41 slides from Singapore Technologies Engineering's earnings presentation, Feb 25, 2022
Slide 1: Financial Year 2021 Results
Financial Year 2021 Results 25 February 2022
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. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a res
Slide 3: Agenda
Agenda • Group Highlights • Outlook • Segment Highlights All figures are denominated in S$m unless indicated otherwise; amounts may not add up due to rounding.
Slide 4: Group Highlights
ST Engineering Group Highlights
Slide 5: Group Highlights
Group Highlights 2H2021 FY2021 Revenue EBIT Revenue EBIT 4,042 319 7,693 674 +13% y-o-y +13% y-o-y +7.5% y-o-y +13% y-o-y PBT Net Profit PBT Net Profit 298 274 638 571 +20% y-o-y +4% y-o-y +19% y-o-y +9% y-o-y Order book as at 31 Dec 2021: $19.3b; about $6.6b to be delivered in 2022 5 |
Slide 6: FY2021 revenue growth from all segments
Group Highlights FY2021 revenue growth from all segments (+7.5%) (+4pp) 7,693 (+1pp) (+2pp) 7,158 FY2020 CA USS DPS FY2021 CA: Commercial Aerospace (1Q2020 was before COVID USS: Urban Solutions & Satcom impact) DPS: Defence & Public Security, 6 | and Others
Slide 7: Recovery in Commercial Aerospace business
Group Highlights Recovery in Commercial Aerospace business Commercial Aerospace • Continued recovery of revenue, segment revenue despite ongoing COVID +23% challenges +27% 781 -29% +20% 722 • Demand for P2F continues to 607 588 be strong 552 485 584 Before 478 - A330P2F slots booked through COVID im
Slide 8: Revenue Breakdown
Group Highlights Group Revenue Breakdown FY2021 Revenue FY2021 Revenue FY2021 Revenue S$7.7b by typeR2 (S$b) by location of customers Commercial Defence 5.6 4.8 Asia U.S. 4.6 DPSR1 53% 58% 20% CA 2.9 2.6 Europe Others 32% 2.3 USS 15% 16% 6% R1: DPS includes defence, public safety and security, FY201
Slide 9: EBIT growth more than offset lower government support
Group Highlights EBIT growth more than offset lower Excluding government support, EBIT government support grew by 93% EBIT EBIT excluding govt. support (+13%) (+93%) (+20pp) 674 596 (-25pp) 469 (+1pp) (+17pp) 243 FY2020 Lower CA* USS* DPS* FY2021 govt. FY2020 FY2021 support Note: 9 | * Excluding gov
Slide 10: 9% net profit growth despite pandemic challenges
Group Highlights 9% net profit growth despite pandemic challenges (+15pp) (-5pp) (+9%) 571 522 FY2020 EBIT Tax & FY2021 others R1 R1: Due mainly to higher tax expense arising from higher profit before tax and lower Job Support Scheme 10 | grant which is not taxable, partially offset by lower finance
Slide 11: Impact of government support on segments' FY2021 EBIT
Group Highlights Impact of government support on segments’ FY2021 EBIT CA EBIT USS EBIT DPS EBIT FY2020 Govt. EBIT* FY2021 FY2020 Govt. M&A EBIT* FY2021 FY2020 Govt. EBIT* FY2021 support support Transactn. support expenses Note: 11 | * Excluding govt. support and M&A transaction expenses as applicab
Slide 12: Cost savings and partial business recovery more than offset reduction in govt. support
Group Highlights Cost savings and partial business recovery more than offset reduction in govt. support ~ + $230m ~$350m ~ - $150m* Notes: Above figures denote impact before tax Cost savings and partial business recovery are net of investment to fund future growth areas 12 | * FY2021 government supp
Slide 13: Robust order book
Group Highlights Robust order book Order book ($’b) • Order book as at Dec 19.3 2021 of $19.3b. • Strong order book 15.3 15.4 provides visibility of 13.2 pipeline revenue in the coming periods. Dec 2018 Dec 2019 Dec 2020 Dec 2021 • Total new contract wins (Covid) of the Group for the year Order book
Slide 14: Balance sheet remains strong; diverse funding sources
Group Highlights Balance sheet Diverse funding remains strong sources Credit rating US$3b post-TransCore announcement U.S. Commercial Paper programme • Moody’s: Aaa (outlook negative)1 • S&P: AAA (credit watch S$5b negative)1 Multicurrency Medium Term Note programme Note: 1 Moody’s and S&P published
Slide 15: Statement of Financial Position
Group Highlights Statement of Financial Position S#039;m 31 Dec 2021 31 Dec 2020 Property, plant & equipment 1,794 1,757 Right-of-use assets 559 539 Intangible assets 1,993 1,946 Other non-current assets 814 731 Current assets 5,356 4,991 Total assets 10,516 9,964 Current liabilities 4,680 4,289 Non-cu
Slide 16: Statement of Cash Flows
Group Highlights Statement of Cash Flows S#039;m FY2021 FY2020 Net cash from/(used in) Operating activities 1,114 1,533 Investing activities (414) (295) Financing activities (615) (959) Net increase in CCE * 86 279 CCE at beginning of the year 729 452 Exchange difference 1 (2) CCE at end of the year 81
Slide 17: FY2021 Final Dividend of 10.0 Cents per Share
Group Highlights FY2021 Final Dividend of 10.0 Cents per Share • Final dividend of 10.0 cents per ordinary share, subject to shareholders’ approval at AGM. Dividend per Ordinary Share • Total dividend of 15.0 cents, including interim Final Final Final dividend of 5.0 cents. 10.0¢ 10.0¢ 10.0¢ Interim
Slide 18: Dividend Policy
Group Highlights Dividend Policy • On 24th February 2022, the Board approved a dividend policy to declare dividends every quarter instead of twice a year previously. • For FY2022, the plan is for dividends to be paid four times a year, at 4.0 cents per share each time resulting in total dividends of
Slide 19: Outlook
ST Engineering Outlook
Slide 20: Group President & CEO's Message
Outlook Group President & CEO’s Message “In 2021, we delivered a good set of results as all business segments registered growth despite persisting pandemic challenges. This reflects the underlying strengths of our businesses and our people. The proposed TransCore acquisition demonstrates our readine
Slide 21: Summary
Group Highlights Summary • Steady revenue growth of 7.5% to $7.7b, amidst a challenging COVID environment. • EBIT grew by 13% to $674m. Excluding government support, EBIT grew by 93% to $469m. • Cost savings and partial business recovery more than offset reduction in government support in 2021 of $1
Slide 22: Segment Highlights
ST Engineering Segment Highlights
Slide 23: Segment Revenue
Segment Highlights Segment Revenue S#039;m 2H2021 2H2020 Change FY2021 FY2020 Change Commercial Aerospace 1,329 1,066 +25% 2,465 2,332 +6% Urban Solutions & Satcom 663 630 +5% 1,191 1,101 +8% Defence & Public Security 2,051 1,891 +8% 4,038 3,725 +8% Group 4,042 3,586 +13% 7,693 7,158 +7.5% 23 |
Slide 24: Segment EBIT
Segment Highlights Segment EBIT S#039;m 2H2021 2H2020 Change FY2021 FY2020 Change Commercial Aerospace 79 6 >500% 182 81 +125% Urban Solutions & Satcom 15 52 -71% 26 31 -18% Defence & Public Security 224 224 +0.3% 466 484 -4% Group 319 282 +13% 674 596 +13% 24 |
Slide 25: $3.2b new contracts in 4Q2021
Segment Highlights $3.2b new contracts in 4Q2021 4Q2021 Key Highlights Commercial $1.0b • Multi-year component MBH™ contracts from Virgin Australia Airlines and China Airlines • Airframe maintenance contract extension with a Japanese airline, heavy maintenance for Aerospace and cabin refresh modific
Slide 26: Commercial Aerospace
ST Engineering Commercial Aerospace
Slide 27: Commercial Aerospace
Segment Highlights Commercial Aerospace S#039;m FY2021 FY2020 Change • Revenue increased notwithstanding a strong 1Q2020 prior to impact of Revenue 2,465 2,332 6% COVID-19 being felt • Increase attributable to Aerostructures & Systems, while Aerospace MRO continued to be impacted by a subdued aviation
Slide 28: Commercial Aerospace sub-segment highlights – FY2021
Segment Highlights Commercial Aerospace sub-segment highlights – FY2021 Aerostructures Aviation Asset Aerospace MRO & Systems Management Revenue, S$’m Revenue, S$’m AUM, US$’m (Dec 2021) 1,201 -4% 1,054 1,147 +20% 1,392 1,159 (Dec 2020) +30% 813 813 742 (Dec 2020) (Dec 2019) FY2020 FY2021 FY2020 FY2
Slide 29: Commercial Aerospace
Segment Highlights Commercial Aerospace S#039;m 2H2021 2H2020 Change Revenue 1,329 1,066 25% • Revenue increase driven by continued business recovery EBIT 79 6 >500% • Significant cost savings and partial business recovery more than offset reduction in government support of $51m 29 |
Slide 30: Commercial Aerospace sub-segment highlights – 2H2021
Segment Highlights Commercial Aerospace sub-segment highlights – 2H2021 Aerostructures Aviation Asset Aerospace MRO & Systems Management Revenue, S$’m Revenue, S$’m AUM, US$’m (Dec 2021) 1,054 +50% 773 (Jun 2021) +10% 596 900 544 517 +30% 861 (Jun 2020) 813 (Dec 2020) 2H2020 2H2021 2H2020 2H2021 2H2
Slide 31: Urban Solutions & Satcom
ST Engineering Urban Solutions & Satcom
Slide 32: Urban Solutions & Satcom
Segment Highlights Urban Solutions & Satcom S#039;m FY2021 FY2020 Change • Revenue growth from higher Smart City Revenue 1,191 1,101 8% project deliveries • Partially offset by impact of global semiconductor chip shortages on Smart City project and Satcom product deliveries EBIT 26 31 18% • Due mainly
Slide 33: Urban Solutions & Satcom sub-segment highlights – FY2021
Segment Highlights Urban Solutions & Satcom sub-segment highlights – FY2021 Urban Solutions Satcom Revenue, S$’m Revenue, S$’m +17% 802 +2% 451 686 443 FY2020 FY2021 FY2020 FY2021 Note: 33 | - Revenue includes inter-segment and inter-subsegment sales
Slide 34: Urban Solutions & Satcom
Segment Highlights Urban Solutions & Satcom S#039;m 2H2021 2H2020 Change Revenue 663 630 5% • Revenue growth from higher Smart City project deliveries • Partially offset by impact of semi- conductor chip shortages EBIT 15 52 71% • Due mainly to lower government support, M&A transaction expenses for Tra
Slide 35: Urban Solutions & Satcom sub-segment highlights – 2H2021
Segment Highlights Urban Solutions & Satcom sub-segment highlights – 2H2021 Urban Solutions Satcom Revenue, S$’m Revenue, S$’m +17% 454 387 256 -4% 247 FY2020 FY2021 FY2020 FY2021 Note: 35 | - Revenue includes inter-segment and inter-subsegment sales
Slide 36: Defence & Public Security
ST Engineering Defence & Public Security
Slide 37: Defence & Public Security
Segment Highlights Defence & Public Security S#039;m FY2021 FY2020 Change Revenue 4,038 3,725 8% • Revenue growth from all sub- segments EBIT 466 484 4% • Due mainly to lower government support • Substantially offset by contribution from higher revenue and cost savings 37 |
Slide 38: Defence & Public Security sub-segment highlights – FY2021
Segment Highlights Defence & Public Security sub-segment highlights – FY2021 Digital Systems Defence Marine Land Systems & Cyber Aerospace Revenue, S$’m Revenue, S$’m Revenue, S$’m Revenue, S$’m +7% 1,444 +6% 1,456 1,347 1,377 +14% 813 711 +8% 401 433 FY2020 FY2021 FY2020 FY2021 FY2020 FY2021 FY2020
Slide 39: Defence & Public Security
Segment Highlights Defence & Public Security S#039;m 2H2021 2H2020 Change Revenue 2,051 1,891 8% • Higher revenue from all sub-segments EBIT 224 224 0.3% • Due mainly to contribution from higher revenue and cost savings initiatives • Largely offset by lower government support of $79m 39 |
Slide 40: Defence & Public Security sub-segment highlights – 2H2021
Segment Highlights Defence & Public Security sub-segment highlights – 2H2021 Digital Systems Defence Marine Land Systems & Cyber Aerospace Revenue, S$’m Revenue, S$’m Revenue, S$’m Revenue, S$’m +1% 727 +3% 737 717 716 +30% 423 326 +7% 206 220 2H2020 2H2021 2H2020 2H2021 2H2020 2H2021 2H2020 2H2021
Slide 41: Thank you
£"6 ST Engineering Thank you