Singapore Technologies Engineering Ltd · SGX:S63
Singapore Technologies Engineering — 3Q2023 Earnings Presentation
15 slides from Singapore Technologies Engineering's earnings presentation, Nov 10, 2023
Slide 1: 3Q2023 Market Updates
3Q2023 Market Updates 10 Nov 2023
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: Agenda
Agenda 1. Financial Highlights • Group Revenue • Business Segment Highlights • 3Q2023 Contract Wins & Order Book • Operational Highlights • Summary 2. Q&A Session • Singapore dollars unless otherwise stated • Amounts may not add to totals shown due to rounding
Slide 4: Strong Group Revenue Growth
Group Revenue Group Revenue Strong Group Revenue Growth 9M 3Q ▲12% ▲9% $7.3b y-o-y $2.4b y-o-y 9M2022: $6.5b 3Q2022: $2.2b 4 |
Slide 5: Group Revenue: Growth in all Segments
Group Revenue Group Revenue: Growth in all Segments $m 9M2023 9M2022 Change Commercial Aerospace 2,838 2,181 ▲30% ▼1% Defence & Public Security 3,090 3,118 ▲6% excl. U.S. Marine Urban Solutions & Satcom 1,369 1,209 ▲13% Group 7,297 6,508 ▲12% 5 |
Slide 6: Commercial Aerospace
Business Segment Highlights Commercial Aerospace $’m +30% 9M y-o-y • 30% y-o-y revenue increase; 2,838 contributed by all sub-segments 2,181 982 OEM: +27% 3Q2023 3M y-o-y • Strong nacelle, PTF revenue 3Q2022 776 growth * • A320/A330 PTF programme 1,856 continues to mature 1H2022 1,404 1H2023 MRO: 9M
Slide 7: Recovery in Aviation Sector Continues
Business Segment Highlights Recovery in Aviation Sector Continues Healthy Growth in Air Travel RPK1 demand vs 2019 (100%) • Total air travel reached 96% of pre-COVID (2019) level in Aug 2023 96% 96% 96% 91% 94% • Domestic air travel above 2019 84% 85% 88% level at 109% 77% • International air travel
Slide 8: Defence & Public Security
Business Segment Highlights Defence & Public Security $’m • 6% y-o-y revenue increase +6% (excluding U.S. Marine) 9M y-o-y 3,090 2,919 • Growth contributed by +5% 973 3Q2023 Defence Aerospace, Marine, 3Q2022 930 and Digital Systems & Cyber 3M y-o-y sub-segments • Digital Business2 registered strong
Slide 9: Urban Solutions & Satcom
Business Segment Highlights Urban Solutions & Satcom $’m +13% • 13% y-o-y revenue increase 9M y-o-y 1,369 • Contributed by TransCore, 1,209 partially offset by Satcom 478 • Satcom transformation underway 3Q2022 +6% 3Q2023 452 3M y-o-y • TransCore • New York Congestion Pricing project progressing wel
Slide 10: Urban Solutions & Satcom: Satcom Updates
Business Segment Highlights Urban Solutions & Satcom Satcom Updates Progress Challenges • Organisation Transformation - workforce reduction will result in lower cost base. FY2023 severance costs ~$7m (1H23:$2m) • Transformation execution challenges - more than anticipated • Product Convergence - eng
Slide 11: Significant New Contract Wins and Strong Order Book
Contract Wins & Order Book Significant New Contract Wins and Strong Order Book Contract Wins Order Book $11.7b $27.5b New contracts for 9M2023 As at 30 Sep 2023 ▲+20% 27.5 23.0 Commercial Defence & Urban Solutions Aerospace Public Security & Satcom Dec-22 Sep-23 $3.9b $6.2b $1.6b $2.5b expected to b
Slide 12: $2.2b New Contract Wins for 3Q2023
Contract Wins & Order Book $2.2b New Contract Wins for 3Q2023 3Q2023 Highlights • LEAP-1B engine maintenance contract from Lion Air Group Commercial • B787 thrust reverser restoration contract from a lessor company $0.8b Aerospace • A320ceo component MBH™ contract from an Asian airline • DC-10 airfr
Slide 13: Capacity Expansion Initiatives in 2023 for Growth
Operational Highlights Capacity Expansion Initiatives in 2023 for Growth Acquired Gul Yard, a Opened 2nd of four airframe Investing in airframe Expanded LEAP Engine brownfield site for ship maintenance hangars maintenance hangars in market capability repair business in being developed in Changi Cree
Slide 14: Summary
Summary 1 Group 9M2023 revenue at $7.3b, 12% higher y-o-y. 2 Strong Defence & Public Security and Commercial Aerospace performance. 3 Satcom transformation underway. 4 TransCore’s earnings accretion target remains. 5 Strong contract wins of $11.7b in 9M2023, including $2.2b secured in 3Q2023. Robust
Slide 15: Connect with us
Connect with us www.stengg.com
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