22 nd Annual General Meeting 18 April 2019
Resilient 2018 results, impacted by one-offs
Co-confidential2 |
1
0
4
2
3
5
7
6
8
$b
2017 2018
6.5 6.7+3%
Revenue (S$b) Net Profit (S$m)
503 494
0
100
200
300
400
500
600
$m
2017 2018
-2%
Resilient 2018 results, impacted by one-offs
Co-confidential3 |
1
0
4
2
3
5
7
6
8
$b
2017 2018
6.5 6.7+3%
Revenue (S$b) Net Profit (S$m)
503 494
0
100
200
300
400
500
600
$m
2017 2018
-2% • Strong underlying
operating performance
• One-off charges to
rationalise portfolio
• Investments in growth
initiatives and capabilities
Exclude one-off charges
482
527+9%
Value creation
Co-confidential4 |
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
20182016 2017
5.5
11.5
Dividend yield
Capital gain
Initiatives since 2016Positioning 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
Strengthen core: Acquired MRAS
Co-confidential7 |
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 CowlInlet
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
20142013 20182015 2016 2017
+49%
~S$750mNew orders in 2H 2018
Marine 2013-2018 Order BookOrder 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 achievements2
Rollout
EV buses
in Singapore
CES 2019
Award Honoree
in Las Vegas
Ultra-Slim
2FA Encryption
Predictive
Maintenance
99.2% Accuracy
Accuracy predicting
Train Door Failure
in Middle East
AI powered
Traffic Management
System
Launched
Logistics RobotsMEXICO
Metallorum
Refinery
COLOMBIA
Electrical
Substation
Kuwait
Ministry of
Foreign Affairs
New Markets & Endorsements
Rail products
in 45 cities
Breakthrough
First Smart Street Lighting
Foray into USA
11 |
Pursue growth: Acquiring Newtec2
• 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
MaritimeAeronautical Land Enterprise
Cell Backhaul Consumer Broadcast
Key S
atc
om
ca
pa
bilit
ies
Ke
y c
us
tom
er
se
gm
en
tsS
trate
gic
pa
rtn
ers
hip
s
END-USERS
GROUND SEGMENT
LEO
MEO
GEOCONSTELLATIONS
SATELLIITE MANUFACTURERS
IP
Antennas,
Professional Equip
Hubs &
Line cards
Network
Mgt. System RemotesReference Design,
Licensing
Newtec’s value
proposition
13 |
Pursue growth: Int’l Defence BusinessAttractive 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
& DiagnosticsEmergency /
SafetyRobotics
* 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