Singapore Technologies Engineering Ltd · SGX:S63
Singapore Technologies Engineering — Shareholder Meeting (April 2023)
24 slides from Singapore Technologies Engineering's shareholder meeting presentation, Apr 20, 2023
Slide 1: 26th Annual General Meeting
26th Annual General Meeting Presentation by Vincent Chong Group President & Chief Executive Officer 20 April 2023
Slide 2: Our Aspiration and Corporate Purpose
Aspiration & Corporate Purpose Our Aspiration and Corporate Purpose Our Aspiration Global Technology, Defence and Engineering Powerhouse Our Corporate Purpose Harness technology and innovation to enable a more secure and sustainable world 2 |
Slide 3: Financial Year 2022 Highlights
Financial Year 2022 Highlights 3 |
Slide 4: Strong underlying performance against challenging environment
2022 In Review – Financial Overview Strong underlying performance against challenging environment Revenue ($b) EBIT ($m) Net Profit ($m) 735 571 9.0 2 535 674 522 2 596 177 205 7.7 340 353 733 533 7.2 469 394 243 182 2020 2021 2022 2020 2021 2022 2020 2021 2022 4 | COVID-19 related Govt Support
Slide 5: Revenue growth from all segments
2022 In Review – Financial Overview Revenue growth from all segments FY2022 Revenue CA CA $3.0b $2.5b DPS 2021 $4.3b 2022 DPS $4.0b $7.7b +17% $9.0b USS $1.2b USS $1.8b Amounts may not add to totals shown due to rounding 5 | Legend: CA = Commercial Aerospace USS = Urban Solutions & Satcom DPS = Defe
Slide 6: Strong order book provides revenue visibility
2022 In Review – Financial Overview Strong order book provides revenue visibility Order Book ($b) • $13.1b new 23.0 +31% contract wins 1.8 • Order book 1.0 of $23b as at 31 Dec 2022 14.4 17.5 • ~$7.2b to be delivered in 2023 Dec-20 Dec-21 Dec-22 US Marine (Divested in Nov 22) 6 |
Slide 7: Productivity metrics trending well
2022 In Review – Financial Overview Productivity metrics trending well Opex/revenue % Staff costs#/revenue % 13.5 40 13.5 13.0 35 12.5 32.5 12.0 12.1 30.5 12.0 11.7* 30 28.9 11.5 11.0 25 2020 2021 2022 2020 2021 2022 * Excluding M&A transaction expenses # Staff costs excluding govt. support 7 |
Slide 8: Delivered on our Focus Areas
Strengthened global presence Delivered on our Continued to streamline portfolio Integrated sustainability as Focus Areas our core Continued to drive technology & innovation 8 |
Slide 9: Welcomed TransCore to ST Engineering
2022 In Review – Strengthened Global Presence Welcomed TransCore to ST Engineering North America Smart Mobility Market Leader in Electronic Toll Collection Accelerates Smart City growth Strong leadership team Strengthened U.S. presence ~US$1.5b contract wins Cash flow positive in year 1 9 |
Slide 10: Commercial Aerospace continued to expand capacity to emerge stronger post COVID-19
2022 In Review – Strengthened Global Presence Commercial Aerospace continued to expand capacity to emerge stronger post COVID-19 • Redelivered world’s first A320P2F1 • P2F conversion fully booked through 2026 • New modification sites in Shanghai and Mobile, Alabama • Collaborations with third-party
Slide 11: Urban Solutions & Satcom attained successes in the global market despite headwinds
2022 In Review – Strengthened Global Presence Urban Solutions & Satcom attained successes in the global market despite headwinds • Mobility rail contracts in Canada, Singapore & various cities in Asia • Smart street lighting solutions in the Americas • Satcom ground systems for regional player acros
Slide 12: Satcom industry undergoing transformation
2022 In Review Satcom industry undergoing transformation • Industry fast evolving: o LEO & VHT3 satellites o Cloud & virtualisation o Satellite operator consolidation o 5G network convergence • Near-term headwinds: o Weakness in Satcom business performance o Continued R&D investments required o Inte
Slide 13: Defence & Public Security continued momentum of global expansion
2022 In Review – Strengthened Global Presence Defence & Public Security continued momentum of global expansion • Significant international defence contract wins (>$300m) in the Middle East • Training & simulation solutions to Australian Army & Pakistan Air Force • Expanded digital business presence
Slide 14: Streamlining our Portfolio
2022 In Review – Continued to Streamline Portfolio Streamlining Cessations / Divestments Pursue growth opps. in our Portfolio Acquisitions Smart Cities Strengthen core Specialty Vehicles business Acquired market leader in tolling (China) & channel network in the US Aircraft Interiors US Marine Pilot
Slide 15: Progressed on our sustainability ambitions
2022 In Review – Integrated Sustainability as our Core Progressed on our sustainability ambitions Enhanced reporting framework Defined new sustainability- linked growth areas Enabling Our Customers Hydrogen Sustainable Developed Composites pathway to halve GHG Carbon emissions by Services 2030 Compl
Slide 16: Our Innovation Approach
2022 In Review – Continued to Drive Technology & Innovation Drive Innovation Culture Internal Innovation Programmes Our Deepen Capability Building Innovation Business-driven Core Engineering Strategic Technology Product Development Capabilities Centres Approach Broaden Outreach to Leverage External
Slide 17: Giving back to the community
2022 In Review – Community Outreach Giving back to the community Our community investments and volunteerism efforts are guided by three focus areas: In 2022, Improving lives we contributed $2.9m through charitable gifts Enriching lives through education to the community Touching lives through engine
Slide 18: Strong balance sheet provides capacity for growth, supplemented by diverse funding sources
2022 In Review – Well Positioned for Growth Strong balance sheet provides capacity for growth, supplemented by diverse funding sources Balance sheet remains strong Diverse funding sources Credit rating US$3b S$5b post-TransCore transaction U.S. Commercial Global Medium Term • Moody’s: Aaa (negative
Slide 19: Reduced borrowings & balanced debt profile
2022 In Review – Well Positioned for Growth Reduced borrowings & balanced debt profile $6.5b $5.9b • Weighted average borrowing cost for FY2022 – 2.4% Floating Rates 47% • Borrowings at $5.9b as at 31 Mar 23 43% • Percentage of fixed rate borrowings increased • Plan to issue US$500m of fixed rate de
Slide 20: Long-term sustainable value creation for shareholders
2022 In Review – Commitment to Shareholders Long-term sustainable value creation for shareholders Capacity to support Continuous cost Invest to Capacity for growth plans productivity achieve plans dividends Strong underlying Invest in core Continuous Strong capacity for performance businesses improv
Slide 21: Opportunities from re-opening but near-term headwinds persist
Looking Ahead – 2023 Macro Outlook Opportunities from re-opening but near-term headwinds persist Opportunities • Recovery of Commercial Aerospace • Sustainability, Smart Headwinds Cities & Digital • Geopolitical tensions • Defence & Security • Persistent inflation • Supply chain disruption & logisti
Slide 22: Key milestones in 1Q23
Looking Ahead – 2023 Highlights Key milestones in 1Q23 1st provider in Asia to join Airframe MRO JV Kaohsiung MRT Red Multi-Role Combat the LEAP MRO network in Hubei with Line rail contract Vessels (MRCVs) under a CBSA5 agreement SF Airlines worth over $430m contract by MINDEF 22 | 5 CBSA = CFM Bran
Slide 23: On track towards 2026 targets
Looking Ahead – Recap Ambitions On track towards 2026 targets Annual revenue to grow at 2 to 3 times Net profits to grow in global GDP growth rate to >$11b tandem with revenue Sustainability-linked revenue to grow to >$3b Commercial Strengthen Core Aerospace to Businesses achieve >$3.5b in Expand re
Slide 24: Thank you
£"6 ST Engineering Thank you
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