Singapore Technologies Engineering Ltd · SGX:S63
Singapore Technologies Engineering — Shareholder Meeting (April 2021)
18 slides from Singapore Technologies Engineering's shareholder meeting presentation, Apr 22, 2021
Slide 1: 24th Annual General Meeting
24th Annual General Meeting Presentation by Vincent Chong Group President & CEO 22 April 2021
Slide 2: Our Aspiration: To be a Global Technology, Defence and Engineering Powerhouse
Our Aspiration To be a Global Strengthen Core Businesses Technology, Defence and Engineering Pursue Growth Opportunities Powerhouse • Smart City • International Defence Business At ST Engineering, we leverage technology and innovation to solve real-world problems and enable a more sustainable world
Slide 3: Balanced Results Despite Covid-19 Impact
2020 In Review – Financials Overview Balanced Results Despite Covid-19 Impact Revenue (S$B) Net Profit (S$B) 7.9 0.58 7.2 0.52 0.50 0.49 6.7 6.7 0.48 6.5 2016 2017 2018 2019 2020 2020 2016 2017 2018 2019 2020 3 |
Slide 4: Maintained Strong Order Book of $15.4B
2020 In Review – Financials Overview Maintained Strong Order Book of $15.4B Order Book (S$B) 15.3 15.4 $5.7b new contracts from Aerospace and Electronics 13.2 13.2 sectors despite Covid-19 11.6 challenges • $5.3B to be delivered in 2021 2016 2017 2018 2019 2020 4 |
Slide 5: Diverse Portfolio Provides Resilience
2020 In Review – Aerospace Diverse Portfolio Provides Resilience Multi-year MRO Contracts Passenger to Freighter Conversion Engine Nacelle Awarded 2020 Frost & Sullivan Best Redelivered “head of version” A321P2F Added capability for CFM56-7B and Practices Award to Vallair / Qantas V2500 engine nacel
Slide 6: Our Smart City Solutions enable more Sustainable Cities
2020 In Review – Smart Cities Our Smart City Solutions enable more Sustainable Cities IOT & ANALYTICS MOBILITY (RAIL) • Save energy with smart lighting • Optimise scarce water resources • Improve transport planning • Enhance operations via for complex networks simulations • Improve safety and reliab
Slide 7: Notable Smart Cities Wins and Projects
2020 In Review – Smart Cities Notable Smart Cities Wins and Projects Jurong Region Line Integrated Supervisory Control and Satellite modem platforms to power Communications SES’s Medium Earth Orbit (MEO) Rail electronics projects in China, Systems communications system India and Thailand Smart light
Slide 8: Strong Defence Business Provides Stability
2020 In Review – Defence Strong Defence Business Provides Stability Hunter Armoured Fighting Vehicle (AFV) Weapons & Munitions U.S. Army’s Cold Weather All- Terrain Vehicle (CATV) New contract for additional units of Hunter AFV by Singapore’s Ministry of New contracts from customers Defence in South
Slide 9: Prudent Cost Management Mitigates COVID-19 Impact
2020 In Review – Cost Management Prudent Cost Management Mitigates COVID-19 Impact Year 2021 - Commitment to achieve $180m Cost Savings (All values in $M) * Significant cost management initiatives Reduction of outsource / contract manpower ~ -250* Reduction of discretionary Partial business Govt sup
Slide 10: Our Technology Helps Fight the Pandemic
2020 In Review – Mask Production Our Technology Helps Fight the Pandemic Set-up first medical grade Manufacture raw material Develop reusable N95 mask mask factory in SG (meltblown polypropylene) Strengthened Manufacturing Enhanced Supply Chain Sustainable Option that Provides Capabilities Resilienc
Slide 11: Our Community Outreach Efforts Create Social Impact
2020 In Review – Giving Back to Society Our Community Outreach Efforts Create Social Impact Halter Marine donates to Surveillance & Monitoring C3 Systems Local Community charity and community Infrared Fever Hospital Operations Project #BYOBclean Security Robot Screening Systems Centre IMDA Digital A
Slide 12: New Organisation Structure Helps Drive Global Scale and Success
Looking Ahead - Accomplish Global Scale and Success New Organisation Structure Helps Drive Global Scale and Success Deepen customer Continue to leverage Enhance leadership engagement Group scale; structure; and domain expertise strengthen technology broaden bench - more customer focused and and engi
Slide 13: New Organisation Structure Supports Growth Strategy
Looking Ahead – Key Focus Areas New Organisation Structure Supports Growth Strategy Two Clusters of diverse portfolio across the aerospace, smart city, defence and public security segments, supported by the Group’s technology and engineering core Deepen Commercial Defence & Public Security customer
Slide 14: Strengthening Portfolio
Looking Ahead – Key Focus Areas Strengthening Portfolio Steadfast and Disciplined in Seeking Growth Ongoing Portfolio Review Continue to pursue base business growth Divest and liquidate businesses and M&A opportunities consistent with that are non-core or no longer fit strategy into strategic goals
Slide 15: Strengthen Technology & Innovation while enhancing Operational Excellence
Looking Ahead – Key Focus Areas Strengthen Technology & Innovation while enhancing Operational Excellence Technology & Innovation Operational Excellence Develop Ensure robust Drive business Drive continuous Achieve best-in-class technology innovation improvement operational and technologies planning
Slide 16: Strong balance sheet provides capacity for growth
Looking Ahead – Well Positioned for Growth Strong balance sheet provides capacity for growth AAA/stable $729m cash 0.5x Net rated by S&P and cash Debt/Equity ratio and Moody’s equivalents* and 11.2x interest cover ratio* 16 | * As at 31 December 2020
Slide 17: Committed to Long-Term Sustainable Value Creation
Looking Ahead – Value Creation Committed to Long-Term Sustainable Value Creation Annual TSR for Past 3 Years 16.9% 11.5% 9.4% 1 ST Engineering 2 STI 0.9% -6.4% -8.0% 2018 2019 2020 17 | 1: Source: ST Engineering Annual Report 2020 2: Source: Bloomberg – Total Return Analysis
Slide 18: Thank You
si¢ ST Engineering Thank You
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