ST Engineering Annual Report 2020

Build global scale and success with new organisation structure at the business units, as well as accelerate the Group’s digitalisation push and leverage our technology competencies to embed digital innovation into our products and solutions for added differentiation and a sharper competitive edge. A multi-year journey This reorganisation is the latest in a multi-year push to prepare the Group for the future. The seeds were planted a few years ago when we undertook organisational changes to progressively strengthen and better position the Group for sustainable long-term growth. It started with the setting up of Shared Services by consolidating corporate functions across the Group to reduce our cost base, improve control and enhance service levels. We then embarked on a Group-wide strategy review in 2017. This review resulted in us sharing a five-year plan (2018-2022 goals) and specific initiatives to strengthen our core businesses and to develop our Smart City and International Defence businesses. Among other initiatives, we rationalised our business portfolio, divested non-core businesses, harmonised our corporate brands into one ST Engineering master- brand, formed the Group Risk and Assurance function, and enhanced our leadership competency and talent development framework. These efforts were complemented by increased investments in technology and innovation, be it in- house or through collaboration within the industry. We have made significant investments in areas aligned with our strategy, and where we can scale. Between 2018 and 2019, we made three acquisitions worth over $1b. Setting new five-year plan Up till now, we have been executing the strategy that we shared at our 2018 Investor Day. While we experienced early success with our growth initiatives, LETTER TO SHAREHOLDERS / ST ENG I NEER I NG 08 Deepen customer engagement & domain expertise Leverage Group scale, strengthen technology & engineering core Defence & Public Security Commercial Group Engineering Centre Group Technology Office Group Corporate Functions and Shared Services Commercial Aerospace Urban Solutions Satcom Digital Systems & Cyber Land Systems Marine Defence Aerospace