2024 ANNUAL REPORT JOURNEY TO GROWTH
FINANCIAL REPORT 108 Directors’ Statement 122 Independent Auditors’ Report 128 Consolidated Income Statement 129 Consolidated Statement of Comprehensive Income 130 Consolidated Statement of Financial Position 132 Consolidated Statement of Changes in Equity 136 Consolidated Statement of Cash Flows 138 Notes to the Consolidated Financial Statements 258 Statement of Financial Position of the Company 259 Notes to the Statement of Financial Position of the Company 262 Shareholding Statistics 264 SGX Listing Rules Requirement CORPORATE OVERVIEW 2 Financial Highlights 4 Letter to Shareholders 9 Corporate Information 10 Board of Directors 17 Directors Seeking Re-election 19 Group Executive Committee PERFORMANCE REVIEW 22 Technology and Innovation 26 Operating Review and Outlook 26 > Commercial Aerospace 32 > Defence & Public Security 38 > Urban Solutions & Satcom 44 Financial Review 52 Investor Relations 54 Awards Highlights SUSTAINABILITY 59 Board Statement 62 Environment 65 Social 76 Governance 76 > Corporate Governance Report
OUR CORPORATE PURPOSE Harness technology and innovation to enable a more secure and sustainable world It is the unifying purpose that aligns everything we do. OUR GROUP ASPIRATION Become a global technology, defence and engineering powerhouse It is the singular winning long-term goal that all our businesses follow. OUR CORE VALUES > Integrity > Value Creation > Courage > Commitment > Compassion Our Core Values guide every aspect of our business and are embedded in our culture – from the people we hire, to the way we work with each other and how we engage our partners and customers. ST Engineering is a global technology, defence and engineering group with a diverse portfolio of businesses across the aerospace, smart city, defence and public security segments. The Group harnesses technology and innovation to solve real-world problems, enabling a more secure and sustainable world. Headquartered in Singapore, we employ more than 27,000 people across our network of subsidiaries and associated companies in Asia, Europe, the Middle East and the U.S., serving customers in more than 100 countries. We rank among the largest companies listed on the Singapore Exchange and are a component stock of MSCI Singapore, FTSE Straits Times Index and Dow Jones Best-in-Class Asia Pacific Index.
FINANCIAL HIGHLIGHTS ORDER BOOK $28.5b 4% FY2023: $27.4b REVENUE $11.3b 12% FY2023: $10.1b EBITDA $1,614.3m 11% FY2023: $1,456.1m PROFIT BEFORE TAX $862.7m 23% FY2023: $704.2m NET PROFIT $702.3m 20% FY2023: $586.5m EARNINGS PER SHARE 22.53¢ 20% FY2023: 18.82¢ SEGMENT HIGHLIGHTS DEFENCE & PUBLIC SECURITY COMMERCIAL AEROSPACE URBAN SOLUTIONS & SATCOM 2023 3,905 4,384 2024 2023 337.2 400.2 2024 REVENUE ($m) 12% EBIT ($m) 19% 2023 4,252 4,935 2024 2023 567.4 636.4 2024 REVENUE ($m) 16% 12% 2023 1,944 1,957 2024 2023 10.0 39.9 2024 REVENUE ($m) 1% EBIT ($m) Improved EBIT ($m) * Excluding U.S. Marine post-sale completion gain of $16m in 2023 15%* 2 ST ENGINEERING | ANNUAL REPORT 2024
$11.3b 2024 3.5 3.5 7.8 CREATING VALUE FOR SHAREHOLDERS 6% DIVIDENDS PER SHARE 17.0¢ RETURN ON EQUITY 26.3% 10% FY2023: 16.0¢ TOTAL SHAREHOLDER RETURN 23.8% FY2023: 20.5% FY2023: 23.8% 16% REVENUE BY TYPE* ($b) * Refers to revenue by product and service type. Defence Commercial 12% Amounts may not add to totals shown due to rounding. REVENUE BY LOCATION OF CUSTOMERS EUROPE 19% OTHERS 7% ASIA 51% U.S. 23% $10.1b 2023 3.0 7.1 3 CORPORATE OVERVIEW PERFORMANCE REVIEW SUSTAINABILITY FINANCIAL REPORT
LETTER TO SHAREHOLDERS Dear Shareholders, ST Engineering did well in 2024. Each of our three segments — Commercial Aerospace, Defence & Public Security and Urban Solutions & Satcom — did its part. This was further augmented by continuous improvement, increasing productivity and strict cost discipline, thereby reducing the ratio of operating expenses over revenue. TEO MING KIAN CHAIRMAN VINCENT CHONG GROUP PRESIDENT & CEO Group Net Profit increased 20% to reach a new high of $702m 4 ST ENGINEERING | ANNUAL REPORT 2024
The Group reported a 12% year-onyear (y-o-y) increase in revenue to $11.28b, Group EBIT reached $1.08b, marking a 18% y-o-y increase, while Group PBT rose by 23% y-o-y to $863m. Group Net Profit increased 20% to reach a new high of $702m. All three business segments contributed to the stronger y-o-y performance. This strong set of results was achieved against a backdrop of geopolitical tension and a dynamic market landscape. This could be attributed to the breadth of our customer base and revenue streams across geographies, underscoring our global footprint and balanced portfolio in our diverse segments of Commercial Aerospace, Defence & Public Security and Urban Solutions & Satcom, strategically and painstakingly built up over the years. The business segment details are covered in the Operating Review and Outlook section on pages 26 to 43. BUILDING ON STRONG FUNDAMENTALS FOR LONG-TERM SUCCESS Over the past year, we have focused on navigating evolving global events, demonstrating the strength of our fundamentals and long-term strategy, as evidenced by $12.6b worth of new contracts that strengthened our order book to a new high of $28.5b. Our 2024 results further demonstrated our disciplined approach and effective execution of our order book. A key focus of our Commercial Aerospace business is to address the changing dynamics of the aviation industry. Supply chain constraints have caused production bottlenecks for aircraft OEMs, delaying new aircraft deliveries. As a result, airlines are operating existing fleets for longer periods, driving demand for airframe and engine MRO services and keeping our hangars at near full capacity. While near-term shortages in passenger aircraft feedstock have impacted our Airbus Passenger-toFreighter conversion (PTF) volume, we have effectively reallocated resources to capitalise on the stronger airframe EBIT$1.08b 18% (Y-O-Y) FY2023: $915m PROFIT BEFORE TAX $863m 23% (Y-O-Y) FY2023: $704m NET PROFIT $702m 20% (Y-O-Y) FY2023: $586m FY2024 RESULTS HIGHLIGHTS REVENUE $11.3b FY2023: $10.1b 12% (Y-O-Y) MRO demand. At the same time, we are strengthening our capability as a Premier MRO provider for CFM LEAP engines as it continues to expand. To ensure continued competitiveness despite inflationary pressures, we continue to seek operational efficiencies, productivity improvements and cost management initiatives. By enhancing our capabilities and maintaining a strong focus on service quality, we aim to strengthen our competitive position in the market. 5 CORPORATE OVERVIEW PERFORMANCE REVIEW SUSTAINABILITY FINANCIAL REPORT
LETTER TO SHAREHOLDERS Another key focus has been the effects of ongoing geopolitical tensions on our defence business. We remain committed to a strategy anchored on sustainable growth, addressing evolving defence needs driven by technology advances. We are also strategic in selecting target markets and focusing on products where we have a clear advantage, such as ammunition, land and naval platforms. Recent successes such as our collaboration with Kazakhstan Paramount Engineering to establish in-country production in Kazakhstan for a new 8x8 amphibious armoured vehicle, and the NATO-standard 155mm ammunition contracts with new European customers affirm both the growing trust in our defence solutions and our competitive edge. In Singapore, our position as the strategic partner in the Singapore defence ecosystem demands that we consistently drive technological advancements and deliver cutting-edge solutions, along with steadfast local support. This commitment ensures superior reliability and responsiveness, reinforcing our role in the operational readiness of our nation’s security. Our Smart City business, particularly Smart Mobility, is integral to our growth strategy. Strong expansion potential is evident through key rail contract wins across Asia and Australia. In addition, we are pushing boundaries in other transformative projects such as our smart water platform enhancing services for Aegea in Brazil and a contract to design and operate an advanced smart city platform for Lusail City in Qatar, marking the city’s bold step towards full smart city integration powered by our advanced AI and datadriven technologies. These successes fuel our growth, reinforce our position as a leader in smart city innovation and enable customers to optimise operations while addressing evolving urban challenges. Meanwhile, in the U.S., our TransCore business gains momentum in reinforcing its leadership in tolling technology and back-office solutions through new contract wins and successful project execution. TransCore is now well positioned for expansion into Asia, after securing its first tolling solution contract in Southeast Asia, a beginning of the manifested synergies we anticipated from its acquisition. While our Smart City business continues its strong trajectory and expands its footprint, we also recognise the challenges in our Satcom business. We remain very focused on its turnaround and longterm success, acknowledging that every transformation inevitably comes with risks and hurdles. Early signs of improvements in the last quarter of 2024 are encouraging but work remains to be done. In the rapidly evolving satellite industry marked by disruptions from new entrants and opportunities from new constellations and technologies, we aim to benefit from our innovative technologies and proactive strategies to capture new revenue opportunities. Our investment in developing ‘Intuition’, the nextgeneration, cloud-native, softwaredefined ground system for multi-orbit environments is one such example. ... we ensure that our R&D efforts are both synergistic and impactful, with tangible business outcomes TOTAL CONTRACT WINS $12.6b Commercial Aerospace: $4.7b Defence & Public Security: $5.3b Urban Solutions & Satcom: $2.6b for FY2024 ORDER BOOK $28.5b as at 31 December 2024 6 ST ENGINEERING | ANNUAL REPORT 2024
FOSTERING SYNERGY IN TECH AND INNOVATION THROUGH A COORDINATED APPROACH As advanced technologies and AI reshape the business landscape, we prioritise synergy across our diverse domains and R&D investments. Through the Group Technology Office and Group Engineering Centre, we drive innovation, develop breakthrough solutions and streamline efforts across the Group, enabling our businesses to focus on core operations while avoiding duplication in developing common core technologies and engineering solutions. We invest in critical digital technologies, including AI, data analytics, robotics, cybersecurity and 5G connectivity, along with the application of Generative AI and quantum computing. We also develop reusable common modules, such as AI Video Analytics Suite and AI Analytics tools for knowledge mining and risk analysis. These foundational components are embedded in our solutions to accelerate time-to-market and reduce development costs. By addressing shared challenges through strategic investment in digital technologies, we ensure that our R&D efforts are both synergistic and impactful, with tangible business outcomes. This approach delivers continual value across our aerospace, defence and smart city domains, strengthening our position as an innovation leader while empowering our customers to achieve new levels of security, efficiency and performance. ALIGNING WITH ESG STANDARDS, ADVANCING RESPONSIBLY As we build on our strategic priorities, we are equally committed to our sustainability agenda. In line with our climate action commitment, we have updated our target to reduce Scope 1 and 2 greenhouse gas emissions by 50% by 2030, revising the base year from 2010 to 2015, being a more challenging target. We also keep abreast of evolving regulatory requirements in sustainability reporting, such as the 2023 European Union Corporate Sustainability Reporting Directive. By ensuring timely and transparent disclosures, we reinforce our dedication to accountability and sustainability. For a detailed overview of our ESG initiatives, please refer to our Sustainability Report. REFRESHING OUR BOARD In 2024, changes were made to our Board as part of our disciplined renewal process. In February, Neo Gim Huay was appointed to the Board and a member of the Risk and Sustainability Committee. In June, Philip Lee Sooi Chuen joined the Board and the Executive Resource and Compensation Committee, the Nominating Committee and the Strategy and Finance Committee. In August, Lien Siaou-Sze was appointed to the Board, subsequently joining the Audit Committee in November. During the year, several directors retired or stepped down from the Board, including Quek See Tiat, Lim Sim Seng and Lim Ah Doo. Each served for many years, making invaluable contributions to our boardroom discussions and strategy deliberations. We thank them for their dedication and commitment. In January 2025, Song Su-Min assumed the role of Chairman of the Risk and Sustainability Committee, succeeding Kevin Kwok Khien who remains as a committee member. These changes underscore our dedication to fostering a dynamic and effective Board that upholds robust governance and strategic oversight as we navigate future challenges and opportunities. Our robust, forward-looking plan builds on growth momentum and core strengths while pursuing new opportunities We also develop reusable common modules, such as AI Video Analytics Suite and AI Analytics tools... to accelerate timeto-market and reduce development costs 7 CORPORATE OVERVIEW PERFORMANCE REVIEW SUSTAINABILITY FINANCIAL REPORT
LETTER TO SHAREHOLDERS 1 Computed using the average closing share price of the last trading days of 2024 and 2023. DELIVERING SHAREHOLDER VALUE THROUGH RETURNS AND GROWTH The Board of Directors has proposed a final dividend of 5 cents per ordinary share subject to shareholder approval at the upcoming AGM. Combined with the quarterly interim dividends of 12 cents per ordinary share, the total dividend for FY2024 will be increased to 17 cents per ordinary share from 16 cents per ordinary share in FY2023. This translates to a dividend yield of 3.97%1. Our commitment to delivering value to our shareholders is based on strong performance underpinned by a robust balance sheet, as reflected in our Aaa and AA+ ratings from Moody’s and S&P respectively. We maintain a forwardlooking financial strategy, ensuring that fund allocation — whether for dividends, strategic investments to drive growth, or debt reduction to actively manage our balance sheet — is carefully calibrated to balance immediate returns with long-term value creation. Building on this foundation, we unveiled our new five-year targets at our Investor Day 2025, finalised as this Letter went to print. These targets reflect the strengths of our fundamentals and the positive growth prospects of our Group. Our robust, forward-looking plan builds on growth momentum and core strengths while pursuing new opportunities. With a strong track record of disciplined execution, we remain committed to delivering good dividends and capturing growth, positioning us to thrive in a dynamic market and create lasting value for our shareholders. While our strategies are well-founded, we remain mindful of external factors and the execution risks inherent in any growth plan. We will approach these challenges with resolve, focusing on adaptability and resilience to navigate uncertainties effectively while staying firmly aligned with our growth objectives. As we continue our growth journey, we extend our heartfelt thanks to all our stakeholders, with special appreciation to our shareholders. Our employees remain the foundation of our success, with their dedication and hard work being instrumental in our pursuit of becoming a global technology, defence and engineering powerhouse. TEO MING KIAN CHAIRMAN INDEPENDENT DIRECTOR VINCENT CHONG GROUP PRESIDENT & CEO EXECUTIVE DIRECTOR 28 February 2025 TOTAL DIVIDEND FOR FY2024 17¢ FY2023: 16¢ We maintain a forward-looking financial strategy, ensuring that fund allocation... is carefully calibrated to balance immediate returns with long-term value creation 8 ST ENGINEERING | ANNUAL REPORT 2024
CORPORATE INFORMATION (AS AT 28 FEBRUARY 2025) BOARD OF DIRECTORS Teo Ming Kian (Chairman) Vincent Chong Sy Feng (Group President & CEO) VADM Aaron Beng Yao Cheng Kevin Kwok Khien Philip Lee Sooi Chuen Lien Siaou-Sze Lim Chin Hu Neo Gim Huay Ng Bee Bee (May) Ong Su Kiat Melvyn Song Su-Min Tan Peng Yam COL Chong Shi Hao (Alternate Director to VADM Aaron Beng Yao Cheng) AUDIT COMMITTEE Kevin Kwok Khien (Chairman) Lien Siaou-Sze Song Su-Min EXECUTIVE RESOURCE AND COMPENSATION COMMITTEE Teo Ming Kian (Chairman) Philip Lee Sooi Chuen Lim Chin Hu Ng Bee Bee (May) NOMINATING COMMITTEE Lim Chin Hu (Chairman) Philip Lee Sooi Chuen Ng Bee Bee (May) Teo Ming Kian RESEARCH, INNOVATION, TECHNOLOGY AND ENTERPRISE COMMITTEE Tan Peng Yam (Chairman) Vincent Chong Sy Feng Lim Chin Hu Teo Ming Kian Chua Kee Lock (Co-opted member) RISK AND SUSTAINABILITY COMMITTEE Song Su-Min (Chairman) VADM Aaron Beng Yao Cheng Vincent Chong Sy Feng Kevin Kwok Khien Neo Gim Huay STRATEGY AND FINANCE COMMITTEE Teo Ming Kian (Chairman) Vincent Chong Sy Feng Philip Lee Sooi Chuen Lim Chin Hu COMPANY SECRETARIES Low Meng Wai Tan Wan Hoon REGISTERED OFFICE 1 Ang Mo Kio Electronics Park Road #07-01 ST Engineering Hub Singapore 567710 Tel: (65) 6722 1818 www.stengg.com AUDITORS PricewaterhouseCoopers LLP 7 Straits View #12-00 Marina One East Tower Singapore 018936 Lam Hock Choon (Partner-in-charge) Date of Appointment: 15 May 2020 SHARE REGISTRAR Tricor Barbinder Share Registration Services 9 Raffles Place #26-01 Republic Plaza Tower 1 Singapore 048619 9 CORPORATE OVERVIEW PERFORMANCE REVIEW SUSTAINABILITY FINANCIAL REPORT
BOARD OF DIRECTORS (AS AT 28 FEBRUARY 2025) The Board is firmly committed to strong corporate governance and the creation of enduring shareholder value. It provides strategic guidance, ensures effective oversight of business management and steers decisions on investments, M&As and sustainability initiatives, maintaining robust oversight through independent representation. The ST Engineering Board comprises 12 Directors and 1 Alternate Director, of whom 8 are independent Directors. TEO MING KIAN Chairman Independent & Non-Executive Director Date of first appointment as Director: 1 August 2021 Date of appointment as Deputy Chairman: 21 April 2022 Date of appointment as Chairman: 21 April 2023 Date of last re-election as Director: 21 April 2022 Date of next re-election as Director: 24 April 2025 Academic & Professional Qualifications • Bachelor of Engineering (First Class Honours) degree in Mechanical Engineering, Monash University, Australia • Master of Science degree in Management Studies, Massachusetts Institute of Technology, USA • Fellow of the Academy of Engineering Singapore Other Directorships/Appointments – Present • Defence Science and Technology Agency • GGV Capital Pte. Ltd. (Founding Advisor, Grantie Asia Advisory Council) • Infinbio Pte. Ltd. • Temasek Foundation Ltd • Temasek Trust Ltd. • TF IPC Ltd • Vertex Venture Holdings Ltd (Chairman) • VVB Bio Pte. Ltd. • Zinfinity Pte. Ltd. (Chairman) Other Directorships/Appointments – Past 5 years • Global Innovation Index by World Intellectual Property Organization (Advisory Board Member) • Interel Pte. Ltd. • Temasek Foundation Ecosperity CLG Limited (Chairman) • Temasek Holdings (Private) Limited • Temasek Lifesciences Accelerator Pte. Ltd. (Chairman) • Temasek Life Sciences Laboratory Limited (Chairman) • Temasek Life Sciences Ventures Private Limited (Chairman) • Tessa Therapeutics Pte Ltd (Chairman) • Tychan Pte. Ltd. (Chairman) • Vertex Venture Management Pte. Ltd. (Chairman) Achievements • Degree of Doctor of Laws honoris causa by Monash University • The Commander First Class – Royal Order of the Polar Star (Sweden) • The Defence Technology Medal (Distinguished Leadership), 2015 • The Distinguished Service Order, 2024 • The Meritorious Service Medal, 2008 • The Public Administration Medal (Gold), 1993 10 ST ENGINEERING | ANNUAL REPORT 2024
Date of first appointment as Director: 1 October 2016 Date of last re-election as Director: 20 April 2023 Date of first appointment as Director: 12 June 2023 Date of last re-election as Director: 26 April 2024 Academic & Professional Qualifications • Bachelor of Engineering (First Class Honours) (Mechanical Engineering), National University of Singapore • Executive leadership programmes, Thunderbird School of Global Management and the Columbia Business School • Fellow of the Academy of Engineering Singapore Other Directorships/Appointments# – Present • Department of Mechanical Engineering Industry Advisory Board, NUS (formerly known as “Mechanical Engineering Departmental Consultative Committee”, NUS) • Jurong Port Pte Ltd (Director and Member of Human Resource Committee) • Singapore’s Manufacturing, Trade and Connectivity Domain International Advisory Panel (Member) Other Directorships/Appointments# – Past 5 years • Emerging Stronger Taskforce (Member) • Experia Events Pte. Ltd. • International Advisory Panel for Advanced Manufacturing & Engineering, Ministry of Trade & Industry (Member) • JTC Corporation (Board Member and Member of Development Committee and Human Resource Committee) • Singapore Airshow & Events Pte. Ltd. • Singapore Quality Award Governing Council (Member) • Temasek Defence Systems Institute (TDSI) Management Board, NUS (Member) Achievements • COVID-19 Resilience Medal, 2023 • Distinguished Engineering Alumni Award by the National University of Singapore, 2021 • NTUC May Day Award 2023, Medal of Commendation (Gold) Academic & Professional Qualifications • Bachelor of Science, Yale University, USA Other Directorships/Appointments – Present • Defence Science and Technology Agency • JTC Corporation (Board Member) • Singapore Anti-Narcotics Association Board of Management (Vice-President) • SRCC Pte Ltd (Deputy Chairman) Other Directorships/Appointments – Past 5 years • Maritime and Port Authority of Singapore (Board Member) • Ngee Ann Polytechnic (Council Member and Chairman of Digitalisation Committee) • Singapore Anti-Narcotics Association Board of Management (Board Member) Achievements • Singapore Armed Forces Long Service Award (10 years, 15 years & 20 years), 2011, 2016 and 2021 • Singapore Armed Forces Overseas Service Medal (IRAQ 2008), 2009 • The Public Administration Medal (Bronze) (Military), 2017 • The Public Administration Medal (Gold) (Military), 2023 # Directorships exclude ST Engineering’s subsidiary(ies) VINCENT CHONG SY FENG Group President & CEO Executive Director VICE ADMIRAL AARON BENG YAO CHENG Non-Independent & Non-Executive Director 11 CORPORATE OVERVIEW PERFORMANCE REVIEW SUSTAINABILITY FINANCIAL REPORT
BOARD OF DIRECTORS Academic & Professional Qualifications • Bachelor Degree in Industrial and Systems Engineering, University of Southern California, Los Angeles, USA • Master of Business and International Finance degree, New York University, Stern School, USA Other Directorships/Appointments – Present • Heliconia Capital Management Pte. Ltd. • Savills plc* • SPH Media Holdings Pte. Ltd. Other Directorships/Appointments – Past 5 years • Singapore Government’s Health Promotion Board (Chairman) Achievements • The Public Service Medal, 2012 • The Public Service Star, 2024 PHILIP LEE SOOI CHUEN Independent & Non-Executive Director Date of first appointment as Director: 1 June 2024 Date of last re-election as Director: N.A. Date of next re-election as Director: 24 April 2025 Academic & Professional Qualifications • Bachelor of Arts (Honours) Economics, Accounting & Financial Management, University of Sheffield, UK • Fellow, Institute of Chartered Accountants in England and Wales • Fellow, Institute of Singapore Chartered Accountants • Fellow, Singapore Institute of Directors Other Directorships/Appointments – Present • Sentosa Development Corporation • Standard Chartered Bank (Singapore) Limited Other Directorships/Appointments – Past 5 years • Accounting Standards Council (Chairman) • Mapletree North Asia Commercial Trust Management Ltd • Singapore Exchange Limited* Achievements • Friend of Labour Award for Contributions to the Labour Movement – NTUC • Silver Medal Award for Outstanding Contributions to the Accountancy Profession and Community – ISCA KEVIN KWOK KHIEN Independent & Non-Executive Director Date of first appointment as Director: 1 October 2021 Date of last re-election as Director: 21 April 2022 Date of next re-election as Director: 24 April 2025 * Listed company 12 ST ENGINEERING | ANNUAL REPORT 2024
Date of first appointment as Director: 26 August 2024 Date of last re-election as Director: N.A. Date of next re-election as Director: 24 April 2025 Date of first appointment as Director: 16 July 2018 Date of last re-election as Director: 26 April 2024 Academic & Professional Qualifications • Bachelor of Science in Physics, Nanyang University, Singapore • Master of Computer Science, Imperial College London, UK Other Directorships/Appointments – Present Nil Other Directorships/Appointments – Past 5 years • Confucius Institute, Nanyang Technological University Pte. Ltd. (Chairman) • Japfa Ltd* Achievements • The Public Service Star, 2011 Academic & Professional Qualifications • Bachelor of Science, La Trobe University, Melbourne, Australia • Diploma in Electrical & Electronics Engineering, Ngee Ann Polytechnic, Singapore • Fellow of the Singapore Institute of Directors Other Directorships/Appointments# – Present • Certis CISCO Security Pte Ltd • G-Able Public Company Limited* • Heliconia Capital Management Pte. Ltd. (Co-Opted Member of IPF Committee) • Hi-P International Pte. Ltd. • Kulicke & Soffa Inc*@ • Ministry of Health/ MOH Holdings Pte Ltd - ALPS Pte. Ltd. - Singapore Health Services Pte Ltd - Synapxe Pte. Ltd. • Sentosa Development Corporation (Audit Committee Member) • Singapore Exchange Limited* Other Directorships/Appointments – Past 5 years • Citibank Singapore Limited • Heliconia Capital Management Pte. Ltd. Achievements • The Public Service Medal, 2022 LIEN SIAOU-SZE Independent & Non-Executive Director LIM CHIN HU Independent & Non-Executive Director * Listed company @ Will be retiring as Director from Kulicke & Soffa Inc at its AGM on 5 March 2025 # Directorships exclude ST Engineering’s subsidiary(ies) 13 CORPORATE OVERVIEW PERFORMANCE REVIEW SUSTAINABILITY FINANCIAL REPORT
BOARD OF DIRECTORS Academic & Professional Qualifications • Bachelor of Arts (Honours), University of Western Ontario, Canada Other Directorships/Appointments – Present • NTUC Enterprise Co-operative Ltd. • Pan-United Corporation Ltd.* (Executive Chairman) Other Directorships/Appointments – Past 5 years • Mercatus Co-operative Limited • Pan-United Corporation Ltd.* (Chief Executive Officer) • PT. Pacific Granitama (Member of Board of Commissioners) Achievements • NTUC, Friend of Labour • NTUC, Meritorious Service NG BEE BEE (MAY) Independent & Non-Executive Director Date of first appointment as Director: 1 June 2020 Date of last re-election as Director: 26 April 2024 Academic & Professional Qualifications • Bachelor of Arts (First Class Honours), Cambridge University, UK • Master of Engineering (Distinction), Cambridge University, UK • Master of Business Administration (Arjay Miller Scholar), Stanford University, USA Other Directorships/Appointments – Present • China Council for International Cooperation on Environment and Development (Special Advisor) • Global Battery Alliance (Supervisory Council Member) • Governing Council, Water Resources Group, World Bank • LGT Bank (Singapore) Ltd. (Board Member) • Singapore Institute of Technology (Board Trustee) • The High-level Policy Commission on Getting Asia to Net Zero (Member) • United Overseas Bank Sustainability Advisory Panel (Advisor) • University of Tokyo Global Navigation Board (Advisor) Other Directorships/Appointments – Past 5 years • Intellectual Property Office of Singapore (Board Member) • Mandai Wildlife Group (Board Member) • Nestle Shared Value Council (Advisory Board) • Partnership for Green Growth, World Resources Institute (Member) • SG Eco Fund Advisory Committee (Member) • Singapore Library Board (Board Member) • Singapore Science Centre Global Pte. Ltd. (Board Member) • South Pole (Board Member) • Surbana Jurong Private Limited (Board Member) Achievements • Eisenhower Fellow • Time 100 Climate Leaders NEO GIM HUAY Independent & Non-Executive Director Date of first appointment as Director: 15 February 2024 Date of last re-election as Director: 26 April 2024 * Listed company 14 ST ENGINEERING | ANNUAL REPORT 2024
Date of first appointment as Director: 8 June 2018 Date of last re-election as Director: 26 April 2024 Date of first appointment as Director: 16 September 2018 Date of last re-election as Director: 21 April 2022 Date of next re-election as Director: 24 April 2025 Academic & Professional Qualifications • Bachelor of Science (Economics) (Honours), London School of Economics and Political Science, UK • Master of Science (Development Studies), London School of Economics and Political Science, UK Other Directorships/Appointments – Present • Centre for Liveable Cities Limited (Chairman) • Defence Science and Technology Agency (Chairman) • DSO National Laboratories (Chairman) • Singapore Technologies Holdings Pte Ltd Other Directorships/Appointments – Past 5 years • CapitaLand Ascott Business Trust Management Pte. Ltd. (as Trustee-Manager of CapitaLand Ascott Business Trust*) • CapitaLand Ascott Trust Management Limited (as Manager of CapitaLand Ascott Real Estate Investment Trust*) • JTC Corporation (Board Member) • SRCC Pte Ltd Achievements • Bintang Yudha Dharma Utama (Indonesia) • Order of Australia – Honorary Officer in the Military Division • Panglima Gagah Angkatan Tentera (Kehormat) (Malaysia) • SAF Overseas Service Medal, New Zealand, 2011 • The Knight Grand Cross (First Class) of the Most Exalted Order of the White Elephant (Thailand) • The Meritorious Service Medal (Military), 2021 • The Most Exalted Order of Paduka Keberanian Laila Terbilang – First Class (Brunei) Academic & Professional Qualifications • Bachelor of Laws (Honours), University of Kent, Canterbury, UK • Singapore Bar • Bar of England and Wales, Middle Temple Other Directorships/Appointments – Present Nil Other Directorships/Appointments – Past 5 years Nil ONG SU KIAT MELVYN Non-Independent & Non-Executive Director SONG SU-MIN Independent & Non-Executive Director * Listed company 15 CORPORATE OVERVIEW PERFORMANCE REVIEW SUSTAINABILITY FINANCIAL REPORT
BOARD OF DIRECTORS Academic & Professional Qualifications • Bachelor of Science in Geography (First Class Honours), University College London, UK • Master of Arts (Distinction) in Near and Middle Eastern Studies, School of Oriental and African Studies, UK Other Directorships/Appointments – Present • Grace Community Church Limited Other Directorships/Appointments – Past 5 years Nil Achievements • COVID-19 Resilience Medal, 2023 • Singapore Armed Forces Good Service Medal, 2010 • Singapore Armed Forces Long Service Award (10 years & 15 years), 2016 and 2021 • Singapore Armed Forces Long Service and Good Conduct (10 years) Medal, 2015 • Singapore Armed Forces Long Service and Good Conduct (10 years) Medal (15 years CLASP), 2020 • The Public Administration Medal (Bronze) (COVID-19), 2023 • The Public Administration Medal (Bronze) (Military), 2023 COLONEL CHONG SHI HAO Alternate Director To Vice Admiral Aaron Beng Yao Cheng Date of first appointment as Alternate Director: 12 June 2023 Academic & Professional Qualifications • Bachelor of Engineering (Electrical Engineering), University of Tasmania, Australia Other Directorships/Appointments – Present • Cap Vista Pte Ltd (Chairman) • Defence Science and Technology Agency • DSO National Laboratories • NUS College of Design and Engineering (CDE) Advisory Board (Member) • Singapore University of Technology and Design, Board of Trustees (Member) • SMRT Technical Advisory Panel (Chairman) • Synapxe Pte. Ltd. • Temasek Defence Systems Institute (TDSI) Management Board, NUS (Chairman) Other Directorships/Appointments – Past 5 years • D’Crypt Pte Ltd • Government Technology Agency (GovTech) (Board Member) • Land Transport Authority (Board Member) • PUB Board Committee for Transformation (Member) • Tech Vista Pte Ltd (Chairman) • Temasek Laboratories, Nanyang Technological University (Member) • Temasek Polytechnic Board of Governors (Board Member) Achievements • ASEAN Federation of Engineering Organisations Honorary Fellowship • Commander of Order of Merit of Italian Republic (Italy) • Grand Cross of Naval Merit with White Mark (Spain) • Royal Order of the Polar Star, Knight 1st Class (Sweden) • The Public Administration Medal - Gold, Silver and Bronze, 2012, 2005 and 1997 TAN PENG YAM Non-Independent & Non-Executive Director Date of first appointment as Director: 1 August 2021 Date of last re-election as Director: 21 April 2022 Date of next re-election as Director: 24 April 2025 16 ST ENGINEERING | ANNUAL REPORT 2024
DIRECTORS SEEKING RE-ELECTION INFORMATION REQUIRED UNDER RULE 720(6) OF THE LISTING MANUAL OF SINGAPORE EXCHANGE SECURITIES TRADING LIMITED (SGX-ST) TEO MING KIAN KEVIN KWOK KHIEN SONG SU-MIN Age 73 69 51 Country of principal residence Singapore Singapore Singapore The Board’s comments on this appointment (including rationale, selection criteria, board diversity considerations, and the search and nomination process) Ming Kian has a wide network and broad perspective of both local and overseas economies which will benefit ST Engineering in addressing the changing and challenging needs of ST Engineering’s operations. His leadership, appropriate qualification, skill sets and vast experience in the various fields will provide an all-rounded perspective to Board deliberations. Kevin was previously the Head of Assurance & Advisory Business Services - Singapore and ASEAN, Ernst & Young LLP (1990-2012). Given his broad experience in audits and M&A activities across various industries and jurisdictions, public listings and other fund-raising activities as well as his expertise in Corporate Governance and Accounting practices, Kevin will be able to provide strong stewardship and guidance on the Group’s Accounting and Financial Management, M&A, Corporate Governance and Risk Management matters to ST Engineering Board’s deliberations. Su-Min specialises in various aspects of corporate law, particularly in M&A, joint ventures and corporate restructuring in which her expertise extends across both single and multijurisdictional transactions. She also possesses extensive knowledge in Corporate Governance and Risk Management which she acquired through her professional experience and directorship. Su-Min contributes a specialised legal perspective to Board deliberations, ensuring that governance practices are aligned with strategic goals while effectively addressing potential risks. Whether appointment is executive, and if so, the area of responsibility Non-Executive Non-Executive Non-Executive Job Title (e.g. Lead ID, AC Chairman, AC Member etc.) Independent Director Chairman • Executive Resource and Compensation Committee • Strategy and Finance Committee Member • Nominating Committee • Research, Innovation, Technology and Enterprise Committee Independent Director Chairman • Audit Committee Member • Risk and Sustainability Committee Independent Director Chairman • Risk and Sustainability Committee Member • Audit Committee Working experience and occupation(s) during the past 10 years Chairman, Vertex Venture Holdings Ltd (since 2012) Head of Assurance & Advisory Business Services - Singapore and ASEAN, Ernst & Young LLP (retired in 2012) Partner, Allen & Gledhill LLP (since 2006) (INFORMATION AS AT 28 FEBRUARY 2025) 17 CORPORATE OVERVIEW PERFORMANCE REVIEW SUSTAINABILITY FINANCIAL REPORT
TAN PENG YAM PHILIP LEE SOOI CHUEN LIEN SIAOU-SZE Age 66 62 74 Country of principal residence Singapore Singapore Singapore The Board’s comments on this appointment (including rationale, selection criteria, board diversity considerations, and the search and nomination process) Peng Yam has held various defence positions in the Ministry of Defence, including Chief Executive of Defence Science and Technology Agency. His experience and knowledge will complement the competencies and skills of the present Board members. With Philip’s leadership and background experience in the banking sector, he will be able to contribute an independent financial and commercial perspective to ST Engineering Board’s deliberations. Siaou-Sze is a distinguished executive with a comprehensive background spanning higher education, technology, and the agri-food industry. Her expertise in corporate organisation behaviour is complemented by extensive experience in the IT sector. Siaou-Sze’s multifaceted expertise will deepen Board discussions and enhance the overall Board effectiveness. Whether appointment is executive, and if so, the area of responsibility Non-Executive Non-Executive Non-Executive Job Title (e.g. Lead ID, AC Chairman, AC Member etc.) Non-Independent Director Chairman • Research, Innovation, Technology and Enterprise Committee Independent Director Member • Executive Resource and Compensation Committee • Nominating Committee • Strategy and Finance Committee Independent Director Member • Audit Committee Working experience and occupation(s) during the past 10 years Chief Defence Scientist, Ministry of Defence (since 2021) Chief Executive, Defence Science and Technology Agency (2011 – 2021) Vice Chairman of Global Banking, Southeast Asia, HSBC Bank, Singapore (since 2019) Vice Chairman of Southeast Asia and Chief Country Officer, Deutsche Bank AG, Singapore (2013 – 2018) Partner of Management Alignment Partners GmbH (since 2023) Vice President (University Advancement) at Nanyang Technological University (2020 – 2023) NTU Board of Trustees (2006 – 2019) Executive Coach at Mobley Group Pacific (2006 – 2019) DIRECTORS SEEKING RE-ELECTION Teo Ming Kian, Kevin Kwok Khien, Song Su-Min, Tan Peng Yam, Philip Lee Sooi Chuen and Lien Siaou-Sze, have each: • confirmed that he/she has no relationship (including immediate family relationships) with an existing director, existing executive officer, the Company and/or any substantial shareholder of the Company or any of its principal subsidiaries; • confirmed that he/she has no conflict of interest (including any competing business); • provided an undertaking in the format set out in Appendix 7.7 under Rule 720(1) of the SGX-ST Listing Manual; and • confirmed that all responses under items (a) to (k) of Appendix 7.4.1 of the SGX-ST Listing Manual to be “No”. The other information required under Rule 720(6) of the SGX-ST Listing Manual are disclosed in the “Board of Directors” section of this Annual Report on pages 10 to 16. The shareholding interest in the Company and its subsidiaries (if any) of each of these Directors are disclosed in the “Directors’ Statement” on pages 108 to 121. 18 ST ENGINEERING | ANNUAL REPORT 2024
GROUP EXECUTIVE COMMITTEE Vincent brings to the Group 20 years of global business experience from ExxonMobil, where he spent half of that time being based in Hong Kong, Japan, UK and the U.S. He held a wide span of senior positions in global and regional business management, refinery process engineering, industrial and retail operations, product marketing and strategic planning. Vincent is a board member of Jurong Port and a member of the Ministry of Trade and Industry’s International Advisory Panel for Manufacturing, Trade and Connectivity. He served on the Emerging Stronger Taskforce which reviewed how Singapore can build new sources of dynamism and stay economically resilient in a post-COVID world. Vincent graduated in 1994 with First Class Honours in Mechanical Engineering from National University of Singapore and attended executive leadership programmes at Thunderbird School of Global Management and Columbia Business School. He is a fellow of the Academy of Engineering Singapore and was conferred the Distinguished Engineering Alumni Award by National University of Singapore in 2021. VINCENT CHONG SY FENG Vincent Chong Sy Feng, 55, is the Group President & CEO of ST Engineering and a Director of the ST Engineering Board since 2016. Before his current role, he was the President & CEO (Designate) from late 2015, and prior to that, the Group’s Deputy CEO (Corporate Development) from late 2014. He joined ST Engineering in 2014 as President of Strategic Plans and Business Development of the Aerospace sector. The Group Executive Committee (EXCO) consists of a dedicated five-member leadership team tasked with guiding strategic decision-making and upholding stringent corporate governance standards within the Group. Serving as the core leadership team, these executives play a pivotal role in charting ST Engineering’s course towards success and sustainable growth. The EXCO is supported by the Group Senior Business Council, which comprises a team of business and corporate function leaders representing our business areas and domains within the Group. 19 CORPORATE OVERVIEW PERFORMANCE REVIEW SUSTAINABILITY FINANCIAL REPORT
With over 30 years of technology and defence experience, Ravinder has held various management and leadership positions. He was President of the Group’s Land Systems sector, then President, Defence Business and President of the Group’s Electronics sector before he assumed his concurrent appointments on 1 January 2021. Prior to ST Engineering, Ravinder served as the Chief of Army, Singapore Armed Forces (SAF) and the Deputy Secretary (Technology), Ministry of Defence, Singapore. He was awarded the SAF Overseas Training Award (Academic) and was conferred the Public Administration Medal (Military), Silver and Gold. Ravinder is a board member of the Agency for Science, Technology and Research (A*STAR), DSO National Laboratories, and the Temasek Defence Systems Institute Management Board of the National University of Singapore, the Independent Review Panel of Ministry of Home Affairs and the Data Protection Appeal Panel for Ministry of Digital Development and Information. He is also a member on the Board of Governors, Nanyang Polytechnic. Ravinder holds a Bachelor of Arts in Engineering Science (First Class Honours) and a Master of Arts in Engineering Science from University of Oxford. He was awarded the Singapore Armed Forces Postgraduate Scholarship and graduated from Massachusetts Institute of Technology with a Master of Science in Management. He attended the Advanced Management Programme at Wharton Business School. RAVINDER SINGH Ravinder Singh, 60, holds concurrent appointments as the Group Chief Operating Officer (COO) (Technology & Innovation), and President Defence & Public Security of ST Engineering. Ravinder oversees the development of multi-domain technologies and business innovation across the Group as its COO. He also leads the Group’s businesses across Digital Systems, Cyber, Land Systems, Marine and Defence Aerospace as President, Defence & Public Security. CEDRIC FOO CHEE KENG Cedric Foo Chee Keng, 64, is the Group Chief Financial Officer (CFO) of ST Engineering. Concurrent to his Group CFO role, Cedric oversees Information Technology, Risk & Assurance and Procurement functions for the Group. In 2024, he received the Best CFO award in the Large Capitalisation category at the Singapore Corporate Awards, recognising his outstanding leadership and strategic vision. Before joining ST Engineering in October 2016, Cedric was the Group Deputy President and CFO of Neptune Orient Lines Limited. Prior to that, Cedric served at Singapore Airlines as the Senior Vice President, Finance and Administration and subsequently, as the Senior Vice President for West Asia and Africa. Cedric was also Chairman of JTC Corporation from 2008 to 2012 and of SPRING Singapore from 2003 to 2007. Cedric graduated with a Bachelor of Science in Engineering (Naval Architecture and Marine Engineering) from University of Michigan, Ann Arbor, USA and received his Master of Science (Ocean Systems Management) from Massachusetts Institute of Technology, Cambridge, USA in 1985. He also attended executive programmes at Harvard and Kellogg Business Schools. GROUP EXECUTIVE COMMITTEE 20 ST ENGINEERING | ANNUAL REPORT 2024
TAN LEE CHEW Tan Lee Chew, 61, is Group Chief Commercial Officer (CCO) (Market Development) and President Smart City & Digital Solutions of ST Engineering. Before her current role, she was the President Commercial from 1 September 2021 to 30 June 2023. As Group CCO (Market Development), Lee Chew works with business leaders across the Group to build market presence, expand account coverage and strengthen partnerships. In her role as President Smart City & Digital Solutions, she leads the international growth and market expansion for the Smart City and Digital businesses, enabling customers to create digital experiences and transform operational efficiencies through the use of cloud, artificial intelligence, data analytics, the internet of things and digital connectivity. Lee Chew also has oversight of the Group’s Urban Solutions and Satellite Communications businesses, a role she has assumed since joining the Group in September 2021. Before joining ST Engineering, Lee Chew was the Managing Director, Worldwide Public Sector (ASEAN) of Amazon Web Services (AWS), responsible for leading new business growth through the adoption of AWS services as an enabler to deliver technology transformation at scale for organisations. Prior to that, she was with Hewlett-Packard Enterprise for more than 20 years, last serving as the Senior Vice President of global Hybrid IT Sales and Category Management based in Palo Alto, California, U.S., where she led the go-to-market planning and execution of product sales strategies for the company’s Data Center Infrastructure and Software Defined technology portfolio globally. Having operated out of Singapore and California with business experiences in North America, Latin America, Europe and Asia, Lee Chew is a firm believer in talent development and a strong advocate for diversity. She is appointed as the President for the Women in Tech Chapter at the Singapore Computer Society, serves on the Board of Infocomm Media Development Authority of Singapore and the Advisory Board of EDPR APAC. In addition, she is a member on the Board of Governors for Temasek Polytechnic. Lee Chew holds a Bachelor of Arts (Honours) in Philosophy from National University of Singapore. Jeffrey has been serving as President Commercial Aerospace since October 2020 and has spent more than 10 years of his career in the Group’s Aerospace business since 2011. He oversees the Group’s Commercial Aerospace business cluster. He has held several senior management appointments within the Group including that of President, Aerospace sector of ST Engineering, COO of ST Engineering Aerospace, Vice President/General Manager of ST Engineering Aerospace Engines and Vice President Engine Total Support of the Aerospace sector. Under Jeffrey’s leadership, the Commercial Aerospace business, a key growth driver of the Group, has demonstrated resilience throughout the COVID-19 pandemic and saw significant business growth. In addition to his current portfolio, Jeffrey is also responsible for leading the Group’s Continuous Improvement initiatives and Quality & Safety oversight. Jeffrey holds a Bachelor of Science in Aerospace Engineering, a Bachelor of Arts in French and a Master of Science in Industrial & Operations Engineering from the University of Michigan, USA. He obtained his Diploma in Economics from the Universite d’Aix-Marseille III, France and attended the Advanced Management Programme in Harvard University. LAM WAI MENG JEFFREY Lam Wai Meng Jeffrey, 53, is Group Chief Operating Officer (COO) (Operations Excellence) and President Commercial Aerospace of ST Engineering. 21 CORPORATE OVERVIEW PERFORMANCE REVIEW SUSTAINABILITY FINANCIAL REPORT
TECHNOLOGY & INNOVATION Over the past year, we continued to harness new and emerging technologies, including Generative AI and advanced data analytics to enhance our offerings. By harnessing internal synergies and forging strategic partnerships, we accelerate innovation, expand our reach and deliver smarter solutions faster. This approach empowers us to create greater OUR INNOVATION APPROACH Deepen Capability Building Deep Tech and Core Engineering Capabilities Strategic Innovation Units Drive Innovation Culture Internal Innovation Programmes Broaden Outreach to Leverage External Capabilities Research Translation @ ST Engineering Corporate Venture Unit Commercially Viable Product Development R&D Activity Funding Sources Classification in Financial Statements 2024 Research Projects Internal/ External Research, design and development expenses $189.8m1 Development Projects/ IP Rights and Licenses Internal/ External Capitalised development expenditure, commercial/intellectual property rights and licenses $65.6m2 Customer Funded R&D Projects External part of Cost of Sales $164.6m Total R&D $420.0m R&D Intensity over Revenue 3.7% OUR R&D INVESTMENT Our R&D approach is strategic and driven by business and product roadmaps, ensuring targeted investments that deliver differentiated products and solutions while supporting our growth. value for our customers, offering more efficient, tailored and impactful solutions to meet their evolving needs. 1 See Note B3 in Notes to Financial Statements on page 148 2 See Note C3 in Notes to Financial Statements on page 168 - 169 22 ST ENGINEERING | ANNUAL REPORT 2024
Cultivating Engineering Competencies for Future Success At the heart of advancing technology and engineering hardware lies our most valuable asset: our people. As a leading technology and engineering group, it is crucial for us to foster a culture of continuous learning and development while consistently enhancing the skills and competencies of our engineering workforce. Our Group Engineering Competency Framework is designed specifically to nurture our people and strengthen their engineering capabilities. It outlines clear career pathways with well-defined competency requirements, helping our engineers better plan and navigate their individual career paths within ST Engineering. Employees can also leverage this framework to assess their learning needs and acquire the necessary competencies for career advancement. STRENGTHENING OUR TECH AND ENGINEERING CORE Our Video Analytics suite, which is one of our reusable common modules, is embedded into our Intelligent Traffic Management System, reducing the system’s hardware requirements. Fostering Agility with Reusable Common Modules We are investing in the application of emerging technologies like Generative AI and the competencies of our engineering workforce. This involves developing scalable and adaptable systems that our field engineers can deploy with ease, while allowing our design and development engineers to focus on creating innovative customer-centric solutions. Fundamental to this is the building of ‘reusable common modules’, which are foundational technology components that embed advanced capabilities such as AI-driven knowledge management, insight extraction and computer vision. We design these modules for seamless integration into a variety of applications, ensuring compatibility with diverse business products such as Intelligent Transport Systems, Ship Management Systems and Smart City Systems. This approach enhances efficiency, accelerates development cycles and drives innovation across our solutions. HOR GAR YIN Group Chief Engineering Officer 23 CORPORATE OVERVIEW PERFORMANCE REVIEW SUSTAINABILITY FINANCIAL REPORT
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