Note 1: The reported current tax is adjusted for the statutory tax impact of interest expense.
Note 2: Monthly average share capital plus interest bearing liabilities, timing provision, goodwill impaired/amortised, and present value
of operating leases.

Major Capital Components:

Note 3: The Weighted Average Cost of Capital is calculated in accordance to Singapore Technologies Engineering Group EVA Policy as follows:

i) Cost of Equity using Capital Asset Pricing Model with market risk premium at 6.0% (2005 @ 6.0%);
ii) Risk-free rate of 3.31% (2005 @ 2.62%) based on yield-tomaturity of Singapore Government 10 years Bonds;
iii) Ungeared beta at 0.65 (2005 @ 0.65) based on Singapore Technologies Engineering risk categorisation; and
iv) Cost of Debt rate at 3.54% (2005 @ 3.03%) using 5-year Singapore dollar Swap Offered Rate plus 25 basis point (2005 @ 75 basis point).

Note 4: Unusual Items (UI) refer to divestment of investment properties, subsidiary and associates, long term investments and disposal of major property, plant and equipment.