Singapore Technologies Engineering Ltd · SGX:S63
Singapore Technologies Engineering — Singapore Tech Eng — FY2024 Earnings Presentation
37 slides from Singapore Technologies Engineering's earnings presentation, Feb 27, 2025
Slide 1: Financial Year 2024 Results
Financial Year 2024 Results 27 February 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: Agenda
➢ FY 2024 Financial Highlights • Group Highlights Agenda • Business Discussions - Commercial Aerospace (CA) - Defence & Public Security (DPS) - Urban Solutions (URS) & Satcom (USS) • Productivity • Debt Profile • Contract Wins and Order Book • Investing for the Future • Dividends • Outlook • Segment
Slide 4: Group Highlights
ST Engineering Group Highlights
Slide 5: Group Highlights
Group Highlights ❑ Group Revenue, EBITDA, EBIT, PBT, Net Profit at new levels $'m Revenue EBITDA Revenue EBITDA 5,755 828 11,276 1,614 +10% y-o-y +11% y-o-y +12% y-o-y +11% y-o-y EBIT PBT Net Profit EBIT PBT Net Profit 554 446 366 1,076 863 702 +18% y-o-y +26% y-o-y +20% y-o-y +18% y-o-y +23% y-o-y
Slide 6: Group FY2024 Revenue Breakdown
Group Highlights Group FY2024 Revenue Breakdown FY2024 Revenue by segment FY2024 Revenue by type FY2024 Revenue $11.3b $11.3b by location of customers Commercial Defence $’b DPS CA 7.8 Asia U.S. 7.1 +15% 51% 23% CA, $4.4b 39% $2.1b DPS, $4.9b $1.4b 44% 5.9 * 3.5 Europe Others USS 3.0 19% 7% USS, $2.
Slide 7: FY2024 Revenue
Group Highlights FY2024 Revenue ❑ Strong growth +12% $’m 11,276 13 683 479 10,101 FY2023 CA DPS USS FY2024 7 |
Slide 8: FY2024 Earnings Before Interest and Tax (EBIT)
Group Highlights FY2024 Earnings Before Interest and Tax (EBIT) ❑ Strong growth +18% $’m 1,076 162 915 R1 FY2023 Business growth & cost savings FY2024 R1 FY2023 included SatixFy divestment loss of $24m and higher Satcom severance costs of $4m, partially offset by U.S. Marine post-sale completion gai
Slide 9: FY2024 Net Profit
Group Highlights FY2024 Net Profit ❑ Strong growth +20% $’m 702 586 116 FY2023 Business growth & cost savings R1 FY2024 R1 FY2023 included SatixFy divestment loss of $18m and higher Satcom severance costs of $3m, partially offset by U.S. Marine post-sale completion gain of $12m. This resulted in a n
Slide 10: Business Discussions
ST Engineering Business Discussions
Slide 11: Strong CA Revenue and EBIT margin
Business Discussions Strong CA Revenue and EBIT margin Financials ($’m) Business Updates Revenue EBIT Revenue 4,384 • Stronger Engine MRO, Nacelles, PTF 23 +19% and Composite Panels sales 400 +12% EBIT +15% 337 • Stronger revenue and margin 3,905 BOPR1 • PTF margin achieved mid-single digit % 101 4,
Slide 12: Strong DPS Revenue and EBIT growth
Business Discussions Strong DPS Revenue and EBIT growth Financials ($’m) Business Updates Revenue EBIT Revenue +16% 636 • Contributed by all sub-segments 4,935 567 +12% • Digital Business achieved $645m +15% 4,252 16 revenue BOPR1 EBIT • Growth driven by higher revenue 551 Contract Wins • $5.3b of n
Slide 13: USS Revenue and EBIT
Business Discussions USS Revenue and EBIT Business Updates Financials ($’m) Revenue Revenue EBIT • Contributed by URS, partially offset by Satcom +1% 1,957 EBIT 1,944 • Improved EBIT Improved • Absence of SatixFy divestment loss 40 • Lower Satcom severance costs Contract Wins 10 • $2.6b of new contr
Slide 14: Satcom: Transformation Journey Continues
Business Discussions Satcom: Transformation Journey Continues Revenue ($’m) Stronger 4Q2024 performance • 4Q2024 - 12% higher y-o-y +12% • 4Q2024 - Marginally positive operating EBIT • Keeping focus on continuous improvements Key wins and developments • Indonesia’s Satria-1 satellite network • Brazi
Slide 15: Productivity
ST Engineering Productivity
Slide 16: Operating expenses / revenue continue to improve
Productivity Operating expenses / revenue continue to improve OPEX / Revenue (%) 13.5 • Achieved lowest OPEX / Revenue • Continuous improvement, 12.1 productivity gain and cost 12.5 11.4 management to mitigate inflation 12.0 10.6 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 (Covid) 16 |
Slide 17: Debt Profile
ST Engineering Debt Profile
Slide 18: Balanced Debt Profile
Debt Profile Balanced Debt Profile • Borrowings reduced from $6.1b to $5.8b, Total Borrowings Floating despite 3% stronger USD/SGD. Fixed • EBITDA increased 11% to $1.6b. -5% • Gross Debt/EBITDA leverage ratio reduced $’b 6.1 from 4.2x in 2023 to 3.6x in 2024. 5.8 • Fixed-vs-floating interest rate r
Slide 19: Contract Wins and Order Book
ST Engineering Contract Wins and Order Book
Slide 20: $12.6b New Contracts for FY2024, incl. $4.3b for 4Q2024
Contract Wins and Order Book $12.6b New Contracts for FY2024, incl. $4.3b for 4Q2024 4Q2024 Highlights • 15-year exclusive LEAP-1B contract with Akasa Air Commercial • CFM56-7B engine MRO contract with an Asian airline $1.8b • Six-year airframe heavy maintenance contract with a Canadian airline Aero
Slide 21: Order Book Remains Robust
Contract Wins and Order Book Order Book Remains Robust Order Book $’b 28.5 • $28.5b as at 31 Dec 2024 27.4 23.0 • $8.8b expected to be delivered in 2025 Dec-22 Dec-23 Dec-24 21 |
Slide 22: Investing for the future
ST Engineering Investing for the future
Slide 23: Investing for Growth
Operational Highlights Investing for Growth 1 3 2 Capacity & Capability Building Market Expansion Operation Improvement • Airframe MRO facilities • 155mm ammunition exports to • Harnessing AI Europe • Gul shipyard • Procurement savings • 8x8 Armoured Vehicle • 4th Data Centre partnership in Kazakhst
Slide 24: Dividends
ST Engineering Dividends
Slide 25: FY2024 Final Dividend of 5.0 Cents per Share
Dividends FY2024 Final Dividend of 5.0 Cents per Share • Final dividend of 5.0 cents per ordinary Dividend per Ordinary Share share for FY2024, subject to shareholder approval at upcoming AGM on 24 April 2025 Interim Interim Interim 12.0¢ 12.0¢ 12.0¢ • If approved, the total dividend for FY2024 Fina
Slide 26: Outlook
ST Engineering Outlook
Slide 27: Group President & CEO's Message
Group President & CEO’s Message “ We delivered a very strong set of results in 2024 despite an uncertain and challenging environment. We are confident that our strong fundamentals will continue to position us well, even as we confront a fast-changing landscape. We have a robust order book and a comp
Slide 28: Segment Highlights
ST Engineering Segment Highlights
Slide 29: Segment Revenue
Segment Highlights Segment Revenue $’m 2H2024 2H2023 Change FY2024 FY2023 Change Commercial 2,154 2,050 +5% 4,384 3,905 +12% Aerospace +15% excl. aircraft sales Defence & Public 2,563 2,135 +20% 4,935 4,252 +16% Security Urban Solutions & 1,038 1,053 -1% 1,957 1,944 +1% Satcom Group 5,755 5,238 +10%
Slide 30: Segment EBIT
Segment Highlights Segment EBIT $’m 2H2024 2H2023 Change FY2024 FY2023 Change Commercial 210 160 +32% 400 337 +19% Aerospace Defence & Public 312 267 +17% 636 567 +12% Security +15% excl U.S. Marine post- sale completion gain in 2023 Urban Solutions & 31 44 -29% 40 10 +299% Satcom Group 554 470 +18%
Slide 31: Commercial Aerospace Sub-segment Highlights
Segment Highlights Commercial Aerospace Sub-segment Highlights Aerospace MRO Aerostructures & Systems Aviation Asset Management Revenue, $’m Revenue, $’m AUMR1, US$’m +17% +10% +11% 2,286 2,180 2,316 1,977 2,081 1,957 FY2023 FY2024 FY2023 FY2024 FY2023 FY2024 Notes: R1 AUM refers to Asset Under Mana
Slide 32: Defence & Public Security Sub-segment Highlights
Segment Highlights Defence & Public Security Sub-segment Highlights Defence Aerospace Digital Systems Land Systems Marine & Cyber Revenue, $’m Revenue, $’m Revenue, $’m Revenue, $’m +24% +9% 2,061 1,769 1,617 1,668 +15% +7% 614 705 471 503 FY2023 FY2024 FY2023 FY2024 FY2023 FY2024 FY2023 FY2024 32 |
Slide 33: Urban Solutions & Satcom Sub-segment Highlights
Segment Highlights Urban Solutions & Satcom Sub-segment Highlights Urban Solutions Satcom Revenue, $’m Revenue, $’m +5% Includes 1,710 -14% +12% y-o-y 1,633 348 increase in 4Q2024 300 revenue FY2023 FY2024 FY2023 FY2024 33 | Note: Revenue includes inter-segment and inter-subsegment sales
Slide 34: Appendix
£"6 ST Engineering Appendix
Slide 35: Statement of Financial Position
Appendix Statement of Financial Position $'m 31 Dec 2024 31 Dec 2023 Property, plant and equipment 2,115 2,076 Right-of-use assets 605 651 Intangible assets 4,990 4,958 Other non-current assets 1,188 1,064 Current assets 7,324 6,630 Total assets 16,221 15,379 Current liabilities 8,239 7,322 Non-curr
Slide 36: Statement of Cash Flows
Appendix Statement of Cash Flows $’m FY2024 FY2023 Net cash from / (used in): Operating activities 1,718 1,179 Investing activities (414) (201) Financing activities (1,222) (1,226) Net change in CCE* 82 (248) CCE at beginning of the year 353 602 Exchange difference (5) - CCE at end of the year 430 3
Slide 37: 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 37 |