Financial Results Briefing First Quarter 2011 11 May 2011 1Q2011 - PowerPoint PPT Presentation

Financial Results Briefing First Quarter 2011 11 May 2011

1Q2011 Results Double-Digit Growth

Agenda Financial Highlights   1Q2011 vs 1Q2010  1Q2011 vs 4Q2010 Business Review   Sector Operations  Outlook Engineering Our Future Engineering Our Future 3 3

Financial Highlights for the first quarter ended 31 March 2011 1Q2011 1Q2010 Change $ m (a) (b) (a) / (b) Revenue 1,567 1,361 15% EBIT 129.2 110.9 17% Other income, net 8.7 10.5 17 % Finance costs, net (6.1) (18.9) 68% PBT 138.0 116.6 18% Net Profit 111.1 92.8 20% Engineering Our Future Engineering Our Future 4 4

Financial Highlights for the first quarter ended 31 March 2011  Commercial sales at 57% (FY2010: 59%) or $892m of 1Q2011 revenue  $11.3b order book; about $3.0b to be delivered in next three quarters (end 2010: $11.5b)  CCE and short-term investments of $1.85b (FY2010: $1.79b) Engineering Our Future Engineering Our Future 5 5

Group Revenue by sector $1,567m 15% 43 $206m $1,361m 272 37 Marine 6% 256 358 Land Systems 35% 265 Elect 24% 444 359 Aero 1% 444 450 1Q2010 1Q2011 Revenue higher by 15% Growth from all sectors except for Aerospace sector which had comparable revenue Engineering Our Future Engineering Our Future 6 6

Group Revenue Breakdown by location of customers (by geography) 6% 14% 5% Locality 1Q2010 1Q2011 14% $m % $m % Asia 765 56 880 56 USA 339 25 378 24 Europe 188 14 224 14 56% 56% Others 69 5 85 6 25% Total 1,361 100 1,567 100 24% Engineering Our Future Engineering Our Future 7 7

Profit Before Tax by sector 1Q2010 1Q2011 Others Others Aero Marine Marine Aero (-1%) 37% (-1%) -% (21%) (37%) 33% (41%) (18%) ($1.2m) ($0.8m) $24.2m $24.2m $42.7m $56.7m $25.6m Land $22.8m Land Systems $28.1m $32.3m Systems (19%) (19%) 12% Elect Elect 15% (23%) (24%) 18% $116.6m $138.0m $21.4m Higher by 18% Higher PBT in all sectors except for Marine sector which had comparable PBT Engineering Our Future Engineering Our Future 8 8

Aerospace PBT Grew 33% % 4 1Q2010 1% 250 1Q2011 229 222 $6m Revenue by business group (2%) $450m $444m 200 165 162 e 150 u n e % 4 v 100 e R 59 57 50 $ m 0 AMM CERO EMS 1Q2010 1Q2011  Comparable Revenue at $450m  More aircraft redeliveries (AMM) and higher MBH TM sales (EMS) % 3 $56.7m 3 m 0 Offset by: . 4 1 $  Lower sales in the components business (CERO) $42.7m  PBT higher by 33% or $14.0m to $56.7m T B P  Favourable sales mix  Favourable foreign exchange impact Partially offset by:  Higher administrative expenses 1Q2010 1Q2011 Engineering Our Future Engineering Our Future 9 9

Electronics Strong Performance in 1Q2011 1Q2010 1Q2011 5% $444m 24% 250 Revenue by business group $85m $359m 191 200 182 55% 32% e u 150 130 n 123 e v 93 e 100 84 R 50 $ m 0 LSG CSG SSG 1Q2010 1Q2011  Revenue higher by 24% or $85m to $444m 15%  Milestone completions of LTA’s Circle Line Project and half $32.3m $4.2m height platform screen doors project (LSG) $28.1m  Milestone completions of communication projects (CSG)  Milestone completions of various software system projects (SSG) T B  PBT higher by 15% or $4.2m to $32.3m P  In line with higher revenue Partially offset by:  Less favourable sales mix  Higher operating expenses 1Q2010 1Q2011 Engineering Our Future Engineering Our Future 10 10

Land Systems Higher Year-on-Year 1Q PBT 1Q2010 44% 35% $358m $93m 281 300 1Q2011 Revenue by business group 250 $265m 196 e 200 u n e v 150 e R 3% 25% 100 43 41 34 50 28 $ m 0 Auto M&W S&T 1Q2010 1Q2011  Revenue higher by 35% or $93m to $358m 12%  Higher project deliveries (Auto) $2.8m $25.6m $22.8m  PBT higher by 12% or $2.8m to $25.6m  Lower operating expenses T B P  Positive fair value change of embedded derivatives Partially offset by:  Unfavourable product mix Engineering Our Future Engineering Our Future 1Q2010 1Q2011 11 11

Marine Comparable PBT over 1Q2010 1Q2010 250 1Q2011 6% Revenue by business group 2% $16m $272m 200 $256m 177 173 150 e 24% u n e 85 100 v e 69 (32%) R 50 14 10 $ m 0 Shipbuilding Shiprepair Engineering 1Q2010 1Q2011  Revenue higher by 6% or $16m to $272m $24.2m $24.2m -%  Higher shiprepair activities  Comparable PBT at $24.2m T B P 1Q2010 1Q2011 Engineering Our Future Engineering Our Future 12 12

Profit Before Tax 1Q2011 vs 1Q2010 $ m $21.4m or 18% 150 138.0 Exchange loss in Absence of contribution from 26.0 1Q2010 Singapore Airshow 2010 116.6 7.2 1.4 (7.9) 100 (5.3) Higher GP from all Sectors except Land Systems sector 50 0 1Q2010 Share of Results of Jobs Credit Others Foreign Exchange Gross Profit 1Q2011 Associates/Jointly Scheme Controlled Entities Engineering Our Future Engineering Our Future 13 13

EBITDA / EBIT - Group 1Q2011 1Q2010 % $ m EBITDA 161.3 153.0 5 Depreciation & amortisation (32.1) (42.1) 24 EBIT 129.2 110.9 17 Other income, net 8.7 10.5 (17) Finance costs, net (6.1) (18.9) 68 Favourable foreign Favourable foreign exchange impact exchange impact Associates and jointly controlled entities 6.2 14.1 (56) Absence of Absence of contribution from contribution from Singapore Airshow Singapore Airshow 2010 Profit before tax 138.0 116.6 18 2010 Engineering Our Future Engineering Our Future 14 14

PBT Margin by sector 1Q2011 1Q2010 % % Aerospace 13 10 Favourable sales Favourable sales mix and exchange mix and exchange difference Electronics 7 difference 8 Land Systems 7 9 Marine 9 9 Group 9 9 Steady PBT Margin Engineering Our Future Engineering Our Future 15 15

Net Profit by sector 1Q2011 1Q2010 Change $ m Aerospace 45.0 32.8 37% 41% 35% Electronics 26.9 22.6 19% 24% 24% Land Systems 22.6 18.4 23% 20% 20% Marine 18.0 19.0 5% 16% 21% Others (1.4) (1%) - NM - Group 111.1 100% 92.8 100% 20% Higher Net Profit in all Sectors except for Marine sector Engineering Our Future Engineering Our Future 16 16

Agenda Financial Highlights   1Q2011 vs 1Q2010  1Q2011 vs 4Q2010 Business Review   Sector Operations  Outlook Engineering Our Future Engineering Our Future 17 17

Group Revenue by sector 3% $52m $1,619m $1,567m 49 43 Marine 5% 286 272 Land Systems 23% 466 358 Elect 17% 444 378 Aero 2% 440 450 4Q2010 1Q2011 Comparable Revenue Lower revenue from Land Systems and Marine sectors offset by higher revenue from Electronics sector Engineering Our Future Engineering Our Future 18 18

Profit Before Tax by sector 4Q2010 1Q2011 Others Aero Others Marine Aero (4%) Marine (-1%) 111% (45%) 36% (19%) (41%) 35% (18%) $6.9m $37.6m ($0.8m) $24.2m $56.7m $86.9m $25.6m Land $29.0m Land Systems $33.2m $32.3m Systems (15%) (19 %) 12% Elect Elect 3% (23%) (17%) 29% $138.0m $193.6m $55.6m Lower by 29% Lower PBT in all Sectors except for Electronics sector which had comparable PBT Engineering Our Future Engineering Our Future 19 19

Statement of Cash Flows 1Q2011 1Q2010 $ m Cash flow from/(used in) : Operating activities 105 457 Purchase of PPE and short- Purchase of PPE and short- term investments Investing activities (129) (103) term investments Financing activities (4) (52) Net (decrease)/increase in CCE (28) 302 CCE at beginning of the period 1,592 1,514 Exchange difference (4) (9) CCE at end of the period 1,560 1,807 * CCE - Cash & Cash Equivalents Engineering Our Future Engineering Our Future 20 20

Balance Sheet 31 Mar 2011 31 Dec 2010 $ m Property, plant and equipment 1,318 1,302 Associates & jointly controlled entities 281 281 Investments 17 16 Intangible assets 568 580 Investment properties 2 2 Long-term receivables, non-current 36 36 Amount due from related parties, non-current 7 7 Finance lease receivables, non-current 9 7 Derivative financial instruments 1 1 Deferred tax assets 119 119 Non-Current Liabilities Non-Current Liabilities Increased by $110m: 2,358 2,351 Non-current assets Increased by $110m:  Mainly due to refinancing of a long- 5,025 4,917  Mainly due to refinancing of a long- Current assets term bank loan, current term bank loan, current Total assets 7,383 7,268 3,428 3,551 Current liabilities 2,100 1,990 Non-current liabilities Net Current Assets Net Current Assets Total liabilities 5,528 5,541 Increased by $231m: Increased by $231m:  Decrease in bank loans following 1,755 1,622 Share capital and reserves Net Assets: Net Assets:  Decrease in bank loans following refinancing of a long-term bank loan, $1.86b $1.73b 100 105 refinancing of a long-term bank loan, Non-controlling interests current current Total equity and liabilities 7,383 7,268  Decrease in other creditors and  Decrease in other creditors and accruals accruals Net current assets 1,597 1,366 Engineering Our Future Engineering Our Future 21 21

Agenda Financial Highlights   1Q2011 vs 1Q2010  1Q2011 vs 4Q2010 Business Review   Sector Operations  Outlook Engineering Our Future Engineering Our Future 22 22