Singapore Technologies Engineering Ltd · SGX:S63
Singapore Technologies Engineering — Merger or Acquisition (October 2021)
24 slides from Singapore Technologies Engineering's merger presentation, Oct 3, 2021
Slide 1: ST Engineering to Acquire TransCore
ST Engineering to Acquire TransCore Creating a Smart Mobility Market Leader and Accelerating Smart City Growth 3 October 2021 1 |
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Singapore Technologies Engineering Ltd (the “Company”) based on information and data which the Company believes to be reliable, including information and data sourced from TransCore Holdings, Inc., industry publications and other publicly available i
Slide 3: Agenda
Agenda • Transaction Highlights • Overview of TransCore • Industry Trends and Growth • Acquisition Rationale • Summary 3 |
Slide 4: Transaction Highlights
Transaction Highlights Entered into an agreement to acquire 100% of TransCore Transaction TransCore is a market leader in electronic toll collection, congestion pricing, Intelligent Description Transportation Systems, back office solutions and RFID products Consideration of US$2.68b (~ S$3.62b1), on
Slide 5: Unique acquisition opportunity - strong strategic fit with Smart Mobility offerings
Unique acquisition opportunity - strong strategic fit with Smart Mobility offerings Lines of Business Services C3 & Smart Asset Management Growth Areas Rail and Bus Road Traffic Metro System System Electronics Management Autonomous Smart Parking Fleet Congestion Digital Mobility Vehicles Telematics
Slide 6: Overview of TransCore
ys 91 Engineering Overview of TransCore
Slide 7: Complete suite of road transportation solutions
Overview of TransCore Complete suite of road transportation solutions Tolling Comprehensive electronic tolling Systems solutions Digital Lane System Congestion Toll collection solutions designed to Pricing reduce urban congestion Congestion Pricing Back Office Systems, software and services for Solu
Slide 8: U.S. market leader in Electronic Toll Collection solutions
Overview of TransCore U.S. market leader in Electronic Toll Collection (ETC) solutions and strong position in Intelligent Transportation US$ 565m 1 Systems (ITS) Revenue Outstanding track record of project execution, customer retention and renewal – 80 years of history US$ 143m 1 Strong management t
Slide 9: Market leader with strong track record in Electronic Toll Collection
Overview of TransCore Market leader with strong track record in Electronic Toll Collection 15k 10b US$7b lanes deployed in U.S. transactions toll revenue over TransCore’s history annually processed annually 11 of 15 3 9m 100m largest U.S. toll 24/7/365 maintenance accounts RFID1 agencies served moni
Slide 10: Backed by strong, long-standing customer relationships
Overview of TransCore Backed by strong, long-standing customer relationships, excellent project execution, customer retention and renewal Customers High recurring1 / re-occurring2 business > 50% High contract renewal rate 95% 10 | 1 Operations & Maintenance business 2 Repeat RFID product sales to cu
Slide 11: TransCore's capabilities encompass the end-to-end tolling systems value chain
Overview of TransCore TransCore’s capabilities encompass the end-to-end tolling systems value chain A high-speed camera Gantry takes a picture of the Overhead electronic mounted licence plates of sensor scans with sensors vehicles without approaching vehicle transponder and bills owners via mail Rad
Slide 12: Industry Trends and Growth
Industry Trends and Growth 12 |
Slide 13: ETC and ITS market expected to reach US$15b by 2030
Participating in Smart Mobility Trends Market for Electronic Toll Collection (ETC) and Intelligent Transportation Systems (ITS) is expected to reach US$15b by 2030 Global Market Size (US$b) North America ~ US$4b in 2030: 2nd fastest growing market ETC +7% CAGR • 6% CAGR,~US$2.5b in 2030 (2021 - 2030
Slide 14: TransCore is well-positioned for congestion pricing projects
Participating in Smart Mobility Trends – Congestion Pricing in the U.S. TransCore is well-positioned for congestion pricing projects Drivers of Congestion Pricing growth in the U.S. 1. Generate funds to improve transportation infrastructure Seattle Portland 2. Reduce pollution, enhance safety and su
Slide 15: Acquisition Rationale
ys 91 Engineering Acquisition Rationale
Slide 16: Acquisition accelerates growth in Smart City business
Acquisition Rationale Acquisition accelerates growth in Smart City business Waste Combined portfolio positions Energy Management and Waster ST Engineering as a Smart Mobility Rail market leader Cybersecurity Enhance offerings through a comprehensive suite of Smart Mobility products Public Road Secur
Slide 17: Driving Sustainability in Smart Mobility
Sustainability Driving Sustainability in Smart Mobility Reduce congestion and enable seamless, efficient journeys (End-to-end tolling solutions) Facilitate green / low emission zones (Congestion Pricing) Expand sustainable solutions to other geographies (Tolling to Southeast Asia, more ITS offerings
Slide 18: Combining TransCore's strength in the U.S. and ST Engineering's presence in APAC
Synergies Combining TransCore’s strength in the U.S. and ST Engineering’s presence in APAC to create a Smart Mobility market leader Leader in U.S. for Completed 60 ITS projects tolling solutions in more than 20 cities Bring tolling solutions to SE Asia Bring ITS solutions to North America States ser
Slide 19: Develop next-bound tolling technologies and emerging applications
Synergies Develop next-bound tolling technologies and emerging applications - leveraging ST Engineering’s strength in technology and innovation Leverage ST Engineering scale, technology & Validation / Transaction Customer Identification engineering core Enforcement Management Interface Emerging Appl
Slide 20: TransCore has strong financials
TransCore has strong financials US$‘m 1,200 EV1 / EBITDA2 multiple 16.2x 565 25% Cash positive from first year EBITDA margin Earnings accretive from second year 143 Dividend payout capacity remains strong Backlog Revenue EBITDA @ 31 July FY ended Dec 2020 2021 (audited) 1 Enterprise Value (EV) is pu
Slide 21: Comparable Company Valuation Multiples
Comparable Company Valuation Multiples % Transaction Year Acquirer Target Target Description Acquired EV (US$m) EV / EBITDA Transactions Electronic toll payment systems in Minority 2020 1,238 18.0x Europe 49% Global defence and transportation WholeCo Transport 2021 100% 2,990 solutions 16.9x 19.3x1
Slide 22: Creating a Smart Mobility market leader, accelerating growth in Smart City business
Summary Creating a Smart Mobility market leader, accelerating growth in Smart City business • Strengthen mobility product portfolio • Expand Drive sustainable mobility global reach in Smart City Capturing growth at the intersection • Enable seamless and • Generate of urbanisation, efficient journeys
Slide 23: Clear path to close
Clear path to close Shareholders’ approval • ST Engineering to convene an Extraordinary Expect to complete General Meeting • Majority shareholder - Temasek agreed to vote in transaction by end favour of transaction of 1Q2022 Regulatory approvals • CFIUS Successfully obtained all CFIUS approvals fo
Slide 24: Thank You
£"6 ST Engineering Thank You
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