Singapore Technologies Engineering Ltd · SGX:S63
Singapore Technologies Engineering — Investor Day (March 2025)
113 slides from Singapore Technologies Engineering's investor day presentation, Mar 18, 2025
Slide 1: Journey to Growth, Robust Returns
2 0 2 5 I N V E S T O R D AY Journey to Growth Robust Returns Vincent Chong Group President & Chief Executive 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: 2021 Investor Day Recap
2021 Investor Day Recap 2026 targets Annual revenue to grow at 2 to 3 times global Net profits to grow in GDP growth rate to >$11b1 tandem with revenue Sustainability- linked revenue to grow to >$3b Commercial Aerospace to achieve >$3.5b Other Core in revenue Smart City revenue to more Businesses th
Slide 4: Strong performance
Progress since 2021 Investor Day Strong performance Group Revenue ($’b) Net Profit ($’m) Return on Equity (%) 11.3 Covid-19 Govt Support 26.3 >11 571 535 522 2 702 177 23.6 7.2 586 22.8 23.8 533 340 394 22.3 20 182 2020 2024 2026 Target 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Target: Grow
Slide 5: Well on-track to meet 2026 targets
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 >$3.5b in revenue Achieved 03 Smart City revenue to more than d
Slide 6: Sound strategy, strong execution
Progress since 2021 Investor Day Sound strategy, strong execution Strengthened core businesses Pursuing growth opportunities Operationalised customer-centric organisation structure Accelerated growth and capability building through acquisitions Continued to capture synergies and efficiencies 6 | ST
Slide 7: Robust order book, leading indicator of revenue growth
Strong foundation for growth Robust order book, leading indicator of revenue growth Order Book ($’b) 28.5 27.4 23.0 17.5 14.4 2020* 2021* 2022 2023 2024 7 | ST Engineering 2025 Investor Day * Exclude U.S. Marine business divested in 2022
Slide 8: Commercial Aerospace
1 Strengthened core Commercial Aerospace Exceeded Expanding Well positioned Revenue ($’b) 2026 targets hangar capacity for further Continue to growth 17% 4.4 streamline & optimise CAGR 3.9 Key Wins 2026 target 3.5 3.0 +88% Exclusive OEM Airbus Freighter conversion 2.5 solutions - A320 (on top of exi
Slide 9: Commercial Aerospace: Soaring higher
1 Soaring higher Commercial Aerospace Revenue to grow at 2x industry Next Bound Growth growth rate1 to reach $6.0b by 2029 Expand global business in MRO Leverage new engine MRO capability • Aerospace MRO • Aerostructures & Deliver new-gen Nacelle products Systems • Aviation Asset Management Aviation
Slide 10: Scaling Smart City
2 Scaling Smart City Smart City Revenue to grow by 3.5x global GDP Next Bound Growth growth rate to $4.5b1 by 2029 Expand go-to-market in Our Smart City Business Middle East & Asia-Pacific Leverage growth trends in cloud, Smart Smart Smart Digital data centre, AI, cybersecurity Mobility Environment
Slide 11: Smart City – Digital Business
2 Scaling Smart City Smart City – Digital Business Digital Business revenue to more than double by 2029 Growth Drivers | Key Partners Revenue ($’b) >1.3 Cloud & Data Centre 0.6 AI Analytics 2026 target 0.5 0.2 2029 Cybersecurity 2020 2024 Target 11 | ST Engineering 2025 Investor Day
Slide 12: Smart City – Urban Solutions & Satcom
2 Strengthened core Smart City – Urban Solutions & Satcom >70% revenues outside of Singapore Moved up value chain – Mobility Rail Revenue ($’b) 15% Launched next-gen Satcom multi-orbit, CAGR 2.0 1.9 virtualised software-defined platform 1.8 Key Wins +78% 1.2 Mobility Rail 1.1 Toll Collection (Tier 1
Slide 13: Defence & Public Security: Organised for success
3 Strengthened core Defence & Public Security Revenue ($’b) Organised for success Strengthened Grew international market 10% Singapore core presence & partnerships CAGR 4.9 New International >$2.2b Defence Orders (2021-2024) 4.3 4.0 +47% 3.7 Key Wins Key Wins 3.4 Design and 155mm NATO-grade Ammo con
Slide 14: Capturing new opportunities: >US$11b
3 Capturing new opportunities Defence & Public Security Opportunities Accelerated adoption of technology Addressable with short cycle tech capabilities International Defence Market Increased defence spending due >US$11b to heightened geopolitical tensions Over next 5 years Greater demand for collabo
Slide 15: New growth areas
4 Incubating new ventures New growth areas Construction Hydrogen Marine Explore new Robotics Renewables opportunities (Painting & others) • Decentralised • Offshore wind • Technology hydrogen support vessels opportunities that production • Alternative energy complement (Hydrogen-in- powered vessels
Slide 16: Sustainability is core to our business
Moving towards a more sustainable world Sustainability is core to our business Doing Our Part Integrate ESG Reduce GHG Decarbonise into operations emissions supply chain Enabling Our Customers Energy Advanced Additive Smart Energy Transition Materials Manufacturing Building 16 | ST Engineering 2025
Slide 17: Capturing Synergies
Competitive advantage Group Synergies Cross-selling & product synergies Capturing Reusable & dual-use technology modules Synergies Shared resources & shared services 17 | ST Engineering 2025 Investor Day
Slide 18: AI – Enabler and multiplier
AI – Enabler and multiplier Technology & Innovation Products & Solutions Productivity Tools Empowering customers Driving efficiency AI for Critical Operations AI-assisted Operations Next-gen AI-enabled Platforms AI-assisted Coding AI Centre of Autonomous Systems Excellence & Translation AI-assisted
Slide 19: Efficiency & Productivity
Strengthening enablers Efficiency & Productivity Total accumulated cost savings of >$900m from 2020-2024 Strong cost controls – OPEX / Revenue (%) continuous improvement >$1b & productivity initiatives 13.5 12.0 12.1 Centralised 11.4 procurement & supply Cumulative 10.6 chain management Savings 10.6
Slide 20: Dividend Policy
Strengthening enablers – Financial management Dividend Policy Dividend Policy Dividend Plan for FY2025 Effective for FY2026 and onwards • For FY2024, proposed total dividend is 17.0 cents per share. The Company is targeting further growth in Includes final dividend of 5.0 cents per share, subject to
Slide 21: Navigating uncertainties and challenges
Volatile and complex operating environment Navigating uncertainties and challenges Strategy Execution Supply Chain Geopolitical Tensions • Focused strategy • Enhance supply • Agile response to execution and risk chain resilience changes in operating mitigation environment • Continual portfolio manag
Slide 22: Journey to yield cum growth
Journey to yield cum growth Sound Strategy Competitive Strong Execution Differentiators Financial Strength Technology & Proven Growth Innovation Track Record Robust Order Book Strong Talent Bench Strength 22 | ST Engineering 2025 Investor Day
Slide 23: 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 to grow >2.5x CAGR to exceed share to increase global GDP Group Revenue in tandem with growth rate1 to $17b CAGR 2 by up to 5 profit 3
Slide 24: 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 $17b CAGR 2 by up to 5
Slide 25: Journey to Growth: Soaring Higher
2 0 2 5 I N V E S T O R D AY Journey to Growth Soaring Higher Jeffrey Lam Group Chief Operating Officer (Operations Excellence) and President Commercial Aerospace 18 March 2025
Slide 26: Disclaimer
Disclaimer The forward-looking statements in this presentation reflect the Company's current intentions, plans, expectations, assumptions and beliefs about future events as at the date of this presentation. Actual future performance, outcomes and results may differ materially from those expressed in
Slide 27: Story of recovery and growth
Story of recovery and growth Disciplined approach, robust recovery Reviewing 2024 Commercial Aerospace Base Year 2019 (Pre-Covid) 104% Air Passenger 4.4 17% Traffic CAGR Revenue ($’b) 2.3 Air Cargo Traffic 108% New Aircraft Delivery 90% 2020 2021 2022 2023 2024 Sources: International Air Transport A
Slide 28: Broad-based growth
Broad-based growth Exceeded pre-pandemic levels of revenue and EBIT; Achieved 2021 Investor Day targets 2022 2023 2024 2025 2021 By 2026 CA1 Revenue AUM2 > US$2.0b PTF3 Annual Revenue > $3.5b > $0.7b Aerospace MRO Aviation Asset Management Aerostructures & Systems • Comprehensive MRO4 services • 202
Slide 29: Positive steady long-term outlook
Shaping the skies of tomorrow Positive steady long-term outlook 20-Year Traffic* 20-Year Fleet Growth* 10-Year MRO Growth 3.2% CAGR 3.2% CAGR US$153b Passenger Fleet Growth from 2025 to 2034 3.6% CAGR 26 50k 44k US$114b 2.4% 36 Air Passenger Traffic 21 Growth Passenger Fleet Deliveries 3.9% 26 2.6%
Slide 30: Navigating market challenges with agility
Dynamic market development Navigating market challenges with agility Macro Challenges Geopolitical Skilled labour Supply chain Rising costs tensions shortages issues Training & Continuous Partnerships Automation Diversification Innovation recruitment improvement Approach Strategies 6 | ST Engineerin
Slide 31: Steering towards competitive and sustainable growth
Strategic objectives Steering towards competitive and sustainable growth Key Industry Trends 1 Strengthen core and pursue growth New generation Connected data- 2 aircraft drives evolving MRO needs driven approach Invest in new growth areas 3 Normalisation of Record OEM backlog Harness technology and
Slide 32: Well-positioned for growth
Strengthen core and pursue growth Well-positioned for growth Engines Nacelle • 1st LEAP Premier MRO in Asia • New generation aircraft • Comprehensive global solution • Digital Factory and Smart Automation Airframe PTF Conversion Aviation Asset Management • Capacity and • Exclusive OEM solutions for
Slide 33: Reinforce global MRO network with new capabilities and capacity
Strengthen core and pursue growth Reinforce global MRO network with new capabilities and capacity Strengthen presence in major aviation markets Airframe 21 Western Europe • Adding new capacity while optimising network North • Pensacola, U.S. Global America Asia-Pacific Operations • Ezhou, China • Ch
Slide 34: Technology leadership in customer solutions
Strengthen core and pursue growth Technology leadership in customer solutions Nacelle Passenger-to-Freighter Conversion • Fast-growing products with comprehensive aftermarket support • New product opportunities A320 A321 A330-200 A330-300 • Full lifecycle OEM support solution for narrowbody and wide
Slide 35: Growing asset portfolio, capturing synergy
Strengthen core and pursue growth Growing asset portfolio, capturing synergy AUM Growth Extracting Revenue Synergies • Target US$3.5b by 2029 • Leveraging Aviation Fund Structure as new source of capital US$3.5b 8.8% CAGR US$2.3b MRO PTF conversions US$0.8b • Cumulative revenue synergies of >US$100m
Slide 36: Propelling strong growth
Invest in new growth areas Propelling strong growth Premier MRO CFM56 & LEAP Engines MRO market size US$’b Expand >400 shop capacity by 2027 Capacity Maintain CFM56; Grow LEAP LEAP Accelerate Parts Broaden competitive Repair Capabilities parts repair offerings CFM56 Robotics and Optimise process and
Slide 37: Next-generation products for new market segments
Invest in new growth areas Next-generation products for new market segments Cargo UAS1 Wing-in-Ground Marine Craft Unmanned Aircraft Faster than a Ferry, System for Medium Greener than a Seaplane; Range & Payload Safer than a Helicopter Fulfilling Middle / Last- Redefining Maritime Travel; Mile C
Slide 38: Developing composite technology for next generation capabilities
Harness technology and innovation Developing composite technology for next generation capabilities Composite Aerostructures Technology Products Market Growth Advanced Next Generation Products 5.9% CAGR Composites (2023-2033) 10-Year Market Forecast Composite Floor Panels (US$’b) 40 36.5 AI-enabled 3
Slide 39: Continuous improvement and process optimisation
Harness technology and innovation Continuous improvement and process optimisation Process Digitalisation Robotisation AI-enabled Re-engineering 15 | ST Engineering 2025 Investor Day
Slide 40: Double industry growth rate
Soaring higher Double industry growth rate Drive sustainable growth through a Revenue ($’b) balanced portfolio 7% 6.0 Strengthen core CAGR and pursue growth 4.4 Invest in new growth areas Harness technology and innovation 2024 2029 Target Commitment to sustainability 16 | ST Engineering 2025 Investo
Slide 41: Journey to Growth: Scaling Smart City
2 0 2 5 I N V E S T O R D AY Journey to Growth Scaling Smart City Tan Lee Chew Group Chief Commercial Officer (Market Development) and President Smart City & Digital Solutions 18 March 2025
Slide 42: 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 43: Smart City revenue to more than double
2021 Investor Day Recap 2021 Investor Day Energy Smart City Management Waste and revenue to more Water than double* Rail Cybersecurity to $3.5b by 2026 Public Road Security Data Analytics Digital & Artificial Connectivity Autonomous Intelligence & Cloud * Base year 2020 3 | ST Engineering 2025 Inves
Slide 44: Built strong foundation
Delivering on our goals Built strong foundation Smart City Revenue ($’b) 15% • Strengthened Mobility CAGR 2.7 portfolio with TransCore 2.5 2.3 1.8 • Integrated platforms and 1.5 modular solutions • Digital Business more than tripled to $0.6b in 2024 2020 2021 2022 2023 2024 4 | ST Engineering 2025
Slide 45: Winning with integrated & modular solutions
Delivering on our goals Energy Utilities Winning with Management integrated & Rail Cyber- security modular Road Public Security solutions Data Analytics & Artificial Autonomous Intelligence Digital Connectivity & Cloud 5 | ST Engineering 2025 Investor Day
Slide 46: Transforming urban mobility with scalable innovations
Delivering on our goals – Smart Mobility Transforming urban mobility with scalable innovations TransCore Synergistic Wins From Acquisition to Acceleration Successfully Year 1 Year 2 Acquisition Positive Earnings introduced Completed TransCore’s solution Cashflow Accretion into Southeast Asia Southea
Slide 47: Transforming urban mobility with scalable innovations
Delivering on our goals – Smart Mobility Transforming urban mobility with scalable innovations Unlocking Growth Scaling Success Dubai Established Tier 1 Improving travel time Prime1 Status by 20% Taiwan Kaohsiung MRT Scaling Urban Traffic Singapore Total ~$2b rail system contracts Central hub for a
Slide 48: Building sustainable cities with modular solutions
Delivering on our goals – Smart Environment Building sustainable cities with modular solutions Smart City Transformation Digital Intelligence Expanding Smart City Operating System internationally Unlocking data silos through modular IoT solutions and analytics Punggol Digital District Lusail Smart C
Slide 49: Enhancing security with critical infrastructure protection
Delivering on our goals – Smart Security Enhancing security with critical infrastructure protection Digital Security Public & Enterprise Security Expanding our cyber products Powering sensing & response portfolio globally management Deployed in over 22 cities Airports & land borders Transport hubs Z
Slide 50: Macro trends and opportunities
Future growth Macro trends and opportunities Connectivity | Automation Carbon Reduction | Energy | Real-time Decision Optimisation | Green Plans Macro Trends Cybersecurity | Identity Multi-Orbit Satcom | Software- Management | OT/IT1 Resilience defined | Industry Transformation 10 | ST Engineering 2
Slide 51: Scaling Smart City
Future growth Scaling Smart City Smart Smart Smart Digital Mobility Environment Security Business Exceed industry Build sustainable Accelerate Deliver enterprise growth1 cities deployments impact Extending Global Reach Grow double-digit revenue CAGR in international markets Catalyse growth through p
Slide 52: Extending global reach
Future growth Extending global reach Europe Middle East Capitalise on EU Pursue Smart City, Grow double-digit government initiatives in healthcare and security revenue CAGR in secure space systems opportunities Asia-Pacific international markets Develop new markets (2024-2029) e.g. India, Australia
Slide 53: Innovating for smarter cities
Future growth Innovating for smarter cities Standards-based Tech Product Innovation Future proof with standards- Expand opportunities with based technology (Satcom) product innovation (Smart Mobility) Reusable Tech Modules Integrated Approach Accelerate time-to-market Deliver seamless user with reus
Slide 54: Expanding opportunities with product innovations
Future growth – Smart Mobility Expanding opportunities with product innovations Enabling seamless, integrated mobility for cities Cost-down R&D model Standards-based solutions Multi-modal integration Sustainable urban solutions Next-Gen Platform 5G Future Rail SmartPass - Mobility Smart Digital Scre
Slide 55: Delivering seamless experiences with integrated platforms
Future growth – Smart Environment Delivering seamless experiences with integrated platforms Real-Time Asset Protection | AI-Powered Urban Automation | Sustainable City Insights Waste Connectivity Water Real-time Building Energy Street Light Power Decision Making Predictive Analytics Traffic Control
Slide 56: Accelerating deployments – Integrating reusable tech modules
Future growth – Smart Security Accelerating deployments – Integrating reusable tech modules Access Control Next-Gen Security for Smart Cities: Digital Security Airport Security Use Case Multi-modal biometric Identity Management Integrated Security AI Video Surveillance technologies Platform Manageme
Slide 57: Future proofing with standards-based innovation
Future growth – Satcom recovery Future proofing with standards-based innovation Intuition 1.0 Transformation showing early Launched Sep 2024 signs of improvement Operational • On track to deliver savings from Continuous focus Improvement: organisation right sizing on resource Pioneering Industry eff
Slide 58: Blueprint to scaling Smart City
Future growth Blueprint to scaling Smart City Revenue of $4.5b by 2029 18 | ST Engineering 2025 Investor Day
Slide 59: Journey to growth – Scaling Smart City
Future growth Journey to growth – Scaling Smart City Energy Utilities Grow Smart City Management More than double revenue by 3.5x global Digital Business GDP1 growth rate Cyber- revenue to >$1.3b Rail security Public Road Revenue of Security Exceed industry $4.5b Grow double-digit growth2 to lead in
Slide 60: Journey to Growth: Capturing New Opportunities
2 0 2 5 I N V E S T O R D AY Journey to Growth Capturing New Opportunities Ravinder Singh Group Chief Operating Officer (Technology & Innovation) and President Defence & Public Security 18 March 2025
Slide 61: Disclaimer
Disclaimer The forward-looking statements in this presentation reflect the Company's current intentions, plans, expectations, assumptions and beliefs about future events as at the date of this presentation. Actual future performance, outcomes and results may differ materially from those expressed in
Slide 62: Proven track record – Delivered strong growth
Defence & Public Security (DPS) – Progress since 2021 Investor Day Proven track record – Delivered strong growth DPS Revenue ($’b) 10% 4.9 Focus Areas CAGR 4.3 4.0 Strengthen Singapore Core 3.7 3.4 Grow International Business Grow Digital Business 2020* 2021* 2022* 2023 2024 * Excludes U.S. Marine b
Slide 63: Portfolio to capture wide spectrum of opportunities
Defence & Public Security – Major Lines of Business (LOB) Portfolio to capture wide spectrum of opportunities DIGITAL CYBER LAND MARINE DEFENCE SYSTEMS SYSTEMS AEROSPACE Digital Solutions & Engineering AI Services Cyber Products Platforms Shipbuilding Solutions Cloud Solutions & Deep Cyber Weapons &
Slide 64: Continuing strong growth momentum to exceed $7.5b revenue
Defence & Public Security – Future growth Continuing strong growth momentum to exceed $7.5b revenue DPS Revenue ($’b) 9% >7.5 CAGR 4.9 2024 2029 Target 5 | ST Engineering 2025 Investor Day
Slide 65: Continuing to strengthen Singapore Core
Defence & Public Security Continuing to strengthen Singapore Core Organised for sharper Build up in-country Develop advanced domain focus strategic capabilities technologies Integrated Defence Supply Resilience Artificial Cybersecurity capabilities capabilities chain support intelligence 6 | ST Engi
Slide 66: Strengthen strategic defence partnerships
Defence & Public Security Strengthen strategic defence partnerships Positioned to deliver capabilities & solutions for Singapore’s defence Strategic Capabilities Advanced Capabilities Multi-Role Combat Vessel C-130 Upgrade Secured Cloud Infra Cybersecurity Armoured Fighting Battlefield Management Ve
Slide 67: Growing strategic partnerships with key customers
Defence & Public Security Growing strategic partnerships with key customers Public Safety & Security Agencies Fire Fighting ICT Equipment Healthcare Automated Material USVs Maintenance Data Centre Handling System 5th Generation AI Infrastructure Integrated Cybersecurity Patrol Craft Operations C3 Eq
Slide 68: International Defence Business
International Defence Business
Slide 69: Growth opportunities underpinned by global macro trends
International Defence Business Growth opportunities underpinned by global macro trends Trends Rapid technology innovation Geopolitical tensions Supply chain resilience Opportunities Accelerated adoption Increased defence Support of technology spending localisation 10 | ST Engineering 2025 Investor D
Slide 70: Proven track record - delivered to >50 countries since 2021
International Defence Business – key wins since 2021 Proven track record - delivered to >50 countries since 2021 >$2.2b New Orders (2021-2024) Key Defence Shows 11 | ST Engineering 2025 Investor Day
Slide 71: Successes in International Defence Business
International Defence Business – Breaking new ground Successes in International Defence Business 8x8 Platform Defence Platform V-15 Unmanned 155mm Large Calibre (Kazakhstan) Electronics Aerial Vehicle Ammunition Export (UK) (Southeast Asia) (Europe) Estonia Czech Latvia Kazakhstan Qatar Egypt Peru R
Slide 72: Strengthening strategic engagements
International Defence Business Strengthening strategic engagements Strategic Engagements Strategic Partnerships Qatar Estonia Japan United Kingdom Germany Italy Doubled end-user engagements since 2021 More than 20 new partnerships established since 2021 13 | ST Engineering 2025 Investor Day
Slide 73: Expanding International Defence Business
International Defence Business Expanding International Defence Business Grow Product Portfolio International Demos Global Successes Bronco GDAMS Live Firing for UK Army in South Africa Terrex 8x8 Falaj-3 Class OPV Kazakhstan UAE Terrex 8x8 40mm Ammo Hybrid > 50 countries 8x8 Demo in Qatar & partners
Slide 74: Next generation product: Terrex s5
International Defence Business Next generation product Terrex s5 Key Features • First hybrid electric 8x8 Infantry Fighting Vehicle • Next-gen digital architecture • AI-powered systems 15 | ST Engineering 2025 Investor Day
Slide 75: Next generation product: Ground Deployed Advanced Mortar Systems
International Defence Business Next generation product Ground Deployed Advanced Mortar Systems Key Features • Light-weight mortar system • Back blast directed to ground instead of main platform • Fully digitalised mission modules • Modular and customisable to different mortar barrels & platform • Pa
Slide 76: Global Addressable Market >US$11b
International Defence Business Global Addressable Market >US$11b Over next 5 years Americas Europe Asia Pacific >US$1.5b >US$3.0b >US$2.5b Middle East >US$4.0b 17 | ST Engineering 2025 Investor Day
Slide 77: Smart City – Digital Business
Smart City – Digital Business
Slide 78: Focusing on high growth areas
Smart City – Digital Business Focusing on 3 high growth areas Technologies with Our key growth high adoption rate: focus 1. AI 2. Cloud Computing 3. Cybersecurity • AI Analytics • Cloud & Data Centre • Cybersecurity McKinsey Tech Adoption Curve 19 | ST Engineering 2025 Investor Day
Slide 79: Digital Business to more than double by 2029
Smart City – Digital Business Digital Business to more than double by 2029 Grow revenue to >$1.3b by 2029 Digital Business Revenue ($’b) >1.3 15% CAGR 0.6 2026 target 0.5 0.2 2020 2024 2029 Target 20 | ST Engineering 2025 Investor Day
Slide 80: Uniquely positioned to deliver on focus areas
Smart City – Digital Business Uniquely positioned to deliver on focus areas Software / AI Analytics Cloud & Data Centre Cybersecurity • Drive growth in Artificial Intelligence • Expand Cloud Professional • Drive growth in Quantum software and solutions & Managed Services Security Products • Expand G
Slide 81: Supported by clear strengths & product differentiation
Smart City – Digital Business Supported by clear strengths & product differentiation Software / AI Analytics Cloud & Data Centre Cybersecurity Deep expertise in developing Specialised in secure Highly certified cybersecurity AI systems for end-to-end on-premise and multi hybrid products, services an
Slide 82: Ready suite of products and solutions
Smart City – Digital Business Ready suite of products and solutions AI Analytics Cloud & Data Centre Cybersecurity AI-enabled Systems AI-Ready Green Data Centre Products Remote Workforce Quantum Encryptors Emergency Response Healthcare Solutions Cloud & Data Centre Services Airports Utilities Gen AI
Slide 83: Upskilling our Digital Talents
Smart City – Digital Business Upskilling our Digital Talents AI 3x Tools Co-pilot GenieBot number of Digital Talents1 to 5,000 over 5 years from 2024 Upskill certified training 24 | ST Engineering 2025 Investor Day 1. Digital talents comprise AI, Cloud, 5G and Cyber personnel
Slide 84: Well-positioned for strong growth
Defence & Public Security outlook Well-positioned for strong growth Growing International Defence Business Scaling Digital Singapore Core Business Well-positioned for strong growth Building on our track record 25 | ST Engineering 2025 Investor Day
Slide 85: Journey to Growth: Enabling Business Impact
2 0 2 5 I N V E S T O R D AY Journey to Growth Enabling Business Impact Ravinder Singh Group Chief Operating Officer (Technology & Innovation) and President Defence & Public Security 18 March 2025
Slide 86: 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 87: Business-driven Technology & Innovation
Technology & Innovation Business-driven Technology & Innovation 7% Product 4 - 5% of Revenue of Group Revenue 6% Systems of Revenue Integration Total R&D Spend 1% MRO of Revenue 55% R&D on 75% R&D on Dual Use Technologies Digital Technologies Build a global R&D ecosystem Group Technology Office (GTO
Slide 88: Innovation generates business value
Technology & Innovation Innovation generates business value ExtremV ® Intuition® Satcom Platform 4 | ST Engineering 2025 Investor Day
Slide 89: Agile systems development for speed to market
Technology & Innovation Agile systems development for speed to market Reusable technology modules support across businesses & geographies AI & Gen AI Cybersecurity Video Analytics MRO & Data Robotics & 5G / Satcom Analytics Autonomous Applications of AI across businesses AI for Critical Next-gen Aut
Slide 90: Harnessing AI for a safe & sustainable future
Technology & Innovation Harnessing AI for a safe & sustainable future AGIL® Ops Hub Addressing new challenges from AI AGIL® Trust Video & Audio AI AGIL® Care deepfake detector (October 2024) AGIL® 5G AGIL® Smart Energy Building 6 | ST Engineering 2025 Investor Day
Slide 91: Accelerating innovation with global R&D partners
Technology & Innovation Accelerating innovation with global R&D partners 1 Research Translation • Supported by ST Engineering Distinguished Professors • Leverage engineering scale & cross-industry capabilities to create product differentiation through R&D Launched AI Research Translation @ ST Engine
Slide 92: New solutions arising from collaboration with startups
Technology & Innovation New solutions arising from collaboration with startups AirX Quantum Safe Network AirFish – Wing-in-Ground Craft Cloud Investigation & Response 5G + WiFi + AI on a Chip Training Analytics Automation (CIRA) 8 | ST Engineering 2025 Investor Day
Slide 93: Positioning for growth – new tech areas
Technology & Innovation Positioning for growth – new tech areas Quantum Advanced Green Technologies Materials Technologies • Sustainable composites • Quantum key distribution • Coating materials (nuclear • Hydrogen production • Quantum sensors fusion chambers) • Ammonia cracking • Quantum machine •
Slide 94: Enabling business impact
Technology & Innovation Enabling business impact Business-driven innovation Enabling business impact Deep engineering through Technology competencies & Innovation Global innovation partnerships 10 | ST Engineering 2025 Investor Day
Slide 95: 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 96: 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 97: Well on-track to meet 2026 targets
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 98: 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 99: Group Revenue growth path
2029 Targets Group Revenue growth path $11.3b (FY2024) Grow Core Business Key Growth Drivers $17b (FY2029) • Geopolitical tensions - tailwind for defence business • Defence • Delivery of aircraft / engines • Digital Business • Urbanisation and digitalisation • Premier MRO Engines 5 | • Smart Mobilit
Slide 100: Net Profit growth path
2029 Targets Net Profit growth path Higher revenue; Scale effects Improved product and project mix Group Net Profit Procurement and productivity savings CAGR to exceed Group Revenue Reduced interest expense CAGR by up to 5 percentage points Reduced amortisation of intangibles 6 | ST Engineering 2025
Slide 101: Inflation vs Procurement and productivity savings
2029 Targets Inflation vs Procurement and productivity savings Cost ($) Pass-through to customers Procurement Inflation + Productivity savings = Cumulative Savings* >$1b 7 | ST Engineering 2025 Investor Day * 2025 to 2029
Slide 102: 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 103: 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 104: 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 105: 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 106: 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 107: 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 108: 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 109: 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 110: 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 111: Journey to yield cum growth
Journey to Yield cum yield cum growth growth stock Yield stock 17 | ST Engineering 2025 Investor Day
Slide 112: 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 113: Connect with us
Connect with us Icon Icon Icon Description automatically generated Description automatically generated Description automatically generated Icon Description automatically generated www.stengg.com For investor inquiries, contact Lina Poa at ir@stengg.com
Singapore Technologies Engineering — Investor Day (March 2025) on 6ix