Nine Months & Third Quarter 2018 Results 14 November 2018
Agenda • Group Highlights • Sector Performance • Outlook • Appendix • Aerospace • Electronics • Land Systems • Marine 2 |
Group Highlights
Group Highlights All figures are denominated in $m unless indicated otherwise 3Q2018 9M2018 Revenue EBIT Revenue EBIT 410.3 1,626 143.6 4,924 +1% y-o-y -1% y-o-y +7% y-o-y +2% y-o-y PBT Net Profit PBT Net Profit 165.8 134.6 460.2 369.8 +2% y-o-y +5% y-o-y +5% y-o-y +11% y-o-y Order book as at 30 September 2018: $13.3b; about $1.6b to be delivered in the remaining months of 2018 4 |
Group Revenue Breakdown 3Q2018 Revenue 3Q2018 Revenue by location of customers S$1.63b Commercial 73% Defence ASIA US 27% 61% 20% Land Electronics Systems 30% 18% EUROPE OTHERS 12% 7% Marine 9% Aerospace 42% Others 1% 5 |
Revenue * * $'m 3Q2018 3Q2017 Change 9M2018 9M2017 Change (Restated) (Restated) Aerospace 689 608 2,000 1,795 +13% +11% # Electronics 491 482 1,608 1,550 +2% +4% Land Systems 297 331 847 906 -10% -6% Marine 137 164 435 506 -16% -14% Others 12 24 34 70 -50% -52% Group 1,626 1,609 4,924 4,827 +1% +2% * Comparative figures were restated on adoption of Singapore Financial Reporting Standards (International) (SFRS(I)) with effect from 1 January 2018. # 9M2017 revenue included a one-time increase from modification of revenue recognition estimates for long-term contracts from milestone completion per customer acceptance to monthly work done. 6 |
Profit before Tax (PBT) $'m 3Q2018 3Q2017 Change 9M2018 9M2017 Change (Restated) (Restated) Aerospace 73.4 66.5 237.4 223.7 +10% +6% Electronics 66.8 54.6 173.2 138.1 +22% +25% Land Systems 18.0 15.1 59.7 60.7 +20% -2% Marine 14.9 21.1 34.3 22.0 -29% +56% Others (7.3) 4.9 (44.4) (5.6) NM NM Group 165.8 162.2 460.2 438.9 +2% +5% 7 |
PBT Margins 14% 12% 12% 13% 11% 11% 11% 11% 11% 9% 9% 9% 10% 10% 8% 7% 7% 6% 5% ^ 4% Group AerospaceElectronics Land Marine Group AerospaceElectronics Land Marine Systems Systems 3Q2017 (Restated) 9M2017 (Restated) 3Q2018 9M2018 ^ Poor performance arising from weak industry conditions and US operations. 8 |
Group Net Profit $'m 3Q2018 3Q2017 Change 9M2018 9M2017 Change (Restated) (Restated) Aerospace 55.4 49.1 181.2 158.2 +13% +15% Electronics 55.5 42.8 142.4 113.8 +30% +25% Land Systems 17.6 12.1 53.6 44.9 +45% +19% Marine 12.8 19.7 30.7 26.4 -35% +16% Others (6.7) 4.1 (38.1) (8.8) NM NM Group 134.6 127.8 369.8 334.5 +5% +11% 9 |
Net Profit Margins 9% 9% 9% 12% 8% 11% 7% 7% 7% ^ 9% 9% 6% 8% 8% 8% 8% ^ 5% 5% 6% 4% Group Aerospace Electronics Land Marine Group AerospaceElectronics Land Marine Systems Systems 9M2017 (Restated) 3Q2017 (Restated) 9M2018 3Q2018 ^ Poor performance arising from weak industry conditions and US operations. 10 |
3Q2018 Sector Performance
Aerospace 3Q2018 vs 3Q2017 (Restated) Higher revenue from ▲ $81m or 13% Revenue $689m all three business groups Higher gross profit Gain on partial divestment of an associate ▲ PBT $73.4m $6.9m or 10% Partially offset by Higher operating expenses Lower profits from associates and joint venture In line with the increase in ▲ $6.3m or 13% Net Profit $55.4m PBT Share of higher profits to NCI 12 |
Electronics 3Q2018 vs 3Q2017 (Restated) Higher revenue from LSG and CSG business groups Revenue $491m ▲ $9m or 2% Partially offset by Lower revenue from SSG business group Higher gross profit in line with ▲ $12.2m or 22% higher revenue PBT $66.8m Lower operating expenses In line with the increase in PBT ▲ $12.7m or 30% Net Profit $55.5m Lower tax expenses 13 |
Land Systems 3Q2018 vs 3Q2017 (Restated) Lower revenue from M&W and ▼ $34m or 10% Revenue $297m S&T business groups Higher gross profit from ▲ $2.9m or 20% PBT $18.0m favourable sales mix ▲ $5.5m or 45% In line with the increase in PBT $17.6m Net Profit Lower tax expenses 14 |
Marine 3Q2018 vs 3Q2017 (Restated) Lower revenue from Shipbuilding and Shiprepair business groups ▼ $27m or 16% Revenue $137m Partially offset by Higher revenue from Engineering business group In line with lower revenue ▼ $6.2m or 29% PBT $14.9m Unfavourable product mix In line with the decrease in PBT ▼ $6.9m or 35% Net Profit $12.8m Higher tax expenses 15 |
Outlook
President & CEO’s Message “ A key highlight of the third quarter was our proposed acquisition of MRAS 1 . This business will scale up our aerospace capabilities by moving us upstream into the OEM business of high-value components. We are excited by the role it will play in the growth of our Aerospace sector, and look forward to closing the transaction in the first quarter of 2019. We continue to be well placed to deliver long-term sustainable growth. Our innovative and differentiated Smart City solutions are gaining traction outside of our traditional markets as more cities embrace technology for development and modernisation. Our robust order book of $13.3b continues to provide a strong revenue pipeline. ” ~ Vincent Chong, President & CEO, ST Engineering 1 ST Engineering entered into a conditional share purchase agreement to acquire a 100% ownership in MRA Systems, LLC (MRAS) from General Electric Company on 13 September 2018. 17 |
Thank You
Appendix
Group Revenue Breakdown 9M2018 Revenue 9M2018 Revenue by location of customers S$4.92b Commercial Defence 69% 31% ASIA US 62% 20% Land Electronics Systems 33% 17% EUROPE OTHERS 11% 7% Marine 9% Aerospace 40% Others 1% 20 |
Group Revenue by geography (by location of customers) $4,924m, 100% $4,827m, 100% $326m, 7% $289m, 6% $546m, 11% $486m, 10% $981m, 20% $1,046m, 22% $1,626m, 100% $1,609m, 100% $110m, 7% $96m, 6% $3,071m, 62% $3,006m, 62% $150m, 9% $199m, 12% $358m, 22% $330m, 20% $1,005m, 63% $987m, 61% 3Q2017 (Restated) 3Q2018 9M2017 (Restated) 9M2018 Asia USA Europe Others 21 |
Balance Sheet $'m 30 Sep 2018 31 Dec 2017 (Restated) 1,612 1,719 Property, Plant & Equipment 1,133 1,087 Intangible Assets 581 942 Other non-current assets 3,957 4,276 Current assets 7,283 8,024 Total assets 3,519 3,587 Current liabilities 1,348 1,941 Non-current liabilities 4,867 5,528 Total liabilities 2,131 2,215 Share capital and reserves 285 281 Non-controlling interests 7,283 8,024 Total equity and liabilities 438 689 Net current assets 22 |
Statement of Cash Flows $'m 3Q2018 3Q2017 9M2018 9M2017 (Restated) (Restated) Net cash from/(used in) 43 112 439 460 Operating activities (30) (62) 186 (174) Investing activities Financing activities (828) (58) (1,277) (373) (815) (8) (652) (87) Net decrease in CCE * 1,166 804 998 904 CCE at beginning of the period - (6) 5 (27) Exchange difference 351 790 351 790 CCE at end of the period - 359 - 359 Add: Funds under management 351 1,149 351 1,149 Total CCE & Funds under management * CCE - Cash & Cash Equivalents 23 |
Aerospace
Aerospace Revenue by geography (by location of customers) $2,005m, 100% $171m, 9% $1,805m, 100% $134m, 7% $414m, 20% $394m, 22% $478m, 24% $424m, 24% $689m, 100% $609m, 100% $60m, 8% $37m, 6% $131m, 19% $130m, 21% $942m, 47% $149m, 22% $853m, 47% $132m, 22% $349m, 51% $310m, 51% 3Q2017 (Restated) 3Q2018 9M2017 (Restated) 9M2018 Asia USA Europe Others 25 |
Aerospace Revenue, PBT and Net Profit by business group 600 AMM 768 CERO 742 467 101.7 99.3 67.1 78.2 204 255 185 35.6 70.1 238 55.4 22.1 27.1 17.3 34.2 27.4 13.7 17.6 25.8 20.0 3Q2017 3Q2018 9M2017 9M2018 3Q2017 3Q2018 9M2017 9M2018 (Restated) (Restated) (Restated) (Restated) 637 EMS 596 Revenue ($m) 88.8 PBT ($m) 68.6 Net Profit ($m) 230 186 60.7 22.1 47.6 17.1 12.0 15.4 Note: Revenue includes 3Q2017 3Q2018 9M2017 9M2018 inter-segment sales (Restated) (Restated) 26 |
Aerospace – 3Q2018 in Review • Secured $590m worth of new contracts, including: • Component Maintenance-By-the- Hour (MBH™) agreement from Japan Airlines • ATR 72 landing gear overhaul agreement from an Asian Airline • Contract extension to maintain the PW4000 thrust reversers and inlets of an European operator’s A300-600 fleet • Heavy maintenance agreements from American freight operators 27 |
Aerospace – 3Q2018 in Review • Capabilities building • Proposed acquisition of 100% ownership in a nacelle manufacturer, MRA Systems, LLC, for aggregate purchase consideration of US$630m, subject to adjustments • MRO for A320’s V2500 and CFM56 -5B engine nacelles • Civil Aviation Administration of China certified for Boeing 767 base maintenance services 28 |
Aerospace – Outlook for FY2018 • Expand airframe MRO capacity in Pensacola, Florida, USA • Develop UAV programme, including the deployment of DroScan in aircraft inspection and commercialisation of DroNet • Accelerate digitisation of global operations • Grow aircraft leasing fleet, focusing on mid- to end- life aircraft 29 |
Electronics
Recommend
More recommend
