ST Engineering Annual Report 2020

2019 2,338 2019 2,338 2019 2,338 CORPORATE OVERVI EW PERFORMANCE REVI EW SUSTAINABI L ITY CORPORATE GOVERNANCE F INANCIAL REPORT 65 ANNUAL REPORT 2 0 20 / 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 remaining currency exposures in the market via foreign exchange forward contracts. The main currencies transacted in 2020 for the Group were USD and EUR. During the year, the Group engaged in approximately $4.2b (2019: $2.6b) equivalent of foreign exchange transactions. As at 31 December 2020, $1.0b (2019: $1.1b) remained as outstanding foreign exchange transactions. Liquidity The Group’s cash and cash equivalents, stood at $0.7b as at 31 December 2020 (2019: $0.5b). Borrowings The Group’s borrowings including lease obligations were lower at $2.0b as at 31 December 2020 (2019: $2.3b). In line with managing refinancing risk, proceeds from issuance of the US$750m 1.50% Notes due 2025 in April 2020, were used to reduce the issued and outstanding USCP to about US$0.3b (S$0.4b equivalent) as at 31 December 2020. Apart from the Notes, USCP and lease obligations, the Group’s borrowings also comprised short-term and long- term loans from banks. BORROWING PROFILE BY MATURITY ($m) BORROWING PROFILE BY CURRENCY ($m) BORROWING PROFILE BY FIXED AND FLOATING RATES ($m) 2,500 2,500 2,500 1 Year SGD USD 1 to < 5 years Fixed EUR > = 5 years Floating RMB 1,000 1,000 1,000 500 500 500 0 0 0 1,500 1,500 1,500 2,000 2,000 2,000 2020 2,047 2020 2,047 2020 2,047