ST Engineering Annual Report 2020

NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2020 (CURRENCY – SINGAPORE DOLLARS UNLESS OTHERWISE STATED) C16 Derivative financial instruments Cash flow hedges At 31 December 2020, the Group held the following instruments to hedge exposures to changes in foreign currency and interest rates: Maturity Group Within 1 year Between 1 to 5 years More than 5 years 2020 Foreign currency risk 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 – 2019 Foreign currency risk Nominal amount of forward exchange contracts (in thousands of SGD) 325,796 211,924 – – Average EUR:USD forward contract rate 1.2039 1.1752 – – Average EUR:SGD forward contract rate 1.6639 1.6752 – – Average THB:SGD forward contract rate 0.0441 – – Nominal amount of embedded derivatives (in thousands of SGD) 99,680 147,862 – – Average EUR:SGD 1.6405 1.6494 – – Average USD:SGD 1.3766 1.3808 – – Average GBP:SGD 1.8005 1.8222 – Interest rate risk Nominal amount of interest rate swaps 134,810 – 195,475 – Average fixed interest rate 1.6325 – 2.6731 / ST ENG I NEER I NG 222