense 37,996 11,447 140 – 49,583
Total liability-related
other changes 194,254 (291,499) (46,174) – (143,419)
Balance at
31 December 2020 2,046,895 2,237,361 23,833 (1,145) 4,306,944


31 DECEMBER 2021
E5 Commitments and contingent liabilities
(i) Capital commitments
Group 2021 2020

$’000 $’000
Capital expenditure contracted but not provided in the

financial statements 95,336 54,455
(ii) Leases – As lessee
As at 31 December 2021, the Group had certain non-cancellable future minimum lease payments
for short-term leases or leases for low-value assets amounting to $5,817,000 (31 December 2020:
$2,618,000).
(iii) Leases – As lessor
The Group has entered into non-cancellable operating leases on its aircraft, aircraft engines and certain
property, plant and equipment. The lease terms range from 1 to 12 years.
The following table sets out a maturity analysis of lease payments, showing the undiscounted lease
payments to be received after the reporting date.
Group 2021 2020

$’000 $’000
Less than 1 year 8,530 9,012

1 to 2 years 7,459 4,651
2 to 3 years 4,971 3,589
3 to 4 years 4,661 3,565
4 to 5 years 3,586 1,147
More than 5 years 3,021 848
Total undiscounted lease payments 32,228 22,812
(iv) Contingent liabilities (unsecured)
The Group is a party to various claims that arise in the normal course of the Group’s business. The total
liability on these matters cannot be determined with certainty. However, in the opinion of management,
the ultimate liability, to the extent not otherwise provided for, will not materially impact the consolidated
financial statements of the Group.


31 DECEMBER 2021
E5 Commitments and contingent liabilities (continued)
As a lessee
At the inception of the contract, the Group assesses if the contract contains a lease. A contract contains a
lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange
for consideration. Reassessment is only required when the terms and conditions of the contract are changed.
The Group recognised a right-of-use asset and lease liability at the date which the underlying asset is available
for use. Right-of-use assets are measured at cost which comprises the initial measurement of lease liabilities
adjusted for any lease payments made at or before the commencement date and lease incentive received.
Any initial direct costs that would not have been incurred if the lease had not been obtained are added to the
carrying amount of the right-of-use assets.
These right-of-use assets are subsequently depreciated using the straight-line method from the
commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease
term.
Right-of-use assets (except for those which meet the definition of an investment property) are presented in
Note C2.
The lease liability is initially measured at the present value of the lease payments discounted using the implicit
rate in the lease, if the rate can be readily determined. If that rate cannot be readily determined, the Group shall
use its incremental borrowing rate.
Lease payments include the following:
- Fixed payment (including in-substance fixed payments), less any lease incentives receivables;
- Variable lease payment that are based on an index or rate, initially measured using the index or rate as
at the commencement date;
- Amount expected to be payable under residual value guarantees
- The exercise price of a purchase option if is reasonably certain to exercise the option; and
- Payment of penalties for terminating the lease, if the lease term reflects the Group exercising that
option.
For contracts that contain both lease and non-lease components, the Group allocates the consideration to
each lease component on the basis of the relative stand-alone price of the lease and non-lease component.
The Group has elected to not separate lease and non-lease component for property leases and account these
as one single lease component.


31 DECEMBER 2021
As a lessee (continued)
Lease liability is measured at amortised cost using the effective interest method. Lease liability shall be
remeasured when:
- There is a change in future lease payments arising from changes in an index or rate;
- There is a change in the Group’s assessment of whether it will exercise an extension option; or
- There is modification in the scope or the consideration of the lease that was not part of the original term.
Lease liability is remeasured with a corresponding adjustment to the right-of-use asset or is recorded in profit
or loss if the carrying amount of the right-of-use asset has been reduced to zero.
Short term and low value leases
The Group has elected to not recognise right-of-use assets and lease liabilities for short-term leases that have
lease terms of 12 months or less and leases of low value leases, except for sublease arrangements. Lease
payments relating to these leases are expensed to profit or loss on a straight-line basis over the lease term.
As a lessor
The Group leases equipment under finance leases and office spaces under operating leases to non-related
parties.
Finance leases are leases where the Group has transferred substantially all risks and rewards incidental to
ownership of the leased assets to the lessees, are classified as finance leases.
The leased asset is derecognised and the present value of the lease receivable is recognised on the statement
of financial position and included in “Trade and other receivables”. The difference between the gross receivable
and the present value of the lease receivable is recognised as unearned finance income.
Each lease payment received is applied against the gross investment in the finance lease receivable to reduce
both the principal and the unearned finance income. The finance income is recognised in profit or loss on a
basis that reflects a constant periodic rate of return on the net investment in the finance lease receivable.
Initial direct costs incurred by the Group in negotiating and arranging finance leases are added to finance
lease receivables and reduce the amount of income recognised over the lease term.
Operating leases are leases where the Group retains substantially all risks and rewards incidental to ownership
are classified as operating leases. Rental income from operating leases (net of any incentives given to the
lessees) is recognised in profit or loss on a straight-line basis over the lease term.


31 DECEMBER 2021
As a lessor (continued)
Initial direct costs incurred by the Group in negotiating and arranging operating leases are added to the carrying
amount of the leased assets and recognised as an expense in profit or loss over the lease term on the same
basis as the lease income.
Contingent rents are recognised as income in profit or loss when earned.
In classifying a sublease, the Group as an intermediate lessor classifies the sublease as a finance or an
operating lease with reference to the right-of-use asset arising from the head lease, rather than the underlying
asset.
When the sublease is assessed as a finance lease, the Group derecognises the right-of-use asset relating to
the head lease that it transfers to the sublessee and recognises the net investment in the sublease within “Trade
and other receivables”. Any difference between the right-of-use asset derecognised and the net investment in
sublease is recognised in profit or loss. Lease liability relating to the head lease is retained in the statement of
financial position, which represents the lease payments owed to the head lessor.
When the sublease is assessed as an operating lease, the Group recognises lease income from sublease in
profit or loss within “Other income”. The right-of-use asset relating to the head lease is not derecognised.
For contract which contains lease and non-lease components, the Group allocates the consideration based
on a relative stand-alone selling price basis.
E6 Share capital
Company 2021 2020

$’000 $’000
Issued and fully paid, with no par value

At beginning and end of the year 3,122,495,197 ordinary shares 895,926 895,926
Included in share capital is a special share issued to the Minister for Finance. The special share enjoys all the
rights attached to the ordinary shares. In addition, the special share carries the right to approve any resolution to
be passed by the Company, either in general meeting or by its Board of Directors, on certain matters specified
in the Company’s Constitution. The special share may be converted at any time into an ordinary share.
The holders of ordinary shares are entitled to receive dividends as and when declared by the Company. All
ordinary shares carry one vote per share without restriction.
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares
are recognised as a deduction from equity, net of any tax effects.


31 DECEMBER 2021
E7 Treasury shares
Company 2021 2020

$’000 $’000
At beginning of the year (23,743) (26,731)

Purchased during the year (32,894) (29,154)
Reissue of treasury shares pursuant to share plans 23,162 32,142
At end of the year (33,475) (23,743)
Treasury shares relate to ordinary shares of the Company that are held by the Company.
During the year, the Company purchased 8,500,000 (2020: 8,550,000) of its ordinary shares by way of on-
market purchases. The shares, held as treasury shares, were included as deduction against shareholders’ equity.
6,637,661 (2020: 8,339,647) treasury shares, at a cost of $23,162,000 (2020: $32,142,000), were reissued
pursuant to its RSP and PSP.
When ordinary shares are reacquired by the Company, the consideration paid is recognised as a deduction
from equity. Reacquired shares are classified as treasury shares. When treasury shares are sold, or re-issued
subsequently, the cost of treasury shares is reversed from treasury shares account and the realised gain or loss
on transaction is presented as a change in equity of the Company. No gain or loss is recognised in profit or loss.
Treasury shares have no voting rights and no dividends are allocated to them.
E8 Capital reserves
Included in capital reserves are:
(a) an amount of $115,948,000 (2020: $115,948,000) relating to share premium of the respective pooled
enterprises, namely ST Engineering Aerospace Ltd., ST Engineering Electronics Ltd., ST Engineering Land
Systems Ltd. and ST Engineering Marine Ltd. classified as capital reserve upon the pooling of interests
during the year ended 31 December 1997; and
(b) an amount of $12,008,000 (2020: $8,914,000) relating to realised loss (2020: realised loss) on reissuance
of treasury shares under share-based payment arrangements as at 31 December 2021.
Capital reserves are non-distributable.


31 DECEMBER 2021
E9 Other reserves
Group 2021 2020

$’000 $’000
Foreign currency translation reserve (140,483) (154,074)

Statutory reserve 1,618 1,494
Fair value reserve (22,242) (7,571)
Share-based payment reserve 75,920 74,298
Premium paid on acquisition of non-controlling interests (16,750) (3,164)
(101,937) (89,017)
Fair value reserve movement arising from other comprehensive

income comprises:
Net fair value changes on financial assets:

- Net fair value changes during the year for FVOCI equity instruments – (246)
- Reclassification to retained earnings on realisation – 584
– 338
Foreign currency translation reserve movement arising from other

comprehensive income comprises:
Foreign currency translation differences arising from:
- Translation of loans forming part of net investments in foreign entities (6,500) 10,245
- Share of translation difference of associates and joint ventures 9,123 1,819
- Reserves released on disposal of a subsidiary (5,643) 121
- Translation of foreign entities 16,611 27,817
13,591 40,002


31 DECEMBER 2021
E9 Other reserves (continued)
Other reserves are non-distributable.
Type of reserve Nature
Foreign currency Comprises foreign exchange differences arising from the translation of the
translation reserve financial statements of foreign entities, effective portion of the hedging
instrument which is used to hedge against the Group’s net investment in
foreign currencies as well as from the translation of foreign currency loans
used to hedge or form part of the Group’s net investments in foreign entities.
Statutory reserve Statutory reserve comprises transfers from revenue reserve in accordance with
the regulations of the foreign jurisdiction in which the Group’s subsidiaries
and joint ventures operate, principally in the People’s Republic of China
where the subsidiaries and joint ventures are required to make appropriation
to a Statutory Reserve Fund and Enterprise Expansion Fund. The laws of the
countries restrict the distribution and use of these statutory reserves.
Fair value reserve Fair value reserve comprises the cumulative fair value changes of financial
instruments at FVOCI and the effective portion of hedging instruments, until
they are disposed or impaired.
Share-based Represents the cumulative value of services received for the issuance of
payment reserve the options and shares under the share plans of the Company issued to
employees and non-executive directors.
Premium paid on Difference between the consideration paid on acquisition of non-controlling

acquisition of non- interests and the carrying value of the proportionate share of the net assets
controlling interests acquired.
E10 Dividends
Company 2021 2020

$’000 $’000
Final dividend paid in respect of the previous financial year of

10.0 cents (2020: 10.0 cents) per share 311,922 312,147
Interim dividend paid in respect of the current financial year of
5.0 cents (2020: 5.0 cents) per share 155,969 155,888
467,891 468,035
The Directors propose a final dividend of 10.0 cents (2020: 10.0 cents) per share amounting to $312.2 million
(2020: $312.2 million) in respect of the financial year ended 31 December 2021. These dividends have not
been recognised as a liability as at year end as they are subject to the approval by shareholders at the Annual
General Meeting of the Company.


31 DECEMBER 2021
F. GROUP STRUCTURE
This section explains significant aspects of ST Engineering’s group structure, including joint arrangements that the
Group has interest in, its controlled entities and how changes have affected the Group structure. It also provides
information on business acquisitions and disposals made during the financial year as well as information relating
to ST Engineering’s related parties, the extent of related party transactions and the impact they had on the Group’s
financial performance and position.
F1 Subsidiaries F4 Associates and joint ventures
F2 Acquisition and disposal of controlling F5 Related party information

interests in subsidiaries in 2021/2020
F3 Non-controlling interests in subsidiaries
F1 Subsidiaries
Details of the significant subsidiaries of the Group are as follows:

Country of Effective equity interest
incorporation held by the Group
2021 2020
% %
Elbe Flugzeugwerke GmbH1 Germany 55 55

MRA Systems, LLC2 U.S. 100 100
ST Engineering Advanced Networks & Sensors Pte. Ltd. Singapore 100 100
ST Engineering Aerospace Ltd. Singapore 100 100
ST Engineering Aerospace Services Company Pte. Ltd. Singapore 80 80
ST Engineering Defence Aviation Services Pte. Ltd.
(formerly known as ST Engineering Aerospace Aircraft
Maintenance Pte. Ltd.) Singapore 100 100
ST Engineering Electronics Ltd. Singapore 100 100
ST Engineering iDirect (Europe) NV3 Belgium 100 100
ST Engineering Land Systems Ltd. Singapore 100 100
ST Engineering Marine Ltd. Singapore 100 100
ST Engineering Mission Software & Services Pte. Ltd. Singapore 100 100
ST Engineering Unmanned & Integrated Systems Pte. Ltd. Singapore 100 100
ST Engineering North America, Inc.2 U.S. 100 100
ST Engineering RHQ Ltd.4 United Kingdom 100 100
ST Engineering IHQ Pte. Ltd. Singapore 100 100
ST Engineering Treasury Pte. Ltd. Singapore 100 100
1
Audited by PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft for consolidation purposes.
2
Not required to be audited under the law in the country of incorporation.
3
Audited by PricewaterhouseCoopers Antwerp for consolidation purposes.
4
Audited by Critchleys LLP.
All significant subsidiaries that are required to be audited under the law in the country of incorporation are
audited by PricewaterhouseCoopers LLP Singapore and network of member firms of PricewaterhouseCoopers
International Limited (PwCIL), except as indicated above.


31 DECEMBER 2021
F2 Acquisition and disposal of controlling interests in subsidiaries in 2021/2020
Acquisition of controlling interest in subsidiaries in 2021
(i) Acquisition of controlling interests in Keystone 1 Limited (Keystone)
On 7 April 2021, the Group acquired 100% of Keystone for a net cash consideration of $11,735,000.
Keystone’s main principal activity is aircraft leasing. Keystone was subsequently divested on
28 December 2021.
Keystone contributed revenue of $576,000 and net profit of $673,000 to the Group for the period
from 7 April 2021 to 28 December 2021.
(ii) Acquisition of controlling interests in ST Engineering Satellite Systems Pte. Ltd. (Satellite Systems)
On 9 August 2021, the Group has reclassified its investments in Satellite Systems from a joint venture to a
51% owned subsidiary following the changes made to the constitution. Satellite Systems provides design
and development, system integration, manufacturing and sale of satellite equipment.
Satellite Systems contributed revenue of $8,664,000 and net profit of $717,000 to the Group for the
period from 9 August 2021 to 31 December 2021.
Had the above businesses been consolidated from 1 January 2021, consolidated revenue and net profit for the
year ended 31 December 2021 would have been $7,700,723,000 and $573,938,000 respectively


31 DECEMBER 2021
F2 Acquisition and disposal of controlling interests in subsidiaries in 2021/2020 (continued)
Identifiable assets acquired and liabilities assumed
The acquisitions had the following effect on the Group’s assets and liabilities on acquisition date:
Fair values
recognised on
acquisition
2021
$’000
Property, plant and equipment 21,144

Deferred tax assets 84
Contract assets 565
Trade receivables 16
Advances and other receivables 1,323
Contract liabilities (5,182)
Deposits from customers (138)
Trade payables and accruals (3,372)
Amount due to related parties (8,123)
Provision for taxation (106)
Non-current contract liabilities (974)
Deferred tax liabilities (973)
Total identifiable net assets 23,779
Non-controlling interests (5,682)
Fair value of pre-existing interest in the acquiree (5,915)
Total purchase consideration 12,182
Cash outflow on acquisition:

Cash consideration paid 12,182
Less: cash acquired (19,515)
Net cash inflow on acquisition (7,333)
The Group incurred acquisition-related cost of $64,000 on legal fees and have been included in administrative
expenses.


31 DECEMBER 2021
F2 Acquisition and disposal of controlling interests in subsidiaries in 2021/2020 (continued)
De-consolidation and disposal of controlling interests in subsidiaries in 2021
In January 2021, the Group divested its 100% equity interest in VT Volant Aerospace, LLC (Volant) and in
December 2021, the Group divested the 100% equity interest in Keystone 1 Limited (Keystone).
Volant contributed revenue of $113,000 and loss before tax of $569,000 for the period from 1 January 2021 to
the date of disposal. Keystone contributed revenue of $230,000 and net profit of $2,893,000 to the Group for the
period from 7 April 2021 to 28 December 2021.
During the year, the Group received proceeds from its de-consolidated subsidiaries, Jiangsu Huatong Kinetics
Co., Ltd and Jiangsu Huaran Kinetics Co., Ltd (collectively known as “JHK”) that were under voluntary liquidation
process since December 2016.
The financial effects arising from the de-consolidation and disposal of subsidiaries are as follows:
Total
$’000
Property, plant and equipment 18,938

Right-of-use assets 190
Intangible assets 264
Deferred tax assets 21
Inventories 8,374
Trade receivables 601
Advances and other receivables 2,022
Trade payables and accruals (4,124)
Amounts due to related parties (346)
Provision for taxation (76)
Deferred tax liabilities (1,953)
Net assets disposed 26,524
Realisation of reserves (5,643)
Gain on disposal 11,742
Sales consideration 32,623
Less: bank balances and other liquid funds in subsidiaries disposed (2,613)
Net cash inflow on disposal 30,010
De-consolidation of controlling interests in a subsidiary in 2020
In the prior year, the Group completed the liquidation of Silvatech Global Systems Limited as part of an effort to
streamline its organisation structure. The subsidiary was dormant prior to disposal.


31 DECEMBER 2021
F3 Non-controlling interests in subsidiaries
The following table summarises the information relating to each of the Group’s subsidiaries with material
non-controlling interests (NCI), based on their respective (consolidated) financial statements prepared
in accordance with SFRS(I), modified for fair value adjustments on acquisition and differences from the
Group’s accounting policies. The summarised financial information is not adjusted for percentage ownership
held by NCI.
ST Engineering
Aerospace
Services
Name of subsidiary Company
2021 Pte. Ltd.
$’000
NCI percentage 20%

Principal place of business/Country of incorporation Singapore
Revenue 320,082
Profit/(loss) after taxation 54,419
Other comprehensive (loss)/income (1,443)
Total comprehensive income/(loss) 52,976
Attributable to NCI:
- Profit/(loss) 10,884
- Other comprehensive (loss)/income (289)
- Total comprehensive income/(loss) 10,595
Non-current assets 232,603

Current assets 242,622
Non-current liabilities (162,285)
Current liabilities (139,934)
Net assets 173,006
Net assets attributable to NCI 34,601
Cash flows from operating activities 7,679

Cash flows used in investing activities (55,520)
Cash flows used in financing activities * (22,472)
Net (decrease)/increase in cash and cash equivalents (70,313)
* including dividends to NCI (8,000)

ST Aerospace Other
Technologies Elbe individually
Eco-Services, (Xiamen) Flugzeuwerke immaterial Intra-group
LLC Company Ltd GmbH subsidiaries elimination Total
$’000 $’000 $’000 $’000 $’000 $’000
49.9% 20% 45%

U.S. China Germany
21,271 123,642 455,591

3,154 794 (33,907)
893 3,097 (24,557)
4,047 3,891 (58,464)
1,574 159 (15,258) 1,287 (2,215) (3,569)

446 619 (11,056) (143) 26 (10,397)
2,020 778 (26,314) 1,144 (2,189) (13,966)
15,515 53,034 663,048

35,108 79,311 305,431
(945) – (425,626)
(6,431) (61,190) (191,210)
43,247 71,155 351,643
21,580 14,231 158,239 23,008 3,794 255,453
10,356 4,307 61,263

(1,035) (1,385) (11,134)
– – (38,225)
9,321 2,922 11,904
– – –


31 DECEMBER 2021
F3 Non-controlling interests in subsidiaries (continued)
ST Engineering
Aerospace
Services
Name of subsidiary Company
2020 Pte. Ltd.
$’000
NCI percentage 20%

Principal place of business/Country of incorporation Singapore
Revenue 239,538
Profit/(loss) after taxation 47,243
Other comprehensive income/(loss) 606
Total comprehensive income 47,849
Attributable to NCI:
- Profit/(loss) 9,449
- Other comprehensive income/(loss) 121
- Total comprehensive income/(loss) 9,570
Non-current assets 93,570

Current assets 257,319
Non-current liabilities (43,315)
Current liabilities (97,402)
Net assets 210,172
Net assets attributable to NCI 42,034
Cash flows from operating activities 149,791

Cash flows from/(used in) investing activities 37,887
Cash flows used in financing activities* (64,611)
Net increase in cash and cash equivalents 123,067
* including dividends to NCI (16,760)

ST Aerospace Other
Technologies Elbe individually
Eco-Services, (Xiamen) Flugzeuwerke immaterial Intra-group
LLC Company Ltd GmbH subsidiaries elimination Total
$’000 $’000 $’000 $’000 $’000 $’000
49.9% 20% 45%

U.S. China Germany
23,032 121,727 375,095

3,850 5,387 (23,908)
(852) 3,104 30,243
2,998 8,491 6,335
1,921 1,077 (10,759) 2,735 (640) 3,783

(425) 621 13,608 (20) (1) 13,904
1,496 1,698 2,849 2,715 (641) 17,687
16,893 51,544 692,816

27,528 72,577 260,683
(471) – (441,795)
(3,457) (56,842) (111,530)
40,493 67,279 400,174
20,206 13,456 180,078 26,574 (173) 282,175
7,785 20,550 43,569

(279) (559) (29,762)
(432) (18,639) (5,307)
7,074 1,352 8,500
– – –


31 DECEMBER 2021
F4 Associates and joint ventures
Group 2021 2020

$’000 $’000
Unquoted shares, at fair value 34,215 20,858
Unquoted shares, at cost 360,580 357,705

Goodwill on acquisition 38 38
Share of net assets acquired 360,618 357,743
Impairment in associates (8,000) (8,000)
Share of post-acquisition reserves 96,064 98,311
448,682 448,054
482,897 468,912
Represented by:
Interest in associates 347,561 319,005
Interest in joint ventures 135,336 149,907
482,897 468,912
In the prior year, an impairment loss of $4,000,000 was recognised for an investment in associate and mainly
relates to the shortfall between the carrying amount of the costs of investment and the recoverable amount of
an investment in associate. The recoverable amount was determined based on the value-in-use method.


31 DECEMBER 2021
F4 Associates and joint ventures (continued)
Details of significant associates and joint ventures are as follows:
Country of
incorporation/ Effective equity interest
Name Principal activities place of business held by the Group
2021 2020
% %
Associates
Shanghai Technologies Aircraft and component People’s Republic 49 49
Aerospace Company Limited 1 maintenance, repair, of China
overhaul and other related
maintenance business
ST Aerospace Aircraft and component People’s Republic 44 44

(Guangzhou) Aviation maintenance, repair, of China
Services Company Limited 1 overhaul and other related
maintenance business
Turbine Coating Repair, refurbishment and Singapore 24.5 24.5

Services Pte. Ltd. upgrading of aircraft jet
engine turbine blades
and vanes
Turbine Overhaul Repair and service of Singapore 49 49

Services Pte. Ltd. gas and steam turbine
components
CityCab Pte. Ltd. 1 Rental of taxis and Singapore 46.5 46.5

the provision of charge
card facilities
Experia Events Pte. Ltd.1 Organising and Singapore 33 33

management of
conferences, exhibitions
and other related activities,
including the biennial
Singapore Airshow event
Joint ventures
Total Engine Asset Leasing of engines Singapore 50 50
Management Pte. Ltd.1
Keystone Holdings Investment holding Singapore 50 50

(Global) Pte. Ltd. 1
SPTel Pte. Ltd. Running, operation, Singapore 51 51

management and supply
of telecommunications
services
1
Not audited by PricewaterhouseCoopers LLP Singapore.
All significant associates and joint ventures that are required to be audited under the law in the country of
incorporation are audited by PricewaterhouseCoopers LLP Singapore and network of member firms of
PricewaterhouseCoopers International Limited (PwCIL), except as indicated above.


31 DECEMBER 2021
Associates
The following table summarises the information of each of the Group’s material associates, which are equity-
accounted, based on their respective financial statements prepared in accordance with SFRS(I), modified for
fair value adjustments on acquisitions and differences with the Group’s accounting policies. The summarised
financial information is not adjusted for percentage ownership held by the Group.
ST Aerospace
Shanghai (Guangzhou)
Technologies Aviation
Aerospace Services
Name of associate Company Company
2021 Limited Limited
$’000 $’000
Percentage of interest 49% 44%
Revenue 47,454 68,760

Profit/(loss) after taxation (6,120) 7,795
Other comprehensive income 5,392 5,009
Total comprehensive (loss)/income (728) 12,804
Attributable to NCI – –
Attributable to investee’s shareholders (728) 12,804
Non-current assets 83,937 115,641

Current assets 58,500 45,730
Non-current liabilities (1,337) (19,321)
Current liabilities (18,794) (23,019)
Net assets 122,306 119,031
Attributable to investee’s shareholders 122,306 119,031
Group’s interest in net assets of investee at beginning of the year 61,988 46,739
Group’s share of:
- Profit/(loss) for the year (2,999) 3,430
- Total other comprehensive income/(loss) 2,642 2,205
Total comprehensive income/(loss) (357) 5,635
Group’s contribution during the year – –
Dividends received during the year (1,701) –
Carrying amount of interest in investee at end of the year 59,930 52,374
Fair value changes of unquoted investments held by the Group’s Corporate Venture Capital Unit is recognised
in Other income/(expenses) in the income statement.

Turbine Turbine
Coating Overhaul Experia
Services Services CityCab Events Immaterial
Pte. Ltd. Pte. Ltd. Pte. Ltd. Pte. Ltd. associates Total
$’000 $’000 $’000 $’000 $’000 $’000
24.5% 49% 46.5% 33%
17,956 266,115 69,984 8,203

5,563 40,081 3,836 (7,976)
1,310 2,882 – –
6,873 42,963 3,836 (7,976)
– – (257) –
6,873 42,963 4,093 (7,976)
21,973 46,011 89,249 44,062

41,864 213,412 82,330 50,265
(3,199) (5,967) (18,030) (4,634)
– (102,568) (21,070) (30,582)
60,638 150,888 132,479 59,111
– – 638 –
60,638 150,888 131,841 59,111
14,488 60,777 64,301 22,141 48,571 319,005
1,363 19,640 1,904 (2,631) 14,177 34,884

320 1,413 – – 425 7,005
1,683 21,053 1,904 (2,631) 14,602 41,889
– – – 4,883 4,883
(1,315) (7,894) (4,896) – (2,410) (18,216)
14,856 73,936 61,309 19,510 65,646 347,561


31 DECEMBER 2021
Associates (continued)
ST Aerospace
Shanghai (Guangzhou)
Technologies Aviation
Aerospace Services
Name of associate Company Company
2020 Limited Limited
$’000 $’000
Percentage of interest 49% 44%
Revenue 63,827 46,502

Profit/(loss) after taxation 3,761 (8,391)
Other comprehensive income/(loss) 6,267 5,461
Total comprehensive income/(loss) 10,028 (2,930)
Attributable to investee’s shareholders 10,028 (2,930)
Non-current assets 80,491 113,547

Current assets 64,415 25,698
Non-current liabilities – (20,333)
Current liabilities (18,400) (12,688)
Net assets 126,506 106,224
Attributable to investee’s shareholders 126,506 106,224
Group’s interest in net assets of investee at beginning of the year 60,377 48,027
Group’s share of:
- Profit/(loss) for the year 1,843 (3,692)
- Total other comprehensive income/(loss) 3,071 2,404
Total comprehensive income/(loss) 4,914 (1,288)
Group’s contribution during the year – –
Dividends received during the year (3,303) –
Impairment of an associate during the year – –
Carrying amount of interest in investee at end of the year 61,988 46,739

Turbine Turbine
Coating Overhaul Experia
Services Services CityCab Events Immaterial
Pte. Ltd. Pte. Ltd. Pte. Ltd. Pte. Ltd. associates Total
$’000 $’000 $’000 $’000 $’000 $’000
24.5% 49% 46.5% 33%
20,030 240,797 67,099 48,123

8,286 21,096 (7,110) 14,241
(1,335) (2,880) – –
6,951 18,216 (7,110) 14,241
– – 320 –
6,951 18,216 (7,430) 14,241
22,747 34,105 112,981 47,064

38,485 179,414 73,045 35,442
(2,096) – (27,438) (4,373)
– (89,485) (19,415) (11,045)
59,136 124,034 139,173 67,088
– – 895 –
59,136 124,034 138,278 67,088
12,785 51,850 74,164 17,441 53,771 318,415
2,030 10,337 (3,306) 4,700 (366) 11,546

(327) (1,410) – – (4,659) (921)
1,703 8,927 (3,306) 4,700 (5,025) 10,625
– – – – 4,868 4,868
– – (6,557) – (1,043) (10,903)
– – – – (4,000) (4,000)
14,488 60,777 64,301 22,141 48,571 319,005


31 DECEMBER 2021
Joint ventures
The following table summarises the information of each of the Group’s material joint ventures, adjusted for any
differences with the Group’s accounting policies and reconciles the carrying amount of the Group’s interest in
joint ventures and the share of profit and other comprehensive income of equity-accounted investment (net of
tax). The summarised financial information is not adjusted for the percentage ownership held by the Group.
Keystone Total Engine

Holdings Asset Immaterial
Name of joint venture (Global) Management SPTel joint
2021 Pte. Ltd. Pte. Ltd. Pte. Ltd. ventures Total
$’000 $’000 $’000 $’000 $’000
Percentage of interest 50% 50% 51%
Revenue 22,982 22,865 34,358

Profit/(loss) after taxation a 7,694 (6,936) (15,847)
Other comprehensive income 944 5,586 –
Total comprehensive income/(loss) 8,638 (1,350) (15,847)
a
Includes:
- Depreciation and amortisation of: (13,555) (10,268) 11,536
- Interest expense of: (3,784) (4,980) 945
- Income tax expense of: 869 3,706 (449)
Non-current assets 181,512 361,038 97,492

Current assets b 32,113 22,265 26,305
Non-current liabilities c (71,927) (145,348) (26,855)
Current liabilities d (71,623) (123,485) (43,902)
Net assets excluding goodwill 70,075 114,470 53,040
b
Includes cash and cash
equivalents of: 29,687 11,872 8,464
c
Includes non-current financial
liabilities (excluding trade and
other payables and provisions) of: (71,927) (145,348) 27,544
d
Includes current financial
other payables and provisions) of: (71,097) (117,293) 11,580
Group’s interest in net assets of

investee at beginning of the year 36,376 60,464 37,876 15,191 149,907
Share of total comprehensive
income/(loss) 4,319 (675) (8,112) 1,056 (3,412)
Group’s (return of capital)/
contribution during the year (3,752) – – 5,001 1,249
Carrying amount of interest in a joint
venture reclassified to a subsidiary – – – (5,915) (5,915)
Disposal of joint venture – – – (361) (361)
Dividends received during the year (1,906) (2,554) – (1,672) (6,132)
Carrying amount of interest in
investee at end of the year 35,037 57,235 29,764 13,300 135,336


31 DECEMBER 2021
Joint ventures (continued)
Keystone Total Engine

Holdings Asset Immaterial
Name of joint venture (Global) Management SPTel joint
2020 Pte. Ltd. Pte. Ltd. Pte. Ltd. ventures Total
$’000 $’000 $’000 $’000 $’000
Percentage of interest 50% 50% 51%
Revenue 26,520 103,257 23,738

Profit/(loss) after taxation a 3,924 42,660 (13,134)
Other comprehensive loss (3,440) (400) –
Total comprehensive income/(loss) 484 42,260 (13,134)
a
Includes:
- Depreciation and amortisation of: 14,282 16,049 8,571
- Interest expense of: 5,435 12,965 636
- Income tax expense of: 975 3,224 (1,537)
Non-current assets 204,150 266,273 91,955

Current assets b 26,796 58,615 27,872
Non-current liabilities c (95,316) (161,733) (13,173)
Current liabilities d (62,879) (42,226) (37,767)
Net assets excluding goodwill 72,751 120,929 68,887
b
Includes cash and cash
equivalents of: 21,610 36,977 17,732
c
Includes non-current financial
other payables and provisions) of: 95,316 161,733 13,173
d
Includes current financial
other payables and provisions) of: 62,065 42,226 7,253
Group’s interest in net assets of

investee at beginning of the year 36,821 40,117 44,617 13,449 135,004
Share of total comprehensive
income/(loss) 242 21,130 (6,741) 2,642 17,273
Dividends received during the year (687) (783) – (900) (2,370)
Carrying amount of interest in
investee at end of the year 36,376 60,464 37,876 15,191 149,907


31 DECEMBER 2021
Basis of consolidation
(i) Business combinations
Business combinations are accounted for using the acquisition method in accordance with SFRS(I) 3
Business Combinations as at the acquisition date, which is the date on which control is transferred to
the Group.
Goodwill that arises upon the acquisition of subsidiaries is included in intangible assets. For the
measurement of goodwill at initial recognition, refer to Note C3.
The consideration transferred does not include amounts related to the settlement of pre-existing
relationships. Such amounts are generally recognised in profit or loss.
Costs related to the acquisition, other than those associated with the issue of debt or equity securities,
that the Group incurs in connection with a business combination are expensed as incurred.
Any contingent consideration payable is recognised at fair value at the acquisition date. If the contingent
consideration is classified as equity, it is not remeasured and settlement is accounted for within equity.
Otherwise, any subsequent changes to the fair value of the contingent consideration are recognised in
profit or loss.
Non-controlling interests (NCI) that are present ownership interests and entitle their holders to a
proportionate share of the acquiree’s net assets in the event of liquidation are measured either at fair
value or at the NCI’s proportionate share of the recognised amounts of the acquiree’s identifiable net
assets, at the acquisition date. The measurement basis taken is elected on a transaction-by-transaction
basis. All other NCI are measured at acquisition-date fair value, unless another measurement basis is
required by SFRS(I)s.
Changes in the Group’s interest in a subsidiary that do not result in a loss of control are accounted for as
transactions with owners in their capacity as owners and therefore no adjustment is made to goodwill
and no gain or loss is recognised in profit or loss. Adjustments to NCI arising from transactions that do
not involve the loss of control are based on a proportionate amount of the net assets of the subsidiary.
(ii) Subsidiaries
Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to
or has rights to variable returns from its involvement with the entity and has the ability to affect those
returns through its power over the entity. The financial statements of subsidiaries are included in the
consolidated financial statements from the date that control commences until the date that control
ceases.
Consistent accounting policies are applied to like transactions and events in similar circumstances.
Losses applicable to the non-controlling interests in a subsidiary are allocated to the non-controlling
interests even if doing so causes the non-controlling interests to have a deficit balance.
In the Company’s separate financial statements, investments in subsidiaries are accounted for at cost
less accumulated impairment losses.


31 DECEMBER 2021
Basis of consolidation (continued)
(iii) Acquisitions of entities under amalgamation
The Company’s interests in ST Engineering Aerospace Ltd., ST Engineering Electronics Ltd.,

ST Engineering Land Systems Ltd., and ST Engineering Marine Ltd. (collectively referred to as
the Scheme Companies) resulted from the amalgamation of the Scheme Companies pursuant to
a scheme of arrangement under Section 210 of the Singapore Companies Act 1967 in 1997.
As the amalgamation of the Scheme Companies constitutes a uniting of interests, the pooling of
interests method has been adopted in the preparation of the consolidated financial statements in
connection with the amalgamation.
Under the pooling of interests method, the combined assets, liabilities and reserves of the pooled
enterprises are recorded at their existing carrying amounts at the date of amalgamation. The excess or
deficiency of amount recorded as share capital issued (plus any additional consideration in the form
of cash or other assets) over the amount recorded for the share capital acquired is recorded as capital
reserve.
(iv) Loss of control
Upon the loss of control, the Group derecognises the assets and liabilities of the subsidiary, any
non-controlling interests and the other components of equity related to the subsidiary. Any surplus
or deficit arising on the loss of control is recognised in profit or loss. If the Group retains any interest
in the previous subsidiary, then such interest is measured at fair value at the date that control is lost.
Subsequently, it is accounted for as an equity-accounted investee or as a financial asset at FVOCI,
depending on the level of influence retained.
(v) Investments in associates and joint ventures
Associates are those entities in which the Group has significant influence, but not control or joint control,
over the financial and operating policies. Significant influence is presumed to exist when the Group
holds between 20% or more of the voting power of another entity. A joint venture is an arrangement in
which the Group has joint control, whereby the Group has rights to the net assets of the arrangement,
rather than rights to its assets and obligations for its liabilities.
Investments in associates and joint ventures are accounted for by the Group using the equity method
(except for those acquired by the Group’s Corporate Venture Capital Unit) and are recognised initially
at cost, which includes transaction costs.
The consolidated financial statements include the Group’s share of the profit or loss and other
comprehensive income (OCI) from the date that significant influence or joint control commences until
the date that significant influence or joint control ceases.
When the Group’s share of losses exceeds its interest in an equity-accounted investee, the carrying
amount of the investment, including any long-term interest, is reduced to zero, and the recognition of
further losses is discontinued except to the extent that the Group has an obligation to fund the investee’s
operations or has made payments on behalf of the investee.


31 DECEMBER 2021
Basis of consolidation (continued)
(v) Investments in associates and joint ventures (continued)
For investments in associates acquired by the Group’s Corporate Venture Capital Unit, the Group has
elected to measure its investments in associates at FVTPL in accordance with SFRS(I) 9 Financial
Instruments.
In the Company’s separate financial statements, investments in associates and joint ventures are
accounted for at cost, less accumulated impairment losses.
(vi) Transactions eliminated on consolidation
All significant inter-company balances and transactions are eliminated on consolidation.
Goodwill that forms part of the carrying amount of an investment in an associate and/or joint venture is not
recognised separately, and therefore is not tested for impairment separately. Instead, the entire amount of
the investment in an associate and/or joint venture is tested for impairment as a single asset when there is
objective evidence that the investment in an associate and/or joint venture may be impaired.
Estimates and judgements: Judgements made in applying accounting policies
Information about critical judgements in applying accounting policies that have the most significant effect on
the amounts recognised in the financial statements relates to assessing whether the Group has control over
its investee companies.
During the year, the Group assessed the terms and conditions of the shareholders’ agreement of subsidiaries
that are not wholly-owned by the Group. The Group made critical judgements over:
(a) its ability to exercise power over its investees;

(b) its exposure or rights to variable returns for its investments with those investees; and
(c) its ability to use its power to affect those returns.
The Group’s judgement included considerations of its power exercised at the board of the respective investees
and rights and obligations arising from matters reserved for the board as agreed with the other shareholders.


31 DECEMBER 2021
F5 Related party information
Key management personnel compensation
Group 2021 2020

$’000 $’000
Short-term employee benefits 41,861 36,599

Contributions to defined contribution plans 680 688
Share-based payments 8,780 12,106
51,321 49,393
In addition to related party information disclosed elsewhere in the financial statements, the Group has significant
transactions with the following related parties on terms agreed between the parties:
Group 2021 2020

$’000 $’000
Associates of the Group

Sales and services rendered 7,888 8,074
Purchases and services received (3,384) (22,398)
Dividend income 18,216 10,903
Joint ventures of the Group

Dividend income 6,132 2,370
Other related parties *

Rental expense (5,368) (4,633)
Rental income – 538
* Other related parties refer to subsidiaries, associates and joint ventures of the immediate holding company.


31 DECEMBER 2021
G. OTHERS
G1 Comparatives G3 New standards and interpretations not

adopted
G2 Adoption of new standards and interpretations G4 Impact of COVID-19
G1 Comparatives
The following prior year comparatives have been reclassified to conform to changes in the presentation on the
current year. The reclassifications have been made to better reflect the nature of the balances.
2020
(As previously 2020
Reported) Reclassification (As restated)
$’000 $’000 $’000
Presented in Consolidated Statement of

Financial Position
Current assets
Contract assets 1,153,192 402,589 1,555,781
Current liabilities
Contract liabilities 1,141,484 (157,597) 983,887
Trade payables and accruals 1,667,568 550,455 2,218,023
Contract liabilities 792,617 9,731 802,348
G2 Adoption of new standards and interpretations
On 1 January 2021, the Group has adopted the new or amended SFRS(I)s and Interpretations of SFRS(I)s
(“INT SFRS(I)s”) that are mandatory for application for the financial year. Changes to the Group’s accounting
policies have been made as required, in accordance with the transitional provisions in the respective SFRS(I)s
and INT SFRS(I)s.
The adoption of these new or amended SFRS(I)s and INT SFRS(I)s did not result in substantial changes to
the Group’s accounting policies and had no material effect on the amounts reported for the current or prior
financial years.


31 DECEMBER 2021
G2 Adoption of new standards and interpretations (continued)
Applicable to 2021 financial statements

• Amendments to SFRS(I) 16 Leases (Covid-19-Related Rent Concessions)
• Amendments to SFRS(I) 9 Financial Instruments, SFRS(I) 1-39 Financial Instruments: Recognition
and Measurement, SFRS(I) 7 Financial Instruments:Disclosures and SFRS(I) 16 Leases (Interest Rate
Benchmark Reform – Phase 2)
G3 New standards and interpretations not adopted
A number of new standards, interpretations and amendments to standards are effective for annual periods
beginning after 1 January 2021 and earlier application is permitted; however, the Group has not early adopted
the new or amended standards and interpretations in preparing these financial statements.
The following new SFRS(I)s, interpretations and amendments to SFRS(I)s are not expected to have a significant
impact on the Group’s financial statements.

• Amendments to SFRS(I) 16 Leases: Covid-19-Related Rent Concessions beyond 30 June 2021
• Amendments to SFRS(I) 3 Business Combinations: Reference to the Conceptual Framework
• Amendments to SFRS(I) 1-16 Property, Plant and Equipment: Proceeds before Intended Use
• Amendments to SFRS(I) 1-37 Provisions, Contingent Liabilities and Contingent Assets: Onerous
Contracts – Cost of Fulfilling a Contract

• Amendments to SFRS(I) 1-1 Presentation of Financial Statements: Classification of Liabilities as Current
or Non-current
• Amendments to SFRS(I) 1-1 Presentation of Financial Statements and SFRS(I) Practice Statement 2:
Disclosure of Accounting Policies
• Amendments to SFRS(I) 1-8 Accounting Policies, Changes in Accounting Estimates and Errors:
Definition of Accounting Estimates
• Amendments to SFRS(I) 1-12 Income Taxes: Deferred Tax related to Assets and Liabilities arising from a
Single Transaction
Mandatory effective date deferred

• Amendments to SFRS(I) 10 Consolidated Financial Statements and SFRS(I) 1-28 Investments in
Associates and Joint Ventures: Sale or Contribution of Assets between an Investor and its Associate or
Joint Venture.
G4 Impact of COVID-19
The COVID-19 pandemic continues to impact economies and businesses around the world, albeit there was
partial business recovery in 2021. The Group has considered the market conditions and outlook including the
impact of COVID-19 as at the balance sheet date, in making estimates and judgements on the recoverability of
assets and provisions for onerous contracts as at 31 December 2021. As the impact of the pandemic is ongoing
and evolving as at the date these financial statements were authorised for issuance, future developments in
relation to the pandemic and their impact on the operating and financial performance of the Group cannot be
ascertained at the present moment.

STATEMENT OF FINANCIAL POSITION

OF THE COMPANY
Note 2021 2020

$’000 $’000
ASSETS
Non-current assets
Property, plant and equipment 2 145 2,137
Right-of-use assets 317 3,558
Subsidiaries 3 1,479,070 1,363,251
Associates 4 – 17,657
Deferred tax assets – 2,500
1,479,532 1,389,103
Current assets
Amounts due from related parties 5 14,833 70,030
Advances and other receivables 236 1,653
Bank balances and other liquid funds 6 82,255 7,372
97,324 79,055
Total assets 1,576,856 1,468,158
EQUITY AND LIABILITIES
Current liabilities
Other payables and accruals 7 3,526 21,542
Amounts due to related parties 5 11,878 16,868
Provision for taxation 701 3,267
Lease liabilities 110 2,014
16,215 43,691
Net current assets 81,109 35,364
Other payables and accruals 7 – 7,390
Lease liabilities 113 1,504
113 8,894
Total liabilities 16,328 52,585
Net Assets 1,560,528 1,415,573
Share capital and reserves

Share capital 8 895,926 895,926
Treasury shares 8 (33,475) (23,743)
Capital reserves 8 (12,044) (8,940)
Other reserves 8 65,716 64,054
Retained earnings 644,405 488,276
1,560,528 1,415,573
Total equity and liabilities 1,576,856 1,468,158

NOTES TO THE STATEMENT OF

FINANCIAL POSITION OF THE COMPANY
1. Basis of Preparation and Significant Accounting Policies
The Statement of Financial Position of the Company is prepared in accordance with Singapore Financial
Reporting Standards (International) (SFRS(I)). The Statement of Financial Position of the Company has been
prepared on the historical cost convention, except as otherwise described in the accounting policies below.
The Statement of Financial Position of the Company are presented in Singapore dollars (SGD) which is the
Company’s functional currency. All values are rounded to the nearest thousand ($’000) unless otherwise
indicated.
Accounting policies, estimates and critical accounting judgements applied to the preparation of the Statement
of Financial Position of the Company is consistent with the disclosures in the consolidated financial statements.
The Statement of Financial Position and Notes to the Statement of Financial Position of the Company
as at 31 December 2021 were authorised and approved by the Board of Directors for issuance on
24 February 2022.
2. Property, plant and equipment
Furniture,
fittings, office
Buildings and equipment Construction-in
improvements and others progress Total
$’000 $’000 $’000 $’000
Cost
At 1 January 2021 6 2,124 1,191 3,321
Additions – 80 – 80
Disposals (6) (1,748) (1,155) (2,909)
Transfer – 36 (36) –
At 31 December 2021 – 492 – 492
At 1 January 2021 3 1,181 – 1,184
Depreciation charge – 279 – 279
Disposals (3) (1,113) – (1,116)
At 31 December 2021 – 347 – 347
Net book value

At 31 December 2021 – 145 – 145

NOTES TO THE STATEMENT OF FINANCIAL POSITION

OF THE COMPANY
31 DECEMBER 2021
2. Property, plant and equipment (continued)
Furniture,
fittings, office
Buildings and equipment Construction-in
improvements and others progress Total
$’000 $’000 $’000 $’000
Cost
At 1 January 2020 2,847 34,713 2,651 40,211
Additions – 7,123 – 7,123
Disposals (2,841) (39,712) (1,460) (44,013)
At 31 December 2020 6 2,124 1,191 3,321
At 1 January 2020 1,576 9,947 – 11,523
Depreciation charge 190 3,634 – 3,824
Disposals (1,763) (12,400) – (14,163)
At 31 December 2020 3 1,181 – 1,184
Net book value

At 31 December 2020 3 943 1,191 2,137
3. Subsidiaries
2021 2020
$’000 $’000
Equity investments at cost

At beginning of the year 1,363,251 1,327,608
Additions 1,415,530 35,643
Transfers to subsidiaries (1,291,123) –
Impairment (8,588) –
At end of the year 1,479,070 1,363,251
During the year, the Company transferred its investments in certain subsidiaries to ST Engineering IHQ Pte. Ltd.
and ST Engineering Holdings GmbH, which are the regional investment holding companies of the Group, of
$761,276,000 and $511,494,000 respectively.


OF THE COMPANY
31 DECEMBER 2021
4. Associates
2021 2020
$’000 $’000
Equity investments at cost

At beginning of the year 17,657 17,657
Transfer to a subsidiary (17,657) –
At end of the year – 17,657
5. Amounts due from/to related parties
Amounts due from/to related parties were non-trade related, unsecured, interest-free and repayable on demand.
6. Bank balances and other liquid funds
2021 2020
$’000 $’000
Amounts placed with a related corporation 82,255 7,372
At the balance sheet date, the amounts placed with a related corporation, ST Engineering Treasury Pte. Ltd.,
under a cash pooling arrangement bears interest of 0% (2020: 0%) per annum. The cash pooling arrangement
administered by ST Engineering Treasury Pte. Ltd. is operated at the instructions of the Company. These
amounts placed with a related corporation are subjected to an arrangement with a bank where bank balances
are transferred from/to a bank account of the related corporation on a daily basis.
7. Other payables and accruals
2021 2020
$’000 $’000
Other payables – 6,913

Accrued operating expenses 3,526 22,019
3,526 28,932
Payable:
Within 1 year 3,526 21,542
After 1 year – 7,390
3,526 28,932
The Company has issued corporate guarantees to banks and other lenders for the borrowings of its
subsidiaries. These guarantees are financial guarantees as they require the Company to reimburse the lenders
if the related parties fails to make principal or interest payments when due in accordance with the terms of
their borrowings.


OF THE COMPANY
31 DECEMBER 2021
8. Share capital, treasury shares, capital reserves and other reserves
• Share capital and treasury shares have been explained and disclosed in E6 and E7.
• Capital reserve is relating to realised gain or loss on re-issuance of treasury shares under share-based
payment arrangements as explained and disclosed in E8.
• Other reserve is relating to share-based payment reserve as explained and disclosed in E9.
9. Financial risk management
• Interest rate risk: No interest rate risk exposure was disclosed as the Company had assessed that a
reasonable change in the interest rates would not result in any significant impact on the Company’s
results.
• Foreign exchange risk: No foreign exchange sensitivity analysis was disclosed as the Company had
assessed that a reasonable change in exchange rates would not result in any significant impact on the
Company’s results.
• Liquidity risk: It is not expected that the cash flows associated with the liabilities of the Company could
occur at significantly different amounts.
• Credit risk: The Company limits its exposure to credit risk on amounts due from related parties which are
mostly short-term in nature and bank balances and other liquid funds placed with reputable financial
institutions.
Management actively monitors the credit ratings of its debtors and does not expect any counterparty to
fail to meet its obligations.
Derivatives are entered into with financial institutions which have long-term rating of at least A3 by
Moody’s, A- by Standard & Poor’s or the equivalent by a reputable credit rating agency.
Cash and bank deposits are placed with reputable financial institutions.
As at 31 December 2021, there were no significant concentrations of credit risk.
• Financial instruments by category: The carrying amount of the different categories of financial
instruments are as follows:
2021 2020
$’000 $’000
Financial assets, at amortised cost 97,324 79,055

Financial liabilities, at amortised cost (15,627) (49,318)

SHAREHOLDING STATISTICS
SHARE CAPITAL
Paid-Up Capital (including treasury shares) : S$895,925,583.505

Number of issued ordinary shares (excluding treasury shares) : 3,112,704,401
Number of ordinary shares held in treasury : 9,790,796
Number of subsidiary holdings held : Nil
Percentage of the aggregate number of treasury shares and : 0.31%
subsidiary holdings held against the total number of issued ordinary shares
Class of Shares : Ordinary Shares
One Special Share held
by the Minister for Finance
Voting Rights : One vote per share
SHAREHOLDING HELD IN HANDS OF PUBLIC
Based on the information available to the Company as at 28 February 2022, approximately 47.94% of the issued
ordinary shares (excluding treasury shares) of the Company are held by the public and therefore, Rule 723 of
the SGX-ST Listing Manual is complied with.
ANALYSIS OF SHAREHOLDINGS
No. of Shares
No. of (excluding
Range of Shareholdings Shareholders treasury shares)
% %
1 --- 99 996 2.49 24,056 0.00

100 --- 1,000 6,747 16.89 5,246,056 0.17
1,001 --- 10,000 25,500 63.81 113,144,303 3.64
10,001 --- 1,000,000 6,686 16.73 252,227,002 8.10
1,000,001 and above 33 0.08 2,742,062,984 88.09
39,962 100.00 3,112,704,401 100.00
Direct Interest Deemed Interest Total Interest

Substantial Shareholder No. of Shares No. of Shares No. of Shares %*
Temasek Holdings (Private) Limited 1,554,764,574 54,306,702 (1) 1,609,071,276 51.69 (2)
Notes:
* The percentage of issued ordinary shares is calculated based on the number of issued ordinary shares of the Company as at 28 February 2022,
excluding any ordinary shares held in treasury as at that date.
(1)
Includes deemed interests held through subsidiaries and associated companies.
(2)
The percentage figure is rounded down to the nearest 0.01%.

SHAREHOLDING STATISTICS
MAJOR SHAREHOLDERS LIST – TOP 20
No. Name No. of Shares Held %*

1 Temasek Holdings (Private) Limited 1,554,764,574 49.95
2 Citibank Nominees Singapore Pte Ltd 390,152,616 12.53
3 DBSN Services Pte. Ltd. 231,205,145 7.43
4 DBS Nominees (Private) Limited 161,819,675 5.20
5 HSBC (Singapore) Nominees Pte Ltd 145,288,397 4.67
6 Raffles Nominees (Pte.) Limited 137,875,496 4.43
7 Vestal Investments Pte. Ltd. 28,501,000 0.92
8 BPSS Nominees Singapore (Pte.) Ltd. 16,384,140 0.53
9 United Overseas Bank Nominees (Private) Limited 12,920,560 0.41
10 OCBC Nominees Singapore Private Limited 8,881,911 0.29
11 Phillip Securities Pte Ltd 7,600,881 0.24
12 Morgan Stanley Asia (Singapore) Securities Pte Ltd 4,824,524 0.15
13 Tan Pheng Hock 4,082,283 0.13
14 OCBC Securities Private Limited 3,677,187 0.12
15 DBS Vickers Securities (Singapore) Pte Ltd 3,591,842 0.12
16 iFAST Financial Pte. Ltd. 3,067,730 0.10
17 UOB Kay Hian Pte Ltd 2,532,694 0.08
18 DB Nominees (Singapore) Pte Ltd 2,440,821 0.08
19 Heng Siew Eng 2,242,000 0.07
20 Mrs Lee Li Ming Nee Ong 2,235,000 0.07
2,724,088,476 87.52
* The percentage of issued ordinary shares is calculated based on the number of issued ordinary shares of the Company as at 28 February 2022,
excluding any ordinary shares held in treasury as at that date.

SGX LISTING RULES REQUIREMENT

31 DECEMBER 2021
INTERESTED PERSON TRANSACTIONS
The Group has obtained a general mandate from shareholders of the Company for interested person transactions
in the Annual General Meeting held on 22 April 2021. During the financial year, the following interested person
transactions were entered into by the Group:
Aggregate value of all

interested person Aggregate value of all
transactions (excluding interested person
transactions less than transactions conducted
$100,000 and transactions under a shareholders
conducted under a mandate pursuant to Rule
Nature of shareholders mandate 920 (excluding transactions
Name of interested person relationship pursuant to Rule 920) less than $100,000)
FY2021 FY2020 FY2021 FY2020

$’000 $’000 $’000 $’000
Transactions for the Sale

of Goods and Services
CapitaLand Limited Temasek Holdings
and its Associates (Private) Limited - - 37 691
CapitaLand Commercial Trust is a controlling - - - 125
SATS Ltd. and its Associates shareholder of - - 967 51,860
the Company.
SembCorp Industries Ltd The other named
and its Associates interested persons - - 45,638 151
Singapore Airlines Limited are its associates.
and its Associates - - 1,308 -
SIA Engineering Company Limited
and its Associates - - - 102
Singapore Telecommunications
Limited and its Associates - - 17,679 2,637
StarHub Ltd and its Associates - - 430 2,125
Temasek Holdings (Private) Limited
and its Associates (non-listed) - - 24,677 45,741
- - 90,736 103,432
Transactions for the Purchase

of Goods and Services
CapitaLand Limited Temasek Holdings
and its Associates (Private) Limited - - 110 143
Mapletree Industrial Trust is a controlling - - - 356
SATS Ltd. and its Associates shareholder of - - 4,580 3,841
the Company.
SembCorp Industries Ltd The other named
and its Associates interested persons - - 352 2,264
Singapore Telecommunications are its associates.
Limited and its Associates - - 2,893 1,038
StarHub Ltd and its Associates - - 641 1,575
Temasek Holdings (Private) Limited
and its Associates (non-listed) - - 12,171 55,826
- - 20,747 65,043
Total Interested Person Transactions - - 111,483 168,475
Save for the interested person transactions disclosed above, there were no other material contracts entered into by the
Company and its subsidiaries involving the interests of its Group President and CEO, directors or controlling shareholder,
which were either still subsisting at the end of the financial year or, if not then subsisting, entered into since the end of
the previous financial year.

ST ENGINEERING HUB
1 ANG MO KIO ELECTRONICS PARK ROAD,
#07-01, SINGAPORE 567710
TEL : (65) 6722 1818
www.stengg.com
(Regn. No. 199706274H)

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CORPORATE PERFORMANCE FINANCIAL

OVERVIEW REVIEW SUSTAINABILITY REPORT

Harness technology and innovation to enable

Become a global technology, defence and

Integrity Value Creation Courage Commitment Compassion

ST Engineering is a global technology, defence

We rank among the largest companies listed on Technology and Innovation 30

ST ENGINEERING ANNUAL REPORT 2021 01

→ ORDER BOOK → REVENUE

$19.3b 25% $7.7b 7.5%

$1,071.7m 10% $313.0m 9%

→ EARNINGS PER SHARE → DIVIDEND PER SHARE

→ TOTAL SHAREHOLDERS RETURN → RETURN ON EQUITY

2.4% 1.5 pts 23.6% 0.8pts

→ REVENUE BY CUSTOMER LOCATIONS

Amounts may not add up due to rounding.

ST ENGINEERING ANNUAL REPORT 2021 02

→ REVENUE BY TYPE ($b)

2021 4.8 2021 2.9

2020 4.6 2020 2.6

Refers to revenue by product and services type.

→ REVENUE BY SEGMENT (%) → EBIT BY SEGMENT (%)

$7,158m $7,693m $596.4m $673.6m

→ PROFIT BEFORE TAX → NET PROFIT

$637.6m 19% $570.5m 9%

ST ENGINEERING ANNUAL REPORT 2021 03

→ KWA CHONG SENG

→ VINCENT CHONG SY FENG

ST ENGINEERING ANNUAL REPORT 2021 04

the development of deeper Although the pandemic headwinds faced by

This is why we went ahead with the expansion of our

ST ENGINEERING ANNUAL REPORT 2021 05

ST ENGINEERING ANNUAL REPORT 2021 06

→ TOTAL CONTRACT WINS The Board of Directors has

$19.3b dividend yield of 4.0%.

Disciplined Cost Management Recognising that returning value to shareholders is an

ST ENGINEERING ANNUAL REPORT 2021 07

This change from declaring dividends semi- We see TransCore as an

Smart Mobility solutions.

We have been focused on driving growth in Smart

ST ENGINEERING ANNUAL REPORT 2021 08

Five-year Targets (2022-2026)

Net profits to grow in tandem with revenue

ST ENGINEERING ANNUAL REPORT 2021 09

We see the pursuit of this ESG agenda as both

Quek Gim Pew, a director since August 2016, resigned

ST ENGINEERING ANNUAL REPORT 2021 10

In 2021, we had leadership changes at the Executive

EXCO member Lim Serh Ghee retired from the Group

As we continue to sharpen our focus, and grow in scale

While our short-term goals have been impacted by the

We thank all our shareholders, customers and

KWA CHONG SENG VINCENT CHONG SY FENG

ST ENGINEERING ANNUAL REPORT 2021 11

这一点明确体现在我们2021年十月以26.8亿美元 (36.2亿 2021年，集团收入报77亿元，与前一年相比增长了7.5%，

ST ENGINEERING ANNUAL REPORT 2021 12

利因素仍然存在, 该部门在2021年 元相比增长8%，收入增长来自数码系统和网络、陆路

ST ENGINEERING ANNUAL REPORT 2021 13

ST ENGINEERING ANNUAL REPORT 2021 14

互补性强。其道路交通解决方案 (ESG) 的议程。

利因素仍然存在, 该部门在2021年元相比增长8%，收入增长来自数码系统和网络、陆路

董事会更新领导层变动衷心感谢