ST Engineering Annual Report 2020

CORPORATE OVERVI EW PERFORMANCE REVI EW SUSTAINABI L ITY CORPORATE GOVERNANCE F INANCIAL REPORT CAPITAL EMPLOYED ($m) CAPITAL EXPENDITURE BY GEOGRAPHY 63 ANNUAL REPORT 2 0 20 / The average capital employed in FY2020 was $5,519m, an increase of $702m from $4,817m in FY2019. The higher average capital employed was attributable mainly to the full year effect of increased borrowings to fund acquisitions made in FY2019. Capital Expenditure In FY2020, the Group invested $196m (2019: $295m) in capital expenditure, attributable to Aerospace ($87m), Electronics ($36m), Land Systems ($24m), Marine ($30m) sectors and Others ($19m). The Group continued to invest in capacity and capability buildup to support customer programmes during the year while reducing discretionary capital expenditure as part of the Group’s cost reduction initiatives. CAPITAL EXPENDITURE BY SECTOR Aerospace Electronics Land Systems Marine Others Aerospace Electronics Land Systems Marine Others 44 19 12 15 10 2020 (%) 61 20 10 3 6 2019 (%) 2020 (%) 2019 (%) 54 60 33 18 11 21 2 1 Asia U.S. Europe Others Asia U.S. Europe Others 2019 6,000 Others Equity Borrowings 1,000 0 4,000 2,000 3,000 5,000 2020 4,817 5,519