Singapore Technologies Engineering Ltd · SGX:S63
Singapore Technologies Engineering — FY2001 Earnings Presentation
124 slides from Singapore Technologies Engineering's earnings presentation, Jun 14, 2002
Slide 1: FY2001 Steady Overall Performance
FY2001 Steady Overall Performance Engineering Our Future
Slide 2: Scope of Briefing
Scope of Briefing w Financial Highlights for Full Year 2001 w Corporate Review w Sectoral Review & Outlook w Strategic Directions Engineering Our Future
Slide 3: Financial Highlights
Financial Highlights for the year ended 31 December 2001 w Good sales growth in 2001, especially in Electronics and Land Systems sectors w Returns boosted by investment income w Operating margins remain healthy with PBT at 18% of sales w Healthy operating cash flows generated w Proposed total gross
Slide 4: Financial Highlights
Financial Highlights for the year ended 31 December 2001 $m 2001 2000 % Turnover 2,470 2,259 9 Investment, interest and other income 126.0 104.9 20 Profit before tax 440.1 412.5 7 Profit attributable to Shareholders before EI 350.1 288.1 22 Earnings per share (cents) 12.2 10.1 20 Economic value adde
Slide 5: Financial Highlights
Financial Highlights for the year ended 31 December 2001 $m 9M2001 4Q2001 FY2001 Turnover 1,879 591 2,470 Investment, interest and other income 90.7 35.3 126.0 Profit before tax 346.5 93.6 440.1 Profit attributable to Shareholders before EI 252.8 97.3 350.1 Engineering Our Future
Slide 6: Financial Highlights
Financial Highlights for the year ended 31 December 2001 w Defence sales constituted 58% or $1,430 million of total sales w Total Order book was $5.2 billion at end December 2001 of which $1,839 million will be delivered in 2002 Engineering Our Future
Slide 7: Group Turnover by sector
Group Turnover by sector $m 2001 2000 % Aerospace 1,031 42% 957 42% 8 Electronics 489 20% 412 18% 19 Land Systems 603 24% 526 23% 15 Marine 335 14% 358 16% (7) Others 12 - 6 1% 98 Group 2,470 100% 2,259 100% 9 Engineering Our Future
Slide 8: Group Turnover by region - FY2001
Group Turnover by region - FY2001 2001 2000 $m Aero Elect Land Marine Other Group % % Asia 504 473 578 265 12 1,832 75 75 USA 426 5 - 18 - 449 18 18 Europe 40 6 17 45 - 108 4 4 Others 61 5 8 7 - 81 3 3 Group 1,031 489 603 335 12 2,470 100 100 Engineering Our Future
Slide 9: Group Turnover
Group Turnover Legend for 1999 to 2001 $m 3,000 4th Quarter 3rd Quarter 2,700 4% 2,470 C AGR 1 2nd Quarter 2,400 2,259 1st Quarter 2,100 591 1,764 676 1,800 1,662 1,477 1,500 446 601 807 493 1,200 395 797 900 587 501 600 531 680 855 300 589 691 392 0 1997 1998 1999 2000 2001 Engineering Our Future
Slide 10: Profit Before Tax by sector
Profit Before Tax by sector $m 2001 2000 % Aerospace 225.7 51% 219.0 53% 3 Electronics 52.2 12% 46.6 11% 12 Land Systems 97.1 22% 84.7 21% 15 Marine 62.6 14% 63.9 16% (2) Others 2.5 1% (1.7) (1%) NM Group 440.1 100% 412.5 100% 7 Engineering Our Future
Slide 11: Profit Before Tax / Sales by sector
Profit Before Tax / Sales by sector $m 2001 2000 Aerospace 22% 23% Electronics 10% 11% Land Systems 16% 16% Marine 19% 18% Group 18% 18% Engineering Our Future
Slide 12: Profit Attributable to Shareholders
Profit Attributable to Shareholders $m 2001 2000 % Aerospace 168.0 48% 151.0 53% 11 Electronics 37.0 11% 30.6 11% 21 Land Systems 97.8 28% 64.9 23% 51 Marine 45.6 13% 43.8 15% 4 Others 1.7 - (2.2) (2%) NM Group 350.1 100% 288.1 100% 22 Engineering Our Future
Slide 13: Profit Attributable to Shareholders
Profit Attributable to Shareholders (before EI) Legend for 1999 to $m 2001 only 400 4th Quarter 350.1 350 3rd Quarter R 31% 2nd Quarter G 288.1 300 CA 97.3 1st Quarter 250 86.8 200.5 200 85.9 154.7 55.3 69.1 150 120.8 75.6 47.9 83.8 100 60.6 67.4 51.5 50 79.1 83.1 60.2 45.8 64.8 0 1997 1998 1999 200
Slide 14: EBITDA / EBIT - Group
EBITDA / EBIT - Group $m 2001 2000 % EBITDA 357.3 344.6 4 Depreciation & amortisation (75.8) (76.1) (1) EBIT 281.5 268.5 5 Investment, interest and other income 126.0 104.9 20 Interest paid (3.2) (4.0) (20) Operating profit 404.3 369.4 9 Associated companies 35.8 43.1 (17) Profit before tax 440.1 41
Slide 15: EBITDA / EBIT - by sector
EBITDA / EBIT - by sector 2001 $ m Group Aero Elect Land Marine Others EBITDA 357.3 196.9 49.1 61.1 58.7 (8.5) Depreciation & amortization (75.8) (35.3) (7.2) (19.0) (13.8) (0.5) EBIT 281.5 161.6 41.9 42.1 44.9 (9.0) Investment, interest and other income 126.0 35.1 11.1 48.0 21.0 10.8 Interest paid
Slide 16: Investment Income
Investment Income $ ‘000 2001 2000 % Aerospace 6,694 22% 11,389 77% (41) Land Systems 9,729 31% 1,851 12% 426 Marine 14,700 47% 1,618 11% NM Group 31,123 100% 14,858 100% 109 Engineering Our Future
Slide 17: Interest and Other Income
Interest and Other Income $ ‘000 2001 2000 % Aerospace 28,379 30% 30,655 34% (7) Electronics 11,098 12% 11,150 12% - Land Systems 38,230 40% 32,219 36% 19 Marine 6,311 7% 7,882 9% (20) Others 10,908 11% 8,128 9% 34 Group 94,926 100% 90,034 100% 5 Engineering Our Future
Slide 18: Income from Associated Co / JV
Income from Associated Co / JV $ ’000 2001 2000 % Aerospace 32,062 89% 39,022 91% (18) Electronics (867) (2%) (220) (1%) (294) Land Systems 7,141 20% 6,179 14% 16 Marine (3,351) (9%) (1,915) (4%) (75) Others 847 2% - - NM Group 35,832 100% 43,066 100% (17) Engineering Our Future
Slide 19: Balance Sheet
Balance Sheet $m 31 Dec 2001 31 Dec 2000 Fixed assets 366 349 Associated companies and joint ventures 176 154 Long term investments 647 645 Intangible assets 1 - Loan receivables, non-current 2 5 Net current assets 971 971 2,163 2,124 Non-current liabilities (851) (975) 1,312 1,149 Share capital and
Slide 20: Cash & Cash Equivalents
Cash & Cash Equivalents $m Dec 2001 Dec 2000 % Fixed Deposit 757 697 9 Bank balances and cash 105 122 (14) Amounts under fund Mgt 430 546 (21) Floating rate notes 601 610 (1) Short term loan to : Related corporation 761 643 19 Bank Overdraft (1) (1) - Group 2,653 2,617 1 Engineering Our Future
Slide 21: Cash Flow Statement
Cash Flow Statement $m 31 Dec 2001 31 Dec 2000 % Cash flow from : Operating activities 300 517 (42) Investing activities (70) 181 (139) Financing activities (195) (190) (3) Net increase in cash & cash equivalents 35 508 (93) Cash & cash equivalents at beginning of year 2,617 2,108 24 Exchange differ
Slide 22: EVA by sector
EVA by sector $m 2001 2000 % Aerospace 112.2 110.1 2 Electronics 24.5 23.0 7 Land Systems 25.0 41.8 (40) Marine 28.9 38.7 (25) Others (29.7) (24.3) (22) Group 160.9 189.3 (15) Engineering Our Future
Slide 23: Dividend Declared
Dividend Declared 1999 2000 2001 % $’000 % $’000 % $’000 Ordinary (Gross) 23 65,330 25 71,753 25 71,956 Special (Gross) 70 198,829 70 200,907 83 238,895 Total 93 264,159 95 272,660 108 310,851 No. of shares (‘000) 2,840,416 2,870,106 2,878,249 Ave Share Price $2.55 $2.69 $2.57 Dividend Yield 3.6% 3.
Slide 24: Dividend Issues
Dividend Issues Factors affecting payment of dividend : a) Section 403 of Companies Act - Retained Earnings b) Section 44 of Income Tax Act - Tax Credit balance c) Cash Availability d) Exempt Income 2 Tiers Restriction Engineering Our Future
Slide 25: Dividend Constraints
Dividend Constraints ST Engg Local SBAs Overseas SBUs w S44 - take 1 year to step up w Withholding tax e.g. 30% in US w Associated companies - share of equity accounting w Cash for expansion and growth in US w Retained earnings w Exempt income 2 tiers restriction Engineering Our Future
Slide 26: Effect of Change in A/g Std on Shareholders Funds
Effect of Change in A/g Std on Shareholders Funds NPAT Shareholders ROE NTA Per Funds Share $m $m % ¢ 2000 288.1 912 31.6 31.9 2000 288.1 1,125 25.6 39.4 (with change in a/g std) 2001 350.1 1,287 27.2 44.7 (with change in a/g std) Engineering Our Future
Slide 27: Creating Shareholders' Value
Creating Shareholders’ Value CAGR 21% $’M 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 - 1997 1998 1999 2000 2001 Market Capitalisation 3,568 4,352 7,324 7,967 6,764 Market Cap + Dividends Paid 3,618 4,596 7,831 8,748 7,856 Engineering Our Future
Slide 28: Scope of Briefing
Scope of Briefing w Financial Highlights for Full Year 2001 w Corporate Review w Sectoral Review & Outlook w Strategic Directions Engineering Our Future
Slide 29: Corporate Review: Accolades for the Year
Corporate Review w Accolades for the Year Ÿ ‘Overall Best Managed Company in Singapore’ by Asiamoney: Position Category 1 Overall Best Managed Company 1 Overall Best Investor Relations 1 Best Corporate Strategy 1 Best Management of Financial Accounts 1 Best Corporate Governance 1 Best Treatment of M
Slide 30: Corporate Review: Accolades for the Year
Corporate Review w Accolades for the Year Ÿ ‘Best Asia Pacific Independent MRO Operation for the Year’ by Aviation Week – ST Aero Ÿ ‘Most Transparent Company in Singapore’ by SIAS Ÿ Ranked 4th among the ‘Top 10 Singapore Companies with Strong Corporate Governance’ in The Asset’s poll Ÿ Rated as one
Slide 31: Corporate Review: Accolades for the Year
Corporate Review w Accolades for the Year Ÿ Moved up the ranks in Defence Top 100 (by defence revenue): § 40th in 2000 § 45th in 1999 Ÿ Flight International: § Ranked 58th (previously 64th) among the Top 100 Aerospace Companies by revenue Ÿ Won Defence Technology Prize 2001 for: § SAR 21 – ST Kineti
Slide 32: Corporate Review: Key Developments
Corporate Review w Key Developments Ÿ Leadership change : New Dy Chairman & CEO Ÿ ST Kinetics : Redevelopment of Jalan Boon Lay site to consolidate and rationalise operations – outline planning approval granted by URA Artist’s Impression Ÿ Business regrouping for of Jalan Boon Lay Aerospace and Land
Slide 33: Participation in Major Exhibitions in 2001
Corporate Review w Participation in Major Exhibitions in 2001 Ÿ IDEX 2001 (Abu Dhabi) § Announced 5 new products Ÿ IMDEX 2001 (Singapore) § Showcased the latest vessel designs incorporating stealth capabilities Ÿ Paris Airshow Ÿ DSEI (London) § World debut of Terrex AV81 prototype § Launched the 120
Slide 34: Corporate Review: Investor Relations
Corporate Review w Investor Relations Ÿ Investors Conferences : § CSFB Asian Investment Conference (Hong Kong) § Merrill Lynch Asia Pacific Conference (London) § CLSA Investors’ Forum (Hong Kong) Ÿ Roadshows : § US, Europe, Hong Kong & Tokyo Ÿ Sectoral briefings : § Electronics, Land Systems & Marin
Slide 35: Scope of Briefing
Scope of Briefing w Financial Highlights for Full Year 2001 w Corporate Review w Sectoral Review & Outlook w Strategic Directions Engineering Our Future
Slide 36: Sectoral Review – Aerospace
Sectoral Review – Aerospace w 3rd US MRO site – Signed MOU with Corpus Christi to lease 2-bay hangar w Europe – Formed JV with FR Aviation for MRO work complementing ARL to provide a comprehensive spectrum of services, value-added integrated-solutions and the convenience of one-stop accountability w
Slide 37: Outlook for FY2002 – Aerospace
Outlook for FY2002 – Aerospace Summary Ÿ 1Q2002 is expected to be weaker than 4Q2001 Ÿ FY2002 is expected to be comparable to FY2001, however there remain uncertainties in the aviation market Ÿ Co-organise and participate in Asian Aerospace Ÿ Continue heavy maintenance work from existing key custome
Slide 38: Sectoral Review – Electronics
Sectoral Review – Electronics w Successful Overseas Marketing Ÿ Made headway into overseas markets with several contracts secured w Technology Investments Ÿ M-payment (mobile payment), Wizvision (secured payment transactions), Intelect Technologies (Comms switch), e-Pen in Motion (wireless e-pen), T
Slide 39: Outlook for FY2002 – Electronics
Outlook for FY2002 – Electronics Summary w 1Q2002 Turnover & Profit are projected to be lower than 4Q2001 w Full Year Performance is expected to be better MRT Cabin Simulator w New & existing rail electronics systems & other projects secured during the year will contribute to sales w China & India w
Slide 40: Sectoral Review – Land Systems
Sectoral Review – Land Systems w Launch of new products at international exhibitions w Delivery of New product – Bronco ATTC w RFI submission for UK FRES programme w Secured first AGL and ammunition contract to regional customer Engineering Our Future
Slide 41: Outlook for FY2002 – Land Systems
Outlook for FY2002 – Land Systems Summary w 1Q 2002 Sales & profit before tax are expected to be better than preceding quarter w FY2002 overall performance is expected to be better than 2001 w US Future Combat System (FCS) proposal – joint preparation with a US partner w Continued delivery of Bronco
Slide 42: Sectoral Review – Marine
Sectoral Review – Marine w Shipbuilding Ÿ Delivered the 4th & last LST to RSN Ÿ Secured contract to build 3 PSVs for Tidewater Inc – all 3 PSVs were keel laid in 2001 141m LST w Shiprepair Ÿ Continued to maintain leading position in dredger repairs Ÿ Continued to provide tank coating services to glo
Slide 43: Outlook for FY2002 – Marine
Outlook for FY2002 – Marine Summary Ÿ Higher turnover due to change in accounting policy on recognition of Shipbuilding turnover in 1Q2002. Profit is expected to be better from maturity of a fund Ÿ Performance in FY2002 is expected to be weaker w Shipbuilding Ÿ Expect to deliver all 3 PSVs to Tidewa
Slide 44: Group Outlook for 1Q 2002
Group Outlook for 1Q 2002 The Group’s turnover in 1Q2002 is expected to be higher than that of 4Q2001 but earnings are expected to be comparable, not taking into account the tax provision write-back in 4Q2001. w Aerospace - Turnover and profit are expected to be lower w Electronics - Turnover and pr
Slide 45: Group Outlook for FY2002
Group Outlook for FY2002 The Group’s earnings in FY2002 are expected to be comparable to FY2001. w Aerospace - Overall performance in FY2002 is expected to be comparable despite significant increase in insurance costs, but uncertainties remain in the aviation market w Electronics - Additional milest
Slide 46: Scope of Briefing
Scope of Briefing w Financial Highlights for Full Year 2001 w Corporate Review w Sectoral Review & Outlook w Strategic Directions Engineering Our Future
Slide 47: Strategic Directions
Strategic Directions w Positioning for the next phase of growth w Growth Strategy Ÿ 5-Pronged Approach Ÿ Strengthen Strategic Relationships with Major Customers Ÿ Gain Greater Access to Key Overseas Defence Markets Ÿ Increase Commercial Pie Ÿ Step Up on R&D Efforts Ÿ Enhance Organisational Effective
Slide 48: Strengthen Strategic Relationships with Major Customers
Strategic Directions w Strengthen Strategic Relationships with Major Customers In 2001 Ÿ Appointment of SVP, Defence Biz with special focus on our key customer, Mindef Going Forward Ÿ Pursue joint development programmes with major & potential customers / strategic partners. Engineering Our Future
Slide 49: Gain Greater Access to Key Overseas Defence Markets
Strategic Directions w Gain Greater Access to Key Overseas Defence Markets In 2001 Ÿ Appointment of former US DoD General, John Coburn, as Chairman & CEO of VT Systems to spearhead the Group’s thrust in Americas Ÿ Set up ST Engg (Europe) in London Going Forward Ÿ Better positioned to pursue overseas
Slide 50: Increase Commercial Pie
Strategic Directions w Increase Commercial Pie In 2001 Ÿ Signed MOU for lease of new hangar in Corpus Christi, Dallas, US Ÿ JV with FR Aviation for “new” MRO facility in Bournemouth, UK - our European entry. Going Forward Ÿ China is a potential growth area for the Group – monitoring this market clos
Slide 51: Step up R&D
Strategic Directions w Step up R&D FY2001 Terrex AV81 Ÿ Several new products launched by ST Kinetics Ÿ Investment in technologies, eg Siament, Intelect Network Technologies, mPayment , Wizvision Ÿ Appointment of Chief Technology Officer Going Forward Ÿ Continually developing new products Ÿ R&D Expen
Slide 52: Enhance Organisational Effectiveness
Strategic Directions w Enhance Organisational Effectiveness In 2001 Ÿ Launched of 6 Sigma programme in ST Kinetics Ÿ Kaizen programme – on - going Ÿ Various e -initiatives devt / roll - out : e - HR, e -finance, e - procurement to improve customer services, reduce cost, increase productivity Going F
Slide 53: Message from Dy Chairman & CEO
Message from Dy Chairman & CEO “ The Group’s businesses continued to perform steadily in 2001, demonstrating resilience in a year of economic uncertainties. While the outlook remains mixed for the Group in 2002, we expect to maintain earnings. Moving ahead, we will continue to explore ways to streng
Slide 54: Thank You
Thank You “Engineering Our Future”
Slide 55: Aerospace
Aerospace Profit grew on the back of higher turnover despite lower income from investments and associated companies Creating Value for You - Worldwide
Slide 56: Financial Highlights
Financial Highlights for year ended 31 December 2001 $m 2001 2000 % Turnover 1,034 959 8 Investment, interest and other income 35.1 42.0 (17) Profit before tax 225.7 219.0 3 Profit attributable to shareholders before EI 168.0 151.0 11 Economic value added 112.2 110.1 2 (WACC 2001: 9.4% & 2000: 9.9%)
Slide 57: EBITDA / EBIT
EBITDA / EBIT $m 2001 2000 % EBITDA 196.9 178.8 10 Depreciation & amortisation (35.3) (36.8) (4) EBIT 161.6 142.0 14 Investment, interest and other income 35.1 42.0 (17) Interest paid (3.1) (4.0) (23) Operating profit 193.6 180.0 8 Associated companies 32.1 39.0 (18) Profit before tax 225.7 219.0 3
Slide 58: Turnover by business group
Turnover by business group $m 2001 2000 % Aircraft Maintenance & Modification 646 63% 615 64% 5 Components/Engine Repair & Overhaul 251 24% 228 24% 10 Engineering & Materials Services 137 13% 116 12% 18 Total 1,034 100% 959 100% 8 Singapore Technologies Aerospace Engineering
Slide 59: Turnover
Turnover $m Legend for 1999 to 2001 only 1,200 4th Quarter 1,034 3rd Quarter 1,000 959 2nd Quarter 830 858 259 1st Quarter 800 260 674 216 419 261 600 237 210 375 400 264 236 213 200 411 299 219 226 250 0 1997 1998 1999 2000 2001 Singapore Technologies Aerospace Engineering
Slide 60: Profit Before Tax by business group
Profit Before Tax by business group $m 2001 2000 % Aircraft Maintenance & Modification 113.5 50% 109.1 50% 4 Component/Engine Repair & Overhaul 71.8 32% 70.8 32% 1 Engineering & Materials Services 40.4 18% 39.1 18% 3 Total 225.7 100% 219.0 100% 3 PBT/Sales 22% 23% Singapore Technologies Aerospace En
Slide 61: Profit Attributable to Shareholders
Profit Attributable to Shareholders (before EI) $m Legend for 1999 to 2001 only 180 168.0 4th Quarter 160 151.0 3rd Quarter 44.1 2nd Quarter 140 125.2 39.5 1st Quarter 120 102.8 38.6 43.1 100 37.7 80 56.5 62.1 30.1 60 42.9 34.1 42.8 40 28.4 20 48.3 28.0 28.1 31.0 37.9 0 1997 1998 1999 2000 2001 Sing
Slide 62: Balance Sheet
Balance Sheet $m 31 Dec 2001 31 Dec 2000 Fixed assets 196 175 Associated companies 87 61 Long term investments 314 216 Long term receivables 1 2 Net current (liabilities)/assets (17) 105 581 559 Non-current liabilities (127) (157) 454 402 Minority interests (23) (21) Net Assets 431 381 Singapore Tec
Slide 63: Cash Flow Statement
Cash Flow Statement $m 31 Dec 2001 31 Dec 2000 Cash flow from : Operating activities 226 179 Investing activities (24) 23 Financing activities (125) (223) Net increase/(decrease) in cash and cash equivalents 77 (21) Cash & cash equivalents at beginning of year 747 767 Exchange difference 2 1 Cash &
Slide 64: Year in Review
Year in Review AMM w New facilities added l 2-bay NB hangar in MAE l 2-bay NB hangar in PLA w Major modification programmes l Redelivered 1 KC135 MPRS mod l Commenced DHL B757 PTF, redelivered 2 l Secured 13 UPS MD11 PTF, redelivered 3 l Redelivered 2nd DC10 PTF ahead of schedule UPS MD11 Freighter
Slide 65: Year in Review
Year in Review CERO EMS w Secured service centre agreements with: w Secured Boeing 737 PBTH from l Eurocopter on AS355 Ecureuil regional customer l Artex w Completed support on STC for w Redelivered B757 PTF l 1st CSD by DalFort w Commenced BAF F5 programme & completed PDR l 1st JT8D engine for FedE
Slide 66: Outlook for 2002
Outlook for 2002 Summary w 1Q02 expected to be weaker than 4Q01 w 2002 is expected to be comparable to 2001. However, there remain uncertainties in the aviation market w Asian Aerospace 2002 AMM w Global economy effects on commercial w Regional military maintenance remains flat w HMV work from exist
Slide 67: Outlook for 2002
Outlook for 2002 CERO EMS w Setup new capabilities for w Pursue PBTH from existing and new customers commercial and military engines and components w Pursue C130 avionics upgrade programme w Increase customer base for w Complete OFP development & MC CFM56 and JT8D engines qualification test w Develo
Slide 68: President's Message
President’s Message “Profit from core operations more than offsets lower investment and associated companies’ income resulting in improved performance over FY2000. 2002 will see continued support from core customers and the Aerospace Sector’s financial performance is expected to be comparable to 200
Slide 69: Thank You
Aerospace Thank You “Creating Value for You - Worldwide”
Slide 70: Electronics: Better Overall Performance
Electronics Better Overall Performance Innovating System Solutions
Slide 71: Financial Highlights
Financial Highlights for year ended 31 December 2001 $m 2001 2000 % Turnover 498 424 18 Investment, interest and other income 11.1 11.2 - Profit before tax 52.2 46.6 12 Profit attributable to shareholders before EI 37.0 30.6 21 Economic value added 24.5 23.0 7 (WACC 2001: 9.4% & 2000: 9.9%) Singapor
Slide 72: EBITDA / EBIT
EBITDA / EBIT $m 2001 2000 % EBITDA 49.1 40.9 20 Depreciation & amortisation (7.2) (5.3) 36 EBIT 41.9 35.6 18 Investment, interest and other income 11.1 11.2 - Operating profit 53.0 46.8 13 Associated companies (0.8) (0.2) 294 Profit before tax 52.2 46.6 12 Singapore Technologies Electronics Enginee
Slide 73: Turnover by business group
Turnover by business group $m 2001 2000 % Large-Scale Sys Gp 171 34% 162 38% 6 Communication & Sensor Sys Gp 187 38% 144 34% 30 Software Sys Gp 140 28% 118 28% 19 Total 498 100% 424 100% 18 Singapore Technologies Electronics Engineering
Slide 74: Turnover
Turnover $m Legend for 1999 498 to 2001 only 500 4th Quarter 424 3rd Quarter 140 400 362 2nd Quarter 338 134 1st Quarter 312 300 128 130 167 93 182 200 73 126 107 100 91 171 130 102 70 90 0 1997 1998 1999 2000 2001 Singapore Technologies Electronics Engineering
Slide 75: Profit Before Tax by business group
Profit Before Tax by business group $m 2001 2000 % Large-Scale Sys Gp 11.5 22% 11.0 23% 5 Communication & Sensor Sys Gp 19.4 37% 17.6 38% 10 Software Sys Gp 21.3 41% 18.0 39% 18 Total 52.2 100% 46.6 100% 12 PBT / Sales 10% 11% Singapore Technologies Electronics Engineering
Slide 76: Profit Attributable to Shareholders
Profit Attributable to Shareholders (before EI) $m Legend for 1999 to 2001 only 40 37.0 4th Quarter 3rd Quarter 30.6 2nd Quarter 30 11.5 1st Quarter 10.2 20 10.5 15.3 8.4 11.3 1.8 9.2 5.3 9.0 10 6.5 1.8 7.0 4.6 4.8 7.4 6.0 3.6 5.0 0 1997 1998 1999 2000 2001 Singapore Technologies Electronics Enginee
Slide 77: Balance Sheet
Balance Sheet $m 31 Dec 2001 31 Dec 2000 Fixed assets 27 24 Intangibles 1 - Associated cos/JV 1 - Long term investments 55 40 Net current assets 85 102 169 166 Non-current liabilities (75) (87) 94 79 Minority interests (2) - Net Assets 92 79 Singapore Technologies Electronics Engineering
Slide 78: Cash Flow Statement
Cash Flow Statement $m 31 Dec 2001 31 Dec 2000 Cash flow from : Operating activities 63 98 Investing activities (24) (12) Financing activities (24) (19) Net increase in cash 15 67 & cash equivalents Cash & cash equivalents at beginning of year 288 221 Cash & cash equivalents at end of year 303 288 S
Slide 79: Year In Review: Large-Scale Systems Group
Year In Review w Large-Scale Systems Group Projects/Contracts secured - l Rail Electronics System for Manila LRT l Rail Electronics System for LTA’s Marina Circle Line Stage II l Wide Gate project for SMRT l LED Traffic Lights from Mahkota Technologies, Malaysia Singapore MRT Singapore Technologies
Slide 80: Year In Review: Comm & Sensor Systems Group
Year In Review w Comm & Sensor Systems Group Projects/Contracts secured l Taxi Fleet Management System in Taipei l Comms Switch for Taipei Blue Line l Ceteon Information Appliance l Trusted Platform l Patents granted Taipei Taxi FMS w RF Transponder w Digital Watermarking Method w Automatic Freeway
Slide 81: Year In Review: Software Systems Group
Year In Review w Software Systems Group Projects/Contracts secured l Fire Services Mobilising System in Hong Kong l Integrated Ammunition Management System HK Fire Services l Automatic Fingerprint Identification System for MHA l KnowledgeAlive completed Virtual Classroom project for Civil Service Co
Slide 82: Year In Review: Strategic Investments
Year In Review w Strategic Investments l e-Pen In-Motion l Wireless e-pen l Trusted Hub l Trusted environment for secure CETEON With E-PEN electronics transactions l Intelect Technologies l JV with TeraForce Technology on Comms Switch for purpose-built applications such as rail systems Singapore Tec
Slide 83: Year In Review: Strategic Investments
Year In Review w Strategic Investments l M-Payment l Mobile payment solutions provider, m-commerce enabler & m-marketing solutions l WizVision l Infrastructure software provider for secure payment transactions through multiple channels -- physical, online & mobile Singapore Technologies Electronics
Slide 84: Outlook for 2002
Outlook for 2002 Summary w 1Q2002 l Completion of milestones for LTA & MHA projects & defence project sales l Turnover & Profit are projected to be lower than 4Q 2001 w FY2002 l Recognition of sales from our strong order book l Steady growth sustained by continual investment in new product developme
Slide 85: Outlook for 2002
Outlook for 2002 Large-Scale Systems Group w New & existing Rail Electronics System projects will add to sales w Tie-ups with strategic partners will offer new business opportunities for Intelligent Homes & Buildings solutions Comm & Sensor Systems Group w China & India will continue to offer market
Slide 86: Outlook for 2002: Software Systems Group
Outlook for 2002 Software Systems Group w Sales contributions will come from Hong Kong Fire Services project & defence simulator projects w Public Safety & Simulation markets in the region will continue to offer new project opportunities MRT Cabin Simulation Singapore Technologies Electronics Engine
Slide 87: President's Message
President’s Message “The Electronics Sector expects steady growth next year with the recognition of sales from our strong order book. To sustain our growth, we will continue to invest in new product development and to grow our business in Asia Pacific and USA.” USA. ~ Seah Moon Ming Singapore Techno
Slide 88: Thank You
Electronics Thank You “Innovating System Solutions”
Slide 89: Land Systems
Land Systems Performance and product development on track Advancing Towards New Frontiers
Slide 90: Financial Highlights
Financial Highlights for twelve months ended 31 December 2001 $m 2001 2000 % Turnover 607 528 15 Investment, interest and other income 48.0 34.1 41 Profit before tax 97.1 84.7 15 Profit attributable to shareholders before EI 97.8 64.9 51 Economic value added 25.0 41.8 (40) (WACC 2001: 9.4% & 2000: 9
Slide 91: EBITDA / EBIT
EBITDA / EBIT $m 2001 2000 % EBITDA 61.1 66.5 (8) Depreciation & amortisation (19.0) (21.7) (12) EBIT 42.1 44.8 (6) Investment, interest and other income 48.0 34.1 41 Interest paid (0.1) (0.4) (62) Operating profit 90.0 78.5 15 Associated companies 7.1 6.2 16 Profit before tax 97.1 84.7 15 Singapore
Slide 92: Turnover by business group
Turnover by business group $m 2001 2000 % Automotive 349 58% 305 58% 14 Munitions and Weapon 219 36% 183 35% 20 Services, Trading 39 6% 40 7% (3) & others Total 607 100% 528 100% 15 Singapore Technologies Land Systems Engineering
Slide 93: Turnover
Turnover $m Legend for 1999 700 to 2001 only 607 4th Quarter 600 528 3rd Quarter 153 2nd Quarter 500 1st Quarter 141 400 165 299 297 128 300 248 71 149 137 200 116 74 125 100 80 150 152 132 134 72 0 1997 1998 1999 2000 2001 Singapore Technologies Land Systems Engineering
Slide 94: Profit Before Tax by business group
Profit Before Tax by business group $m 2001 2000 % Automotive 44.9 46% 49.3 58% (9) Munitions and Weapon 27.8 29% 19.7 23% 42 Services, Trading 24.4 25% 15.7 19% 55 & others Total 97.1 100% 84.7 100% 15 PBT / Sales 16% 16% Singapore Technologies Land Systems Engineering
Slide 95: Profit Attributable to Shareholders
Profit Attributable to Shareholders (before EI) $m 97.8 Legend for 1999 100 to 2001 only 90 4th Quarter 80 32.0 3rd Quarter 2nd Quarter 70 64.9 1st Quarter 60 21.0 23.1 50 40 28.0 15.7 30 9.4 12.2 22.1 9.5 14.2 20 2.7 0.5 7.5 10 6.3 14.0 20.6 8.9 9.5 4.7 0 1997 1998 1999 2000 2001 Singapore Technolo
Slide 96: Balance Sheet
Balance Sheet $m 31 Dec 2001 31 Dec 2000 Fixed assets 83 89 Associated companies 79 82 Long term investments 167 161 Long term receivables 1 2 Net current assets 355 426 685 760 Non-current liabilities (552) (663) 133 97 Minority interests (1) (2) Net Assets 132 95 Singapore Technologies Land System
Slide 97: Cash Flow Statement
Cash Flow Statement $m 31 Dec 2001 31 Dec 2000 Cash flow from : Operating activities (58) 178 Investing activities (11) 168 Financing activities (51) (35) Net increase in cash & cash equivalents (120) 311 Cash & cash equivalents at beginning of year 748 437 Cash & cash equivalents at end of period 6
Slide 98: Year In Review: Strategic Investments & Alliances
Year In Review Strategic Investments & Alliances w Increased shareholding in Takata CPI to 49% (Jan 2001) w Acquired 54% shareholding in Siamant GMBH (Mar 2001) w MOU with Otobreda to develop LWSPH variant (Mar 2001) w Development agreement with Innovonics (Sep 2001) w Acquired remaining 40% of STA
Slide 99: Year In Review: New Products Launched
Year In Review International Marketing w New Products Launched: l Terrex AV81 (Mar 2001) l 40 mm Air Bursting Munition System (Mar 2001) 40 ABMS l 155 mm Light Weight Self Propelled Howitzer (Mar 2001) l 120 mm Super Rapid Advanced Mortar System (Sept 2001) SLWAGL l 40 mm Super Light Weight AGL (Sep
Slide 100: Year In Review: International Marketing
Year In Review International Marketing w Exhibitions: l IDEX 2001 (UAE) l LAD (Brazil) l DSEi 2001 (UK) l AUSA (USA) cancelled after 911 w Major Programmes: - Automotive l RFI submission for UK’s FRES programme l Pursuing opportunities for Terrex in Europe Bionix l Pursuing opportunities for Bronco
Slide 101: Year In Review: International Marketing
Year In Review International Marketing w Major Programmes: - Munitions & Weapon l Secured first AGL and ammunition contract with a regional customer l 40 mm AGL evaluation by European & SAR 21 Scandinavian countries l 40 mm Self -Destruct ammunition evaluation by US, Europe and Scandinavian country
Slide 102: Year In Review: Awards / Achievements
Year In Review Awards / Achievements w Launch of 6 Sigma programme w 4 patents filed and 2 granted (total of 6 patents) w Recognition for juzclickcar in ConsumerTrust Global Reliability Programme w Opel Zafira voted Wheels’ Car of the Year (MPV Category) for the second consecutive year w STAR Automo
Slide 103: Year In Review: Safety
Year In Review Safety w Two incidents occurred at: l Bukit Timah l Portsdown Road w Additional safety programmes institutionalised: l Crisis Management l Systems Safety l Industrial Safety l Behaviour Based Safety Singapore Technologies Land Systems Engineering
Slide 104: Outlook for 1Q 2002
Outlook for 1Q 2002 w FCS proposal : Joint preparation with USA partner w Redevelopment of Jalan Boon Lay site w Continued delivery of Bronco, SAR21 and other projects w STAR Accident Repair Centre: New and bigger facility to accommodate up to 50% increase in business w STA Inspection: Weaker outloo
Slide 105: Outlook for 1Q 2002
Outlook for 1Q 2002 Summary: w 1Q 2002 Sales and profit before tax are expected to be better than preceding quarter w FY 2002 Overall performance is expected to be better than 2001 Singapore Technologies Land Systems Engineering
Slide 106: President's Message
President’s Message “The Land Systems Sector performed well in 2001. While we continue to improve our core defence business and operations, we will look at new engines of growth in 2002 to better position ourselves for the future.” ~ Wu Tzu Chien Singapore Technologies Land Systems Engineering
Slide 107: Thank You
Land Systems Thank You “Advancing Towards New Frontiers”
Slide 108: Marine
Marine Profit maintained Forging Ahead With Innovation
Slide 109: Financial Highlights
Financial Highlights for year ended 31 December 2001 $m 2001 2000 % Turnover 336 359 (7) Investment, interest and other income 21.0 9.5 121 Profit before tax 62.6 63.9 (2) Profit attributable to shareholders before EI 45.6 43.8 4 Economic value added 28.9 38.7 (25) (WACC 2001: 9.4% & 2000: 9.9%) Sin
Slide 110: EBITDA / EBIT
EBITDA / EBIT $m 2001 2000 % EBITDA 58.7 68.4 (14) Depreciation & amortisation (13.8) (12.1) 13 EBIT 44.9 56.3 (20) Investment, interest and other income 21.0 9.5 121 Operating profit 65.9 65.8 - Associated companies (3.3) (1.9) 75 Profit before tax 62.6 63.9 (2) Singapore Technologies Marine Engine
Slide 111: Turnover by business group
Turnover by business group $m 2001 2000 % Shipbuilding 178 53% 249 69% (29) Shiprepair 141 42% 92 26% 52 Engineering 17 5% 18 5% (5) Total 336 100% 359 100% (7) Singapore Technologies Marine Engineering
Slide 112: Turnover
Turnover $m Legend for 1999 400 to 2001 only 359 4th Quarter 336 3rd Quarter 42 2nd Quarter 300 1st Quarter 256 147 243 48 38 198 61 200 39 35 124 74 35 100 147 185 124 142 119 32 0 1997 1998 1999 2000 2001 Singapore Technologies Marine Engineering
Slide 113: Profit Before Tax by business group
Profit Before Tax by business group $m 2001 2000 % Shipbuilding 36.1 58% 48.9 76% (26) Shiprepair 16.6 26% 9.1 14% 83 Engineering 1.8 3% 4.9 8% (64) Others 8.1 13% 1.0 2% 681 Total 62.6 100% 63.9 100% (2) PBT / Sales 19% 18% Singapore Technologies Marine Engineering
Slide 114: Profit Attributable to Shareholders
Profit Attributable to Shareholders (before EI) Legend for 1999 $m 45.6 to 2001 only 50 4th Quarter 43.8 3rd Quarter 38.5 5.8 40 2nd Quarter 16.0 1st Quarter 30.1 31.2 9.8 30 20.0 5.5 8.1 4.8 8.8 20 15.2 4.2 12.0 10 18.5 21.9 14.9 14.8 8.9 0 1997 1998 1999 2000 2001 Singapore Technologies Marine Eng
Slide 115: Balance Sheet
Balance Sheet $m 31 Dec 2001 31 Dec 2000 Fixed assets 60 61 Associated companies / JV 8 10 Long term investments 9 18 Net current assets 142 103 219 192 Non-current liabilities (113) (99) Net assets 106 93 Singapore Technologies Marine Engineering
Slide 116: Cash Flow Statement
Cash Flow Statement $m 31 Dec 2001 31 Dec 2000 Cash flow from : Operating activities 44 59 Investing activities (10) 6 Financing activities (33) (55) Net increase in cash & cash equivalents 1 10 Cash & cash equivalents at beginning of year 351 341 Cash & cash equivalents at end of year 352 351 Singa
Slide 117: Year In Review: Shipbuilding
Year In Review Shipbuilding Delivered the last Landing Ship Tank (LST) to the RSN Secured contract to construct three Platform Supply Vessels (PSV) for Tidewater Inc. 141m LST Keel for all three PSVs laid during the year : 12 Jun, 17 Sep and 19 Dec Artist’s Impression of Platform Supply Vessel for T
Slide 118: Year In Review: Shiprepair
Year In Review Shiprepair Total number of ships repaired in 2001 : 367 (2000 : 343) Continued to maintain leading position in the dredger repair market. Major dredger repairs carried out during the year include: u Modification of hopper dredger “Lelystad” for Ballast Nedam u “Pearl River” ,“Nile Riv
Slide 119: Year In Review: Tank Coating Services
Year In Review Continued to provide tank coating services to world-renowned companies in the industry which included : w Stolt -Nielsen, USA w Odfjell, ASA, Norway w Osprey Maritime, Norway w Bergesen Dy ASA, Norway w Sun Ship, Sweden Established significant milestone by completing 14th tank coating
Slide 120: Year In Review: Growing International Customer Base
Year In Review Continued to grow customer base internationally : Europe : w Gute Bucher Fur Alle E.V., Germany w Sun Ship, Sweden w Timberline, Norway w Bergesen Dy ASA, Norway w Odfjell ASA, Norway w V Ship, Monaco Sun Ship’s tanker ”Blue Sapphire” Asia : w Pelangi Shipping, Malaysia w Five Star Li
Slide 121: Outlook for 2002
Outlook for 2002 Summary Higher turnover due to change in accounting policy on recognition of Shipbuilding turnover in 1Q2002. Profit is expected to be better from maturity of a fund Performance for FY2002 is expected to be weaker Shipbuilding Continue facility upgrade in preparation for the frigate
Slide 122: Outlook for 2002
Outlook for 2002 Shiprepair Continue successful strategy of : l pursuing high value conversion projects l building international customer base International Marketing Euronaval 2002 Singapore Technologies Marine Engineering
Slide 123: President's Message
President’s Message “The Sector maintained its profit despite lower shipbuilding delivery. Higher shiprepair turnover and investment income contributed to profit. In 2002, we would continue to pursue high value shiprepair jobs. We also expect to deliver the three platform supply vessels we secured i
Slide 124: Thank You
Marine Thank You “Forging Ahead With Innovation”
Singapore Technologies Engineering — FY2001 Earnings Presentation on 6ix