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

22 nd Annual General Meeting 18 April 2019

Resilient 2018 results, impacted by one-offs Revenue (S$b) Net Profit (S$m) $m $b 600 8 +3% -2% 503 6.7 7 494 6.5 500 6 400 5 300 4 3 200 2 100 1 0 0 2017 2018 2017 2018 2 | Co-confidential

Resilient 2018 results, impacted by one-offs Revenue (S$b) Net Profit (S$m) $m $b Exclude one-off charges 600 8 • Strong underlying +3% -2% +9% 527 503 6.7 7 494 6.5 operating performance 500 482 6 400 5 • One-off charges to 300 4 rationalise portfolio 3 200 2 • Investments in growth 100 1 initiatives and capabilities 0 0 2017 2018 2017 2018 3 | Co-confidential

Value creation Total shareholder return (%) Return on capital employed (%) Dividend yield % 12.1 16% Capital gain 11.5 13.6 12.7 4.8 12.0 4.4 12% 8% 5.5 7.3 7.1 4.6 4% 0.9 0% 2016 2017 2018 2016 2017 2018 4 | Co-confidential

Initiatives since 2016 Positioning for growth Strategy Synergies Portfolio mgt Invest for growth Divested China Strengthened Talent Group strategy office Shared Services Speciality Vehicles biz Development Framework Aligned M&A with Corporate Venture Capital Treasury Centre Divested India Road Group strategy Const Eqm biz Open Lab: Innosparks Legal Entity Formed Management Rationalisation Committee Rationalised Brazil Group Digital Office Road Const Eqm and Strengthened Group Rationalised subsidiary Automotive MRO biz Marketing Boards Strategic Tech Centres Divested US Pilot Set up Strategy & Brand Harmonisation Restructured ST Dynamics Training biz Finance Committee to Future Tech Centre Setting up Group Risk Acquisition of MRAS & Assurance New Enterprises and Newtec & Ventures

Good progress with early wins Int’l Defence Biz

Strengthen core: Acquired MRAS 1 Major nacelle components • Largest acquisition for the Group Exhaust Plug • Focused strategy to Exhaust Nozzle upscale capabilities Engine Build-Up Transcowl / Blocker • Well received by Doors Fan Cowl Inlet market Nacelle Engine Trust Reverser Actuation System “Strategic acquisition for the group which will reap benefits in the long term, besides being earnings accretive” OCBC Investment Research 7 | Co-confidential

Strengthen core: Building order books 1 Yr End 2018 $ 13.2b Order Book Marine 2013-2018 Order Book ~$4.9b expected to be delivered in 2019 ~S$750m New orders in 2H 2018 +49% 2013 2014 2015 2016 2017 2018

Strengthen core: New Investments 1 2 nd Composite panel mfg. plant, Expansion of MRO complex, Kodersdorf, Saxony, Germany Pensacola, Florida, USA Total investment: EUR 38m Total investment: US$210m 20% external funding Our share of investment: US$35m

Pursue growth: Smart City achievements 2 First Fir st Smart Street Lighting AI po AI power ered ed CES CES 20 2019 19 Aw Award Hon Honoree Traffic Management Foray into USA System in Las Vegas in Middle East Ultra Ult ra-Sl Slim 2FA En Encry rypti tion Rail products in 45 45 citi cities es Predictive Maintenance 99.2% Accuracy Launched Accuracy predicting Lo Logistics gistics Rob obot ots Train Door Failure MEXICO Metallorum Refinery Rollout COLOMBIA EV buses EV buses Electrical Substation in Singapore Kuwait Breakthrough Ministry of Foreign Affairs New Markets & Endorsements 10 |

Pursue growth: Acquiring Newtec 2 About Newtec • Leading Satcom equipment provider • Designs, manufactures and sells Satcom equipment • Owns IPs & patents for key Satcom technologies 11 |

Acquiring Newtec to reinforce Satcom business CONSTELLATIONS partnerships Newtec’s value GEO SATELLIITE MANUFACTURERS Strategic proposition MEO LEO • Differentiated and complementary IP GROUND SEGMENT Key Satcom • Strong position for capabilities Network Reference Design, Antennas, Hubs & Remotes Mgt. System Licensing Professional Equip Line cards future growth IP • Revenue and cost synergies END-USERS Key customer Enterprise Aeronautical Maritime Land segments • Earnings accretion expected from Year 2 Broadcast Cell Backhaul Consumer 12 |

Pursue growth: Int’l Defence Business 2 Attractive market but competition intense World class products; Secured new orders; Enhance delivery to global markets Building pipeline Logistic Support Auxiliary Personnel Vessels Lighters Next-Generation TERREX 2 Armoured Fighting Vehicle Medium Unmanned Land Platforms Surface Vessel 13 |

Priorities for 2019 3 4 1 2 5 Integrate Strengthen Pursue Nurture Develop new Acquisitions Core Growth Capabilities Businesses 14 |

New Enterprises & Ventures Formulate strategy Build capability to execute Pursue our aspiration 1 Adopt global mind-set and context 2 • Enhanced domain and Apply engineering expertise in functional expertise healthcare settings Build & Operate • Established HealthTech A Global 3 HealthTech network Collaborate with Business Singapore ecosystem • Active business development 4 Invest to operate 15 |

Current participation in HealthTech business Medical Devices Emergency / Healthcare IT Robotics & Diagnostics Safety • • • • Delivery Robots Emergency Hospital C2 Soldiers Vital Signs Command Centre Analytics Response System • Medical Robots* • • • Integrated Security AI Wound Analytics* Infrared Fever Management Scanner Solution * Through investment in HealthTech startups 16 |

Our 5-Year Plan (2018 – 2022) Smart City revenue (S$1b) to more than double Core and other businesses grow at 2 – 3x global GDP growth rate 2/3 of Group revenue growth Group net profits from global markets grow in tandem with revenues 17 |

Thank You