ST Engineering Annual Report 2020

01 ANNUAL REPORT 2 020 / Our responses to COVID-19 People and businesses around the world have been impacted by the COVID-19 pandemic. Our offices around the world continue to closely follow guidance from local health authorities, and we are constantly monitoring the evolving situation as we stand ready to adapt our efforts and responses. Safeguarding the well-being of our employees, customers, suppliers and stakeholders is our top priority, and we will always place the health, safety and security of people first. These include implementing workplace practices like telecommuting, split team and staggered work and break hours, as well as other aspects of safe management such as safe distancing, enhanced work place disinfection and cleaning, and wearing of mask. At the height of the virus outbreak in 2020, we pivoted from our usual work to swiftly deploy solutions, and provided technical and engineering expertise to support the global fight against COVID-19, with many of our solutions fielded in the community to help tackle pandemic challenges. These efforts are great demonstrations of how we continue to apply technology and innovation to solve real-world problems to improve lives. We also did our part to help our communities cope with the pandemic. In addition to monetary contributions through internal fundraising exercises, we donated surgical masks and hand sanitisers to those in need when these essential items were in acute shortage. The COVID-19 pandemic has impacted the way we live, learn, work and play. In this new normal, we continue to be socially responsible by doing our part to mitigate spread of the virus. CORPORATE OVERVIEW 02 Financial Highlights 04 Letter to Shareholders 14 Board of Directors 20 Directors Seeking Re-election 23 Corporate Information 24 Group Executive Committee 26 Q&A with Group Executive Committee 34 Technology and Innovation PERFORMANCE REVIEW 38 Operating Review & Outlook 38 Aerospace 44 Electronics 50 Land Systems 56 Marine 62 Financial Review 72 Awards SUSTAINABILITY 74 Board Statement 78 Environment 86 Social 102 Governance CORPORATE GOVERNANCE 104 Corporate Governance FINANCIAL REPORT 127 Directors’ Statement 139 Independent Auditors’ Report 148 Consolidated Income Statement 149 Consolidated Statement of Comprehensive Income 150 Consolidated Balance Sheet 152 Consolidated Statement of Changes in Equity 156 Consolidated Statement of Cash Flows 158 Notes to the Financial Statements 281 Balance Sheet of the Company 282 Notes to the Balance Sheet of the Company 286 Sectoral Financial Review 302 Shareholding Statistics 304 SGX Listing Rules Requirement Note: Some photos used in this Annual Report were taken before COVID-19, when masks and social distancing were not required.