Singapore Technologies Engineering Ltd · SGX:S63

Singapore Technologies Engineering — Merger or Acquisition (March 2019)

15 slides from Singapore Technologies Engineering's merger presentation, Mar 27, 2019

  1. Slide 1: Proposed Acquisition of Newtec Group NV

    Proposed Acquisition of Newtec Group NV 27 March 2019

  2. 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

  3. Slide 3: Transaction Highlights

    Transaction Highlights  Entered into an agreement to acquire 100% of Newtec Group NV (“Newtec”) Transaction  Newtec is a key technology provider with unique ultra-high throughput capabilities and strong Description presence in European satcom market  Consideration of €250m (approx S$383m) on a ca

  4. Slide 4: Acquisition Fits ST Engineering's Smart City Strategy

    Newtec Acquisition Our Smart Fits ST City Offerings Engineering’s and Track Smart City Records Strategy Match Needs of Smart Cities / 04 /4

  5. Slide 5: Satcom Industry Value Chain

    Satcom Industry Value Chain GEO CONSTELLATIONS SATELLITE MANUFACTURERS MEO LEO MANAGED SERVICES SYSTEM INTEGRATORS GROUND SEGMENT Antennas, Hub & Line NMS Remotes Reference Design, PE Cards Licensing IP Defence - The Connected Military END-USERS Transport Fighting Machines 4/5G UAVs Supply, Logistic

  6. Slide 6: Demand for Satcom Is Fast Growing

    Demand for Satcom Is Fast Growing Sources: Ericsson Mobility Report, Nov 2016 On Average 10% - 15% CAGR NSR CSGS3, 2018 ITS Digest 6 |

  7. Slide 7: Surging Capacity – Open Up New Markets And Applications

    Surging Capacity – Open Up New Markets And Applications Economics 2022 – 8.9Tbps Future Number of ~ 7x HTS $ terminals Capacity $$ $$$ 2017 – 1.3Tbps Bandwidth Terminal Cost Count Source: EuroConsult Dropping $$$$ Increasing $$$$$ • >5,000 LEO satellites to be launched by SpaceX, OneWeb, Telesat, Le

  8. Slide 8: iDirect Is The Industry Preferred Satcom Platform

    iDirect Is The Industry Preferred Satcom Platform Platform of Choice for Global Satellite Operators Serving MARITIME AERO MILITARY ENTERPRISE 8 |

  9. Slide 9: Newtec – Leading Satcom Equipment Provider

    Newtec – Leading Satcom Equipment Provider  Newtec is an established Belgium-based company in the satcom industry Established OEM of  Designs, develops, manufactures and sells satcom equipment Satcom Equipment  Provides critical satcom technologies  Strong history of innovations and awards World

  10. Slide 10: Newtec – Differentiated & Complementary IP

    Newtec – Differentiated & Complementary IP Key Applications TV Broadcast & Cell Video Streaming, Social Robust & Reliable Backhaul Media Connectivity Dedicated, high On-demand, dynamic Core communications bandwidth bandwidth technology Key Technologies & IP Cross-Dimensional Multiple Single Channel

  11. Slide 11: Newtec – Complementary Segments

    Newtec – Complementary Segments Satcom Hub Maritime Aeronautical Land Enterprise Cell Backhaul Consumer Broadcast 11 |

  12. Slide 12: Positioning For Future Growth

    Positioning For Future Growth • Accelerate the deployment of satcom-enabled 5G network • Address growing needs for IoT and M2M connectivity • Provide end-to-end solutions for mobility market, including connected vehicles 12 |

  13. Slide 13: S$200m In Value Creation

    S$200m In Value Creation Revenue Synergies Costs Synergies • Enhanced Products & Solutions • Economies of Scale: • Cross Selling • R&D • New Markets & Emerging • Manufacturing & Supply Segments Chain • Position Newtec in Belgium as • Common Go-to Market Group’s European Satcom Centre 13 |

  14. Slide 14: Acquisition of Newtec – Strong Strategic Fit

    Acquisition of Newtec – Strong Strategic Fit Complementary IP & technologies, broader Expect to be earnings High growth potential portfolio & new accretive from Year 2 from strong market segments with strong synergies positions 14 |

  15. Slide 15: Q&A

    KZ p aS | ys S ee ri Q&A

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