Singapore Technologies Engineering Ltd · SGX:S63
Singapore Technologies Engineering — Q1 2022 Earnings Presentation
14 slides from Singapore Technologies Engineering's earnings presentation, May 13, 2022
Slide 1: 1Q2022 Market Updates
1Q2022 Market Updates 13 May 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
Financial Highlights Agenda • Group Financial Highlights • Business Segments Highlights • Global Events • 1Q2022 Contract Wins & Order Book • TransCore Financing Update • Highlights Summary Business Overview: Digital Business Question & Answer session Notes: • All amounts in Singapore dollars
Slide 4: Group Revenue: 13% Y-o-Y Growth
Group Financial Highlights Group Revenue: 13% Y-o-Y Growth $2.0b $2.0b +13% $1.8b 1Q2021 1Q2022 1Q2020 (Pre-COVID) 4 |
Slide 5: Segment Revenue: Growth in All Segments
Group Financial Highlights Segment Revenue: Growth in All Segments $m 1Q2022 1Q2021 Change Commercial Aerospace 674 552 +22% Urban Solutions & Satcom 297 264 +12% Defence & Public Security 1,062 976 +9% Group 2,034 1,792 +13% 5 |
Slide 6: Commercial Aerospace Revenue: 22% Y-o-Y Growth
Business Segment Highlights Commercial Aerospace Revenue: 22% Y-o-Y Growth • 22% y-o-y revenue increase • Gradual opening of borders $781m • Strong PTF demand +22% $674m • Healthy orders for nacelles • Gradual recovery in MRO demand $552m • A320/A321P2F and A330P2F • Booked through 2025 and 2026 res
Slide 7: Urban Solutions & Satcom Revenue: 12% Y-o-Y Growth
Business Segment Highlights Urban Solutions & Satcom Revenue: 12% Y-o-Y Growth • 12% y-o-y revenue increase +12% $297m • Higher Smart City project deliveries $264m • Completed acquisition of TransCore on $236m 17 Mar 2022 • Mitigation for global chip shortages • Product redesign, supply chain divers
Slide 8: Defence & Public Security Revenue: 9% Y-o-Y Growth
Business Segment Highlights Defence & Public Security Revenue: 9% Y-o-Y Growth • 9% y-o-y revenue increase +9% $1,062m $1,026m • Strong growth from Digital Systems & $976m Cyber business • Continue to leverage: • Trend in hybrid and secure cloud migration among enterprises • Accelerated adoption of
Slide 9: Global Events
Global Events Global Events Major Global Events Ukraine-Russia COVID-19 conflict situation Implications Current Inflationary Energy Labour Supply chain risk Logistics pressures prices - incl. semiconductor chips lead time assessment availability Not material at Group level - Mitigating Factors monit
Slide 10: $2.4b Total New Contracts Secured in 1Q2022
1Q2022 Contract Wins $2.4b Total New Contracts Secured in 1Q2022 1Q2022 Highlights Commercial $0.9b • Comprehensive component MBH™ contract with Vietjet • Landing gear contract with an Asian low-cost carrier Aerospace • A330P2F orders by DHL and CDB Aviation Urban Solutions & $0.2b • Rail electronic
Slide 11: Order Book: Remains Robust
Group Order Book Order Book: Remains Robust Order Book ($b) +10% • $21.3b as at 31 Mar 2022, 21.3 incl. $1.6b from TransCore 19.3 • $5.8b expected to be delivered in the remaining months of 2022 15.3 15.4 Dec-19 Dec-20 Dec-21 Mar-22 Pre-COVID 11 |
Slide 12: Estimated Weighted Avg. Financing Cost for 1st Year of Acquisition at ~1.8%
TransCore Financing Update Estimated Weighted Avg. Financing Cost for 1st Year of Acquisition at ~1.8% 26 Apr 2022 26 Apr 2022 4Q2021 Issued US$1b bonds to Settled T-Lock gains refinance USCP of US$91.4m# Executed US$1b 10-year T-Lock Hedges @1.635% Sources of financing/ Effective Yield Yield (%) po
Slide 13: Highlights Summary
Highlights Summary Highlights Summary Group 1Q2022 revenue at $2.0b, 13% higher y-o-y. 1 All business segments saw growth. 2 Strong contract wins of $2.4b in 1Q2022. 3 Robust order book of $21.3b as at end March 2022. Weighted average financing costs of TransCore acquisition at 1.8%, with a 4 US$32m
Slide 14: Thank you
£"6 ST Engineering Thank you
Singapore Technologies Engineering — Q1 2022 Earnings Presentation on 6ix