Singapore Technologies Engineering Ltd · SGX:S63
Singapore Technologies Engineering — ST Engineering — H1 2021 Earnings Presentation
33 slides from Singapore Technologies Engineering's earnings presentation, Aug 12, 2021
Slide 1: First-Half 2021 Results
First-Half 2021 Results 12 August 2021
Slide 2: Agenda
Agenda • New Segment Reporting • Group Highlights • Outlook • Segment Highlights • Appendix
Slide 3: New Segment Reporting
ST Engineering New Segment Reporting
Slide 4: Three business segments
New Segment Reporting Three business segments Group Urban Solutions & Defence & Public Commercial Aerospace Satcom Security (CA) (USS) (DPS) 4 |
Slide 5: Nine Sub-segments
New Segment Reporting Nine Sub-segments Segments Commercial Aerospace Commercial Urban Solutions & Satcom Defence & Public Security Aerospace Aerospace Aerostructures Digital Systems Sub-segments Urban Solutions Land Systems MRO & Systems & Cyber Aviation Asset Satellite Defence Management Communica
Slide 6: Group Highlights
ST Engineering Group Highlights
Slide 7: 1H2021 Net Profit 15% higher year-on-year
Group Highlights 1H2021 Net Profit 15% higher year-on-year Revenue EBIT PBT Net Profit 3,651 355.1 339.8 296.1 +2% y-o-y +13% y-o-y +19% y-o-y +15% y-o-y 7 | All figures are denominated in S$m unless indicated otherwise; amounts may not add up due to rounding
Slide 8: Group 1H2021 Revenue breakdown
Group Highlights Group 1H2021 Revenue breakdown 1H2021 Revenue 1H2021 Revenue 1H2021 Revenue S$3.7b by type (S$b) by location of customers Commercial Defence Defence & Public 2.47 2.35 2.24 Asia U.S. Security* 54% 59% 21% $2.0b Commercial 1.42 Aerospace 1.22 31% 1.04 Urban $1.1b Europe Others 15% 5%
Slide 9: Group Revenue
Group Highlights Group Revenue S$'m 1H2021 1H2020 Change Commercial Aerospace 1,136 1,267 -10% Urban Solutions & Satcom 528 471 +12% Defence & Public Security 1,987 1,834 +8% Group 3,651 3,572 +2% 9 | All figures are denominated in S$m unless indicated otherwise; amounts may not add up due to roundi
Slide 10: 1H2021 revenue growth of DPS and USS more than offset CA's revenue decline
Group Highlights 1H2021 revenue growth of DPS and USS more than offset CA’s revenue decline (+2%) (+4pp) 3,651 3,572 (-4pp) (+2pp) 1H2020 Commercial Urban Defence & 1H2021 Aerospace Solutions Public (1Q2020 was & Satcom Security without COVID impact) Notes: 10 | • All figures are denominated in S$m
Slide 11: Group EBIT
Group Highlights Group EBIT S$'m 1H2021 1H2020 Change Commercial Aerospace 102.6 74.7 +37% Urban Solutions & Satcom 10.8 (21.0) NM Defence & Public Security 241.7 260.4 -7% Group 355.1 314.1 +13% NM: Not Meaningful 11 | All figures are denominated in S$m unless indicated otherwise; amounts may not a
Slide 12: 1H2021 EBIT growth of DPS and USS more than offset lower government support
Group Highlights 1H2021 EBIT growth of DPS and USS more than offset lower government support and CA’s EBIT decline EBIT Net Profit (+13%) (+25pp) 355 (-1pp) (+15%) (+16pp) 296 314 (-4pp) (-8pp) 257 1H2020 Lower govt. CA** DPS and 1H2021 1H2020 EBIT Finance 1H2021 support* (1Q2020 was USS** costs, ta
Slide 13: Impact of government support on segments' 1H2021 EBIT
Group Highlights Impact of government support on segments’ 1H2021 EBIT Commercial Urban Solutions & Defence & Public Aerospace EBIT Satcom EBIT Security EBIT 1H2020 Govt BOP* 1H2021 1H2020 Govt BOP* 1H2021 1H2020 Govt BOP* 1H2021 support (1Q2020 was support support without COVID impact) Notes: 13 |
Slide 14: >$1.82b worth of new contracts secured in 2Q2021
Group Highlights >$1.82b worth of new contracts secured in 2Q2021 2Q2021* Highlights Commercial Aerospace $874m • 5-year contract to support an Asian Pacific airline in airframe heavy maintenance for its Boeing 787 fleet • A321P2F and A330P2F contracts from operators and lessors including MNG Airlin
Slide 15: Robust order book of $16.8b
Group Highlights Robust order book of $16.8b Order Book (S$’b) • Order book level higher 16.8 than pre-COVID, contributed by all business segments • $3.6b expected to be 15.7 delivered in the remaining 15.4 months of 2021 15.3 Dec 2019 Dec 2020 Mar 2021 Jun 2021 15 |
Slide 16: Outlook
ST Engineering Outlook
Slide 17: Higher than expected government support in 2021
All figures are denominated in S$m unless indicated otherwise ~180 + partial ~ business Higher than expected recovery government support in 2021 1H2021: -$11m 2H2021: -$139m • Cost savings and partial ~ business recovery will offset ~ -150 reduction in government support * Part of cost savings will
Slide 18: Group President & CEO's Message
Group President & CEO’s Message “We delivered a good set of results for the first half of 2021 amidst a challenging operating environment. We had also secured contract wins across our businesses that led to a robust order book, which continues to provide revenue visibility in the periods ahead. We r
Slide 19: Thank you
=" ST Engineering Thank you
Slide 20: Segment Highlights
ST Engineering Segment Highlights
Slide 21: Commercial Aerospace
ST Engineering Commercial Aerospace
Slide 22: Commercial Aerospace
Segment Highlights Commercial Aerospace 1H 2021 vs 1H 2020 • Attributable to Aerospace MRO Revenue $1,136m $131m or 10% and Aerostructure & Systems, as 1Q2020 was pre-COVID-19. • Due to higher government EBIT $102.6m $27.9m or 37% support, partially offset by impact of lower revenue. 22 | All figure
Slide 23: Commercial Aerospace sub-segment highlights
Segment Highlights Commercial Aerospace sub-segment highlights Aerostructures Aviation Asset Aerospace MRO & Systems Management Revenue, S$’m Revenue, S$’m AUM, US$’m 657 900 -16% 643 -4% +5% 551 619 861 1H2020 1H2021 1H2020 1H2021 1H2020 1H2021 Notes: 23 | - Revenue include inter-segment and inter-
Slide 24: Urban Solutions & Satcom
ST Engineering Urban Solutions & Satcom
Slide 25: Urban Solutions & Satcom
Segment Highlights Urban Solutions & Satcom 1H 2021 vs 1H 2020 • Contributed by Smart Mobility Revenue $528m $56m or 12% and Satcom businesses • Contribution from higher revenue and lower operating EBIT $10.8m $31.8m expenses, partially offset by lower government support 25 | All figures are denomin
Slide 26: Urban Solutions & Satcom sub-segment highlights
Segment Highlights Urban Solutions & Satcom sub-segment highlights Urban Solutions Satcom * Revenue, S$’m Revenue, S$’m +10% 348 +17% 205 186 298 1H2020 1H2021 1H2020 1H2021 Notes: 26 | - Revenue include inter-segment and inter-subsegment sales * Satcom was impacted by semi-conductor chip shortages
Slide 27: Defence & Public Security
ST Engineering Defence & Public Security
Slide 28: Defence & Public Security
Segment Highlights Defence & Public Security 1H 2021 vs 1H 2020 Revenue $1,987m $153m or 8% • Contributed by all sub-segments • Due to lower government support, partially offset by EBIT $241.7m $18.7m or 7% contribution from higher revenue, cost savings and one-off liquidation proceeds 28 | All figu
Slide 29: Defence & Public Security sub-segment highlights
Segment Highlights Defence & Public Security sub-segment highlights Digital Systems Defence Marine Land Systems & Cyber Aerospace Revenue, S$’m Revenue, S$’m Revenue, S$’m Revenue, S$’m +1% +9% 719 +9% 385 390 717 +14% 213 661 195 630 1H2020 1H2021 1H2020 1H2021 1H2020 1H2021 1H2020 1H2021 Notes: 29
Slide 30: Appendix
ST Engineering Appendix
Slide 31: Statement of Financial Position
Statement of Financial Position S$'m 30 Jun 2021 31 Dec 2020 Property, plant & equipment 1,771 1,757 Right-of-use assets 530 539 Intangible assets 1,951 1,946 Other non-current assets 746 731 Current assets 4,448 4,588 Total assets 9,447 9,561 Current liabilities 3,898 3,896 Non-current liabilities
Slide 32: Statement of Cash Flows
Statement of Cash Flows S$'m 1H2021 1H2020 Net cash from/(used in) Operating activities 426 1,017 # Investing activities (146) (151) Financing activities (429) (984) Net decrease in CCE * (150) (118) CCE at beginning of the period 729 452 Exchange difference 3 8 CCE at end of the period 583 342 * CC
Slide 33: >$1.55b worth of new contracts secured in 1Q2021
>$1.55b worth of new contracts secured in 1Q2021 1Q2021* Highlights Commercial $573m • 5-year contract to support a North American airlines in airframe heavy maintenance Aerospace • 3-year component MBH contract to support a South Korean airline • 4 units of A321P2F for GTLK Europe DAC, an European