Foreign Exchange The Group has receivables and payables denominated in foreign currencies. Where possible, the Group offsets currency exposures across its business units before hedging the remaining currency exposures in the market via foreign exchange forward contracts. The main currencies transacted in 2022 for the Group were USD and EUR. During the year, the Group engaged in approximately $8.6b (2021: $3.3b) equivalent of foreign exchange transactions. As at 31 December 2022, $2.1b (2021: $1.5b) remained as outstanding foreign exchange transactions. Liquidity The Group’s cash and cash equivalents, stood at $0.6b as at 31 December 2022 (2021: $0.8b). Borrowings The Group’s borrowings including lease obligations were higher at $6.5b as at 31 December 2022 (2021: $2.1b). Apart from the lease obligations, the Group’s borrowings comprised the medium term notes, USCP, and short-term and long-term bank loans. Details of the Group's borrowings are presented in Notes E4 to the Financial Statements (pages 227 to 232). The gross debt/EBITDA ratio and net debt/EBITDA ratio as at 31 December 2022 of 5.2 times and 4.7 times respectively were higher compared to 2021’s 2.0 times and 1.2 times respectively following the debt-financed acquisition of TransCore. ST Engineering’s credit ratings remain strong at Aaa (outlook negative) and AA+ (stable) by Moody’s and S&P respectively. 2022 2021 Gross Debt 6,535 2,115 Gross Debt / EBITDA Ratio 5.2 2.0 Net Debt 5,933 1,299 Net Debt / EBITDA Ratio 4.7 1.2 6,535 2,115 0 2,000 4,000 6,000 8,000 < 1 Year 1 to < 3 years 3 to < 5 years > = 5 years BORROWING PROFILE BY MATURITY ($m) 2022 2021 6,535 2,115 Fixed Floating BORROWING PROFILE BY FIXED AND FLOATING RATES ($m) 0 2,000 4,000 6,000 8,000 2022 2021 6,535 2,115 USD SGD EUR BORROWING PROFILE BY CURRENCY ($m) 0 2,000 4,000 6,000 8,000 2022 2021 CORPORATE OVERVIEW PERFORMANCE REVIEW SUSTAINABILITY FINANCIAL REPORT 55
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