22 nd Annual General Meeting 18 April 2019 Resilient 2018 results, - - PowerPoint PPT Presentation

22nd Annual General Meeting

18 April 2019

Resilient 2018 results, impacted by one-offs

Co-confidential 2 |

1 4 2 3 5 7 6 8 $b 2017 2018 6.5 6.7 +3%

Revenue (S$b) Net Profit (S$m)

503 494 100 200 300 400 500 600 $m 2017 2018

• 2%

Resilient 2018 results, impacted by one-offs

Co-confidential 3 |

1 4 2 3 5 7 6 8 $b 2017 2018 6.5 6.7 +3%

Revenue (S$b) Net Profit (S$m)

503 494 100 200 300 400 500 600 $m 2017 2018

• 2%
• Strong underlying
• perating performance
• One-off charges to

rationalise portfolio

• Investments in growth

initiatives and capabilities

Exclude one-off charges 482 527 +9%

Value creation

Co-confidential 4 |

Return on capital employed (%)

0% 4% 8% 12% 16% 2017 % 2016 13.6 12.0 2018 12.7

Total shareholder return (%)

7.3 0.9 7.1 4.8 4.6 4.4 12.1 2018 2016 2017 5.5 11.5 Dividend yield Capital gain

Initiatives since 2016

Positioning for growth

Strategy Synergies Portfolio mgt Invest for growth

Group strategy office Aligned M&A with Group strategy Formed Management Committee Set up Strategy & Finance Committee Rationalised subsidiary Boards Legal Entity Rationalisation Strengthened Group Marketing Brand Harmonisation Setting up Group Risk & Assurance Shared Services Strategic Tech Centres Treasury Centre Divested China Speciality Vehicles biz Divested India Road Const Eqm biz Divested US Pilot Training biz Acquisition of MRAS and Newtec Strengthened Talent Development Framework Open Lab: Innosparks Corporate Venture Capital Group Digital Office New Enterprises & Ventures Restructured ST Dynamics to Future Tech Centre Rationalised Brazil Road Const Eqm and Automotive MRO biz

Good progress with early wins

Int’l Defence Biz

Strengthen core: Acquired MRAS

Co-confidential 7 |

1

“Strategic acquisition for the group which will reap benefits in the long term, besides being earnings accretive”

OCBC Investment Research

Exhaust Plug Exhaust Nozzle Transcowl / Blocker Doors Trust Reverser Actuation System Fan Cowl Inlet Engine Build-Up

Nacelle Engine

Major nacelle components

• Largest acquisition

for the Group

• Focused strategy to

upscale capabilities

• Well received by

market

Strengthen core: Building order books

1

2014 2013 2018 2015 2016 2017 +49% ~S$750m New orders in 2H 2018

Marine 2013-2018 Order Book

Order Book Yr End 2018 $13.2b ~$4.9b expected to be delivered in 2019

Strengthen core: New Investments

1

Expansion of MRO complex, Pensacola, Florida, USA

Total investment: US$210m Our share of investment: US$35m

2nd Composite panel mfg. plant, Kodersdorf, Saxony, Germany

Total investment: EUR 38m 20% external funding

10 |

Pursue growth: Smart City achievements

2

Rollout

EV EV buses buses

in Singapore CES CES 20 2019 19 Aw Award Hon Honoree in Las Vegas

Ult Ultra ra-Sl Slim 2FA En Encry rypti tion Predictive Maintenance

99.2% Accuracy

Accuracy predicting Train Door Failure in Middle East

AI po AI power ered ed

Traffic Management System Launched

Lo Logistics gistics Rob

• bot
• ts

MEXICO Metallorum Refinery COLOMBIA Electrical Substation Kuwait Ministry of Foreign Affairs

New Markets & Endorsements

Rail products in 45

45 citi cities es

Breakthrough

Fir First st Smart Street Lighting

Foray into USA

11 |

Pursue growth: Acquiring Newtec

2

• Owns IPs & patents for key

Satcom technologies

• Designs, manufactures and

sells Satcom equipment

• Leading Satcom

equipment provider

About Newtec

12 |

• Revenue and cost

synergies

Acquiring Newtec to reinforce Satcom business

• Strong position for

future growth

• Differentiated and

complementary IP

• Earnings accretion

expected from Year 2

Maritime Aeronautical Land Enterprise Cell Backhaul Consumer Broadcast

Key Satcom capabilities Key customer segments Strategic partnerships

END-USERS GROUND SEGMENT

LEO MEO GEO

CONSTELLATIONS SATELLIITE MANUFACTURERS IP

Antennas, Professional Equip Hubs & Line cards Network

• Mgt. System

Remotes Reference Design, Licensing

Newtec’s value proposition

13 |

Pursue growth: Int’l Defence Business

Attractive market but competition intense

Next-Generation Armoured Fighting Vehicle TERREX 2 Auxiliary Personnel Lighters Logistic Support Vessels

2

World class products; Enhance delivery to global markets Secured new orders; Building pipeline

Medium Unmanned Surface Vessel Land Platforms

14 |

Priorities for 2019

Strengthen Core

1

Pursue Growth

2 4 5

Nurture Capabilities Develop new Businesses

3 Integrate Acquisitions

15 |

New Enterprises & Ventures

Adopt global mind-set and context 1

Formulate strategy Build capability to execute

Apply engineering expertise in healthcare settings Collaborate with Singapore ecosystem Invest to operate

Build & Operate A Global HealthTech Business

• Enhanced domain and

functional expertise

• Established HealthTech

network

• Active business development

2 3 4

Pursue our aspiration

16 |

Current participation in HealthTech business

• Hospital C2

Command Centre

• Integrated Security

Management

• Delivery Robots
• Medical Robots*
• Soldiers Vital Signs

Analytics

• AI Wound Analytics*

Healthcare IT

• Emergency

Response System

• Infrared Fever

Scanner Solution

Medical Devices & Diagnostics Emergency / Safety Robotics

* Through investment in HealthTech startups

17 |

Our 5-Year Plan (2018 – 2022)

Smart City revenue (S$1b) to more than double Group net profits grow in tandem with revenues Core and other businesses grow at 2 – 3x global GDP growth rate 2/3 of Group revenue growth from global markets

Thank You