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(A) OPTIONS GRANTED UNDER THE ST ENGG SHARE OPTIONSCHEME(i) During the financial year, the following options weregranted under the ST Engg Share Option Scheme.The fairNO. OF SHARESDATE OF EXERCISE GRANTED FAIR VALUE EXERCISE DIVIDEND RISK-FREE VOLATILITY EXPECTEDGRANT PERIOD UNDER OPTIONS OF OPTIONS PRICE YIELD INTEREST RATE RATE LIVES$ $ % % % YEARS9.2.2000* 10.2.2002 to 7,943,000 0.77 1.808 1.04 4.30 38.43 2.59.2.20109.2.2000 10.2.2002 to 35,610,080 0.61 2.26 1.04 4.30 38.43 2.59.2.20106.9.2000 7.9.2002 to 2,689,000 0.70 2.39 0.95 4.38 42.13 2.56.9.2010* At 9 February 2000, options were granted to eligible employees of CIS Group (“CIS Options”) pursuant to the modified Share Option Scheme approved atthe Extraordinary General Meeting held on 8 December 1999. The modified Share Option Scheme provides for the subscription price per share under theCIS Options to be fixed at a price per share equivalent to the price which is at a 20% discount to the average of the last dealt prices for the shares on theSingapore Exchange Securities Trading Limited (SGX-ST) for the five consecutive trading days immediately preceding the date of grant of the CIS Options.(ii) The options granted to directors under the ST EnggShare Option Scheme are as follows:AGGREGATE OPTIONS AGGREGATE OPTIONSGRANTED SINCE EXERCISED SINCE AGGREGATE OPTIONSOPTIONS GRANTED COMMENCEMENT OF COMMENCEMENT OF OUTSTANDINGDURING THE FINANCIAL SCHEME TO END OF SCHEME TO END OF AS AT END OFNAME OF PARTICIPANT YEAR UNDER REVIEW FINANCIAL YEAR FINANCIAL YEAR FINANCIAL YEARDirector of the CompanyBoon Swan Foo 1,000,000 4,775,889 2,770,889 2,005,000As at 31 December 2000, no options have been grantedto controlling shareholders of the Company or associatesof the Company and no employees have received 5% orvalue of options granted at the date of grant is estimatedusing the Black-Scholes option-pricing model on the basisof the following assumptions on dividend yield, risk-freeinterest rate, expected volatility and expected lives:more of the total options available under the ST EnggShare Option Scheme.(iii) Proforma Financial Effect under United StatesFinancial Accounting Standard No. 123.Strictly for information purposes only, the proformaprofit after taxation and minority interest but beforeThese proforma amounts may not be representative offuture disclosures since the estimated fair value of shareoptions is determined in respect of grants made andaccepted from financial years ended 31 December 1999and 2000.The estimated fair value of the share options isamortised over the vesting period and additional optionsmay be granted in future years.2000 1999$’000 $’000Profit after taxation and minority interests but before extraordinary items:As reported 288,138 200,529Proforma 273,379 195,749Earnings per share before extraordinary items (¢):As reported 10.12 7.08Proforma 9.61 6.91Diluted earnings per share before extraordinary items (¢):As reported 10.01 7.01Proforma 9.50 6.84(C) UNISSUED SHARES UNDER OPTIONDetails of the options to subscribe for ordinary shares of$0.10 each of the Company granted to employees of theextraordinary items and the earnings per share wouldhave been as follows had the Company accounted for thefair value of the options granted under United StatesFinancial Accounting Standard 123:(B) ISSUE OF SHARES UNDER OPTIONDuring the financial year, 17,004,832 ordinary shares of$0.10 each in the Company were issued pursuant to theexercise of options to take up unissued shares of theCompany.Group pursuant to the ST Engg Share Option Schemeare as follows:BALANCE ASAT 1.1.2000 BALANCE NO. OFDATE OF OR DATE OF OPTIONS OPTIONS AS AT HOLDERS AT EXERCISEGRANT GRANT IF LATER LAPSED EXERCISED 31.12.2000 31.12.2000 PRICE ($) EXERCISABLE PERIOD6.12.1997 85,902 – 85,902 – – 0.905 6.12.1997 to 2.6.20006.12.1997 18 18 – – – 0.467 6.12.1997 to 16.7.20006.12.1997 379,732 – 50,000 329,732 3 0.905 5.4.1998 to 3.4.20016.12.1997 100,000 – – 100,000 1 0.373 30.8.1998 to 30.8.200129.4.1998 25,000 – 25,000 – – 1.390 20.2.1999 to 20.8.20007.8.1998 5,000 – 5,000 – – 1.290 20.2.1999 to 20.8.20009.2.1999 30,240 – 30,240 – – 1.418 20.2.1999 to 20.8.200029.4.1998 36,000 – – 36,000 1 1.390 30.4.2000 to 29.4.20037.8.1998 5,000 – – 5,000 1 1.290 8.8.2000 to 7.8.20039.2.1999 24,480 – – 24,480 1 1.418 10.2.2001 to 9.2.20046.12.1997 45,056 – – 45,056 1 0.566 18.5.1999 to 28.6.20046.12.1997 765,110 – 713,166 51,944 5 0.873 18.5.1999 to 7.11.20046.12.1997 228,096 – – 228,096 2 0.473 18.5.1999 to 13.12.2004112 • visiondirectors’ report • 113