ST Engineering Annual Report 2015
ST Engineering Annual Report 2015
ST Engineering Annual Report 2015
Report
2015
engineering
your
future
engineering
your
future
Integrity
vision
Value Creation
mission
Bring value to our
customers and partners
by delivering total
integrated quality
solutions and support.
Courage
Commitment
values
CONTENTS
02
04
10
12
18
Financial Highlights
Letter to Shareholders
A Personal Note from the CEO
Board of Directors
Senior Management
26
56
58
60
61
91
108
273
IBC
Corporate Governance
Financial Report
Shareholding Statistics
Contact Information
Financial
Highlights
Revenue
6.34
Revenue Breakdown
By Customer Type
17.05
2014: 17.06
36
Defence
2014: $6.54b
64%
Commercial
15.0
2014: 15.0
Net Profit
529.0
2014: $532.0m
return on equity
By Location of Customers
24.8%
9%
Others
24%
USA
5%
2014: 24.9%
62%
Asia
Europe
0.47b
2014: $0.62b
By Location of Business Entity
order book
11.7b
1%
Others
24
USA
1%
Europe
2014: $12.5b
74%
Asia
return on sales
8.4%
2014: 8.2%
Aerospace
Electronics
Land Systems
Marine
Others
Revenue by sector
6.34b
2015
33%
27%
22%
15%
3%
6.54b
2014
32%
24%
21%
21%
2%
ebitda by sector
697.6m
2015
42%
31%
12%
15%
725.5m
2014
44%
-2%
29%
11%
18%
529.0m
2015
43%
31%
10%
16%
532.0m
2014
42%
29%
9%
20%
Letter to
Shareholders
Dear Shareholders
In 2015, ST Engineering again navigated
an uneven global business environment.
On one hand, the US economy returned
to sustained growth while on the other,
the Eurozone stayed economically
stagnant with business sentiment
adversely impacted by various events
such as the Greek debt crisis. Closer
to home in Asia, the slowing China
economy dampened business sentiment
and created headwinds across many
economic sectors. We also faced an
environment where low crude oil and
industrial commodity prices resulted
in a global inflation level that was
too low to stimulate the multiplier
effect required for business activity,
investment and GDP growth.
Given many headwinds we faced,
ST Engineering closed 2015 with a
revenue of $6.34b which is broadly
Letter to
Shareholders
to meet evolving market trends
and needs, including during difficult
economic cycles such as in the past
few years.
Above and beyond this, we identify
the technology drivers of tomorrow
and research how these will change
the world as we know it. For these
technology game-changers, we take a
position and address them at Grouplevel as the ST Engineering Group
so we can scale up more rapidly to be
in the right place for our customers
when the future arrives.
We Strengthened our Core Operations
Our aircraft maintenance, repair and
overhaul (or MRO) operations are
the largest in the world. While this
market is fiercely competitive, we are
still able to hold our leading position
globally. Our Aerospace sector further
invested in our Passenger-to-Freighter
(P2F) business by increasing our
shareholding in Elbe Flugzeugwerke
(EFW) to 55%. We entered into an
arrangement with Airbus where we
will carry out P2F conversions of the
A320 and A321 aircraft at the EFW
facility in Dresden, Germany. We have
a good market position for P2F with
our conversion capability for Boeing
757 and 767, Airbus A330 and now
the A320/321 aircraft. Our Aerospace
sector has added an aircraft seating
solutions business, further deepening
our one stop cabin interior solutions,
from aircraft cabin design, engineering
and product installation through to
certification.
Our Electronics sector is developing
new solutions for the Smart Cities
of tomorrow. In 2015, we introduced
a suite of new products designed to
provide connectivity for the smart
urban centres of tomorrow. We have,
for instance, created a suite of products
for healthcare services, providing
intelligent operations control to
hospitals, remote health monitoring of
patients as well as the ability to predict
system bottlenecks and infrastructure
stress. On another front, our rail
6
Board Movements
During 2015, we welcomed three
new directors to our Board Mr Lim
Sim Seng, MG Perry Lim Cheng
Yeow and Mr Lim Ah Doo. Perry is
a non-independent non-executive
Director while Sim Seng and Ah Doo
are independent Directors. Ah Doo is
2015
GDP
2015
$63.42014
$65.43%
$6.303$5.29
2014$5.32
20142015
$20.9
$2.9068%
$17.14%$1.91
$14
16%$6,500
29%28%$9.6$8,830
26
2015
33%27%
22%15%
74%24%
64%:36%
2015$2.932014
$2.4
27
606240
2015
2%
10
5 5
2015952015
15$4.677
20154.68%2014
4.08%
$117 (2014$125
) 3820162015
$14$2.522014
$17$6.86
2015
TeLEOS-1201512
550
TeLEOS-12016
TeLEOS-1
8x8Terrex
2 Amphibious
Combat Vehicle 1.1
2015,
- Air+
,N95Air+
,
,
Air+
Air+2015
Presidents Design Award
EFWA320
A321
757767A330
A320/321
2015
400
(Project Land 400)
Terrex
2015
40
75 Fearless
2015
20154
(NTU)
28
3D
3D
3D
2014
Air+
9
75,000Air+
MERS
(ST Engineering
Enabling Technology Centre
iLAT@
Enabling Village201510
(Enabling Village)
87
10
2015
2002
2013
2014
23,000
2016 37
9
A Personal Note
from the CEO
Dear shareholders,
What you have just read is the fourteenth
Shareholder Letter that I have written to
you together with my Chairman. It is also the
final one from me as the President & CEO of
this Group. At end-September 2015, I took
the decision to retire from this position while
recuperating from a mild stroke, and to hand
the baton to the next generation of business
leaders who will take ST Engineering forward.
As the Chief Executive of our Group since
2002, I have had the privilege to be part of
the management team that, over a period
of 14 years, took ST Engineering from being
largely dependent on business in Singapore to
a global engineering company that now serves
customers in more than 100 countries.
10
CEO
20159
(ST Engineering)
2002
CEO
CEO
(Vincent
Chong)
2016
11
Board of
Directors
10
7 Mr Venkatachalam
KRISHNAKUMAR
8 Mr Davinder SINGH
9 Dr Stanley LAI
Tze Chang
10 Mr KHOO Boon Hui
11 Mr QUEK See Tiat
12 Ms Olivia LUM Ooi Lin
11
12
13
15
16
17
14
12
13
Board of
Directors
Mr NG Chee Khern
Mr Ng Chee Khern, 50, is the
Permanent Secretary (Defence
Development) in MINDEF. He was
appointed a non-executive Director on
20 May 2014 and was last re-elected
Director on 23 April 2015. Prior to
this, Mr Ng had held various senior
positions in the SAF, including that of
Mr Venkatachalam KRISHNAKUMAR
Mr Venkatachalam Krishnakumar,
66, is Chairman of Oracle Financial
Services Software Pte. Ltd. (Singapore).
Prior to this, he had held senior
advisory roles at McKinsey and
Company, Barclays Bank PLC, Global
Retail and Commercial Banking and
DBS Bank. He was Chief Operating
Officer and Chief Financial Officer
Mr Davinder SINGH
Mr Davinder Singh, 58, is the CEO
of Drew & Napier LLC. He was
appointed an independent nonexecutive Director on 1 August 2007
and was last re-elected Director
14
15
Board of
Directors
MR lim ah Doo
Mr Lim Ah Doo, 66, was appointed
an independent non-executive Director
on 10 November 2015 and is due for
re-election at the 2016 AGM under
Article 104 of the Companys
Constitution. He was formerly the
President and subsequently the
non-executive Vice Chairman of RGE
Pte Ltd (formerly known as RGM
16
Mr NG Chee Khern
Mr Lim Ah Doo
Mr Venkatachalam
KRISHNAKUMAR
17
Senior
Management
18
Ravinder SINGH
Mr Ravinder Singh, 51, was
appointed President of ST Kinetics
in March 2015. He joined the Group
in August 2014 as Deputy President,
Corporate and Market Development
at ST Electronics. He joined the Group
after a 30-year career with MINDEF
and the Singapore Armed Forces
(SAF) where he held various senior
command and staff appointments.
In his last appointment in the SAF,
he served as Chief of Army. Before
that, he was Deputy Secretary
(Technology) in MINDEF. Mr Singh
NG Sing Chan
Mr Ng Sing Chan, 55, was
appointed President, ST Marine in
May 2010. Prior to this, Mr Ng was
Deputy President and President,
Defence Business of ST Marine.
He joined ST Marine in 1987 as an
engineer. Mr Ng left in 1991 and later
became the Deputy General Manager
of Pan-United Shipyard Pte Ltd.
He subsequently took on the positions
of President of Changshu Xinghua
Changjiang Dev Co and Executive
Director of Pan-United Marine Ltd
John G COBURN
General (Retired) John G Coburn, 74,
was appointed Chairman and CEO
of ST Engineerings US subsidiary,
VT Systems, in December 2001. Gen
(Ret) Coburn joined the Group after
an illustrious 39-year career with the
US Department of Defense, where
he commanded at all levels. Prior
to assuming this position, he was
Commanding General of the US Army
Materiel Command, one of the largest
19
knowing
where
In an age where few boundaries exist across
geographies and time zones, we are able to go where
our customers are and where they are going. While
seeking new markets, we are also simultaneously
extending our reach and capabilities by engaging
in collaborations and global partnerships.
Extends rail
electronics
solutions to
Ho Chi Minh City
Setting up greenfield
MRO facility in
Pensacola Florida
Provides internet
access to 45,000
students from the
Amazon Basin in
Brazils largest
distance learning
programme
Provides smart
solutions globally
including smart
lighting solutions in
New Zealand, France,
Israel and the US
Continues to export
120mm Super
Rapid Advanced
Mortar System
knowing
when
Timing is crucial when it comes to technology.
Catching the right wave at the right time ensures that
our new products are optimised to meet immediate
demand and expectations. By staying at the forefront
of technology, we are also able to create in anticipation
of future needs. We always strive to identify
opportunities that will hone our competitive edge.
Extends aircraft
cabin offerings with
seat solutions
Introduces AIR+ Smart Mask,
a protective facemask with
breakthrough innovation
Launches Singapores
first commercial
earth observation
satellite, TeLEOS-1,
into a 550km Near
Equatorial Orbit
Deepens
competencies in
robotics solutions
Introduces
new version of
8x8 wheeled
armoured vehicle
knowing
how
Technical know-how is just part of our advantage.
Our pursuit of productivity, human resource
development and sustainability allows us to build
a brighter future for our business, our people
and our community.
Supports
SkillsFuture
initiatives
PEOPLE
EXCELLENCE
HEALTH &
SAFETY
ENVIRONMENT
COMMUNITY
Awards 19
scholarships
to outstanding
students
Supports persons
with disabilities through
the ST Engineering
Enabling Technology
Centre in Enabling Village
Operating &
Financial Review
north america
Aerospace
Electronics
Land Systems
south america
Marine
Others
SINGAPORE
TECHNOLOGIES
ENGINEERING LTD
100%
Singapore Technologies Aerospace Ltd
100%
Singapore Technologies Electronics Limited
100%
Singapore Technologies Kinetics Ltd
100%
Singapore Technologies Marine Ltd
100%
Singapore Technologies Dynamics Pte Ltd
100%
ST Synthesis Pte Ltd
For complete Group structure,
please refer to www.stengg.com
26
100%
Vision Technologies Systems, Inc.
Europe
Asia
Middle east
Africa
Singapore
Australia
Group Overview
ST Engineering is an integrated engineering group that
provides innovative solutions and services in the Aerospace,
Electronics, Land Systems and Marine sectors. Incorporated
in 1997 and headquartered in Singapore, we rank among the
largest companies listed on the Singapore Exchange, and are
one of Asias leading engineering groups.
Our network of over 100 subsidiaries and associated
companies, supported by a workforce of about 23,000
allows us to serve customers globally. A leader in each of
our core businesses, ST Engineering leverages multi sector
capabilities to develop advanced solutions for commercial
and defence customers across industries.
Our Aerospace sector offers a wide spectrum of aircraft
maintenance, engineering and training services for both
military and commercial aircraft operators. These services
include airframe, components and engine maintenance,
27
Operating Review
& Outlook
robotics
ST Engineerings Next Frontier
29
Operating Review
& Outlook
30
contribution to
groups revenue
Revenue
33%
Aerospace
2,090m
2015
2,061m
2014
2015
2014
290.6m
283.0m
31
Operating Review
& Outlook
33
Operating Review
& Outlook
2015 REVIEW
The Electronics sector continues to focus
on expanding our core strengths in the key
areas of Intelligent Transportation Systems,
Satellite Communications and Information
Communications Technologies (ICT). In 2015,
we see robust demand for our solutions,
reflected in a steady stream of orders through
the year for all our business segments.
With the pace of urbanisation increasing
globally, we have been seeing growing
interest in our suite of smart city solutions
across multiple business segments such as
transportation, environment, healthcare
and communications. Smart solutions
showcased this year include the Galaxy M2M
Communications System (Galaxy) and the
Intelligent Aggregation Box (iAG Box) which
were exhibited at CommunicAsia 2015.
These innovations support the objectives of
building a Smart City by providing ubiquitous
connectivity for a variety of applications
and enabling greater collaboration between
different city stakeholders. The Galaxy
system, which provides a single platform
for multiple smart city and IOT (Internet of
34
contribution to
groups revenue
Revenue
27%
Electronics
1,709m
2015
1,583m
2014
2015
2014
191.0m
184.0m
35
Operating Review
& Outlook
36
Smart Cities
Urbanisation and advances in ICT
have created a demand for smart
functionality in everything. Globally,
there is a drive towards smart cities
with the focus on transportation,
environment and utilities, public
safety and security, and healthcare.
With an established track record
and wide-ranging solutions spanning
the entire value chain from sensors
to communications systems, data
management platforms, data analytics
and domain-specific operational
systems, The Groups Electronics
sector is well positioned to help
customers realise their ambitions
for smart and connected cities.
37
Operating Review
& Outlook
2015 Review
The Land Systems sector took steps to
expand our footprint in the global defence
market and pursued new growth areas in
our commercial business.
Automotive Defence
2015 saw us expanding our presence in the
global defence market with the launch
of the newest version of the Terrex 8x8
wheeled armoured vehicle, and participation
in key international tenders.
The Terrex 2 was unveiled amidst international
interest and anticipation. The newest addition
to our stable of proven armoured platforms is
a cutting edge 8x8 wheeled armoured vehicle,
encompassing superior mobility, innovative
survivability and network centricity that can
enhance the capabilities of global armed forces
to fight as a mobile, networked force. With the
new Terrex, we seek to address the wheeled
armoured vehicle and infantry fighting vehicle
segments two growing segments in the
international defence market.
38
contribution to
groups revenue
Revenue
22%
Land Systems
Automotive Commercial
Autonomous Vehicles
New Growth Area
During the year, we embarked into
the new growth area of robotics
and autonomous vehicle solutions.
ST Kinetics set up a new division,
Kinetics Advanced Robotics, to
spearhead the development and
commercialisation of robotics and
autonomous vehicle solutions.
ST Kinetics, jointly with ST Electronics,
collaborated with A*STARs Institute
for Infocomm Research to respond
to a Request for Information (RFI)
on self-driving vehicle technology
issued by Singapores Land Transport
Authority (LTA). The RFI sought
proposals on using self-driving vehicle
technology for land transport mobility
1,396m
2015
1,397m
2014
2015
2014
65.0m
56.2m
39
Operating Review
& Outlook
40
Defence
Reducing security threats continue
to be the focus of many nations.
Thus, there will be sustained demand
for advanced armoured platforms,
weapon systems and munitions in
the coming years as armed forces
look to replace ageing equipment
or procure new ones for new
capabilities. ST Kinetics will continue
to pursue international and local
defence programmes with our proven
platforms and solutions.
Commercial
ST Kinetics will continue to pursue
opportunities globally for its
intelligent driveline business with
our NexDrive and InfiniDrive range
of innovative transmissions. In the
area of robotics and autonomous
vehicle solutions, we will explore
new opportunities while delivering
the various autonomous vehicle
programmes we are involved in.
According to reports, investments
in public infrastructure in the US,
like the anticipated long term Federal
Highway spending programme,
will sustain road and other
infrastructure-related construction,
spurring the demand for road
construction equipment. VT LeeBoy
will continue to focus on enhancing
its product lines to meet the
infrastructure development needs
of the US states.
41
Operating Review
& Outlook
2015 REVIEW
Depressed oil prices and cutbacks in
exploration and production activities by oil
majors, caused a significant reduction in the
utilisation rate of drilling rigs worldwide. This
resulted in an oversupply of offshore and
subsea support vessels as many of them had
to be laid up. The shipbuilding segment of
the oil and gas industry entered a period of
adjustment as ship owners scaled back on their
newbuilding orders while waiting for market
conditions to improve.
To mitigate these headwinds, we focused on
ensuring our current shipbuilding projects
stayed on track in terms of costs, quality and
schedule. In shiprepair, we continued to deliver
excellent services with fast turnaround times,
and at the same time expanded our reach with
a wider agency network that now includes
Norway, Korea and Vietnam. In the US, we
continued to build on our good track record in
the second full year of shiprepair operations.
We participated in major exhibitions and
conferences including the International
Maritime and Defence Exhibition (Singapore),
42
contribution to
groups revenue
Revenue
15%
Marine
958m
2015
1,341m
2014
2015
2014
88.3m
122.8m
43
Operating Review
& Outlook
Shiprepair
Shiprepair in Singapore saw a
decline in activity during the year
due to the absence of major repairs
and conversions in the market. The
sector was also hit by the reduction
in maintenance expenses of the OSV
segment as more ships were laid up.
Projects delivered include the repair
of livestock carriers Ocean Drover,
Ocean Swagman, Bison Express and
Al Shuwaikh; fisheries vessels Demiku
and NOAA Oregon II; chemical tankers
Stolt Sun, Songa Eagle, Tasco 1 and
CPO Malaysia; seismic vessel BGP
Explorer and Duke; trailing suction
hopper dredger Cornelis Zanen; cargo
vessel Fair Player; research vessel
Fugro Stout; and multi-purpose
offshore vessel Lewek Atria, UOS
Navigator and Seven Eagle.
In a declining market where owners
are cutting maintenance costs,
we will deepen our focus on quality
service and faster turnaround times.
We will further strengthen our
relationship with repeat customers,
who currently contribute about 80%
of our shiprepair work, and ensure
that our offerings remain relevant
to their needs.
For the naval segment, we were
engaged in various upgrading, logistics
management and maintenance
programmes for the RSN, marine
police and foreign navies. These
included upgrading of the existing
Landing Ships Tank, extension in
scope of logistics management and
maintenance contracts to cover shore
units and new ships. Our focus on
operations and support services,
including engine servicing for overseas
navies, contribute to our reputation
as a Total Naval Solutions provider.
This, along with our established track
record in the naval segment, gives us a
competitive advantage, especially with
customers whose platforms we built.
44
Engineering
INDUSTRY OUTLOOK
Shipbuilding
45
Financial
Review
FINANCIAL POSITION
As at 31 December 2015, the Groups total
assets of $8,169m was $150m or 2% lower
than that of 31 December 2014. The lower
total assets were mainly due to lower cash
and advances from customers, partially offset
by increases in property, plant and equipment,
inventory & work-in-progress, and intangible
assets.
2015
1,709
1,370
1,943
1,694
Trade Receivables,
Deposits &
Prepayment
1,453
Inventories &
Work-in-Progress
Intangibles &
Other Assets
2014
1,578
1,311
1,802
1,916
Property, Plant
& Equipment
1,712
4%
19%
2%
5%
18%
China
USA
8%
46
2015
67
8%
2014
67
Europe
Others
CAPITAL EXPENDITURE
During the year, the Group continued to invest
for growth with capital expenditure of $293m
(2014: $240m). About 91% or $267m of the
total capital expenditure was for investments
in new capacity and capability. Additional
1%
8%
4%
Aerospace
16%
27%
13%
2015
Land Systems
Marine
2014
72%
Electronics
Others
35
18%
13%
1%
1%
Asia
21%
Europe
USA
2015
Others
2014
85%
78%
2015
242
2,362
1,367
2014
280
2,384
1,374
Equity
Others*
Financial
Review
TREASURY MANAGEMENT
ST Engineering operates internationally and is
exposed to financial risks, comprising currency,
interest rate, credit and liquidity risks. The
Group recognises that prudent management
of financial risks is important and has in place
a set of treasury policies and guidelines to
mitigate these risks. Treasury activities are
managed through the Group Treasury Division.
Banking Facilities
1,540
Trade
Finance
5,648
7,515
Interest
Rates
Swaps
& Cross
Currency
Swaps
2015 Utilised
466
701
596
Loans
2,232
7,202
19%
USA
Europe
2015
53%
2014
52%
22%
8%
20%
20%
48
Foreign
Exchange
Others
Liquidity
The Group takes an integrated approach to
cash management across its business units
through a sweep arrangement. Cash from
business units with surplus funds is lent to
those units which have funding requirements.
Further unutilised cash of the Group is
pooled and placed out as fixed deposits with
Financial Institutions of high credit rating
as well as managed through a portfolio of
investment bonds by a fund manager. As
at 31 December 2015, ST Engineerings cash
and cash equivalents including funds under
management was at $1.4b, compared to
$1.7b as at 31 December 2014. The decrease,
compared with 2014, was due to the utilisation
of cash for share buyback and the acquisition
of property, plant and equipment to support
growth.
During the year, effort to enhance yield was
made to tighten liquid funds left as working
capital. Funds under management increased
from $0.2b as at 31 December 2014 to
$0.5b as at 31 December 2015. Funds under
management which primarily invested in fixed
income instruments, earned higher yields
ranging from 1.50% to 4.95% per annum as
compared with interest income from fixed
deposits which earned an average yield of
0.95% in 2015 (2014: 0.87%).
65
RMB
2014
713
246
60
2015
175
2014
SGD
1,065 63
Borrowings
USD
2015
75
2 to 3 Years
75
238
927 16
690
4 to 5 Years
> 5 Years
16
2015
Floating
80%
20%
2014
63%
37%
49
Financial
Review
2015
2014
2013
0.5
0.4
0.6
465
624
930
(12)
467
672
252
686
856
15.4x
PBT before
Associates /
Joint Ventures
and Interest
Expense
16.8x
16.7x
Interest
Expense
Interest
Cover
Operating Activities
Compared to FY2014, net cash from operating
activities of $465 million in FY2015 was
lower by $159 million. This was mainly due to
unfavourable working capital movements from
inventories and work-in-progress, progress
billings in excess of work-in-progress, partially
offset by favourable working capital movement
from trade receivables.
Investing Activities
The Groups net cash used in investing activities
of $477 million in FY2015 was higher than that
of FY2014 by $320 million. The higher cash
outflow was due to increased purchases of
property, plant and equipment (by $49 million),
including aircraft for leasing, and investments
in bonds, net (by $259 million).
Financing Activities
611.7m
39.8m
2015
631.4m
37.9m
2014
742.8m
44.2m
2013
2015
2014
( 519 )
$
($925m)
Investing Activities
( 477 )
$
($157m)
Operating Activities
465m
624m
(1,200)
50
1,200
TAX
(6.8%)
(10.0%)
(11.5%)
4.7%
Dividend Yield
2015
(14.1%)
4.1%
2014
3.7%
3.9%
2013
7.6%
42.0%
2012
(16.2%)
(21.3%)
5.2%
47.2%
5.1%
2011
0
51
Financial
Review
EVA STATEMENT
2015
$M
2014
$M
572.0
593.5
Adjust for:
58.3
57.2
Interest expense
49.4
46.3
Others
(13.7)
(18.5)
666.0
678.5
(88.1)
(113.0)
NOPAT - (a)
577.9
565.5
3,971.0
4,038.1
5.5
5.6
(218.4)
(226.1)
359.5
339.4
6.7
5.1
366.2
344.5
The reported current tax is adjusted for the statutory tax impact of interest expense.
Note 2:
Monthly average equity plus interest bearing liabilities, timing provision and present value of operating leases.
2.6
14.6
368.8
359.1
1,367.1
Equity
2,362.0
Others
241.9
3,971.0
52
Note 3:
The Weighted Average Cost of Capital is calculated in accordance to ST Engineering Group EVA Policy as follows:
i) Cost of Equity using Capital Asset Pricing Model with market risk premium at 5.0% (2014 @ 5.0%);
ii) Risk-free rate of 2.15% (2014 @ 2.48%) based on yield-to-maturity of Singapore Government 10 years Bonds;
iii) Ungeared beta at 0.73 (2014 @ 0.74) based on ST Engineering risk categorisation; and
iv) Cost of Debt at 3.49% (2014 @ 3.07%) using actual cost of debt of the borrowings in US, Europe, China and Singapore.
Note 4:
UI refer to divestment of investment properties, subsidiaries and associates, long term investments and disposal of major property, plant and equipment.
Value Added
The Groups total value added for FY2015 of $2,702m was comparable to that of FY2014.
2015
$M
2014
$M
6,335.0
6,539.4
(3,792.5)
(4,022.0)
2,542.5
2,517.4
55.4
40.2
Other income
Finance income
56.2
43.5
(10.1)
(7.3)
58.3
57.2
2,702.3
2,651.0
1,807.7
1,739.2
118.4
136.5
39.7
37.9
Dividends to shareholders
497.6
498.8
2,463.4
2,412.4
187.3
170.5
36.3
48.2
Non-production costs
Total distribution
2.6
5.0
226.2
223.7
12.7
14.9
2,702.3
2,651.0
53
Financial
Review
5-year key financial data
2014
$M
2013
$M
2012
$M
2011
$M
6,335
6,539
6,633
6,380
5,991
697.6
725.5
815.2
795.0
742.7
EBIT
PBT
Net Profit
510.3
630.3
529.0
555.0
650.7
532.0
673.2
729.7
580.8
658.0
715.4
576.2
607.7
655.2
527.5
1,709
1,370
1,943
1,694
1,453
3,720
2,188
1,578
1,311
1,802
1,916
1,712
3,716
2,339
1,520
1,290
1,808
1,860
2,229
4,094
2,353
1,213
1,049
1,922
1,777
2,070
3,890
2,128
1,358
1,027
1,594
1,659
1,769
3,479
2,052
Share capital
Treasury shares
Capital and other reserves
Retained earnings
Non-controlling interests
896
(67)
48
1,255
129
889
(6)
24
1,225
132
853
71
1,192
144
782
(20)
1,133
118
723
10
1,033
110
Financial Indicators
Earnings per share (cents)
Net assets value per share (cents)
Return on sales (%)
Return on equity (%)
Return on total assets (%)
Return on capital employed (%)
17.05
68.74
8.4
24.8
6.5
14.6
17.06
68.38
8.2
24.9
6.5
14.0
18.73
68.14
8.9
27.4
6.8
15.4
18.76
61.51
9.2
30.4
7.3
17.4
17.28
57.79
9.0
29.9
7.3
19.8
Dividend
Gross dividend per share (cents)
Dividend yield (%)
Dividend cover
15.00
4.68
1.13
15.00
4.08
1.14
15.00
3.86
1.25
16.80
5.16
1.11
15.50
5.07
1.11
22,388
282,965
23,630
1,813.7
0.29
22,671
288,449
23,464
1,745.8
0.27
22,837
290,456
25,434
1,789.7
0.27
22,560
282,795
25,540
1,760.2
0.28
22,193
269,944
23,771
1,633.2
0.27
366.2
9.1
16,357
344.5
8.4
15,197
413.8
10.2
18,118
437.9
12.1
19,411
405.0
12.0
18,250
2,702.3
120,704
1.49
0.78
0.43
2,651.0
116,935
1.52
0.83
0.41
2,731.7
119,616
1.53
0.91
0.41
2,710.5
120,149
1.54
1.06
0.42
2,494.5
112,398
1.53
0.90
0.42
Productivity Data
Average staff strength (numbers)
Revenue per employee ($)
Net profit per employee ($)
Employment costs ($m)
Employment costs per $ of revenue ($)
Economic Value Added ($m)
Economic Value Added spread (%)
Economic Value Added per employee ($)
Value added ($m)
Value added per employee ($)
Value added per $ of employment costs ($)
Value added per $ of gross property, plant and equipment ($)
Value added per $ of revenue ($)
54
2015
$M
Aerospace
Electronics
Land Systems
Marine
Others
6,335m
630.3m
2015
2015
6,539m
650.7m
2014
2014
6,633m
729.7m
2013
2013
6,380m
715.4m
2012
2012
5,991m
655.2m
2011
2011
529.0m
14
2015
12
532.0m
2014
11.7b
10.6b
10
580.8m
2013
6
576.2
2012
527.5m
2011
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
55
Investor
Relations
ST Engineering is committed to high standards
of transparency and timely disclosures to
the investing community. We aim to provide
comprehensive information through various
platforms to enable stakeholders to make
informed decisions.
Our investor relations team engages investors
and analysts regularly to communicate the
Groups results, strategies and outlook. These
meetings, conducted as one-on-one meetings,
teleconferences, sell-side conferences,
non-deal roadshows or luncheons, allow
for candid discussion of the Groups various
opportunities and challenges. In 2015, the
team held about 200 investor meetings.
Quarterly financial results briefings are
webcast live and are accessible by the public
and viewers can pose questions realtime.
Analysts and the media are invited to these
briefings, which are led by the President
and CEO of the Group and supported by
the CFO and senior management. All SGX
announcements, marketing press releases
and results briefing presentation materials
are archived on our corporate website.
Through these varied channels, we offer
platforms for long term and open dialogues
with our various stakeholders, so that they
gain a better understanding of our businesses,
while we better understand our investors
concerns.
Q1
Q2
56
Q3
Q4
Shareholding
18%
Singapore
Asia (ex Singapore)
12%
Europe
2015
5%
North America
64%
Others
(including unidentified
holdings and holdings
below analysis threshold)
1%
4,000
ST Engineering
Share Price
3.50
3,500
STI
3.00
3,000
2.50
2,500
2.00
2,000
1.50
1,500
1.00
1,000
0.50
500
0
Jan
Feb
Mar Apr
May Jun
Jul
Nov Dec
2015
Source: Bloomberg
Dividend
10.00
5.00
2015
Ordinary
Special
8.00
7.00
2014
7.00
8.00
2013
7.00
9.80
2012
7.00
2011
15.00
8.50
15.00
15.00
16.80
15.50
Awards
BUSINESS
EXCELLENCE
Internal Audit Excellence
Award 2015 Hall of Fame
at the 16th Investors
Choice Awards
by Securities Investors
Association (Singapore)
ST Engineering
Business Excellence
Gold Jacket
by the SQA Governing
Council and the SQA
Management Committee
ST Engineerings
Harnek Singh for
significant contributions
to the BE initiative
Defence
Total Defence Award 2015
NS Advocate Award for
Small and Medium-sized
Enterprises
by MINDEF
ST Electronics
(Info-Security)
STELCOMMS
WORKPLACE
SAFETY AND HEALTH
LTA Annual Safety Award
Convention (ASAC)
by Land Transport Authority
Most Improved
Contractor Award
ST Electronics
Accident Free Million
Man-hours Award
(Category 3)
ST Electronics
Certificate of Merit
(E&M Category)
ST Electronics
Certificate of Excellence
(E&M Category)
ST Electronics
Jerome Lee, representing the Air+ Smart Mask development team, giving
his acceptance speech at the Presidents Design Award. The Air+ Smart
Mask and Micro Ventilator was one of the winners of Design of the Year
2015 at the Presidents Design Award Singapore.
58
PRODUCT
QUALITY
People
Top 50 Products of
China Construction
Machinery Award
by Chinese trade magazine,
Construction Equipment
& Maintenance
Jiangsu Huatong
Kinetics SPL60 Paver
Best Aftersales Importer
2014 from MAN Trucks
& Bus
ST Kinetics
Top 100 Guizhou Enterprise
Award
by Guizhou Government
Guizhou Jonyang Kinetics
Allison Transmission
Performance Rewards
Programme Gold Level
Location Award
SDDA
Service Outsourcing
Enterprise Award
Key Talents
by Xiamen Bureau
Commerce
STATCO
investor
relations
Community
59
Corporate
Information
Board of Directors
Company Secretaries
Principal Bankers
Mrs Chua Su Li
Registered Office
ST Engineering Hub
1 Ang Mo Kio Electronics Park Road
#07-01
Singapore 567710
Tel: (65) 67221818
Fax: (65) 67202293
www.stengg.com
Share Registrar
Auditors
KPMG LLP
16 Raffles Quay #22-00
Hong Leong Building
Singapore 048581
Ms Ang Fung Fung
(Partner-in-charge)
(Date of Appointment: 24/04/2013)
60
Citibank N.A.
8 Marina View
#21-01 Asia Square Tower 1
Singapore 018960
DBS Bank Ltd
12 Marina Boulevard
Level 45, MBFC Tower 3
Singapore 018982
Oversea-Chinese Banking
Corporation Limited
65 Chulia Street
#10-00 OCBC Centre
Singapore 049513
Risk
Governance
62
Enterprise Risk
Management System
63
Measuring
Performance
64
Material
Long-Term Risks
65
Sustainability
Governance
71
Assessing
Materiality
72
Sustainability
Performance
74
risk and
sustainability
61
Risk
Governance
th
line of
defence
rd
line of
defence
nd
line of
defence
st
line of
defence
62
Board
Enterprise Risk
Management System
ERM
Process
Vision / Goals
Bu s
ERM
reports
i n e s s A n a l ys i s
R
r ti
Common Lanaguage
Business
Goals,
Objectives &
Strategies
te
g ie
r it
ra
St
i sa
tio
k
Ris
i cation
ntif
Ri s k R
e po
Ide
isk
ng
Oversight Structure
Ri s k A s s e
nt
s s me
ri o
&P
Change
Management
Continuous
Improvement
Communication
Information
Sharing
Awareness /
Training
63
Measuring
Performance
Financial
Performance
Total operating expenditures
Net cash flows from
operations
Customer Focus
Order book and new orders
Customer satisfaction
operational
excellence
Participation and completion
in value innovation projects
Improvements in production,
quality and procurement
processes
people excellence
Leader competencies
Employee satisfaction
technology edge
and new capabilities
New capabilities, products
or competencies
Unique inventions filed
or granted
64
Material
Long-Term Risks
The Group has identified the following longterm material risks. These risks have been
reviewed and discussed with the Risk Review
Committee and endorsed by the Board.
Ethics and
Governance risk
Regulatory Compliance
Occupational Health
and Safety
Cyber Risk
Growth and
Competition risk
Product and Technology
Obsolescence
Merger and Acquisition
Operations risk
Financial risk
Credit Risk
Foreign Exchange Risk
Material
Long-Term Risks
Our Values
Stakeholder expectations of
business, government and society
are diverse and changing, even
as the world becomes more
interconnected through modern
communications technologies.
A successful business needs to
consider these varying expectations
to execute its strategies smoothly.
1.
Prevent
Codes of Business Conduct and Ethics
Gift and Entertainment Policy
Conflict of Interest Policy
Employment Screening
Vendor Due Diligence
Agent Due Diligence
3.
Respond
Inquire
Investigate
Report
Mitigate
Recover
2.
Detect
Whistle Blowing Channel
Audit and Substantive Testing
Data Analytics
67
Material
Long-Term Risks
Number of Employees
Singapore
2014
2015
1,885
5,198
US
182
Europe
34
China
37
Total
1,885
5,451
ST Engineering conducted
Fraud Risk Assessments across
Singapore operations between
2013 and 2014. The Fraud Risk
Assessments were also rolled out
to our Chinese entities in 2015
with plans to extend them to our
US entities from 2016.
Number of employees
Percentage of employees
68
2013
2014
2015
1,424
3,043
11,891
10%
21%
79%
Corruption by intermediaries;
Corruption by employees;
Gifts and entertainment to
government officials construed
as kickbacks or bribes.
ST Engineering IT conducts
regular reviews of its IT controls,
policies governance framework
and infrastructure to ensure that
they continue to be relevant to
the evolving cyber security threat
landscape. We work with Internal
and External auditors to regularly
conduct end-to-end audits to
ensure compliance with controls,
policies and governance framework
as well as identify weaknesses in
systems or procedures.
ST Engineering is committed
to Safety Before Profit. We
recognise that good health and
safety improve work effectiveness,
employee morale and our
reputation; we are also aware
of the negative impacts resulting
from lost time, higher costs
and delays.
69
Material
Long-Term Risks
4. FINANCIAL RISK
4.1 Credit
5. OPERATIONS RISK
70
Sustainability
Governance
Senior management
addressing questions
from employees at the
Business Excellence
Seminar
71
Assessing
Materiality
impact consideration
Stakeholder
financial
Quality,
health &
safety
compliance
72
reputation
Customer Health
& Safety
High
Employment
Labour Practices &
Grievances Mechanism
Training &
Education
Anti-Corruption
Occupational
Health & Safety
Compliance
(Products & Services)
Energy &
Greenhouse Gas
Emissions
Labour
Management
Relations
Medium
Non-Discrimination
Procurement
Practices
Supplier
Assessment
Local
Communities
Environmental
Products
& Services
Low
Stakeholder influence
Freedom of
Association
& Collective
Bargaining
Economic
Performance
Low
Medium
High
73
Sustainability
Performance
What we said we
would do in 2015
What we did
in 2015
What we will do
in 2016
Commenced alignment
of environmental
management approach
of US operations
Start to include
US operations in
sustainability report
progressively from 2015
Reported qualitatively
on US sustainability
efforts
Innovation
People
Excellence
Review questions
for Employee Opinion
Survey 2015
Organised
Team Excellence
Convention 2014
based on enhanced
assessment criteria
Organise Team
Excellence
Convention 2015
Conducted the
Employee Opinion
Survey 2015 with
updated questions
Implement action
plans to address issues
raised in the Employee
Opinion Survey 2015
Organised Team
Excellence
Convention 2015
Organise the
Team Excellence
Convention 2016
Organise Business
Excellence
Seminar 2015
Organised Business
Excellence
Seminar 2015
Implemented energy
management system
in line with ISO 50001
Participated in the
Carbon Disclosure
Project (CDP) report
for first time
Tracked water
consumption
No significant fines
or sanctions for
non-compliance with
environmental laws
and regulations
74
Continue journey to
reduce GHG intensity
by 16% on a business
as usual basis for
Singapore operations
by 2025 with 2010
as the base year
Implemented various
initiatives to reduce
GHG emission
All significant
business entities in
Singapore developed
and submitted their
respective Water
Efficiency Management
Plans to local regulators
No significant fines
or sanctions for
non-compliance with
environmental laws
and regulations
No significant fines
or sanctions for
non-compliance with
environmental laws
and regulations
All Singapore
operations achieved
ISO 50001 certification
Installation of
Solar PV system
Validation of GHG via
ISO 14064 Certification
Implement
ISO 14001:2015
Benchmark Pollution
Control and Waste
Management practices
Continue journey to
reduce GHG intensity
by 16% on a business
as usual basis for
Singapore operations
by 2025 with 2010 as
the base year
Health
& Safety
2014
Performance
What we said we
would do in 2015
What we did
in 2015
What we will do
in 2016
Improved noise
conservation
programme for
employees identified
to be at risk for
Early Noise Induced
Deafness (E-NID)
Strengthen safety
culture and improve
health and safety
performance through
continuous review of
programmes
Review existing
practices against Total
WSH Guidelines and
identify areas for
improvement
No significant fines
or sanctions for noncompliance with safety
laws and regulations
No significant fines
or sanctions for noncompliance with safety
laws and regulations
Achieved accident
frequency rate (AFR)
and accident severity
rate (ASR) below
national benchmarks
No significant fines
or sanctions for noncompliance with safety
laws and regulations
Organise campaigns
and activities to
promote health and
safety
Benchmark best
practices through
cross audits
Improve on both the
AFR and ASR
Engaged a consultant
to help develop a
Group-wide sustainable
procurement strategy
Develop ST Engineering
Sustainable
Procurement Policy
and Code of Conduct
for Suppliers
Established the
statement of
commitment
to sustainable
procurement, and
reported on
the subject
Adopted London
Benchmarking Group
(LBG) guidelines
Improve reporting
based on LBG
guidelines
Extended strategic
community
development
partnership that
leverages
ST Engineerings
unique expertise
Continue community
initiatives, including
strategic and long-term
partnerships
Continued reporting
based on LBG
guidelines, but
with more focus on
community benefits
and their impacts
Develop other
strategic areas that
would leverage
ST Engineerings
unique expertise
SUPPORTING COMMUNITIES
Community
Focused community
efforts to benefit the
persons with disabilities
75
Sustainability
Performance
FY2015 Initiatives & Performance
INNOVATION & PRODUCTIVITY
ST Engineerings strong capabilities in
engineering allow us to translate our
research into industry applications,
generating new products and services.
Our efforts to nurture an innovative
spirit continue. In 2015, the Technology,
Intellectual Property and Innovation
Committee organised the ThinkerSparks
and InnoChamps Competitions as well
as the Intellectual Property Workshop.
The latter is organised every other year
to promote innovation and awareness of
intellectual property in ST Engineering.
About 1,000 employees including senior
and middle management and technical
employees from various business areas
and units attended the workshop. The
theme of the workshop was Enhancing
Business Competitiveness.
We met our target spending in R&D.
Additionally, more than 75% of
employees were involved in contributing
towards productivity initiatives during
the year. Below are some examples.
Technology to improve everyday lives
ST Engineering-NTU Corporate Lab
With the rising trend in robotics and
autonomous systems, the vision for
76
The AIR+ Smart Mask features three new innovations three sizes in
small, medium and large designed to fit the typical Asian face profile; a
built-in valve to improve the ease and speed in which exhaled air vents
from the mask; and an attachable, lightweight and rechargeable micro
ventilator that eliminates the unpleasant build-up of heat, moisture and
carbon dioxide inside a conventional mask after prolonged use. The micro
ventilator (the AIR+) when used with the Smart Mask, is able to reduce
relative humidity inside the mask by up to 40% and reduce temperature
by up to 4C.
The AIR+ Smart Mask provides better seal protection for all ages including
children and the elderly, and is recommended for frontline workers
who have to wear masks for prolonged periods in exposed areas in the
healthcare, construction, and mining industries.
AIR+ Smart Mask was named Design of the Year in 2015 Presidents
Design Award Singapore
Sustainability
Performance
78
PEOPLE EXCELLENCE
During the year, our People Excellence
and Learning Organisation (PELO)
committee successfully organised
the Business Excellence Seminar
which was attended by 945
employees in Singapore from the
junior management level and up. The
theme for the year was Embracing
Challenges to Achieve Excellence.
At the seminar, awards for Ideas
and Innovation, Team Excellence
and Environment, Occupational and
Workplace Safety were presented and
the winners recognised. Our President
& CEO, Deputy CEOs and the Chairmen
of the respective Business Excellence
Committees engaged the participants
in the lively Conversation with Our
Leaders segment.
In celebration of Singapores 50th
birthday in 2015, we took the
opportunity to thank our pioneers
who have played a key role in bringing
By Geography
3%
1%
Others
32%
Aerospace
29%
Electronics
7%
Europe
and Others
8%
Marine
By Qualifications
28%
Land Systems
19%
Americas
13%
Asia Pacific
(excl. Singapore)
Secondary
level or lower
67%
Singapore
16%
O & A
levels or
equivalent
17%
Trade
Certificates
38%
Degree or
equivalent
22%
Diploma or
equivalent
79
Sustainability
Performance
Career Development
3,141
Female
11,810
Male
Supervised Workers*
184
Female
2,244
Male
8.1
38.6
*
80
No.
Company
Award Type
No. of Awards
ST Aerospace
1 Gold
1 Silver
SHARP Award^
ST Electronics
^ The Safety and Health Award for Projects (SHARP) is an annual award presented by the Workplace Health and Safety Council in collaboration with the Ministry
of Manpower to give recognition to companies or organisations that have performed well in safety and health through implementation of sound safety and
health management systems.
81
Sustainability
Performance
Aerospace
Land Systems
Marine
Marine
National Average
(Marine)
Electronics
National Average
(Manufacturing)
2.0
3.0
2.5
1.5
2.0
1.0
1.5
1.0
0.5
0.5
0.0
0.0
2013
2014
2015
2013
2015
2014
Aerospace
Land Systems
Marine
Marine
National Average
(Marine)
Electronics
National Average
(Manufacturing)
100
200
80
150
60
100
40
50
20
0
2013
82
2014
2015
2013
2014
2015
Aerospace
Electronics
Land
Systems
Marine
24
11
24
21
Audiometric Examination
(Percentage of at-risk staff who attended)
100%
100%
100%
100%
100%
100%
100%
100%
100% of employees identified to be at risk of hearing and respiratory occupational hazards attended audio metric
examination and respiratory protection training respectively.
Environment
Climate Change & Energy
Climate change is a global issue that
will require new and innovative
technologies to mitigate its effects.
ST Engineering acknowledges the role
we play in international efforts to
mitigate and adapt to the effects
of climate change by developing
low-carbon and clean energy
technologies as well as the business
risks and opportunities arising
from climate change.
The Energy Sub-Committee, the
Technology, Intellectual Property
and Innovation Committee and the
Business Foresight Committee keep
abreast of climate change trends and
issues and review the impacts and
opportunities that arise.
Some of the trends and corresponding
risk impacts reviewed by these
committees included:
1. Countries and customers
requirements on emissions
reporting prior to conduct
of business;
Sustainability
Performance
Environmental Protection
In 2015, there were no significant
fines or incidents relating to noncompliance with environmental laws
and regulations.
Stage of development
Total estimated
annual CO2 savings
To be implemented
135
Implementation commenced
11
3,226
Implemented
411
Energy Consumption
2013
2014
2015
336,243
364,311
338,334
538,247
535,920
480,353
226.05
238.09
207.76
2013 and 2014 figures were adjusted as a result of the greenhouse gas emission audit. Figures are restated accordingly.
84
Water
The total water consumption of
the Group in 2015 was 728,000m3,
which was lower than the target of
817,000m3. This substantial savings
was a result of the implementation of
the following initiatives:
(1) to collect and channel rain water
for common toilet flushing;
(2) to reduce the flotation pool water
level for vehicle testing; and
(3) to replace potable water with
NEWater
28.24
26.51
26
23.31
24
22
20
2013
2015
2014
2015 (Unaudited)
Scope 2
28,663
55,990
Scope 3
7,193
2014 (Audited)
35,685
61,942
9,167
2013 (Audited)
Scope 1
31,527
59,707
11,316
85
Sustainability
Performance
SUSTAINABLE PROCUREMENT
In 2015 we formalised a Sustainable
Procurement Vision and Statement
which sets out the Groups
commitment to incorporate the
following principles into our
procurement activities:
1. We practise value for money
procurement
2. We do not compromise on the
quality and safety of our products
and services
3. We practise ethical procurement
4. We protect the health and safety
of our workers
5. We protect the environment
2015
2,245
Aerospace
35%
Land Systems
Electronics
39%
2014
Marine
2,479
20%
2013
1,797
Singapore
11%
Europe
US/Canada
75%
86
Asia (excl.
Singapore)
Australia/
New Zealand
COMMUNITY
87
Sustainability
Performance
27
50%
Management
13%
Issues Addressed
19%
Social Welfare
1%
15%
12%
53%
Environment
Education
Health
Others
88
89
Sustainability
Performance
United States
Vision Technologies Systems, Inc.
(VT Systems) was established as the
regional headquarters for all our legal
entities in the US. Reporting to the
President & CEO of ST Engineering,
the CEO of VT Systems has
profitability oversight for the US as
a region. Additionally, he has legal and
financial responsibilities, including
sustainability management. The US
headquarters provides the regional
views and expertise, develops and
promotes strategies that leverage
US group synergies, as well as
develops and manages key customer
relationships.
Sustainability programmes are
developed with due consideration
to the legal and environmental
legislation in the US. Beyond
compliance, VT Systems, in November
2013, established an Environmental
Sustainability Policy which has an
environmental framework with four
areas of focus: energy management,
greenhouse gas emissions reporting,
waste management and sustainable
procurement. Features of this
framework include alignment to
ISO 50001, and reduction targets
for energy and waste.
Each US subsidiary has an Energy
Policy, trained Energy Managers
and a programme manual to address
the four areas of focus in the
environmental framework. Given
the diverse business operations,
each business unit sets its own targets
for energy, greenhouse gas emissions,
waste reduction and sustainable
procurement.
VT Systems is committed to providing
equal opportunities for all employees
Female
3,657
Male
Supervised Workers*
267
Female
956
Male
90
Corporate
Governance
ST Engineerings framework of
corporate governance reflects an
institutional mindset of accountability
and transparency at all levels of
the Group. We believe that good
corporate governance is not only
the Boards responsibility, but that
of the management and every level
of the organisation. Good corporate
governance is the foundation for
long-term value creation of the Group.
This Report sets out ST Engineerings
corporate governance processes,
practices and activities in 2015 with
specific reference to the guidelines
of the Singapore Code of Corporate
Governance 2012 (the Code).
BOARD MATTERS
Boards Conduct of its Affairs
(Principle 1)
The Board is accountable to
shareholders for overseeing the
effective management of the business.
To this end, the Board relies on the
integrity and due diligence of its senior
management and its external advisors
and auditors. In addition to its
statutory responsibilities, the Board
reserves the following key matters for
its decision:
setting the Groups overall long
term strategic objectives and
ensuring that decisions made are
consistent with these objectives;
approval of annual budgets, major
funding proposals, investment and
divestment proposals in accordance
with the approved delegation of
authority framework;
appointment of the President
& CEO, Board succession
and appointments on Board
committees;
appointment of key management
personnel and succession planning
as an ongoing process;
91
Corporate
Governance
No. of
Meetings
Attendance
Average^
Board
83%
Audit Committee
95%
Type of Meeting
100%
Nominating Committee
100%
100%
79%
67%
89%
Tenders Committee#
Minutes of the Board Committee meetings are made available to all Board members.
* The Business Investment and Divestment Committee (BIDC) is given the authority to consider investment/divestment proposals of subsidiaries that exceed the
threshold limit of these subsidiaries. Beyond the BIDCs limit, such proposals are directly considered by the Board. During the year, there were no investment/
divestment proposals that fell within the remit of the BIDC. Hence no meeting occurred during the year.
# Matters of the Tenders Committee during the year were resolved via resolutions in writing.
^ The computation of average attendance at Board meetings took into account the absence of Mr Tan Pheng Hock, who was on medical leave of absence during
part of the 2nd half of 2015. Mr Tan is a member of the Business Investment and Divestment Committee, Senior Human Resource Committee, Risk Review
Committee, Budget and Finance Committee as well as Research, Development and Technology Committee.
93
Corporate
Governance
94
Tenders Committee
(established on 5/1/1998)
Research, Development
and Technology Committee
(established on 1/8/2003)
Nominating Committee
(established on 4/12/2002)
BOARD MEMBER
Audit Committee
(established on 15/1/1998)
The composition of the Board and Board committees as at 31 December 2015 is tabulated below:
C
M
Mr Ng Chee Khern
Mr Venkatachalam Krishnakumar
Mr Davinder Singh
M
C
M
M
95
Corporate
Governance
Access to Information
(Principle 6)
The Management furnishes Board
members with monthly management
reports, providing updates on key
operational activities and financial
analysis. The Board also has
unrestricted access to the President
& CEO, President & CEO (Designate),
Deputy CEO, the CFO, management
and the Company Secretary as well
as the internal and external auditors
and the risk management team. The
Board may also seek independent
professional advice, if necessary.
Board papers are sent to directors at
least three days prior to meetings in
order for directors to be adequately
prepared for the meetings.
The Company Secretary attends all
Board meetings and ensures that
board procedures are followed. The
Company Secretary advises the Board
on governance matters including their
timely disclosure obligations. She
also assists with the co-ordination of
continuing training for board members
to keep the Board up-to-date on
corporate governance matters.
The appointment and removal of
the Company Secretary is a matter
for the Board as a whole to decide.
REMUNERATION MATTERS
Procedures for Developing
Remuneration Policies
(Principle 7)
Level and Mix of Remuneration
(Principle 8)
Disclosure on Remuneration
(Principle 9)
96
97
Corporate
Governance
PSP2010
The PSP2010 is established with
the objective of motivating Senior
Management Executives to strive for
sustained growth and performance
in the Group.
Pursuant to the PSP2010, the ERCC
has decided to grant contingent
awards on an annual basis, conditional
on meeting targets set for a threeyear performance period. With
effect from financial year 2010, the
performance measures used in PSP
grants under PSP2010 are:
Absolute Total Shareholder Return
(TSR) against Cost of Equity hurdles
(i.e. measure of absolute Wealth
Added); and
Relative TSR against Defensive
Stock Index, the constituents of
which are selected defensive
stock companies that have similar
market risk as the Group and are
listed on the Singapore Exchange
Securities Trading Limited (SGX).
A minimum threshold performance is
required for any performance shares
to be released to the recipient at
the end of the performance period.
The actual number of performance
shares released will depend on the
achievement of set targets over the
performance period, capped at 170%
of the conditional award.
The final PSP award is conditional
on the vesting of the shares under
the RSP2010 which have the same
performance end period.
The Group has clawback policies for
the unvested shares under PSP2010 in
the event of exceptional circumstances
of restatement of the financial results
of the Group subsequent to an earlier
misstatement, or of misconduct or
fraud resulting in any financial loss
to the Group.
98
The Group did not meet the predetermined target performance level
for PSP awards granted based on the
performance period from financial
year 2013 to 2015.
RSP2010
The RSP2010 is established with the
objective of motivating managers
and above to strive for sustained
long-term growth and superior
performance in the Group. It also
aims to foster a share ownership
culture among employees within the
Group and to better align employees
incentives with shareholders interest.
Pursuant to the RSP2010, the ERCC
has decided to grant contingent
awards on an annual basis, conditional
on targets set for a one-year
performance period. The performance
measures, set based on the Group
corporate objectives, are:
Group Net Profit; and
Group EBITDA Margin.
A minimum threshold performance is
required for any restricted shares to
be released to the recipient at the end
of the performance period. The actual
number of shares released will depend
on the achievement of set targets over
the performance period, and will be
determined by the ERCC at the end
of the performance period, capped at
150% of the conditional award. The
shares will be released equally over
four consecutive years.
The Group has clawback policies for
the unvested shares under RSP2010
in the event of exceptional
circumstances of restatement
of the financial results of the
Group subsequent to an earlier
misstatement, or of misconduct or
fraud resulting in any financial loss
to the Group.
NON-EXECUTIVE DIRECTOR
REMUNERATION
Non-executive Directors (NEDs) have
remuneration packages consisting of
Directors fees and attendance fees,
which are approved in arrears by
shareholders for services rendered
in the previous year. The Directors
fee policy comprises a basic retainer,
attendance and additional fees for
serving on Board committees.
For services rendered in financial year
2015, eligible NEDs will receive 70%
of the total Directors fees in cash and
30% of the total Directors fees in the
form of restricted shares which are
governed by the terms of RSP2010,
subject to shareholders approval at
its AGM in April 2016.
600,000
Basic Retainer
Director
72,000
Additional/Committee Fees
Audit Committee:
- Chairman
- Member
Executive Resource and Compensation Committee and Risk Review Committee:
- Chairman
- Member
Other Committee:
- Chairman
- Member
Attendance Fees
Per Board Meeting
Per Board Committee Meeting
52,000
29,000
35,000
18,000
29,000
14,000
2,000
1,000
99
Corporate
Governance
45,000
33,750
22,500
11,250
NEDs who hold public sector appointments follow DCAC guidelines and will not be eligible for the shares component of the
NEDs compensation. 100% of their compensation in cash is payable to DCAC, where applicable.
Summary compensation table for directors for the year ended 31 December 2015 (Group):
Payable by the Company
Directors Total Fees *5
Executive Directors
Tan Pheng Hock
Vincent Chong Sy Feng
(Alternate to Tan Pheng Hock)
Total
100
Salary *1
$
Variable *2
$
Benefits *3
$
Share-based
Compensation *4
$
Cashbased
$
Sharebased
$
Total
$
1,289,400
1,547,226
159,225
1,531,829
4,527,680
513,410
1,173,878
76,605
553,313
2,317,206
1,802,810
2,721,104
235,830
2,085,142
6,844,886
Summary compensation table for directors for the year ended 31 December 2015 (Group):
Payable by the Company
Directors Total Fees *5
Non-Executive directors
Salary *1
$
Variable *2
$
Benefits *3
$
Share-based
Compensation *4
$
Cashbased
$
Sharebased
$
Total
$
420,000
180,000
600,000
95,900
41,100
137,000
Ng Chee Meng
14,178 (a)(b)
14,178
4,500 (a)(c)
4,500
Ng Chee Khern
21,250 (a)
21,250
15,750
15,750
32,959 (d)
32,959
Venkatachalam Krishnakumar
201,000
201,000
98,000
42,000
140,000
123,900
53,100
177,000
81,128 (e)
34,241
115,369
81,200
34,800
116,000
70,700
30,300
101,000
11,250 (a)
11,250
33,297 (f)
14,270
47,567
10,072
(g)
4,317
14,389
(h)
434,128
1,749,212
Lim Ah Doo
Total
1,315,084
Payable by Subsidiaries
Directors Total Fees *5
Executive Directors
Salary *1
$
Variable *2
$
Benefits *3
$
Share-based
Compensation *4
$
Total
Cashbased
$
251,750 (i)
6,877 (i)(j)
258,627
Sharebased
$
Total
$
251,750
6,877
258,627
101
Corporate
Governance
Summary compensation table for directors for the year ended 31 December 2015 (Group):
Payable by Subsidiaries
Directors Total Fees *5
Non-Executive directors
Salary *1
$
Variable *2
$
Benefits *3
$
Share-based
Compensation *4
$
Cashbased
$
Sharebased
$
Total
$
12,500
12,500
52,500
22,500
75,000
31,500
13,500
45,000
2,813 (a)
2,813
3,500
1,500
5,000
1,643 (a)
Total
104,456
1,643
37,500
141,956
*1 Salary includes base salary and employer CPF for the financial year ended 31 December 2015.
*2 Variable includes Monthly Performance Bonus (which is 1/12 of the 13th month salary or AWS paid over 12 months), Performance Target Bonus paid & EVA-based
incentive for the financial year ended 31 December 2015.
The EVA-based incentive for the year is added to the balance brought forward in each of the executives individual EVA Bank. 13 of the total is paid out, with the
balance 23 carried forward to the next year. A negative EVA-based incentive will result in a clawback of individual EVA Bank.
*3 Benefits provided for employees are comparable with local market practices. These include medical, dental, insurances, transport, etc.
*4 The PSP and RSP Contingent Awards to be granted in 2016 for work done in FY2015 are based on the fair values as determined using the Monte Carlo simulation
model
*5 The directors cash fees and share awards will only be paid/granted upon approval by the shareholders at the forthcoming AGM of the Group.
(a) Fees for public sector directors are payable to a government agency, the DCAC.
(b) Pro-rated. Ng Chee Meng resigned as Director on 18 August 2015.
(c) Pro-rated. MG Lim Cheng Yeow Perry was appointed Director on 20 October 2015.
(d) Pro-rated. Quek Poh Huat retired as Director on 23 April 2015.
(e) Fees for Mr Khoo Boon Hui are payable to DCAC and Mr Khoo himself in respect of services rendered for the period from 1 January 2015 to 20 January 2015 and
from 21 January 2015 to 31 December 2015 respectively.
(f) Pro-rated. Lim Sim Seng was appointed DIrector on 15 May 2015.
(g) Pro-rated. Lim Ah Doo was appointed Director on 10 November 2015.
(h) COL Alan Goh Kim Hua was appointed Alternate Director to MG Lim Cheng Yeow Perry on 20 October 2015.
(i) Fees are payable to Singapore Technologies Engineering Ltd.
(j) Pro-rated. Vincent Chong Sy Feng was appointed Alternate Director to Tan Pheng Hock on 1 December 2015.
The following information relates to remuneration of directors of Singapore Technologies Engineering Ltd:
102
2015
2014
$250,000 to $499,999
Below $250,000
15
12
Total
18
14
Summary compensation table for key Management executives for the year ended 31 December 2015 (Group):
Remuneration
$
Salary *1
%
Variable *2
%
Benefit *3
%
Share-based *4
%
Total
%
26%
48%
3%
23%
100%
30%
44%
4%
22%
100%
Ng Sing Chan
34%
37%
5%
24%
100%
29%
41%
5%
25%
100%
$7,470,625
*1 Salary includes base salary and employer CPF for the financial year ended 31 December 2015.
*2 Variable includes Monthly Performance Bonus (which is 1/12 of the 13th month salary or AWS paid over 12 months), Performance Target Bonus paid & EVA-based
incentive for the financial year ended 31 December 2015.
The EVA-based incentive for the year is added to the balance brought forward in each of the executives individual EVA Bank. 13 of the total is paid out, with
the balance 23 carried forward to the next year. A negative EVA-based incentive will result in a clawback of individual EVA Bank.
*3 Benefits provided for employees are comparable with local market practices. These include medical, dental, insurances, transport, etc.
*4 The PSP and RSP Contingent Awards to be granted in 2016 for work done in FY2015 are based on the fair values as determined using the Monte Carlo simulation
model.
Corporate
Governance
The Company has complied with Rules
712 and 715 of the SGX Listing Manual
in relation to the engagement of its
auditors.
Corporate
Governance
into the Group post acquisition. The
Committee continues to monitor the
implementation of risk management
policies and procedures and receives
updates to the risk registers
maintained by the respective sectors.
Major reviews include compliance with
major laws and regulations, as well
as business disruption risks and their
continuity plans.
d) Risk Management Self Assurance
Process
The Risk Management Self Assurance
is a process whereby the business risk
owners, together with the respective
control owners, evaluate and assess
the operational effectiveness of the
controls established to manage the
key risks that are reported in Sector
Risk Dashboard.
On the basis of this self assessment,
annually, the RACs and RRC will
receive from the respective Sector
Presidents and Sector Group Financial
Controllers, written assurances on
the adequacy and effectiveness of
the system of risk management and
controls to manage the significant
risks.
For more information on the
Companys material long term risks,
and risk management framework,
please refer to the Risk Governance
section at page 105 of this Annual
Report for more details.
106
financial
report
CONTENTS
109
Directors Statement
126
121
129
122
134
123
255
124
Balance Sheets
256
Directors Statement
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
We are pleased to submit this annual report to the members of the Company together with the audited nancial statements of
the Group and of the Company for the nancial year ended 31 December 2015.
In our opinion:
(a)
the nancial statements set out on pages 122 to 254 are drawn up so as to give a true and fair view of the nancial position
of the Group and of the Company as at 31 December 2015, and changes in equity of the Group and of the Company, and
the nancial performance and cash ows of the Group for the year ended on that date in accordance with the provisions
of the Singapore Companies Act, Chapter 50 and Singapore Financial Reporting Standards; and
(b)
at the date of this statement, there are reasonable grounds to believe that the Company will be able to pay its debts as
and when they fall due.
The Board of Directors has, on the date of this statement, authorised these nancial statements for issue.
DIRECTORS
The directors of the Company in ofce at the date of this statement are as follows:
Kwa Chong Seng
Tan Pheng Hock
Koh Beng Seng
MG Perry Lim Cheng Yeow
Ng Chee Khern
Quek Tong Boon
Venkatachalam Krishnakumar
Davinder Singh s/o Amar Singh
Dr Stanley Lai Tze Chang
Khoo Boon Hui
Quek See Tiat
Olivia Lum Ooi Lin
Dr Beh Swan Gin
Lim Sim Seng
Lim Ah Doo
COL Alan Goh Kim Hua
Vincent Chong Sy Feng
(Chairman)
(President and Chief Executive Ofcer)
(Appointed on 20 October 2015)
DIRECTORS INTERESTS
Except as disclosed in this statement, no director who held ofce at the end of the nancial year had interests in shares,
debentures, warrants, share options or awards of the Company or of related corporations either at the beginning of the
nancial year or date of appointment if later, or at the end of the nancial year.
109
Directors Statement
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
31 December 2015
521,700
4,122,603
212,505
184,209
59,237
75,540
4,600
30,000
713,937
571,600
4,892,937
223,805
250,109
70,237
93,240
14,300
5,100
30,000
713,937
The Company
Ordinary Shares
Kwa Chong Seng
Tan Pheng Hock
Koh Beng Seng
Venkatachalam Krishnakumar
Davinder Singh s/o Amar Singh
Dr Stanley Lai Tze Chang
Quek See Tiat
Olivia Lum Ooi Lin
Lim Ah Doo
Vincent Chong Sy Feng
1 January 2015
or date of
appointment if
later
31 December 2015
Exercise
price
$
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
2.37
2.57
3.01
2.84
3.23
Exercisable period
The Company
Options to Subscribe for Ordinary Shares
Tan Pheng Hock
110
8.2.2006
11.8.2006
10.2.2007
11.8.2007
16.3.2008
to
7.2.2015
to 10.8.2015
to
9.2.2016
to 10.8.2016
to 15.3.2017
Directors Statement
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
31 December 2015
The Company
Conditional Award of 250,000 shares under PSP2010
for performance period 2012 to 2014
Tan Pheng Hock
0 to 425,000 #1
#2
0 to 297,500 #1
0 to 297,500 #1
0 to 425,000 #1
0 to 425,000 #1
0 to 214,200 #1
0 to 640,900 #1
0 to 214,200 #1
(377,000 shares)
(126,000 shares)
23,808 #3
43,872 #3
21,936 #3
0 to 129,000 #4
#5
111
Directors Statement
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
31 December 2015
The Company
Unvested shares under RSP2010 arising from
release of Conditional Award of 86,000 shares
for performance period 2013 to 2014
Tan Pheng Hock
27,090 #3
0 to 144,000 #4
0 to 144,000 #4
289,440 #3
289,440 #3
431,374 #3
431,374 #3
0 to 111,000 #6
0 to 211,500 #6
0 to 111,000 #6
(434,160 shares)
(647,061 shares)
(141,000 shares)
(74,000 shares)
Related Corporations
Ascendas Funds Management (S) Limited
Unit holdings in Ascendas Real Estate Investment Trust
Quek See Tiat
112
N.A.
34,000
Directors Statement
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
31 December 2015
N.A.
$250,000
100,000
100,000
300,000
300,000
8,000
8,000
2,000
100,000
185,000
2,000
100,000
185,000
2,500
2,500
400,000
2,000,000
Related Corporations
Ascendas Pte Ltd
Regular Notes Ascendas Pte Ltd 2012
Without Fixed Maturity Variable Rate Subordinated
Ng Chee Khern
Mapletree Commercial Trust Management Ltd.
Unit holdings in Mapletree Commercial Trust
Venkatachalam Krishnakumar
Mapletree Greater China Commercial Trust Management Ltd.
Unit holdings in Mapletree Greater China Commercial Trust
Khoo Boon Hui
Mapletree Industrial Trust Management Ltd.
Unit holdings in Mapletree Industrial Trust
Venkatachalam Krishnakumar
Mapletree Logistics Trust Management Ltd.
Unit holdings in Mapletree Logistics Trust
Quek Tong Boon
Venkatachalam Krishnakumar
Lim Ah Doo
Perpetual Securities
Venkatachalam Krishnakumar
Neptune Orient Lines Limited
Ordinary Shares
Kwa Chong Seng
113
Directors Statement
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
31 December 2015
Related Corporations
Neptune Orient Lines Limited
S$400 million 4.25% Notes due 2017
Kwa Chong Seng
$250,000
$250,000
420,000
420,000
36,085
36,594
3,733
3,733
$500,000
$500,000
26,466
3,350
1,520
2,720
2,030
34,000
1,800
3,087
680
100,460
26,466
3,350
1,520
2,720
2,030
54,000
1,800
3,087
680
100,460
114
Directors Statement
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
31 December 2015
4,000
10,000
4,000
10,000
25,150
15,716
5,000
25,150
15,716
5,000
30,000
30,000
Related Corporations
SMRT Corporation Ltd
Ordinary Shares
Quek Tong Boon
Dr Beh Swan Gin
StarHub Ltd
Ordinary Shares
Tan Pheng Hock
Venkatachalam Krishnakumar
Quek See Tiat
TeleChoice International Limited
Ordinary Shares
Tan Pheng Hock
*1
#1
A minimum threshold performance over a 3-year period is required for any performance shares to be released and the actual number of performance
shares to be released is capped at 170% of the conditional award.
#2
For this period, Mr Tan Pheng Hock was awarded 297,500 shares upon partial achievement of targets set. The balance of the conditional award covering
the period from 2012 to 2014 has thus lapsed.
#3
Balance of unvested restricted shares to be released according to the stipulated vesting periods.
#4
A minimum threshold performance over a 2-year period is required for any restricted shares to be released. The actual number of restricted shares to
be released is capped at 150% of the conditional award and will be delivered in phases according to the stipulated vesting periods.
#5
For this period, Mr Tan Pheng Hock was awarded 54,180 shares upon partial achievement of targets set. The balance of the conditional award covering
the period from 2013 to 2014 has thus lapsed.
#6
A minimum threshold performance over a 1-year period is required for any restricted shares to be released. The actual number of restricted shares to be
released is capped at 150% of the conditional award and will be delivered in phases according to the stipulated vesting periods.
There was no change in any of above-mentioned directors interest in the Company between the end of the nancial year and
21 January 2016.
115
Directors Statement
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
SHARE PLANS
The Executive Resource and Compensation Committee (ERCC) is responsible for administering the ST Engineering Share Plans.
The ERCC members are Mr Kwa Chong Seng (Chairman), Mr Venkatachalam Krishnakumar and Dr Stanley Lai Tze Chang.
As at 31 December 2015, no participants have been granted options and/or have received shares under the ST Engineering
Share Plans which, in aggregate, represent 5% or more of the total number of new shares available under the ST Engineering
Share Plans.
The aggregate number of new shares issued pursuant to the RSP2010 and PSP2010 did not exceed 8% of the issued share
capital of the Company.
Except as disclosed below, there were no options granted and no shares awarded by the Company to any person to take up
unissued shares of the Company.
(a)
ESOP
(i)
Aggregate options
exercised/lapsed
since
commencement
to end of
nancial year
under review
Aggregate options
outstanding
as at end of
nancial year
under review
2,602,500
204,000
152,500
2,002,500
204,000
152,500
600,000
5,405,566
5,405,566
193,717,858
176,081,117
17,636,741
187,320
187,320
Participant
116
(ii)
The options granted by the Company do not entitle the holders of the options, by virtue of such holdings, to any
right to participate in any share issue of any other company.
(iii)
During the nancial year, ordinary shares in the Company were issued pursuant to the exercise of options to take
up unissued shares of the Company.
Directors Statement
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
PSP2010 (PSP)
The PSP is established with the objective of motivating senior management staff to strive for sustained long-term growth
and performance in ST Engineering and its subsidiaries (ST Engineering Group). Awards of performance shares are granted
conditional on performance targets set based on the ST Engineering Group corporate objectives.
Pursuant to the PSP, the ERCC has decided to grant awards on an annual basis, conditional on targets set for a performance
period, currently prescribed to be a 3-year performance period. The performance shares will only be released to the recipient
at the end of the performance qualifying period. A specied number of performance shares shall be released by the ERCC to
the recipient and the actual number of performance shares will depend on the achievement of set targets over the respective
performance period. A minimum threshold performance is required for any performance share to be released and the actual
number of performance shares to be released is capped at 170% of the conditional award.
The performance measures used in PSP grants are Absolute Total Shareholder Return (TSR) against Cost of Equity hurdles
(i.e. measure of absolute Wealth Added); and Relative TSR against Defensive Stock Index, the constituents of which are selected
defensive stock companies that have similar market risk as the Group and are listed on the Singapore Exchange Securities
Trading Limited (SGX).
In addition to PSP performance targets being met, the ERCC decided that the nal award for PSP is conditional upon the
performance targets for RSP that has the same end of performance period being met. Known as the plan trigger condition, this
is to create alignment between senior management and other employees. The nal award for PSP 2013 is therefore conditional
on the performance targets for RSP 2014, which has the same end of performance period in December 2015, being met.
Participant
Conditional
awards
granted
during
the nancial
year under
review
0 to 640,900
0 to 214,200
Awards
released
during the
nancial
year under
review
Aggregate
conditional
awards
granted since
commencement
to end of
nancial year
under review
Aggregate
awards
released since
commencement
to end of
nancial year
under review
Aggregate
conditional
awards not
released as at
end of nancial
year under
review
297,500
0 to 2,213,400
0 to 214,200
595,000
0 to 1,363,400
0 to 214,200
1,529,222 0 to 12,617,400
3,075,043
0 to 6,724,375
PSP2010
Director of the Company
Tan Pheng Hock
Vincent Chong Sy Feng
Group Executives
(including Tan Pheng Hock
and Vincent Chong
Sy Feng)
0 to 3,131,230
117
Directors Statement
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
RSP2010 (RSP)
The RSP is established with the objective of motivating managers and above to strive for sustained long-term growth and
superior performance in ST Engineering Group. It also aims to foster a share ownership culture among staff within the
ST Engineering Group and to better align staffs incentive scheme with shareholders interest.
Pursuant to the RSP, the ERCC has decided to grant awards on an annual basis, conditional on targets set for a performance
period, currently prescribed to be a 1-year performance period. The actual number of restricted shares delivered will depend
on the achievement of set targets over the respective performance period. This will be determined by the ERCC at the end of
the qualifying performance period and released equally to the recipient over a 4-year vesting period.
Prior to 2015, RSP were granted on a 2-year performance period with a 3-year vesting period in the ratio of 50%, 25% and
25% consecutively.
A minimum threshold performance is required for any restricted share to be released while the maximum number of restricted
shares to be delivered is capped at 150% of the conditional award.
The targets measured over a 1-year performance period are set based on ST Engineering Group corporate objectives. The
performance measures used for the 1-year performance period are ST Engineering Group Net Prot After Tax and EBITDA Margin.
Prior to 2015, the performance measures used for the 2-year performance period are ST Engineering Group EVA Spread and
EBITDA Margin.
Since 2011, the awards granted under the ST Engineering RSP2010 to the Non-Executive Directors (other than those from the
public sector) are outright shares with no performance and vesting conditions but with a Moratorium on selling. These shares
will form up to 30% of their total compensation with the remaining 70% payable in cash.
118
Directors Statement
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
Participant
Conditional
awards/
awards
Awards
granted
released
during the
during the
financial year financial year
under review under review
Aggregate
conditional
awards/
Aggregate
awards
awards
granted since
released since
Aggregate
commencement commencement
awards not
to end of
to end of
released
financial year
financial year
as at end of
under review
under review financial year
Aggregate
conditional
awards not
released
as at end of
financial year
under review
RSP2010
Director of the
Company
Kwa Chong Seng
Tan Pheng Hock
Koh Beng Seng
Venkatachalam
Krishnakumar
Davinder Singh
s/o Amar Singh
Dr Stanley Lai Tze
Chang
Quek See Tiat
Olivia Lum Ooi Lin
Vincent Chong
Sy Feng
Non-Executive
Directors of the
Company and
its subsidiaries
(including current
and former
directors)
49,900
0 to 211,500
11,300
49,900
72,834
11,300
71,600
0 to 772,500
44,600
71,600
188,130
44,600
49,026
0 to 355,500
15,900
15,900
61,500
61,500
11,000
11,000
42,000
42,000
17,700
9,700
5,100
17,700
9,700
5,100
67,700
14,300
5,100
67,700
14,300
5,100
0 to 111,000
360,407
0 to 1,515,751
683,937
720,814
0 to 111,000
211,900
211,900
692,400
692,400
Group Executives
(including
Tan Pheng Hock and
Vincent Chong
Sy Feng)
0 to 7,683,275
4,072,904
0 to 41,773,286
11,854,591
2,933,999
0 to 14,205,624
119
1. 109-157.indd 119
8/3/16 11:01 am
Directors Statement
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
AUDIT COMMITTEE
The Audit Committee comprises ve independent non-executive directors, one of whom is also the Chairman of the Committee.
The members of the Audit Committee at the date of this report are as follows:
Koh Beng Seng (Chairman)
Venkatachalam Krishnakumar
Dr Stanley Lai Tze Chang
Quek See Tiat
Lim Ah Doo
The Audit Committee carried out its functions in accordance with Section 201B of the Singapore Companies Act, Chapter 50,
the SGX Listing Manual and the Code of Corporate Governance.
The Audit Committee met during the year to review the scope of the internal audit functions and the scope of work of the
statutory auditors, and the results arising therefrom, including their evaluation of the system of internal controls. The Audit
Committee also reviewed the assistance given by the Companys ofcers to the auditors. The consolidated nancial statements
of the Group and the nancial statements of the Company were reviewed by the Audit Committee prior to their submission to
the directors of the Company for adoption.
In addition, the Audit Committee has reviewed the requirements for approval and disclosure of interested person transactions,
reviewed the procedures set up by the Group and the Company to identify and report and where necessary, seek approval
for interested person transactions and, with the assistance of the internal auditors, reviewed interested person transactions.
The Audit Committee has full access to management and is given the resources required for it to discharge its functions. It has
full authority and the discretion to invite any director or executive ofcer to attend its meetings. The Audit Committee also
recommends the appointment of the external auditors and reviews the level of audit and non-audit fees.
The Audit Committee has recommended to the Board of Directors that the auditors, KPMG LLP, be nominated for re-appointment
as auditors at the forthcoming Annual General Meeting of the Company.
The Company has compiled with Rules 712 and 715 of the SGX Listing Manual in relation to the engagement of its auditors.
AUDITORS
The Auditors, KPMG LLP, have indicated their willingness to accept re-appointment.
On behalf of the Board of Directors
120
KPMG LLP
Public Accountants and
Chartered Accountants
Singapore
25 February 2016
121
Group
Note
Revenue
Cost of sales
Gross prot
Distribution and selling expenses
Administrative expenses
Other operating expenses
Prot from operations
Other income
Other expenses
Other income, net
Finance income
Finance costs
Finance income/(costs), net
Attributable to:
Shareholders of the Company
Non-controlling interests
2014
$000
6,335,023
(5,052,897)
6,539,433
(5,220,934)
1,282,126
1,318,499
(179,444)
(469,128)
(123,283)
(180,309)
(467,687)
(115,530)
510,271
554,973
55,747
(299)
55,448
45,175
(5,000)
40,175
56,191
(49,948)
6,243
43,550
(45,197)
(1,647)
2015
$000
10
44
58,340
630,302
57,182
650,683
(98,659)
531,643
(113,693)
536,990
529,039
2,604
531,643
531,952
5,038
536,990
17.05
17.04
17.06
17.04
11
Consolidated Statement
of Comprehensive Income
for the year ended 31 December 2015
(Currency - Singapore dollars)
Group
Note
2015
$000
2014
$000
531,643
536,990
(3,883)
4,050
(2,805)
36,372
(2,020)
(58,327)
(9,891)
19,968
36
(860)
1,336
36
32,874
564,517
50
(48,884)
488,106
559,078
5,439
564,517
482,522
5,584
488,106
36
36
44
Balance Sheets
as at 31 December 2015
(Currency - Singapore dollars)
Group
Note
Company
2015
$000
2014
$000
2015
$000
2014
$000
ASSETS
Non-current assets
Property, plant and equipment
Subsidiaries
Associates and joint ventures
Investments
Intangible assets
Long-term receivables, non-current
Finance lease receivables, non-current
Deferred tax assets
Amounts due from related parties, non-current
Derivative nancial instruments, non-current
12
13
14
15
16
17
18
19
22
43
1,708,779
461,560
328,684
736,970
5,340
523
105,551
4,806
25,790
3,378,003
1,577,523
478,352
127,211
671,022
2,735
973
106,318
4,806
24,263
2,993,203
3,997
1,194,799
17,657
4,700
355,028
1,576,181
4,568
1,197,716
17,657
7,000
50,000
81
1,277,022
Current assets
Inventories and work-in-progress
Trade receivables
Amounts due from related parties, current
Advances and other receivables
Long-term receivables, current
Finance lease receivables, current
Short-term investments
Bank balances and other liquid funds
20
21
22
23
17
18
24
25
1,943,004
1,319,714
56,582
333,811
354
3,173
182,969
951,494
4,791,101
1,802,073
1,319,101
66,382
530,298
11,375
6,872
119,279
1,470,723
5,326,103
470,376
5,299
82,091
557,766
497,070
3,597
404,876
905,543
8,169,104
8,319,306
2,133,947
2,182,565
871,246
1,702,649
20,553
257,524
568,575
124,628
65,647
106,531
730
1,778
3,719,861
809,637
1,667,180
29,364
245,072
725,347
164,660
29,820
43,590
1,126
148
3,715,944
20,619
1,742
5,528
27,889
26,961
196,988
8,112
232,061
1,071,240
1,610,159
529,877
673,482
Total assets
EQUITY AND LIABILITIES
Current liabilities
Advance payments from customers, current
Trade payables and accruals, current
Amounts due to related parties, current
Provisions
Progress billings in excess of work-in-progress
Provision for taxation
Short-term bank loans
Long-term bank loans, current
Lease obligations, current
Other loans, current
26
27
28
20
29
29
29
29
Balance Sheets
as at 31 December 2015
(Currency - Singapore dollars)
Group
Company
2015
$000
2014
$000
2015
$000
2014
$000
700,908
229,535
134,815
705,567
293,962
18,706
310
92,052
700
11,615
146
2,188,316
899,279
274,155
108,484
658,424
267,532
17,547
441
98,759
1,000
11,260
1,871
2,338,752
11,538
644,274
655,812
17,006
407,413
424,419
Total liabilities
5,908,177
6,054,696
683,701
656,480
Net assets
2,260,927
2,264,610
1,450,246
1,526,085
895,926
(66,870)
113,277
(65,495)
1,255,214
2,132,052
128,875
2,260,927
889,426
(6,529)
116,323
(92,057)
1,225,040
2,132,203
132,407
2,264,610
895,926
(66,870)
(3,073)
72,512
551,751
1,450,246
1,450,246
889,426
(6,529)
74,865
568,323
1,526,085
1,526,085
8,169,104
8,319,306
2,133,947
2,182,565
Note
Non-current liabilities
Advance payments from customers, non-current
Trade payables and accruals, non-current
Deferred tax liabilities
Bonds
Long-term bank loans, non-current
Lease obligations, non-current
Other loans, non-current
Deferred income
Other long-term payables, non-current
Derivative nancial instruments, non-current
Amounts due to related parties, non-current
26
19
29
29
29
29
30
31
43
27
32
33
35
36
37
44
Note
Share Treasury
capital
shares
$000
$000
Capital
Other
reserves reserves
$000
$000
Retained
earnings
$000
interests
The Group
At 1.1.2014
Total
116,323
(44,651)
1,191,958
2,116,241
531,952
531,952
5,038
536,990
(2,020)
(2,020)
(2,020)
(57,327)
(57,327)
(1,000)
(58,327)
36
(9,891)
18,422
(9,891)
18,422
1,546
(9,891)
19,968
36
1,336
1,336
1,336
36
50
50
50
(49,430)
(49,430)
546
(48,884)
(49,430)
531,952
482,522
5,584
488,106
36,815
(19,559)
17,256
17,256
(6,529)
21,574
(498,857)
21,574
(6,529)
(498,857)
9,368
96
9,368
21,670
(6,529)
(498,857)
(18,193)
(18,193)
36,815
(6,529)
2,015
(498,857)
(466,556)
(194)
(194)
(4)
(4)
729
(8,656)
729
(8,656)
(4)
36,815
(6,529)
2,011
(498,857)
(466,560)
(16,850) (483,410)
13
(13)
132,407 2,264,610
36
33
38
889,426
(6,529) 116,323
Total
equity
$000
852,611
Noncontrolling
Total
interests
$000
$000
143,673 2,259,914
(8,729) (475,285)
Note
Share Treasury
capital
shares
$000
$000
Capital
reserves
$000
Other
reserves
$000
Retained
earnings
$000
interests
The Group
At 1.1.2015
Total
(6,529)
116,323
529,039
529,039
2,604
531,643
(3,883)
(3,883)
(3,883)
3,658
3,658
392
4,050
36
(2,805)
33,929
(2,805)
33,929
2,443
(2,805)
36,372
36
(860)
(860)
(860)
30,039
30,039
2,835
32,874
30,039
529,039
559,078
5,439
564,517
6,500
(1,144)
5,356
5,356
33
(89,776)
16,501
16,501
(89,776)
639
81
639
16,582
(89,776)
38
29,435
(3,046)
(17,689)
(497,604)
8,700
(497,604)
6,500 (60,341)
(3,046)
36
Total
equity
$000
889,426
Noncontrolling
Total
interests
$000
$000
132,407 2,264,610
(129)
8,571
(497,604)
(10,813)
(10,813)
(10,222) (567,045)
(2,406)
(2,406)
(5,194)
(7,600)
6,445
6,445
6,500
(60,341)
(3,046)
(4,738)
(497,604)
(559,229)
(8,971) (568,200)
1,261
(1,261)
128,875 2,260,927
895,926
(66,870) 113,277
Note
Share
capital
$000
Treasury
shares
$000
Capital
reserves
$000
Share-based
payment
reserve
$000
Retained
earnings
$000
Total
$000
interests
The Company
At 1.1.2014
Total comprehensive income for the year
Prot for the year
Total comprehensive income for the year
852,611
72,754
564,416
1,489,781
502,764
502,764
502,764
502,764
36,815
(6,529)
(19,559)
21,670
(498,857)
17,256
21,670
(6,529)
(498,857)
36,815
889,426
(6,529)
(6,529)
2,111
74,865
(498,857)
568,323
(466,460)
1,526,085
At 1.1.2015
889,426
(6,529)
74,865
568,323
1,526,085
481,032
481,032
481,032
481,032
6,500
(89,776)
(1,144)
16,582
5,356
16,582
(89,776)
29,435
(3,073)
(17,791)
(497,604)
8,571
(497,604)
6,500
895,926
(60,341)
(66,870)
(3,073)
(3,073)
(2,353)
72,512
(497,604)
551,751
(556,871)
1,450,246
Consolidated Statement
of Cash Flows
for the year ended 31 December 2015
(Currency - Singapore dollars)
Group
Note
2015
$000
2014
$000
630,302
650,683
(58,340)
170,394
6,216
(1,190)
(343)
299
(59)
(10,529)
4,000
942
(212)
(272)
(283)
16,582
(14,804)
(15)
39,752
(23,499)
(3)
16,898
143
775,979
(57,182)
154,318
885
(1,310)
(519)
(2,640)
(2,797)
(47)
10,829
3,210
1,087
638
2,108
2,892
7,109
21,670
(15,592)
(152)
37,874
(23,629)
(2)
16,188
805,621
(99,619)
(156,772)
36,405
174,200
13,057
15,765
(13,285)
(8,973)
(2,506)
(27,855)
(138,130)
(33,656)
12,873
2,078
(875)
548,686
27,857
(111,093)
465,450
17,475
10,809
(91,592)
(27,658)
34,891
(21,499)
12,065
(4,508)
(9,122)
43,767
(19,001)
(37,263)
12,191
7,224
52
733,452
23,662
(132,792)
624,322
Consolidated Statement
of Cash Flows
for the year ended 31 December 2015
(Currency - Singapore dollars)
Group
Note
2015
$000
2014
$000
2,736
81,228
14,300
272
51,393
3
(273,040)
(345,182)
(22,499)
13,441
(477,348)
4,543
22,000
147,057
3,887
3,280
5,220
(640)
(272)
38,840
2
(223,771)
(90,172)
(622)
(30,878)
(67)
(35,896)
(157,489)
639
(156)
(113,122)
(1,125)
5,356
8,571
(89,776)
216,445
1,615
5,000
(7,600)
(497,604)
(10,813)
(37,322)
736
(519,156)
9,368
(369)
(471,990)
(1,550)
(824)
17,256
(6,529)
80,435
(194)
(498,857)
(18,193)
(34,504)
1,105
(924,846)
(531,054)
1,462,612
12,561
944,119
(458,013)
1,920,924
(299)
1,462,612
25
Consolidated Statement
of Cash Flows
for the year ended 31 December 2015
(Currency - Singapore dollars)
On 30 September 2015, the Group acquired an additional 50% interests in Singapore Precision Repair and Overhaul
Pte Ltd (SPRO) for a cash consideration of $8,150,000. As a result, the Groups equity interest in SPRO increased from
50% to 100%, obtaining control of SPRO.
SPRO specialises in the repair and overhaul of aircraft landing gear systems and components. The acquisition is the result
of the shareholders ongoing review of the business strategy and focus for SPRO and aligns with the Groups strategy to
develop its Singapore base as the centre of excellence for landing gear maintenance, repair and overhaul.
In the three months to 31 December 2015, SPRO contributed revenue of $6,811,000 and prot of $919,000. If the acquisition
had occurred on 1 January 2015, management estimates that revenue and net prot would have been $27,148,000 and
$3,221,000 respectively. In determining these amounts, management has assumed that the fair value adjustments that
arose on the date of acquisition would have been the same if the acquisition had occurred on 1 January 2015.
(ii)
On 1 September 2015, the Group has reclassied its investment in STELOP Pte. Ltd. (STELOP) from a joint venture to
a subsidiary following the changes made to the shareholders agreement. STELOP provides design and development,
manufacturing, maintaining and sale of electro-optical products and systems and the provision of related services.
In the four months to 31 December 2015, STELOP contributed revenue of $16,260,000 and net prot of $120,000. If the
acquisition had occurred on 1 January 2015, management estimates that the contributions to consolidated revenue and
net loss would have been $40,020,000 and $370,000 respectively. In determining these amounts, management has
assumed that the fair value adjustments that arose on the date of acquisition would have been the same if the acquisition
had occurred on 1 January 2015.
Consolidated Statement
of Cash Flows
for the year ended 31 December 2015
(Currency - Singapore dollars)
Carrying amount
before acquisition
$000
10,959
8,184
171
32,420
24,195
77
21,591
97,597
10,959
324
171
32,420
24,195
77
21,591
89,737
(29,630)
(1,169)
(19,599)
(1,574)
(2,411)
(54,383)
(29,630)
(1,169)
(19,599)
(1,574)
(1,075)
(53,047)
43,214
(6,468)
36,746
1,732
(10,529)
27,949
36,690
8,150
19,799
27,949
(8,150)
21,591
13,441
Consolidated Statement
of Cash Flows
for the year ended 31 December 2015
(Currency - Singapore dollars)
On 20 May 2014, the Group acquired 100% of Aviation Academy of America, Inc (AAA) for a cash consideration of
US$811,000. AAA specialises in the provision of ight training services for pilots.
(ii)
On 30 December 2014, the Group acquired additional interest of 1% in an associate, GFM Electronics S.A. de C.V. (GFME)
for a cash consideration of $713,000. GFME provides design and implementation, distribution and sales of high technology
systems, services and products, in the communications area, as well as electronics systems.
Following the completion of the nal purchase price allocation during the nancial year, no adjustments were made to the
provisional fair value originally recorded in the prior year.
The acquisitions had the following effect on the Groups assets and liabilities on acquisition date:
Recognised on
acquisition
$000
Carrying amount
before acquisition
$000
24
1,049
115
422
1,255
2,865
24
53
115
422
88
702
(359)
(359)
(606)
(606)
2,506
(729)
1,777
(47)
1,730
96
1,693
37
1,730
(1,693)
371
1,255
(67)
Purchase price adjustments, which are non-cash in nature, made during the Measurement Period have not been applied
retrospectively as these adjustments, which relate mainly to balance sheet effects and certain consequential income statement
effects, are immaterial to the Group.
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
These notes form an integral part of and should be read in conjunction with the accompanying nancial statements.
1.
GENERAL
The Company is a public limited company domiciled and incorporated in Singapore. The address of the Companys
registered ofce and principal place of business is 1 Ang Mo Kio Electronics Park Road #07-01 ST Engineering Hub,
Singapore 567710.
The Companys immediate and ultimate holding company is Temasek Holdings (Private) Limited, a company incorporated
in Singapore.
The principal activities of the Company are those of an investment holding company and the provision of engineering and
related services. The principal activities of the Companys subsidiaries are
in the Aerospace sector, the provision of aircraft maintenance, engineering and training services, which include
airframe, component and engine maintenance, repair and overhaul, engineering design and development, technical
services, materials support, asset management services and pilot training;
in the Electronics sector, design, development, supply, installation, integration and maintenance of advanced
electronics and communication systems;
in the Land Systems sector, the provision of design and engineering services, manufacture, sales and knowhow
transfer of military and commercial vehicles, automotive subsystems, armament, weapons, weapon systems,
ammunition and explosives, and the provision of engineering services for assembly, upgrading/modications,
maintenance, repair and overhaul of vehicles and weapon systems, and trading in motor vehicles, equipment,
vehicle spares and related accessories; and
in the Marine sector, building, repair and conversion of naval and commercial vessels, design, integration, fabrication,
installation of military and commercial engineering equipment and the provision of engineering consultancy and
technical management services.
The nancial statements of Singapore Technologies Engineering Ltd and the consolidated nancial statements
of Singapore Technologies Engineering Ltd and its subsidiaries (collectively referred to as the Group) as at
31 December 2015 and for the year then ended were authorised and approved by the Board of Directors for issuance on
25 February 2016.
2.
134
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
3.
Basis of consolidation
(i)
Business combinations
Business combinations are accounted for using the acquisition method in accordance with FRS 103 Business
Combinations as at the acquisition date, which is the date on which control is transferred to the Group.
Goodwill that arises upon the acquisition of subsidiaries is included in intangible assets. For the measurement
of goodwill at initial recognition, refer to Note 3.5(i).
The consideration transferred does not include amounts related to the settlement of pre-existing relationships.
Such amounts are generally recognised in prot or loss.
Costs related to the acquisition, other than those associated with the issue of debt or equity securities, that
the Group incurs in connection with a business combination are expensed as incurred.
Any contingent consideration payable is recognised at fair value at the acquisition date. If the contingent
consideration is classied as equity, it is not re-measured and settlement is accounted for within equity.
Otherwise, any subsequent changes to the fair value of the contingent consideration are recognised in prot
or loss.
Non-controlling interests (NCI) that are present ownership interests and entitle their holders to a
proportionate share of the acquirees net assets in the event of liquidation are measured either at fair value
or at the NCIs proportionate share of the recognised amounts of the acquirees identiable net assets, at the
acquisition date. The measurement basis taken is elected on a transaction-by-transaction basis. All other NCI
are measured at acquisition-date fair value, unless another measurement basis is required by FRSs.
Changes in the Groups interest in a subsidiary that do not result in a loss of control are accounted for as
transactions with owners in their capacity as owners and therefore no adjustments are made to goodwill and
no gain or loss is recognised in prot or loss. Adjustments to NCI arising from transactions that do not involve
the loss of control are based on a proportionate amount of the net assets of the subsidiary.
(ii)
Subsidiaries
Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to or has
rights to variable returns from its involvement with the entity and has the ability to affect those returns
through its power over the entity. The nancial statements of subsidiaries are included in the consolidated
nancial statements from the date that control commences until the date that control ceases.
Consistent accounting policies are applied to like transactions and events in similar circumstances. Losses
applicable to the non-controlling interests in a subsidiary are allocated to the non-controlling interests even if
doing so causes the non-controlling interests to have a decit balance.
In the Companys separate nancial statements, investments in subsidiaries are accounted for at cost less
accumulated impairment losses.
(iii)
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
3.
(iv)
Loss of control
Upon the loss of control, the Group derecognises the assets and liabilities of the subsidiary, any noncontrolling interests and the other components of equity related to the subsidiary. Any surplus or decit
arising on the loss of control is recognised in pro t or loss. If the Group retains any interest in the previous
subsidiary, then such interest is measured at fair value at the date that control is lost. Subsequently, it is
accounted for as an equity-accounted investee or as an available-for-sale nancial asset, depending on the
level of inuence retained.
(v)
(vi)
136
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
3.
Foreign currency
(i)
(ii)
Foreign operations
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on
acquisition, are translated to Singapore dollars at exchange rates at the reporting date. The income and
expenses of foreign operations are translated to Singapore dollars using exchange rates at the date of
the transactions.
Foreign currency differences are recognised in other comprehensive income and presented in the foreign
currency translation reserve in equity. However, if the foreign operation is a non wholly-owned subsidiary,
then the relevant proportionate share of the translation difference is allocated to the non-controlling interests.
When a foreign operation is disposed of such that control, signicant inuence or joint control is lost, the
cumulative amount in the foreign currency translation reserve related to that foreign operation is reclassied
to prot or loss as part of the gain or loss on disposal. When the Group disposes of only part of its interest in a
subsidiary that includes a foreign operation while retaining control, the relevant proportion of the cumulative
amount is re-attributed to non-controlling interests. When the Group disposes of only part of its investment
in an associate or joint venture that includes a foreign operation while retaining signicant inuence or joint
control, the relevant proportion of the cumulative amount is reclassied to prot or loss.
When the settlement of a monetary item receivable from or payable to a foreign operation is neither planned
nor likely in the foreseeable future, foreign exchange gains or losses arising from such a monetary item are
considered to form part of a net investment in a foreign operation and are recognised in other comprehensive
income, and presented in the foreign currency translation reserve in equity.
137
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
3.
Financial instruments
(i)
138
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
3.
(ii)
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
3.
Share capital
Ordinary shares
Ordinary shares are classied as equity. Incremental costs directly attributable to the issue of ordinary shares
are recognised as a deduction from equity, net of any tax effects.
(iv)
Treasury shares
When ordinary shares are reacquired by the Company, the consideration paid is recognised as deduction
from equity. Reacquired shares are classied as treasury shares. When treasury shares are sold, or re-issued
subsequently, the cost of treasury shares is reversed from treasury shares account and the realised gain or
loss on transaction is presented as a change in equity of the Company. No gain or loss is recognised in prot
or loss.
Treasury shares have no voting rights and no dividends are allocated to them.
(v)
140
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
3.
141
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
3.
(vi)
3.4
142
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
3.
(ii)
Depreciation
Depreciation is based on the cost of an asset less its residual value.
Depreciation is recognised in prot or loss on a straight-line basis over the estimated useful lives of each
component of an item of property, plant and equipment. Leased assets are depreciated over the shorter of
the lease term and their useful lives unless it is reasonably certain that the Group will obtain ownership by
the end of the lease term. Property, plant and equipment purchased specically for projects are depreciated
over the useful life of the class of property, plant and equipment or the duration of the project, whichever
is shorter. Construction-in-progress is not depreciated until each stage of development is completed and
becomes ready for use. Freehold land is not depreciated.
The estimated useful lives are as follows:
Buildings
Leasehold land
Improvements to premises
Wharves and slipways
Syncrolift and oating docks
Boats and barges
Plant and machinery
- Aerospace
- Electronics
- Land Systems
- Marine
- Others
Production tools and equipment
- Aerospace
- Electronics
- Others
Furniture, ttings, ofce equipment and computers
Transportation equipment and vehicles
Aircraft and aircraft engines
2 to 60 years
Over the period of the lease of between 2 and 50 years
3 to 30 years
20 years
15 years
10 to 23 years
8 to 25 years
10 years
5 to 15 years
5 to 30 years
5 years
5 to 15 years
10 years
3 years
2 to 5 years
4 to 5 years
15 to 30 years
Refer to Note 12(d)(ii) for details of the lease tenure used to approximate the useful lives of the leasehold land, buildings and
improvements.
143
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
3.
Depreciation (continued)
The residual value, useful life and depreciation method are reviewed at each nancial year-end to ensure that
the amount, method and period of depreciation are consistent with previous estimates and the expected
pattern of consumption of the future economic benets embodied in the items of property, plant and
equipment. Changes in the expected useful life or the expected pattern of consumption of future economic
benets embodied in the asset is accounted for by changing the depreciation period or method, as appropriate,
and treated as changes in accounting estimates.
3.5
Intangible assets
(i)
Goodwill
Goodwill represents the excess of:
if the business combination is achieved in stages, the fair value of the existing equity interest in the
acquiree,
over the net recognised amount (generally fair value) of the identiable assets acquired and liabilities assumed.
When the excess is negative, a bargain purchase gain is recognised immediately in prot or loss.
Goodwill is initially measured at cost. Following initial recognition, goodwill is measured at cost less
any accumulated impairment losses. In respect of equity-accounted investees, the carrying amount
of goodwill is included in the carrying amount of the investment, and an impairment loss on such an
investment is not allocated to any asset, including goodwill, that forms part of the carrying amount of
the equity-accounted investee.
(ii)
144
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
3.
(iii)
costs incurred for the prototyping and development of Boeing 757 15-Pallet Supplemental Type
Certicate. The amortisation has been deferred until the asset is ready for managements intended use.
costs incurred for the design, development and assembly of aircraft seats. The amortisation has been
deferred for the year ended 31 December 2015 as the asset is not yet ready for managements intended use.
(iv)
These licences relate to Air Operator Certicate issued by the Civil Aviation Safety Authority of
Australia to conduct commercial aviation activities such as ight training school and air charter,
and the Federal Aviation Administrations Organisation Designation Authorisation programme
that allows autonomy and efciency in the issuance of supplementary type certicates for
avionics and interiors projects.
145
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
3.
These licences relate to the Federal Aviation Administrations Part 141 Approval to a ight school
for pilot training in the US, including the issuance of the relevant entry visa to foreign students to
enter the US.
These licences are not amortised as they are considered to have an indenite useful life and are tested
annually for impairment.
Technology agreement
The technology agreement relates to the intellectual property assets required to operate the EcoPower
Engine Wash business. The intellectual property is an integral part of business as the business uses highlyproprietary processes to clean engines to enable fuel burn reduction and extended time on-wing.
Authorised repair centre agreement
This relates to the sole appointed authorised service centre for repair and overhaul of landing gear.
(v)
Subsequent expenditure
Subsequent expenditure is capitalised only when it increases the future economic benets embodied in
the specic asset to which it relates. All other expenditure, including expenditure on internally generated
intangible assets, is recognised in prot or loss as incurred.
(vi)
Amortisation
Amortisation is calculated based on the cost of the asset less its residual value.
Amortisation is recognised in prot or loss on a straight-line basis over the estimated useful lives of intangible
assets, other than goodwill, development expenditure of Aerospace sector and lm cost inventory, from the
date that they are available for use.
146
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
3.
Amortisation (continued)
Amortisation of development expenditure of Aerospace Sector is recognised in prot or loss using the units
of production method.
Film cost inventory is amortised using the individual-lm-forecast computation method which amortises the
lm costs in the same ratio that current gross revenue bear to anticipated total gross income for the lm.
Amortisation commences when each lm begins to earn revenue.
The estimated useful lives/units are as follows:
Dealer network
Development expenditure
- Aerospace
- Electronics
Commercial and intellectual property rights
Film cost inventory
Brands
- Aerospace
- Electronics
- Land Systems
Licenses
Technology agreement
Authorised repair centre agreement
- 7 to 10 years
-
10 to 65 units
2 to 5 years
2 to 16 years
20 years
5 years
20 years
70 years
7 to 30 years
13 years
5 years
The useful lives and amortisation methods are reviewed at the end of each nancial year-end to ensure that
the amount, method and period of amortisation are consistent with previous estimates and the expected
pattern of consumption of the future economic benets embodied in the intangible assets. Changes in the
expected useful life or the expected pattern of consumption of future economic benets embodied in the
asset is accounted for by changing the amortisation period or method, as appropriate, and treated as changes
in accounting estimates. The amortisation expense is recognised in the expense category consistent with the
function of the intangible asset.
3.6
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
3.
3.7
Impairment
(i)
148
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
3.
Impairment (continued)
(i)
(ii)
Non-nancial assets
The Group assesses at each reporting date whether there is an indication that its non-nancial assets, other
than goodwill, inventories, work-in-progress and deferred tax assets, may be impaired. Goodwill is reviewed
for impairment, annually or more frequently if events or changes in circumstances indicate that the carrying
value may be impaired. If any such indication exists, the Group makes an estimate of the assets recoverable
amount. An impairment loss is recognised if the carrying amount of an asset or its related cash-generating
unit (CGU) exceeds its estimated recoverable amount.
The recoverable amount of an asset or CGU is the higher of its fair value less costs to sell and its value in use.
In assessing value in use, the estimated future cash ows are discounted to their present value using a pretax discount rate that reects current market assessments of the time value of money and the risks specic
to the asset or CGU. For the purpose of impairment testing, assets that cannot be tested individually are
grouped together into the smallest group of assets that generates cash inows from continuing use that are
largely independent of the cash inows of other assets or CGU. Subject to an operating segment ceiling test,
for the purposes of goodwill impairment testing, CGUs to which goodwill has been allocated are aggregated
so that the level at which impairment testing is performed reects the lowest level at which goodwill is
monitored for internal reporting purposes. Goodwill acquired in a business combination is allocated to groups
of CGUs that are expected to benet from the synergies of the combination.
Impairment losses are recognised in prot or loss. Impairment losses recognised in respect of CGUs are
allocated rst to reduce the carrying amount of any goodwill allocated to the CGU or group of CGUs, and then
to reduce the carrying amounts of other assets in the CGU or group of CGUs on a pro rata basis.
149
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
3.
Impairment (continued)
(ii)
3.8
Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of past events,
it is probable that an outow of resources embodying economic benets will be required to settle the obligation
and a reliable estimate can be made of the amount of the obligation.
(i)
Warranties
The warranty provision represents the best estimate of the Groups contractual obligations at the balance
sheet date. Under the terms of the revenue contracts with key customers, the Group is obligated to make
good, by repair or replacement, engineering or manufacturing defects that become apparent within the
warranty period from the date of sale. The warranty obligation varies from 6 months to 10 years. The Groups
experience of the proportion of its products sold that requires repair or replacement differs from year to
year as every contract is customised to the specication of the customers. The estimation of the provision for
warranty expenses is based on the Groups past claim experience over the duration of the warranty period
and the industry average in relation to warranty exposures and represents the best estimates of the costs
expected to incur per dollar of sales. The warranty provision made as at 31 December 2015 is expected to be
incurred over the applicable warranty periods.
(ii)
Liquidated damages
Provision for liquidated damages is made in respect of anticipated claims from customers on contracts
of which deadlines are overdue or not expected to be completed on time in accordance with contractual
obligations. The utilisation of provisions is dependent on the timing of claims.
150
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
3.
Employee benets
(i)
(ii)
(iii)
(iv)
3.10 Revenue
Revenue is recognised to the extent that it is probable that the economic benets will ow to the Group and
revenue can be reliably measured. Revenue is measured at the fair value of consideration received or receivable,
net of any returns, trade discounts and volume rebates.
Revenue is recognised using the following methods:
(i)
Revenue from sale of goods is recognised when persuasive evidence exists that the signicant risks and
rewards of ownership have been transferred to the customer, recovery of the consideration is probable, the
associated costs and possible return of goods can be estimated reliably, there is no continuing management
involvement with the goods and the amount of revenue can be measured reliably.
The timing of the transfer of risks and rewards usually occurs upon delivery of goods and acceptance
by customers.
151
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
3.
Revenue from rendering of services is recognised in prot or loss in proportion to the stage of completion of
the transaction at the reporting date. The stage of completion is assessed by reference to the work performed.
(iii)
Revenue from long-term contracts is recognised by reference to stage of completion, which is measured by
either:
(a)
(b)
(c)
a combination of different cost components or a single cost component that would provide the most
reliable indication of the stage of completion of a contract; or
when goods and services, representing part of a contract, are delivered; or
upon completion of designated phases of a contract.
Provision for foreseeable losses on uncompleted contracts is recognised in pro t or loss as soon as such
losses are determinable.
(iv)
Management fee income is recognised on an accrual basis over the duration upon which management services
are rendered.
(v)
Commission income in excess of the certain percentage of the total amount received is taken up in the
income statement as and when the services are performed. Where it is probable that a portion of the
commission income may not materialise, a certain percentage of the total commission received is treated as
downpayment and is deferred and taken up in the income statement only upon the discharge of specied
contractual obligations.
(vi)
Rental income from investment property is accounted for on a straight-line basis over the duration of the
lease terms.
(vii) Rental income from leasing of facilities is accounted for on a straight-line basis over the lease terms.
3.11 Government grants
Government grants are recognised when the Group complies with the conditions associated with the grants. Grants
that compensate the Group for expenses incurred are recognised in prot or loss as other income in the same
periods in which the expenses are recognised. Grants relating to depreciable assets are deferred and recognised
in prot or loss as other income over the period in which such assets are depreciated and used in the projects
subsidised by the grants.
3.12 Finance income and nance costs
Finance income comprises interest income on funds invested (including available-for-sale nancial assets), dividend
income, gains on disposal of available-for-sale nancial assets, fair value gains on nancial assets at fair value
through prot or loss, gains on hedging instruments that are recognised in prot or loss. Interest income is
recognised as it accrues in prot or loss, using the effective interest method. Dividend income is recognised in prot
or loss when the shareholders right to receive payment is established.
Finance costs comprise interest expense on borrowings, losses on disposal of available-for-sale nancial assets,
fair value losses on nancial assets at fair value through prot or loss, impairment losses recognised on investments,
and losses on hedging instruments that are recognised in prot or loss.
152
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
3.
As lessee
Finance leases are those leasing agreements, which effectively transfer to the Group substantially all the risks
and benets incidental to ownership of the lease items. Assets nanced under such leases are capitalised at the
inception of the lease at the fair value of the leased asset or, if lower, at the present value of the minimum lease
payments. Any initial direct costs are also added to the amount capitalised. Lease payments are apportioned
between the nance charges and reduction of the lease liability so as to achieve a constant rate of interest on the
remaining balance of the liability. Finance charges are charged to prot or loss. Assets acquired on nance lease
arrangements are depreciated in accordance with the policy set out in Note 3.4 above.
(ii)
As lessor
Leases where the Group transferred substantially all the risks and rewards incidental to legal ownership of
the leased assets, are classied as nance leases.
The leased asset is derecognised and the present value of the lease receivables (net of initial direct costs for
negotiating and arranging the lease) is recognised on the balance sheet. The difference between the gross
receivables and the present value of the lease receivables is recognised as unearned nance income.
Each lease payment received is applied against the gross investment in the nance lease receivables to reduce
both the principal and the unearned nance income. The nance income is recognised in prot or loss on a
basis that reects a constant periodic rate of return on the net investment in the nance lease receivables.
Initial direct costs incurred by the Group in negotiating and arranging finance leases are added to finance
lease receivables and recognised as an expense in profit or loss over the lease term on the same basis as
the leased income.
153
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
3.
Current tax
Current tax assets and liabilities for the current and prior periods are measured at the amount expected to
be recovered from or paid to the tax authorities. The tax rates and tax laws used to compute the amount are
those that are enacted or substantively enacted by the balance sheet date.
Current taxes are recognised in prot or loss except to the extent that it relates to items recognised directly
in other comprehensive income or in equity.
(ii)
Deferred tax
Deferred income tax is provided on all temporary differences at the balance sheet date between the tax
bases of assets and liabilities and their carrying amounts for nancial reporting purposes. Deferred tax is
not recognised for temporary differences on the initial recognition of assets or liabilities in a transaction
that is not a business combination and that affects neither accounting nor taxable prot or loss and taxable
temporary differences arising on the initial recognition of goodwill. Deferred tax assets and liabilities are
measured using the tax rates expected to apply to taxable income in the years in which those temporary
differences are expected to be recovered or settled based on tax rates enacted or substantively enacted at
the balance sheet date.
Deferred tax liabilities are recognised for all taxable temporary differences associated with investments
in subsidiaries, associates and joint ventures, except where the timing of the reversal of the temporary
differences can be controlled and it is probable that the temporary differences will not reverse in the
foreseeable future.
Deferred tax assets are recognised for all deductible temporary differences, carry-forward of unused tax
assets and unused tax losses, to the extent that it is probable that taxable prot will be available against
which the deductible temporary differences, carry-forward of unused tax assets and unused tax losses can
be utilised.
At each balance sheet date, the Group re-assesses unrecognised deferred tax assets and the carrying amount
of deferred tax assets. The Group recognises a previously unrecognised deferred tax asset to the extent that
it has become probable that future taxable prot will allow the deferred tax asset to be recovered. The Group
conversely reduces the carrying amount of a deferred tax asset to the extent that it is no longer probable that
sufcient taxable prot will be available to allow the benet of part or all of the deferred tax asset to be utilised.
Deferred income tax relating to items recognised outside prot or loss is recognised in correlation to the
underlying transaction either in other comprehensive income or directly in equity and deferred tax arising
from a business combination is adjusted against goodwill on acquisition.
Deferred income tax assets and deferred income tax liabilities are offset, if a legally enforceable right exists
to set off current income tax assets against current income tax liabilities and the deferred income taxes relate
to the same taxable entity and the same tax authority.
154
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
3.
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
3.
156
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
3.
(ii)
The Groups judgement included considerations of their power exercised at the board of the respective
investees and rights and obligations arising from board reserve of matters as agreed with the other
shareholders.
3.19 New standards and interpretations not adopted
A number of new standards, amendments to standards and interpretations are effective for annual periods
beginning after 1 January 2015, and have not been applied in preparing these nancial statements. The Group is
currently assessing the potential impact of adopting these new standards and interpretations, on the nancial
statements of the Group and the Company.
These new standards include, among others, IFRS 1 First Time Adoption of IFRS, FRS 115 Revenue from Contracts with
Customers and FRS 109 Financial Instruments which are mandatory for adoption by the Group on 1 January 2018.
157
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
3.
As FRS 115 and FRS 109, when effective, will change the existing accounting standards and guidance applied by
the Group in accounting for revenue and nancial instruments, these standards are expected to be relevant to the
Group. The Group is currently assessing the impact upon adoption of these standards in the nancial year ending
31 December 2018. The Group does not plan to adopt these standards early.
4.
REVENUE
Revenue represents invoiced value of sales/services less returns and discounts given and billings recognised on contracts
as follows:
Group
Sale of goods
Service income
Contract revenue
158
2015
$000
2014
$000
1,939,713
3,704,189
691,121
6,335,023
2,155,395
3,322,171
1,061,867
6,539,433
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
5.
After charging/(crediting)
Auditors remuneration
- auditors of the Company
- other auditors
Non-audit fees
- auditors of the Company
- other auditors
Fees and remuneration of directors
Fees paid to a rm of which a director is a member
Personnel expenses
Depreciation charges
Allowance/(write-back of allowance) for
- inventory obsolescence
- doubtful debts (trade)
- doubtful debts (related parties)
- unbilled receivables (trade)
- doubtful lease receivables
Provision for
- warranties
- liquidated damages
- foreseeable losses
Property, plant and equipment written off
Research, design and development expenses
Operating lease expenses
Amortisation of other intangible assets
(Write-back)/impairment losses on property, plant and equipment
Impairment losses on goodwill
Impairment losses on other intangible assets
(Write-back)/impairment loss on progressive payments to contractor
Other intangible assets written off
Fair value changes in embedded derivatives not designated
as hedging instruments (included in cost of sales)
- Losses
Fair value changes of forward currency contracts not designated as hedging
instruments (included in cost of sales)
- Gains
- Losses
6
12
28
28
16
12
16
16
23
16
2015
$000
2014
$000
2,783
3,192
1,690
2,375
1,205
997
8,589
695
1,174
5,231
388
1,819,045
170,394
436
1,749,364
154,318
53,417
9,663
(280)
5
2,743
102,671
5,546
(792)
9,872
31,970
6,608
32,808
6,216
114,163
47,811
16,898
(212)
4,000
942
(283)
143
39,076
12,928
24,758
885
96,940
44,425
16,188
1,087
10,829
3,210
7,109
6,420
24,199
(13,067)
8,020
(27,577)
4,578
159
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
6.
PERSONNEL EXPENSES
Group
*
7.
2015
$000
2014
$000
1,466,404
149,016
15,840
187,785
1,819,045
1,406,667
130,323
20,925
191,449
1,749,364
160
2015
$000
2014
$000
34,192
567
8,491
43,250
31,082
475
3
8,287
39,847
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
8.
Other income
Gain on disposal of property, plant and equipment
Gain on disposal of subsidiaries
Gain on disposal of an associate
Gain on disposal of a joint venture
Bargain purchase arising from business combination
Government grants
Grant income from Wage Credit Scheme
Commission income
Rental income
Proceeds received from insurers
Others
Other expenses
Impairment loss on an associate
Impairment loss on loan to an associate
Remeasurement loss on fair value of pre-existing interest in acquiree
2015
$000
2014
$000
1,190
59
10,529
10,815
15,283
5
6,765
11,101
55,747
1,310
519
2,797
47
5,787
9,122
398
7,345
5,023
12,827
45,175
(299)
(299)
(2,108)
(2,892)
(5,000)
55,448
40,175
161
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
9.
Finance income
Dividend income quoted equity investments
Interest income
- bank deposits
- staff loans
- nance lease
- bonds
- others
Exchange gain, net
Gain on disposal of investments
Gain on fair value changes of investments held for trading
Net change in fair value of cash ow hedges reclassied from equity
on occurrence of forecast transactions
Fair value changes of nancial instruments
- gain on forward currency contract, cross currency interest rate swaps
and cross currency swap not designated as hedging instrument
- gain on ineffective portion of forward currency contract designated as
hedging instrument in cash ow hedges
Fair value changes of hedged items
Finance costs
Interest expenses
- bank loans and overdrafts
- bonds
- nance lease
- others
Exchange loss, net
Net change in fair value of cash ow hedges reclassied from equity
on occurrence of forecast transactions
Loss on fair value changes of forward currency contract designated
as hedging instrument
Fair value changes of hedged items
Impairment losses on unquoted investments
162
2015
$000
2014
$000
11,580
15
413
10,366
1,125
7,331
343
15
14,327
15
310
6,921
2,056
2,640
152
739
14,615
15,822
9
10,376
56,191
566
43,550
(7,879)
(30,707)
(738)
(428)
(10,269)
(26,542)
(744)
(319)
(5,150)
(10,082)
(114)
(49,948)
(796)
(739)
(638)
(45,197)
6,243
(1,647)
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
10.
TAXATION
Group
2015
$000
2014
$000
102,326
(15,533)
86,793
122,606
(15,122)
107,484
4,289
7,351
226
11,866
2,699
3,796
(286)
6,209
98,659
113,693
(93)
2014
$000
(10,770)
163
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
10.
TAXATION (continued)
A reconciliation between tax expense and the product of accounting prot multiplied by the applicable corporate tax rate
for the year ended 31 December is as follows:
Group
11.
2015
$000
2014
$000
630,302
650,683
107,151
110,616
(3,560)
24,894
(8,553)
(8,182)
226
(9,918)
(4,364)
16,620
(3,421)
(9,437)
(2,797)
98,659
(4,442)
34,257
(4,736)
(11,326)
(286)
(9,721)
(3,536)
9,755
(2,133)
(1,000)
(3,755)
113,693
164
2015
$000
2014
$000
529,039
531,952
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
11.
2015
000
3,120,005
(20,509)
3,976
3,103,472
2014
000
3,105,904
(75)
12,034
3,117,863
2015
000
3,103,472
13,980
(12,850)
3,104,602
2014
000
3,117,863
25,761
(21,089)
3,122,535
The weighted average number of ordinary shares takes into account the weighted average effect of changes in treasury shares transactions
during the year.
As at 31 December 2015, 5,383,061 (2014: nil) share options were excluded from the diluted weighted average number of
ordinary shares calculation as their effect would have been anti-dilutive.
165
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
12.
Reclassi- Translation
As at
cations difference 31.12.2014
$000
$000
$000
The Group
At Valuation
Leasehold land and
buildings
Wharves and
slipways
Syncrolift and
oating docks
Plant and machinery
Furniture, ttings,
ofce equipment
and computers
At Cost
Freehold land and
buildings
Leasehold land and
buildings
Improvements to
premises
Wharves and
slipways
Syncrolift and
oating docks
Boats and barges
Plant and machinery
Production tools and
equipment
Furniture, ttings,
ofce equipment
and computers
Transportation
equipment and
vehicles
Aircraft and aircraft
engines
Construction-inprogress
*1
166
1,919
1,919
1,490
1,490
4,603
1,694
4,603
1,694
279
279
64,683
403
(1,746)
305
2,602
66,247
977,310
15,618
(12,805)
41,329
72,297
10,789
(3,507)
(451)
13,455
337
92,920
41,532
1,608
1,629
597
45,366
86,831
10,411
733,549
185
2,152
45,781
(18,575)
102
168,462
(12,390)
759
50
4,866
87,877
181,075
753,231
280,679
22,953
(5,662)
(1,858)
96
3,613
299,821
234,898
33,643
(11,363)
24
(3,136)
5,670
2,270
262,006
17,608
1,110
(1,245)
(101)
25
166
17,563
211,450
996
2,492
214,938
252,955 105,256
2,994,188 240,494
(584)
(55,487)
24
(5,546)
(239,235)
(20,552)
8,293 1,029,745
2,005
120,397
28,050 3,181,171
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
12.
Disposals/
As at
1.1.2015 Additions *2 write-off
$000
$000
$000
Arising from
acquisition
of interest in
subsidiaries
$000
Reclassi- Translation
cations difference
$000
$000
As at
31.12.2015
$000
The Group
At Valuation
Leasehold land and buildings
Wharves and slipways
Syncrolift and oating docks
Plant and machinery
Furniture, ttings, ofce equipment
and computers
1,919
1,490
4,603
1,694
(173)
10
(11)
1,919
1,317
4,613
1,683
279
285
(637)
(17,883)
(5,676)
(18,587)
(6,313)
638
412
6,987
2,349
160
72,077
28,253
292
1,143
19
21,539
(4)
4,514
13,525
2,827
1,271
1,329
88
11,777
7,898
73,457
1,104,440
128,239
46,949
90,349
181,182
820,467
323,141
(14,039)
379
4,792
4,645
281,237
5
35
(20,792)
189 (128,930)
10,959 (21,584)
277
4,556
4,296
57,003
17,503
346,299
32,453
3,455,533
At Cost
Freehold land and buildings
66,247
3,173
Leasehold land and buildings
1,029,745
6,338
Improvements to premises
92,920
9,503
Wharves and slipways
45,366
20
Syncrolift and oating docks
87,877
*2
(1,746)
(7)
(64,888)
167
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
12.
As at
1.1.2014
$000
Depreciation
charge/
impairment
losses *3 Disposals/
for the year
write-off
$000
$000
Deconsolidation of a
subsidiary
$000
Reclassications
$000
Translation
As at
difference 31.12.2014
$000
$000
The Group
Leasehold land and buildings
Wharves and slipways
Syncrolift and oating docks
Plant and machinery
Furniture, ttings, ofce
equipment and computers
At Cost
Freehold land and buildings
Leasehold land and buildings
Improvements to premises
Wharves and slipways
Syncrolift and oating docks
Boats and barges
Plant and machinery
Production tools and
equipment
Furniture, ttings,
ofce equipment and
computers
Transportation equipment and
vehicles
Aircraft and aircraft engines
Construction-in-progress
168
1,919
1,490
4,603
1,694
1,919
1,490
4,603
1,694
279
279
21,196
408,199
43,189
25,508
69,173
5,830
393,025
1,309
37,497
7,639
1,166
1,244
6,634
39,795
(1,505)
(4,339)
(3,495)
(10,781)
(356)
36,455
(1)
961
3,606
496
153
70
50
4,831
21,961
444,963
47,473
26,827
70,487
48,969
426,869
200,402
13,821
(5,214)
(1,583)
3,901
211,329
186,040
34,683
(11,207)
(2,924)
2,122
208,715
13,374
61,408
36,455
1,473,784
1,862
9,755
155,405
(1,185)
(37,726)
(101)
(4,964)
(2)
(36,455)
142
14,092
817
71,978
17,149 1,603,648
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
12.
As at
1.1.2015
$000
Depreciation
charge/
impairment
losses *3 Disposals/
for the year
write-off
$000
$000
Reclassications
$000
Translation
difference
$000
As at
31.12.2015
$000
The Group
Leasehold land and buildings
Wharves and slipways
Syncrolift and oating docks
Plant and machinery
Furniture, ttings, ofce equipment and
computers
At Cost
Freehold land and buildings
Leasehold land and buildings
Improvements to premises
Wharves and slipways
Syncrolift and oating docks
Boats and barges
Plant and machinery
Production tools and equipment
Furniture, ttings, ofce equipment and
computers
Transportation equipment and vehicles
Aircraft and aircraft engines
*3
1,919
1,490
4,603
1,694
(173)
10
(11)
1,919
1,317
4,613
1,683
279
285
21,961
444,963
47,473
26,827
70,487
48,969
426,869
211,329
1,755
41,042
8,778
1,318
1,611
6,517
45,192
14,530
(580)
(9,081)
(5,613)
(11,306)
(6,339)
71
173
(10)
(107)
(8)
1,581
6,112
1,445
291
160
88
9,071
6,528
24,717
483,036
52,154
28,609
72,248
55,574
469,719
226,040
208,715
14,092
71,978
1,603,648
35,420
1,507
12,545
170,215
(13,990)
(1,465)
(48,374)
(77)
(9,652)
(9,778)
3,910
225
1,632
31,043
233,978
14,359
76,503
1,746,754
In the prior year, due to continued losses of a subsidiary, the Group performed an impairment assessment and recognised an impairment loss
of $1,087,000 on certain plant and equipment. The recoverable amounts of these plant and equipment were determined based on the fair
market value of the plant and equipment, net of selling costs. During the year, based on an independent party valuation report with reference to
replacement costs for these plant and equipment, the Group reversed the impairment loss recognised of $179,000. Additionally, an impairment
loss of $33,000 made in relation to plant and equipment previously was derecognised subsequent to the disposal of the assets during the year.
169
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
12.
31.12.2014
$000
1.1.2014
$000
48,740
621,404
76,085
18,340
18,101
125,608
350,748
97,101
47,259
3,144
269,796
32,453
1,708,779
44,286
584,782
45,447
18,539
17,390
132,106
326,362
88,492
53,291
3,471
142,960
120,397
1,577,523
43,487
569,111
29,108
16,024
17,658
4,581
340,524
80,277
48,858
4,234
150,042
216,500
1,520,404
The Group
At Valuation
Leasehold land and buildings
Wharves and slipways
Syncrolift and oating docks
Plant and machinery
Furniture, ttings, ofce equipment and computers
At Cost
Freehold land and buildings
Leasehold land and buildings
Improvements to premises
Wharves and slipways
Syncrolift and oating docks
Boats and barges
Plant and machinery
Production tools and equipment
Furniture, ttings, ofce equipment and computers
Transportation equipment and vehicles
Aircraft and aircraft engines
Construction-in-progress
170
(a)
Plant and machinery with net book value amounting to $11,806,000 (2014: $20,552,000) were reclassied to
inventories; and
(b)
Inventories amounting to $12,510,000 (2014: nil) were reclassied to property, plant and equipment.
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
12.
Leasehold land
and buildings
$000
Furniture,
ttings, office
equipment
and computers
$000
Transportation
equipment
and vehicles
$000
Total
$000
2,841
2,841
2,841
4,153
1,546
(767)
4,932
446
5,378
525
525
525
4,678
4,387
(767)
8,298
446
8,744
165
165
282
447
3,147
981
(765)
3,363
631
3,994
97
105
202
104
306
3,244
1,251
(765)
3,730
1,017
4,747
2,394
2,676
1,384
1,569
1,006
219
323
428
3,997
4,568
1,434
The Company
Cost
As 1.1.2014
Additions
Disposal/write-off
As at 31.12.2014
Additions
As at 31.12.2015
Accumulated depreciation
As 1.1.2014
Depreciation charge for the year
Disposal/write-off
As at 31.12.2014
Depreciation charge for the year
As at 31.12.2015
Net book value
As at 31.12.2015
As at 31.12.2014
As at 1.1.2014
171
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
12.
(b)
(c)
172
2015
$000
2014
$000
17,588
74
961
18,623
17,059
242
17,301
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
12.
Major properties
(i)
Location
Description
Land
area
(sq. m.)
USA
13442 Emerson Road, Kidron, Ohio Industrial buildings
68,351
1,036
1,022
Industrial buildings
117,358
4,920
4,718
Industrial buildings
39,942
1,600
1,541
Industrial buildings
122,659
4,432
4,383
839,564
4,121
3,856
227,151
4,435
4,146
331,803
21,163
20,486
25,252
3,119
Production facility
8,361
2,542
2,655
7,714
1,249
1,364
Australia
2 Bowral Place, Ballarat, Victoria
173
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
12.
Location
Land
area
(sq. m.)
Description
Tenure
Factory and
ofce building
10.6 years
from 1.6.2013
23,899
5,507
4,085
Factory and
ofce building
10.6 years
from 1.6.2013
7,175
784
411
5,317
16,617
16,380
Hangar and
ofce building
30 years
from 1.1.1992
75,713
25,064
27,457
Hangar and
ofce building
22.5 years
from 16.6.1999
14,860
1,937
2,079
Hangar and
ofce building
16.3 years
from 20.8.2005
9,764
8,891
9,331
Factory and
ofce building
30 years
from 17.7.2012
6,857
7,621
7,903
51 Loyang Drive
30 years
from 1.1.1992
6,045
613
Hangars and
ofce building
2 years
from 1.7.2014
52,212
17,096
19,625
Hangars and
ofce building
25,200
29,650
30,987
23,094
10,087
10,200
Industrial and
commercial buildings
30 years
from 1.12.2012
23,970
4,123
4,545
Industrial and
commercial buildings
30 years from
1.11.1988, renewable
to 2048
11,232
5,922
6,170
1 Ang Mo Kio
Electronics Park Road
Industrial and
commercial buildings
30 years
from 1.11.2011
20,000
64,224
68,165
Singapore
174
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
12.
Location
Land
area
(sq. m.)
Description
Tenure
Industrial and
commercial buildings
30 years
from 1.12.2011
5,000
18,048
19,228
33 Tuas Avenue 2
30 years from
1.4.1996
to 31.3.2026
6,669
1,662
1,817
16 Benoi Crescent
Industrial and
commercial buildings
30 years from
16.7.1989
to 15.7.2019
6,981
1,609
1,761
Industrial and
commercial
buildings
27 years from
1.10.2001
to 31.12.2028,
renewable
to 10.10.2065
206,031 117,211
125,238
16 Tuas Avenue 7
Industrial buildings
30 years from
16.8.2013 to
15.8.2043
12,029
241
186
Industrial buildings
Renewable every
year
556,074
5,275
4,554
Industrial buildings
60 years from
1.8.1973
to 31.7.2033
39,137
18,652
20,327
16 Benoi Road
Administrative ofces
and workshop
56 years
from 1.6.1969
20,224
5,796
6,119
7 Benoi Road
Buildings, foreshore
and workshops
56 years
from 1.6.1969
103,802
15,624
16,091
60 Tuas Road
Buildings, foreshore
and workshops
30 years
from 1.12.1992
137,739
3,427
4,039
Workers dormitory
30 years from
1.9.1995
3,908
2,825
3,117
Singapore
175
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
12.
Location
Land
area
(sq. m.)
Description
Tenure
29 years
from 1.11.2012
103,825
28,723
27,579
16.6 years
from 1.6.2002
255,121
22,674
22,045
38,618
50,216
50,207
USA
176
50 years
from 20.11.2008
Leasehold land,
industrial and
commercial buildings
50 years from
26.2.2008 to
21.2.2058
242,662
21,628
21,773
Leasehold land,
industrial and
commercial buildings
50 years from
30.11.2012 to
30.11.2062
51,576
14,673
12,812
Leasehold land,
industrial and
commercial buildings
50 years from
31.05.2013 to
31.05.2063
200,120
71,173
12,688
This relates to buildings constructed by subsidiaries on properties rented from the Ministry of Defence Singapore on leases which
are renewable from one to three years. In view of the relationship between the landlord and the subsidiaries, the cost of the
buildings is depreciated over the period of intended use, i.e. 30 years.
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
13.
SUBSIDIARIES
Company
2015
$000
*1
2
2014
$000
358,626
358,626
26,982
26,982
211,938
211,938
56,000
56,000
422,301
422,301
6,000
6,000
4,656
4,656
1,000
1,000
578
578
*1
*1
1
*
*1
1,088,081
1,088,081
(7,000)
(7,000)
1,081,081
1,081,081
113,718
116,635
1,194,799
1,197,716
177
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
13.
SUBSIDIARIES (continued)
Details of the subsidiaries are as follows:
Effective equity interest
held by the Group
(a)
178
2015
%
2014
%
100
100
100
100
100
100
100
100
100
100
100
100
80
100
100
100
100
100
100
100
80
100
100
51
100
100
100
100
100
100
100
100
100
100
100
100
90
100
100
100
100
100
100
100
100
100
100
80
100
50
100
100
100
100
100
80
100
100
51
100
100
100
100
100
100
100
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
13.
SUBSIDIARIES (continued)
Details of the subsidiaries are as follows: (continued)
Effective equity interest
held by the Group
(b)
2015
%
2014
%
100
100
100
100
100
100
100
100
100
100
100
100
93
93
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
51
50.05
100
100
100
100
100
100
100
100
100
100
100
93
93
70
70
70
100
100
100
51
100
100
100
100
100
100
100
100
100
100
100
51
50.05
179
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
13.
SUBSIDIARIES (continued)
Details of the subsidiaries are as follows: (continued)
Effective equity interest
held by the Group
(c)
2015
%
2014
%
100
100
100
99.2
100
100
100
100
100
94.36
100
100
75.3
75.3
100
100
100
100
100
60
100
100
100
51
51
100
100
100
100
60
100
100
100
99.2
100
100
100
100
100
90
100
100
75.3
75.3
100
100
100
100
100
60
100
100
100
51
51
100
100
100
100
60
100
100
100
100
100
100
100
51
100
100
100
100
51
100
(d)
180
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
13.
SUBSIDIARIES (continued)
Details of the subsidiaries are as follows: (continued)
Effective equity interest
held by the Group
(e)
(f)
2015
%
2014
%
100
100
100
100
100
100
100
50.1
100
100
100
100
100
100
100
100
100
100
100
100
100
100
97
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
50.1
100
100
100
100
100
100
100
100
100
100
100
100
100
97
100
100
100
100
100
100
100
100
100
100
100
100
100
181
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
13.
SUBSIDIARIES (continued)
Details of the subsidiaries are as follows: (continued)
Effective equity interest
held by the Group
182
2015
%
2014
%
(g)
100
100
(h)
100
100
(i)
51
51
(j)
100
100
(k)
100
100
*1
*2
The company has been reclassied from an associate to a subsidiary following the acquisition of additional equity interest during the year.
*3
*4
These companies were incorporated during the year and were not audited for the purpose of consolidation in the year.
*5
*6
*7
*8
During the year, the Group gained control of the company as a result of changes made to the shareholders agreement, and the company was
reclassied from a joint venture to a subsidiary.
*9
*10
This company has applied to Accounting and Corporate Regulatory Authority to strike off its name from the Register.
*11
This company merged with and into VT San Antonio Aerospace, Inc. pursuant to Section 10.151 of the Texas Bureau Organisation Code during
the year.
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
13.
SUBSIDIARIES (continued)
All subsidiaries that are required to be audited under the law in the country of incorporation are audited by KPMG LLP,
Singapore and other member rms of KPMG International, except for the following:
Name of subsidiary
Name of auditing rm
Deloitte Mexico
(a)
During the nancial year, the Group incorporated the following companies:
Equity
interest
held
%
Name of company
Country of incorporation/
place of business
Singapore
100
United Kingdom
100
Keystone 1 Limited
United Kingdom
100
Keystone 2 Limited
United Kingdom
100
Ireland
100
Keystone 3 Limited
Ireland
100
Singapore
Ireland
90
100
183
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
13.
SUBSIDIARIES (continued)
(b)
During the nancial year, the Group acquired additional equity interests in the following companies:
Interest
acquired
%
Interest
after
acquisition
%
Consideration
$000
Carrying
value of net
identiable
assets
acquired
$000
50
100
8,150
18,679
30
100
4,600
2,419
49
100
3,000
2,775
4.36
94.36
3,013
3,013
Name of company
(c)
During the nancial year, the Group made additional capital contribution in the following companies:
Capital
contribution
$000
Equity interest
before capital
contribution
%
Equity interest
after capital
contribution
%
18,643
100
100
5,292
90
90
2,770
100
100
740
93
93
1,343
100
100
Name of company
184
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
14.
Represented by:
Interest in associates
Interest in joint ventures
Company
2014
$000
2015
$000
2014
$000
17,657
17,657
108,632
461,560
373,307
(110)
373,197
(7,222)
112,377
478,352
422,672
38,888
461,560
437,385
40,967
478,352
357,496
(110)
357,386
(4,458)
During the year, the Group sold its entire 26% stake in CJS Aviation Pte. Ltd. to Caterhamjet Holdings Pte Ltd. Consequently, the carrying amount
of the investment, comprising the cost of investment of $3,379,000, less share of post-acquisition reserves of $615,000 and impairment loss of
$2,764,000 previously made, was derecognised.
In the prior year, an impairment loss of $2,108,000 was recognised in an associate due to sustained losses and expiry of the contract on repair
and overhaul of A320 landing gears.
185
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
14.
Name of associate
Principal activities
Singapore
25
25
Provision of scheduled
premium class jet services
Singapore
26
Composite Technology
International Pte Ltd
Singapore
33.33
33.33
Germany
Conversion of used Airbus
passenger aircraft to freighter
as well as the production
of aircraft components and
equipment, including supply for
Airbus production of new and
converted aircraft
35
35
Madrid Aerospace
Services S.L. 2
Spain
50
50
Shanghai Technologies
Aerospace Company Limited
Peoples Republic
of China
49
49
ST Aerospace (Guangzhou)
Aviation Services
Company Limited
Peoples Republic
of China
49
49
Turbine Coating
Services Pte Ltd
24.5
24.5
Turbine Overhaul
Services Pte Ltd
49
49
186
Country of
incorporation/
place of business
Singapore
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
14.
Name of associate
Principal activities
Singapore
Providing cloud computing
services, computing
infrastructure for cloud
computing services, systems
integration and systems
migration services in relation
to cloud computing services,
customisation of SAP software
or other customised software
for use in conjunction with or
in relation to cloud computing
services
Providing information
technology services and
trading of computer
accessories
40
40
Singapore
22.8
22.8
Singapore
46.5
46.5
Republic of Ireland
27.68
27.68
NanoScience Innovation
Pte Ltd
Singapore
21.6
21.6
Singapore
33
33
Dormant
Singapore
33
33
187
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
14.
Name of associate
Principal activities
Country of
incorporation/
place of business
Leasing of engines
Singapore
50
50
Singapore
50
50
ST Electronics (Satellite
Systems) Pte. Ltd.
Singapore
51
51
50
50
Manufacture of pyrotechnic
Singapore
components for seatbelts and
air bags used in motor vehicles
49
49
188
First Response Marine Pte. Ltd. Ship and boat leasing with
operator (including chartering)
Singapore
50
50
Singapore
51
51
USA
50
50
Singapore
30
30
Canada
10
10
*1
*2
*3
*4
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
14.
Name of auditing rm
189
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
14.
Name of associate
Elbe
Flugzeugwerke
GmBH
$000
Shanghai
Technologies Turbine
Aerospace Coating
Company Services
Limited Pte Ltd
$000
$000
Turbine
Overhaul
Services
Pte Ltd
$000
Experia
CityCab Events Immaterial
Pte Ltd Pte. Ltd. associates
$000
$000
$000
Total
$000
2015
Percentage of interest
35%
49%
24.5%
Revenue
Prot for the year
Other comprehensive income
Total comprehensive income
Attributable to NCI
Attributable to investees
shareholders
310,366
7,690
(35,434)
(27,744)
76,041
569
3,629
4,198
42,892
20,096
3,204
23,300
(27,744)
4,198
23,300
Non-current assets
Current assets
Non-current liabilities
Current liabilities
Net assets
Attributable to NCI
Attributable to investees
shareholders
366,642
201,262
(2,325)
(218,921)
346,658
94,450 32,406
30,186 106,932 60,859
60,588 23,768 205,071 208,368 37,448
(62,096) (3,214)
(19,053) (8,174) (88,328) (27,748) (39,531)
135,985 48,000 146,929 225,456 55,562
1,366
346,658
135,985
48,000
134,747
65,901
11,441
61,876
98,452 24,305
1,091
280
4,923
27,192
13,190
(2,668)
3,760 47,768
(12,409)
(11,318)
1,777
2,057
785
5,708
4,483
31,675
13,190
(2,668)
96 (5,268)
3,856 42,500
(2,099)
(1,328)
(5,389)
(21,556)
(7,440) (3,301)
(4,244) (45,357)
121,330
66,630
11,760
49%
46.5%
33%
267,147 348,460
55,499 28,609
9,145
64,644 28,609
244
6,982
(8,090)
(8,090)
64,644
28,365
(8,090)
40,663 437,385
(11,856) (11,856)
28,419 422,672
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
14.
Name of associate
Elbe
Flugzeugwerke
GmBH
$000
Shanghai
Technologies Turbine
Turbine
Aerospace Coating Overhaul
Company Services Services
Limited
Pte Ltd
Pte Ltd
$000
$000
$000
CityCab
Pte Ltd
$000
Experia
Events Immaterial
Pte. Ltd. associates
$000
$000
Total
$000
2014
Percentage of interest
35%
49%
Revenue
Prot for the year
Other comprehensive income
Total comprehensive income
Attributable to NCI
Attributable to investees
shareholders
301,488
4,564
(39,074)
(34,510)
60,182
744
1,880
2,624
(34,510)
2,624
Non-current assets
Current assets
Non-current liabilities
Current liabilities
Net assets
Attributable to NCI
Attributable to investees
shareholders
386,114
158,459
(2,498)
(157,083)
384,992
(26,467) (3,330)
(10,299) (8,157) (85,036) (64,972) (28,165)
134,492 46,696 126,277 212,978 73,653
1,253
384,992
134,492
147,657
24.5%
49%
46.5%
33%
167
52,926
16,622
16,622
19,728
16,622
59,978
24,497
73,653
64,619
11,554
52,276
96,361
18,821
44,970 436,258
766
364
4,392
26,989
11,391
5,486
(68) 49,320
(13,676)
(12,910)
918
1,282
442
4,834
2,400
29,389
11,391
(2)
5,484
422
354
(4,947) (19,789)
(9,300)
(2,553) (36,589)
(2,108) (2,108)
134,747
65,901
98,452
24,305
40,663 437,385
11,441
61,876
(9,496)
39,824
191
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
14.
Total Engine
Asset
Management
Pte Ltd.
$000
STELOP
Pte. Ltd.
$000
Fortis Marine
Solutions
Pte. Ltd.
$000
50%
50.05%
51%
15,642
4,360
2,608
6,968
23,758
(973)
(973)
24,809
8,467
8,467
6,763
3,200
529
443
227
1,358
193,264
7,213
(156,223)
(2,182)
42,072
20,692
(8,517)
12,175
7,142
9,619
156,223
1,147
17,552
3,484
9,335
(487)
21,036
Immaterial
joint
ventures
$000
Total
$000
5,971
4,318
8,109
4,884
40,967
12,199
(8,242)
(606)
(4,080)
(1,350)
(8,242)
(6,036)
6,209
11,643
38,888
2015
Percentage of interest
Revenue
Prot/(loss) for the year
Other comprehensive income a
Total comprehensive income
a
Includes:
- Depreciation and amortisation of:
- Interest expense of:
- Income tax expense of:
Non-current assets
Current assets b
Non-current liabilities c
Current liabilities d
Net assets
b
On 1 September 2015, STELOP Pte. Ltd. (STELOP) was reclassied from a joint venture to a subsidiary following
amendments to shareholders agreement. Accordingly, the information presented in the above table includes the results
of STELOP only for the period from 1 January 2015 to 1 September 2015.
192
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
14.
STELOP
Pte. Ltd.
$000
Beijing
Zhonghuan
Kinetics
Heavy Vehicles
Co., Ltd.
$000
Fortis
Marine
Solutions
Pte. Ltd.
$000
50%
50.05%
50%
51%
12,213
2,693
1,448
4,141
26,773
307
307
5,490
(3,558)
(3,558)
39,977
9,196
9,196
4,671
2,180
272
624
328
68
193
306
1,872
141,035
8,083
(112,781)
(1,233)
35,104
6,154
52,687
(6,737)
(33,453)
18,651
338
20,591
(9,221)
11,708
8,048
25,523
17,576
112,781
675
14,859
2,071
622
154
4,403
(1,920)
10,432
Total Engine
Asset
Management
Pte Ltd.
$000
Immaterial
joint
ventures
$000
Total
$000
1,281
4,690
5,338
3,808
25,881
8,803
622
10,432
(37)
(37)
(1,251)
(2,483)
(1,000)
(2,483)
(2,251)
17,552
9,335
5,971
8,109
40,967
2014
Percentage of interest
Revenue
Prot/(loss) for the year
Other comprehensive income a
Total comprehensive income
a
Includes:
- Depreciation and amortisation of:
- Interest expense of:
- Income tax expense of:
Non-current assets
Current assets b
Non-current liabilities c
Current liabilities d
Net assets
b
Includes cash and cash
equivalents of:
c
Includes non-current nancial liabilities
(excluding trade and other payables
and provisions)
d
Includes current nancial liabilities
(excluding trade and other payables
and provisions)
Groups interest in net assets of
investee at beginning
of the year
Share of total comprehensive income
Groups contribution during the year
Carrying amount of interest in a
joint venture deconsolidated
as a subsidiary
Carrying amount of interest in a
joint venture reclassied
to a subsidiary
Disposal of joint ventures during
the year
Dividends received during the year
Carrying amount of interest in
investee at end of the year
193
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
15.
INVESTMENTS
Group
Quoted investments
Equity shares, at fair value (Available-for-sale)
Note
2015
$000
2014
$000
43
189
378
9,902
3,963
Unquoted investments
Equity shares (Available-for-sale)
Non-related corporations, net of impairment losses
Bonds, at fair value (Available-for-sale)
Interest rate: 1.5% to 4.95% (2014: 1.5% to 4.95%) per annum
Maturity: 18.3.2016 to 19.1.2026 (2014: 28.1.2015 to 18.3.2020)
43
318,581
122,858
43
12
12
328,495
126,833
328,684
127,211
Unquoted equity investments where the fair value cannot be reliably estimated are classied as available-for-sale
investments. The Group has no intention to dispose these investments at the balance sheet date.
194
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
16.
INTANGIBLE ASSETS
(a)
Goodwill
Group
Note
Cost
At beginning of the year
Acquisition of a subsidiary
Finalisation of purchase price allocation
Deconsolidation of a subsidiary
Disposal of subsidiaries
Translation difference
At end of the year
Impairment
At beginning of the year
Impairment losses for the year ^
Translation difference
At end of the year
2015
$000
2014
$000
497,205
1,732
32,228
531,165
480,397
489
(1,732)
476
17,575
497,205
43,622
4,000
955
48,577
31,995
10,829
798
43,622
Group
31.12.2015
$000
31.12.2014
$000
1.1.2014
$000
482,588
453,583
448,402
^ For the purpose of annual impairment testing, the recoverable amounts of the CGUs are determined based on their value-in-use
calculations.
The recoverable amount of a CGU (2014: three CGUs) was determined to be lower than the carrying value and impairment loss of
$4,000,000 (2014: $10,829,000) was recognised in other operating expenses in the income statement.
195
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
16.
Note
Dealer
network
$000
Development
expenditure
$000
23,566
(1,391)
156
22,331
1,656
287
24,274
17,763
29,094
184
47,041
37,512
2,515
87,068
9,868
1,488
7,522
3,518
340
11,696
1,354
564
13,614
82
11,122
4,435
487
16,044
10,660
10,635
13,698
71,024
35,919
10,241
The Group
Cost
At 1.1.2014
Additions
Acquisition of subsidiaries
Finalisation of purchase price allocation
Deconsolidation of a subsidiary
Translation difference
At 31.12.2014 and 1.1.2015
Additions
Acquisition of subsidiaries
Write-off
Translation difference
At 31.12.2015
Accumulated amortisation and impairment losses
At 1.1.2014
Amortisation for the year
Impairment losses +
Deconsolidation of a subsidiary
Translation difference
At 31.12.2014 and 1.1.2015
Amortisation for the year
Impairment losses +
Translation difference
At 31.12.2015
Net book value
At 31.12.2015
At 31.12.2014
At 1.1.2014
196
5
5
5
5
Amortisation charge of $16,898,000 (2014: $16,188,000) is recognised in the income statement as part of:
- Other operating expenses of $5,947,000 (2014: $6,172,000); and
- Cost of sales of $10,951,000 (2014: $10,016,000)
During the year, the Group assessed that certain licenses and commercial and intellectual property rights are impaired as these
intangible assets are not expected to be generating future economic benets for the Group. Hence, impairment losses of $942,000
(2014: $3,210,000) were recognised during the year.
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
Commercial and
intellectual
property rights
$000
Film cost
inventory
$000
Licenses
$000
Technology
agreement
$000
Authorised
repair centre
agreement
$000
Brands
$000
Others
$000
Total
$000
68,058
2,000
650
(749)
1,987
71,946
324
2,982
75,252
11,803
11,803
11,803
76,332
2,903
79,235
5,319
84,554
42,313
12,024
996
(87)
55,246
876
(143)
(189)
55,790
31,982
1,355
33,337
2,365
35,702
5,914
5,914
10,979
53
11,032
290
10
11,332
282,796
43,118
1,049
(741)
(749)
6,498
331,971
38,388
8,184
(143)
13,289
391,689
47,299
4,369
11,803
9,013
1,294
886
1,154
2,024
2,432
4,375
1,933
92,790
16,188
1,900
(175)
1,662
55,055
4,221
2,972
62,248
11,803
11,803
261
10,568
1,315
619
12,502
1,310
(11)
3,339
807
942
(106)
4,982
186
4,642
2,642
399
7,683
(1)
6,307
2,124
8,431
3,210
(175)
2,519
114,532
16,898
942
4,935
137,307
13,004
16,891
20,759
72,052
68,667
67,319
50,808
51,907
41,427
28,019
28,695
29,958
5,914
2,901
4,725
6,604
254,382
217,439
190,006
197
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
16.
31.12.2015
$000
31.12.2014
$000
1.1.2014
$000
736,970
671,022
638,408
2014
$000
14,940
14,665
2,262
11,527
12,940
3,986
Electronics
Communication & Sensor Systems Group
Software Systems Group
255,685
28,420
236,985
27,353
Land Systems
Automotive
130,108
126,702
36,508
482,588
34,090
453,583
Aerospace
Aircraft Maintenance & Modication
Component/Engine Repair & Overhaul
Engineering & Material Services
Others
198
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
16.
Terminal value
growth rate
2015
%
2014
%
2015
%
2014
%
9.2 12.1
10.8
6.5
9.2 12.1
8.9 10.8
6.5 12.5
0 4.6
3.0
1.3
0 4.6
3.0
1.3 2.4
Electronics
Communications & Sensor Systems Group
Software Systems Group
12.7 14.6
10.9 18.0
10.6 12.0
9.6 17.7
4.0 5.0
2.0 3.0
4.0 5.0
2.0 3.0
Land Systems
Automotive
10.1 22.2
11.8 15.0
5.0 6.0
5.0
12.8
12.7
3.0
3.0
Aerospace
Aircraft Maintenance & Modication
Component/Engine Repair & Overhaul
Engineering & Material Services
Others
The discount rate used is estimated based on past experience and the industry weighted average cost of capital.
The long-term terminal value growth rate has been determined based on either the nominal GDP rates for the country
in which the CGU is based or the long-term compound annual growth rate estimated by management by reference to
forecasts included in industry reports and expected market development.
Sensitivity to changes in assumptions:
(a)
Following the impairment in one (2014: three) of the CGUs within the business divisions, the recoverable amount in
this CGUs is approximately equal to the carrying amounts. Therefore, any adverse movement in a key assumption
would lead to a further impairment in this CGU.
(b)
Management has identied the following key assumption for which a change as set out below could cause the
carrying amount to exceed the recoverable amount.
Change required for
carrying amount to equal the
recoverable amount
(c)
Business Divisions
Assumption
Others
2015
%
2014
%
0.9
1.8
No sensitivity analysis was disclosed for the remaining CGUs as the Group believes that any reasonable possible
change in the key assumptions is not likely to materially cause the recoverable amount to be lower than its carrying
amount.
199
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
17.
LONG-TERM RECEIVABLES
Group
Receivable:
Within 1 year
After 1 year
2015
$000
2014
$000
5,011
507
176
5,694
887
617
12,606
14,110
354
11,375
5,340
2,735
5,694
14,110
Long-term receivables are carried at amortised cost and are subject to impairment.
Included in the loans to third parties is an interest-free loan of $176,000 (2014: nil) reclassied from amounts due from associates (non-trade)
(Note 22) following the disposal of an associate during the year. The loan is unsecured and repayable on demand.
Included in the loans to third parties in the prior year is an amount of $12,606,000 relating to instalment payment plans granted to customers.
These loans were unsecured, repayable over a period of 7.5 years from 2008. The interest rates on these loans were LIBOR with margins at
0.63% per annum. The interest rate was 0.96% (2014: 0.95% to 0.98%) per annum, which was also the effective interest rates. The interest
rates were repriced every six months. The loans were fully repaid during the year.
200
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
18.
Unearned
interest
$000
Present
value of
minimum
lease
receivables
$000
Allowance
for doubtful
lease
receivables
$000
Net
investment
in nance
lease
$000
17,409
530
17,939
(43)
(7)
(50)
17,366
523
17,889
(14,193)
(14,193)
3,173
31,067
2,553
33,620
(517)
(283)
(800)
30,550
2,270
32,820
(23,678)
(1,297)
(24,975)
Gross
investment
in nance
lease
$000
The Group
2015
Within 1 year
2014
Within 1 year
523
3,696
6,872
973
7,845
Group
Individually assessed
Doubtful lease receivables
Allowance for doubtful lease receivables
2015
$000
2014
$000
2,336
1,360
3,696
2,984
4,861
7,845
14,193
(14,193)
24,975
(24,975)
201
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
19.
Tax losses
Deductible temporary differences
Unabsorbed wear and tear allowance and investment allowance
2015
$000
2014
$000
480,729
24,551
3,533
508,813
429,119
7,370
7,575
444,064
The tax benets have not been recognised in the nancial statements due to the uncertainty over the sufciency of
future taxable prots to be generated in the foreseeable future. The use of these potential tax benets is subject to the
agreement of the tax authorities and compliance with certain provisions of the tax legislation of the respective countries
in which the subsidiaries operate.
202
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
19.
Liabilities
2014
$000
2015
$000
2014
$000
(119)
(3,196)
(28,861)
(130,291)
(24)
(712)
(25,724)
(131,624)
113,609
82,455
98,615
71,987
(23,143)
(21,002)
130
(5,010)
(9,466)
(200,086)
94,535
(105,551)
(4,788)
(9,310)
(193,184)
86,866
(106,318)
162
32,994
229,350
(94,535)
134,815
172
24,575
195,350
(86,866)
108,484
The Group
Property, plant and equipment
Intangible assets
Allowance for doubtful debts
Allowance for inventory obsolescence
Provisions and accruals
Unabsorbed capital allowances and unutilised
tax losses
Fair value of derivative nancial instruments
designated as cash ow hedges
Other items
Deferred tax (assets)/liabilities
Set off of tax
Net deferred tax (assets)/liabilities
Assets
Liabilities
2015
$000
2014
$000
2015
$000
2014
$000
(4,973)
(7,392)
307
149
(1,181)
(6,154)
1,454
(4,700)
(7,392)
392
(7,000)
1,147
1,454
(1,454)
243
392
(392)
The Company
Property, plant and equipment
Provisions and accruals
Unabsorbed capital allowances and unutilised
tax losses
Other items
Deferred tax (assets)/liabilities
Set off of tax
Net deferred tax assets
203
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
19.
Utilisation
of tax
losses
$000
As at
1.1.2014
$000
Recognised
in prot
or loss
$000
Recognised
in other
comprehensive
income
$000
84,904
69,655
(1,688)
(18,882)
(130,425)
13,024
50
1,023
(6,270)
(912)
(79)
(252)
25
412
(643)
646
(24,700)
63
4,175
6,131
14,238
(767)
36
(805)
6,209
(10,770)
(10,770)
106
1,507
5,685
As at
1.1.2014
$000
Recognised
in prot
or loss
$000
As at
31.12.2014
$000
Recognised
in prot
or loss
$000
As at
31.12.2015
$000
167
(7,639)
(18)
247
149
(7,392)
158
2,419
307
(4,973)
272
(7,200)
(29)
200
243
(7,000)
(1,181)
904
2,300
(1,181)
1,147
(4,700)
The Group
The Company
Property, plant and equipment
Provisions and accruals
Unabsorbed capital allowances and
unutilised tax losses
Other items
204
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
Recognised
in other
comprehensive
income
$000
Acquired
in business
combinations
$000
Utilisation
of tax
losses
$000
Exchange
difference
$000
As at
31.12.2015
$000
Exchange
difference
$000
As at
31.12.2014
$000
Recognised
in prot
or loss
$000
1,385
2,534
(47)
(597)
(1,344)
98,591
71,987
(712)
(25,724)
(131,623)
10,083
4,859
(2,407)
(1,597)
2,771
1,286
1,336
(13)
(458)
3,530
4,273
(77)
(1,527)
(981)
113,490
82,455
(3,196)
(28,861)
(130,291)
(540)
(21,002)
(8,985)
89
7,377
(492)
(23,013)
(13)
325
1,703
(4,616)
15,265
2,166
(123)
7,265
11,866
(93)
(93)
2,240
3,534
10,911
(16)
(2,536)
2,174
(4,848)
23,528
29,264
205
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
20.
2015
$000
2014
$000
767,200
847,574
5,037,344
(3,861,540)
1,175,804
4,184,535
(3,230,036)
954,499
1,943,004
1,802,073
4,676,497
(5,245,072)
(568,575)
4,318,592
(5,043,939)
(725,347)
In 2015, raw materials, consumables and changes in nished goods and work-in-progress recognised as cost of sales
amounted to $4,697,107,000 (2014: $4,952,789,000).
Allowances for inventory obsolescence and foreseeable losses
As at 31 December 2015, the inventories are stated after allowance for inventory obsolescence of $349,120,000
(2014: $302,931,000) and work-in-progress in excess of progress billings is stated after provision for foreseeable losses
of $23,570,000 (2014: $15,567,000).
206
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
21.
TRADE RECEIVABLES
Group
Unbilled receivables
Allowance for unbilled receivables
Trade receivables, net
2015
$000
2014
$000
573,376
333,412
906,788
596,894
430,723
1,027,617
5,560
(5,560)
4,310
(4,310)
47,559
(47,559)
50,378
(50,378)
414,196
(1,270)
292,726
(1,242)
1,319,714
1,319,101
Trade receivables denominated in currencies other than the functional currencies of the Company and its subsidiaries as
at 31 December are as follows:
Trade receivables amounting to $13,136,000 (2014: $30,092,000) are arranged to be repaid through letters of credit
issued by reputable banks.
A subsidiary within the Group has not recognised $17,513,000 (2014: $17,600,000) of trade receivable due from one of
its customers in view of uncertainty over the collectability of the debts. The amount would be recognised in the nancial
statements upon receipt.
207
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
22.
Trade:
Subsidiaries
Associates
Joint ventures
Related corporations
Non-trade:
Subsidiaries 1
Associates 2
Joint ventures
Receivable:
Within 1 year
After 1 year
Company
2015
$000
2014
$000
2015
$000
2014
$000
11,871
3,326
24,803
40,000
22,383
3,090
40,568
66,041
5,982
44
6,026
6,592
43
6,635
18,771
4,955
23,726
3,049
5,279
8,328
832,940
832,940
547,416
547,416
(2,338)
(3,181)
(13,562)
(6,981)
61,388
71,188
825,404
547,070
56,582
4,806
61,388
66,382
4,806
71,188
470,376
355,028
825,404
497,070
50,000
547,070
There were no signicant amounts due from related parties denominated in currencies other than the functional
currencies of the Group as at 31 December 2015 and 31 December 2014.
Amounts due from related parties denominated in currencies other than the functional currency of the Company as at
31 December are as follows:
208
*1
*2
*3
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
23.
Deposits
Interest receivables
Other recoverables
Non-trade receivables
Advance payments to suppliers
Prepayments
Derivative nancial instruments
24.
43
Company
2015
$000
2014
$000
2015
$000
2014
$000
27,275
7,853
36,361
31,327
166,519
57,956
6,520
333,811
22,604
13,098
30,543
37,642
341,503
83,737
1,171
530,298
66
946
3,725
29
428
105
5,299
63
1,432
2,035
43
24
3,597
In the prior year, the Group made progressive payments to a contractor of $7,109,000 for the development of intellectual property rights
relating to the design and prototype of a construction and mining equipment. The Group issued a notice for breach of contract to the
contractor as they were unable to full their contractual obligations to complete the development. The Group assessed that the progressive
payments made were not recoverable and the intellectual property developed to date had no economic value. As such, the Group fully
impaired the progressive payments made in relation to the intellectual property rights being developed up to 31 December 2014. During the
year, the Group recovered progressive payments of $283,000 from the contractor and the remaining progressive payments of $6,826,000
were written off.
SHORT-TERM INVESTMENTS
Group
Quoted investments
Equity shares, at fair value (Fair value through prot or loss)
Unquoted investments
Bonds, at fair value (Available-for-sale)
Interest rate 1.5% to 4.95% (2014: 2.67% to 4.95%) per annum
Maturity: 18.3.2016 to 1.10.2025 (2014: 26.1.2015 to 7.11.2024)
Note
2015
$000
2014
$000
43
369
359
43
182,600
118,920
182,969
119,279
209
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
25.
610,002
341,492
951,494
(7,375)
944,119
Company
2014
$000
2015
$000
2014
$000
1,134,657
336,066
1,470,723
(8,111)
1,462,612
70,303
11,788
82,091
82,091
316,033
88,843
404,876
404,876
Fixed deposits with nancial institutions mature at varying periods within 12 months (2014: 10 months) from the nancial
year-end. Interest rates range from 0% to 5% (2014: 0.04% to 3.8%) per annum, which are also the effective interest rates.
Cash and bank balances of $7,375,000 (2014: $8,111,000) have been placed with banks as security for letters of credit
issued to third parties. Cash and cash equivalents denominated in currencies other than the functional currencies of the
Company and its subsidiaries as at 31 December are as follows:
210
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
26.
2014
$000
2015
$000
2014
$000
822,520
165,394
1,774
901,762
16,717
24,017
1,932,184
831,020
172,779
693
897,037
18,396
21,410
1,941,335
9,099
23,058
32,157
8,004
35,963
43,967
1,702,649
229,535
1,932,184
1,667,180
274,155
1,941,335
20,619
11,538
32,157
26,961
17,006
43,967
Note
Trade payables
Non-trade payables 1
Purchase of property, plant and equipment
Accrued operating expenses 2
Accrued interest payable
Derivative nancial instruments
Payable:
Within 1 year
After 1 year
43
Company
Trade payables denominated in currencies other than the functional currencies of the Company and its subsidiaries as at
31 December are as follows:
*1
The non-trade payables include an amount of $74,727,000 (2014: $101,352,000) for its obligation to perform engineering development work
as part of the consideration for the acquisition of an associate.
*2
Included in the accrued operating expenses is an amount of $400,183,000 (2014: $415,810,000) for its obligations under its employee
compensation schemes.
211
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
27.
Trade:
Subsidiaries
Associates
Joint ventures
Related corporations
Non-trade:
Subsidiaries 1
Joint ventures 2
Related corporations
Payable:
Within 1 year
After 1 year
Company
2015
$000
2014
$000
2015
$000
2014
$000
2,433
3,841
9,420
15,694
5,625
3,117
22,488
31,230
1,736
6
1,742
1,882
3
1,885
5,004
1
5,005
5
5
644,274
644,274
602,516
602,516
20,699
31,235
646,016
604,401
20,553
146
20,699
29,364
1,871
31,235
1,742
644,274
646,016
196,988
407,413
604,401
There were no signicant amounts due to related parties denominated in currencies other than the functional currencies
of the Group as at 31 December 2015 and 31 December 2014.
Amounts due to related parties denominated in currencies other than the functional currency of the Company as at
31 December are as follows:
212
*1
Included in the amounts due to subsidiaries (non-trade) are loans of $628,472,000 (2014: $562,959,000) bearing interest at 4.75% (2014: 4.18%)
per annum. The loans are unsecured and repayable on 16 July 2019.
*2
Included in the amounts due to joint ventures (non-trade) is an unsecured loan of $5,000,000 (2014: nil), bearing interest at 1.46% (2014: nil)
per annum, which is the effective interest rate.
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
28.
PROVISIONS
Group
Provisions for:
Warranties
Liquidated damages
Foreseeable losses
(a)
2015
$000
2014
$000
206,084
24,926
26,514
257,524
200,355
20,710
24,007
245,072
2015
$000
200,355
31,970
(29,532)
843
2,448
206,084
2014
$000
186,212
39,076
(25,924)
(854)
1,845
200,355
2015
$000
20,710
6,608
(2,702)
326
(16)
24,926
2014
$000
10,890
12,928
(1,861)
(1,241)
(6)
20,710
24,007
16,372
(13,774)
(91)
26,514
2014
$000
21,808
14,939
(12,769)
29
24,007
213
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
29.
BORROWINGS
Group
Note
Non-current
Bonds
Long-term bank loans
Lease obligations
Other loans
Current
Short-term bank loans
Long-term bank loans
Lease obligations
Other loans
Total borrowings
Total borrowings comprise:
Unsecured xed rate bonds
Secured bank loans
Unsecured bank loans
Lease obligations
Other loans
(a)
(a)
(b)
(b)
(c)
(d)
2015
$000
2014
$000
705,567
293,962
18,706
310
1,018,545
658,424
267,532
17,547
441
943,944
65,647
106,531
730
1,778
174,686
29,820
43,590
1,126
148
74,684
1,193,231
1,018,628
705,567
103,642
362,498
19,436
2,088
1,193,231
658,424
46,809
294,133
18,673
589
1,018,628
Principal
Unamortised discount
Unamortised discount:
At beginning of the year
Amortisation for the year
Translation difference
2014
$000
707,300
(1,733)
705,567
660,450
(2,026)
658,424
2,026
(424)
131
1,733
2,317
(372)
81
2,026
On 16 July 2009, the Group issued US$500 million 4.80% Notes due 2019 under its US$1.2 billion Multicurrency
Medium Term Note Programme. The bonds bear interest at a xed rate of 4.80% per annum and interest is payable
every six months from the date of issue. The bonds are unconditionally and irrevocably guaranteed by the Company.
At the reporting date, the Company does not consider it probable that a claim will be made against the Company
under the guarantee.
214
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
29.
BORROWINGS (continued)
(b)
Bank loans
Group
Effective
interest rate
%
Maturity
2015
$000
2014
$000
0.73% to 10%
2016 to 2020
466,140
340,942
Bank loans denominated in currencies other than the functional currency of the Company and its subsidiaries as at
31 December are as follows:
Loans amounting to $17,440,000 (2014: $17,040,000) which are secured by land and buildings of a subsidiary;
(ii)
Loans amounting to $79,379,000 (2014: $29,769,000) which are secured over certain property, plant and
equipment of subsidiaries; and
(iii)
Loans amounting to $6,823,000 (2014: nil), which are secured by a subsidiarys land use right.
215
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
29.
BORROWINGS (continued)
(c)
Lease obligations
A subsidiary leases certain land, buildings and equipment from a foreign Airport Authority under a nance lease
arrangement until 31 October 2041, with an option to terminate the lease at any time with a 36-month written
notice. The leased assets are pledged as collateral against the lease.
The obligations under the nance leases to be paid by the subsidiaries are as follows:
The Group
2015
Within 1 year
Between 1 and 5 years
After 5 years
Total
Minimum
lease payment
$000
Interest
$000
Present value
of payment
$000
1,424
5,241
31,496
38,161
(694)
(2,878)
(15,153)
(18,725)
730
2,363
16,343
19,436
Repayable:
Within 1 year
After 1 year
2014
Within 1 year
Between 1 and 5 years
After 5 years
Total
730
18,706
19,436
1,818
4,550
30,543
36,911
(692)
(2,718)
(14,828)
(18,238)
Repayable:
Within 1 year
After 1 year
1,126
1,832
15,715
18,673
1,126
17,547
18,673
Lease terms do not contain restrictions concerning dividends, additional debt or further leasing.
(d)
Other loans
Included in the other loans are:
216
(i)
US dollar denominated term notes of $371,000 (US$261,000) (2014: $468,000 (US$354,622)) and $102,000
(US$72,000) (2014: $121,000 (US$91,248)) owing to the Pennsylvania Industrial Development Authority and
the Industrial Properties Corporation, respectively, by a US entity of the Group. These notes are secured
by land and buildings of the entity and bear interest, respectively, at 2.75% and 4% (2014: 2.75% and 4%)
per annum, which are also the effective interest rates, and are payable through 1 July 2019 and 28 June 2019,
respectively; and
(ii)
A RMB denominated loan of $1,615,000 (RMB7,410,000) (2014: nil) from a non-controlling shareholder of
a subsidiary. This loan is unsecured, bears interest at 9% (2014: nil) per annum, which is also the effective
interest rate, and is repayable by 19 April 2016.
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
30.
DEFERRED INCOME
Group
Government compensation
Government grants
Deferred rents
2015
$000
2014
$000
31,820
52,326
7,906
92,052
41,507
47,876
9,376
98,759
31.
(a)
for subsidising the costs incurred in the acquisitions of plant and equipment for new product development and
production activities, and for the relocation of a subsidiarys manufacturing facility in the Peoples Republic of
China; and
(b)
to share the cost for purchase of plant and machinery, and yard facility upgrades in the US operation.
After 1 year
2015
$000
2014
$000
700
1,000
The other long-term payables of $700,000 (2014: $1,000,000) is payable to a previous non-controlling shareholder of a
subsidiary for the purchase of remaining shareholdings of the subsidiary. The amount payable is unsecured, interest-free
and repayable within seven years from 2010.
217
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
32.
SHARE CAPITAL
Group and Company
2015
$000
2014
$000
889,426
852,611
6,500
36,815
895,926
889,426
Included in share capital is a special share issued to the Minister for Finance. The special share enjoys all the rights
attached to the ordinary shares. In addition, the special share carries the right to approve any resolution to be passed
by the Company, either in general meeting or by its Board of Directors, on certain matters specied in the Companys
Constitution. The special share may be converted at any time into an ordinary share.
The holders of ordinary shares are entitled to receive dividends as and when declared by the Company. All ordinary
shares carry one vote per share without restriction.
33.
TREASURY SHARES
Group and Company
2015
$000
(6,529)
(89,776)
29,435
(66,870)
2014
$000
(6,529)
(6,529)
Treasury shares relate to ordinary shares of the Company that are held by the Company.
During the nancial year, the Company purchased 27,616,900 (2014: 2,034,000) of its ordinary shares by way of
on-market purchases. The total amount paid to purchase the shares was $89,776,000 (2014: $6,529,000). The shares,
held as treasury shares, were included as deduction against shareholders equity.
The Company reissued 3,192,638 (2014: nil) treasury shares pursuant to its share option plans at a weighted average
exercise price of $2.68 (2014: nil) each. The cost of treasury shares re-issued pursuant to the share option plans
amounted to $10,800,000 (2014: nil). In addition, 3,962,072 (2014: nil) and 1,529,222 (2014: nil) treasury shares, at a cost
of $13,443,000 (2014: nil) and $5,192,000 (2014: nil), were reissued pursuant to its RSP and PSP respectively.
218
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
34.
The exercise price of the options is equal to volume-weighted average price for the shares on the SGX over the three
consecutive trading days immediately preceding the date of grant.
(b)
The options are exercisable at the end of the rst year after date of grant, in accordance with a vesting schedule to
be determined by ERCC and are settled in cash.
(c)
The options granted expire after ve years for non-executive directors and 10 years for the employees of the
Company and its subsidiaries.
During the nancial year, the Company issued and re-issued the following shares at the respective price per share upon
the exercise of options granted by the Company under ESOP:
(a)
(b)
Grant no.
0502N
0508N
0602N
0608N
0703N
0708N
No. of ordinary
shares issued
No. of treasury
shares re-issued
1,671,693
240,615
114,107
67,211
74,123
2,330,539
321,781
376,442
125,405
38,471
2.370
2.570
3.010
2.840
3.230
3.610
219
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
34.
(ii)
2014
ESOP
At beginning of the year
Exercised
Lapsed
At end of the year
23,472,008
(5,360,387)
(474,880)
17,636,741
30,517,942
(6,644,956)
(400,978)
23,472,008
17,636,741
23,472,008
Options
lapsed
Options
exercised
7.2.2005
10.8.2005
1,735,450
2,653,569
63,757
82,415
1,671,693
2,571,154
9.2.2006
3,896,164
25,837
435,888
3,434,439
296
10.8.2006
4,063,233
29,188
443,653
3,590,392
300
15.3.2007
5,494,779
66,402
199,528
5,228,849
10.8.2007
5,628,813
23,472,008
207,281
474,880
38,471
5,360,387
5,383,061
17,636,741
486
606
Date of
Grant
220
Balance
No. of
as at holders at
31.12.2015 31.12.2015
Exercise
price
$
Exercisable period
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
34.
Date of
Grant
9.2.2004
10.8.2004
7.2.2005
10.8.2005
9.2.2006
10.8.2006
15.3.2007
10.8.2007
Balance
as at
1.1.2014
Options
lapsed
1,060,256
1,589,308
2,479,376
3,509,381
4,572,311
4,723,330
6,387,216
6,196,764
30,517,942
39,873
78,260
13,320
32,408
36,442
47,104
74,600
78,971
400,978
Options
exercised
Balance
No. of
as at holders at
31.12.2014 31.12.2014
1,020,383
1,511,048
730,606
1,735,450
823,404
2,653,569
639,705
3,896,164
612,993 4,063,233
817,837
5,494,779
488,980
5,628,813
6,644,956 23,472,008
Exercise
price
$
118
193
346
345
512
638
2.090
2.120
2.370
2.570
3.010
2.840
3.230
3.610
Exercisable period
10.2.2005
11.8.2005
8.2.2006
11.8.2006
10.2.2007
11.8.2007
16.3.2008
11.8.2008
to 9.2.2014
to 10.8.2014
to 7.2.2015
to 10.8.2015
to 9.2.2016
to 10.8.2016
to 15.3.2017
to 10.8.2017
(iii)
Proceeds from
share issue
$000
Share price
$
2,300,111
1,373,711
1,660,495
26,070
5,360,387
2.37 3.23
2.57 3.61
2.57 3.23
2.84 3.23
5,712
3,794
4,342
76
3.35 3.59
3.25 3.81
2.92 3.41
2.94 3.30
3,291,672
1,709,312
1,218,411
425,561
6,644,956
2.09 3.61
2.12 3.61
2.12 3.61
2.37 3.61
8,430
4,869
2,843
1,114
3.66 3.91
3.77 3.99
3.61 3.84
3.22 3.71
No. of shares
2015
January to March
April to June
July to September
October to December
2014
January to March
April to June
July to September
October to December
The weighted average share price for options exercised during the year was $3.40 (2014: $3.80). The weighted
average remaining contractual life for these options is 0.99 years (2014: 1.68 years).
The fair value of services received in return for share options granted are measured by reference to the fair value
of share options granted. The estimate of the fair value of the services received is measured based on a binomial
model, taking into account the terms and conditions upon which the options were granted. The Company ceased to
grant options under the ESOP with effect from 2007.
221
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
34.
2014
2013
Total
1,413,000
(172,358)
1,240,642
1,037,100
(152,283)
884,817
4,292,000
(336,485)
3,955,515
1,841,900
(11,844)
1,830,056
During the year, performance shares amounting to 1,529,222 ordinary shares were awarded in respect of grant made in
2012 under PSP2010.
The fair value of the performance shares is determined on conditional grant date using the Monte Carlo simulation model.
The signicant inputs to the model used for the conditional grants are as follows:
Year of grant
Market conditions
Volatility of Defensive Index (%)
Volatility of the Companys shares (%)
Correlation of volatility of Defensive Index/
MSCI Index vs. the Company (%)
Risk-free rate (%)
Share price ($)
Cost of equity (%)
Dividend yield
222
2015
2014
2013
9.18
14.71
9.76
15.35
10.47
14.66
57.2
51.2
52.7
1.45
0.54
0.24
3.43
3.79
4.16
7.60
6.90
7.00
(-- Managements forecast in line with dividend policy --)
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
34.
Date of grant
Number of
restricted shares
Number of
Number of
as at restricted shares restricted shares
grant date
lapsed
released
Balance
outstanding
as at
31.12.2015
RSP2010
25 February 2011
16 March 2011
22 March 2012
22 March 2013
19 September 2013
13 March 2014
4 April 2014
28 April 2014
16 March 2015
18 March 2015
1 May 2015
15 May 2015
1 June 2015
5 June 2015
50,000
7,380,041
4,617,900
4,347,000
90,000
4,873,600
300,000
1,404,751
12,000
5,054,850
20,000
211,900
45,000
24,000
1,033,826
898,565
1,916,229
395,388
129,979
40,000
6,343,239
2,896,893
1,283,004
60,000
100,000
683,937
211,900
10,000
2,976
822,442
1,147,767
30,000
4,478,212
200,000
720,814
12,000
4,924,871
20,000
45,000
24,000
During the year, restricted shares amounting to 4,284,804 (2014: 4,250,477) ordinary shares were awarded under
RSP2010.
The fair value of the restricted shares is determined at conditional grant date using the Monte Carlo simulation model.
223
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
34.
35.
2014
14.71
15.35
1.05 1.71
0.36 0.98
3.43
3.79
(-- Managements forecast in line with dividend policy --)
CAPITAL RESERVES
Included in capital reserves is:
224
(a)
an amount of $115,948,000 (2014: $115,948,000) relating to share premium of the respective pooled enterprises,
namely Singapore Technologies Aerospace Ltd, Singapore Technologies Electronics Limited, Singapore Technologies
Kinetics Ltd and Singapore Technologies Marine Ltd classied as capital reserve upon the pooling of interests during
the nancial year ended 31 December 1997; and
(b)
an amount of $375,000 (2014: $375,000) relating to an excess capital contribution from non-controlling shareholders
of a subsidiary in China following the additional capital injection in prior years; and
(c)
an amount of $3,073,000 (2014: nil) and $3,046,000 (2014: nil) for the Company and the Group respectively, relating
to realised loss on re-issuance of treasury shares under share-based payment arrangements of the Company.
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
36.
OTHER RESERVES
Note
Statutory
reserve
$000
Fair
value
reserve
$000
Sharebased
payment
reserve
$000
Premium
paid on
acquisition
of
non-controlling
interests
$000
(160,004)
4,060
31,299
82,662
(2,668)
(44,651)
Foreign
currency
translation
reserve
$000
Total
$000
The Group
At 1.1.2014
Other comprehensive income:
Net fair value changes on availablefor-sale financial assets
(i)
(2,020)
(2,020)
(ii)
(57,327)
(57,327)
(ii)
(9,891)
(9,891)
(iii)
18,330
37
121
(67)
18,422
1,336
1,336
50
50
19,716
(69,201)
121
(67)
(49,430)
Issue of shares
(19,559)
(19,559)
21,574
21,574
Disposal of a subsidiary
(4)
(4)
13
13
(140,288)
4,074
(37,902)
84,798
(2,739)
(92,057)
At 31.12.2014
225
3. 200-228.indd 225
8/3/16 11:38 am
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
36.
Note
Fair
value
reserve
$000
Sharebased
payment
reserve
$000
Premium
paid on
acquisition of
non-controlling
interests
$000
Total
$000
4,074
(37,902)
84,798
(2,739)
(92,057)
Foreign
currency
translation
reserve
$000
Statutory
reserve
$000
(140,288)
The Group
At 1.1.2015
Other comprehensive income:
Net fair value changes on availablefor-sale nancial assets
(i)
(3,883)
(3,883)
(ii)
3,658
3,658
(ii)
(2,805)
(2,805)
(iii)
33,840
(5)
200
(114)
33,929
(860)
(860)
32,980
(5)
(3,022)
200
(114)
30,039
Issue of shares
(1,144)
(1,144)
16,501
16,501
(17,689)
(17,689)
Acquisition of non-controlling
interests in subsidiaries
without a change in control
(2,406)
(2,406)
1,261
1,261
(107,308)
5,330
(40,924)
82,666
(5,259)
(65,495)
At 31.12.2015
226
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
36.
(i)
(ii)
(iii)
2015
$000
2014
$000
(3,546)
619
(337)
(3,883)
(2,639)
(2,020)
(12,868)
(66,601)
10,082
(739)
3,639
853
122
(67,218)
(1,727)
(8,764)
(34,980)
70,547
33,840
(14,579)
41,673
18,330
227
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
36.
In accordance with the Foreign Enterprise Law applicable to certain wholly-owned subsidiaries in the Peoples
Republic of China (PRC), the subsidiaries are required to make appropriation to a Statutory Reserve Fund (SRF).
At least 10% of the statutory after tax prots as determined in accordance with the applicable PRC accounting
standards and regulations must be allocated to the SRF until the cumulative total of the SRF reaches 50% of the
subsidiaries registered capital. Subject to approval from the relevant PRC authorities, the SRF may be used to
offset any accumulated losses or increase the registered capital of the subsidiaries. The SRF is not available for
standard distribution to shareholders.
(b)
In accordance with the Law of the PRC on Joint Ventures Using Chinese and Foreign Investment applicable to certain
subsidiaries, appropriations from the net prots are made to the Reserve Fund and the Enterprise Expansion Fund,
after offsetting accumulated losses from prior years (if any), and before prot distributions to the investors. The
percentage to be appropriated to the Reserve Fund and the Enterprise Expansion Fund is to be determined by the
Board of Directors of the PRC entities.
37.
RETAINED EARNINGS
Group
Retained by:
The Company
Subsidiaries
Associates and joint ventures
228
2015
$000
2014
$000
551,751
562,396
141,067
1,255,214
568,323
515,715
141,002
1,225,040
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
38.
DIVIDENDS
Group and Company
Final dividend paid in respect of the previous nancial year of 4.0 cents
(2014: 4.0 cents) per share
Special dividend paid in respect of the previous nancial year of 7.0 cents
(2014: 8.0 cents) per share
Interim dividend paid in respect of the current nancial year of 5.0 cents
(2014: 4.0 cents) per share
Additional nal dividend paid in respect of the previous nancial year
due to issue of shares before books closure date
2015
$000
2014
$000
124,864
124,295
218,512
248,591
155,519
498,895
124,774
497,660
(1,291)
497,604
1,197
498,857
The Directors propose a nal dividend of 5.0 cents (2014: 4.0 cents) per share amounting to $156.1 million
(2014: $124.9 million) and a special dividend of 5.0 cents (2014: 7.0 cents) per share amounting to $156.1 million
(2014: $218.5 million), in respect of the nancial year ended 31 December 2015. These dividends have not been recognised
as a liability as at year end as they are subject to approval of the shareholders at the Annual General Meeting of the
Company.
39.
2014
$000
9,886
(31,671)
45,357
12,087
(22,367)
36,589
29,391
(24,913)
6,036
27,514
(15,081)
2,251
78,116
(17,608)
(6,539)
2,289
124,517
(23,023)
(7,180)
2,246
Other related parties refer to subsidiaries, associates and joint ventures of immediate holding company.
229
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
40.
COMMITMENTS
(a)
Capital commitments
Group
(b)
2015
$000
2014
$000
96,614
145,345
Leases
Future minimum lease payments under non-cancellable operating leases are as follows:
Group
Third parties
Within 1 year
Between 1 and 5 years
After 5 years
Related parties
Within 1 year
Between 1 and 5 years
After 5 years
2015
$000
2014
$000
40,326
103,817
216,870
361,013
40,680
106,850
222,895
370,425
5,350
17,298
31,879
54,527
5,047
17,761
24,161
46,969
The Group has several operating lease agreements for leasehold land and buildings, ofce premises and computers.
The leases have varying terms, escalation clauses and renewal rights. Lease terms do not contain restrictions on
the Group activities concerning dividends, additional debt or further leasing.
None of the operating leases is subject to contingent rent arrangements.
230
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
40.
COMMITMENTS (continued)
(c)
Within 1 year
Between 1 and 5 years
After 5 years
2015
$000
2014
$000
25,196
51,457
15,867
92,520
17,872
27,970
15,424
61,266
Investments
As at 31 December 2015, the Group has outstanding commitments in respect of uncalled capital to the extent of
$0.2 million (2014: $0.7 million) in subsidiaries.
(e)
The Group is a party to various claims that arise in the normal course of the Groups business. The total
liability on these matters cannot be determined with certainty. However, in the opinion of management, the
ultimate liability, to the extent not otherwise provided for, will not materially impact the consolidated nancial
statements of the Group.
(ii)
The Groups certain subsidiaries provided equipment buy-back guarantees to nancial institutions which
have extended equipment nancing to the customers for their purchase of their products. The outstanding
equipment buy-back guarantees as at 31 December 2015 amounted to $4,553,000 (2014: $10,531,000).
231
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
41.
SEGMENT INFORMATION
(a)
Aerospace
Provides a spectrum of maintenance and engineering services that include airframe, engine and component
maintenance, repair and overhaul; engineering design and technical services; and aviation materials and
management services, including Total Aviation Support.
(ii)
Electronics
Delivers innovative system solutions to government, commercial, defence, and industrial customers worldwide.
It specialises in the design, development and integration of advanced electronics and communications systems,
such as broadband radio frequency and satellite communication, e-Government solutions, information
communications technologies and IT, rail and trafc management, real-time command and control, modelling
and simulation, eLearning and interactive digital media, training services, intelligent building management
and information security.
(iii)
Land Systems
Delivers integrated land systems, specialty vehicles and their related through life support for defence,
homeland security and commercial applications.
(iv)
Marine
Provides turnkey building, repair and conversion services for a wide spectrum of naval and commercial
vessels. In shipbuilding, it has the proven capabilities to provide turnkey solutions from concept denition
to detailed design, construction, on-board system installation and integration, testing, commissioning to
through-life support. It has also established a track record in providing high engineering content shiprepair
and ship conversion services for a worldwide clientele. It also provides a suite of sustainable environmental
engineering solutions.
Other operations include research and development, treasury, investment holding and provision of management,
consultancy, integrated logistics management, integrated facilities management, warehousing and other support
services. None of these segments meets any of the quantitative thresholds for determining reportable segments in
nancial years 2015 and 2014.
Management monitors the operating results of its business units separately for the purpose of making decisions
about resource allocation and performance assessment. Segment performance is evaluated based on operating
prot or loss which in certain respects, as explained in the table below, is measured differently from operating
prot or loss in the consolidated nancial statements.
Inter-segment pricing is based on terms negotiated between the parties which are intended to reect
competitive terms.
232
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
41.
Aerospace
$000
Electronics
$000
Land
Systems
$000
Marine
$000
Others
$000
2,089,772
5,842
2,095,614
1,708,959
34,215
1,743,174
1,395,587
5,432
1,401,019
958,028
345
958,373
182,677
27,191
209,868
222,013
23,856
(578)
25,596
(19,157)
178,699
14,654
3,683
(6,122)
47,189
13,239
(1,645)
2,880
(13,252)
71,795
7,482
(115)
3,716
(103)
(70,129)
560,949
77,185
(103,835)
60,704
(564,433)
2,039
(56,869)
92,521
510,271
55,747
(299)
56,191
(49,948)
38,870
290,600
(56,900)
(6,981)
38
190,952
(27,191)
(761)
16,590
65,001
(14,395)
5,130
5,500
88,275
(2,558)
8
464,170
7,385
(2,658)
(468,696)
(5,000)
58,340
630,302
(98,659)
(2,604)
226,719
163,000
55,736
85,725
471,555
(473,696)
529,039
Other assets
Associates and joint ventures
Segment assets
2,328,622
311,473
2,640,095
1,860,634
1,397
1,862,031
1,855,080
121,781
1,976,861
994,623 4,579,005
8,229
17,657
1,002,852 4,596,662
(3,910,420) 7,707,544
1,023
461,560
(3,909,397) 8,169,104
Segment liabilities
1,874,224
1,637,723
1,713,471
810,727 2,510,204
(2,638,172) 5,908,177
219,757
71,470
5,956
52,878
39,871
23,247
38,981
4,447
393
Elimination
$000
Group
$000
2015
Revenue
External sales
Inter-segment sales
Capital expenditure
Depreciation and amortisation
Impairment losses
Other non-cash expenses
18,866
29,609
18,244
7,404
6,335,023
(73,025)
(73,025) 6,335,023
(43)
332,992
187,292
4,447
6,359
233
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
41.
Aerospace
$000
Electronics
$000
Land
Systems
$000
Marine
$000
Others
$000
2,061,225
10,239
2,071,464
1,583,288
30,791
1,614,079
1,396,880
8,252
1,405,132
1,341,084
867
1,341,951
156,956
24,069
181,025
261,471
7,059
(5,035)
11,894
(24,670)
174,371
10,402
(6)
4,867
(6,136)
38,727
14,525
(1,570)
3,124
(11,655)
100,835
12,115
(37)
3,931
(76,109)
628,530
(24)
115,809
(112,961)
55,678
(627,456)
1,672
(96,075)
110,225
554,973
45,175
(5,000)
43,550
(45,197)
32,280
282,999
(53,892)
(8,963)
470
183,968
(30,614)
(1,211)
13,050
56,201
(11,001)
5,123
5,936
122,780
(14,695)
1
555,245
(3,491)
5,446
(550,510)
12
57,182
650,683
(113,693)
(5,038)
220,144
152,143
50,323
108,086
551,754
(550,498)
531,952
Other assets
Associates and joint ventures
Segment assets
2,202,519
322,508
2,525,027
1,783,773
10,297
1,794,070
2,091,015
112,750
2,203,765
1,106,096 4,250,300
8,159
17,657
1,114,255 4,267,957
(3,592,749) 7,840,954
6,981
478,352
(3,585,768) 8,319,306
Segment liabilities
1,779,360
1,596,964
1,931,326
955,383 2,102,832
(2,311,169) 6,054,696
87,674
60,166
6,186
807
61,893
38,362
638
56
86,318
38,053
21,049
20
Elimination
$000
Group
$000
2014
Revenue
External sales
Inter-segment sales
Capital expenditure
Depreciation and amortisation
Impairment losses
Other non-cash expenses
234
37,581
27,098
10,635
6,869
6,539,433
(74,218)
(74,218) 6,539,433
(42)
(1)
284,101
170,506
27,873
885
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
41.
Asia
USA
Europe
Others
(c)
Non-current assets
2015
$000
2014
$000
2015
$000
2014
$000
4,695,163
1,498,855
81,354
59,651
6,335,023
4,981,137
1,420,462
75,513
62,321
6,539,433
2,095,321
878,105
175,000
98,236
3,246,662
1,785,853
781,302
194,450
101,017
2,862,622
Asia
USA
Europe
Others
42.
2015
$000
2014
$000
3,940,047
1,503,208
311,526
580,242
6,335,023
3,780,770
1,525,088
290,317
943,258
6,539,433
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
42.
Company
2014
$000
2015
$000
2014
$000
618,504
(1,019,158)
(400,654)
1,147,308
(735,904)
411,404
70,303
70,303
316,033
316,033
501,181
(179,073)
322,108
254,541
(282,724)
(28,183)
814,280
(628,472)
185,808
532,724
(562,959)
(30,235)
The Group has cash balances placed with reputable banks and nancial institutions. The Group manages its interest
rate risk on its interest income by placing the cash balances in varying maturities and interest rate terms with due
consideration to operating cash ow requirements and optimising yield.
The Groups debts include 10-year bonds issued, bank loans and lease commitments. The Group seeks to minimise its
interest rate risk exposure through tapping different sources of funds to renance the debt instruments and/or enter
into interest rate swaps, where appropriate. Movements in interest rates will therefore have an impact on the Group.
An increase of 50 basis points in interest rate at the reporting date would lead to a reduction of the Groups prot or loss
and other comprehensive income by approximately $0.9 million (2014: $1.4 million) and $7.7 million (2014: $2.4 million)
respectively. A decrease in 50 basis points in interest rate at the reporting date would increase the Groups prot or loss
and other comprehensive income by approximately $0.9 million (2014: $1.4 million) and $7.9 million (2014: $2.6 million)
respectively. This analysis assumes that all other variables remain constant.
Fixed deposits, bonds, bank loans and other nancial instruments with interest rate xed over the contractual period are
excluded from the sensitivity analysis. Information relating to the Groups interest rate risk exposure is also disclosed in
the notes on the Groups borrowings, investments and loans receivable, where applicable.
236
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
42.
237
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
42.
Within
1 year
$000
Between
1 and 5 years
$000
More than
5 years
$000
(491,131)
(827,635)
(2,181)
(38,161)
(700)
(1,928,966)
(176,697)
(33,950)
(1,673)
(1,424)
(1,699,285)
(314,434)
(793,685)
(508)
(5,241)
(700)
(229,022)
(31,496)
(659)
(699,352)
696,823
(456,604)
453,402
(242,748)
243,421
(297)
(1,166)
869
23,593
(83,706)
1,784
(83,706)
21,809
(351,486)
(804,516)
(669)
(36,911)
(1,000)
(1,951,160)
(76,460)
(31,702)
(18)
(1,818)
(1,675,134)
(275,026)
(772,814)
(651)
(4,550)
(1,000)
(276,026)
(30,543)
(791,244)
777,387
(553,680)
541,255
(237,564)
236,132
(667)
(857)
190
24,184
(47,776)
4,381
(47,776)
19,803
The Group
2015
Bank loans
Bonds
Other loans
Lease obligations
Other long-term payables
Trade and other payables
Derivative nancial instruments:
Forward currency contracts
- gross payments
- gross receipts
Interest rate swaps
- settled net
Cross currency interest rate swaps
- settled net
Financial guarantee
2014
Bank loans
Bonds
Other loans
Lease obligations
Other long-term payables
Trade and other payables
Derivative nancial instruments:
Forward currency contracts
- gross payments
- gross receipts
Interest rate swaps
- settled net
Cross currency interest rate swaps
- settled net
Financial guarantee
238
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
42.
Within
1 year
$000
Between
1 and 5 years
$000
(32,157)
(752,229)
(20,619)
(1,742)
(11,538)
(750,487)
(1,547)
1,652
(297,066)
(1,547)
1,652
(297,066)
(43,967)
(638,327)
(26,961)
(201,973)
(17,006)
(436,354)
(722)
803
(274,748)
(274,748)
(722)
803
The Company
2015
Trade payables and accruals
Amounts due to related parties
Derivative nancial instruments:
Forward currency contracts
- gross payments
- gross receipts
Intra-group nancial guarantee
2014
Trade payables and accruals
Amounts due to related parties
Derivative nancial instruments:
Forward currency contracts
- gross payments
- gross receipts
Intra-group nancial guarantee
For derivative nancial instruments, the cash inows/(outows) represent the contractual undiscounted cash ows
relating to these instruments. The amounts are compiled on a net basis for derivatives that are net-settled. Gross inows
and outows are included for derivatives that are gross-settled on a simultaneous basis. Net-settled derivative nancial
assets are included in the maturity analysis as they are held to hedge the cash ow variability of the Groups bank loans
and bonds.
Except for the cash ow arising from the intra-group nancial guarantee, it is not expected that the cash ows included in
the maturity analysis of the Group and the Company could occur signicantly earlier, or at signicantly different amounts.
At the reporting date, the Company does not consider it probable that a claim will be made against the Company under
the intra-group nancial guarantee.
239
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
42.
Investments
Long-term receivables
Finance lease receivables
Derivative nancial instruments, non-current
Trade receivables
Amounts due from related parties
Advances and other receivables
Bank balances and other liquid funds
Recognised nancial assets
Company
2015
$000
2014
$000
2015
$000
2014
$000
511,653
683
3,696
25,790
911,799
61,388
109,336
951,494
2,575,839
246,490
13,223
7,845
24,263
1,028,504
71,188
105,058
1,470,723
2,967,294
825,404
4,871
82,091
912,366
81
547,070
3,573
404,876
955,600
The Group limits its exposure to credit risk on investments held by investing mostly in bonds of high credit ratings.
Management actively monitors the credit ratings and does not expect any counterparty to fail to meet its obligations.
Derivatives are entered into with nancial institutions, which have long-term rating of A3 by Moodys, A- by Standard &
Poors or the equivalent by a reputable credit rating agency.
Cash and bank deposits are placed with reputable nancial institutions.
As at 31 December 2015, there were no signicant concentrations of credit risk, except for 34% (2014: 43%) of trade debts
relating to three major customers of the Group. The table below analyses the trade receivables by the Groups main
reportable segments.
Group
Aerospace
Electronics
Land Systems
Marine
Others
240
2015
$000
2014
$000
269,660
324,607
236,943
63,666
16,923
911,799
261,162
354,998
303,153
89,863
19,328
1,028,504
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
42.
Company
2015
$000
2014
$000
2015
$000
2014
$000
684,033
264,517
58,029
51,439
22,364
1,080,382
734,236
365,265
52,347
48,839
23,960
1,224,647
830,170
830,170
550,643
550,643
The movements in allowance for impairment losses in respect of nancial assets excluding cash and cash equivalents,
intangibles and derivative nancial instruments are as follows:
Group
2015
$000
84,467
13,349
(22,201)
282
1,111
77,008
Company
2014
$000
2015
$000
2014
$000
76,230
17,797
(10,572)
1,012
84,467
6,981
6,440
141
13,562
4,901
2,000
80
6,981
241
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
43.
Note
Quoted
prices
in active
markets for
identical
instruments
(Level 1)
$000
Signicant
other
Signicant
observable unobservable
inputs
inputs
(Level 2)
(Level 3)
$000
$000
Total
$000
interests
The Group
2015
Financial Assets
Available-for-sale
- Equity investments (quoted)
- Venture capital funds and limited partnership
- Bonds (unquoted)
Fair value through prot or loss
- Equity investments (quoted)
Derivatives
- Forward currency contracts
- Cross currency interest rate swaps
- Interest rate swaps
- Embedded derivatives
15
15
15, 24
189
501,181
12
189
12
501,181
24
369
369
558
9,187
22,135
117
871
533,491
12
9,187
22,135
117
871
534,061
11,716
475
23,441
35,632
11,716
475
23,441
35,632
15
15
15, 24
378
241,778
12
378
12
241,778
24
359
359
737
2,612
22,247
575
267,212
12
2,612
22,247
575
267,961
16,469
653
15,548
32,670
16,469
653
15,548
32,670
Financial Liabilities
Derivatives
- Forward currency contracts
- Interest rate swaps
- Embedded derivatives
2014
Financial Assets
Available-for-sale
- Equity investments (quoted)
- Venture capital funds and limited partnership
- Bonds (unquoted)
Fair value through prot or loss
- Equity investments (quoted)
Derivatives
- Forward currency contracts
- Cross currency interest rate swaps
- Embedded derivatives
Financial Liabilities
Derivatives
- Forward currency contracts
- Interest rate swaps
- Embedded derivatives
242
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
43.
The Company
2015
Financial Assets
Derivatives
-Forward currency contracts
105
2014
Financial Assets
Derivatives
- Forward currency contracts
81
Level 1 Quoted prices (unadjusted) in active markets for identical assets or liabilities;
(b)
Level 2 Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly (i.e., as prices) or indirectly (i.e., derived from prices); and
(c)
Level 3 Inputs for the asset or liability that are not based on observable market data (unobservable inputs).
The following methods and assumptions are used to estimate the fair value of each class of nancial instruments.
Bank balances, other liquid funds and short-term receivables
The carrying amounts approximate fair values due to the relatively short-term maturity of these instruments.
Quoted and unquoted investments
The Group recognises transfers between levels of the fair value hierarchy as of the end of the reporting period
during which the transfer has occurred. There have been no transfer from Level 2 to Level 1 and vice versa in 2015
(2014: no transfers in either directions).
243
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
43.
244
2015
$000
2014
$000
12
43
12
(31)
12
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
43.
Loans and
receivables
$000
Fair value
through
prot or loss
$000
Derivatives
used for
hedging
$000
Available
-for-sale
$000
Liabilities at
amortised
cost
$000
Total
carrying
amount
$000
Fair
value
$000
interests
The Group
2015
Assets
Investments
Long-term receivables
Finance lease receivables
Derivative nancial
instruments
Trade receivables
Amounts due from related
parties
Advances and other
receivables
Short-term investments
Bank balances and other
liquid funds
Liabilities
Creditors and accruals
Amounts due to related
parties
Lease obligations
Bank loans
Other loans
Other long-term payables
Bonds
Derivative nancial
instruments
683
3,696
328,684
328,684
683
3,696
328,684
683
3,696
911,799
23,006
2,784
25,790
911,799
25,790
911,799
61,388
61,388
61,388
102,816
2,129
369
4,391
182,600
109,336
182,969
109,336
182,969
951,494
2,031,876
25,504
7,175
511,284
951,494
2,575,839
951,494
2,575,839
3,439
20,578
1,908,167
1,932,184
1,921,324
20,699
19,436
466,140
2,088
700
705,567
20,699
19,436
466,140
2,088
700
705,567
20,699
18,460
466,140
2,088
664
763,849
1,639
5,078
9,976
30,554
3,122,797
11,615
3,158,429
11,615
3,204,839
245
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
43.
Loans and
receivables
$000
Fair value
through
prot or loss
$000
Derivatives
used for
hedging
$000
Available
-for-sale
$000
Liabilities at
amortised
cost
$000
Total
carrying
amount
$000
Fair
value
$000
interests
The Group
2014
Assets
Investments
Long-term receivables
Finance lease receivables
Derivative nancial
instruments
Trade receivables
Amounts due from related
parties
Advances and other
receivables
Short-term investments
Bank balances and other
liquid funds
Liabilities
Creditors and accruals
Amounts due to related
parties
Lease obligations
Bank loans
Other loans
Other long-term payables
Bonds
Derivative nancial
instruments
246
13,223
7,845
127,211
127,211
13,223
7,845
127,211
13,223
7,845
1,028,504
23,278
985
24,263
1,028,504
24,263
1,028,504
71,188
71,188
71,188
103,887
462
359
709
118,920
105,058
119,279
105,058
119,279
1,470,723
2,695,370
24,099
1,694
246,131
1,470,723
2,967,294
1,470,723
2,967,294
5,257
16,153
1,919,925
1,941,335
1,936,667
31,235
18,673
340,942
589
1,000
658,424
31,235
18,673
340,942
589
1,000
658,424
31,235
17,938
340,942
589
912
730,227
821
6,078
10,439
26,592
2,970,788
11,260
3,003,458
11,260
3,069,770
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
43.
Loans and
receivables
$000
Fair value
through
prot or loss
$000
Liabilities
at amortised
cost
$000
Total
carrying
amount
$000
Fair
value
$000
interests
The Company
2015
Assets
Amounts due from related parties
Advances and other receivables
Bank balances and other liquid funds
Liabilities
Trade payables and accruals
Amounts due to related parties
825,404
4,766
82,091
912,261
105
105
825,404
4,871
82,091
912,366
825,404
4,871
82,091
912,366
32,157
646,016
678,173
32,157
646,016
678,173
31,333
646,016
677,349
547,070
3,573
404,876
955,519
81
81
81
547,070
3,573
404,876
955,600
81
547,070
3,573
404,876
955,600
43,967
604,401
648,368
43,967
604,401
648,368
42,893
604,401
647,294
2014
Assets
Derivative nancial instruments
Amounts due from related parties
Advances and other receivables
Bank balances and other liquid funds
Liabilities
Trade payables and accruals
Amounts due to related parties
247
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
43.
2014
Liability
$000
Contractual/
notional
amount
$000
Liability
$000
interests
Cash ow hedges
Forward currency contracts:
- to hedge conrmed sales in
foreign currencies
- to hedge rm purchase
commitments in foreign
currencies
- to hedge accounts receivable in
foreign currencies
- to hedge accounts payable in
foreign currencies
Interest rate swaps
Embedded derivatives
(a)(i)
191,950
2,310
(4,464)
275,705
1,505
(6,016)
(a)(i)
214,240
2,599
(4,708)
180,123
134
(5,528)
(a)(i)
38,104
978
(334)
4,861
(154)
(a)(i)
(b)
(a)(i)
5,564
325,358
393,595
3
117
(70)
(475)
(20,497)
2,045
231,158
433,068
(143)
(653)
(12,211)
(a)(i)
23,430
1,000
(a)(i)
173
25
742
49
(a)(i)
14,587
143
22,971
(952)
(a)(i)
190
(6)
14,060
(935)
208,163
3,905
124,025
73,620
2,117
12
22,135
871
32,310
(6,520)
25,790
(2,116)
(18)
(2,944)
(35,632)
24,017
(11,615)
230,110
52,807
246,350
249,512
462
456
22,247
575
25,434
(1,171)
24,263
(2,671)
(70)
(3,337)
(32,670)
21,410
(11,260)
248
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
43.
As at 31 December 2015, the Group has forward currency contracts and embedded derivatives separated from
the foreign currency portion of sales contracts amounting to $881,833,000 (2014: $933,575,000) designated
as hedges of conrmed sales in foreign currencies, rm purchase commitments in foreign currencies, accounts
receivable in foreign currencies and accounts payable in foreign currencies.
The maturity dates of the forward currency contracts and embedded derivatives separated from the foreign
currency portion of the sales contracts approximate the timing of the expected cash ows of their respective
hedged items, which are on varying periods up to ve years (2014: six years) from the nancial year-end.
(ii)
(b)
As at 31 December 2015, the Group has outstanding forward currency contracts and embedded
derivatives separated from the foreign currency portion of sales contracts amounting to $285,688,000
(2014: $532,429,000). These were not designated as accounting hedges, but were used to economically
hedge conrmed sales in foreign currencies and rm purchase commitments in foreign currencies.
(c)
are subject to an enforceable master netting arrangement, irrespective of whether they are offset in the balance
sheets.
Financial instruments such as trade receivables and trade payables are not disclosed in the tables below unless they are
offset in the balance sheets.
The derivative transactions that the Group and the Company enter into, are not subject to master netting arrangements.
These derivative transactions are also not offset into the balance sheets as the Group and its counterparties do not
intend to settle on a net basis or to realise the assets and settle the liabilities simultaneously.
249
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
43.
Gross amount
of recognised
nancial
instruments
$000
Gross amounts
of recognised
nancial
instruments
offset in the
balance sheets
$000
Net amounts
of nancial
instruments
presented in
the balance
sheets
$000
Related
nancial
instruments
that are not
offset
$000
Net
amount
$000
interests
The Group
31 December 2015
Financial assets
Trade receivables
1,419
1,419
Financial liabilities
Trade payables
1,699
1,419
280
280
55
55
122
55
67
67
31 December 2014
Financial assets
Trade receivables
Financial liabilities
Trade payables
The gross amounts of financial assets and financial liabilities and their net amounts as presented in the balance
sheets that are disclosed in the above tables are measured amortised cost.
The amounts in the above tables that are offset in the balance sheets are measured on the same basis.
250
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
44.
EcoServices,
LLC
$000
20%
49.9%
Revenue
Prot/(loss)
Other comprehensive income
Total comprehensive income
Attributable to NCI:
- Prot/(loss)
- Other comprehensive income
- Total comprehensive income
234,571
31,899
1,930
33,829
6,380
386
6,766
Non-current assets
Current assets
Non-current liabilities
Current liabilities
Net assets
Net assets attributable to NCI
57,997
235,199
(15,981)
(82,438)
194,777
38,955
Name of NCI
2015
NCI percentage
Guizhou
Jonyang
Kinetics
Co., Ltd
$000
Jiangsu
Huatong
Kinetics
Co., Ltd
$000
49.95%
40%
24.7%
24,997
795
3,302
4,097
17,270
229
229
140,804
(8,639)
149
(8,490)
31,862
(18,103)
1,683
(16,420)
397
1,648
2,045
114
114
(3,455)
546
(2,909)
(4,471)
366
(4,105)
4,226
(99)
4,127
32,487
2,550
35,529 102,893
27,625
57,159
200,741
42,227
(8,080)
(9,379) (31,592)
(4,091) (38,422) (177,938) (70,766)
56,021
13,207
48,953
42,762
27,954
6,597
19,581
10,562
22,894
STELOP
Pte. Ltd. 6
$000
27,937
4,438
(8,149)
(23,531)
(39,938)
(30,956)
(1,240)
(236)
1,593
(51,554)
(20,636)
(2,641)
(1,218)
(19,211)
64,772
(23,655)
557
(9,603)
(41,149)
(26,720)
(6,000)
(879)
Other
individually
immaterial Intra-group
subsidiaries elimination
$000
$000
(587)
(12)
(599)
Total
$000
2,604
2,835
5,439
2,332 128,875
Due to the changes to the shareholders agreement, the Group has reclassied its investment in STELOP Pte. Ltd. (STELOP) from a joint
venture to a subsidiary with effect from 1 September 2015. The net assets of STELOP include cash and cash equivalents of $17,676,000.
251
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
44.
EcoServices,
LLC
$000
Guizhou
Jonyang
Kinetics
Co., Ltd
$000
20%
49.9%
40%
24.7%
Revenue
Prot/(loss)
Other comprehensive income
Total comprehensive income
Attributable to NCI:
- Prot/(loss)
- Other comprehensive income
- Total comprehensive income
269,186
42,267
(2,517)
39,750
30,038
3,853
2,221
6,074
129,717
(15,029)
895
(14,134)
54,227
(9,421)
1,360
(8,061)
8,453
(503)
7,950
1,923
1,108
3,031
(6,012)
379
(5,633)
(2,327)
296
(2,031)
3,547
(716)
2,831
Non-current assets
Current assets
Non-current liabilities
Current liabilities
Net assets
Net assets attributable to NCI
61,034
237,244
(15,900)
(91,197)
191,181
38,236
34,452
31,384 105,789
24,299 235,131
56,907
(7,838) (41,299)
(5,065) (202,452) (62,009)
53,686
56,225
59,388
26,789
22,490
14,669
27,403
61,956
(19,659)
(40,000)
(1,794)
(431)
(11,793)
(7,753)
(23,364)
2,495
30,289
2,397
(15,600)
2,297
(14,018)
(28,622)
17,086
(8,000)
(3,926)
(3,706)
Name of NCI
2014
NCI percentage
252
Jiangsu
Other
Huatong individually
Kinetics immaterial Intra-group
Co., Ltd subsidiaries elimination
$000
$000
$000
(546)
(18)
(564)
Total
$000
5,038
546
5,584
2,820 132,407
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
45.
CAPITAL MANAGEMENT
The primary objective of the Groups capital management is to ensure that it maintains a strong credit rating and healthy
nancial metrics in order to support its business and maximise shareholder value. Capital consists of total shareholders
funds and gross debts.
The Group manages its capital structure and makes adjustment to it, in the light of changes in economic and nancial
market conditions. The Group may adjust the dividend payout to shareholders, buy back or issue new shares to optimise
capital structure within the Group. No major changes were made in the objectives, policies or processes during the years
ended 31 December 2015 and 31 December 2014.
The Group is currently in a net cash position. The Group will continue to be guided by prudent nancial policies of which
gearing is an important aspect. Neither the Company nor any of its subsidiaries is subject to externally imposed capital
requirements other than those imposed by local regulatory bodies.
Group
Gross debt
Bank loans
Bonds
Capitalised lease obligations
Other loans
Shareholders funds
Share capital
Treasury shares
Other reserves
Retained earnings
Non-controlling interests
2015
$000
2014
$000
466,140
705,567
19,436
2,088
1,193,231
340,942
658,424
18,673
589
1,018,628
895,926
(66,870)
47,782
1,255,214
2,132,052
128,875
2,260,927
889,426
(6,529)
24,266
1,225,040
2,132,203
132,407
2,264,610
0.5
0.4
944,119
501,181
1,445,300
(1,193,231)
252,069
1,462,612
241,778
1,704,390
(1,018,628)
685,762
253
Notes to the
Financial Statements
31 December 2015
(Currency - Singapore dollars unless otherwise stated)
46.
254
SUBSEQUENT EVENT
(a)
In January 2016, the Group acquired an additional 20% equity interest in Elbe Flugzeugwerke GmbH for a
consideration of Euro98,700,000 comprising of Euro3,200,000 of cash and Euro95,500,000 of A320/A321 PTF
engineering development work. Upon completion of the acquisition, the Groups interest in Elbe Flugzeugwerke
GmbH will increase from 35% to 55% and Elbe Flugzeugwerke GmbH will become a subsidiary of the Group.
(b)
In February 2016, a subsidiary, ST Aerospace Resources Pte. Ltd. (STA Resources) entered into an agreement to
divest 50% of its equity interest in a wholly-owned subsidiary, Keystone Holdings (Global) Pte. Ltd. to SJ Aviation
Capital Pte. Ltd., for a consideration estimated to be US$10,700,000. The completion of the agreement will be
subject to the customary closing conditions that will lead to the execution of a joint venture agreement. Upon
completion, STA Resources and SJ Aviation Capital Pte. Ltd. will each own a 50% shareholding in Keystone Holdings.
(c)
In February 2016, a subsidiary, Singapore Technologies Aerospace Ltd (ST Aerospace) received a Writ of Summons
issued in the Court of Toulouse, France, by a number of passenger families against a number of defendants
(including ST Aerospace) for losses arising out of an Airbus Air Asia ight from Indonesia to Singapore on
28 December 2014 (the Claim). Management asserts that neither ST Aerospace nor any of its subsidiaries were
providing line maintenance support to Air Asias eet at the time and were not therefore asked to assist the
Indonesian Accident Investigation Board when it conducted its investigation and issued its nal report in 2015.
Accordingly, ST Aerospace does not consider that the Claim against it has any merit and no provisions have been
made as at 31 December 2015.
SGX Listing
Manual Requirements
31 December 2015
(Currency - Singapore dollars)
2015
$000
2014
$000
2015
$000
657
645
(178) *
4,239
4,554
31,137
591
215
190
13,236
130
120,535
2,296
4,083
45,728
4,490
141,092
2,169
8,082
180
143
2,174
180
2,599
11,977
2,775
7,048
19,976
23,036
40,387
65,704
181,479
2014
$000
255
INCOME STATEMENT
2015
$000
Revenue
Cost of sales
Gross prot
2,095,614
(1,732,054)
363,560
2,071,464
(1,664,645)
406,819
(8,355)
(114,536)
(18,656)
222,013
(10,892)
(113,731)
(20,725)
261,471
Other income
Other expenses
Other income, net
23,856
(578)
23,278
7,059
(5,035)
2,024
Finance income
Finance costs
Finance income/(costs), net
25,596
(19,157)
6,439
11,894
(24,670)
(12,776)
38,870
290,600
32,280
282,999
Taxation
Prot for the year
(56,900)
233,700
(53,892)
229,107
226,720
6,980
233,700
220,144
8,963
229,107
Attributable to:
Shareholder of the Company
Non-controlling interests
256
2014
$000
BALANCE SHEET
ASSETS
Non-current assets
Property, plant and equipment
Associates and joint ventures
Investments
Intangible assets
Derivative nancial instruments
Long-term receivables, non-current
Deferred tax assets
Current assets
Inventories and work-in-progress
Trade receivables
Amount due from related parties, current
Advances and other receivables
Long-term receivables, current
Short-term investments
Bank balances and other liquid funds
TOTAL ASSETS
2015
$000
2014
$000
820,145
311,473
12
141,239
136
64
11,840
1,284,909
671,068
322,508
12
126,958
1,534
19,941
1,142,021
494,257
489,856
43,205
92,946
279
369
234,274
1,355,186
560,001
388,430
35,173
144,118
11,428
359
243,497
1,383,006
2,640,095
2,525,027
103,347
528,428
379,553
52,940
146,336
51,273
436
654
1,262,967
60,244
500,842
360,864
47,538
105,617
64,518
330
1,139,953
92,219
243,053
184,081
149,332
53,170
102,991
18,682
700
94
102,207
611,257
237,838
180,794
39,689
29,769
17,341
1,000
132,976
639,407
1,874,224
765,871
1,779,360
745,667
686,310
79,561
765,871
668,421
77,246
745,667
2,640,095
2,525,027
257
258
2015
$000
2014
$000
350,010
257,966
(175,280)
1,175
34,291
3
(199,059)
(4,235)
(7,455)
(60,123)
2,318
27,125
2
(65,410)
(632)
(622)
(640)
(12,024)
(10,240)
(190,682)
588
79,936
(6,938)
(546)
77,596
(240,988)
(81,764)
(7,410)
(11,156)
(330,753)
6,772
216,000
(290,014)
(371)
290,224
(419,113)
(107,299)
(12,525)
(14,427)
(15,952)
243,497
6,729
234,274
(132,910)
382,022
(5,615)
243,497
FINANCIAL HIGHLIGHTS
2015
$000
2014
$000
2013
$000
2012
$000
2011
$000
2,095,614
2,071,464
2,088,105
2,025,627
1,926,800
293,483
222,013
290,600
226,720
321,637
261,471
282,999
220,144
342,022
291,828
319,442
259,214
323,320
274,306
297,840
253,242
299,886
242,114
278,198
231,794
820,145
464,764
494,257
671,068
470,953
560,001
679,552
469,284
666,523
630,709
298,485
603,391
836,777
255,096
334,451
626,286
579,149
551,883
614,346
498,591
234,643
243,856
382,226
305,219
253,904
1,262,967
611,257
1,139,953
639,407
1,519,751
703,080
1,374,363
601,082
1,082,014
629,349
368,512
(18,560)
336,358
79,561
368,512
(41,493)
341,402
77,246
152,512
(37,753)
338,557
73,321
152,512
(73,513)
341,709
55,997
152,512
(65,331)
332,843
47,432
48.39
163.47
11.2
29.2
8.9
16.9
46.99
159.16
11.1
29.2
9.1
15.7
102.65
208.56
12.7
48.0
9.7
19.6
100.29
238.35
12.7
52.0
10.5
20.1
115.90
233.73
12.3
48.8
10.8
20.1
Productivity Data
Average staff strength (numbers)
Revenue per employee ($)
Net prot per employee ($)
Employment costs ($)
Employment costs per $ of revenue ($)
7,126
294,080
31,816
625,475
0.30
7,314
283,219
30,099
607,228
0.29
7,370
283,325
35,172
648,113
0.31
7,307
277,217
34,657
657,440
0.32
7,303
263,837
31,740
608,257
0.31
173,674
11.4
24,372
162,092
10.1
22,162
217,064
14.4
29,452
189,716
14.8
25,964
180,047
14.2
24,654
1,002,326
140,658
1.60
975,569
133,384
1.61
1,035,479
140,499
1.60
1,032,108
141,249
1.57
959,184
131,341
1.58
0.64
0.48
0.72
0.47
0.79
0.50
0.83
0.51
0.63
0.50
Income Statement
Revenue
Prot
EBITDA
EBIT
PBT
Net Prot
Balance Sheet
Property, plant and equipment
Intangible and other assets
Inventories and work-in-progress
Trade receivables, deposits and
prepayments
Bank balances and other liquid funds,
and short-term investments
Current liabilities
Non-current liabilities
Share capital
Capital and other reserves
Retained earnings
Non-controlling interests
Financial Indicators
Earnings per share (cents)
Net assets value per share (cents)
Return on sales (%)
Return on equity (%)
Return on total assets (%)
Return on capital employed (%)
259
INCOME STATEMENT
2015
$000
Revenue
Cost of sales
Gross prot
1,743,174
(1,222,376)
520,798
1,614,079
(1,125,260)
488,819
(90,657)
(162,649)
(88,793)
178,699
(82,982)
(153,706)
(77,760)
174,371
Other income
Other expenses
Other income, net
14,654
14,654
10,402
(6)
10,396
Finance income
Finance costs
Finance costs, net
3,683
(6,122)
(2,439)
4,867
(6,136)
(1,269)
38
190,952
470
183,968
Taxation
Prot for the year
(27,191)
163,761
(30,614)
153,354
163,000
761
163,761
152,143
1,211
153,354
Attributable to:
Shareholder of the Company
Non-controlling interests
260
2014
$000
BALANCE SHEET
ASSETS
Non-current assets
Property, plant and equipment
Associates and joint ventures
Investments
Intangible assets
Long-term receivable, non-current
Deferred tax assets
Derivative nancial instruments, non-current
Current assets
Inventories and work-in-progress
Trade receivables
Amounts due from related parties, current
Other receivables, deposits and prepayments
Advance payments to suppliers
Loan receivables, current
Bank balances and other liquid funds
TOTAL ASSETS
2015
$000
2014
$000
185,192
1,397
9,902
335,049
913
29,726
40
562,219
179,704
10,297
3,963
304,545
187
30,023
528,719
528,333
424,681
20,743
37,476
17,139
5
271,435
1,299,812
381,322
427,564
104,178
57,776
16,976
7
277,528
1,265,351
1,862,031
1,794,070
165,549
472,571
63,263
70,243
300,451
42,201
1,114,278
169,046
387,775
26,934
78,382
375,486
48,805
1,086,428
185,534
178,923
159,172
35,683
7,040
6,645
13
314,892
523,445
182,717
42,534
4,825
8,565
271,895
510,536
1,637,723
224,308
1,596,964
197,106
217,088
7,220
224,308
191,847
5,259
197,106
1,862,031
1,794,070
261
262
2015
$000
2014
$000
65,846
88,193
(33,151)
50
6
720
(32,154)
(5,281)
(14,168)
17,676
(99,367)
65
1,297
(42,574)
(3,970)
(18,854)
565
(35,896)
(40,633)
(2,723)
163,000
46,155
5,000
(83,000)
(7,600)
(158,059)
(2,827)
(579)
(188,171)
(50,140)
93,000
(824)
(6)
89,009
(173,000)
(143,249)
(4,005)
1,044
(7,938)
276,893
1,266
270,221
(199,345)
476,383
(145)
276,893
FINANCIAL HIGHLIGHTS
2015
$000
2014
$000
2013
$000
2012
$000
2011
$000
1,743,174
1,614,079
1,682,278
1,618,717
1,516,975
218,570
178,699
190,952
163,000
212,733
174,371
183,968
152,143
194,652
165,546
170,328
137,119
185,659
158,207
152,332
119,771
169,536
145,587
136,853
108,802
185,192
377,131
528,333
179,704
348,855
381,322
170,244
315,530
280,051
104,672
329,671
306,697
79,393
360,524
393,085
499,940
606,661
489,634
421,520
406,138
271,435
277,528
478,062
398,136
371,411
1,114,278
523,445
1,086,428
510,536
1,081,005
457,767
1,035,080
372,975
990,176
475,975
52,522
15,802
148,764
7,220
52,522
(5,135)
144,460
5,259
52,522
(20,609)
150,841
11,995
52,522
(32,821)
123,022
9,918
52,522
(24,361)
103,751
12,488
155.17
213.54
9.4
46.8
8.8
23.7
144.84
187.64
9.5
47.1
8.5
22.2
130.53
185.40
8.3
43.7
8.1
23.3
114.02
145.31
7.6
43.7
7.8
24.8
103.58
137.47
7.3
41.4
6.9
23.9
Productivity Data
Average staff strength (numbers)
Revenue per employee ($)
Net prot per employee ($)
Employment costs ($)
Employment costs per $ of revenue ($)
6,293
277,002
25,902
591,543
0.34
5,933
272,051
25,644
536,807
0.33
5,678
296,280
24,149
527,360
0.31
5,485
295,117
21,836
493,720
0.31
5,274
287,633
20,630
457,155
0.30
132,766
18.2
21,097
118,650
16.6
19,998
106,127
18.1
18,691
101,777
19.5
18,556
88,689
18.0
16,816
833,641
132,471
1.41
764,967
128,934
1.43
737,285
129,849
1.40
691,904
126,145
1.40
633,677
120,151
1.39
2.13
0.48
2.12
0.47
2.23
0.44
2.69
0.43
2.84
0.42
Income Statement
Revenue
Prot
EBITDA
EBIT
PBT
Net Prot
Balance Sheet
Property, plant and equipment
Intangible and other assets
Inventories and work-in-progress
Trade receivables, deposits and
prepayments
Bank balances and other liquid funds,
and short-term investments
Current liabilities
Non-current liabilities
Share capital
Capital and other reserves
Retained earnings
Non-controlling interests
Financial Indicators
Earnings per share (cents)
Net assets value per share (cents)
Return on sales (%)
Return on equity (%)
Return on total assets (%)
Return on capital employed (%)
263
INCOME STATEMENT
2015
$000
Revenue
Cost of sales
Gross prot
1,401,019
(1,133,748)
267,271
1,405,132
(1,140,622)
264,510
(64,989)
(111,260)
(43,833)
47,189
(69,100)
(106,692)
(49,991)
38,727
Other income
Other expenses
Other income, net
13,239
(1,645)
11,594
14,525
(1,570)
12,955
Finance income
Finance costs
Finance costs, net
2,880
(13,252)
(10,372)
3,124
(11,655)
(8,531)
16,590
65,001
13,050
56,201
Taxation
Prot for the year
(14,395)
50,606
(11,001)
45,200
55,736
(5,130)
50,606
50,323
(5,123)
45,200
Attributable to:
Shareholder of the Company
Non-controlling interests
264
2014
$000
BALANCE SHEET
2015
$000
2014
$000
354,677
121,781
189
208,201
523
25,993
6,049
1,138
718,551
372,275
112,750
378
205,335
13
973
18,028
5,650
1,196
716,598
657,231
279,305
18,635
96,856
30
3,173
3,562
199,518
1,258,310
673,177
359,991
27,726
134,505
61
6,872
609
284,226
1,487,167
1,976,861
2,203,765
217,493
427,597
120,792
9,594
77,135
32,256
76
163
47,257
1,615
8,186
942,164
247,876
468,553
119,872
1,848
60,199
30,907
153
148
29,820
5,687
965,063
316,146
522,104
ASSETS
Non-current assets
Property, plant and equipment
Associates and joint ventures
Investments
Intangible assets
Long-term receivables, non-current
Finance lease receivables, non-current
Deferred tax assets
Amounts due from related parties, non-current
Derivative nancial instruments, non-current
Current assets
Inventories and work-in-progress
Trade receivables
Amounts due from related parties, current
Advances and other receivables
Long-term receivables, current
Finance lease receivables, current
Derivative nancial instruments, current
Bank balances and other liquid funds
TOTAL ASSETS
EQUITY AND LIABILITIES
Current liabilities
Advance payments from customers, current
Trade payables and accruals
Amounts due to related parties, current
Progress billings in excess of work-in-progress
Provisions
Provision for taxation
Lease obligations, current
Long-term loans, current
Short-term bank loans
Short-term loan from non-controlling interests
Derivative nancial instruments, current
265
Non-current liabilities
Advance payments from customers, non-current
Trade payables and accruals, non-current
Amounts due to related parties, non-current
Lease obligations, non-current
Long-term loans, non-current
Long-term bank loan
Deferred income
Deferred tax liabilities
Derivative nancial instruments, non-current
TOTAL LIABILITIES
NET ASSETS
Share capital and reserves
Non-controlling interests
TOTAL EQUITY AND LIABILITIES
266
2015
$000
2014
$000
356,379
1,150
295,941
310
42,460
66,555
8,512
771,307
478,074
2,455
356,810
107
441
6,605
50,588
63,041
8,142
966,263
1,713,471
263,390
1,931,326
272,439
221,847
41,543
263,390
223,060
49,379
272,439
1,976,861
2,203,765
2014
$000
47,525
122,107
(14,743)
580
272
7,652
(22,371)
(876)
(43,407)
1,834
22,000
2
1
3,280
3,887
9,418
(83,829)
(117,118)
(10,414)
(72,705)
46,752
(20,000)
20,000
(65,500)
44,100
(50,000)
(710)
(156)
40,540
(30,802)
1,615
(17,800)
(3,403)
50
1,315
(47,289)
(10,190)
(7,865)
20,000
(47,000)
50,000
(369)
28,847
(45,709)
(194)
(31,800)
(5,666)
2,596
61
(84,336)
276,750
943
193,357
31,411
244,309
1,030
276,750
267
FINANCIAL HIGHLIGHTS
Income Statement
Revenue
Prot
EBITDA
EBIT
PBT
Net Prot
2014
$000
2013
$000
2012
$000
2011
$000
1,401,019
1,405,132
1,485,219
1,525,341
1,506,465
86,170
47,189
65,001
55,736
76,780
38,727
56,201
50,323
129,555
90,472
111,793
91,239
139,979
98,512
113,268
88,160
136,836
100,250
108,073
83,818
Balance Sheet
Property, plant and equipment
and investment property
Intangible and other assets
Inventories and work-in-progress
Trade receivables, deposits and
prepayment
Bank balances and other liquid funds
354,677
360,864
657,231
372,275
338,296
673,177
330,063
347,621
673,322
311,761
324,702
669,198
307,314
341,267
541,886
404,571
199,518
535,791
284,226
499,598
251,846
504,660
247,386
527,333
151,452
Current liabilities
Non-current liabilities
942,164
771,307
965,063
966,263
898,168
880,972
971,044
936,491
979,820
734,291
Share capital
Capital and other reserves
Retained earnings
Non-controlling interests
194,445
9,630
17,772
41,543
194,445
8,655
19,960
49,379
194,445
18,204
52,837
57,824
44,445
(13,842)
67,628
51,941
44,445
(6,478)
67,606
49,568
10.60
50.08
3.6
15.1
2.6
6.3
9.57
51.80
3.2
13.6
2.1
5.2
17.35
61.47
6.2
22.2
4.4
11.6
73.12
124.56
5.9
36.1
4.4
14.1
69.52
128.68
6.0
33.3
4.8
12.2
Productivity Data
Average staff strength (numbers)
Revenue per employee ($)
Net prot per employee ($)
Employment costs ($)
Employment costs per $ of revenue ($)
6,392
219,183
8,720
353,355
0.25
6,738
208,538
7,469
342,860
0.24
6,998
212,235
13,038
340,675
0.23
6,968
218,907
12,652
339,518
0.22
6,872
219,218
12,197
318,485
0.21
14,985
0.8
2,344
4,963
(0.4)
737
61,162
6.4
8,740
72,381
8.8
10,388
55,121
6.3
8,021
485,166
75,902
1.37
483,896
71,816
1.41
517,685
73,976
1.52
532,146
76,370
1.57
487,530
70,944
1.53
0.67
0.35
0.67
0.34
0.80
0.35
0.88
0.35
0.83
0.32
Financial Indicators
Earnings per share (cents)
Net assets value per share (cents)
Return on sales (%)
Return on equity (%)
Return on total assets (%)
Return on capital employed (%)
2015
$000
INCOME STATEMENT
2015
$000
Revenue
Cost of sales
Gross prot
2014
$000
958,373
(836,564)
121,809
1,341,951
(1,187,968)
153,983
(5,979)
(35,068)
(8,967)
71,795
(8,906)
(33,150)
(11,092)
100,835
Other income
Other expenses
Other income, net
7,482
(115)
7,367
12,115
(37)
12,078
Finance income
Finance costs
Finance income, net
3,716
(103)
3,613
3,931
3,931
5,500
88,275
5,936
122,780
Taxation
Prot for the year
(2,558)
85,717
(14,695)
108,085
85,725
(8)
85,717
108,086
(1)
108,085
Attributable to:
Shareholder of the Company
Non-controlling interests
269
BALANCE SHEET
2015
$000
2014
$000
332,533
8,229
84
4,363
17,225
4,806
2,341
369,581
334,075
8,159
94
1,001
19,021
12,806
605
375,761
205,539
99,581
182,233
8,745
58,546
22
78,605
633,271
110,445
117,296
123,776
5,252
157,683
15
224,027
738,494
1,002,852
1,114,255
289,630
234,454
2,885
51,940
112,194
18,390
709,493
289,949
256,322
2,900
51,491
241,197
14,456
856,315
(76,222)
(117,821)
1,276
29,281
42,947
26,343
1,387
101,234
650
29,670
39,606
26,343
2,799
99,068
TOTAL LIABILITIES
NET ASSETS
810,727
192,125
955,383
158,872
192,093
32
192,125
158,834
38
158,872
1,002,852
1,114,255
ASSETS
Non-current assets
Property, plant and equipment
Joint ventures
Intangible assets
Long-term receivables, non-current
Deferred tax assets
Amounts due from related parties, non-current
Derivative nancial instruments, non-current
Current assets
Inventories and work-in-progress
Trade receivables
Amounts due from related parties, current
Other receivables, deposits and prepayments
Advance payments to suppliers
Long-term receivables, current
Bank balances and other liquid funds
TOTAL ASSETS
EQUITY AND LIABILITIES
Current liabilities
Advance payments from customers, current
Trade payables and accruals
Amounts due to related parties, current
Provisions
Progress billings in excess of work-in-progress
Provision for taxation
Short-term bank loans
NET CURRENT LIABILITIES
Non-current liabilities
Advance payments from customers, non-current
Other long-term payables, non-current
Deferred income
Amounts due to related parties, non-current
Derivative nancial instruments, non-current
270
2014
$000
(52,265)
112,462
(10,850)
853
(17,133)
5,430
(15,064)
39
5,220
(21,323)
1,000
(83,827)
29,354
(11,197)
2,829
(2,852)
(199,128)
156,240
(59,023)
(50)
(209,460)
(115,494)
19,814
(113,780)
(146,942)
224,027
1,520
78,605
(112,062)
333,058
3,031
224,027
271
FINANCIAL HIGHLIGHTS
2015
$000
2014
$000
2013
$000
2012
$000
2011
$000
958,373
1,341,951
1,238,847
1,011,092
877,204
101,404
71,795
88,275
85,725
127,933
100,835
122,780
108,086
152,993
134,479
146,310
109,955
136,565
122,226
127,582
95,013
123,152
110,522
121,617
91,465
332,533
30,219
205,539
334,075
28,776
110,445
324,043
70,050
112,178
151,322
38,058
280,740
118,578
35,214
236,426
355,956
416,932
301,487
196,915
233,480
78,605
224,027
333,058
221,442
139,889
Current liabilities
Non-current liabilities
709,493
101,234
856,315
99,068
846,639
103,680
624,457
139,636
574,776
73,563
Share capital
Capital and other reserves
Retained earnings
Non-controlling interests
50,856
9,051
132,186
32
50,856
2,494
105,484
38
50,856
28,425
111,178
38
50,856
(6,920)
80,907
(459)
50,856
2,369
62,137
(114)
43.83
98.24
8.9
39.2
8.5
41.3
55.27
81.24
8.1
58.4
9.7
42.9
56.22
97.41
8.9
50.7
9.6
63.3
48.58
63.60
9.4
62.8
10.7
74.1
46.77
58.93
10.4
64.5
12.0
50.2
Productivity Data
Average staff strength (numbers)
Revenue per employee ($)
Net prot per employee ($)
Employment costs ($)
Employment costs per $ of revenue ($)
1,822
526,001
47,050
173,487
0.18
1,884
712,288
57,370
180,390
0.13
1,871
662,131
58,768
197,545
0.16
1,834
551,304
51,806
186,990
0.18
1,850
474,164
49,441
174,248
0.20
76,544
35.8
42,011
93,593
37.3
49,678
114,848
58.2
61,383
91,402
68.8
49,838
81,042
44.3
43,806
294,698
161,744
1.70
336,164
178,431
1.86
366,414
195,839
1.85
332,510
181,303
1.78
308,606
166,814
1.77
0.41
0.31
0.49
0.25
0.56
0.30
0.77
0.33
0.79
0.35
Income Statement
Revenue
Prot
EBITDA
EBIT
PBT
Net Prot
Balance Sheet
Property, plant and equipment
Intangible and other assets
Inventories and work-in-progress
Trade receivables, deposits and
prepayment
Bank balances and other liquid funds and
short-term investments
Financial Indicators
Earnings per share (cents)
Net assets value per share (cents)
Return on sales (%)
Return on equity (%)
Return on total assets (%)
Return on capital employed (%)
272
Shareholding Statistics
As at 29 February 2016
SHARE CAPITAL
Paid-Up Capital (including treasury shares)
Number of issued ordinary shares (excluding treasury shares)
Number of ordinary shares held in treasury
Percentage of such holding against the number of issued
ordinary shares (excluding ordinary shares held in treasury)
Class of Shares
Voting Rights
:
:
:
:
S$895,925,583.405
3,100,584,160
21,911,037
0.7067%
: Ordinary Shares
One Special Share held by the Minister for Finance
: One vote per share (excluding ordinary shares held in treasury)
Range of Shareholdings
1 --- 99
100 --- 1,000
1,001 --- 10,000
10,001 --- 1,000,000
1,000,001 and above
No. of
Shareholders
775
5,068
25,473
6,994
36
38,346
No. of
Shares (excluding
treasury shares)
2.02
13.22
66.43
18.24
0.09
100.00
13,960
4,294,905
117,088,125
265,910,555
2,713,276,615
3,100,584,160
0.00
0.14
3.78
8.57
87.51
100.00
No. of Shares
Substantial Shareholder
Direct
Interest
1,554,764,574
-
Deemed
Interest
37,836,336 (1)
195,648,471 (2)
179,159,171 (3)
Total
Interest
1,592,600,910
195,648,471
179,159,171
%*
51.36
6.31005
5.77823
Notes:
(1) Includes deemed interests held through subsidiaries and associated companies.
(2)
Includes interests held by Aberdeen Asset Management PLC and its subsidiaries, including Aberdeen Asset Management Asia Limited.
(3)
The percentage of issued ordinary shares is calculated based on the number of issued ordinary shares of the Company (excluding ordinary shares
held in treasury).
273
Shareholding Statistics
As at 29 February 2016
274
No.
Name
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
1,554,764,574
297,051,455
252,861,652
203,289,477
110,680,442
68,171,462
66,385,845
32,702,847
28,501,000
15,000,000
14,507,227
10,043,291
7,754,243
6,218,950
5,504,435
4,892,937
3,784,094
3,500,000
2,240,000
2,214,000
2,690,067,931
%*
50.14
9.58
8.16
6.56
3.57
2.20
2.14
1.06
0.92
0.48
0.47
0.32
0.25
0.20
0.18
0.16
0.12
0.11
0.07
0.07
86.76
The percentage of issued ordinary shares is calculated based on the number of issued ordinary shares of the Company (excluding ordinary shares
held in treasury).
Contact
Information
SINGAPORE TECHNOLOGIES ENGINEERING LTD
(ST Engineering)
ST Engineering Hub
1 Ang Mo Kio Electronics Park Road
#07-01
Singapore 567710
Tel: (65) 6722 1818
Fax: (65) 6720 2293
Email: [email protected]
Website: www.stengg.com
SINGAPORE TECHNOLOGIES AEROSPACE LTD
(ST Aerospace)
540 Airport Road Paya Lebar
Singapore 539938
Tel: (65) 6287 1111
Fax: (65) 6280 8213
Email: [email protected]
Website: www.staero.aero
SINGAPORE TECHNOLOGIES ELECTRONICS
LIMITED
(ST Electronics)
24 Ang Mo Kio Street 65
Singapore 569061
Tel: (65) 6481 8888
Fax: (65) 6482 1079
Email: [email protected]
Website: www.stee.stengg.com
SINGAPORE TECHNOLOGIES KINETICS LTD
(ST Kinetics)
249 Jalan Boon Lay
Singapore 619523
Tel: (65) 6265 1066
Fax: (65) 6261 6932
Email: [email protected]
Website: www.stengg.com
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