Singapore Technologies Engineering Ltd · SGX:S63
Singapore Technologies Engineering — Q1 2019 Earnings Presentation
46 slides from Singapore Technologies Engineering's earnings presentation, May 15, 2019
Slide 1: First Quarter 2019 Results
First Quarter 2019 Results 15 May 2019
Slide 2: Agenda
Agenda • Group Highlights • Sector Performance • Outlook • Appendix • Aerospace • Electronics • Land Systems • Marine 2 |
Slide 3: Group Highlights
Group Highlights $"5 ST Engineering
Slide 4: Group 1Q2019 Highlights
Group 1Q2019 Highlights All figures are denominated in $m unless indicated otherwise Revenue EBIT 1,731 141.9 +5% y-o-y +16% y-o-y PBT Net Profit 159.9 131.1 +11% y-o-y +11% y-o-y Order book as at 31 March 2019: $14.1b; about $4.2b to be delivered in remaining months of 2019 4 |
Slide 5: Group Revenue
Group Revenue $'m 1Q2019 1Q2018 Change Aerospace 622 599 +4% Electronics 563 605 -7% Land Systems 377 281 +34% Marine 149 150 -1% Others 20 12 +67% Group 1,731 1,647 +5% 5 |
Slide 6: Group 1Q2019 Revenue Breakdown
Group 1Q2019 Revenue Breakdown 1Q2019 Revenue Others by location of customers Marine 1% Land 9% Systems ASIA U.S. Defence 22% 30% 61% 20% Electronics Aerospace EUROPE OTHERS 36% 32% Commercial 12% 7% 70% 6 |
Slide 7: Group Profit before Tax (PBT)
Group Profit before Tax (PBT) $'m 1Q2019 1Q2018 Change Aerospace 76.6 76.3 - Electronics 52.2 48.3 +8% Land Systems 17.8 17.0 +5% Marine 14.5 9.2 +56% Others (1.2) (6.8) NM Group 159.9 144.0 +11% 7 |
Slide 8: Group Net Profit
Group Net Profit $'m 1Q2019 1Q2018 Change Aerospace 62.7 59.2 +6% Electronics 43.4 40.3 +8% Land Systems 15.2 15.6 -3% Marine 12.0 8.7 +38% Others (2.2) (6.1) NM Group 131.1 117.7 +11% 8 |
Slide 9: Group Margins
Group Margins PBT Margin Net Profit Margin 9% 8% Group 9% 7% 12% 10% Aerospace 13% 10% 9% 8% Electronics 8% 7% 5% 4% Land Systems 6% 6% 10% 8% Marine 6% 6% 1Q2019 1Q2018 1Q2019 1Q2018 9 |
Slide 10: Balance Sheet
Balance Sheet $'m 31 Mar 2019 31 Dec 2018 Property, plant & equipment 1,707 1,743 Intangible assets 1,141 1,151 Right-of-use assets 428 - Other non-current assets 572 582 Current assets 4,133 4,097 Total assets 7,981 7,573 Current liabilities 3,774 3,851 Non-current liabilities 1,604 1,187 Total lia
Slide 11: Statement of Cash Flows
Statement of Cash Flows $'m 31 Mar 2019 31 Mar 2018 Net cash from/(used in) Operating activities 369 431 Investing activities (50) (44) Financing activities (123) (78) Net increase in CCE * 196 309 CCE at beginning of the period 414 998 Exchange difference (1) (4) CCE at end of the period 609 1,303
Slide 12: 1Q2019 Sector Performance
1Q2019 Sector Performance $"5 ST Engineering
Slide 13: Aerospace
Aerospace 1Q2019 vs 1Q2018 Higher revenue from CERO and EMS business groups Revenue $622m ▲ $23m or 4% Partially offset by Lower revenue from AMM business group Higher other income due to absence of portfolio rationalisation impact PBT $76.6m ▲ $0.3m or 0% Partially offset by Lower gross
Slide 14: Electronics
Electronics 1Q2019 vs 1Q2018 1Q2018 was a very strong Revenue $563m ▼ $42m or 7% quarter Higher gross profit from favourable sales mix Share of lower losses from PBT $52.2m ▲ $3.9m or 8% associates & joint ventures Partially offset by Higher operating expenses Lower other income Net Profi
Slide 15: Land Systems
Land Systems 1Q2019 vs 1Q2018 Higher revenue from all business Revenue $377m ▲ $96m or 34% groups Higher gross profit from higher revenue PBT $17.8m ▲ $0.8m or 5% Partially offset by Higher operating expenses Lower other income Absence of favorable tax Net Profit $15.2m ▼ $0.4m or 3% fina
Slide 16: Marine
Marine 1Q2019 vs 1Q2018 Lower revenue from Shipbuilding business group Largely offset by Revenue $149m ▼ $1m or 1% Higher revenue from Shiprepair and Engineering business groups Higher gross profit from improved PBT $14.5m ▲ $5.3m or 56% U.S. shipbuilding performance Net Profit $12.0m ▲ $3.3m
Slide 17: Outlook
Outlook $"S ST Engineering
Slide 18: President & CEO's Message
President & CEO’s Message “We had a good start to the year and our recent contract wins have increased our order book to a high of $14.1b. Our focus remains on strengthening our core businesses and pursuing growth in Smart City and in the international defence business. On the M&A front, we have agr
Slide 19: Appendix
Appendix $"S ST Engineering
Slide 20: Aerospace
Aerospace $"S ST Engineering
Slide 21: Aerospace Revenue
Aerospace Revenue by geography (by location of customers) Europe Others 1Q2019: $155m 1Q2019: $54m 25% 8% 25% 42% U.S. Asia 1Q2019: $155m 1Q2019: $260m 21 |
Slide 22: Aerospace Revenue, PBT and Net Profit
Aerospace Revenue, PBT and Net Profit by business group AMM CERO 251 172 245 153 28.1 19.0 21.5 15.2 1Q2018 1Q2019 1Q2018 1Q2019 PBT $37.1m $28.0m PBT $17.6m $22.8m EMS 207 196 Legend: 22.2 Bar: Revenue ($m) 15.9 Line: Net Profit ($m) Note: Revenue includes inter-segment sales 1Q2018 1Q2019 22 | PBT
Slide 23: Aerospace – 1Q2019 in Review
Aerospace – 1Q2019 in Review • Secured $1.28b worth of new contracts, including: • A 10-year airframe MRO contract from a long-time customer, a major North American operator, to provide heavy maintenance services for its entire fleet of A300s and Boeing 757 • Component support for new African and Eu
Slide 24: Aerospace – Outlook for 1H2019
Aerospace – Outlook for 1H2019 • Pursue launch customer for A320 freighter conversion; grow aircraft leasing portfolio • Develop and commercialise UAV programmes including DroNet • Commence integration of MRAS • Accelerate digitalisation of global operations; adopt smart technologies to differentiat
Slide 25: Electronics
Electronics $"S ST Engineering
Slide 26: Electronics Revenue
Electronics Revenue by geography (by location of customers) Europe Others 1Q2019: $45m 7% 1Q2019: $40m 8% 6% 79% U.S. Asia 1Q2019: $36m 1Q2019: $449m 26 |
Slide 27: Electronics Revenue, PBT and Net Profit
Electronics Revenue, PBT and Net Profit by business group LSG CSG 289 282 145 145 14.9 17.5 10.7 5.4 1Q2018 1Q2019 1Q2018 1Q2019 PBT $17.8m $20.9m PBT $6.5m $13.2m SSG 175 143 Legend: 20.0 Bar: Revenue ($m) 15.2 Line: Net Profit ($m) Note: Revenue includes inter-segment sales 1Q2018 1Q2019 27 | PBT
Slide 28: Electronics - 1Q2019 in Review
Electronics - 1Q2019 in Review • Secured $818m worth of new contracts, including: • Smart mobility projects in Bangkok for its Gold Line and Purple Line, Wuxi Metro Line 3 in China, Taiwan Railway Authority’s trains and Singapore for Downtown Line 3 • Defence projects including engineering support s
Slide 29: Electronics - Outlook for 1H2019
Electronics - Outlook for 1H2019 • Deliver smart mobility, satellite communications and software system related contracts on schedule • Pursue smart city related contracts in and outside of Singapore 29 |
Slide 30: Land Systems
Land Systems $"S ST Engineering
Slide 31: Land Systems Revenue
Land Systems Revenue by geography (by location of customers) Europe Others 1Q2019: $1m 5% 1Q2019: $20m 25% 70% U.S. Asia 1Q2019: $96m 1Q2019: $271m 31 |
Slide 32: Land Systems Revenue, PBT and Net Profit by business group
Land Systems Revenue, PBT and Net Profit by business group Auto 285 M&W 216 52 7.2 25 (1.6) 1.5 1.0 1Q2018 1Q2019 1Q2018 1Q2019 PBT $6.9m $0.8m PBT ($1.6m) $2.0m S&T 51 45 Legend: 10.0 12.7 Bar: Revenue ($m) Line: Net Profit ($m) Note: Revenue includes inter-segment sales 1Q2018 1Q2019 32 | PBT $11.
Slide 33: Land Systems - 1Q2019 in Review
Land Systems - 1Q2019 in Review • Secured new contracts, including: • Weapons & munitions from customers in Asia Pacific, Middle East and Europe • Road Construction Equipment and Specialty Vehicles from customers in North America • 80 Automated Guided Vehicles for PSA for deployment at Singapore’s n
Slide 34: Land Systems - Outlook for 1H2019
Land Systems - Outlook for 1H2019 • Pursue and secure key defence and commercial programmes locally and overseas • Accelerate the deployment of autonomous vehicles • Provide logistics autonomous solutions for the warehouse, airport, seaport and manufacturing industries 34 |
Slide 35: Marine
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Slide 36: Marine Revenue
Marine Revenue by geography (by location of customers) Europe Others 1Q2019: $15m 3% 1Q2019: $4m 10% 25% 62% U.S. Asia 1Q2019: $37m 1Q2019: $93m 36 |
Slide 37: Marine Revenue, PBT and Net Profit
Marine Revenue, PBT and Net Profit by business group Shipbuilding Shiprepair 81 75 57 50 1.5 9.8 9.0 (5.5) 1Q2018 1Q2019 1Q2018 1Q2019 PBT ($7.6m) $1.8m PBT $11.6m $10.7m Engineering 24 Legend: 12 Bar: Revenue ($m) Line: Net Profit ($m) 4.4 1.5 Note: Revenue includes inter-segment sales 1Q2018 1Q201
Slide 38: Marine – 1Q2019 in Review
Marine – 1Q2019 in Review • Secured new contracts, including • Phase 1 Preliminary/Contract design for the National Oceanic and Atmospheric Administration AGOR Variant by Naval Sea Systems Command • Production engineering studies support work for the U.S. Coast Guard Polar Security Cutter’s acquisit
Slide 39: Marine – Outlook for 1H2019
Marine – Outlook for 1H2019 • Expects to deliver 7th of eight LMVs to RSN • International Defence shipbuilding opportunities • To begin detail design and construction contract for Polar Security Cutter by U.S. Department of the Navy 39 |
Slide 40: Marine sector: Polar Security Cutter for the U.S. Coast Guard
Marine sector: Polar Security Cutter for the U.S. Coast Guard
Slide 41: Programme Overview
Programme Overview • U.S. Coast Guard Polar Security Cutter (PSC) - A multi-year programme, with up to three multi-mission PSCs to recapitalise the USCG fleet of heavy icebreakers • VT Halter Marine (VTHM) awarded contract for one PSC @ S$1b • Contract includes options for two more PSCs - The cumula
Slide 42: VT Halter Marine Polar Security Cutter
$'¢ VT Halter Marine A company of VT Systems ___ MULTIMISSION-READY KEY FEATURES POLAR SECURITY CUTTER — Enhanced Mission Capabilities © Large flight deck © Configurable workspaces © Supports 9 20' ISO containers. Accommodations for 186 AND CAPABILITIES * Ice Breaking ¢ Seakeeping * Operating Range
Slide 43: Design Studies in 2017 to Contract Win in 2019
Design Studies in 2017 to Contract Win in 2019 Feb 2017 VTHM was one of five shipyards awarded a firm fixed- price contract for the heavy polar icebreaker design studies and analysis VTHM received a contract for work to support production Feb 2019 engineering studies for the USCG PSC acquisition pro
Slide 44: We Are Ready to Deliver the PSC
We Are Ready to Deliver the PSC Additional capacity Yard infrastructure • Adjacent Pascagoula yard • Large layout and assembly acquired in 2017 space • Provides flexibility in resource • Launch ways and required water deployment depth Rigorous reviews before construction Experienced team • Our PSC d
Slide 45: PSC Programme Schedule
PSC Programme Schedule 2025/2027 2024 • Delivery of 2nd & 3rd 2021 • Expected PSC delivery of if options 2019 • Commence PSC 1 are construction exercised • 18-month of PSC 1 detailed design and planning phase 45 |
Slide 46: Thank You
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