Singapore Technologies Engineering Ltd · SGX:S63
Singapore Technologies Engineering — Shareholder Meeting (April 2025)
24 slides from Singapore Technologies Engineering's shareholder meeting presentation, Apr 24, 2025
Slide 1: 28th Annual General Meeting
28th Annual General Meeting Vincent Chong Group President & Chief Executive Officer 24 April 2025
Slide 2: Disclaimer
Disclaimer The forward-looking statements in this presentation reflect the Company's current intentions, plans, expectations, assumptions and beliefs about future events as at the date of this presentation. Actual future performance, outcomes and results may differ materially from those expressed in
Slide 3: Aspiration and Corporate Purpose
Aspiration Become a Global Technology, Defence and Engineering Powerhouse Corporate Purpose Harness Technology and Innovation to enable a more secure and sustainable world 3 | 3 |
Slide 4: Financial Year 2024 Highlights
Financial Year 2024 Highlights Record Revenue and Net Profit 4 |
Slide 5: Strong performance
Strong performance Group Revenue ($’b) EBIT ($’m) Net Profit ($’m) 1,076 702 11.3 R1 R1 +12% +18% +20% 10.1 915 586 9.0 535 735 2022 2023 2024 2022 2023 2024 2022 2023 2024 5 | R1 At a base operating performance level, FY2024 EBIT and Net Profit increase would be 16% and 18% y-o-y respectively.
Slide 6: Commercial Aerospace
Commercial Aerospace Highlights Expanding Well positioned Revenue ($’b) hangar capacity to grow in a 4.4 Continue to strong market 3.9 +12% streamline & optimise 3.0 Multiple CFM LEAP Engines contract wins as the first Premier MRO Provider in Asia More than doubled Aviation Assets under Management t
Slide 7: Defence & Public Security
Defence & Public Security Highlights Strengthened Singapore core Revenue ($’b) 4.9 Grew international market presence & partnerships +16% New International Defence Orders 4.0 4.3 >$2.2b (2021-2024) Design and AI-enabled Systems construction of RSN & GPU Infrastructure Multi-Role Combat for governmen
Slide 8: Smart City – Urban Solutions & Satcom
Smart City – Highlights Urban Solutions & Satcom Moved up value chain –Tier 1 Prime in Mobility Rail Revenue ($’b) Launched next-gen Multi-Orbit 2.0 Satcom platform 1.9 +1% Satcom 4Q2024 operating EBIT marginally positive amidst continuing challenges 1.8 Synergistic wins for TransCore Electronics To
Slide 9: Robust order book provides revenue growth visibility
Robust order book provides revenue growth visibility Order Book ($’b) 28.5 27.4 • $12.6b new contract wins in 2024 23.0 • Order book of $28.5b as at 31 Dec 2024 Dec-22 Dec-23 Dec-24 9 |
Slide 10: Continuous improvement in productivity
Continuous improvement in productivity OPEX / Revenue (%) 13.5 Ratio improving • Achieved lowest OPEX / Revenue 12.1 • Higher productivity mitigates 12.0 11.4 inflation 10.6 FY2020 FY2021 FY2022 FY2023 FY2024 (Covid) 10 |
Slide 11: Balanced debt profile
Balanced debt profile Total Borrowings ($’b) • Borrowings reduced from $6.1b to $5.8b. Floating Fixed • Gross Debt/EBITDA leverage ratio -5% reduced from 4.2x in 2023 to 3.6x in 6.1 5.8 2024. 38% 31% • Group weighted average borrowing cost for FY2024 was 3.6% and for FY2025 expected to be mid 3%. •
Slide 12: Sustainability is core to our business
Sustainability is core to our business Doing Our Part Integrate ESG Reduce GHG Decarbonise into operations emissions supply chain Enabling Our Customers Energy Advanced Additive Smart Energy Transition Materials Manufacturing Building 12 |
Slide 13: Strengthening employer branding & continuous community outreach
Strengthening employer branding & continuous community outreach Employer of Choice Community Outreach 4th 4th 4th 5th 5th 5th Improving lives through charitable gifts 9th 4th most attractive Empowering lives employer in Singapore by through education Engineering / Natural Sciences Students 20th Tran
Slide 14: 2025 Investor Day Mid-term Plans
2025 Investor Day Mid-term Plans 14 |
Slide 15: 2025 Investor Day: Five-year Targets (2025-2029)
2025 Investor Day: Five-year Targets (2025-2029) (Base year 2024) Strengthen Core Business | Pursue Growth Opportunities Group Revenue Group Net Profit Dividend per share to grow >2.5x CAGR to exceed to increase in global GDP Group Revenue tandem with profit 3 growth rate1 to $17b CAGR 2 by up to 5
Slide 16: New growth areas
New growth areas Construction Hydrogen Marine Explore new Robotics Renewables opportunities (Painting & others) • Decentralised • Offshore wind • Technology hydrogen support vessels opportunities that production • Alternative energy complement (Hydrogen-in- powered vessels existing portfolio a-Box)
Slide 17: Technology & Innovation
Technology & Innovation Investing ~4 to 5% of Group Revenue annually in R&D Products & Solutions Productivity Tools Empowering customers Driving efficiency AI for Critical Operations AI-assisted Operations Next-gen AI-enabled Platforms AI-assisted Coding AI Centre of Autonomous Systems Excellence &
Slide 18: Navigating uncertainties and challenges
Navigating uncertainties and challenges Strategy Execution Supply Chain Geopolitical Tensions • Focused strategy • Enhance supply • Agile response to execution and risk chain resilience changes in operating mitigation environment • Continual portfolio management 16 businesses divested/ceased since 2
Slide 19: Journey to yield cum growth
Journey to yield cum growth Sound Strategy Competitive Strong Execution Differentiators Financial Strength Technology & Proven Growth Innovation Track Record Robust Order Book Strong Talent Bench Strength 19 |
Slide 20: Dividend Plan for FY2025
Dividend Plan for FY2025 • For FY2024, proposed total dividend is 17.0 cents per share. Includes final dividend of 5.0 cents per share, subject to shareholder approval at the 2025 AGM on 24 April 2025. • For FY2025, given current robust retained earnings and a strong five-year outlook, the Company p
Slide 21: Dividend Policy – Effective for FY2026 and onwards
Dividend Policy – Effective for FY2026 and onwards The Company is targeting further growth in revenue, operating cash flow and net profit with an objective to improve total shareholders’ return (TSR). It intends to re-invest for growth while rewarding shareholders with dividends as described below.
Slide 22: Illustration of new Dividend Policy
Illustration of new Dividend Policy (As an example of year-on-year net profit increase) Year-on-year incremental +100 ⅓ Incremental Net Profit dividend $33m* 1 cent $67m per share Year 1 dividend 2/3 Reinvestment for growth Year 2 dividend Year 1 Year 2 Net Profit ($’m) 22 | * As part of final divid
Slide 23: Creating value for shareholders
Creating value for shareholders Total Shareholder Return (TSR %) Return on Equity (FY2024) 20.5% 23.8% 26.3% 10% FY2023: 23.8% 4.0% 4.4% Dividends Per Share (FY2024) 19.8% 16.1% 17.0¢ 6% FY2023: 16.0¢ 2023 2024 Capital Gain Dividend Yield TSR 23 |
Slide 24: Connect with us
Connect with us Icon Icon Icon Description automatically generated Description automatically generated Description automatically generated Icon Description automatically generated www.stengg.com
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