Singapore Technologies Engineering Ltd · SGX:S63
Singapore Technologies Engineering — Investor Day (November 2021)
95 slides from Singapore Technologies Engineering's investor day presentation, Nov 16, 2021
Slide 1: Driving the Next Bound of Growth
INVESTOR DAY 2021 Driving the Next Bound of Growth Vincent Chong Group President & CEO 16 November 2021
Slide 2: Disclaimer
Disclaimer Amounts stated in this presentation are denominated in Singapore Dollars unless stated otherwise. The forward-looking statements in this presentation reflect the Company's current intentions, plans, expectations, assumptions and beliefs about future events. Actual future performance, outc
Slide 3: 2018 Focus Growth Areas - Recap
2018 Focus Growth Areas - Recap 3 |
Slide 4: Results reaffirm strategy - credible 2020 despite COVID-19
Reflections Results reaffirm strategy - credible 2020 despite COVID-19 Revenue (S$b) ROE (%) COVID-19 COVID-19 7.9 26.0 6.7 6.7 7.2 +2% 6.5 22.2 22.7 22.0 22.8 vs 1H’20 3.7 2016 2017 2018 2019 2020 1H 2021 2016 2017 2018 2019 2020 Net Profit (S$b) Annual TSR for Past 3 Years COVID-19 16.9% ST Engine
Slide 5: Weathered COVID-19
Reflections Weathered COVID-19 COVID-19 impacted key businesses Impact of COVID-19 Disruption to air travel and maritime cruise activity Commercial Aerospace impacted ~40% of our business Other Businesses Satcom We remain resilient Outperformed peers in Aerospace MRO, seized opportunities in P2F and
Slide 6: Update on 2018 Investor Day Ambitions
Update on 2018 Investor Day Ambitions Our 2022 Ambitions Achievement timeline Two-thirds of our revenue growth will be On Target from global markets (By 2022) Smart City revenue of S$1b to more than ~1 year delay double by 2022 Core and other businesses CAGR 2 to 3 times ~1 year delay global GDP gro
Slide 7: Recent trends continue to support and accelerate our strategy
Looking Forward Recent trends continue to support and accelerate our strategy Digitalisation Sustainability Technology acceleration Heightened awareness and disruption on a leading to significant global scale emphasis and opportunities Key Trends & Opportunities Urbanisation Security Governments inv
Slide 8: Continued investments to drive our strategy forward
Growth Strategy Continued investments to drive our strategy forward 2018-19 2019 2021-22 Move up the value Solidify leadership in Enhance suite of Smart chain to components Satcom Ground Segment Mobility road solutions / OEM Enhance anti-jam Access to North capabilities America 8 |
Slide 9: Reorganised to better achieve strategic objectives
Growth Strategy Reorganised to better achieve strategic objectives Deepen Commercial Defence & Public Security customer engagement & domain Digital Commercial Urban Satcom Land Marine Defence expertise Systems Aerospace Solutions Systems Aerospace and Cyber Group Engineering Centre Leverage Group sc
Slide 10: Strategic focus areas
Strategic Grow Sustainability-linked focus areas revenue Strengthen core Ride the recovery businesses in Commercial Aerospace Drive Growth Expand in Smart City International Defence Grow Digital Business – Cloud, AI Analytics, Cyber People & Culture Customers & Marketing Capacity for Growth 10 |
Slide 11: Near-term challenges persist; recovery in 2-3 years
Growth Vector: Ride the recovery in Commercial Aerospace Near-term challenges persist; recovery in 2-3 years Unprecedented COVID-19 impact on Domestic Air Travel recovers aviation industry 2023* International Air Travel recovers 2024* Commercial Aerospace revenue to recover by 2024 Total Fleet to 20
Slide 12: Remained resilient, invest and position strongly for recovery
Growth Vector: Ride the recovery in Commercial Aerospace Remained resilient, invest and position strongly for recovery Expand MRO capabilities and capacity. Strengthen OEM position Scale aviation asset management portfolio Secured $4.4b New Capture strong demand in Passenger-to- Contracts* Freighter
Slide 13: Opportunity: Continued strong demand for Smart City solutions
Growth Vector: Drive Growth in Smart City Opportunity: Continued strong demand for Smart City solutions Relevant Smart City Market Size Forecast* (in US$’T) Relevant smart city market to grow at 0.6 US$ ’T CAGR 8% to reach ~US$0.5T in 2026 ~0.5 0.5 8% 0.4 0.34 Growth in demand at intersection of 0.3
Slide 14: Track Record: Robust suite of leading solutions to capture opportunities
Growth Vector: Drive Growth in Smart City Track Record: Robust suite of leading solutions to capture opportunities Commercial Cluster Defence & Public Smart Mobility Security Cluster • Smart Metro Solutions • Traffic Management Solutions Smart Security • Autonomous Solutions • Electric Vehicles More
Slide 15: Build on strong momentum to accelerate growth
Growth Vector: Drive Growth in Smart City Build on strong momentum to accelerate growth Reorganised to sharpen focus – formation of URS and Satcom GBAs Accelerated growth through More than double acquisitions – Newtec and our Smart City TransCore revenue from 2020 to 2026 Continued base business gro
Slide 16: Driving success in international defence business
Growth Vector: Expand International Defence Driving success in international defence business Digital acceleration drives adoption of dual-use technologies in military Attractive Addressable Market Legacy platforms being upgraded ~US$5b Over next 5 years Pursue more opportunities through overseas pa
Slide 17: Sustainability – Core to our business; exploring new opportunities
Enabler: Grow Sustainability-linked Revenues Sustainability – Core to our business; exploring new opportunities Core Businesses New Opportunities Commercial Aerospace Solve urban and city issues Reduce GHG Engine Eco-wash P2F Conversion Materials emissions Smart City Circular economy Products Smart
Slide 18: Consistently invest 4-5% revenue in R&D annually
Enabler: Invest in Digitalisation Technologies Consistently invest 4-5% revenue in R&D annually > 75% of R&D in Digital Technologies • Advanced networks • Cybersecurity Strengthen dual-use Enhance product • Cloud management software capabilities offerings and solutions • AI & Data/Video Analytics •
Slide 19: Drive growth in digital businesses
Invest in Digitalisation Technologies Drive growth in digital businesses Cloud AI Analytics Cybersecurity • Drive growth in Cloud Expand capabilities in • Expand cybersecurity product Managed and Professional cognitive capacity and suite to capture opportunities Services resource optimisation via fr
Slide 20: Investing in key assets – Our People
People and Culture Investing in key assets – Our People Strengthen technology and engineering core Grow diverse and global talents Foster diversity & inclusion • Women@ST Engineering • Women Support Group 20 |
Slide 21: Strong capacity to fund our journey and deliver dividends
Capacity for Growth Strong capacity to fund our journey and deliver dividends Capacity to Continuous Cost Invest to Capacity for Support Plans Productivity achieve plans Dividends Strong underlying Invest in core Continuous Strong capacity for performance businesses improvement and dividend payout R
Slide 22: Our Ambitions 2026 targets
Our Ambitions 2026 targets Annual revenue to grow at 2 to 3 times Net profits to grow in global GDP growth rate to >$11b1 tandem with revenue Sustainability- linked revenue to grow to >$3b Commercial Aerospace to achieve >$3.5b Other Core in revenue2 Smart City revenue to more Businesses than double
Slide 23: Commercial Cluster
INVESTOR DAY 2021 Commercial Cluster Tan Lee Chew President Commercial 16 November 2021
Slide 24: Global presence and revenue
ST Engineering Commercial Cluster - Our Presence Global presence and revenue USA Others Asia Europe Commercial Cluster 28% 32% 5% 35% of Revenues of Revenues of Revenues of Revenues Commercial Aerospace AMERICAS EUROPE ASIA OTHERS Aerospace MRO Aerospace MRO Aerospace MRO Urban Solutions Aerospace M
Slide 25: Opportunities in technology acceleration and disruption
ST Engineering Commercial Cluster - Opportunities Opportunities in technology acceleration and disruption Ride the recovery in Drive growth in Smart City Commercial Aerospace Aerospace MRO Urban Solutions Air Travel recovery Urbanisation, Digitalisation and Expand capabilities and capacity to Sust
Slide 26: Commercial Aerospace
INVESTOR DAY 2021 Commercial Aerospace Jeffrey Lam President, Commercial Aerospace 16 November 2021
Slide 27: Navigating the Turbulence
Commercial Aerospace Navigating the Turbulence Short-term challenges with recovery anticipated in the next 2 – 3 years FY2021 Forecast Recovery Trajectory 40% 2023 Air travel demand vs. 2019 Domestic travel to 2019 levels 50% 2024 Total available seats vs. 2019 International travel to 2019 levels 10
Slide 28: Taking the Long View
Commercial Aerospace Taking the Long View Healthy long-term demand for air travel and cargo, MRO & services 20 year demand 20 year fleet growth Growth in Services 3.2% CAGR Passenger Fleet Growth 5.9% CAGR 4.0% CAGR 46K 43K US$115b by 2030 Passenger Traffic Growth passenger fleet deliveries MRO 2.6%
Slide 29: Resilience in COVID-19
Supporting Customer’s Recovery Resilience in COVID-19 Continuing investments & customer-focused value creation while outperforming peers Delivering our Solutions Securing Wins Innovating • Redelivered “Head of Version” • $4.4b of new contracts despite • Cargo conversion solutions A321P2F COVID-19 (M
Slide 30: Growth Levers in Lines of Business Groups
Reorganising for Success Growth Levers in Lines of Business Groups Expanding life cycle nose-to-tail solutions supported by new organisation structure Aerostructures & Aviation Asset Aerospace MRO Systems Management Nacelles Airframe Services Freighter Leasing Freighter Engine Services Engine Leasin
Slide 31: Towards a Greener Journey
Sustainability Towards a Greener Journey Becoming a Sustainability-focused business and supplier to our customers Use green energy Freighter Solar power, Conversions 10MWp capacity Extending aircraft useful life Doing Enabling Switch to Electric Our Part Our On-wing Engine Wash Electrification of Cu
Slide 32: Key Strategic Initiatives
Commercial Aerospace Key Strategic Initiatives Strengthen Seed the future OEM and MRO through smart position technologies Invest for growth in P2F and asset management 32 | Acronym: P2F – Passenger-to-Freighter
Slide 33: Strengthen OEM and MRO Position
Commercial Aerospace Strengthen OEM and MRO Position Leveraging global footprint and positioning for future demand Expanding MRO Regional Presence Capability Building Locating close to customers in key aviation hubs, providing >13 million manhours annually Capture acquisition synergies via Nacelle M
Slide 34: Invest for Growth – Asset Management
Commercial Aerospace Invest for Growth – Asset Management Strategic portfolio growth synergising markets & capabilities Consistent Leasing Strategy Execution Scaling Asset Management Capabilities Adding value and business synergies - Asset securitisation - Focus on mid-life aircraft - MRO & conversi
Slide 35: Invest for Growth – P2F
Commercial Aerospace Invest for Growth – P2F Building momentum to increase leadership position in freighter conversion solutions Our Next Generation Conversions* Delivering at Scale Narrowbody P2F 5 redelivered since 2020 >60 Annual Conversions, 3X of current A321P2F capacity >60 on order 6 A320P2F
Slide 36: Seed the Future – Smart Technologies
Commercial Aerospace Seed the Future – Smart Technologies Operationalising autonomy & robotics for internal & customer value creation Increase DroNet Penetration Expand Robotics Use Cases Asset Robotic drilling for Inspection P2F floorgrids Reservoir Shore-ship Inspection Logistics -30% production l
Slide 37: Looking Ahead
Commercial Aerospace Looking Ahead Delivering, Positioning & Investing Grow Partnerships Strengthen and OEM Positioning the Core Expand Airframe & P2F Capacity Scale Leasing Invest for Portfolio Growth Seed the Develop Green Future Products Portfolio 37 | Acronym: P2F – Passenger-to-Freighter
Slide 38: Smart Cities
INVESTOR DAY 2021 Smart Cities Chew Men Leong President, Urban Solutions 16 November 2021
Slide 39: Our Smart City Vision in 2018
Smart Cities Our Smart City Vision in 2018 Pursue Growth Opportunities Needs for Smart Cities enhanced by growing focus on Sustainability 39 |
Slide 40: Smart City – Focus Areas
Smart Cities Smart City – Focus Areas Energy Energy Cybersecurity ManagementManagement Waste and Waste andPublic Water Water Security Rail Cybersecurity Rail Satcom Public Road Security Road Cloud Over 700 projects in more than 130 cities Data Analytics Digital & Artificial Connectivity Autonomous I
Slide 41: Good progress despite impact from COVID-19
Smart Cities - Significant Wins and Successes Good progress despite impact from COVID-19 New Market Expansion New Business Areas Queensland’s Cross River Rail Rio de Janerio Kaohsiung MRT Land Transport Authority Public Agency 1st Mobility Rail win >300k Smart Street Lighting Red Line Extension Deli
Slide 42: Urbanisation continues as COVID-19 drives digitalisation & sustainability
Smart Cities - Megatrends & Opportunities Urbanisation continues as COVID-19 drives digitalisation & sustainability Rise in number of megacities 01 Urbanisation Resiliency in energy and water Seamless multi-modal mobility Megacities (Cities with >10m population) Sensemaking with AI/DA 02 Digitalisat
Slide 43: Accelerating growth with new capabilities
Doubling down on Smart Cities Accelerating growth with new capabilities Acquisitions & JV Building new Acquired for €250m • JV with SP Group capabilities To acquire at US$2.68b • SG’s 1st fully digital Software Defined Network (SDN) for Service Providers Acquired for US$20m Venture 2017 2018 2019 20
Slide 44: Positioning for Smart Mobility
Positioning for Smart Mobility Accelerating growth with new capabilities Lines of Business Services Growth Areas driven C3 & Smart Asset Management by Digitalisation Rail and Bus Road Traffic Metro System System Electronics Management Autonomous Smart Parking Fleet Congestion Digital Mobility Vehicl
Slide 45: ST Engineering to acquire TransCore for US$2.68b
Positioning for Smart Mobility ST Engineering to acquire TransCore for US$2.68b Creating a Smart Mobility market leader and accelerating Smart City growth Combined portfolio positions us as a Smart Mobility Market Leader • U.S. market leader in Electronic Toll Collection (ETC) solutions and Intellig
Slide 46: Smart Environment enables greener & more sustainable cities
Positioning for Smart Environment Smart Environment enables greener & more sustainable cities Enhance Operational & Energy Efficiencies Support Transition to Electric Fleet Utilities | Buildings | Estates | Campuses | Cities PTO | Commercial Fleet • Platforms to monitor, communicate and control • En
Slide 47: Smart Security solutions for Smart Cities
Positioning for Smart Security Smart Security solutions for Smart Cities Integrated Security Smart Sense & Response Smart Cybersecurity Management Platform for City Management Intelligent Sensors Connected Protect Detect Respond Recover Data Command Centre Next Gen Autonomous Response Systems System
Slide 48: Industry leading Satcom ground segment technology provider
Positioning for Smart Digital Connectivity Industry leading Satcom ground segment technology provider Acquisition of Newtec Group NV 1 Platform of choice with Unique ultra-high throughput capabilities & Market leadership across key segments industry-leading bandwidth efficiency technology Enlarged I
Slide 49: Well-positioned to capitalise on growth opportunities
Positioning for Smart Digital Connectivity Well-positioned to capitalise on growth opportunities Significant Increase in Capacity Development of Next-Generation Platform • >24,000 new satellites to be launched by 20301 (GEO / MEO/ LEO) End-to-end network • Reduced bandwidth costs and lower latency m
Slide 50: Digital Business as a new growth pillar
Positioning for Digital Business Digital Business as a new growth pillar OT / IT Cyber Services & Products Cloud Data Analytics Leverage strong track Applications record in Cyber, Cloud & Analytics Quantum Professional & Managed Services Artificial Build deep capabilities Cryptography for Hybrid & M
Slide 51: Accelerating Smart City growth
ST Engineering – Smart City Focus Accelerating Smart City growth Smart Environment & Smart Mobility Sustainability • Building a Smart Mobility • Enabling smarter utilities market leader • Harness mobility data, and infrastructure Capture growth at • Support fleet operators’ digital payment capabilit
Slide 52: Sustainability
INVESTOR DAY 2021 Sustainability Cheryl Chan Group Chief Strategy and Sustainability Officer 16 November 2021
Slide 53: Global trends shaping the role of sustainability in businesses
Sustainability Global trends shaping the role of sustainability in businesses Business Implications Energy Transition Increase Develop decarbonisation energy efficient effort infrastructures Global Warming Leverage Business technology to continuity improve response Resource Scarcity 53 | Urbanisatio
Slide 54: Our approach to sustainability-linked revenue
Sustainability Our approach to sustainability-linked revenue Solve urban Circular Reduce GHG and city issues economy emissions 54 |
Slide 55: Our products and solutions begin with sustainability in mind
Enabling Our Customers Our products and solutions begin with sustainability in mind Energy Management Congestion Management Smart Cities Smart Cities • IoT • ITS (Road/Rail) • Smart Utilities & Buildings • Tolling Solutions • Waste & Water Treatment • Congestion Pricing Sustainability- linked Decarb
Slide 56: P2F conversions reduce environmental impact and improve asset efficiency
Enabling Our Customers: Commercial Aerospace P2F conversions reduce environmental impact and improve asset efficiency Useful Life Extension Automation Recycling passenger Increase productivity aircraft to freighters for and reduce material 2nd lease of life consumption New generation, One-stop Fuel
Slide 57: Reduce urban traffic congestion & enable smart street lighting
Enabling Our Customers: Smart Mobility & Smart Street Lighting Reduce urban traffic congestion & enable smart street lighting with our smart integrated solutions and predictive maintenance capabilities >20% reduction in traffic Urban Traffic Management congestion Incident detection, >50% reduction i
Slide 58: DigiShip: Design and build more sustainable vessels for the future
Enabling Our Customers: Marine DigiShip: Design and build more sustainable vessels for the future Green Ship Connected Ship ↓ GHG emissions Enhanced connectivity with robust with higher power cybersecurity systems and energy efficiency Autonomous Operations Reduce manpower and Smart Maintenance phys
Slide 59: Reduce consumption of resources and GHG emissions through digitalisation
Enabling Our Customers: Training & Simulation Systems Reduce consumption of resources and GHG emissions for live events through digitialisation Significant reduction in GHG emissions versus live training Air Value-add training flexibility Land regardless of weather conditions Advanced simulation sys
Slide 60: Exploring new opportunities in sustainability
Enabling Our Customers: New Opportunities Exploring new opportunities in sustainability System Materials Products Solutions
Slide 61: Doing Our Part
Doing Our Part Environment Manage our 2010 2020 2030 environmental footprint and build trust with our (Baseline) (Current) (Target) 50% community 164 117 ktCO e 82 ktCO2e GHG ktCO2e 2 Social Doing our part Employees Partners Community Governance 61 |
Slide 62: Sustainability is value creation and core to our business
ST Engineering’s Sustainability Commitment Sustainability is value creation and core to our business Seize new opportunities Continual efforts to halve Committed to Doing in sustainability and GHG emission levels by our Part and Enabling enable customers to 2030 and have our Customers in our benefit
Slide 63: Our Corporate Purpose
Our Corporate Purpose Harnessing technology and innovation to enable a more secure and sustainable world 63 |
Slide 64: International Defence
INVESTOR DAY 2021 International Defence Ravinder Singh Group Chief Operating Officer (Technology & Innovation), President, Defence & Public Security 16 November 2021
Slide 65: Overview of Defence & Public Security (DPS) – Major Lines of Business
Overview of Defence & Public Security (DPS) – Major Lines of Business Digital Land Defence Cyber Marine Systems Systems Aerospace Digital Solutions Cyber Products Platform & MRO Shipbuilding, Engineering & Services Services Repair & MRO Solutions Cloud Solutions Cybersecurity Weapon Environmental Ai
Slide 66: DPS Revenue FY2020
DPS Revenue FY2020 By Business Categories Public Security & Critical Info Infrastructure 30% 70% Defence 66 |
Slide 67: Successes in Global Market
Successes in Global Market Cold-Weather All Terrain Vehicle Offshore Patrol C130 MRO (RAFO/Gulf Prototype for US Army Vessel for UAE Navy Air/Lynden) Polar Security Cutter World leader for Naval MRO for US Coast Guard 40mm ammunition (sold to 44 countries) 67 |
Slide 68: Global Market Trends and Opportunities
Global Market Trends and Opportunities Trends Military transformation Upgrade / Markets increasingly Attractive through technology replacement require localisation, Addressable Market innovation of platforms technology transfers Opportunities and offsets ~ US$5b Over next 5 years Accelerated Strong
Slide 69: Growing International Defence Business
Growing International Defence Business Enhanced Future Operating Manned- Situational Interoperability Concepts Unmanned Awareness & across Decision Making Air-Land-Sea Teaming Technology Data Analytics Cybersecurity 5G & Autonomous Sustainability Enablers & And Cloud Connectivity Technology Product
Slide 70: Addressable Markets for International Defence
Addressable Markets for International Defence Europe & MENA Rest of US$1.3b the World U.S. US$0.5b US$3.2b LATAM Armoured Vehicles Armoured Vehicles Armoured Vehicles Hybrid Electric Command & Control Command & Control Command & Control Naval Ships Naval Ships Naval Ships Munitions Munitions Munitio
Slide 71: Technology & Innovation
INVESTOR DAY 2021 Technology & Innovation Dr Lee Shiang Long Group Chief Technology & Digital Officer 16 November 2021
Slide 72: The Bedrock of ST Engineering
Technology & Innovation The Bedrock of ST Engineering REALISING SUSTAINABILITY DRIVING BUSINESS GROWTH AGILE INNOVATION
Slide 73: Technology & Innovation Strategy
Technology & Innovation Technology & Innovation Strategy Business Driven Technology / Innovation Digital Land Defence Urban Commercial Cyber Marine Satcom Roadmaps Systems Systems Aerospace Solutions Aerospace Strong Technology, 4 – 5% of Revenue > 75% of R&D ~ 16,000 Engineers Engineering Annual R&
Slide 74: R&D Activities and Accounting Classifications
Definition R&D Activities and Accounting Classifications R&D Funding Classification in Activity Sources Financial Statement Internal / 1. Research Projects shown as R&D expenses External Development Internal / 2. Projects / IP Rights shown as Intangible Assets External and Licenses Customer funded 3
Slide 75: R&D Achievements Contribute to Business Outcomes
R&D Achievements Contribute to Business Outcomes Cybersecurity Cybersecurity AV Bus Autonomast R&D with universities led to Autonomous technology successfully Jointly funded by Maritime Port development of customised cyber tested in Singapore Authority (Singapore) and Mitsui detection AI algorithms
Slide 76: Greater & Quicker Access to Technology and Talents
Technology & Innovation Greater & Quicker Access to Technology and Talents Strong Technology, Engineering & Innovation Community Drive Synergy & Broaden Outreach to Deepen Capability Building Leverage External Capabilities Business-driven Core Strategic Research ST Engineering Product Engineering Te
Slide 77: Drive Synergy and Deepen Capability Building
Technology & Innovation Data Drive Synergy and Analytics Cybersecurity Deepen Capability Building Video Robotics & Analytics AV Bus Capabilities to drive Business Outcomes Dual-use capabilities that benefit both Commercial and Defence businesses IoT / Future Cloud Communications 77 | Green Technolog
Slide 78: Accelerate Innovation through Broader Ecosystem
Technology & Innovation Accelerate Innovation through Broader Ecosystem Focus on innovation and development of technologies with real-world impact Research Translation @ R&D collaborations with ST Engineering universities, research institutes, Business Areas government agencies and start- Tech & Eng
Slide 79: Accelerating Innovation
Technology & Innovation Accelerating Innovation Co-creating differentiated products & building new businesses via corporate venture investing ST Engineering Ventures – Dedicated Corporate Venture Capital Unit Specialised Domains Global Outreach US$150m Autonomous Systems, Cyber, Based in Singapore,
Slide 80: Technology and Innovation for Sustainable Business Growth
Technology & Innovation Technology and Innovation for Sustainable Business Growth REALISING SUSTAINABILITY DRIVING BUSINESS GROWTH AGILE INNOVATION
Slide 81: Funding Capacity for Growth
INVESTOR DAY 2021 Funding Capacity for Growth Cedric Foo Group Chief Financial Officer 16 November 2021
Slide 82: 2018 Investor Day Focus Growth Areas
Recap 2018 Investor Day Focus Growth Areas 82 |
Slide 83: Performing on track in 2019 before COVID-19 hit
Performing on track in 2019 before COVID-19 hit Revenue (S$b) ROE (%) COVID-19 COVID-19 7.9 26.0 6.7 6.7 7.2 +2% 6.5 22.2 22.7 22.0 22.8 vs 1H’20 3.7 2016 2017 2018 2019 2020 1H 2021 2016 2017 2018 2019 2020 Net Profit (S$b) Annual TSR for Past 3 Years COVID-19 16.9% ST Engineering 0.58 11.5% STI 0.
Slide 84: Update on 2018 Investor Day Ambitions
Update on 2018 Investor Day Ambitions Our 2022 Ambitions Achievement timeline Two-thirds of our revenue growth will be On Target from global markets (By 2022) Smart City revenue of S$1b to more than ~1 year delay double by 2022 Core and other businesses CAGR 2 to 3 times ~1 year delay global GDP gro
Slide 85: Our Journey
Our Journey Operations Financial Investments Capacity • Portfolio management • Continuous improvement • Strong underlying - Acquisitions and innovation performance - Cessation of - Shared services • Innovative financing solutions business / - Joint procurement • Resilient balance sheet divestments •
Slide 86: Portfolio Rationalised
Our Journey Portfolio Rationalised Specialty Vehicles Satcom (JHK) (Newtec) Aircraft Interiors Cessation of business (Volant) / Divestment Pilot Training (US) Satcom Investment Completed (AAA & VTAS) (Glowlink) / to be completed AMM (Aeria - US) Road Const Nacelles Composite, Equip (LBI) (MRAS) Airc
Slide 87: Portfolio Management
Our Journey Portfolio Management Major Acquisitions 2018/19 2019 2021/22 Move up the Solidify Acquire market value chain leadership leader in tolling Extensive channel network in US 87 |
Slide 88: Divestment
Our Journey Divestment Asset Backed Securitisation Unlock value First Aircraft Engine Lease securitisation originated by lessor headquartered in Asia Capital recycling Scale up management and MRO fees with minimal capital employed 88 |
Slide 89: Continuous Improvement and Innovation
Our Journey Continuous Improvement and Innovation Shared services centre Maintaining focus on procurement savings Other productivity and process improvement 89 |
Slide 90: Strong Underlying Performance
Our Journey Strong Underlying Performance Robust Order Book Order book trends ($b) 18.2 15.3 15.4 Order Book 3Q2021 $18.2b 13.2 13.2 11.6 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 Sep-21 (COVID-19) 90 |
Slide 91: Innovative Financing Solution
Our Journey Innovative Financing Solution U.S. Commercial Paper Programme 1st non-bank issuer in Singapore 91 |
Slide 92: Resilient Balance Sheet
Way Forward Resilient Balance Sheet Credit rating post COVID-19 / TransCore announcement • AAA (credit watch negative) by S&P1 • Aaa (outlook negative) by Moody’s1 1As of reports dated 6 Oct 2021 for Moody’s and 7 Oct 2021 for S&P 92 |
Slide 93: Strong Capacity for Dividend Payout
Way Forward Strong Capacity for Dividend Payout • High retained earnings • Strong cashflow • Resilient balance sheet 93 |
Slide 94: Our Ambitions 2026 targets
Our Ambitions 2026 targets Annual revenue to grow at 2 to 3 times Net profits to grow in global GDP growth rate to >$11b1 tandem with revenue Sustainability- linked revenue to grow to >$3b Commercial Aerospace to achieve >$3.5b Other Core in revenue2 Smart City revenue to more Businesses than double
Slide 95: Thank you
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Singapore Technologies Engineering — Investor Day (November 2021) on 6ix