LETTER TO SHAREHOLDERS 1 Computed using the average closing share price of the last trading days of 2024 and 2023. DELIVERING SHAREHOLDER VALUE THROUGH RETURNS AND GROWTH The Board of Directors has proposed a final dividend of 5 cents per ordinary share subject to shareholder approval at the upcoming AGM. Combined with the quarterly interim dividends of 12 cents per ordinary share, the total dividend for FY2024 will be increased to 17 cents per ordinary share from 16 cents per ordinary share in FY2023. This translates to a dividend yield of 3.97%1. Our commitment to delivering value to our shareholders is based on strong performance underpinned by a robust balance sheet, as reflected in our Aaa and AA+ ratings from Moody’s and S&P respectively. We maintain a forwardlooking financial strategy, ensuring that fund allocation — whether for dividends, strategic investments to drive growth, or debt reduction to actively manage our balance sheet — is carefully calibrated to balance immediate returns with long-term value creation. Building on this foundation, we unveiled our new five-year targets at our Investor Day 2025, finalised as this Letter went to print. These targets reflect the strengths of our fundamentals and the positive growth prospects of our Group. Our robust, forward-looking plan builds on growth momentum and core strengths while pursuing new opportunities. With a strong track record of disciplined execution, we remain committed to delivering good dividends and capturing growth, positioning us to thrive in a dynamic market and create lasting value for our shareholders. While our strategies are well-founded, we remain mindful of external factors and the execution risks inherent in any growth plan. We will approach these challenges with resolve, focusing on adaptability and resilience to navigate uncertainties effectively while staying firmly aligned with our growth objectives. As we continue our growth journey, we extend our heartfelt thanks to all our stakeholders, with special appreciation to our shareholders. Our employees remain the foundation of our success, with their dedication and hard work being instrumental in our pursuit of becoming a global technology, defence and engineering powerhouse. TEO MING KIAN CHAIRMAN INDEPENDENT DIRECTOR VINCENT CHONG GROUP PRESIDENT & CEO EXECUTIVE DIRECTOR 28 February 2025 TOTAL DIVIDEND FOR FY2024 17¢ FY2023: 16¢ We maintain a forward-looking financial strategy, ensuring that fund allocation... is carefully calibrated to balance immediate returns with long-term value creation 8 ST ENGINEERING | ANNUAL REPORT 2024
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