32 slides from Singapore Technologies Engineering's earnings presentation, Aug 15, 2022
Slide 1: First-Half 2022 Results
First-Half 2022 Results 12 August 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
Agenda ➢ Financial Highlights • Group Highlights • Outlook • Segment Highlights ➢ Question & Answer session Notes: • All amounts in millions of Singapore dollars unless otherwise stated • Amounts may not add to totals shown due to rounding • All government support refers to COVID-19 related governme
Slide 4: Group Highlights
ys 91 Engineering Group Highlights
Slide 5: 1H2022 Revenue 17% higher; EBIT 8% higher
Group Highlights 1H2022 Revenue 17% higher; EBIT 8% higher (despite $125m reduction in government support y-o-y) Revenue EBIT PBT Net profit 4,270 385 351 280 +17% +8% +3% -5% y-o-y y-o-y y-o-y y-o-y 5 |
Slide 6: Group 1H2022 Revenue breakdown
Group Highlights Group 1H2022 Revenue breakdown 1H2022 Revenue 1H2022 Revenue 1H2022 Revenue by segment (S$4.3b) by type (S$4.3b) by location of customers Commercial Defence 2.8 1.5 2.3 1.4 Asia U.S. 52% 2.2 DPS, 49% 1.2 23% $2.1b CA, 33% Europe Others $1.4b 19% 6% USS, 18% $0.8b 1H2020 1H2021 1H202
Slide 7: 1H2022 revenue growth from all segments
Group Highlights 1H2022 revenue growth from all segments +17% 4,270 121 229 3,651 268 1H2021 CA USS DPS 1H2022 7 | CA:Commercial Aerospace USS:Urban Solutions & Satcom DPS: Defence & Public Security, and Others
Slide 8: Recovery in Commercial Aerospace business
Group Highlights Recovery in Commercial Aerospace business • 25% y-o-y growth in 2Q2022 • Opening of borders Revenue • Strong PTF demand +23% +25% • Healthy orders for nacelles +22% +27% 722 730 • Gradual but not yet full recovery in 674 2020 MRO 607 2021 587 584 552 2022 478 • A320/A321PTF and A330
Slide 9: TransCore Updates
Segment Highlights TransCore Updates A) Key contract wins >$170 million Tolling projects (services & system upgrades) and RFID tag sales such as in Florida, West Virginia and Dubai B) Update on integration • Integration activities proceeding well • First year cashflow positive expected C) Update on
Slide 10: EBIT: Growth & cost savings more than offset $125m drop in government support
Group Highlights EBIT: Growth & cost savings more than offset $125m drop in government support EBIT (BOP)R2 grew by 45% EBIT EBIT +8% (Base Operating Performance) 176 385 355 333 104 -125 +45% 72 R1 R1 230 -21 1H2021 Govt Support TC Txn./ Growth/ 1H2022 Integratn. Exp. Cost Savings 1H2021 1H2022 Not
Slide 11: All segments saw increase in EBIT (BOP)
Group Highlights All segments saw increase in EBIT (BOP) Commercial Urban Solutions Defence & Public Aerospace EBIT & Satcom EBIT Security EBIT 11 241 166 183 -3 -36 214 9 94 103 -21 -86 72 1 -12 1H2021 Govt BOP/ 1H2022 1H2021 Govt TC Txn & BOP/ 1H2022 1H2021 Govt BOP/ 1H2022 support Cost support In
Slide 12: Net Profit would be 4% higher y-o-y at $307m
Group Highlights Net Profit: Net Profit would be 4% higher y-o-y at $307m, excl. TransCore transaction & integration expenses and tax-exempt effect of JSS -18 50 -21 307 R1 296 -11 +4% -32 -16 280 1H2021 EBIT Finance costs Tax&NCI TC txn. & 1H2022 Net Profit integratn. exp. Net Profit (net of tax) 1
Slide 13: $3.1b worth of new contracts secured in 2Q2022
Group Highlights $3.1b worth of new contracts secured in 2Q2022 2Q2022 Highlights • A330P2F and A321P2F orders Commercial • Airframe heavy maintenance agreement with United Airlines $1.2b Aerospace • Five-year engine maintenance offload agreement with Safran • Component MBH™ extension contracts from
Slide 14: Notable contract wins in 2Q2022
Group Highlights Notable contract wins in 2Q2022 Freighter conversion Engine MRO offload Tolling projects and Smart street lighting Data centre orders from various and component RFID tag sales in the control systems in co-location and operators MBHTM contracts U.S. and Dubai two more cities in manag
Slide 15: Order Book: Remains Robust
Group Order Book Order Book: Remains Robust Order Book ($b) +4% • $22.2b as at 30 Jun 2022 22.2 21.3 • $4.6b expected to be 19.3 delivered in the remaining months of 2022 15.4 Dec-20 Dec-21 Mar-22 Jun-22 COVID-19 15 |
Slide 16: Balance Sheet
Group Highlights Balance Sheet $m 30 Jun 2022 31 Dec 2021 Property, plant & equipment 2,027 1,794 Right-of-use assets 535 559 Intangible assets 5,455 1,993 Other non-current assets 892 814 Current assets 5,705 5,356 Total assets 14,614 10,516 Current liabilities 7,523 4,680 Non-current liabilities 4
Slide 17: Statement of Cash Flows
Group Highlights Statement of Cash Flows $m 1H2022 1H2021 Net cash from/(used in): Operating activities 321 426 Investing activities (4,126) (146) Financing activities 3,525 (429) Net decrease in CCE* (281) (150) CCE at beginning of the period 816 729 Exchange difference (2) 3 CCE at end of the peri
Slide 18: Group President & CEO's Message
Group President & CEO’s Message “ Despite a challenging operating environment in the first half of 2022, our businesses continued to demonstrate their underlying strengths and resilience. Year-on-year revenue growth and base business profitability, continued cost savings and productivity initiatives
Slide 19: Segment Highlights
ys 91 Engineering Segment Highlights
Slide 20: Group Revenue
Segment Highlights Group Revenue $m 1H2022 1H2021 Change Commercial Aerospace 1,404 1,136 +24% Urban Solutions & Satcom 757 528 +43% Defence & Public Security 2,108 1,987 +6% Group 4,270 3,651 +17% 20 |
Slide 21: EBIT
Segment Highlights EBIT $m 1H2022 1H2021 Change Commercial Aerospace 183 103 +78% Urban Solutions & Satcom (12) 11 NM Defence & Public Security 214 241 -11% Group 385 355 +8% 21 | NM – Not meaningful
Slide 22: Commercial Aerospace
ST Engineering Commercial Aerospace
Slide 23: Commercial Aerospace
Segment Highlights Commercial Aerospace $m 1H2022 1H2021 Change Remarks Higher revenue attributable to Revenue 1,404 1,136 24% continued but not yet full business recovery Business recovery and one-off pension restructuring effect more EBIT 183 103 78% than offset reduction in government support of
Slide 24: Commercial Aerospace sub-segment highlights
Segment Highlights Commercial Aerospace sub-segment highlights Aerostructures Aerospace MRO Aviation Asset Management & Systems Revenue, S$’m AUMR1, US$’m Revenue, S$’m +58% +33% 1,420 +15% 825 632 551 619 900 1H2021 1H2022 1H2021 1H2022 1H2021 1H2022 Notes: 24 | - R1 AUM refers to Asset Under Manag
Slide 25: Urban Solutions & Satcom
ys 91 Engineering Urban Solutions & Satcom
Slide 26: Urban Solution & Satcom
Segment Highlights Urban Solution & Satcom $m 1H2022 1H2021 Change Remarks Higher revenue from Smart Mobility (including TransCore), offset by Revenue 757 528 43% lower revenue from Satcom due to semiconductor chip shortages Excluding TransCore transaction and integration expenses of $21m and lower
Slide 27: Urban Solutions & Satcom sub-segment highlights
Segment Highlights Urban Solutions & Satcom sub-segment highlights Urban Solutions Satcom * Revenue, S$’m Revenue, S$’m +68% 585 -3% 205 199 348 205 1H2021 1H2022 1H2021 1H2022 Notes: 27 | - Revenue include inter-segment and inter-subsegment sales * Satcom was impacted by semi conductor chip shortag
Slide 28: USS – Satcom Seasonality
Segment Highlights USS – Satcom Seasonality 52 $’m • Satcom seasonality • Weaker first half has been the norm in past years 14 • Exceptionally strong 11 1H2021 vs 2H2021 • Expect the trend of ‘stronger 2H compared to -12 -21 1H’ going forward. 2020 2021 2022 FY20: FY21: 31 26 1H 2H EBIT 28 |
Slide 29: Defence & Public Security
ys 91 Engineering Defence & Public Security
Slide 30: Defence & Public Security
Segment Highlights Defence & Public Security $m 1H2022 1H2021 Change Remarks Higher revenue contributed by Digital Systems & Cyber, Land Revenue 2,108 1,987 6% Systems and Defence Aerospace, partially offset by lower revenue from Marine. EBIT 214 241 11% Excluding government support of $36m in prior
Slide 31: Defence & Public Security sub-segment highlights
Segment Highlights Defence & Public Security sub-segment highlights Defence Aerospace Digital Systems & Cyber Land Systems Marine Revenue, S$’m Revenue, S$’m Revenue, S$’m Revenue, S$’m +8% +7% 777 765 719 717 -1% 390 385 +12% 239 213 1H2021 1H2022 1H2021 1H2022 1H2021 1H2022 1H2021 1H2022 Notes: 31
Slide 32: Thank you
WM quot; +, 3 ST Engineering Thank you