Full Annual Report 2006 - Singapore Technologies Engineering

189
Notes to the Financial Statements 31 DECEMBER 2006
(Currency – Singapore dollars unless otherwise stated)
45. CONTINGENT LIABILITIES (UNSECURED) (continued)
(d) In April 2005, the Company entered into a Letter of Intent with ASA Management Aps (“ASA”) and a financial partner to
form a consortium to explore an acquisition of SAS Component Group A/S.
After the withdrawal of the financial partner sometime in end August 2005, the consortium broke up. ASA alleged that
the Company had, in breach of the contract with ASA, concluded its acquisition of SAS Component Group A/S without
involving ASA.
ASA commenced arbitration in late November 2006, which arbitration will be heard in Paris, claiming for (i) Euro
5,600,000 as compensation plus interest and (ii) future exit fee. The Company is disputing these claims. The Company is
of the opinion that the claim will not have a material financial impact on the Group.
46. SEGMENT INFORMATION
(a) Analysis by business segments
The Group is organised on a worldwide basis into four main operating segments, namely:
(i) Aerospace
Provides a spectrum of aerospace maintenance and engineering services for a wide range of military and commercial
aircraft through its three operational divisions; Aircraft Maintenance & Modification, Component/Engine Repair &
Overhaul, and Engineering & Materials Services.
(ii) Electronics
A leading provider of electronics and information communications technologies solutions in the region. Its core
capabilities lie in its innovative design, development and integration of advanced electronics systems for commercial,
industrial, defence and public services applications worldwide.
(iii) Land Systems
Provides integrated systems, specialty vehicles and their related services for defence, government and commercial
applications. This includes design and development, systems integration, production, operations & support and life
cycle management.
(iv) Marine
Provides turnkey shipbuilding, shipconversion and shiprepair services. The shipyard’s design capabilities give it the
edge in providing sophisticated, highly customised solutions for a wide spectrum of naval and commercial vessels.
Other operations include research and development, treasury, investment holding and provision of management,
consultancy, warehousing and other support services.
Inter-segment pricing is on an arm’s length basis.