SINGAPORE TECHNOLOGIES ENGINEERING LTD 27th Annual General Meeting
Vincent Chong
Group President & Chief Executive Officer
26 April 2024
Our Aspiration and Corporate Purpose
Our Aspiration
Global technology, defence and engineering powerhouse
Our Corporate Purpose
Harness technology and innovation to enable a more secure and sustainable world
2
Financial Year 2023
Highlights
Achieved strong revenue and net profit
2023 Review
Significant financial milestones despite challenging business environment
Revenue ($b)EBIT ($m)
Net Profit ($m)
9.0
10.1 | 32R3 | 946 |
+12% | ||
571
535
24R3610
+10% +24%
7.7
735 | +24% | +40% | |
674 | |||
57R2 | BOP1 |
205R1
915
177 R1
42R2
BOP1
586
678
469
493
394
2021 | 2022 | 2023 | 2021 | 2022 | 2023 | 2021 | 2022 | 2023 |
COVID-19 related Govt Support | ||
R1 | R2 |
4 1 Base Operating Performance
Pension restructuring gain & | |||
R3 | |||
TransCore transaction & integration | |||
SatixFy divestment loss & Satcom severance costs
2023 Review
Order book remains robust; provides revenue visibility
Order Book ($b)
27.4
23.0
19.3
1.8
17.5
- $14.8b new contract wins
+19% | • Order book |
of $27.4b as | |
at 31 Dec 2023 | |
• $7.9b expected to be | |
delivered in 2024 |
Dec-21 | Dec-22 | Dec-23 |
U.S. Marine (Divested in Nov 22)
5
2023 Review
Revenue growth from all Segments
Commercial Aerospace | Defence & Public Security | Urban Solutions & Satcom | |||||
Revenue ($m) | Revenue ($m) | Revenue ($m) | |||||
4,272 | +6%1 | ||||||
U.S. | |||||||
Marine | |||||||
+31% | 249 |
4,252 | +10% | |||||||
3,905 | 4,023 | |||||||
2,991 | ||||||||
1,772 | 1,944 | |||||||
2022 | 2023 | 2022 | 2023 | 2022 | 2023 |
6 | 1 | Excluding U.S. Marine FY2022 revenue of $249m |
Delivered on 2023 Focus Areas
Business
- Achieved strong performance
- Secured significant contract wins & robust order book
- Continued to invest for the future
7 | 1 DEI = Diversity, Equity & Inclusion |
Innovation
- Invested in technology, innovation and digitalisation
- Continued sustainability focus
People
- Enhanced DEI1 initiatives & talent pipeline
- Strengthened community outreach
2023 Review
Commercial Aerospace: Revenue increased 31% y-o-y
- Invested during COVID downturn, emerged stronger with higher MRO capacity - new hangars in Pensacola, US & Changi Creek, SG
- Grew MRAS nacelle business in line with A320neo deliveries
- Expanded portfolio - LEAP-1A/1B1 engines MRO and AirFish family
of Wing-in-Ground (WIG) craft
- Boosted P2F2 conversion capacity with 3rd party modification sites in Istanbul, Turkey & Tianjin and Chengdu, China
- Increased Aviation Assets Under Management (AUM) to >US$2b
8 | 1 LEAP = Leading Edge Aviation Propulsion, 2 P2F = Passenger-to-Freighter |
2023 Review
Urban Solutions: TransCore investment achieved earnings accretion
-
Achieved earnings accretion ahead of plan for investment in TransCore, and secured multiple wins for All Electronic
Tolling Systems - Advanced Smart Mobility leadership position
- Higher market share in Kaohsiung MRT segment
(cumulative 2022 - 2023 contract value ~$1.8b1)
- Other notable wins in Sydney, Toronto, Chennai,
Bangkok, Abu Dhabi
- Secured first international airport security win - Dhoho Kediri International Airport in Indonesia
9 | 1 | $1.4b Kaohsiung MRT Yellow Line project (Sep 22) and $430m Kaohsiung MRT Red Line South Extension project (Mar 23) |
2023 Review
Satcom: Transformation for growth and be future-ready
Near term headwinds: Weakness in Satcom business performance
Organisation right-sizing in 2023 resulting in lower cost base
Next generation platform (NGP) with multi-orbit compatibility & cloud virtualisation on track in line with product convergence strategy; brand unveiled in Mar 2024
Service innovation: Successful POC1 on inter-operability & cloud deployments and expansion into adjacent markets
2024 Focus:
- Continuing cost optimisation and process improvements
- Improving revenue quality through pricing and contract management
10 1 Proof of concept
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ST - Singapore Technologies Engineering Ltd. published this content on 26 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 April 2024 14:20:31 UTC.
