Singapore Technologies Engineering Ltd · SGX:S63
Singapore Technologies Engineering — Investor Day (March 2025)
25 slides from Singapore Technologies Engineering's investor day presentation, Mar 18, 2025
Slide 1: Journey to Growth
2 0 2 5 I N V E S T O R D AY Journey to Growth Robust Returns Vincent Chong Group President & Chief Executive Officer 18 March 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: 2021 Investor Day Recap
2021 Investor Day Recap 2026 targets Annual revenue to grow at 2 to 3 times global Net profits to grow in GDP growth rate to >$11b1 tandem with revenue Sustainability- linked revenue to grow to >$3b Commercial Aerospace to achieve >$3.5b Other Core in revenue Smart City revenue to more Businesses th
Slide 4: Strong performance
Progress since 2021 Investor Day Strong performance Group Revenue ($’b) Net Profit ($’m) Return on Equity (%) 11.3 Covid-19 Govt Support 26.3 >11 571 535 522 2 702 177 23.6 7.2 586 22.8 23.8 533 340 394 22.3 20 182 2020 2024 2026 Target 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Target: Grow
Slide 5: Well on-track to meet 2026 targets
Progress since 2021 Investor Day Well on-track to meet 2026 targets Achievement 2026 Targets (2020 base year) (as of 2024) 01 Annual revenue to grow at 2x to 3x global GDP growth rate to >$11b Achieved 02 Commercial Aerospace to achieve >$3.5b in revenue Achieved 03 Smart City revenue to more than d
Slide 6: Sound strategy, strong execution
Progress since 2021 Investor Day Sound strategy, strong execution Strengthened core businesses Pursuing growth opportunities Operationalised customer-centric organisation structure Accelerated growth and capability building through acquisitions Continued to capture synergies and efficiencies 6 | ST
Slide 7: Robust order book, leading indicator of revenue growth
Strong foundation for growth Robust order book, leading indicator of revenue growth Order Book ($’b) 28.5 27.4 23.0 17.5 14.4 2020* 2021* 2022 2023 2024 7 | ST Engineering 2025 Investor Day * Exclude U.S. Marine business divested in 2022
Slide 8: Commercial Aerospace
1 Strengthened core Commercial Aerospace Exceeded Expanding Well positioned Revenue ($’b) 2026 targets hangar capacity for further Continue to growth 17% 4.4 streamline & optimise CAGR 3.9 Key Wins 2026 target 3.5 3.0 +88% Exclusive OEM Airbus Freighter conversion 2.5 solutions - A320 (on top of exi
Slide 9: Commercial Aerospace: Soaring higher
1 Soaring higher Commercial Aerospace Revenue to grow at 2x industry Next Bound Growth growth rate1 to reach $6.0b by 2029 Expand global business in MRO Leverage new engine MRO capability • Aerospace MRO • Aerostructures & Deliver new-gen Nacelle products Systems • Aviation Asset Management Aviation
Slide 10: Scaling Smart City
2 Scaling Smart City Smart City Revenue to grow by 3.5x global GDP Next Bound Growth growth rate to $4.5b1 by 2029 Expand go-to-market in Our Smart City Business Middle East & Asia-Pacific Leverage growth trends in cloud, Smart Smart Smart Digital data centre, AI, cybersecurity Mobility Environment
Slide 11: Smart City – Digital Business
2 Scaling Smart City Smart City – Digital Business Digital Business revenue to more than double by 2029 Growth Drivers | Key Partners Revenue ($’b) >1.3 Cloud & Data Centre 0.6 AI Analytics 2026 target 0.5 0.2 2029 Cybersecurity 2020 2024 Target 11 | ST Engineering 2025 Investor Day
Slide 12: Smart City – Urban Solutions & Satcom
2 Strengthened core Smart City – Urban Solutions & Satcom >70% revenues outside of Singapore Moved up value chain – Mobility Rail Revenue ($’b) 15% Launched next-gen Satcom multi-orbit, CAGR 2.0 1.9 virtualised software-defined platform 1.8 Key Wins +78% 1.2 Mobility Rail 1.1 Toll Collection (Tier 1
Slide 13: Defence & Public Security: Organised for success
3 Strengthened core Defence & Public Security Revenue ($’b) Organised for success Strengthened Grew international market 10% Singapore core presence & partnerships CAGR 4.9 New International >$2.2b Defence Orders (2021-2024) 4.3 4.0 +47% 3.7 Key Wins Key Wins 3.4 Design and 155mm NATO-grade Ammo con
Slide 14: Defence & Public Security: Capturing new opportunities
3 Capturing new opportunities Defence & Public Security Opportunities Accelerated adoption of technology Addressable with short cycle tech capabilities International Defence Market Increased defence spending due >US$11b to heightened geopolitical tensions Over next 5 years Greater demand for collabo
Slide 15: New growth areas
4 Incubating new ventures 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
Slide 16: Sustainability is core to our business
Moving towards a more sustainable world 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 16 | ST Engineering 2025
Slide 17: Capturing Synergies
Competitive advantage Group Synergies Cross-selling & product synergies Capturing Reusable & dual-use technology modules Synergies Shared resources & shared services 17 | ST Engineering 2025 Investor Day
Slide 18: AI – Enabler and multiplier
AI – Enabler and multiplier Technology & Innovation 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 & Translation AI-assisted
Slide 19: Efficiency & Productivity
Strengthening enablers Efficiency & Productivity Total accumulated cost savings of >$900m from 2020-2024 Strong cost controls – OPEX / Revenue (%) continuous improvement >$1b & productivity initiatives 13.5 12.0 12.1 Centralised 11.4 procurement & supply Cumulative 10.6 chain management Savings 10.6
Slide 20: Dividend Policy
Strengthening enablers – Financial management Dividend Policy Dividend Policy Dividend Plan for FY2025 Effective for FY2026 and onwards • For FY2024, proposed total dividend is 17.0 cents per share. The Company is targeting further growth in Includes final dividend of 5.0 cents per share, subject to
Slide 21: Navigating uncertainties and challenges
Volatile and complex operating environment 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 manag
Slide 22: 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 22 | ST Engineering 2025 Investor Day
Slide 23: 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 to grow >2.5x CAGR to exceed share to increase global GDP Group Revenue in tandem with growth rate1 to $17b CAGR 2 by up to 5 profit 3
Slide 24: 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 25: Thank you
ally 4 ©, 91 Engineering Thank you
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