Singapore Technologies Engineering Ltd · SGX:S63
Singapore Technologies Engineering — Shareholder Meeting (April 2024)
19 slides from Singapore Technologies Engineering's shareholder meeting presentation, Apr 26, 2024
Slide 1: 27th Annual General Meeting
27th Annual General Meeting Vincent Chong Group President & Chief Executive Officer 26 April 2024
Slide 2: Our Aspiration and 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 2023 Highlights
Financial Year 2023 Highlights Achieved strong revenue and net profit
Slide 4: Significant financial milestones despite challenging business environment
2023 Review Significant financial milestones despite challenging business environment Revenue ($b) EBIT ($m) Net Profit ($m) 10.1 946 610 R3 R3 32 32 571 24 24 9.0 +12% 535 +10% +24% +24% R2 735 +40% 42 BOP1 7.7 177 R1 674 57R2 BOP1 205R1 915 586 493 678 394 469 2021 2022 2023 2021 2022 2023 2021 20
Slide 5: Order book remains robust; provides revenue visibility
2023 Review Order book remains robust; provides revenue visibility Order Book ($b) • $14.8b new 27.4 contract wins 23.0 +19% • Order book 19.3 1.8 of $27.4b as at 31 Dec 2023 • $7.9b expected to be 17.5 delivered in 2024 Dec-21 Dec-22 Dec-23 U.S. Marine (Divested in Nov 22) 5
Slide 6: Revenue growth from all Segments
2023 Review Revenue growth from all Segments Commercial Aerospace Defence & Public Security Urban Solutions & Satcom Revenue ($m) Revenue ($m) Revenue ($m) 4,272 +6%1 U.S. Marine +31% 249 +10% 4,023 4,252 3,905 2,991 1,944 1,772 2022 2023 2022 2023 2022 2023 1 Excluding U.S. Marine FY2022 revenue of
Slide 7: Delivered on 2023 Focus Areas
Delivered on 2023 Focus Areas Innovation • Invested in technology, innovation and digitalisation • Continued sustainability focus Business • Achieved strong performance • Secured significant contract wins & robust order book • Continued to invest for the future People • Enhanced DEI1 initiatives & t
Slide 8: Commercial Aerospace: Revenue increased 31% y-o-y
2023 Review Commercial Aerospace: Revenue increased 31% y-o-y • Invested during COVID downturn, emerged stronger with higher MRO capacity – new hangars in Pensacola, US & Changi Creek, SG • Grew MRAS nacelle business in line with A320neo deliveries • Expanded portfolio – LEAP-1A/1B1 engines MRO and
Slide 9: Urban Solutions: TransCore investment achieved earnings accretion
2023 Review Urban Solutions: TransCore investment achieved earnings accretion • Achieved earnings accretion ahead of plan for investment in TransCore, and secured multiple wins for All Electronic Tolling Systems • Advanced Smart Mobility leadership position o Higher market share in Kaohsiung MRT seg
Slide 10: Satcom: Transformation for growth and be future-ready
2023 Review Satcom: Transformation for growth and be future-ready Near term headwinds: Weakness in Satcom business performance Organisation right-sizing in 2023 resulting in lower cost base Next generation platform (NGP) with multi-orbit compatibility & cloud virtualisation on track in line with pro
Slide 11: Defence & Public Security: International business growth gained momentum
2023 Review Defence & Public Security: International business growth gained momentum • Strong international contract wins ($950m) in digital, land & naval platform, munitions, simulation and MRO solutions • Awarded Multi-Role Combat Vessels and Frigate mid-life upgrade contracts in Singapore • Digit
Slide 12: Strong balance sheet and balanced debt profile
2023 Review Strong balance sheet and balanced debt profile Total Borrowings ($b) • Borrowings reduced 7% to $6.1b • EBITDA increased 16% to $1.5b -7% 6.5 • Debt / EBITDA leverage ratios improved from 5.2x in 2022 to 6.1 4.2x in 2023 • Investment in capex & capabilities (2023: >$500m) to support 47%
Slide 13: $411m on R&D, translating to a R&D intensity of 4.1%
2023 Review Technology & innovation Strong Technology, Engineering & Innovation Community Deepen Drive Broaden Outreach to Leverage Capability Building Innovation Culture External Capabilities • Business-driven Product • Internal Innovation • Research Translation @ ST Development Programmes Engineer
Slide 14: Sustainability focus
2023 Review Sustainability focus Journey towards net zero Evaluating other sustainability-linked Enabling businesses Our Customers Global sustainability focus Hydrogen Sustainable composites Internal carbon pricing Doing Our Part Robotics solutions 14
Slide 15: Enhanced DEI initiatives & talent pipeline
2023 Review Enhanced DEI1 initiatives & talent pipeline Strengthened commitment to DEI Employer of choice DEI Management Workshop Launched Women@Work in US 4th 4th Signed an MOU with Pensacola State College to 5th 5th 5th explore setting up an Aviation Training 9th Academy in Pensacola Maintained 4t
Slide 16: Strengthened community outreach
2023 Review Strengthened community outreach Our community outreach efforts are guided by three focus areas: Improving lives through Enriching lives Transforming lives charitable gifts through education through tech & innovation ST Engineering MOVEment Science Fun Day World Solar Challenge In 2023, c
Slide 17: Capturing opportunities amidst challenging operating environment
Capturing opportunities amidst challenging operating environment Opportunities Challenges Acceleration of Increased defence & Continued supply Mixed economic AI & digital security spending chain disruptions outlook adoption Sustainability & Recovery in Interest rates Geopolitical green energy air tr
Slide 18: Key milestones in 1Q2024
Key milestones in 1Q2024 Synergistic win by TransCore Integrated tech from US & SG for Dubai Mall smart parking solution D’Crypt acquisition completion Bolstered talent pool in cryptography and cybersecurity Singapore Airshow 2024 Showcased cutting-edge products & innovations C295 MRO (with Airbus)
Slide 19: On track to achieve 2026 targets
On track to achieve 2026 targets Annual revenue to grow at 2 to 3 times Net profits to grow in global GDP growth rate to >$11b1 tandem with revenue Sustainability-linked revenue to grow to >$3b Commercial Strengthen Aerospace to other core achieve >$3.5b businesses in revenue Smart City Digital busi
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