Singapore Technologies Engineering Ltd · SGX:S63
Singapore Technologies Engineering — Shareholder Meeting (April 2019)
18 slides from Singapore Technologies Engineering's shareholder meeting presentation, Apr 18, 2019
Slide 1: 22nd Annual General Meeting
22nd Annual General Meeting 18 April 2019
Slide 2: Resilient 2018 results, impacted by one-offs
Resilient 2018 results, impacted by one-offs Revenue (S$b) Net Profit (S$m) $b $m 8 600 +3% -2% 7 6.5 6.7 503 494 500 6 400 5 4 300 3 200 2 100 1 0 0 2017 2018 2017 2018 2 | Co-confidential
Slide 3: Resilient 2018 results, impacted by one-offs
Resilient 2018 results, impacted by one-offs Revenue (S$b) Net Profit (S$m) $b $m Exclude one-off charges 8 600 +3% -2% +9% 527 • Strong underlying 7 6.5 6.7 503 494 500 operating performance 482 6 400 5 • One-off charges to 4 300 rationalise portfolio 3 200 2 100 • Investments in growth 1 initiativ
Slide 4: Value creation
Value creation Return on capital employed (%) Total shareholder return (%) % Dividend yield 12.1 16% Capital gain 11.5 13.6 12.7 12.0 4.8 12% 4.4 8% 5.5 7.3 7.1 4% 4.6 0.9 0% 2016 2017 2018 2016 2017 2018 4 | Co-confidential
Slide 5: Initiatives since 2016
Initiatives since 2016 Positioning for growth Strategy Synergies Portfolio mgt Invest for growth Group strategy office Shared Services Divested China Strengthened Talent Speciality Vehicles biz Development Framework Aligned M&A with Treasury Centre Corporate Venture Capital Divested India Road Group
Slide 6: Good progress with early wins
Good progress with early wins Int’l Defence Biz
Slide 7: Strengthen core: Acquired MRAS
1 Strengthen core: Acquired MRAS Major nacelle components • Largest acquisition for the Group Exhaust Plug • Focused strategy to Exhaust Nozzle upscale capabilities Engine Build-Up Transcowl / Blocker • Well received by Doors Inlet Fan Cowl market Nacelle Engine Trust Reverser Actuation System “Stra
Slide 8: Strengthen core: Building order books
1 Strengthen core: Building order books Order Book Yr End 2018 $13.2b Marine 2013-2018 Order Book ~$4.9b expected to be delivered in 2019 ~S$750m New orders in 2H 2018 +49% 2013 2014 2015 2016 2017 2018
Slide 9: Strengthen core: New Investments
1 Strengthen core: New Investments Expansion of MRO complex, 2nd Composite panel mfg. plant, Pensacola, Florida, USA Kodersdorf, Saxony, Germany Total investment: US$210m Total investment: EUR 38m Our share of investment: US$35m 20% external funding
Slide 10: Pursue growth: Smart City achievements
2 Pursue growth: Smart City achievements AI powered First Smart Street Lighting CES 2019 Traffic Management Foray into USA Award Honoree System in Las Vegas in Middle East Ultra-Slim 2FA Encryption Rail products 45 cities Predictive Maintenance in 99.2% Accuracy Launched Accuracy predicting MEXICO L
Slide 11: Pursue growth: Acquiring Newtec
2 Pursue growth: Acquiring Newtec About Newtec • Leading Satcom equipment provider • Designs, manufactures and sells Satcom equipment • Owns IPs & patents for key Satcom technologies 11 |
Slide 12: Acquiring Newtec to reinforce Satcom business
Acquiring Newtec to reinforce Satcom business CONSTELLATIONS partnerships SATELLIITE MANUFACTURERS GEO Newtec’s value Strategic MEO proposition LEO • Differentiated and complementary IP GROUND SEGMENT Key Satcom • Strong position for capabilities Antennas, Hubs & Network Reference Design, Profession
Slide 13: Pursue growth: Int'l Defence Business
2 Pursue growth: Int’l Defence Business Attractive market but competition intense World class products; Secured new orders; Enhance delivery to global markets Building pipeline Auxiliary Personnel Logistic Support Lighters Vessels Next-Generation TERREX 2 Armoured Fighting Vehicle Medium Unmanned Su
Slide 14: Priorities for 2019
Priorities for 2019 1 2 3 4 5 Strengthen Pursue Integrate Nurture Develop new Core Growth Acquisitions Capabilities Businesses 14 |
Slide 15: New Enterprises & Ventures
New Enterprises & Ventures Formulate strategy Build capability to execute Pursue our aspiration 1 Adopt global mind-set and context 2 Apply engineering expertise in • Enhanced domain and healthcare settings functional expertise Build & Operate • Established HealthTech A Global 3 network HealthTech C
Slide 16: Current participation in HealthTech business
Current participation in HealthTech business Medical Devices Emergency / Healthcare IT Robotics & Diagnostics Safety • Hospital C2 • Delivery Robots • Soldiers Vital Signs • Emergency Command Centre • Medical Robots* Analytics Response System • Integrated Security • AI Wound Analytics* • Infrared Fe
Slide 17: Our 5-Year Plan (2018 – 2022)
Our 5-Year Plan (2018 – 2022) Smart City revenue (S$1b) to more than double Core and other businesses grow at 2 – 3x global GDP growth rate Group net profits 2/3 of Group revenue growth grow in tandem from global markets with revenues 17 |
Slide 18: Thank You
ST Engineering Thank You —_— —h
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