Singapore Technologies Engineering Ltd · SGX:S63
Singapore Technologies Engineering — Singapore Tech Eng — H1 2024 Earnings Presentation
40 slides from Singapore Technologies Engineering's earnings presentation, Aug 14, 2024
Slide 1: First-Half 2024 Results
First-Half 2024 Results 14 August 2024
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
Agenda ➢ 1H2024 Financial Highlights • Group Highlights • Business Discussions - Commercial Aerospace (CA) - Defence & Public Security (DPS) - Urban Solutions (URS) & Satcom (USS) • Contract Wins and Order Book • Debt Profile • Dividends • Outlook • Segment Highlights ➢ Question & Answer session Not
Slide 4: Group Highlights
ST Engineering Group Highlights
Slide 5: 1H2024 Strong Revenue and Profit Growth Y-o-Y
Group Highlights 1H2024 Strong Revenue and Profit Growth Y-o-Y ($’m) Revenue EBIT PBT Net Profit 5,520 523 416 337 +14% +18% +19% +20% y-o-y y-o-y y-o-y y-o-y 5 |
Slide 6: Group 1H2024 Revenue Breakdown
Group Highlights Group 1H2024 Revenue Breakdown 1H2024 Revenue by segment 1H2024 Revenue by type 1H2024 Revenue $5.5b $5.5b by location of customers Commercial Defence $’b 3.9 Asia U.S. DPS CA 3.3 50% 24% CA, $2.2b $2.1b DPS,$1.4b $2.4b 2.8 40% 43% Europe Others USS 1.6 1.6 20% 6% 1.5 USS, $0.9b$0.8
Slide 7: Group Revenue
Group Highlights Group Revenue ❑ Growth in all segments +14% $’m 5,520 28 254 375 4,863 1H2023 CA DPS USS 1H2024 7 |
Slide 8: 1H2024 EBIT
Group Highlights 1H2024 EBIT ❑ Strong EBIT growth $’m +18% 523 79 444 1H2023 Business growth & cost savings R1 1H2024 R1 Includes $26m Satcom one-off losses due to SatixFy divestment loss and severance costs recorded in 1H2023. Hence, on a Base Operating Performance (BOP) basis, 1H2024 EBIT increase
Slide 9: 1H2024 Net Profit
Group Highlights 1H2024 Net Profit ❑ Strong Net Profit growth $’m +20% -12 337 68 281 1H2023 Business growth Finance costs 1H2024 & cost savingsR1 R1 Includes $19m Satcom one-off losses due to SatixFy divestment loss and severance costs (after tax) recorded in 1H2023. Hence, on a BOP basis, 1H2024 N
Slide 10: Business Discussions
ST Engineering Business Discussions
Slide 11: Commercial Aerospace
Business Discussions Commercial Aerospace Revenue ($m) • 20% y-o-y growth in 1H2024 +20% - Strong growth for MRO and 2,231 7 Aerostructures & Systems 1,856 101 1,755 2,224 • $2.1b of new contracts in 1H2024 - $1.3b in 2Q2024 1H2023 1H2024 Note: Excluding aircraft sale, revenue growth was 27% y-o-y.
Slide 12: Defence & Public Security
Business Discussions Defence & Public Security Revenue ($m) • 12% y-o-y revenue growth in 1H2024 +12% - Growth for all sub-segments 2,372 2,117 • $2.6b of new contracts in 1H2024 - $1.0b in 2Q2024 • Good progress in international market development 1H2023 1H2024 >$500m contract wins in 1H2024 12 |
Slide 13: Urban Solutions & Satcom
Business Discussions Urban Solutions & Satcom Revenue ($m) • 3% y-o-y growth in 1H2024 - Growth in URS offsets lower Satcom revenue +3% - Pause in New York Congestion Pricing 891 918 start date; no material impact on USS • $1.4b of new contracts in 1H2024 - $0.8b in 2Q2024 1H2023 1H2024 13 |
Slide 14: Satcom: Opportunities and Challenges
Business Discussions Satcom: Opportunities and Challenges Opportunities Challenges • Multi-orbit systems • Disruptions from LEO Industry constellations and rise of Transformation • Growing demand for vertically-integrated connectivity and end-to-end providers orchestration • INTUITION on track to de
Slide 15: 1H2024 EBIT by Segments
Group Highlights 1H2024 EBIT by Segments ❑ Better performance in all segments Commercial Aerospace Defence & Public Security Urban Solutions & Satcom $’m $’m $’m 190 324 9 12 +7% 24 +8% 178 301 43 Improved -34 1H2023 Business 1H2024 1H2023 Business 1H2024 1H2023 Business 1H2024 growth & growth & gro
Slide 16: Order Book
ST Engineering Order Book
Slide 17: New Contract Wins and Strong Order Book
Contract Wins and Order Book New Contract Wins and Strong Order Book Contract Wins Order Book $6.1b $14.3b $27.9b New contracts for 1H2024 as at 30 Jun 2024 (1Q2024: $3.0b; 2Q2024: $3.1b) $4.9b Expected to be delivered for rest of the year Commercial Defence & Urban Solutions Aerospace Public Securi
Slide 18: ~$3.1b New Contracts for 2Q2024
Contract Wins and Order Book ~$3.1b New Contracts for 2Q2024 2Q2024 Highlights • Two-year CFM LEAP engine module repair offload agreement with Safran Aircraft Commercial $1,287m Engines Aerospace • Three-year LEAP-1B quick-turn offload agreement extension with Safran Aircraft Engines • A320 airframe
Slide 19: Debt Profile
ST Engineering Debt Profile
Slide 20: Balanced Debt Profile
Debt Profile Balanced Debt Profile Floating Total Borrowings • Total borrowings (~90% USD denominated) was flat at Fixed S$6.1b, despite 3% stronger USD/SGD 0% • EBITDA increased 11% y-o-y to $786m $’b 6.1 6.1 - applied towards capital expenditure for growth, debt & interest repayments and dividends
Slide 21: Dividends
ST Engineering Dividends
Slide 22: Consistent returns to Shareholders
Dividends Consistent returns to Shareholders Together with 4.0 cents paid in 2Q2024 June 2024, 8.0 cents declared from Interim Dividend 1H2024 results 4.0 cents Payment date: 5 September 2024 per ordinary share 22 |
Slide 23: Outlook
ST Engineering Outlook
Slide 24: Group President & CEO's Message
Outlook Group President & CEO’s Message “ We posted strong revenue and profit growth in the first half of 2024. Despite continuing challenges in the operating environment, we see opportunities in aerospace, smart city, defence and public security industry domains. Given these opportunities, and supp
Slide 25: Segment Highlights
ST Engineering Segment Highlights
Slide 26: Group Revenue
Segment Highlights Group Revenue $'m 1H2024 1H2023 Change Commercial Aerospace 2,231 1,856 ▲ 20% Defence & Public Security 2,372 2,117 ▲12% Urban Solutions & Satcom 918 891 ▲ 3% Group 5,520 4,863 ▲ 14% 26 |
Slide 27: Group EBIT
Segment Highlights Group EBIT $'m 1H2024 1H2023 Change Commercial Aerospace 190 178 ▲ 7% Defence & Public Security 324 301 ▲ 8% Urban Solutions & Satcom 9 (34) NM Group 523 444 ▲ 18% 27 |
Slide 28: Commercial Aerospace
ST Engineering Commercial Aerospace
Slide 29: Commercial Aerospace
Segment Highlights Commercial Aerospace $'m 1H2024 1H2023 Change Remarks Strong growth in Aerospace MRO Revenue 2,231 1,856 ▲ 20% and Aerostructures & Systems Contribution from higher revenue, partially offset by lower contribution EBIT 190 178 ▲ 7% from significantly lower aircraft sales, project t
Slide 30: Commercial Aerospace Sub-segment Highlights
Segment Highlights Commercial Aerospace Sub-segment Highlights Aerostructures Aerospace MRO Aviation Asset Management & Systems Revenue, S$’m Revenue, S$’m AUM R1, USD$’m +32% +20% +17% 1,148 1,140 2,297 951 1,964 868 1H2023 1H2024 1H2023 1H2024 1H2023 1H2024 R1 AUM: Asset Under Management, includin
Slide 31: Defence & Public Security
ST Engineering Defence & Public Security
Slide 32: Defence & Public Security
Segment Highlights Defence & Public Security $m 1H2024 1H2023 Change Remarks Revenue growth contributed by Revenue 2,372 2,117 ▲12% all subsegments EBIT 324 301 ▲ 8% Contribution from higher revenue 32 |
Slide 33: Defence & Public Security Sub-segment Highlights
Segment Highlights Defence & Public Security Sub-segment Highlights Digital Systems & Defence Aerospace Land Systems Marine Cyber Revenue, S$’m Revenue, S$’m Revenue, S$’m Revenue, S$’m +16% +5% 980 810 +19% 848 +5% 373 770 258 314 245 1H2023 1H2024 1H2023 1H2024 1H2023 1H2024 1H2023 1H2024 33 | Not
Slide 34: Urban Solutions & Satcom
ST Engineering Urban Solutions & Satcom
Slide 35: Urban Solutions & Satcom
Segment Highlights Urban Solutions & Satcom $m 1H2024 1H2023 Change Remarks Higher revenue from Urban Solutions, with Revenue 918 891 ▲ 3% contribution from TransCore, partially offset by lower revenue from Satcom Strong Urban Solutions EBIT performance and absence of one-off SatixFy divestment loss
Slide 36: Urban Solutions & Satcom Sub-segment Highlights
Segment Highlights Urban Solutions & Satcom Sub-segment Highlights Urban Solutions Satcom Revenue, S$’m Revenue, S$’m +9% -20% 805 165 741 132 1H2023 1H2024 1H2023 1H2024 Note: 36 | Revenue include inter-segment and inter-subsegment sales
Slide 37: Appendix
ST Engineering Appendix
Slide 38: Balance Sheet
Appendix Balance Sheet $'m 30 Jun 2024 31 Dec 2023 Property, plant & equipment 2,067 2,076 Right-of-use assets 626 651 Intangible assets 5,064 4,958 Other non-current assets 1,199 1,064 Current assets 6,924 6,630 Total assets 15,880 15,379 Current liabilities 8,224 7,322 Non-current liabilities 4,80
Slide 39: Statement of Cash Flows
Appendix Statement of Cash Flows $'m 1H2024 1H2023 Net cash from/(used in) Operating activities 809 857 Investing activities (196) (252) Financing activities (537) (814) Net change in CCE* 76 (209) CCE at beginning of the period 353 602 Exchange difference 1 (6) CCE at the end of the period 430 387
Slide 40: Connect with us
Connect with us www.stengg.com