Singapore Technologies Engineering Ltd · SGX:S63
Singapore Technologies Engineering — Investor Day (March 2025)
19 slides from Singapore Technologies Engineering's investor day presentation, Mar 18, 2025
Slide 1: Journey to Growth: Enhancing Shareholder Value
2 0 2 5 I N V E S T O R D AY Journey to Growth Enhancing Shareholder Value Cedric Foo Group Chief Financial 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: Progress since 2021 Investor Day
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 4: 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 5: Group Revenue growth path
2029 Targets Group Revenue growth path $11.3b (FY2024) Grow Core Business Key Growth Drivers $17b (FY2029) • Geopolitical tensions - tailwind for defence business • Defence • Delivery of aircraft / engines • Digital Business • Urbanisation and digitalisation • Premier MRO Engines 5 | • Smart Mobilit
Slide 6: Net Profit growth path
2029 Targets Net Profit growth path Higher revenue; Scale effects Improved product and project mix Group Net Profit Procurement and productivity savings CAGR to exceed Group Revenue Reduced interest expense CAGR by up to 5 percentage points Reduced amortisation of intangibles 6 | ST Engineering 2025
Slide 7: Inflation vs Procurement and productivity savings
2029 Targets Inflation vs Procurement and productivity savings Cost ($) Pass-through to customers Procurement Inflation + Productivity savings = Cumulative Savings* >$1b 7 | ST Engineering 2025 Investor Day * 2025 to 2029
Slide 8: Highlights of cost savings initiatives
2029 Targets Highlights of cost savings initiatives • Inventory right • “Single source of truth” sizing, DIO Inventory/ Enterprise • AI-enabled integrated • Warehouse Warehousing Resource platform management Planning optimisation • New source of Offshore • Strategic suppliers talent pool Competency
Slide 9: Continual portfolio management
Capital Management Continual portfolio management - Improve focus and quality of earnings Divestments / Cessations 16 divestments since 2016 Acquisitions 5 acquisitions since 2016 2016 2024 2025 & Beyond 9 | ST Engineering 2025 Investor Day
Slide 10: Aviation Fund Structure
Capital Management Aviation Fund Structure - New capital sources to grow AUM to US$3.5b by 2029 and capture synergies New On balance sheet capital Aviation Fund Structure Achieving asset-light • Asset-heavy AUM growth with agility • Asset-light • High initial capital • Low initial capital outlay out
Slide 11: Source and Use of Capital
Capital Management Source and Use of Capital - Maximising sources and optimising use of capital Source of Capital Use of Capital Operating Cashflow Operations • Higher revenue & EBITDA • Interest expenses • Net working capital improvement • Replacement Capex Portfolio Management Dividends • Capital
Slide 12: Dividend Plan for FY2025
Capital Management Dividend Plan for FY2025 • For FY2024, proposed total dividend is 17.0 cents per share. Includes final dividend of 5.0 cents per share, subject to shareholder approval at the 2025 AGM on 24 April 2025. • For FY2025, given current robust retained earnings and a strong five-year out
Slide 13: Dividend Policy – Effective for FY2026 and onwards
Capital Management Dividend Policy – Effective for FY2026 and onwards The Company is targeting further growth in revenue, operating cash flow and net profit with an objective to improve total shareholders’ return (TSR). It intends to re-invest for growth while rewarding shareholders with dividends a
Slide 14: Illustration of new Dividend Policy
Capital Management Illustration of new Dividend Policy (As an example of year-on-year net profit increase) Year-on-year incremental +100 ⅓ Incremental Net Profit dividend $33m* 1 cent $67m per share Year 1 dividend 2/3 Reinvestment for growth Year 2 dividend Year 1 Year 2 Net Profit ($’m) 14 | ST En
Slide 15: Risk Management and Governance
Risk Management Risk Management and Governance - Effective strategies to manage key risks Global Risk Management Framework highlights Cybersecurity Geopolitics Supply Chain Financial Cyber business Real-time monitoring Comprehensive Capital Structure capabilities risk monitoring optimisation Cyber S
Slide 16: Strong foundation – Off to a good start
Summary Strong foundation – Off to a good start Track record of performance | Robust order book Future revenue visibility Revenue ($’b) Net Profit ($’m) Order Book* ($’b) 2x-3x GDP growth rate In tandem Doubled 11.3 702 28.5 522 7.2 14.4 2020 2024 2020 2024 2020 2024 16 | ST Engineering 2025 Investo
Slide 17: Journey to yield cum growth
Journey to Yield cum yield cum growth growth stock Yield stock 17 | ST Engineering 2025 Investor Day
Slide 18: 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 19: Thank you
$'¢ ST Engineering Thank you
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